Re-establishing Your Financial Identity During Divorce

April 23, 2018

Many divorces start out rather amicable. When two people decide they will  “consciously uncouple,” there is often a high level of trust as they begin to unwind their lives. However, once you make this decision the process can still take a while. Depending on where you live an uncontested divorce can take from 2 days up to 18 months. In other cases, it may be to your advantage to end the year married for tax filing purposes. The tendency can be to postpone doing things like establishing separate accounts, refinancing the home, closing credit cards, etc. because with such momentous change on the horizon; why disturb the status quo? 

Things can change quickly

Then something happens, like one person gets into a new relationship, and things sour quickly. All those divorce nightmares you heard about can suddenly become a reality if you have financial exposure to someone that sees you as an adversary. This is why it makes sense to start limiting financial exposure as soon as possible once the divorce decision has been made.  

Here are some steps to take immediately and a few tips to consider after the divorce is final. Because there could be long-term legal ramifications to these decisions it would make sense to consult with a family law attorney along the way.  

What you should consider right away

Checking and savings

If all your accounts are owned jointly, you will need to establish new accounts. If you have accounts in your name only already in place then it may make sense to operate in those accounts going forward. You can choose to operate out of a joint account for joint expenses like mortgages and utilities (more on this in a moment) but keep in mind that you will be responsible for any account mismanagement, like overdrafts.  

Credit cards

If you have credit cards in your joint names the best practice is to either close or freeze these accounts. If you have separate accounts but your spouse has a card in their possession as an authorized user, it may make sense to close their card and have the number reissued.  

Your home

If you are in the divorce process and you have mutually agreed that the home would be too much for one of you to keep, go ahead and start the selling process. While that sale is in process it probably would make sense for one of you to stay in the home. That person would be responsible to keep the house staged for showing. It would be ideal to have some written agreement in place outlining how expenses for the residence will be split until a sale occurs or the divorce is final. 

Accounts with beneficiary designations  

Any account where you can change the beneficiary without a spouse’s consent should be updated immediately. Others, such as your retirement accounts, will have to wait until the divorce is final, depending on your state. Be sure to update any POD or TOD provisions on financial accounts and don’t forget any life insurance you have.

Cash flow

As soon as possible, readjust your budget for your new standard of living. This is the perfect time to lay out a spending plan that keeps you on track for your future goals.  

Once the divorce is complete

Beneficiary update part 2 

Now that you’re officially unmarried, make sure you update all accounts that required spousal permission. These are typically retirement related benefits like 401ks and pensions.  

Healthcare and other benefits

Reassess your benefits to make sure they are right fit for your newly constructed household. For instance, you may be in a situation where a lower or higher deductible would make better sense now that you are on your own. 

Estate planning 

Move forward with updating your estate plan for your new reality. Update who would serve as your executor for your estate and who would serve as power of attorney for finances and healthcare. If you have a trust, you’ll want to make sure your ex isn’t named as successor trustee, nor are any in-laws named. You may also need to update potential guardians for any minor children.

Mortgage 

If your spouse is keeping the house, be diligent in making sure the mortgage is refinanced with your name removed. Any mortgage delinquencies will also affect your credit, as my colleague learned the hard way. 

Revisit your spending plan 

Sometimes the financial terms of the separation can change at the last moment. You will need to update budget considering these changes. This is also a good time to review your plan with a financial planner.   

Retirement

Use a calculator to determine if you are still on track for retirement. Also contemplate how your social security benefits can be affected by your decisions going forward.  

Going through a divorce is emotionally and financially challenging. No matter what you’re feeling in the moment, it’s important to make decisions keeping your “5 years from now” self in mind, the person who will look back on this stressful time and sigh with relief. Do what you can to avoid also looking back and wondering, “what was I thinking??”

What I Wish I’d Known Before My Divorce

April 03, 2018

As a guy who has gone through a divorce, I always feel a special need to help those who are about to go through that process or who have gone through it and are in the process of rebuilding. I joke that prior to my divorce, I was on track to retire by 55 and live very comfortably, and after the divorce, I’m on track to retire at 85.  But…I’ve never been happier!

