Look up from your phone…. I’m right over here!
Don’t worry. This is not another article about cell phone dependence. It’s about this author and my observations and decision-making process.
This New Year’s eve I found […]
Sometimes “even” isn’t really fair. I have a lovely client who came to me when her husband left the family home. After much delay, he finally served her with his self-prepared divorce documents. In […]
Miller sought the advice of Vickie Adams before he filed for divorce. “A spouse may be entitled to reimbursement during divorce for payment of separate debt, so keep records. When you marry someone, you marry their credit score, too.”
“There are no ‘do-overs’ after you agree to a settlement,” says Vickie Adams, a certified financial planner and certified divorce finance analyst. After 50, you’ll have fewer years to recoup from financial errors, so it’s essential to get this right.”
Adams says: “Employees who tapped into their retirement funds are frequently surprised that they owe both federal and state taxes. If you must take money out of your 401(k) or an IRA, set enough aside to pay for the huge penalties incurred when you withdraw under the retirement age.”
Vickie Adams recommends that spouses run regular credit checks during a separation. “You are still [financially] tied to the other person, so I’d want to invest in a credit-reporting service to be sure the other person pays the bills they have agreed to pay and you do not incur joint debt.”
Adams says: “Divorce is not fair. Illustrate all settlement scenarios possible including property equity, tax implications, and market conditions for possible sale. But once you are armed with all the financial facts, decide what is most important to you and be willing to let the rest go.”
A conversation framed around division of assets can put the lesser-earning spouse on the defensive. Adams suggests “Ideally the prenup process is about improving communication and exploring values… a collaborative process that gives both parties a chance to feel heard.”