Provider of Divorce Financial Planning Nationwide; Mediation in MD, PA, and DC 410.205.1045 hello@trunorthdivorce.com

Divorce: How to Keep Your Money

by |

As soon as you begin to contemplate divorce, the nauseating, panic-attack-inducing realization of losing half of your net worth kicks in. You find yourself wondering if it’s even worth it to consider leaving if you’re just going to end up broke and starving.

There are ways to ensure that your financial future is not destined for disaster. First and foremost, be sure you involve a Certified Divorce Financial Analyst (CDFA®) or CDFA®-Mediator so that you will be fully informed of all the creative settlement possibilities that may be open to you. They are your best bet when you want to keep your money safe.

A couple married 24 years were referred together to a colleague for assistance with their divorce. They had gone to an attorney together and were completely amicable. The attorney made it clear that he could only do their document preparation since he was ethically bound to represent only one party. That was ok, but they asked how they would determine their property division. He responded,

“This is a community property state so we’ll just divide each asset and each debt exactly 50/50.”

The couple just didn’t feel like that was the smart thing to do. They were referred to the CDFA® to explore options.

After gathering all of their financial documents and completing the analysis, the CDFA® put together two reports for the clients. The first reflected an exact 50/50 split as the attorney had suggested. The second was a creative settlement solution that also resulted in a net 50/50 split but took into consideration tax planning and consequences as well as the needs of each party as they planned for the next phase of their lives.

This couple had less than $800k in total net worth and the creative settlement solution resulted in an additional $20,000 EACH to their bottom line just because some financial intelligence was used to determine their settlement. That’s real money! That’s how you keep your money! Needless to say, the couple was thrilled knowing that they saved $40,000!

Don’t go into this blind. There are so many ways to ensure that both of you get to keep more of your own money. Get the right experts on your team. We’d love to help you! Call us today.

5 Interview Questions for a Divorce Mediator in Annapolis

by |

 So, you’ve decided to seek a mediation for your divorce, and you’re exploring local options. With emotions running high, picking a divorce mediator in Annapolis can seem like a daunting task. The professional you decide to work with needs to hold a level of your trust—after all, they will be helping you and your soon-to-be-ex-spouse navigate the murky waters of divorce.

Choosing a mediator that fits your needs is a careful decision, it’s a good idea to do your homework ahead of time. Thinking about the types of things you might ask a professional mediator before you make the decision to commit to one is a good way to prep for an initial consultation. TruNorth Divorce Solutions has put together a quick list of questions that you might want to ask your prospective mediator.

1.     How do you define success? How do you facilitate this during the mediation process?

This is a great question to ask during your initial meeting with a professional divorce mediator because odds are that this is the first time you’ve sought out a divorce mediation and are unsure about how the process works. Mediation is a collaborative effort between you, your ex, and the mediator you choose to work with.

It’s important to outline expectations before the mediation process begins, and this question can really flush out some of those expectations. Ideally, you want to work towards a divorce settlement that both parties are happy with. Your prospective mediator may go into detail about their strengths and what they bring to the negotiation table.

 

2.     What is your success rate?

This is a great follow up question to ask in tandem with how your mediator defines success. The answer to this question can provide some much-needed confidence and really influence your choice.

The mediator will probably touch on the depth of their experience in the industry and how many divorcing couples they have worked with. They might also have some metrics (i.e., that they have successfully mediated XX divorces in the Annapolis area for X years) of success to share with you that reflect their professional expertise. They may even share some relevant anecdotes.

 

3.     How much does mediation cost?

Ah, the price tag. An important question. Make sure to get these details during your initial consultation. Your mediator may bill hourly or have a flat rate mediation fee. While one divorce mediator in Annapolis may charge $1000 an hour for their services another may have a flat rate fee for services of $7000. Don’t make assumptions and ask for rates up front.

Remember, price isn’t always the main consideration behind choosing a mediator and shouldn’t necessarily deter you. While it is important to stay on budget, you should also consider the level of skill and expertise that the mediator has to offer.

 

4.     How long is each mediation session/how long does mediation typically last?

Another great question to ask your divorce mediator is how long each session will last and how long the process takes overall. These questions can be particularly salient if your mediator bills by the hour. 

 The answer to this question also gives you an idea of how much time you will need to carve out of your schedule for the mediation process. You can also ask about whether your mediator holds private sessions (depending on your circumstances) and other questions surrounding the level of commitment expected of you.