What’s it worth?

Is a smile on your face and a lighter mental burden worth an extra 20-30 years of working? For me, the answer is a clear YES, but so many others wrestle with that question for years before either remaining in the marriage or going through a divorce.

I’ve talked with a number of people recently who are not sure which direction their marriage is going. They wanted some ideas on how to be prepared financially so that they are not devastated or blindsided by things that could happen if the marriage ended in divorce. I always hope that they can work on fixing whatever is wrong in the marriage, but if they go down that path, here are a few things that I wish I had determined in advance:

1. Property values

In my divorce, there was an enormous amount of time spent on arguing about the value of my boat. I lived on it for the first 3-4 years after we ended the marriage and I thought it was worth far less than my ex thought it was worth. Boats are a non-essential item and after the housing collapse, stock market collapse and abysmal economic recovery, boat values dropped substantially. I knew people who bought boats in the mid-six figures and couldn’t give them away during the recession. (Between maintenance, slip fees, gas and insurance, boats are not low-cost items.)

Each spouse should complete (separately, without comparing notes) a financial statement from a court or this net worth & budget worksheet. This will be an important part of any financial settlement and could help identify areas where spouses view things differently. If one spouse has an asset that is valued at $10 and the other has it valued at $100,000, there is an obvious discrepancy here.

Getting it resolved out of court

A resolution to that situation prior to a court ordering an independent valuation can be a major cost saving and can also prevent months and months of delays.  (Delays are costly….trust me on that one!) Similarly, if one spouse has an asset (such as an interest in a family-owned beach house) on their sheet and the other spouse does not, filling out this form can help reconcile the differences prior to mediation or litigation.

2. What is going to happen with the primary residence?

Again, this was an area of contention in my divorce. The smart thing to do financially would have been to sell the house and for each of us to buy smaller places in the same school district. My ex, however, grew up in the neighborhood where the house is located and she was committed to staying there.

My initial thought was that she wouldn’t be able to make that work financially (What do I know? I’m just a financial planner) even with alimony and child support thrown in. She was given 3 years to refinance to get my name off of the mortgage.

When it goes wrong

However, in those 3 years she apparently had some other financial things happen that caused her credit score to drop and she couldn’t get approved for a refinance on her own. So I was stuck on the mortgage, and when she missed mortgage payments, my credit score took a big hit.

That created a problem for me recently when I was applying for a mortgage on my current house. In retrospect, I should have fought harder to make the refinance happen instantly or else sell the house. I was more concerned with not disrupting my kids’ lives than with my credit score and it has caused some longer term irritation.

The house is usually the #1 financial obligation in most marriages, and having a well thought out game plan for what to do with it will save you from headaches down the road. Know what your current costs are and what your future costs will be if you move out of the existing house and either buy another home or rent a place. Americans spend a large percentage of their income on housing, so using a divorce as a way to downsize your housing costs can prove to be a spectacular long-term decision.

3. To litigate or mediate

My ex and I did a full-blown litigation since only one of us wanted to mediate or collaborate. We are all entitled to our opinions and our own decisions, but at times those decisions can be rather costly! If at all possible, working with a mediator or collaborative divorce attorney can be far easier and less expensive than a full-blown litigation. Having a conversation with your spouse (or soon-to-be-ex spouse) about this in a calm setting where you can make clear headed decisions can be a tremendous cost saver.

If you are looking for a mediator, here are some things to consider. And for those who haven’t heard of collaborative divorce, here’s a quick primer on it. Either mediation or collaborative divorce can lead to a far friendlier, more positive and less expensive outcome than traditional divorces that go to litigation.

4. Future expenses

This one sounds simple and maybe basic, but far too many people don’t know what the “day after the divorce” looks like. In working with someone who is just starting the mediation process, we determined that she would not be able to afford her home. She is now considering selling the house and using the equity to buy a small condo that could be paid off in 10 years after the divorce.

