Divorce Financial Strategies
For Clients
Separating or divorcing is never easy but it can be financially fair. Individuals are often faced with making decisions regarding their financial future during periods of extreme emotional turmoil and without the benefit of the professional financial guidance. Carol Arnott is a financial analyst certified in divorce planning. She will examine the financial issues of your divorce and provide you and your attorney with powerful data to obtain an equitable settlement. By working with a specially trained professional you can take control of your divorce process and increase your chances of arriving at a settlement that fully addresses your financial needs.
Additionally, Carol works with clients post divorce settlement to re-title and transfer assets to plan for their financial independence. Carol helps clients through the maze of financial decisions so they have a clear picture of both their current and financial future.
She offers a complimentary one hour consultation at no charge. Contact her to schedule your appointment today.
All Divorce Financial Strategies clients receive:
- A complete review of all financial assets and liabilities
- An evaluation of prior year tax returns to potentially uncover any dissipation of marital funds
- An in-depth Income and Expense review to create a workable budget
- A Cash Flow Analysis to project net after-tax net cash flow post divorce settlement
- Recommendations for tax efficient strategies to access retirement plan assets
- Administration and oversight of asset transfers and beneficiary updates post settlement
Simple Fee Schedule $1,250
Integrated Financial Planning includes all of the above as well as:
- Detailed recommendations to accomplish specific financial goals such as education funding and retirement planning
- A comprehensive review to identify gaps and prepare for your future
- A written report and specific step by step action plan
- Aggregation of financial statements to provide a consolidated view of your financial world
- Regular financial checkups to monitor the plan
Comprehensive Fee Schedule $1,750
Realizing your financial dreams takes a plan.
A trusted advisor may help.
Click here to read Carol's brochure
Contact Carol Arnott:
Phone – 302.658.9260
Articles - by Carol Arnott:
Helpful Links and Websites:
Website links are provided strictly as a courtesy. When you link to any of these web-sites provided herewith, FIrst Allied Securities Incorporated makes no representation as to the completeness or accuracy of information provided at these sites and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned therein.
For Divorce Professionals
Working together with a financial professionsl allows the attorney to spend time on clients’ legal issues instead of financial issues and gives clients confidence that a financial specialist is involved in planning their financial future. By building a team of specialists trained in legal issues, tax planning, financial planning and, at times, a mental health specialist the client can be assured that all their needs are being addressed.
An assessment done by a financial professional specifically trained in divorce financial strategies may avoid potential liability for dispensing advice for which one is not licensed or trained.
Most Frequently Asked Questions
Regarding Divorce Settlements
the permission of the Institute for Divorce Financial Analysts.
Answer: 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.
Answer: 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.
Question: Should the custodial parent keep the house?
Answer: 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.
Question: 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?
Answer: 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.
Answer: 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.
Answer: If your spouse has worked and if you have been married for 10 years or more, then 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.
Answer: 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).
Answer: 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.
Answer: 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.
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