Divorce: How to Get It Right and Get on With Your Life

Estate Planning

Inheritance raises tax questions

Posted August 19, 2008 9:50 AM

Today I answer two questions related to inheritance: Dear Dr. Don, My husband and his sister inherited money and other property after their father's death last year. What is their basis in the money they received from his retirement funds, IRAs, stocks, sale of his house, etc.? -- Flummoxed Flo Dear Flo, The assets are valued either at the date of his death, or six months later (if Read more...

See also: assets, beneficiaries, capital gains, inheritance, invest, ira, retirement account, tax

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Investing

Gains on Assets Quiz

Posted August 18, 2008 6:37 PM

Gains on assets held one year or less are taxed as: a) Ordinary income b) The capital gains rate—i.e. 15%. c) A hybrid. (It is the average of your personal tax rate, and the capital gains rate. d) They are not. They are not taxed at all. See next page for answer. Answer A: They are treated as ordinary income and taxed accordingly. Read more...

See also: assets, capital gains, short term, taxes

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General Money

An Introduction of Sorts to What we Will be Doing Together

By Paul B. Brown
Posted July 8, 2008 7:03 AM

Let’s start with a pop quiz. (Don’t worry. We won’t be grading it.) Which of the following people is a financial success:     A. Mr. Apple who has all the money he needs, thanks to his stock picking prowess.     B. Ms. Blue, who is currently living the way she wants—writing columns for an on-line company that doesn’t pay much—thanks to the current income being generated by Read more...

See also: assets, finances, money, portfolio

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Tips for Negotiating a Settlement

Tips for Negotiating a Settlement

You wouldn't ask a stranger to plan your monthly budget and analyze your bank statements. But this is exactly what happens when your case goes to trial before a judge. "Only a fool goes to trial," says Iva Hauck Girtman, a certified financial planner and certified divorce planner in Lakeland, Florida. It's also a costly endeavor that can set you back tens of thousands of dollars in legal fees. Although negotiating can be grueling, you still have some control over the process.


Don't make hasty decisions

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Tips for Negotiating a Settlement

You wouldn't ask a stranger to plan your monthly budget and analyze your bank statements. But this is exactly what happens when your case goes to trial before a judge. "Only a fool goes to trial," says Iva Hauck Girtman, a certified financial planner and certified divorce planner in Lakeland, Florida. It's also a costly endeavor that can set you back tens of thousands of dollars in legal fees. Although negotiating can be grueling, you still have some control over the process.


Don't make hasty decisions

Back to intro
PaulBBrown

Q&A From Our Experts

Today's Expert: PaulBBrown
Q:

What is the benefit of investing in individual stocks vs. buying a mutual fund?

A:
For most people, mutual funds are an easy way to invest in the stock market. They give you diversification, and free you from spending an ... Read More...

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What's your greatest asset that you play up with fashion and makeup?

Figuring Your Taxes

Figuring Your Taxes

If you don't consider the tax implications of dividing your property and signing joint returns, a seemingly fair settlement could become a grave injustice.

First, consult an accountant before you memorialize your divorce agreement in writing, especially if there are tax-sheltered accounts, investments, and businesses to divide. "I'm usually in a position of not knowing anything until after the divorce is final and I'm telling the client that he's going to be wiped out," says Ed Slott, a CPA in Rockville Center, New York.

Back to intro

Figuring Your Taxes

If you don't consider the tax implications of dividing your property and signing joint returns, a seemingly fair settlement could become a grave injustice.

First, consult an accountant before you memorialize your divorce agreement in writing, especially if there are tax-sheltered accounts, investments, and businesses to divide. "I'm usually in a position of not knowing anything until after the divorce is final and I'm telling the client that he's going to be wiped out," says Ed Slott, a CPA in Rockville Center, New York.

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Dividing Assets, Part 2

Dividing Assets, Part 2

Dividing assets such as investment accounts and pensions may seem painfully complicated. Your lawyer can help demystify the process but you may also want to consult a financial planner to help project your future needs. A new breed of experts, known as certified divorce planners, specialize in the financial aspects of divorce. You can find one through the Institute for Certified Divorce Planners. In addition, knowing a few basic principles can help you ask the right questions:

The options for your options

Back to intro

Dividing Assets, Part 2

Dividing assets such as investment accounts and pensions may seem painfully complicated. Your lawyer can help demystify the process but you may also want to consult a financial planner to help project your future needs. A new breed of experts, known as certified divorce planners, specialize in the financial aspects of divorce. You can find one through the Institute for Certified Divorce Planners. In addition, knowing a few basic principles can help you ask the right questions:

The options for your options

Back to intro

Dividing Assets, Part I

Dividing Assets, Part I

The grueling process of deciding who gets what is first governed by emotion and then by the laws of community property or equitable distribution.

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Dividing Assets, Part I

The grueling process of deciding who gets what is first governed by emotion and then by the laws of community property or equitable distribution.

Back to intro

What Do You Owe and Own?

What Do You Owe and Own?

Dividing money is a painstaking and significant part of the divorce process. Making an irrational decision can cost you dearly. Try to distance yourself from the emotional storm and view your marriage as a business.

Think of the obvious, and then beyond.

Back to intro

What Do You Owe and Own?

Dividing money is a painstaking and significant part of the divorce process. Making an irrational decision can cost you dearly. Try to distance yourself from the emotional storm and view your marriage as a business.

Think of the obvious, and then beyond.

Back to intro
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