Get a Smart Divorce Blog

As I work with my divorcing clients, I am keenly aware that they are vulnerable. A prime example of their vulnerability is the all too frequent desire to keep the marital home. This is usually the wife and mother who want s to keep continuity for her children. The decision makes sense from an...…

Purchasing a Home During Divorce Process I do not encourage my clients to buy a house, condo or townhouse etc. during the divorce or within the first year of the divorce. The reason for this is simple. Research has shown that divorce is the second most emotionally traumatic event you will...…

If you are divorcing in TN and have children, remember that TN divorce laws state that child support payments will end when a child turns 18, or graduates from high school. If you are receiving child support, just because your child is at college does not mean that expenses for that child are $0...…

Many divorces involve selling the marital residence or transfer of it from one spouse to the other. In order to remove a spouse from a property deed post divorce, a quit claim deed must be filed. Your spouse must agree to the transfer. You cannot remove them from the property deed without their...…

If you are divorcing in Nashville, TN and beyond, you need to understand if you are the primary card holder or just the authorized user for any credit cards you are currently using. You can obtain this information by calling the credit card company directly (their phone number is on the back of the...…

A collaborative practice divorce has been getting some good publicity recently in Nashville, TN. Did you see the article in the Tennessean regarding the collaborative divorce of Bill Frist? This type of divorce has many advantages over a typical litigated divorce primarily because a collaborative...…

If couples hope to achieve a fair divorce settlement that is acceptable to both spouses, thinking outside the box is essential. I've never had the exact same settlement for any of my Nashville clients because each family is unique and so are the solutions to their problems. A settlement that I am...…

Divorce stock options is the topic for this blog. Stock options frequently vest over 3–5 years. This means that the options are vested one third in year one (each spouse would be vested one sixth), two thirds in year two (each spouse would be vested one third) and fully vested in year three (each...…

Collaborative divorce, is it right for your situation? That depends on many factors. A key factor is, the amount of money you want to spend on your divorce. A collaborative divorce is expensive. Plan on spending at least $25,000 if you take this route. It is often far more than this amount. If you...…

Divorce and paying for college are topics I routinely discuss with my Nashville and Brentwood, TN clients. But, we discuss far more than just college expenses. There are college search trips, SAT prep classes, professionals to help your child with their essay, application fess and many more you...…

Divorce and children are a topic I frequently discuss with clients in my Brentwood, TN office.  I have found it is critical to consider what is best for the children.  If the parents focus on that issue, the parenting plan falls into place.  Is it best for them to be on a 7 days off, 7 days on...…

I met with a client in my Brentwood office today and discussed his ability to get a mortgage.  He spoke with a mortgage professional yesterday and that person told him he would qualify for a mortgage.  The numbers din not look right to me.  So, I called the mortgage contact.  They had...…

A divorce settlement needs to look at the short-term and long-term financial impacts.  In the short term, what can the husband afford to pay in child support and or alimony?  What are the monthly expenses (including taxes) for both spouses and the children?  What amount of alimony does the wife...…

Divorce and alimony are topics I discuss with clients every day.  It is really very straight forward and is all about the numbers... Attorneys tell me the main issues are how much does one spouse need and what is the other able to pay.  So, it is essential that both spouses have a solid...…

Financial issues of divorce need to be clearly understood by both spouses to ensure a fair settlement.  Think about this... divorce is 45% emotional, 45% financial and 10% legal... Find this suprising?  Perhaps you are new to the world of divorce?  Granted, every case is different but, divorce...…

Divorce financial fears in Nashville / Davidson County and Brenwood / Williamson county are common.  Having some finacial fears during this time is to be expected because intelligent people understand the stakes are high.  Considering the short and long-term impacts as well as tax consequences of...…

If you are considering divorce, you will have to decide how to spend your money on professional fees.  For example, a client called my Brentwood office about a month ago and said she needed help understanding her expenses so she asked her CPA to help her.  I asked her what experience her CPA had...…

