While divorce is an extremely emotional period, both parties must be very careful in planning for his, her, and the children’s financial well-being. As financial advisers, we see two main concerns when couples are getting a divorce: titling of assets and the cost of litigation.
Bil Lako, CFP® addresses a listener’s question regarding the loss of a spouse.
Jennifer Thomas, CFP® answers a listener’s question on what to do with an inherited IRA.
Taxes play a very important role in shaping a divorce settlement. Some items, like alimony or cash settlements, are taxable to the spouse who receives it, while child support payments are not. For more information on important divorce tax issues, read this C.P.A. Insight.
There is often a need for financial planning prior to a divorce, as high emotions can lead to poor financial decisions.
