17 Apr How working with CDFA makes a difference in Divorce

I believe one of the most important roles I have, as a Certified Divorce Financial Analyst (CDFA)  is  providing a reality check for my clients before , during and after divorce. I am pragmatic and not judgmental. I take the words in settlement agreements and turn them into numbers.  .

Firstly,  I do this  by having a systematic approach  for  pulling together the financial numbers  and information that  they need to start separation discussions whether the are working in mediation, collaboration or traditional negotiations.

Secondly,  I’m focused on finding solutions that work in both the short and long term.  I create projections based on clients goals and possible settlement options , whether that be proceeds from sale of their house , impact of  varies duration and levels of support, impact of future income and savings. These projections  educate and show clients  the  future implications of  what is being proposed. They also show the  the impact of  other decisions clients  have control .

I had a client who was the main breadwinner of the family. She went back to school to upgrade her skills when her husband was downsized from  his corporate job. She found a very well paying position and  has had a number of promotions since starting at  her company. Her husband  found it difficult to get back into the workforce in his previous role. Discouraged, he  started a small consulting practice  but wasn’t having much success in getting clients.  When they decided to separate, her income was substantially more than his. She was very resentful of having to make Spousal Support payments to her husband.  This looked like it was going to stall the settlement negotiations.  I worked with her to understand her current & future spending, her future income   and have her see the impact of various levels of support. I helped her set priorities going forward.  Once  she could see into her financial future,  she agreed to a spousal support payment schedule she  and her spouse could live with  as she now  felt confident about her own financial future.

11 Dec Dividing Property in Divorce

ID-10071842Deciding how to split assets is more than just dividing the values on paper.  People often make the mistake of believing that dividing everything in half is the simplest and fairest way of handling things.  This is not necessarily true.  People need to pay attention to the decisions they make about dividing property and consider the long term consequences.

Assets differ in a number of ways.  Some are liquid like cash.  Some assets like RRSP accounts are tax deferred.  Some assets need to be valued in a specific manner according to family law rules and regulations.  Investments may have a different value after taking into account possible capital gains taxes.

Sometimes assets have an emotional connection that may have more worth than the actual dollar value such as a house, business, or family heirloom.

Assets may have costs to consider.  A couple may have a $400,000 investment  account and a house worth $400,000 (mortgage free).  The assumption is that if one spouse takes the house and the other takes the cash, this results in an equal division.  Keeping the house has costs such as property taxes and upkeep and maintenance. The investment account will be growing over time earning interest. It may not seem quite the equal split over a period of time.

Debts are also part of the division of marital property.  Allocating debts in divorce may mean paying them off, refinancing, or applying for new debt.  Different types of debt carry different fees, charge, penalties and terms.   Just because you have $10,000 left on your car loan and $10,000 credit card debt doesn’t mean that the car loan should go to one spouse while the credit card debt goes to the other.

Divorce settlements are often agreed upon with limited insight into the long-term consequences.  As a result, settlements that seem to be fair and workable initially do not necessarily stand the test of time.  Therefore, it is highly recommended that a divorce financial planner be brought into the process so that you can see how decisions you make today will affect the rest of your life.

Image courtesy of renjith krishnan at FreeDigitalPhotos.net

03 Oct Next Divorce Talks Topic – “Tips for Gathering Financial Information in Divorce”

It looks like you’re separating. One of the first steps you’ll be required to do is pull together your financial information … assets, debts, income, expenses.

Where to start? What is required? Where will it be used?

Join us for an information session that will have you learn:

What specific information you need t

o gather
Why this information is required and where it fits
Practical tools for making the information gathering easier
If you or someone you know is contemplating divorce, join us for a discussion about how to best deal with financial information in separation and divorce.

DATE: Wed. November 14th,  2012
TIME: 6:00 to 7:30 PM
LOCATION: 79 Shuter St. Suite 200 Toronto

http://www.eventbrite.com/event/4029811274

04 Jul Boomer Divorce — Divorce Talks July 17th 2012

 

At 50 or 60, the kids may have left and  couples realize they have 30 or more years left to fully engage with, and enjoy life. If they can’t find a way to do it together, they are considering  taking the risk  of leaving the marriage.  If you or someone you know is part of this growing segment  of the “grey divorce” demographic, join us for this session.

Here are some of the  questions  we’ll be discussing :

  •     What are the factors and pressures that are changing the futures of so many?
  •     Do you worry about how dividing your wealth will affect your retirement?
  •     Do you struggle with the question will leaving be worth it?
  •     How can you access what is right for you in a professional confidential manner?
  •     Where do you go to weigh your options and decide?
  •     And should you decide to leave, how do you do it in a cost conscious way?

DATE: Tuesday July 17th, 2012

TIME: 6:30 to 8:00 PM

LOCATION: 79 Shuter St. Suite 200 Toronto

To Register go to: http://www.eventbrite.com/event/3795921704

 

01 Jun Financial Homework in Grey Divorce

When you’re considering divorce in your 50’s,    a big concern is the financial impact for you and your spouse at this stage of your lives.  If you delayed having children, they may be young and child support payments may derail retirement plans/savings. You may still be faced with funding post secondary education. You may be supporting aging parents. One spouse may already be retired.