She’ll actually be closer to her retirement goals as a single woman than when she was part of a two-income marriage! Using the net worth and budget worksheet to project what life looks like post-divorce will help guide some decisions about where to live, what expenses might need to be minimized, and if there are things that need to just flat out be eliminated. It’s tough to picture this, but it’s worth the effort.

Divorce is costly as it is. Not preparing in advance can only make it more so. If you are in the process of contemplating a divorce or are in the early stages, taking these steps could help you walk through the process with as little damage to your long-term goals as possible.

How Getting Divorced Affects Your Taxes

April 12, 2017

One of the biggest questions people often ask as they’re going through a divorce is how it will affect their taxes. It’s a question worth considering, especially if the process of getting divorced spans multiple tax years where you’ll still be technically married but living apart. The IRS only cares what your marital status is on December 31st. For example, when I was going through a divorce, we had filed by year-end but the divorce was not finalized until late January. That meant that by the time we had to file our taxes for the prior year, we were no longer married, but in the eyes of the IRS, we were for that tax year.

If you’re separated from your spouse but haven’t filed for divorce yet, you may qualify to file as “head of household” if you and your spouse lived apart the last six months of the year and you paid more than half the cost of keeping up a home for your child who lives with you more than six months. This generally means you’ll pay less taxes than if you were to use “married filing separately.” This article goes more into the details of filing jointly versus filing separately. Just know that if you file jointly and then your estranged spouse bails on the tax bill, you’re fully on the hook. In my case, we filed jointly because we both ended up paying less taxes and I personally wasn’t concerned that my ex was committing tax fraud.

The decision could also depend on the rules of your state and how your expenses were paid. If you live in a community property state (AZ, CA, ID, LA, NV, NM, TX, MI or AK) and decide to file separately, you generally would each claim one-half of your expenses on your return. If you do not live in a community property state then each spouse only takes a deduction for expenses he or she actually paid. In other words, if you are making the mortgage payment without help from your spouse, you’ll want to figure out which status realizes the full value of the interest you paid.

Once your divorce is finalized, you’ll want to start from scratch in making sure you’re having enough withheld from your paycheck. Don’t have too much withheld either though. You can use the IRS Withholding Calculator to help figure out what changes you may need to make.

Finally, make sure you understand how maintenance (often called alimony) and child support work for tax purposes. Basically, you can deduct alimony paid but not child support. Likewise, if you’re receiving alimony, you have to claim it as income but not if you’re receiving child support. Who gets to claim the kids as dependents on their tax return is something that should be worked out in your divorce agreement and if you’re receiving a significant amount of alimony, you may need to file estimated taxes to avoid any under-payment penalty. For help with that, it’s best to consult a tax professional for customized guidance.

 

How to Create a Budget After Divorce

January 10, 2017

It’s probably not going out on a limb to say that just about everyone knows of someone who either got divorced or is getting divorced. Over the years, I have worked with several people getting ready to divorce and I find many are unprepared for what life is like financially afterwards.  Going from two incomes to one means an overhaul of your finances and for some, a readjustment of their lifestyle. If you find yourself wondering how to put all of this together after a divorce, consider using the following tips to get you on the right track:

1. Know what money is coming in. Review payments you may be getting or receiving from your divorce and adjust your total income accordingly. Typically, child support does not impact your income tax whereas alimony paid can reduce your income and alimony received counts as income. If you are getting or receiving alimony, you can use the IRS tax withholding calculator to make sure you aren’t paying too little in taxes or giving the IRS a large tax-free loan

2. Know what money is coming out. Create a spending plan to account for how much money you need to have monthly to maintain your lifestyle.  Consider ALL  of your expenses beyond  mortgage/rent, car payments and debts. Typically, the most underestimated and forgotten are auto and home maintenance, groceries and eating out.

If you are not sure where to begin, consider using online tools at your bank to find out how much you have been spending. Most online tools will categorize your spending, so first consider adjusting the categories. Then choose a 30-90 period to see what your average spending looks like.

