Neutral Divorce Financial Consulting to Both Parties
Hiring one financial expert instead of two is a good way to save money during divorce and ensure both parties are educated and informed about options to fairly divide assets and debts as well as minimize hassles and confusion. Whether you work with a mediator or each party is represented by an attorney, a CDFA acting in the role of a neutral can provide valuable services that can reduce the time and cost of divorce.
How a Neutral CDFA Can Help
Dividing Assets Fairly
While the goal may be to divide community property 50/50, not every asset and debt must be divided in half. If one party wants to keep the house or a pension, the other party likely will receive fewer of the remaining assets. I can estimate the pre-tax and after-tax values so each party understands the true value of an asset as one dollar in home equity is often more valuable than one dollar in a retirement account.
RSUs and Stock Options
I calculate the community property portion of both vested and unvested equity compensation such as restricted stock units (RSUs), performance stock units (PSUs), non-qualified stock options (NQSOs) and incentive stock options (ISOs). I also explain how equity compensation may be included in child and spousal support calculations. View the flyer to learn what's included.
Preventing Mistakes
I help you avoid costly mistakes when dividing retirement accounts such as pensions, 401(k)s and IRAs. One party may want to keep the house and buy out the other party's interest. But is that even possible? Are there enough assets in the marital estate to trade? Will one spouse earn enough employment income or receive enough child or support support to qualify to refinance the mortgage? Together we will brainstorm what is possible.
Preparing Accurate Financial Disclosures
Preparing your Schedule of Assets and Debts (FL-142) and Income and Expense Declaration (FL-150) is not an easy task. You cannot afford to make any mistakes on these forms as it could come back to haunt you. Click to play the video to learn how my low-cost online course will teach you how to prepare them accurately. Click here to sign up for the course.
