I be able to keep my home?
There are many factors which go into the decision to keep the
family home: the ability to pay the mortgage, property taxes,
and insurance; whether the children will be comfortable in another
home and a potentially different school district; whether there
are offsetting assets for the out spouse; the potential loss of
the out spouse's $250,000 capital gain exclusion when the home
is eventually sold; and the ability of the spouse who retains
the home to refinance the mortgage, if necessary. The family's
entire financial picture needs to be analyzed to see if it is
in anyone's best financial interest to retain the family home.
I have to give up half of my 401(k)? While there is
not a tax consequence to dividing retirement assets incident to
a divorce, when your retirement assets are withdrawn they are
taxed as ordinary income. Care needs to be taken to ensure that
the basis of all assets is determined before there is discussion
around which assets either party is to keep. $100,000 worth of
retirement assets is not the same as $100,000 worth of cash. In
addition, there is the issue of whether the employer's plan even
allows a division. There have been instances where an agreement
has been made to divide a plan when the plan does not allow it.
This can be a costly mistake. Another asset should be found before
the marital agreement is signed to offset the half of the marital
portion of the plan that would go to the non-owning spouse.
will we divide the assets and debts?
A thorough examination of all the finances needs to be made and
put into one readable report. The original basis/cost of all the
assets should be determined. My reports will show the real value
of each asset. Again, a dollar may not equal a dollar. Debts need
to be reviewed for interest rates, minimum payments, length of
years to pay off, and the ability to pay off immediately. With
all this knowledge you will be able to negotiate an equitable
spouse has stock options, restricted stock benefits, and other
employee plans. How will I understand these complicated values
and how they can be divided?
My analysis will give a complete breakdown of their values, how
they can be divided according to the employee plan documents,
and potential offsetting assets. We will discuss the pros and
cons, tax consequences, and current availability of these assets
here to contact me
information you obtain at this website is not, nor is it intended
to be, financial or legal advice. Jude Sterling recommends you
consult with a financial or legal expert for individual advice
regarding your own situation.