5.      What do your services include?

Being unfamiliar with mediation, you probably want to ask about what is included with their services. Is the mediator drafting up divorce settlement documents for you? Will they be filing them on your behalf? Will you have to pay additional court costs or those included? Asking this question up front will help give you a clear picture of what to expect of your mediator. 

Any reputable mediator would welcome these questions during your consultation, so you shouldn’t hesitate to ask. Looking for a divorce mediator in the Annapolis area? Contact TruNorth Divorce Solutions for a free divorce strategy session. 

 

 

Get A free Consultation

Schedule Now

484.321.6990

hello@trunorthdivorce.com

Three Ways to Keep Divorce from Wrecking Your Retirement

by |

While retirement might not be in the forefront of your mind during a divorce, it’s something that needs to be considered, especially if your facing a “gray divorce.” Divorce can have a profound impact on your retirement savings and financial future. Depending on the circumstances of your split, you may see your retirement prospects change dramatically.

So, how do you keep a divorce from wrecking your retirement? TruNorth Divorce has put together a list of three things to best protect your retirement.

1. Work with the right divorce professional

Work with a Certified Divorce Financial Analyst (CDFA®) or a CDFA®-Mediator. CDFA®’s are experts at divorce finance and know how to preserve your retirement. They understand how taxes work with various kinds of assets and how to value a pension. They can predict the tax consequences of transfers between spouses, and help to ensure your retirement moneys will be properly transferred between spouses.

Lawyers do not have this expertise! At TruNorth Divorce our mediators and advocates are not just expert mediators, they are also CDFA’s and trained divorce coaches. The law is typically a non-issue in most divorces—most divorces don’t need to be processed through the legal system. Your settlement agreement, custody agreement, and divorce filings will always be legally compliant and the quality of your divorce far better when you work with TruNorth Divorce than if you work with an attorney alone.

2. Consider the tax implications of your settlement agreement

Not all assets are treated the same by the IRS. Equity in a house isn’t taxed up to $250,000 per spouse (assuming there are no other prior real estate rollovers pre-1997). Withdrawals from an IRA are taxed at your marginal tax rate. Big difference. Likewise, joint funds in brokerage accounts can be subject to capital gains taxes.

Also, the division of retirement account assets during a divorce, specifically, can have unique tax implications and governing regulations. It’s important to look at the particulars of each account and determine its actual after-tax value. A Roth IRA with $50,000 sitting in it is worth more than a 401(k) with the same amount of money. A pension distribution of $50,000, too, will be treated differently tax-wise.

3. Make sure you have a properly executed Qualified Domestic Relations Order (QDRO)

The Employee Retirement Income Security Act of 1974 protects retirement assets in 401(k), 403(b), and Thrift Savings Plans for federal employees and military personnel. For these plans, you will need to draft a qualified domestic relations order (QDRO) so that the asset split becomes legal and for retirement plan administrators to accept and execute it.

A QDRO endorsed by a judge and executed properly provides a means to roll over a portion of a qualified retirement plan without penalty, tax-free. Depending on the circumstances, you may choose to continue contributing to the retirement plan. You could also roll it over into a Roth IRA through a trustee transfer. You can even take penalty-free withdrawals from transferred qualified retirement plans when they are handled within a QDRO—very helpful if you need some extra cash for a house down payment or to retire debt. Without a well-drafted QDRO you could wait years for your retirement account transfer.

Taking the proper steps to accurately assess your retirement assets during a divorce will put the right financial foot forward as you wipe the slate clean and retake sole ownership of your assets. For more post-divorce budgeting tips and all topics divorce, visit our blogsite.

Reach out to a divorce mediator in Maryland if you want a kinder, smarter, and more affordable divorce. If you’re on the fence and you have a list of concerns related to your divorce, don’t hesitate to Schedule a Free Strategy Session to go over your options. 

 

 

Get A free Consultation

Schedule Now

484.321.6990

hello@trunorthdivorce.com

3 Key Things to Look for in a Divorce Mediator in Pennsylvania

by |

Getting a divorce is certainly not the best of times and should be a last resort to solving marital conflict. Sometimes, despite our best efforts, things just don’t work and it’s important to accept that and move forward. If you find yourself searching for a “divorce mediator near me,” then you’re in luck. Using mediation can eliminate a lot of the stress, strife, and expense from the divorce process and help both parties get a satisfying outcome.  

