Looks like you're new — finish the onboarding form to unlock access to Avail!

Lesson 48: Financial Considerations Overlooked in Divorce

Review the items below. What resource might be helpful to you in determining relevance to your situation? 

  1. Alimony income is eligible to fund an IRA or Roth-IRA, if alimony ordered prior to 2019. 
  2. If being utilized, complete a Qualified Domestic Relations Order (QDRO) and signed by Judge by the date of decree 
  3. Gather information about the value of any tax cap on the marital residence for possible division of this amount, if portable, or other financial value recognition in marital settlement 
  4. Gather information about income tax-loss carry forwards for possible financial value recognition in marital settlement 
  5. Calculate cost-basis of taxable assets to be able to calculate taxes on sale for future sale of these assets, e.g., marital residence, other real estate, stocks, bonds, mutual funds, after-tax IRA contributions, Roth IRA contributions (if under 59 ½ and under five years since opening account), etc. 
  6. Consider filing final tax returns for last year married to know what any tax due or refund may be there 
  7. If children have investments in their own name, consider which parent will pay the “Kiddie Tax” or which parent will file the child’s tax return, if required. 
  8. Decide in advance which parent will claim children as dependents and for which years 
  9. If substantial, gather information about frequent flyer miles for possible asset division 
  10. If substantial, gather information about frequent flyer miles for possible asset division, HOA assessments, Bitcoin (crypto currency), PayPal and Venmo and Square Cash accounts 
  11. Check contents of safe deposit box 
  12. Check credit reports and score 
  13. Consider closing unused joint credit card accounts 
  14. Consider paying off existing joint credit card accounts and closing those accounts 
  15. Before the divorce is final, consider opening a credit card account in one’s own name 
  16. Before the divorce is final, consider opening a checking account in one’s own name 
  17. Consider finalizing divorce until after 10 years of marriage to secure spousal Social Security benefits and preserving marriage license and divorce degree papers to prove the 10 years at retirement 
  18. Consider cost of your own health insurance if leaving spouses group coverage 
  19. Consider which parent will cover costs of healthcare for children 
  20. Consider life insurance to secure alimony and/or child support 
  21. Effectuate the terms of the agreement within one year of divorce decree, IRS 1yr and 6yr rule 
  22. Review the language of your Divorce Settlement Agreement 

©Certified Divorce Coach Program-Divorce Coaching Inc.

[ratemypost]

Responses