3. Know what the difference is. Subtract your income from your expenses to gauge if you can afford your current lifestyle. If you have a surplus, review your numbers to make sure they are realistic, you have a category for savings and you have a buffer (10% or greater) to account for unexpected expenses (better known as Murphy’s Law).

Also review how much you are spending in each category. For instance the guidance is for household expenses to take up no more than 25%-35% of your net income and auto expenses (car loan, insurance, gas and maintenance) should be no more than 20% of your take-home pay. If you are spending more in those categories, you may not have the cushion to lessen the blow of an unexpected expense. If you have a deficit, then you may not be able to afford your current lifestyle and expenses may need to be cut. This could mean downsizing to a less expensive home, a less expensive car and in some cases, a less expensive neighborhood.

Divorce is hard enough on its own. You don’t want it to cause too many financial problems as well. Taking the time to review your expenses after a divorce can go a long way into making the transition process easier.

Should You File Your Taxes Jointly?

November 16, 2016

Post updated 1/17/2018

I remember the first year after my brother got married, when he called to ask me a tax question and shared that he and his new wife had decided to file “single” status because that way they both got refunds. I felt like a real jerk crushing their refund joy when I told them that they don’t actually get to choose. Once you’re married, your choices are narrowed to “married filing jointly” or “married filing separately” (or MFJ versus MFS).

Generally speaking, the government wants married people to file joint returns, so they make it pretty unattractive to file separately (although that’s gotten better with the new tax rules), even though the “marriage penalty” is real when it comes to tax brackets and other limitations. For most married couples, it makes the most sense to file jointly. But there are some instances when it might make sense to file separately: (You can switch from year to year.)

One spouse has high medical expenses but a low income: This would make it easier for the doctor bills to exceed the 7.5% threshold necessary to deduct medical costs.

One spouse explores more creative methods of tax avoidance: When you sign a joint return, you’re accepting legal responsibility for everything on the return. If you know your spouse takes liberties with tax deductions, you may want to file separately to protect yourself if the IRS comes calling. There is such a thing as innocent spouse relief, but you have to prove you actually didn’t know of the questionable practices to qualify.

You’re heading for single status anyway: Your filing status is determined based on your marriage status on December 31st. If you’re in the process of getting divorced, but it isn’t final by the end of the year, you may choose to file separately to avoid being tied together by tax issues after the marriage is over. When I got divorced many years ago, we filed in December, but the divorce wasn’t final until January. We filed a joint return that last year and agreed to split the refund, but that only worked because we still had a modicum of trust with each other on financial issues.

However, most couples choose to file jointly as there are many drawback to filing separately:

Tax brackets may be less favorable. MFS marginal brackets have taxpayers jumping up to higher brackets at lower incomes than MFJ taxpayers.

You may have lower deductions and credits. If one spouse itemizes, both have to even if one spouse would receive a higher deduction using the standard amount. Spouses split joint deductions like mortgage interest for a mortgage in both names, but charitable deductions and other itemized deductions go on the return of the spouse that paid them, which could leave a spouse with very few itemized deductions claiming less than they’d get as a single taxpayer.

If you file MFS, you also cannot claim many credits and deductions such as the earned income credit, adoption expenses, child and dependent care and education credits, and the student loan interest deduction. In addition, the child tax credit is reduced and you can only deduct $1,500 of capital losses per year versus $3,000 for MFJ.

For most people, filing jointly will make the most sense. The best way to decide would be to figure out your taxes both ways. Many tax software programs do this analysis for you. Then file according to the method that leads to the lowest overall tax bill for your family.

 

 

Rebooting Your Career After a “Gray Divorce”

November 15, 2016

I was recently at a conference talking to a group of women. The conversation was about everything from movies and books to kids and then it turned to marriage. What surprised me about the conversation was not how many women were divorced (we all know that the divorce rate is high in our country) but the age of the women who were recently divorced or facing a divorce. Almost every woman at my table of 20 who was recently divorced or about to be divorced was about 50.