Divorce and taxes is a topic I discuss with clients on a daily basis. The recent tax changes have significant impacts on divorce settlements. While understanding all of the changes can be overwhelming, below are common tax issues I've been explaining to and discussing with clients and their divorce...…

My Nashville divorcing clients frequently ask questions about dividing retirement funds.  Attorneys tell me marital property including retirement funds are typically divided 50 / 50.  If part of the retirment funds were earned prior to the marriage then, part of the funds are premarital funds...…

Divorce and liquidating retirement funds are frequent topics in my Brentwood and Nashville offices.  If you withdraw money from your individual retirement account before age 59 1/2, you will generally have to pay a 10 percent early withdrawal penalty in addition to income tax on the amount...…

Divorce and children's expense are a topic that many divorcing couples fail to adequatley address.  Why?  Because they are so distraught and distracted that they are not thinking clearly.  Because they likely have not been divorced before, they don't know what they dont know.   For example, I...…

Divorce and dividing stock options are topics I frequently review with clients in my Nashville and Brentwood, TN offices.  It is important to understand the stock options are tied to the spouse who is emplyed by the company issuing the options and typically cannot be transferred to the other...…

Divorce mediation and alimony are topics I review daily with clients in my Brentwood, TN office. It is not a mysterious topic... Attorneys tell me alimony is determined by 16 factors (length of marriage, education of spouses, earning potential, contribution to the marriage etc.) but the two key...…

Nashville divorce mediation typically includes both spouses hiring an attorney. With two attorneys charging $300+ per hour and having two retainers of $3,000+ each, the case starts off expensive and fees increase quickly. Most divorcing spouses do not understand their case will likley not be...…

Getting a family business valued is common in divorces in Nashville. There are three methodologies to value a business - The asset approach (What assets does the business own and what are the values of those assets?), the income approach (How much annual income does the business generate?) and the...…

Divorce and tax issues are topics we frequently discuss with our Nashville and Brentwood clients because the laws are always changing. For example, as of January 1, 2019 the tax laws have changed and alimony is no longer tax deductible to the payer. Another new change is taxes are not owed by the...…

Alimony is a hot divorce topic regardless if you are in Nashville, Brentwood or Franklin Tennessee.  Calculating potential alimony is based on math... What does one spouse need and what is the other spouse able to pay?  Focusing on a very detailed expense worksheet is the best way to determine a...…

If you live in Nashville and are considering divorce or mediation, focus on the finances. Why? Because divorce is 45% emotions, 45% finances and 10% law. You really need to get your finances organized and understood before you consult an attorney. Why? Because attorneys tell me they cannot give...…

Today, divorce mediation client in my Brentwood office asked me this question, "Do we divide the assets and debts as of the date of divorce or the date we separated?"  Since this is a legal question, I referred them to discuss this with their attorney. But, I also asked them, "What did they think...…

If you are preparing for divorce mediation in Franklin, Nashville, Brentwood or some other town in TN, you will prepare for mediation the same way.  First, get a list of assest and debts.  Then work on a parenting plan and child support worksheet.  Finally, gather information on your monthly...…

My Brentwood divorce mediations often have fishy finances. It is imperative the financial topics be thoroughly understood by both spouses before a settlement can be finalized. For example, I was talking with a husband client today and he said he felt he should pay his wife $50,000 for her share of...…

If you are considering divorce mediation in the Nashville area, remember to address tax issues. Since the financial issues of divorce are 45%, it is critical that you pay attention to the numbers. Do not assume your attorney will understand or explain the tax issues to you. Consider such questions...…

Divorce settlements should be as individual as your family.  One size does not fit all or most when it somes to creating a property settelment or parenting plan.  Don't assume the settlement your neighbor or cousin received is what yours should resemble. It is fine to talk with friends about...…

