Site search Web search

14 Big Financial Mistakes Not To Make In Your Divorce Planning
 

1. Believing that a 50 - 50 division of property is the same thing as a fair division of property.
    

2. Keeping the house when you can’t afford to.
    

3. Deciding financial issues one at a time instead of understanding how they affect each other.
    

4. Failing to guarantee alimony and child support payments with life insurance on the person who is supposed to pay.
    

5. Failing to make the spouse who receives alimony or child support payments the owner of the life insurance.
    

6. Believing that your settlement must conform to what a judge would order if your case went to court.
    

7. Seeking financial advice from someone whose expertise is the law.
    

8. Failing to include the present value of a pension among marital assets.
    

9. Failing to include transaction costs in the settlement when those costs may be years in the future.
    

10. Using unrealistic assumptions about inflation and investment returns.
     

11. Believing that spending retirement assets before age 59 ½ will always result in a 10% IRS penalty.
     

12. Failing to consider creative financial solutions.
     

13. Failing to ask, "How do I know that I will be financially secure after my divorce?" before signing the divorce papers.

14. Using short term debt (credit cards) for livings expenses while the divorce is in process and not addressing this in the final divorce settlement.

Commonly held assumptions about divorce can work directly against your financial needs.

Securities offered through Sigma Financial Corporation. A registered broker/dealer. Member FINRA & SIPC.

Planning Services offered through Sigma Planning Corporation, a registered investment advisor.

Any information contained on this site does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser licensed in your state.

We do not offer legal advice. All information provided on this website is for informational purposes only and is not a substitute for proper legal advice. If you have legal questions, we recommend that you seek the advice of legal professionals.

IRS Circular 230 Disclaimer: To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.

Asset allocation, diversification and rebalancing do not assure a profit or protect against loss in declining markets. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results.

Investment products, insurance and annuity products:

Send mail to Webmaster with questions or comments about this web site
Copyright © 2009 R & D Financial Services Inc. 2701 Troy Center Drive, STE 255, Troy Michigan 48084
Last modified: 05/11/10