Written by Nancy Hetrick of Smarter Divorce Solutions
With the increasing popularity of Pinterest, the concept of “do-it-yourself” or “DIY” projects have become enticing for many. I don’t consider myself to be the least bit crafty but have taken on daunting projects like painting kitchen cabinets (I swear, never again) all in the interest of saying, “Wow – look what I did! And I saved a lot of money!”
In some cases, however, DIY is necessary and the only option. Consider for example couples who are going through a divorce and simply don’t have the financial means to get professional assistance. They are reliant upon DIY divorce documents and are faced with navigating complicated legal issues reduced to fill-in-the-blank forms. It’s a means to an end, albeit less than ideal.
Then there are others who pursue DIY divorce documents simply as a way of saving money ...
Let's start with the basics. There are so many different types of retirement accounts out there - IRAs, ROTH IRAs, and 401(K)s just to name a few. While those are probably the most common, there are numerous others. For someone who is not dealing with them every day, it can be confusing. More importantly, not all retirement assets are the same nor should they be treated as if they are. Thus, we are dedicating this blog post to one of the less commonly known retirement plans. That is the Thrift Savings Plan, also known as a TSP for short.
What is a Thrift Savings Plan? If you have been working for the Federal government or the military for much of your career, you may already be very familiar. However, those in the private sector may not be. The Thrift Savings Plan (TSP) is a retirement plan. It is available to civilian Federal employees and members of the uniformed services. If you are familiar with a 401(K) in the private sector or a Deferred Compensation account for state...
Valuing and dividing retirement accounts is more complex than most divorcing couples expect. Below are five common questions we receive regarding divorce and retirement accounts.
Imagine that only one spouse worked for most of the marriage while the other cared for the kids. If that's the case, most of the retirement assets are likely only in one spouse's name. It is common for clients who own retirement accounts to believe that they are entitled to the entire account since it's in their name. However, money earned during the marriage is a marital asset and subject to division in a divorce.
In contrast, retirement assets earned prior to the marriage are typically considered separate assets and not subject to division in the divorce. In addition, the growth on those separate assets during the marriage is considered separate property. For an accurate appraisal of what portion of a retirement account is...
While often considered the kinder approach to divorce compared to traditional litigation, the benefits of mediation go far beyond those simply looking for a "nicer" approach. The best kept secret of mediation is that it is actually the couples with more conflict who can see the greatest benefit from mediation.
Those who are experiencing higher degrees of conflict will see the highest litigation-related expenses. The litigation process itself often heightens conflict. You do not have to be on the same page with respect to your settlement in order to try mediation. In fact, mediation is designed specifically to help you get on the same page. You do, however, have to share a commitment to the process.
Here is a checklist to help you determine if mediation would be an appropriate process for settling the terms of your divorce. You and your spouse do not have to agree to everything on the list but if there are several items on the list that do not...
I find it important to develop a solid network of professionals who can support my divorcing clients. There are such a wide variety of issues that arise during the course of a divorce. One that frequently arises is refinancing the primary residence to remove one parties' name from the loan. I recently sat down with Amy Terrell, a Senior Loan Officer and Certified Divorce Lending Specialist with US Lending Corp. During our conversation, I realized there are some important issues that I wanted to make sure people are aware of when it comes to divorce and your mortgage. She was nice enough complete a brief interview over email to share the information.
Some of the biggest mistakes people make are:
When I meet with someone for the first time regarding their divorce, I hear the same questions over and over - concerns that are keeping people up at night and adding to the stress of the divorce. They are questions such as, "Can I afford to keep the house?" and "How will I get health insurance?"
These are all common fears in divorce mediation in Ohio, and they all revolve around money. When it comes to negotiating the divorce settlement, one of the stickiest issues addressed is spousal support. (Spousal support is also known as alimony or spousal maintenance in some areas.)
Related post: How much spousal support will I get?
There is no spousal support calculator in Ohio. Thus, if awarded, the amount and/or the duration can all be somewhat subjective. That said, there are several considerations detailed in Ohio law. You can read about them here.
Sometimes clients ask me what other people do when it comes to spousal support in Ohio. There truly is no one way to...
I strongly believe in the benefits of choosing mediation for your divorce but it's also important to understand the challenges and prepare for those. The decisions made in mediation can significantly impact your life for years to come. With that in mind, it can be easy to become overwhelmed during the session if you are not adequately prepared. Likewise, you can make agreements that may not be in your best interest if you are simply tired and worn out from the mediation. These simple mediation strategies can help you get what you want from your divorce settlement.
Spend some quiet time thinking about what you want and what you need. Write your thoughts down on paper and read it aloud. This process helps you organize your thoughts, identify your priorities and set realistic expectations. Take this paper with you to mediation. If you are...
Dealing with a divorce is difficult no matter the time of year but dealing with divorce over the holidays compounds the stress. It means more time with family who may or may not be on board with this significant change in your life. It means hearing opinions that you did not ask for even though they may mean well. It could also mean missing out on some traditions you love.
From someone who has been there, all I can say is that is does get easier. The first holiday season either during and/or just following your separation/divorce is by far the hardest.
Related post: Your First Christmas After Divorce
Recognize that it's a difficult time of year and take extra good care of yourself. Eat well, get exercise, and make sure you are getting adequate sleep. All of these things will put you in a better position to deal with the stress.
The anger in the room was palpable. I was sitting at a round table with a husband and wife who had chosen to use mediation as a way to come to terms on their divorce agreement. According to the wife, the husband had been unfaithful several times throughout their marriage. According to the husband, the two had not been intimate for many years. Regardless of why the couple was now facing the end of their marriage, in order for negotiations in mediation to be productive, we needed to find ways to bridge the divide between them. It's not uncommon for years of disappointment and frustration to come to a head when couples are going through a divorce. Often, it's the reason that individuals think that they cannot mediate their divorce settlement.
A couple of weeks ago, I was fortunate enough to attend a continuing education program on this very topic. Dr. Daniel Shapiro of the Harvard International Negotiation Program presented...
Divorce can be one of the most stressful changes in your life. It’s common for just one party in a marriage to be responsible for all the finances. Even if both parties are aware of the day-to-day finances, it’s even more common for only one party to handle all the investments.
The combination of learning about your investments for the first time and watching the value of those investments decline in a volatile stock market can be overwhelming. How does a declining stock market impact your divorce settlement agreement? And as you look beyond the divorce, what do those declines mean for your longer-term financial future?
If you have not been involved with your investments or even if you could use a refresher, I encourage you to start by sitting down with a Certified Divorce Financial Analyst (CDFA) to review each of your assets. When you do this review, I want you to understand the following about each asset:
(1) What type of asset is it?
(2) How is the...