This week I have had three clients in my Nashville and Brentwood / Franklin offices ask me how to divide RSUs or restricted stock units in a divorce settlement.  So, this blog will focus on RSUs.  An RSU or, restricted stock unit can be given to an employee as part of their annual compensation...…

I was meeting with clients in my Brentwood office today and we discussed what to do with the marital residence.  Because they have three children, they would like to keep the house.  But, they could not afford to both have a residence large enough for three children.  So, they came to a...…

Clients in both my Brentwood and Nashville offices have recently told me they want a collaboratie divorce.  When I ask them what that means, they tell me they want to work together with their spouses and agree on a settlement.  Some professionals refer to this as a collaborative divorce while...…

Divorcing parents are frequently concerned about how their child or children will spend time with each parent after the divorce is final.  The document that outlines the time spent with each parent is called a parenting plan.  This plan also covers which parent will pay for the children's health...…

I received a phone call this morning from a man who has been thinking about divorce for about 6 months.  He and his wife have agreed their marriage is no longer working.  They have both reached out to divorce attorneys and were not pleased with the aggressive, take no prisoners approach from the...…

Today, a divorce client in my Nashville office told me she wants to keep the marital residence and asked me if she should have the mortgage refinanced into her name only.  My answer was... it depends on a few things: 1.  Is the mortgage currently jointly titled with your spouse? 2.  Do you...…

A client came into my Belle Meade office this week and told me his attorney said the best way to protect himself in his divorce was to  hire an aggressive attorney.  I disagreed with this client and suggested the best way to protect himself was to first educate himself about the financial...…

I was in my Brentwood, TN office yesterday and a client asked me about alimony and how it was determined.  I told her it is all about the numbers and gave her my expense worksheet.  She looked at me puzzled and said, "I thought alimony was a formula".  I explained that child support is a formula...…

I participated in a typical divorce mediation this past week (to provide financial analysis) and was amazed at the tremendous cost.  By typical mediation, I am referring to each spouse having an attorney and then an attorney mediator communicating between the attorneys.  During this one day, the...…

A divorce client came into my Brentwood, TN office today and told me their friend is getting a divorce and her attorney recommended she hire a forensic accountant to review the business tax returns.  So, my client said she also wanted to hire a forensic accountant.  I explained to my client that...…

If you are divorcing and own a start-up business, you need to understand your options for valuing the business.  The most important point is the value a start-up business can be very different from the value of a business that has been incorporated for 20 years.  Many times a young business has...…

A potential client who is considering divorce met with me in my Brentwood, TN office this morning.  She told me her most significant concern is worring about having to go to court.  I explained that less than 5% of cases actually go to court.  Additionally, attorneys tell me it costs at least...…

I received a phone call today in my Brentwood, TN office and the caller asked about collaborative divorce.  They read something on-line and wanted more information.  Here's is summary of the collaborative divorce process. A therapist coach, financial professional, attorney for the husband and...…

During divorce, living in the same house is very stressful.  Before one spouse moves out, it is recommended they both carefully review the family expenses to ensure there is sufficient cash flow to afford 1st/last months rent, two cable bills, electric bills and the other expenses. I met with a...…

A divorce client in my Brentwood, TN office asked me today about how to divide the furniture and furnsihings.  His wife told him she wanted to keep all of the furniture and furnishings and she did not have to pay him anyhting for these items.  He in turn said he did not want any of the furniture...…

  As a parent, I understand at age 18, a child is typically not financially independent from their parents.  I find it strange the laws of TN state that child support payments end when the child is 18 and has graduated from high school.  It is important to understand child support payments DO...…

During a divorce, the marital residence is often the largest asset to be divided and so it is important to spend time confirming the numbers and understanding the details.  The equity calculation for the residence requires the spouses agree on the value of the property.  The value can be...…

If you are divorcing, you may want to keep the marital residence.  If the jointly titled mortgage will have to be refinanced into your name, will you qualify for a mortgage?  Talking to a mortgage professional should be your first step. If you qualify for the mortgage refinance including the...…