Many were either stay-at-home wives or worked part-time jobs making little money. The reality of being divorced meant they now had to look for work that was not only satisfying but could meet their expenses, and in some cases, help them save for retirement. As these women found themselves job hunting after being out of the job market for decades, I offered the following suggestions on what to look for before accepting an offer:

1) A generous 401(k) match and/or a pension program: Get as much help as your employer can give you to save for retirement, especially if you feel you are behind in savings. Although most pension programs are going the way of the dodo bird, there are still organizations like the federal and state governments  that pay a pension. The other is to look for companies with generous 401(k) matching programs. Consider using this article as a starting point to research potentially generous 401(k) plans and verify the information using Glassdoor, Vault or any other website that has employer information and/or employee comments about the company.

2) An extensive benefits package that you can take with you when you retire: Benefits like long term care, life and health insurance while you are working and after you retire (if offered) can be extremely valuable. In most cases (not all), long term care insurance is particularly cheaper when bought through an employer as opposed to an insurance salesperson. In some cases, you can even get it with a less extensive underwriting process.

3) A generous vacation schedule: Most people do not think about it, but you want time to recharge and see the world without having to fight your employer. Look for employers with generous vacation/time off schedules. As they say, time is money.

4) Good opportunities in your career: A company may have the best employment opportunity, but if it is not in the field you are in, you may not experience the full benefits. Consider the potential career opportunities in your field from your potential employer. Explore the job training and tuition reimbursement programs and how committed the company is to helping you develop professionally. Also consider that it may be better to temporarily take a lower paying job if it advances you in the long run.

There are lots of websites to help you on your search. Look at articles such as Forbes‘ “The Best Places to Work in 2016”  or similar articles in your local newspaper. Employees are not shy talking about their companies, both good and bad. Go on websites like Glassdoor,  Vault and Monster  to get insider info about the company. You can even ask questions as many people are happy to reply.

Lastly, do not discount the power of personal connections. Talk to your friends and family about your job search and try to get insight about potential employers. The work you put in at the front end will go a long way to finding a satisfying career.

 

 

 

When “None of the Above” Isn’t an Option

June 17, 2016

As I type this, Hillary Clinton is giving a speech after winning the California and New Jersey primaries and becoming the Democratic party presumptive nominee. This is merely weeks after Donald Trump gave his speech after wrapping up the Republican primaries as their presumptive nominee. Most people I’ve talked to and seen commenting on my social media accounts wish that they had a “D – None of the above” option like there is on standardized tests.

I don’t think I’m going out on a limb by saying that, as a country, we should be able to do better than these candidates.  A lack of great available options isn’t just an issue in politics though. It’s a problem in the financial lives of many people that I’ve talked to recently.

If you are confronted with a bad situation, there are some things you can do. First, try to think of as many potential solutions as you can. Consider consulting with people you know and trust or an unbiased financial planner for ideas. You might be able to come up with a better solution this way. If not, make a list of pros and cons for each potential solution and prioritize what’s most important to you.

For example, one person I talked with was in a bit of a financial jam, and my goal was to help her find a way to a better place.  She had recently gone through a divorce, and her budget included receiving child support from her ex-husband. He has chosen to change jobs and now works “under the table” for cash so that it is not reportable. If it’s not reported, she can’t collect, and now her living expenses exceed her income.

The child support would have been deposited into savings for her kids’ education and for emergencies. Instead, she taps into savings for about $100/month to maintain her current lifestyle. We talked through a few options:

  • Sell the house and downsize. Reduce the mortgage by several hundred dollars per month so that there is wiggle room. (She just refinanced when she bought the ex’s portion of the house, so a simple refi is not an option.)
  • Get a part time job and work when the kids are with their dad in order to generate some income to cover the gap.
  • Cut the cord and get rid of her high end cable package.
  • Get rid of her car with a $500/month payment and get something less expensive.
  • Hire an attorney or investigator to track her ex-husband’s financial life and then go to court in order to get child support dollars flowing in.
  • Suck it up, hope for the best and continue to grind forward as is.

