Should I Keep the House or Not? Financial Advice for Del Mar Residents Going Through Divorce, PART 2

This four-part article series poses a series of questions to help people going through divorce decide whether it is in their best financial interests to keep the house or to sell it and split the money.

Welcome to the second installment of this four-part article series on whether it’s a good or bad idea to keep the house post-divorce. The answer to this exigent question, of course, varies from person to person and depends on a suite of variables. In Part 1, the first important question financial planners in Del Mar tend to urge divorcing Del Mar residents to consider is what their home meant to them and why it is they would want to hold on to it. Could the benefits and advantages of staying there be found elsewhere? Was the decision made emotionally or because the home really is practical and safe, in a good neighborhood, close to good schools? etc.

Image courtesy of Free Digital Photos





Now let’s take a look at the next important question anyone going through a divorce should ask themselves when considering whether or not to keep the home.

“Should I Keep the House?”

Question # 2: How Long Do You Plan on Staying if You Keep Your Home?

Do you plan on living there indefinitely? Do you wish to leave your family home to your children? Or do you just want to stay there until your kids have finished school and have moved out?

Not surprisingly, how long you plan to stay in your home after divorce can really have a big and important impact upon your decision to keep it or not, according to many Del Mar financial advisors. Many people go through the trouble of refinancing the mortgage after a divorce, which is a very costly process, only to end up moving out once they’ve met someone new perhaps a few years down the line. Selling the house is another issue entirely! You’ve got to get it into sellable condition and then pay real estate agent’s commission and taxes, so ask yourself whether this is all worth it given the period of time you wish to stay there.

While it’s not possible to predict with any certainty what may happen in the future, you can at least decide how long it is you’d like to stay in the home and under what circumstances you’d be tempted to sell. Keeping the house for only a few years and then selling it could see you losing money to the afore-mentioned costs. However, keeping the house for a longer time – perhaps 10 years or more - allows the price to appreciate above the costs of upkeep, taxes and resale, which negates any losses you might incur.

If you don’t want to get involved in any of this from the outset, then liquidating your home during in the process of divorce and splitting it down the middle might be the best bet for you and your ex.

Image courtesy of Free Digital Photos

Stay Tuned for Part 3


Stay tuned for the third installment of this four-part article series to read more financial planning advice on whether Del Mar residents going through divorce should hold on to the house or not. In Part 3, we’ll examine advice surrounding the following two questions:

Does it make sense to continue to own the home jointly with your ex?

If you keep the home, what assets will you have to sacrifice?

Should I Keep the House or Not? Financial Advice for Del Mar Residents Going Through Divorce, PART 1

This four-part article series poses a series of questions to help people going through divorce decide whether it is in their best financial interests to keep the house or to sell it and split the money.

Going through divorce can be a terribly difficult and tumultuous experience. Not only are you trying to cope with the emotional ramifications of splitting from your partner, but now you've got to organize the splitting of all your joint assets too! The question many Del Mar residents ask their financial advisors at this time is: "Should I keep the house?"

It can be tempting after all, your entire house is also your home and it can feel like a safe haven from the full-force emotional storm that is causing havoc in every other sphere of your life. Having to pack up the house and go through the long and arduous task of marketing and selling it can seem like too much at this fragile time. Then, of course, there's the fact that property is a major asset and holding on to it after divorce can seem like you're walking away with the better end of the deal.

However, in this time of great change, it is absolutely fundamental that you make all the necessary considerations before deciding whether to hold on to the house or not. Sure, it may be the better decision for you in the long run, but it might also not be, which is why the residents who are going through divorce should consider the following six questions relating to wealth management in Del Mar.

We shall be exploring these questions in this four-part article series.

Should I Keep the House?

Question # 1: What Does Your House Mean To You?

It may be your immediate and strong impulse to want to hold on to your house. It's where you've lived, loved and raised your kids for years and after all the loving attention and investment of time and money you've made, it has become an extension of your very being. But ask yourself whether these are good enough reasons to hold onto the house after divorce. Could staying be holding you back financially and emotionally?

Del Mar financial advisors often recommend to clients that they make a list of all the things they love about their home. Oftentimes, criteria such as its location, its proximity to schools, the neighborhood, etc. come up and in most cases; these criteria can be achieved elsewhere. There are many lovely neighborhoods, many of which are close to good schools. It is possible to find a new house in Del Mar that meets every item on that list you have made about what you love about your home.

