usual 10% IRS penalty. In addition, make sure a Qualified Domestic Relations Order is completed before the divorce is finalized, otherwise, if your ex-spouse were to die, it may be difficult for you to receive any of the retirement benefits.

• Alimony and/or Child Support Payments: Consider including a life insurance policy in your settlement. Life insurance will replace this stream of income if your ex-spouse should die.

Recently, I met a colleague whose divorce was settled five years ago. After reviewing his settlement, I recalculated his earnings, using th

Nearly 50% of first marriages and 70% of second marriages end in divorce.

Unfortunately, despite these high statistics, many people are not prepared when divorce comes knocking at their doors.

While divorce attorneys are experts at interpreting Family Law, they often don’t excel in the field of finance. For many individuals, the financial ramifications of divorce remain the most intimidating and potentially devastating aspect of an ending a marriage.

A Certified Divorce Financial Analyst (CDFA) is an expert in examining the financial issues in divorce. They explain the financial aspects and help empower you to make educated decisions through the proceedings.

You don’t have to be a high flying executive with millions of dollars to be concerned. Anyone who owns a home, a retirement account, a 401k, stock options/warrants, investment portfolio, etc. struggles with the question “Will I get my fair share” or “Do I have enough to live off of?"

Here are the some things to consider in safeguarding your finances and to prevent you from making costly mistakes during a divorce.

• Consider Tax Implications: A stock portfolio divided down the middle is not always equal. The embedded gains and losses of the assets should be calculated in determining an equitable division.

• Calculate Total Compensation: Today many individuals are compensated by various means; salary, bonuses, stock options, stock grants, deferred compensation, etc. Be sure to look at everything in computing total income. Often this number differs by what is stated on the W-2 or tax return.

• Value of Pension Accounts: Taking the account value from the most recent statement from your pension may not always reflect the true assessment. Make sure to have a calculation performed in order to establish the accurate value.

• Keeping the House: Consider the mortgage payments, the property taxes and the cost of maintaining the home. Will these expenses fall within your budget, or will it leave you house poor? Make this decision based on a budget analysis, not on your emotions.

• Dividing Retirement Accounts: Before dividing retirement accounts, assess whether or not you need cash because you might be eligible to make an early withdraw from the plan without paying the usual 10% IRS penalty. In addition, make sure a Qualified Domestic Relations Order is completed before the divorce is finalized, otherwise, if your ex-spouse were to die, it may be difficult for you to receive any of the retirement benefits.

• Alimony and/or Child Support Payments: Consider including a life insurance policy in your settlement. Life insurance will replace this stream of income if your ex-spouse should die.

Recently, I met a colleague whose divorce was settled five years ago. After reviewing his settlement, I recalculated his earnings, using the

ey explain the financial aspects and help empower you to make educated decisions through the proceedings.

You don’t have to be a high flying executive with millions of dollars to be concerned. Anyone who owns a home, a retirement account, a 401k, stock options/warrants, investment portfolio, etc. struggles with the question “Will I get my fair share” or “Do I have enough to live off of?"

Here are the some things to consider in safeguarding your finances and to prevent you from making costly mistakes during a divorce.

• Consider Tax Implications: A stock portfolio divided down the middle is not always equal. The embedded gains and losses of the assets should be calculated in determining an equitable division.

• Calculate Total Compensation: Today many individuals are compensated by various means; salary, bonuses, stock options, stock grants, deferred compensation, etc. Be sure to look at everything in computing total income. Often this number differs by what is stated on the W-2 or tax return.

• Value of Pension Accounts: Taking the account value from the most recent statement from your pension may not always reflect the true assessment. Make sure to have a calculation performed in order to establish the accurate value.

• Keeping the House: Consider the mortgage payments, the property taxes and the cost of maintaining the home. Will these expenses fall within your budget, or will it leave you house poor? Make this decision based on a budget analysis, not on your emotions.