Each option has its downsides and she viewed all of them like many Americans are viewing Trump v Clinton. But just like in politics, there is no perfect solution, and trying to find one can prevent you from choosing a good one or at least the “least bad” one. I don’t know which option she’ll end up picking, but she’s now in a better position to make a decision. After all, sometimes making no choice can be the worst choice of all.

 

 

How to Manage Financial Stress in a Chaotic World

June 03, 2016

Periodically, there are times I look at my daughter’s life and think it’s a great time to be her. Right about now is one of those times. She is doing a study-abroad session in Italy, and since I travel for work a lot and know my way around airports, she asked me to take her to the airport.

We live in Baltimore and we use BWI as our “home airport” so I am there quite frequently. I knew that her flight was booked from Philly instead of Baltimore, but when I put the trip into my calendar I simply typed “Take Jordan to Airport” in Outlook about two months ago. As time moved forward, the Philly part slipped my mind, and when I put her bags into my car, I immediately headed toward BWI. 

As we got to BWI, my daughter’s face went white, and she gasped “Why are we here?” (She had been texting her classmates and making sure that she had packed everything.) It was at that moment that I realized my error.

I needed to get to Philadelphia and FAST! I fired up my Waze app, drove well in excess of the speed limit and got her to Philadelphia well in time to get through TSA and customs well for her flight. It was not a stress-free endeavor, but all’s well that ends well. It ended well, so now I’m looking back wondering if there was anything that could have prevented my “stupid human tricks” or a lesson to be learned.

Once she was safely at her gate waiting to board her plane, we had a chance to recap our crazy mini-adventure and think about how it could have been a quicker and less stressful event. She could have reminded me that it was Philly because she knows I sometimes go on “auto pilot” because of a busy calendar. I could have been more descriptive in my Outlook calendar and done a quick check-in with her before leaving the house, saying “we’re off to BWI…correct?” Just a little bit better communication could have prevented a mini-crisis.

I see this with couples that I talk to on a regular basis. They are both working hard to earn their incomes, raise their kids and plan for the future – but sometimes things get missed in the chaos that is life in today’s world. Financial stress is one of the leading causes of marital disagreements and when it becomes too much to bear, it can frequently lead to divorce.

When one spouse handles the financial affairs and the other is completely disinterested and uninvolved is when I see the stress level being the highest with couples. The financial manager often feels unsupported and the financially uninvolved partner can feel powerless or at the mercy of the financial manager. There’s a simple way to avoid that. Weekly, bi-weekly or monthly financial meetings are a great financial management tool, can be done quickly and can keep two people on the same page.

Here’s all you need for a successful family financial meeting: a calendar (I love the ones from the mall kiosks that you see every year around the holidays), 10 minutes and a pen. Since I’m single, I schedule a financial meeting with myself every other Saturday. I pull out my calendar and using June 2016 as an example, will write my “Payday” on the 15th and 30th. I’ll write “mortgage” on the 1st, “utilities” on the 22nd and every other recurring bill that I have on the date that the bill is due. There are sometimes random bills that come up and aren’t in my monthly budget like car insurance, which I pay quarterly or doctor bills if one of my kids has had a visit recently.

When I see it all laid out on my financial calendar (I don’t put anything else on that calendar and I use my phone for all of my other calendars), it helps me stay on track. I’ve shown this system to some of my married friends and some couples that I’ve worked with to help them solve their financial stress. When they see how easy it is, they promise to try it.

I’ve heard from quite a few couples that both partners, the financial manager as well as the uninvolved one, feel much lower stress levels and the “fights about money” go away or are tremendously reduced after implementing this system. For anyone who is struggling with how to reduce the level of discord around your financial life, try this easy way to engage either yourself or your partner in a discussion about money. A calendar, 10 minutes and a pen are WAY less expensive than a divorce!

Are You Lip Syncing Through Your Financial Life?

