Divorce Financial Issues | Pennsylvania Family Law Blog - The Law Offices of Sheryl R. Rentz - Part 3
Why Long-Term Separations May Be More Costly than Divorce
There are plenty of horror stories about what it takes to end a marriage that it is understandable why even the unhappiest couple may feel reluctant to go through with divorce. Exorbitant alimony payments, gut-wrenching custody battles, and the risk of losing half of your property are just some of the major fears that would persuade a couple to settle for a long-term separation, rather than make things official.
If you think separating without divorce is the safe way to go, think again. Putting off making a final legal decision for the sake of convenience could lead to an unknown financial disaster in the future. Essentially, the devil you don’t know could be a lot worse than the devil you do know.
Rupert and Wendi Murdoch: Lessons from an Affluent Divorce
As the much-publicized divorce of Rupert and Wendi Murdoch continues, the media seems to relish uncovering every aspect of the split, particularly because the couple in question includes someone with significant wealth and a global news empire. But what, if anything, can be learned from the details that emerge when such an affluent couple calls it quits? Examining how the parties try to protect such high-profile assets can reveal a lot of practical advice for even those without millions of dollars in the bank.
Legal Agreements
One of the most notable factors in this divorce is that Rupert and Wendi signed a prenuptial agreement followed by two postnuptial agreements. Postnuptial agreements are typically used to solidify the prenuptial agreement and to make the separation of assets cleaner.
Can I Qualify for Social Security Benefits After Divorce?
If you have been married for at least ten years and meet other requirements, you may qualify for Social Security retirement or disability benefits based on your ex-spouse’s work record – even if your former spouse remarries. A hardworking Pennsylvania divorce attorney can help you understand how your benefits may be affected by divorce.
Retirement benefits are paid through Social Security if a person is 62 years of age or older and has a work record that qualifies him or her for benefits. The former spouses of such workers may also qualify for “derivative benefits,” which amount to one-half of the working spouse’s benefit, as long as the marriage lasted at least ten years and the former spouse does not qualify for a higher benefits award based on his or her own work record. Read the rest »
Financial Points to Consider During Divorce
During your first meetings with an experienced Pennsylvania divorce attorney, you’ll begin to discuss your financial situation. In some ways, divorce is like splitting up a business partnership: both processes focus on dividing assets and debts in a way that neither unfairly rewards nor unfairly burdens either party.
If you’re considering divorce or have recently filed for divorce, here are a few financial points you’ll want to consider:
- Bank Accounts. Joint bank accounts (in both your name and your spouse’s name) can often be divided equally, especially if both parties agree this division is fair. If you don’t typically keep an eye on your household’s shared accounts, now is a good time to start. Read the rest »
Easing Separation Anxiety
Sheryl R. Rentz, Pennsylvania family law attorney, wants to help move you through the difficult periods of separation and divorce as efficiently as possible. She understands the anxiety couples feel and knows that separation presents many of the same issues couples must face during divorce.
As reported in The Wall Street Journal, money may be the last thing on couples’ minds when they separate. They may even feel that dealing with finances can wait until the divorce. Whether a couple reconciles or not, a reasonable financial plan upon separation can make all the difference. Without a financial plan, the process of divorce can become nasty. If couples choose reconciliation instead, it makes it more difficult to rejoin finances. Read the rest »
Plan as Thoroughly for Divorce as You Would for Your Wedding
Divorce and weddings are both stressful, emotional times in a woman’s life. But while you want your wedding to be perfect and plan accordingly, you may simply want to get through a divorce in order to quickly move on with your future. While this is understandable, it can also be costly. Ironically, all that slow and careful planning that goes on prior to the wedding occurs when you have little or no assets; 20 or more years later the two of you likely have assets accumulated. That makes it important to plan for divorce equally as well as you did for marriage.
Certified Financial Planner and senior investment officer for South Texas Money Management, Ltd, Lisa Fox understands divorce is an emotional time, but also realizes having an attitude of “just wanting to move on” could cause potential long lasting financial consequences. Read the rest »
Financial Aid after Divorce
After divorce, children are impacted in emotional and financial ways just as divorced spouses are. Child support for young children soon evolves into the issue of putting young adults through college. In cases in which the parents are separated or are divorced, it is important to know that it is the custodial parent’s responsibility to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA online document requests financial information like that found on tax returns for the purpose of establishing the amount of financial aid a student qualifies for.
Family law attorneys like the Pennsylvania attorney Sheryl R. Rentz know that clients living through a divorce are facing one of the most emotionally devastating and financially uncertain periods of their lives. Read the rest »
Mistakes to Avoid When Divorcing After Age 50
Deciding to divorce at any age is always a hard choice to make and a difficult experience, but getting divorced over the age of 50 can be especially complicated and can be filled with pitfalls and rules that younger couples may never have to consider. According to a SmartMoney.com news report, the overall divorce rate has decreased slightly over the past two decades, but data from the National Center for Family & Marriage Research at Bowling Green State University reveals that the rate for couples over 50 has doubled.
As the stakes are likely to be higher for divorcing couples over 50 for several reasons, such as a pair having more assets like real estate, obtaining a favorable settlement is particularly important. As such, here are some common mistakes for the over-50 set, which may lead to a lower settlement or you having to pay your ex more than you should. Read the rest »
Bankruptcy During Divorce: What You Need to Consider Before Filing
Financial matters are one of the most significant issues that will arise, and need to be settled, in a divorce. Financial problems are certainly one of the leading causes of divorce in the U.S.; as such, managing one’s finances post divorce can often be complicated, and a practical solution for some may be considering filing for bankruptcy during the divorce process to avoid any further monetary troubles. However, there are several important things any Pennsylvanian considering filing for bankruptcy should take into account before making the official decision to do so.
The following are four essential things to consider if you are thinking about filing for bankruptcy during a divorce: Read the rest »
Financial Issues in a Divorce
A couple deciding to end their marriage and pursue separate paths is always a tough and complex decision; however, the number of complicated issues that may arise during the process of divorce can undoubtedly add additional stress to an already challenging situation. As a Pennsylvania divorce financial issues attorney, Sheryl R. Rentz recognizes how difficult the divorce process is for the parties involved and knows that one of the more contentious issues in a divorce may regard the couple’s financial issues.
For any person who has made the decision to divorce, or is already going through a divorce proceeding, here is more information on three potential financial issues that may arise: Read the rest »
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