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.

Investment Advisor News, Del Mar: The 8 Possible Financial Consequences Of Divorce And How To Avoid Them, PART 1

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.

“50% of first, 67% of second and 74% of third marriages end in divorce,” says Jennifer Baker of the Forest Institute of Professional Psychology in Springfield, Missouri.

-    Source: http://www.divorcepad.com/rate/

These may seem like terrible and depressing statistics, but they highlight just how important it is for women to make financial provisions in the event that their marriage too becomes another statistic. So, if you find yourself in a position where you are considering divorce, it is crucial that you begin making plans and doing the necessary research to equip yourself to face the impending and potentially rough financial times.

In this four-part article series, I explore, with the help of some investment advisors in Del Mar, the 8 possible financial consequences of divorce and how you can avoid them with the right planning.

Consequences of Divorce # 1: Empty Pockets

If you lamented the cost of living before, things are about to get a whole lot more expensive!

“You’ll likely find yourself dipping into your savings to foot the cost of your legal bills,” warn Del Mar financial advisors.

Then there’s the cost of moving out, getting a new place, seeing a psychologist and that exorbitant “accidental” retail therapy session at Oscar de la Renta. Divorce is not only a change of marital status; it’s a whole life revolution and money is needed to facilitate this change.

What You Should Do

If you foresee your marriage ending in divorce – whether it’s what you want or don’t want – do NOT sit about moping. You need to start squirreling away funds to sustain you through the expensive aftermath.

Consequences of Divorce # 2: Being Ill Prepared

Ending a relationship with a spouse is one thing: a single conversation that can take place in as little as an hour. It’s what happens afterwards that can take months and even years to sort out. This is why careful planning is so crucially important if it looks as though your marriage is going to end in divorce. Before you drop the figurative guillotine on your husband’s head, do some thorough research. Chat with a lawyer and your Del Mar financial and investment advisor about what you need to do and what you need to make provisions for.

Timing is also important. If your husband is due for a promotion, bonus, inheritance or raise, you may want to wait until he receives it so that you too can benefit. If you’re a few months away from the 10-year mark, patience and social security can reward you with your partner’s earning record. This may sound unscrupulous, but just as he has given up his time and energy earning that income, raise or bonus so too have you.

Whether you spent your time raising your family, tending to the house, in the office or all three, you are a team and all of your assets should be shared accordingly.

What You Should Do

Take the time to complete the things that need to be done before the financial and emotional turmoil hits at full force. While you still have access to joint funds, take the car in for a full service; perhaps get some new tires. Buy the kids the clothes they need and take them to the dentist. Book yourself a few appointments with a therapist, your financial advisor and perhaps a lawyer. This kind of planning can save you a lot of money and a lot of hassle post-divorce.

Stay Tuned for Part 2

Not sorting out your documents and overlooking assets… To read more about the possible financial consequences of divorce for women, stay tuned for the second installment of this four-part article series.

Financial Advisors in Rancho Santa Fe Explain Why the Right Financial Planning Is So Important for Women, PART 3

This three-part article series takes a look at the special financial needs of women and just why it is so important for us to make provision for our family and ourselves through smart planning and investments.

Welcome to the final installment of this three-part article series on women and finances. It has been the aim of this series to explain just why it is so important for women to be especially rigorous about making lifelong financial plans and investments.

In Part 1 and Part 2, I spoke to some financial advisors in Rancho Santa Fe who explained that it’s a consequence of the additional pressures women face as a gender that may require them to be especially careful with regards to financial planning, lest they are left without the security and stability they need to look after their families and themselves. These pressures include:

1.    Women tend to outlive men,

2.    Women tend to earn a lower lifelong income than men,

3.    More and more women are becoming business owners, and

4.    Women are almost always chosen as custodial parents.

So, typically speaking, not only do women need to survive for longer with less money, but also they are almost always responsible for the wellbeing of more than just one person. Let’s take a look at two more important reasons women should be financially careful and crafty and make a solid plan that will see them through.

