Tax Overhaul Targets Alimony
Friday, 26 February 2016
If you are going through a divorce and reading all you can to learn what you need to do, you have no doubt read much about the need for a financial professional on your divorce team. Heed that advice. Your divorce is most likely the largest personal financial negotiation you will ever be involved in. Think about it. This is something you have never done before. The emotions of the situation have made you not your best, most clear thinking self. And, how well versed are you in the subtleties and tax issues of your investments, retirement accounts, and debts?
So, you're beginning to believe that you need financial help. However, you're just not making it happen for yourself. Let's look at some of the excuses why.
Excuse #1: It will cost too much
Excuse #2: I don't have all that financial information
Excuse #3: I don't have the time to deal with another professional
Excuse #4: My attorney said I don't need one
If they tell you they "have been doing this for 20â€¦30â€¦ years and can handle everything," go back to what I said regarding the kinds of outcomes I, and others, have seen over those years. Also, we have never had such complex family finances and divorce tax issues as we now have. The days of working 40 years for a gold watch and pension are gone. Families have been forced into having financial tools and products that neither they, nor most attorneys, thoroughly understand. Slicing and dicing these assets is even more complex than managing them intact.
Excuse #5: I already have a financial advisor or CPA
Further, if your current financial professional has been serving both you and your spouse, such as managing an IRA for each of you, or a joint investment account, or preparing joint tax returns, they cannot feasibly, or ethically, advise both of you in each of your respective best interests. You need someone else to help you with this divorce, then return to them for non-divorce services if you wish.
Excuse #6: I'm not sure how to pick one
Hopefully, we have dismissed all the excuses why you may not yet have a divorce financial consultant on your professional divorce team. Remember, this is about the rest of your life. Someone once told me, "I was taught to never try to save money on parachute packers, neurosurgeons, and divorce financial planners." Good advice.
Posted on 02/26/2016 11:58 AM by Rosemary Frank
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