You need to separate your emotional attachment to your house from its more practical benefits, because the latter can easily be found elsewhere. And if it does make financial sense for you to move to a new home, you shouldn't allow sentimentality to prevent you from moving forward, financially and emotionally.

Stay Tuned for Part 2

Stay tuned for the second installment of this four-part article series to read more financial advice on whether Del Mar residents going through divorce should hold on to the house or not. In Part 2, we'll examine advice surrounding the following question:

How long do you plan on staying at your home if you do keep it?

Del Mar Financial Advisors Explain The 8 Possible Financial Consequences Of Divorce and How To Avoid Them, PART 4

This four-part article series explains the many financial pitfalls associated with divorce and how women can best avoid them through careful research and the right planning.

Welcome to the final installment of this four-part article series on the possible financial consequences of divorce and what women can do to avoid or at least offset them.

To Briefly Recap:

Thus far, I've covered the following great tips, which I discussed with a reputable Del Mar asset management firm:

#1: You need to start squirreling away funds to sustain you through the expensive aftermath of divorce.

#2: Take the time to complete the things that need to be done before the financial and emotional turmoil hits at full force (put new tires on the car, get the children's teeth done, buy some clothing, etc.).

#3: Accumulate neat copies of all your financial documents and records, from wills, banking details, insurance policies and car registration to property deeds, trusts and tax returns.

#4: Don't overlook any assets. Make a detailed inventory list of all the items owned by you and your husband (of tangible and intangible value) and fight for half.

#5: Always consider the tax consequences of any financial decision you make in your divorce because they could see you walking away with substantially less than you deserve.

#6: Don't make emotional decisions and don't allow your anger, sadness or guilt to get in the way of your negotiations. Be professional and business-like, but keep things amicable. Only lawyers benefit from ugly divorces.

Let's look at those final two consequences and the lessons women should draw from them.

Consequences of Divorce # 7: Not Fighting for what's Rightfully Yours

You've loved him for years and ultimately don't want to hurt him. It's in your nature to be sensitive and supportive of those you care for, so it can be tempting to just walk away from many of the costlier assets you and your husband have accumulated and that he in particular covets. But, this can be a terrible financial decision for you. You are already going through the motions of a divorce... this is not about making friends.

You should be firm about getting what you deserve and what you need in order to move forward, not on the distant eventuality of being friends with your ex. So, for example, even if your husband's car costs more than yours, you should view the two as equal property and split the costs down the middle.

Consequences of Divorce # 8: Ignoring Your Own Career

It's far from uncommon for women to make their careers second or even third priority while married and especially with children in the picture. The shocking realization of this only hits after divorce, and with the added responsibility of supporting yourself without financial support from a spouse.

What You Should Do

"Prepare yourself to prioritize your career!" say Del Mar financial advisors. "Go for some counseling to determine which direction you want to take yourself in, perhaps sign up for a few online courses, update your resume and upload it to the social media sites available for professionals, such as LinkedIn. If you're bored of your current job, check out the job market for new, exciting opportunities or even think about starting your own business."

Divorces may represent the end in many respects, but they are also the chance for a new beginning.

Del Mar LPL Financial Advisors Explain The 8 Possible Financial Consequences Of Divorce And How To Avoid Them, PART 3

This four-part article series explains the many financial pitfalls associated with divorce and how women can best avoid them through careful research and the right planning.

Welcome to the third installment of this four-part article series on the possible financial consequences of divorce and what women can do to avoid or at least offset them.

Divorce has a plethora of financial consequences and most of them are bad, especially for women who are said to suffer a 27% drop in their standard of living, while men experience a 10% increase. The reason?

Many women suspend or don't prioritize their careers so that they may care for the family and the home. And so the household relies predominantly on the income provided by the husband. When disaster happens, the fight for financial survival becomes a terrifying prospect for women, especially if she becomes the primary caretaker of the children.

Thankfully, with the right planning and research – and with the help of a good Del Mar financial planner - the stormy seas of divorce aftermath can be tamed to make for smooth financial sailing, so let's continue looking at more, important advice.

Consequences of Divorce # 5: Ignoring Tax Consequences

Every possible financial decision involved in divorce comes with some kind of tax consequence that can actually see you walking away with substantially less than your spouse! Is walking away with a lump sum better than taking monthly alimony? Which asset would you rather have? Is it better to keep the house and live in it, or sell it and split it 50/50? Who pays for what?

