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.

#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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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.

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#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:

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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.

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