Monday, March 7, 2011

Can I Make Changes to My Divorce Settlement?


If you have been divorced for a while, you may now realize that your divorce settlement agreement is no longer working in the way you had expected it to given unanticipated changes in your life post divorce.   This happens for a variety of reasons, especially for those who were in a hurry to get their divorce settled without involving the financial expertise of a divorce financial planner.  In other cases, things happen such as the loss of a job or there were new child related expenses that might have been anticipated but now call for modification or renegotiation of your judgment.

If you and your ex-spouse agree to change the settlement, modifying it should be relatively hassle-free.  However, if you do not agree to make the changes, you may be in for a painful second round of your divorce.  

There are specific means tests and legal statutes that afford you the opportunity to go to court to modify or cease your spousal support or child support obligations.  However, it is nearly impossible to make changes to your property settlement once the settlement is final.  Generally, property division is a one shot deal.  The only circumstances that exist for you to reargue, reopen or change property division is in rare circumstances such as duress, fraud, or legal error.  The circumstances that allow changes to the property agreement usually are identified within a very short window of opportunity – typically 30 days after the divorce is finalized.

Is it possible to make changes to the property agreement after your divorce?  The short answer is, “Probably not.”  Property division means you need to make educated and strategic decisions.  Do it right the first time with the help of a divorce financial planner who can also help set new financial goals for your future.  Things that seem “fair” during divorce negotiations sometimes really aren’t when you look 5, 10, 30 years into the future.  There really is no way for someone without the training and expertise to understand all of the long-term financial consequences of the decisions you will be required to make.  So be sure to find a qualified divorce financial planner in your state.

Wednesday, March 2, 2011

How To Avoid The High Cost Of Divorce


There’s an old saying…”Love is grand. Divorce is a hundred grand.”

If that saying shocks you, you are not alone.  Most people tend to underestimate the cost of a divorce.  While there are no national statistics for the cost of divorce, professionals agree that the average cost for a litigated divorce today is high.  According to divorce360.com the cost of divorce for a couple with an average income of $60,000 per year with a home worth $185,000 is about $53,000. For couples making $150,000 per year with a home valued at $535,000 the cost would be about $188,000.

Traditional divorce on average takes approximately two years to complete.  This is because of the number of legal motions and court appearances incurred typically in the course of offers and counter-offers passed between attorneys to resolve differences.  The longer it takes, the more expensive it is going to be.  Plus, that is two years of being fearful, angry, and anxious.  

One way to reduce the time and cost of the divorce would be to consult with a divorce financial planner.   A divorce financial planner can help you to better understand the reality of your financial circumstances: to quantify your financial needs and your spouse’s ability to pay for support obligations, as well as analyze an equitable division of marital property.

By working with a divorce financial analyst first, you can work through the financial details with someone trained to help you understand all of the financial consequences of the decisions you need to make.  Attorneys focus on legal issues while a divorce financial planner will provide more in depth analysis of-the complex tax and financial issues that you will be facing and present recommendations for achieving -a divorce settlement that is best for you.

Another benefit of working with a divorce financial planner is that you -can plan for what your financial life will look like after your divorce.  A divorce financial planner will help you transition into your post-divorce life by helping you create  a clearer picture of your long-term financial goals and produce budgets for you so that you’ll have a realistic picture. 

Once you know what your life will look like after your divorce, you will become much less fearful which will mean that you can face your divorce with confidence. And, chances are you will be able to develop a divorce settlement much faster.   Less time reviewing offers and counter-offers and less time in a court room will mean that you have more time to transition to the next phase of your life.