What You Should Do

You and your spouse should sit down with an accountant and make all the necessary calculations, making sure that the tax consequences are taken well into account. You may want to apply for an indemnification clause to protect yourself should the IRS come a-knocking. There's always a risk that a past joint tax return wasn't entirely correct and you don't want to be the one who pays the penalty.

Just remember this: Tax can be exceptionally tricky to work out, so unless you have an accounting diploma behind your name, you may want to get a professional involved in helping you and your ex figure this picture out.

Consequences of Divorce # 6: Confusing Money and Emotion

Under ordinary circumstances, it can be really difficult to prevent your emotions from clouding your judgment. Now try to do the same with all the changes and emotional turmoil associated with divorce!

It can be too easy to allow your emotions to drive or change your financial decisions. It can also be tempting to confuse your lawyer with a friend or therapist. A friend doesn't charge you a few hundred dollars an hour to listen to your woes, so keep your appointments short, yet thorough. Make a list of the points you wish to cover and avoid any emotional triggers that might have you breaking down. This way you'll get the most out of your sessions with your Del Mar asset management firm and lawyer and maximize what you get out of every dollar spent on professional advice.

What You Should Do

• Be businesslike in your financial decisions
• Don't allow feelings of anger or guilt motivate you
• Use your friends, family and therapist for emotional support
• Focus on your long-term wealth and wellness
• Try to keep things as professional and amicable as possible. Only lawyers benefit from nasty divorces

Stay Tuned for Part 4

Not fighting for what's rightfully yours and mixing money and emotions… To read some final possible financial consequences of divorce for women, stay tuned for the fourth installment of this four-part article series.

Solana Beach Financial Advisors: The 8 Possible Financial Consequences Of Divorce and How To Avoid Them, PART 2

This four-part article series explains the many financial pitfalls associated with divorce and how women can best avoid them through careful research and the right planning.

Welcome to the second installment of this four-part article series on the possible consequences of divorce and what women can do to avoid or at least offset them.

In our previous article post, Part 1, we explained the fact that divorce can often see even the more affluent of women becoming financially unsecure, which has a lot to do with the cost of divorce itself as well as simply being ill-prepared! This emphasizes the importance of doing thorough research into the assets both you and your (ex) husband have. This might require some digging and even the use of a forensic accountant, but you and your spouse have been a team until now and as such, everything should be fairly divided.

Let’s take a look at some more advice provided by Solana Beach financial planners:

Consequences of Divorce # 3: Losing or Not Having Your Important Documents

Before you even raise the subject of divorce, or soon after it has been raised (since these conversations are seldom planned and executed smoothly), you should shuffle through all of your household files and accumulate crisp copies of the following financial documents and records:

• Loan applications and documents,
• Tax returns,
• Trusts,
• Insurance policies and comprehensive inventories,
• Wills,
• Financial, brokerage and credit card statements,
• All banking information,
• Property deeds,
• Car registration papers,
• Copies of your spouse’s business assets (if you can get your hands on them),
• Any documents that can prove your ownership of assets and/or material items, gifts and inheritance from family.

Having up-to-date copies of all of the above-mentioned financial and legal documents will not only help your lawyer put together a watertight case far quicker (thus saving you money on legal fees), you will also be spared much hassle and frustration.

“No matter how desperately you might wish to exit a marriage, get your affairs in order first,” suggest Solana Beach financial advisors.

Consequences of Divorce # 4: Missed and Forfeited Assets

In most cases, half of everything you and your spouse have accumulated is yours, so be sure not to ignore, overlook or simply forfeit any assets! You may not want certain things, but their value can be traded for something you do want; half of which may belong to your spouse.

What You Should Do

Make a detailed inventory list of all the items owned by you and your husband, from the luxury yacht to the Jet Ski and bank accounts to safe deposit boxes. Review all of your insurance policies, investments and retirement plans as well as those pay stubs with the help of a Solana Beach financial planner. Even the cost of your spouse’s education, which you may have helped put him through, can possibly be claimed for. Expensive business equipment and hobbies should also be investigated. You may want to hire the services of a forensic accountant. All’s fair in love and war and in order to get what’s owed to you (50%) you need to be smart and you need to be thorough.

Stay Tuned for Part 3

Ignoring tax consequences and mixing money and your emotions… To read some more possible financial consequences of divorce for women, stay tuned for the third installment of this four-part article series.