Common Financial Mistakes Made in a Divorce

1.  Thinking short term
      You will have to make financial decisions that will
      last a lifetime.  These need to be made during a
      period of extreme stress and emotion.  You owe it
      to yourself and your family to look at the long 
      term impact of different proposals over 5, 10, 
      and even 30 years.

2.  Tax implications of spousal support   

       The tax law changed in 2018 and spousal support is
       no longer tax deductible by the payor or taxable
       income to the recipient as of 2019.  If you have a
       pre-2019 divorce agreement and are receiving spousal
       support, it is important to check with your accountant
       to determine if you need to make estimated tax payments.  

3.  Social Security
      You may be entitled to a portion of your 
      ex-spouse's Social Security benefits if you were
      married 10 years or longer.

4.  Retirement plan withdrawals
      You may be able to withdraw money from a
      qualified retirement plan that's been transferred
      to you without the 10% penalty if you are younger
      than age 59 1/2.  Check with your accountant to
      see if IRS Rule 72(t)(2)(C) applies to your 

5.  Qualified Domestic Relations Order
      A QDRO is required to split assets from a qualified
      retirement plan such as a 401(k).  Not all plans
      allow this and it is critical that your QDRO is 
      drafted properly.



Email:  Susan@BVFinancialResources.com 

Phone:  415.439.8811
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