Divorce Articles and Q & A's
|
| Q: |
Will I be able to receive
alimony? |
| A: |
The tests for alimony (or maintenance or spousal
support) include some of the following, however, keep in mind that no two cases are the
same. You need to seek individual advice in order to determine how the specifics of your
case may impact your ability to receive alimony: · Need - Can you support yourself with
earned income plus investment income? · Ability to pay - Does the payer of alimony have
sufficient funds to pay? · Length of marriage - A long-term marriage (10 years or more)
is typically a stronger case for the lower-earning spouse. · Health of both parties. |
| Q: |
Will I lose my pension? |
| A: |
Pensions and retirement plans are marital assets.
Depending on the state you live in, the portion which was earned before your marriage
could also be considered a marital asset. However, it is possible to keep your pension and
have it offset with other assets. |
| Q: |
Should the custodial parent
keep the house? |
| A: |
This is a great question, because it's one of the most
important overlooked questions. The answer is sometimes yes, sometimes no. It's important
to pinpoint exactly what it will cost to maintain the home, factoring in taxes and
inflation. The next step is to analyze if there is enough money coming in to stay
comfortable in the home (in other words, pay the bills each month). Once that has been
determined, the advisability of retaining the home must be compared to the advisability of
giving up other assets (such as liquid accounts, retirement plans, etc.). Finally, all
decisions need to be weighed against current economic and stock market conditions.
Certified Divorce Financial Analysts are trained to help people answer this
question before they commit to a settlement that cannot be changed. |
| Q: |
What if I bring a house into
the marriage that is in my name only, and I add my spouse's name to the deed? |
| A: |
In this case, the whole house could be considered
marital property. You might have made a "presumptive gift" to the marriage and
should consult with a family law attorney to discuss your options. |
| Q: |
Is my IRA considered marital
property? It's in my name only. |
| A: |
Everything acquired during the marriage, no matter
whose name it's in, is typically considered marital property. In some states, the increase
in value of separate property could also be considered marital. If you are going through a
divorce, it would important to evaluate the financial drawbacks to having your IRA
included in the list of assets you retain, post divorce. Remember, the funds in the IRA
cannot be accessed before 59 1/2 without paying a 10% penalty for early withdrawal. |
| Q: |
I have never worked.
Can I get Social Security? |
| A: |
If your spouse has worked and if you have been married
for 10 years or more, than you are entitled to one-half of your spouse's Social Security
or your own, whichever is higher--even if you are divorced. Your spouse still retains 100%
of his/her Social Security benefit. This is an automatic guarantee and therefore it is not
a negotiation point in a divorce. |
| Q: |
How do we figure how
much child support should be paid? |
| A: |
Every state has Child Support Guidelines that are
mandated by the State. However, the Guidelines get tricky when one (or both) spouse is an
independent business owner who can control their wages. In this situation, it typically
helps to bring in a financial or tax expert who can help determine the true potential
income of the partie(s). |
| Q: |
Do we have to go to court? |
| A: |
Only if you can't reach an agreement. Then, a court
date is set and a judge hears the case. Less than 2% of all divorce cases go to trial in
the United States. |
| Q: |
What is a QDRO and why do I
need one? |
| A: |
A QDRO (or Qualified Domestic Relations Order) is the
legal document that divides up a qualified pension or retirement account (including
401k's) pursuant to a divorce. The Judgment of Divorce is not sufficient to divide up
qualified plans, a QDRO is needed. There are many nuances that go into QDRO's and make it
an advocating (versus neutral) document. In order to protect your assets, be sure to
obtain qualified advice in this area from a specialist. |
|
|
| | Our
Approach | Our Experience | Financial
Planning | Divorce Planning | Contact Us | Home |
Copyright
©2003-2004: Dagel Financial, Inc. All rights reserved.
All material contained herein is copyright protected and may not be reproduced in any
manner without the express written permission of the copyright owner. Certain text and
Articles The Garrett planning network Inc., Sheryl Garrett, Principal. Other Text and
articles Daniel G. Elie, CFP™.
SameDayWebSite.com built and
maintains this site. |