• Dividing Retirement Accounts: Before dividing retirement accounts, assess whether or not you need cash because you might be eligible to make an early withdraw from the plan without paying the usual 10% IRS penalty. In addition, make sure a Qualified Domestic Relations Order is completed before the divorce is finalized, otherwise, if your ex-spouse were to die, it may be difficult for you to receive any of the retirement benefits.

• Alimony and/or Child Support Payments: Consider including a life insurance policy in your settlement. Life insurance will replace this stream of income if your ex-spouse should die.

Recently, I met a colleague whose divorce was settled five years ago. After reviewing his settlement, I recalculated his earnings, using th

rtfolio divided down the middle is not always equal. The embedded gains and losses of the assets should be calculated in determining an equitable division.

• Calculate Total Compensation: Today many individuals are compensated by various means; salary, bonuses, stock options, stock grants, deferred compensation, etc. Be sure to look at everything in computing total income. Often this number differs by what is stated on the W-2 or tax return.

• Value of Pension Accounts: Taking the account value from the most recent statement from your pension may not always reflect the true assessment. Make sure to have a calculation performed in order to establish the accurate value.

• Keeping the House: Consider the mortgage payments, the property taxes and the cost of maintaining the home. Will these expenses fall within your budget, or will it leave you house poor? Make this decision based on a budget analysis, not on your emotions.

• Dividing Retirement Accounts: Before dividing retirement accounts, assess whether or not you need cash because you might be eligible to make an early withdraw from the plan without paying the usual 10% IRS penalty. In addition, make sure a Qualified Domestic Relations Order is completed before the divorce is finalized, otherwise, if your ex-spouse were to die, it may be difficult for you to receive any of the retirement benefits.

• Alimony and/or Child Support Payments: Consider including a life insurance policy in your settlement. Life insurance will replace this stream of income if your ex-spouse should die.

Recently, I met a colleague whose divorce was settled five years ago. After reviewing his settlement, I recalculated his earnings, using th

reflect the true assessment. Make sure to have a calculation performed in order to establish the accurate value.

• Keeping the House: Consider the mortgage payments, the property taxes and the cost of maintaining the home. Will these expenses fall within your budget, or will it leave you house poor? Make this decision based on a budget analysis, not on your emotions.

• Dividing Retirement Accounts: Before dividing retirement accounts, assess whether or not you need cash because you might be eligible to make an early withdraw from the plan without paying the usual 10% IRS penalty. In addition, make sure a Qualified Domestic Relations Order is completed before the divorce is finalized, otherwise, if your ex-spouse were to die, it may be difficult for you to receive any of the retirement benefits.

• Alimony and/or Child Support Payments: Consider including a life insurance policy in your settlement. Life insurance will replace this stream of income if your ex-spouse should die.

Recently, I met a colleague whose divorce was settled five years ago. After reviewing his settlement, I recalculated his earnings, using th

usual 10% IRS penalty. In addition, make sure a Qualified Domestic Relations Order is completed before the divorce is finalized, otherwise, if your ex-spouse were to die, it may be difficult for you to receive any of the retirement benefits.

• Alimony and/or Child Support Payments: Consider including a life insurance policy in your settlement. Life insurance will replace this stream of income if your ex-spouse should die.

Recently, I met a colleague whose divorce was settled five years ago. After reviewing his settlement, I recalculated his earnings, using the CDFA’s process, and found his income was grossly overstated due to the calculation methods used by the judge and attorneys involved. In addition, I found that no consideration was made as to the tax implications when dividing the investment portfolio. This action resulted in an inequitable division of assets, when the intent was for it to be a fair “50/50 split”.

There are always multiple solutions to finding an equitable distribution, and by working with an attorney and a Certified Divorce Financial Analyst, you will get an objective evaluation on your specific situation. More importantly, this will increase your chances of arriving at a fair settlement that fully addresses your long-term financial needs. You will finally have peace of mind in knowing that you have taken the necessary steps in protecting your financial future.