As divorce mediators in PA, we know how to bring clarity and calm to these situations. However, when you’re seeking out a divorce mediator in Pennsylvania, there are going to be a few things to look for in a qualified professional: 
 

    1. Expertise. Before you secure divorce mediation in PA, ensure that the person you hire has the right qualifications required to be your mediator. She should be skilled in all areas of divorce–legal, financial, and emotional and be able to expertly guide you and your spouse to a solution that you’ll feel good about now and for years to come. A CDFA-Mediator may be your best choice.

        

    2. Experience. A highly-experienced professional can make all the difference. Any divorce mediator in PA you seek out should have a good number of years working with divorcing couples. When you talk to a potential mediator, ask her about her success rate and what’s made her effective.

        

    3. Demeanor. Divorce is an emotional roller-coaster and “divorce brain” can make it hard to make good decisions. You should look for a divorce mediator in PA who has the training and personal style that is helpful when working with a couple where one or both of the spouses is experiencing confusion, shock, anger, resentment, sadness, and more.  

      If you’re looking for a divorce mediator in Pennsylvania, then you should call our       PA Office for TruNorth Divorce Solutions or Schedule a Free Strategy Session to get help you determine if mediation is right for your divoce and gain tips on how to approach mediation successfully. 

TruNorth Divorce provides expert divorce mediation and guidance to individuals and couples considering divorce. Their mediators are not only experienced mediators who are highly knowledgeable about divorce law and procedure, they are also trained as divorce coaches and are Certified Divorce Financial Analyst CDFA® professionals who specialize in divorce financial issues. This powerful combination allows them to address each of the dimensions of divorce–legal, financial, and emotional–leading their clients to a better and brighter future that has taken all their needs into account.

 

 

Get A free Consultation

Schedule Now

484.321.6990

hello@trunorthdivorce.com

Should You Hire a Divorce Attorney or Divorce Mediator?

by |

Deciding to get a divorce is a very difficult decision and not one to be made lightly. There are many things you will need to consider, starting with these 7 points. Once you think you want to move ahead, who do you call? Most think to call a lawyer, which most often leads to the traditional path to a divorce. While there are times you will need to have a lawyer  litigate your divorce in court, it should be one of the last options you choose. Do you need a divorce lawyer or divorce mediator?

The reality is that the vast majority of divorces should not be handled within the court system. Today, many choose a constructive divorce process that facilitates a more positive future rather than one that tears them down. At the top of the list of constructive divorce processes is mediation. 

Let’s look more closely at the differences between working with a litigating divorce attorney and a professional divorce mediator.

What is Litigation with a Divorce Lawyer

The court-centered, traditional divorce process is where each party gets a divorce attorney and then battles it out in the courts with petitions, hearings, mandated conferences, and maybe even a full-blown trial. This is a relatively costly, slow, and divisive process. 

Attorneys are trained to be adversarial and most divorce attorneys charge an hourly rate of $350 or higher. They are incentivized to spend more time working through the details of court filings, support, property division, and custody. and divorce settlement agreement. When you have two attorneys discussing the minutiae of your divorce and arguing in court, the couple may be paying well over $700 an hour! It’s no wonder that many litigated divorces cost $40,000 and sometimes significantly more.

What is a Divorce Mediator

Divorce mediation is the first of the constructive divorce processes you’ll want to consider. It’s expert-guided, relatively fast and inexpensive and it allows the couple to control their futures and privacy. Mediation is a process where both parties want to resolve their issues and come to an agreement together about custody and the parenting plan, child support, alimony, and property division. A mediator doesn’t make decisions but they assist through a variety of methods including education, financial analysis, conflict resolution, best practices, etc. 

Divorce mediation is a good choice for those who want a gentler divorce that will allow them to keep more of their money and dignity. The couple doesn’t have to be amicable, they just have to be willing to negotiate in good faith. One thing for sure, their long-term relationship will be much better if they can work through mediation rather than the courts. This is especially valuable for parents who will be interacting throughout their children’s lives but important for anyone’s future well-being and peace. 

A divorce mediator can be a lawyer, a Certified Divorce Financial Analyst (CDFA®) or other appropriately trained individual. Be sure you understand the differences in your alternatives and which would be best suited for your case. The decision of choosing a divorce attorney or a divorce mediator is a personal one.

If you need some help figuring out which approach would be best for you, get in touch with TruNorth Divorce and ask for a Free Divorce Strategy Session to explore your options. They specialize in providing expert divorce mediation advice to individuals and couples considering divorce. They are certified divorce financial analysts and trained divorce coaches who specialize in helping divorcing individuals and couples get their best possible outcome.

 

Get A free Consultation

Schedule Now

484.321.6990

hello@trunorthdivorce.com