I have completed dozens of financial plans that were gifts - the person paying for the financial plan was different from the person going through the process and receiving the financial plan. Here is what to expect if you are interested in giving (or receiving) a financial plan this year.
Read MoreDon’t wait too long after the honeymoon to dive into your finances as a married couple. Getting married is a “qualifying event”, giving you a rare 30-60 day window to change your insurance elections outside the annual enrollment period. Here is how to start reviewing your policies together as a newly married couple.
Read MoreFinancial steps to take before the wedding.
Read MoreCouples use a variety of methods to manage their household finances. While some prefer to combine everything from the beginning, others are more comfortable, with separate accounts or a combination of joint and separate. Here are a few methods that may be helpful when having a discussion with your spouse about how you will be choosing to manage your household finances going forward.
Read MoreThere is a perfect budget for everyone, but you have to determine what it is for you. Here is what to think about when setting your wedding budget.
Read MoreMy Newlywed clients often ask me about how their credit score changes when they get married. I am sharing some of the typical myths I hear and discussing how your credit score is really affected by getting married or divorced.
Read MoreThese are my top 7 questions you should discuss with your partner before you say "I Do." These questions will help you get clarity on each of your financial situations and explore how you see your financial future together.
Read MoreI asked Cinda Jones, a Certified Divorce Financial Analyst (CDFA) and owner of Divorce Financial Solutions, to help me answer this complicated question. Please note that these answers are general in nature. For answers to any specific questions, it is always wise to consult an attorney in your state.
Retirement Assets (401k's, IRA's, 403b's, etc): Contributions and benefit accrual during marriage are community property and will be divided in the settlement agreement upon divorce. Even if only one spouse is contributing to a plan during marriage, the other spouse is still entitled to half of the value accumulated during the marriage.
Non-Retirement Assets (Brokerage Accounts, Individual Stocks, etc.): Cinda recommends keeping these separate and keeping all records. She says to never throw away mortgage purchase or refi documents, bank statements, investment statements and tax returns. During a divorce, the burden of proof falls to the person who wants to make a separate claim or ask for reimbursement. Surprisingly (at least to me in this digital age), she has found it may be impossible to obtain historical records from financial institutions or even the IRS.
Other situations I see fairly frequently: Gifting from parents to help with a house down payment, an inheritance used to help remodel the joint home and rental properties or businesses that were established before marriage. Cinda cautions that it is very hard to generalize in these situations and the rules may vary by state. Regardless, even if there is a valid separate property claim, the burden of proof falls on the person making the claim so you need to have supporting documents.
Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.
Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.
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