5 Divorce Mistakes That Can Cost You Lots of Money… and Sleep

Whoosh! That’s the sound of money from divorce mistakes flying out of your wallet. You chase after it, but never seem to catch up… You’re doing everything you think you’re supposed to, but nothing is working. Your accounts seem to become self-draining, and you can’t seem to stop the leaks. You wonder what you’re doing wrong…  and why this has become so complicated. Chasing your money, running from meeting to meeting… And your emotions are all over the place, like your money. You’re frantic about your future because it seems everything is unknown. Then… suddenly at 3 am… in a panic… you wake up. It was all a bad dream…… Read More

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Four Tax Considerations For Divorcing Couples

Tax season is upon us, and many divorcing couples need to think about what to do now, and what they should know for the future. 1. Consider filing a joint tax return during your divorce. If you are married there are two choices – married filing jointly or married filing separately. However if your spouse is a bit “aggressive” with his or her deductions and you sign that return, you will also be liable for any future tax balances and penalties, so be cautious.  When filing separately the same income is subject to a higher tax, which is a penalty of sorts. Also certain deductions are disallowed. In the case… Read More

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Who Claims Child Tax Credit For The Children

Question: Which parent claims the tax deduction for the children on their return? Answer: The dependent tax deduction has expired for 2018. There is now a $2000 Child Tax Credit per child. This credit for the children generally default to the parent who has primary custody. Even with shared custody, one of the parents has the children in their home more than the other. During a separation, there may not yet be a formal agreement on this issue. In that case, by counting these overnights on the schedule you can determine who actually had more overnights. The credit also depends upon who pays more than 50% of the child’s living… Read More

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Grounds for Divorce Demystified

You’ve likely heard the term “Grounds For Divorce.” In the old world of divorce you had to have a reason for the divorce, and it couldn’t just be that you don’t get along anymore, or you’ve fallen out of love. As an example, here’s the list that was applicable in New Jersey: As per New Jersey Rules of Court: 2A:34-2 Causes for divorce from bond of matrimony.  a. Adultery… b. Willful and continued desertion for the term of 12 or more months… c. Extreme cruelty, which is defined as including any physical or mental cruelty which endangers the safety or health of the plaintiff or makes it improper or unreasonable to… Read More

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The Simple Answer To Overcoming Your Divorce Fears

For 15 years I have spoken with many women who have been facing divorce fears – all ages, and with varied income levels and family sizes. Throughout it all there has been one common denominator. In some cases it related to finances, in others it related to children, and of course many related to the emotional aspects of the divorce itself. I say related, because this one common denominator was not related to the divorce process itself. Almost every single individual had major concerns that circled the question “How am I going to survive AFTER the divorce?” This is not “rocket science.” You see it every day with men as… Read More

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Reduce Stress and Relax

DISCOVER YOUR IDEAL DIVORCE MINDSET   Did you know that both the financial and lifestyle outcome of your divorce and your resulting frame of mind is all based on your divorce mindset, and your emotions during the process? If not handled properly, it can break you to a point where you experience both the financial and the emotional divorce devastation for a long time after it’s all over. From what I’ve seen, most people don’t realize that there are actually two ways to approach divorce. One will break you, and the other will bring you smoothly to the life that awaits you. You have choices, but because you likely feel somewhat… Read More

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Don’t Let Divorce Wreck Your Thanksgiving

With Thanksgiving coming up in a few short weeks, many of us can’t help but focus on the negatives that we may be facing right after the holidays and further into the future, especially when considering divorce. There is no doubt that all of us, no matter the circumstances, will have bumps in the road. So how can you get past these dark thoughts, at least for now? Every year at this time for the past 10 or 12 years my daughter and I have spent a few hours helping out at our local food pantry. We help them prepare for both Thanksgiving and Christmas.   It’s an overall massive… Read More

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How To Avoid Major Divorce Planning Mistakes

Over the past two weeks I have read three financial planning articles on the web, and you might say I was strongly compelled to write about it. Apparently some estate planners have been recommending that after your divorce you should change your will, living will, medical directive and power of attorney. From a practical standpoint, the last thing you want to do is to wait until after your divorce is final to change your Last Will and the associated legal documents. You should seriously review and consider making changes before you even begin to plan for your divorce. In many states attorneys may tell you that once initial papers are… Read More

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Become Confident As You Prepare For Divorce

What Does it Mean to be C-O-N-F-I-D-E-N-T? Confidence comes from feelings of well-being, acceptance of your body and mind (self-esteem), and belief in your own ability, skills and experience. People who are confident share the following important characteristics: C – CAPABLE Confident people are capable.   They know they are good enough, competent, and can handle life’s situations. Admitting you are capable also means knowing that if you cannot handle a situation completely on your own, you can find out where to get the necessary help, information, or skill. Knowing you are your greatest resource protects you from stress. Believing you are capable means that whatever the task, you will handle… Read More

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Alimony Income and Mortgages

Question:  IS ALIMONY INCOME FOR MORTGAGES PURPOSES? Below is a recent question from a current client. It is a two-pronged questions involving alimony qualifying for mortgage income and her husband’s lucrative business. “I have a question about going for a loan. If I was able to keep our home and had to refinance, will the lender accept maintenance (alimony) as part of my income? I make very little money now as I have been a stay at home mom for the past 15 years and my husband has his own business which he nets about $200,000 per year. One of our agreements is that I keep the house and don’t… Read More

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