Perhaps you were headed there anyway.\u00a0 You\u2019ve been unhappy in your marriage for some time.\u00a0 But living in a global pandemic has heightened your awareness and now you\u2019re thinking about divorce. \u00a0 We specialize in financial planning for divorced women.\u00a0 If you live in Oregon, there are several important questions you should ask.<\/p>\n
A divorce is arguably the single greatest event that can change a person\u2019s financial situation.\u00a0 So, before you start the process of divorce, take some time to review your financial circumstances \u2026 today and what they will likely look like post-divorce.<\/p>\n
Put together an inventory of your assets (e.g. home, investments, jewelry, collectibles, etc.) and liabilities (e.g. mortgage, auto loans, educational loans, consumers loans, etc.). Make copies of (or scan and save) all important financial documents.\u00a0 Identify your sources of income.\u00a0 Estimate what how much you will spend after your divorce.\u00a0 Figure out how you will secure health insurance.<\/p>\n
If this process seems a bit daunting, consider work with a CERTIFIED FINANCIAL PLANNER\u2122 (CFP\u00ae) who is also a Certified Divorce Financial Analyst (CDFA\u00ae) and who specializes in financial planning for divorced women.<\/p>\n
Now that you have your finances in order, it\u2019s time to develop an exit plan.\u00a0 Where will you live?\u00a0 It is common for women, particularly if they have children, to want to remain in the family home.\u00a0 That may or may not make good economic sense.<\/p>\n
How will you support yourself?\u00a0 If you are working, is your income sufficient to meet your needs after divorce?\u00a0 Do you anticipate receiving spousal support?\u00a0 What about child support?\u00a0 Or perhaps you have been the breadwinner and will be expected to provide support to your ex-spouse and your children.<\/p>\n
If you have kids, who will be responsible for paying for their education?\u00a0 Divorcing spouses often fail to address this very important and significant expense and that can lead to big problems later.\u00a0 Consider using a 529 educational savings plan to save for education.<\/p>\n
Oregon is a \u201cno fault divorce\u201d state.\u00a0 To explain what that means, we will first consider the opposite.\u00a0 In states which allow \u201cfault divorce,\u201d a spouse can request the court to grant an expedited divorce under certain grounds: cruelty, adultery, desertion, confinement in prison, and inability to engage in sex.\u00a0 Courts in these states may also grant a larger share of marital property or more alimony.<\/p>\n
This is not the case in Oregon.\u00a0 A person seeking divorce in Oregon does not have to have to establish her spouse was somehow at fault.\u00a0 Instead, you can cite a reason such as \u201cincompatibility\u201d or \u201cirreconcilable differences\u201d or \u201cirremediable breakdown.\u201d<\/p>\n
Oregon is also an \u201cequitable distribution\u201d state.\u00a0 This means that property is considered as belonging to the spouse who earned it.\u00a0 The court will divide property between divorces in a fair and equitable manner.\u00a0 This is in contrast to \u201cmarital property\u201d states in which property acquired before marriage is considered separate property.<\/p>\n
Oregon is an equitable division state.\u00a0 This means that you and your spouse each own the income that you earn during your marriage.\u00a0 You also have the right to manage property that is titled in your name.<\/p>\n
However, when you go through divorce assets owned by you and your spouse will be divided.\u00a0 You and your spouse may be able to agree on a division of your assets.\u00a0 If not, the court will divide marital property in a way that the judge considers fair.\u00a0 You should realize that \u201cfair\u201d does not mean \u201cequal.\u201d<\/p>\n
To make sure your interests are properly represented, work with a family law attorney and a CDFA\u00ae who does financial planning for divorced women.<\/p>\n
Getting a divorce can be very costly.\u00a0 If your divorce is contested, you and your ex-spouse may well spend tens of thousands of dollars on legal fees. \u00a0 That will reduce whatever you both walk away with.<\/p>\n
The divorce will also likely result in the division of your investments including brokerage accounts, real estate, busines interests, savings accounts and cash.\u00a0 In addition, the retirement<\/a><\/strong><\/span> accounts that you and your ex-spouse held during marriage are considered marital property and will be subject to division.\u00a0 If these accounts are held in publicly traded securities, such as a 401(k), 403(b), IRA and Roth IRA, it will be relatively easy to value them and divide them.\u00a0 Pensions that provide retirement income must be valued by an actuary and divided by a Qualified Domestic Relations Order (QDRO) written by a lawyer, approved by a judge and administered by the plan administrator.<\/p>\n So, in all likelihood, your savings for retirement will take a hit.\u00a0 But don\u2019t despair.\u00a0 Reset and plan for your retirement.\u00a0 If you need help, work with a CERTIFIED FINANCIAL PLANNER\u2122 (CFP\u00ae) who specializes in financial planning for divorced women.<\/p>\n While it may be tempting to take a DYI (do-it-yourself) approach to your divorce and it is possible in Oregon, that approach rarely works.<\/p>\n If you and your spouse are on good terms, consider a collaborative approach to your divorce.\u00a0 There are family law attorneys who specialize in this type of divorce.\u00a0 In addition to the lawyers (one for you and one for your spouse), there will be a CDFA\u00ae, a divorce coach and child specialist (if appropriate).<\/p>\n If the situation with your spouse is more contentious, but still civil, consider mediation.\u00a0 A good mediator may be able to get you to a palatable dissolution without great cost and in a reasonable amount of time.<\/p>\n If, however, there is a lot of disagreement and the relationship is unhealthy, even toxic, you may be forced to litigate your divorce. \u00a0 This will be expensive.\u00a0 However, you will need a strong family law attorney to make sure you are well-represented and treated fairly.<\/p>\n In all approaches to divorce, consider seeking a CDFA<\/a><\/strong><\/span>\u00ae with experience offering financial planning for divorced women.<\/p>\nWho can help you get through your divorce?<\/b><\/h2>\n
What should you, financially, do after your divorce is finalized?<\/b><\/h2>\n