FINANCIAL CONSEQUENCES OF BEING ALONE
GETTING DIVORCED?
GETTING MARRIED?
GETTING RE-MARRIED?
RECENTLY WIDOWED?
You need to know the financial implications of divorce, marriage and re-marriage.
If you are planning a change in
your marital status, you need to know the tax implications before you
make changes. You need to prepare financially!
I have given seminars on the Tax Implications of Divorce. The seminars have been sponsored by WE CAN, a non profit organization on Cape Cod. You can contact WE CAN at 508-430-8111 for the next seminar on January 14, 2006. Click Here to visit the WE CAN website and get a listing of their current seminar offerings.
If you decide that divorce is the right choice for you, I can help you navigate the tax implications.
On January 23, 1996 an article I wrote appeared in the Cape Cod Times in Hyannis, MA. The article was titled "Plan for financial consequences of being alone". The article reads as follows:
"Four out of five married women
will become widows. Two out of three marriages within the past 15 years
will end in divorce. Are these women ready for the financial
consequences?
Since 1993, I have led financial
seminars for women. I have seen many anxious women express their
concerns about money and finance. Emotions have ranged from mild
hysteria to reflective concern. Backgrounds have ranged from women
struggling to make ends meet to the affluent. Many participants are on
limited income and are frightened.
Financial knowledge is crucial.
One of the best gifts you can give to your spouse is to prepare him or
her to face the future alone.
Wives should understand family
finances. Most spend more time planning a two-week vacation than they
do for their retirement years.
When it comes to planning, the
adage to start with a single step is not a bad idea. A great way to
start is to write down all expenditures for a week. What an eye opener!
At the seminars, probably the most
commonly asked question is: Will I have enough money to live on? Will
my funds run out before me?
Another common question: If
something should happen to me or my spouse at this point, what would
happen to the family, children and house?
Other issues would be whether they
still could educate their children, what will happen to their business,
or will they (or their spouse) need to start working (again).
Usually the most pressing problems
when a financial crisis happens are the issues of the family, and not
tax or estate planning. The question I get asked most from women
getting divorced or women whose spouse has died is: How an I going to
live?
When people get divorced the
couple frequently forgets that two households cannot live as cheaply as
one. The reality sets in. The primary issue is to define and quantify
the problem and then to come up with a solution.
Many women are managing money for
the first time. Linda Gadkowski, a certified financial planner in
Centerville, always starts with a budget. When se speaks to women on
personal financial planning she gives them a 12-step list to goal
achievement. She will tell you: "A goal properly set is a goal half
achieved."
Management of your money is not a
big mystery. Anyone who has an interest and will take the time to read
can learn the necessary skills to understand her money situation.
Don't be afraid to ask questions.
Further if you seek advice from a qualified financial adviser, make
sure that advice is for your best interest (and not the financial
adviser's.)
The three major areas most often
asked about when people want to invest are: How do I invest in cash
equivalents (Treasury securities, certificates of deposit and money
market funds), mutual funds and stocks?
Other areas of concern are:
applying for credit, how much insurance is enough, should I refinance
my house, what are the tax implications for the current year and for my
estate?
Everyone should have a team: certified public accountant, a qualified financial adviser, and a trusted attorney.
No matter what happens to you, you
must be open to the possibility that you can make something positive
out of almost any situation."
