Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Tax Changes

This is the fifth installment of Tax Planning for Changing Times: 5 Things You Should Know which can also be downloaded as a free eBook.

There are several other provisions or tax changes that were set to expire on December 31, 2012, that you should be aware of. These changes include the following:

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:

Read the rest of this entry »

#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.

Read the rest of this entry »

#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:

Read the rest of this entry »

debt man

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

A spouse can be held liable in a divorce for the other spouse’s debts — and it doesn’t necessarily matter whose name the debt is in. When it comes to divorce, there are two forms of debt that courts primarily consider: Living expenses & community property.

Living expenses include the cost of things like mortgage or rent, groceries, utilities, your cable or cell phone, and other, similar expenses. Community property is basically, everything else.

Read the rest of this entry »

#6: Valuing Assets in a Divorce

Posted by Mark On July 19th

piggy bank

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

After the discovery phase, the hard work of valuing the assets will begin.

One of the first things to consider is pre-marital assets. If these exist, identify them and move forward. If you are the spouse that didn’t own those asset(s) going into the marriage, you should know that fighting over them is time consuming and expensive. If the item is truly a pre-martial asset, you will most likely lose the fight, and only end up incurring additional legal fees.

Some of the assets that are easy to value include:

Read the rest of this entry »

Who Gets What

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

One of the primary goals of the divorce process is the separation of your “legal agreements” and shared property.

When emotions are involved, it may be difficult to view divorce as a business arrangement. However, that is exactly what it is.

The goal is to make an equitable distribution of marital assets and debts. In order to ensure that this distribution is fair, it is imperative that you understand what is owned and what is owed.

Read the rest of this entry »

divorce petition

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

Filing the Petition

The Petition for Dissolution of Marriage is the first document filed with the clerk of the court in your county, which starts the divorce case. It basically formally asks the court to end your marriage. In the petition, you will have to plead all of the facts required by your state’s law in order to entitle you to the outcome you are seeking.

In most states, you will have to include when and where you were married, how long you have resided in the state, information about your children, and may have to include grounds for which you seek a divorce. (In Florida, you are only required to state that your marriage is “irretrievably broken”, which is considered grounds for divorce.) Residency requirements and grounds for divorce vary from state to state.

The steps you will take in a divorce case depends on whether you are the “petitioner” or the “respondent”.

Read the rest of this entry »

#2. Gather Your Financial Documents

Posted by Mark On May 2nd

Financial Documents

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

You should have your financial documents in order prior to beginning the divorce process. Before you even go into the first appointment with your attorney, you should have a clear understanding of where you and your spouse stand financially. It is best to bring in your accountant or a professional to assist you in this step.

Both parties in a divorce will be required to complete a financial affidavit to determine your income and expenses. If you have your financial documents in order prior to completing this, it will save you a great deal of time and headache.

Here is a list of financial documents you will need to have in order:

Read the rest of this entry »

#1. Hire a Good Attorney

Posted by Mark On April 27th

Lawyer

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

Even if you and your spouse feel that you are basically in agreement about the legalities of your divorce, it is important to have knowledgeable, dependable legal council to guide you through the process.

If you are in the midst of a contested divorce, of course, a knowledgeable attorney is absolutely essential.

Read the rest of this entry »