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Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Archive for the ‘Divorce Financial Planning’ Category

Thinking about getting a divorce?

Interested in making the proper preparations to protect yourself financially?

Do you want what is in the best interest financially for your family too?

divorce petition
You know divorce is a life-changing event, and you have heard It affects over 50% of couples in the U.S. But understanding all the aspects of a divorce is more overwhelming than you thought.

Without the proper planning, it can be devastating emotionally, mentally, and especially financially. With proper planning, it is possible to move forward and get through it.

If you are working towards a non-contested, respectful and collaborative divorce and need guidance to make that happen, consider these tips from experiences I have had. However, if you are working with a contested divorce, brace yourself, there is no way to “plan” for that.

Although, having everything in order is the first step either way.

Consider reviewing the following checklist as a helpful guideline.
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Are you considering a divorce?

Do you have children? Are you seeking child support?

Will you also be asking for alimony?

Alimony and Child Support

Learn More About Divorces From a Financial Perspective

Thinking about the financial perspective of a divorce can be unsettling. Knowing the changes it can bring can make you feel uncomfortable.

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Did you know that divorce affects over 50% of couples in the United States?

Considering Divorce

Going through a divorce is a life changing. Even when the divorce is non-contested and a collaborative divorce, you need to make sure you’ve made all the proper preparations. It is the best way to protect yourself and your family.

Are you considering divorce? Are you ready to start the process? The financial aspects of divorce can create a tough road ahead. Understanding the process is a must. Working with my clients through the divorce process has allowed me to put together some tips that may help you.

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Divorce is a life changing event that can be financially devastating!

Planning for Divorce

Did you know that over 50% of couples living in the United States are affected by a divorce? Planning for divorce can help make the process go smoother. It allows you…

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13: Advice When Going Through a Divorce

Posted by Mark On May 15th

The most important part and most difficult part of going through a divorce is trying to keep the emotion and anger out of the process.

Going Through a Divorce

You are both going to lose. The only party that wins in a nasty divorce is the attorneys. The more anger and emotion are involved, the higher the cost goes. I have been involved in cases with average, everyday people with gross incomes of less than $100,000, who end up spending $60,000 to $80,000 in professional fees. Where does that money come from? Both parties usually incur debt, or it is taken from money saved for the children. Read the rest of this entry »

Tax Carry-forwards

This is the twelfth installment of “Divorce. What You Need to Think About from a Financial Perspective“, which can be downloaded for FREE from makara-assoc.com.

Tax carry-forwards are another area to consider before or after the marital settlement is finalized. Depending on the size of these carry-forward(s) and the relationship with your ex-spouse, it may make sense to complete this negotiation prior to signing the martial settlement.

Some of the carry-forwards are governed by IRC regulations. These include:

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Alimony and Child Support

This is the eleventh installment of “Divorce. What You Need to Think About from a Financial Perspective“, which can be downloaded for FREE from makara-assoc.com.

Alimony versus child support. In terms of cash flow and taxes, these two terms alimony and child support can’t be any more different.

Child support is paid until the child reaches emancipation. Emancipation is defined in most cases as the age of 18 or graduation from high school, before the age of 19. This support is based on each party’s income and can be contested every 3 years in most states.

The amount of child support is determined by a standard calculation that factors in the following variables:

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Real Estate & Divorce – Your Rights in the State of Florida

This is the tenth installment of “Divorce. What You Need to Think About from a Financial Perspective” which can be downloaded from our FREE eBook library.

The Marital Home

In Florida, “the marital home” is defined as the piece of real property where you and your spouse have spent the majority of your marital lives together. This property is considered a joint asset, and is subject to division according to the Florida statutes. Of course, the court makes the ultimate decision as to who gets the property. A number of factors are taken into consideration, such as:

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#9: Tax Preparation Timing During and After Divorce

Posted by Mark On September 20th

Timing Divorce

This is the ninth installment of “Divorce. What You Need to Think About from a Financial Perspective”which can be downloaded for FREE from makara-assoc.com.

When preparing for tax filing during or after a divorce, the two dates I consider to be the most important are the date divorce petition was filed and December 31 of each year.

Pending divorces can often go on for more than one filing year.

Filing Date

In most states the filing date, by either party, is when you become financially separated. However, this is not true for every asset. Retirement plans are usually marked by the date of distribution and appreciating or depreciation assets (i.e. principle residence). This can be valued once an agreement is reached.

December 31st

December 31st is the last day of the tax year. It is the determining factor in a couple’s filing status. If you are legally married on December 31, you have two options when it comes to filing tax returns.

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#8: Divorce and Tax Preparation

Posted by Mark On August 29th

Financial Documents

This is the eighth installment of “Divorce. What You Need to Think About from a Financial Perspective”which can be downloaded for FREE from makara-assoc.com.

Many issues arise when it comes to going through the divorce process. One of the most difficult financial issues in the initial stages is the impact your divorce will have on capital gains and income taxes.

When filing taxes, you must consider issues such as:

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