February 05, 2016

I’ve recently become a huge fan of the show Lip Sync Battle. Seeing celebrities “sing” the hits of their favorite artists while doing some very entertaining dances is absolutely hilarious. While it’s one of my guilty pleasures and has led to some world class laughter (“The Rock” as Taylor Swift, Anne Hathaway as Miley Cyrus, Channing Tatum vs. Jenna Dewan Tatum), in one of my odd “connect the dots” moments, I realized that I was having a conversation with someone who was lip syncing her life. Continue reading “Are You Lip Syncing Through Your Financial Life?”

5 Myths About Social Security

July 27, 2015

I’m going to unofficially declare last week as National Social Security Awareness Week as a result of the questions I got in a series of workshops that I facilitated on retirement planning. I don’t think a week of Social Security actually exists on the calendar but with all the confusion surrounding Social Security there probably needs to be one. Here are some common myths I’ve heard: Continue reading “5 Myths About Social Security”

It’s All About Perspective

March 27, 2015

Perspective can sometimes be situational. Our perspective today can be very different than it was a decade ago. I have a friend struggling with her birthday right now. She is about to turn an age that ends with a 0. Continue reading “It’s All About Perspective”

Don’t Turn Divorce Into A Costly Donation

March 23, 2015

When marital relationships come to a messy end, it can be difficult for the couple to find anything to agree on. One thing that men and women going through divorce generally do agree on is that arguing about money is a top predictor of divorce. Research suggests that arguments about money early during a relationship increase the likelihood of divorce. Many individuals who have gone through a divorce can attest to the fact that money quarrels don’t always end after the divorce proceedings have ended. In today’s blog post, my colleague Paul Wannemacher explores the financial impact of this emotional life transition. Continue reading “Don’t Turn Divorce Into A Costly Donation”

It’s Time For Changes to Payday Loans

March 06, 2015

In what is a positive development for many Americans, not to mention society at large, there are some changes coming to the world of payday loans. The CFPB (Consumer Financial Protection Bureau) is rolling out some new regulations for the short-term loan industry that can only be viewed as a good thing by the borrowers. (Maybe not so much for the owners of the lending companies, though.)  Continue reading “It’s Time For Changes to Payday Loans”

Are You On a Crash Course to Disaster?

January 23, 2015

One of the more interesting stories I’ve seen recently in the world of sports is about a guy named Rob Konrad, a former NFL player, who fell off his boat and swam 9 miles to shore.  It took him about 16 hours, he had hypothermia, and he couldn’t walk but at least he survived the ordeal. Along the way, he was circled by a shark and had to fight waves, wind and the dark in order to make it home safely.  Continue reading “Are You On a Crash Course to Disaster?”

Don’t Let Debt Destroy Your Marriage

December 19, 2014

Sometimes when I meet with someone to walk through their finances, I get the distinct impression that our conversation is going to have a significant impact on their life. I had one of those conversations recently with a couple who was very seriously considering separating and divorcing. One of the biggest factors in the stress and tension that is damaging their marriage is how they deal with money or…don’t deal with it.  Continue reading “Don’t Let Debt Destroy Your Marriage”

Social Security Myth #5: You Only Receive A Spousal Benefit If You Are Married When You Retire

October 22, 2014

In my last blog post, I addressed the myth that Social Security benefits are based on an accumulation of assets and that collecting a spousal benefit would reduce the amount a spouse would otherwise be eligible to receive. This brings up another myth that is circulating out there that suggests that one has to be married in order to collect a spousal benefit. That is not the case. Continue reading “Social Security Myth #5: You Only Receive A Spousal Benefit If You Are Married When You Retire”

How to Get Out of the Divorce Sinkhole

March 15, 2013

Having spent many afternoons on a golf course and being of very limited ability in that sport, I have had had my ball land in some very interesting places.  None of them would be as interesting, though, as the golfer in this story.  His ball, along with his body, ended up in an 18-foot deep sinkhole. And, he got a separated shoulder in the fall.  I’ve had bad days on the golf course, but never THAT bad!  The good news is that he was pulled from the hole and his shoulder will heal very quickly! Continue reading “How to Get Out of the Divorce Sinkhole”