5.    Women Are Working Professionals

According to San Diego financial advisors, more than half of the working population (57.5%) in professional occupations is female: think lawyers, doctors and real estate agents. These are typically financially empowered roles and with financial power comes much responsibility. It’s one thing to earn a decent amount of money, but if it isn’t managed carefully, you won’t enjoy much financial security should the unforeseen happen, for example: divorce, the death of a spouse or litigation. Asset protection planning can prove especially useful for female professionals, so speak to your financial advisor in Rancho Santa Fe.

6.    Women Have Wealth!

It’s true! Women may earn less than men over a lifetime on average, but three quarters of America’s financial wealth is owned by women, which holds an approximate value of $14 trillion worth of assets. Because of this, is it essential for women to get the right tax planning and investment advice. This wealth needs to be managed carefully throughout your lifetime and it needs to be distributed after you’re gone so that you can ensure the financial security and wellbeing of the family you leave behind.

Women are also compassionate beings. If you’re in a position of wealth, you might want to consider getting involved in some kind of charity by making monthly donations. It’s tax deductible!

In Conclusion

Women are special in an infinite number of ways and it’s because of their unique circumstances – emotional, personal, professional and financial – that it’s so important for them to become educated about finances. Whether you’re a powerful business executive, a respected medical specialist, a waitress or a stay-at-home mom, financial planning stands to benefit you and our children enormously. Consult with an experienced San Diego financial advisor about your estate, investments and finances so that you can plan the most secure, stable and successful future for yourself.

The Importance of Financial Planning For Rancho Santa Fe's Women Residents, PART 2

This three-part article series takes a look at the special financial needs of women and just why it is so important for them to make provision for their family and themselves through smart planning and investments.

Welcome to the second installment of this three-part article series on the importance of women making smart lifelong financial plans, provisions and investments. In our previous article installment - Part 1 - I talked about what some San Diego investment advisors had to say, which was that this can be the case because women tend to outlive men and earn a lower life long income. This means that women typically face the need to survive for longer with less money.

Let's take a look at the next two reasons that Rancho Santa Fe's female residents, from stay-at-home moms to affluent business executives, should be smart about their financial planning, irrespective of relationship status and income bracket.

3. Women Are Also Business Owners

Women are increasingly overstepping all historic convention and becoming entrepreneurs, ruthless executives and incredibly successful business owners, which is fantastic to see. Between the years of 2002 and 2007 alone, the percentage of female business owners in the United States increased by a staggering 20.1%. And so, in addition to the typical responsibilities of many women, which include raising a family, they are also managing and running their own enterprises.

To ensure professional and personal success, the right asset management and planning is essential as this will help to protect the long term financial security and success of their businesses and their families. You absolutely can't do it all on your own and so employing the services of experienced financial planners is really advised for San Diego residents: both men and women.

4. Women Tend To Be Chosen As Custodial Parents

When divorce happens, as it so frequently does, the children go home with the mother 84% of the time. And so, if you are a mother, whether you continue to work or have quit your job to provide your kids with full-time care, you need to have some kind of financial plan in place. A savings account, some carefully managed investments and accumulated assets can provide you with the financial pillow you and your family might need in the event of divorce or some other unforeseen circumstances.

You should also sit down and think about what instructions you would like to leave behind should tragedy befall you or your husband. How would you like your estate managed and divided between your children? If they aren't of age yet, who will look after their inheritance until they are old enough? What can you do to ensure that your children have access to everything they will need to become successful, even if you or their father isn't in the picture anymore?

If you don't know the answers to these questions, it is essential that you start thinking about it and maybe even speak to your investment advisor about it. Accidents are called accidents for a reason.

Stay Tuned for Part 3

To read more reasons why wealth managers and financial planners in Rancho Santa Fe urge women to make smarter financial plans for life, stay tuned for the final installment of this three-part article series.