The Value of Perspective During Divorce

 

Have you ever given thought to the value of perspective that each member of the professional divorce team brings to the table?

Every divorce is different. Each having it's own set of assets, emotions and narrative. The strength and knowledge of each professional involved can have a major impact on the outcome.

Perspective is a way of regarding situations, facts, etc., and judging their relative importance. Perspective is the capacity to view or think about a situation or problem in a wise and reasonable way.

Certified Divorce Lending Professionals (CDLP™) have a completely different perspective when looking at a divorce settlement agreement and participating in the actual settlement or mediation process. CDLP™s don't just look at the divorce settlement agreement and how it applies to the borrowing spouse's mortgage application. They have a much wider viewpoint and understanding of the entire process - a deeper and stronger perspective of the overall impact divorce...

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Protecting Yourself from Financial Identity Theft after Divorce

 

During a marriage, the financial identity of both spouses may become comingled due to joint bank accounts, joint credit cards, co-mortgagees, and more. Protecting yourself or your clients from financial identity theft during and after the divorce is final should be a top priority.

According to the Federal Trade Commission, identity theft falls into six major categories:

  1. Employment or tax-related fraud (34%). The use of one’s social security number and other personal information to gain employment or file an income tax return.
  2. Credit Card Fraud (33%). The use of someone else’s credit card or
    opening a new credit line in someone else’s name.
  3. Phone or Utility Fraud (13%). The use of someone else’s personal
    information to open a wireless phone or utility account.
  4. Bank Fraud (12%). The use of someone else’s personal information to take over an existing financial account or opening a new account.
  5. Loan or Lease Fraud (7%). The use of someone else’s...
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Dividing Property after Divorce with a 1031 Exchange

 

Real Estate, whether it is the marital home or investment property, is one of the greatest assets owned by married couples. Typically in a divorce situation, the property is sold or retained by one party, and ownership is transferred solely into their name. 

When real estate property owned is sold, each party may be subject to capital gains tax. Depending on the value of the property at the time of the sale vs. the initial acquisition cost plus improvements, it may be wise to speak with a financial planner to weigh all options such as a 1031 exchange. (IRC Section 1031 – like-kind exchange)

Per IRS rules, a 1031 like-kind exchange provides an exception that allows you to postpone paying capital gains taxes if you reinvest the proceeds from the sale of an investment property (the “relinquished property”) into a similar property (the “replacement property”) as part of a qualifying like-kind exchange. The seller has 45 days to identify a...

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