Part of divorce is dissolving your family’s joint financial relationship. This can’t be done unless you know the total financial picture. All the facts need to be on the table so you can determine how best to separate your finances allowing both of you to make the best choices of how you will move forward on your own.

This means doing some homework in advance.  As a start, you need to find and prepare the following documents:

  • Tax returns from most recent tax years
  • Recent paystubs that show payroll deductions
  • List of personal property  such as cars, boats, valuable art, jewellery, antiques
  • Recent statement from Assets:
    • Bank accounts
    • Investment accounts including open, RRSP, RRIF accounts
    • Education savings Accounts
    • Other assets such as Stock options, other Company awards
    • Company Pension
  • Recent statements of Debts: Mortgage, Line of Credit both personal and joint, Car loans
  • Miscellaneous Info: Life insurance, Medical benefit plans
  • Business Ownership details

Doing your homework takes time.  Documents may be hard to locate. You may have to request copies from the bank or your employer. You may not have looked at some of these documents for a very long time.

You can hire a divorce financial professional to “tutor” you with your homework. They can help explain and organize it all so everyone is ready to start.

10 Apr Grey Divorce

In 2009, people ages 50 and older were twice as likely to divorce as their counterparts in 1990. Researchers have just begun to explore why. They know that, for many boomer couples, the kids are out of the house and it’s time to face reality. Who gets to keep what is  even more stressful at this age when  you have to consider the financial impact  this will have on the rest  of your life.

If you or someone you know is facing divorce in their 50’s, this is a  reminder that we are hosting “Late in Life” Divorce Talks on Thurs Apr 12th. Join us to hear about the what the financial  effects might be depending on whether you’re the dumper or the dumpee.

To register click here  http://www.eventbrite.com/event/2544127554

26 Jan Are you Financially Prepared for Divorce?

“Why didn’t I pay more attention to our family finances?”

I frequently hear this from women who find themselves facing divorce.  This is the time for women to start to make constructive and knowledgeable decisions about their money and their future. It’s never too late to get started.

Here are some steps you can take to get financial prepared for your divorce. (Frankly it’s good advice even if you aren’t facing divorce)

Pay Attention to the Household Finances
You should attend meetings with insurance agents, accountants, financial planners and lawyers. You should also look over monthly bank statements and credit-card bills. Ask about your husband’s company benefits including bonuses, other “perks”,  company pensions, and other savings  plans, etc. Keep a list of all bank and brokerage accounts and insurance policies.

Don’t lose your Financial Identity
You always want to maintain your own credit identity. Check if your credit cards are in your own name or if you are simply an authorized user as a lack of credit history can work against you.  You should have three bank accounts (his, hers and ours) and maintain separate credit cards.

Keep Your Skills Fresh
While you might welcome the chance to stay home with your kids, the longer you’re out of the work force, the harder it can be to jump back in. Women often face lowball wages or lower job titles when they try to return to work after a long hiatus.

Save for Retirement
Many married women don’t make retirement-saving a priority. If the husband is the primary wage earner, the wife often trusts her spouse to save enough for their collective golden years. A woman spending her retirement savings, (sometime all on legal fees),   is particularly distressing considering that women, on average, live six years longer than men.

Get Financial Guidance
When women are going through a divorce, they need to determine which assets will help them pay their bills and reach their long-term goals. Too many women fight for the home to avoid uprooting their children, only to find that they don’t have the cash flow to pay for it.

Divorce is not only the end of a marriage but it is the breakup of an economic unit. Financial awareness will go a long way to help you feel more in control and better equipped to make reasoned decisions.

24 Aug Silence is Golden…or worth $750M?

This morning as you slipped your coffee and glanced at the headlines in print or on the television… It would be impossible for you NOT to be aware of the Tiger Woods’ divorce drama.

The name Elin will forever become synonymous with $750M (the proof… just Google $750M). Settlement terms of the split have not been revealed and will likely remain under wraps as Elin likely traded her silence for cash. Many reports indicated that Woods forked over $750 million, all just speculation.

“Elin Nordegren ended up with double the sum she originally sought, after her lawyers proved Woods was worth much more than the $1billion she thought… her legal team did a great job digging up all sorts of assets”

Despite everything, Elin and Tiger have reached an amicable settlement avoiding court.

10 Aug Launch of Eva’s RoundTable

Looking for investment advice for your equalization payment… Selling the marital home and looking to downsize… not sure if the kids emerged unscarred post-divorce.
During and after divorce, women need trusted resources to advise on their specific situation, perhaps a mediator, family therapist, realtor, life coach, investment advisor, or mortgage professional.
I have launched EVA’S ROUNDTABLE a directory of professionals who can advise women facing separation/divorce.
Eva’s Roundtable is here to help you connect with professionals that are pre-screened and referred through Women in Divorce Financial. Each one provides a specific area of expertise, and understands the value of working together.

Click here to view Eva’s Roundtable