SECOND SATURDAY PRESENTATION OUTLINES FINANCIAL ISSUES 1. Getting started Preparing for divorce – gather documents, pay down debt, make repairs to property you want to keep, buy wardrobe you’ll need for your career, inventory safe deposit boxes, copy important records Shoring up financial resources – how to get the funds you’ll need to go through divorce, getting control of your share of joint bank accounts, getting credit cards in your own name 2. Navigating the divorce Separating emotions and economics – money as power, revenge, reward, punishment Taking an active role – learn as much as you can about your financial situation Take control - don’t spend money looking for every dime, but don’t just take whatever is offered – there is a middle ground you can find 3. Determining support Support is based on your relative incomes – how to determine income from a business, how a spouse’s ability to earn factors into the equations Child support isn’t taxable if you receive it, alimony is; child support isn’t taxdeductible if you pay it, alimony is Who should claim the children on their tax return? Protecting support with life insurance in case he dies 3. Dealing with the family home Transfer of title between you isn’t taxable, but the tax basis (what you paid for it plus improvements) may cause you to pay taxes when you sell it if gain is greater than $250,000 Deferred sale of home – each spouse can claim $250,000 exclusion of gain on sale of home if the resident spouse is granted exclusive use in a legal document. Can you really afford to keep the home? What must you sacrifice, such as savings, retirement accounts, and is it worth it? Second Saturday workshops are presented by agreement with the Women’s Institute for Financial Education (WIFE.org), the oldest and most trusted non-profit devoted to female financial literacy. 4. Retirement plans How Social Security works for divorced spouses Military benefits – how they are divided, when you can get direct payment, medical and commissary privileges, Survivor Benefit Program insurance How retirement plans are divided, and when a Qualified Domestic Relations Order is needed How to transfer your share of retirement accounts to your name 5. Other assets and debts Property you receive in divorce isn’t taxable to you, including cash payments in exchange for your right in real estate or business Valuing a business, and getting your share of income from a business Dividing your stuff – furniture, jewelry (when it’s a gift and when it’s marital property), vehicles, collections Miscellaneous property – frequent flyer points, accrued vacation and sick pay Separate property issues Reimbursement issues How to deal with joint credit cards Put an indemnification clause in your divorce agreement to deal with income tax issues that may arise related to the period of the marriage Health insurance issues – COBRA coverage, your own coverage, coverage for the children 6. Deciding what is best for you The pros and cons of trading retirement plan assets for the home Creating a budget – your former lifestyle vs. your current reality – what can you afford now, what will you give up? Considering your future needs as well as your current needs as you negotiate a settlement Career issues – who will you be now, and what do you want for your future? 7. Moving on after divorce Getting your financial life in order once the divorce papers are signed and filed Creating new goals and objectives Estate planning - The importance of getting good professional advice Second Saturday workshops are presented by agreement with the Women’s Institute for Financial Education (WIFE.org), the oldest and most trusted non-profit devoted to female financial literacy.