Although TN laws do not require child support after a child has turned 18 and graduated from high school, most children still require financial support past 18, during college and graduate school.  Rather than assuming one parent will of course pay for college etc., I encourage divorcing parents...…

A divorcing client came into my Brentwood, TN office today and showed me a draft of a Parenting Plan from his divorce attorney.  The following items were incorrect and are frequently wrong in the Parenting Plans I review for clients. 1.  The child support calculation did not include the correct...…

A client came into my Brentwood, TN office today and asked if her husband's annual bonus will be included in the alimony calculation.  I explained his annual salary will be included.  However, it is important to understand, her husband will pay taxes on his bonus so, the net bonus is considered...…

A client came into my Brentwood, TN office this morning and asked to discuss options for paying off their marital debts.  Paying off the debts meant both spouse's monthly expenses will be reduced and both spouses will be able to start their new chapter with less financial baggage weighing them...…

If you are divorcing and have children, it will be important for you to communicate directly with your spouse regarding parenting time, how expenses for the children will be paid and many other topics.  While this is likely a difficult time for both spouses, you know your children better than the...…

During the divorce process, emotions are heightened and it can be difficult to focus.  However, it is only after those divorcing really focus on the numbers that an acceptable settlement can be achieved. For example, a divorcing couple was in our Brentwood, TN office this morning and they said...…

A client came into my Brentwood, TN office today and told me she was worn out by living with her husband and she just wanted to move out today, this minute! While her frustration is understandable, I remined her that there was not enough cash in the bank to pay the bills for the marital residence...…

A client came into my Brentwood, TN office today and mentioned he wanted to pay his wife lump sum alimony rather than paying her alimony over time.  He told me he just wanted to get the payments behind him.  I can understand his position...  We discussed what amount of monthly alimony he would...…

A client came into my Brentwood, TN office last week and told me what they wanted in both the settlement and the parenting plan.  Their requests were unreasonable and I explained this to the client.  A good settlement should result in both spouses getting most of what they want and understanding...…

A potential client came into my Brentwood, TN office today and asked me if she needed a collaborative law attorney.  My answer was, "What is a collaborative law attorney?".  She looked confused and replied, "I don't know.  I read an article on the internet and it mentioned collaborative law. ...…

A potential client came into my Brentwood, TN office today and mentioned they did not have children but, they did have 3 dogs.  She asked if pets are considered in a settlement.  Pets should indeed be included in settlement discussions and it is important to consider the needs of both the pets...…

A potential client called my Brentwood, TN office this morning and told me their divorce was bery simple and they wanted me to handle their case.  I asked if they had considered the federal tax issues... They had not considered if there were any tax issues... My reply was, "There are alwasy tax...…

A divorce client came into my Brentwood, TN office today and explained she wanted to keep the marital residence in the settlement.  She told me she had calculated the total amount of money paid towards the mortgage during the marriage and she wanted to pay her husband half of that amount for his...…

A client came into my Brentwood, TN office today and announced "I want to receive A, B and C in the divorce settlement and don't care what my husband wants."  While her attitude is not uncommon, it is unhelpful... This kind of thinking typically results in a battle with both spouses loosing and...…

A client came into my Brentwood, TN office recently and said they wanted to get their divorce done as squickly as possible.  They insisted on filing the divorce complaint immediately despite me encouraging them to wait until we sorted out the finances.  The attorney rushed the divorce complaint...…

A client came into my Brentwood, TN office today and let me know her and her husband would like to co-own the martial residence for at least two years post-divorce as she needs two years of earning history to qualify for a refinance of the mortgage.  She stated, "My sister told me this is not...…

A client came into my Brentwood, TN office today and let me know her spouse's mother had died.  I suggested we take a break from the divorce until her spouse was ready to move forward.  She agreed. If you are divorcing and experience a traumatic family event, I suggest you put the divorce...…

A potentail client came into my Brentwood, TN office this morning for an initial consult to understand our collaborative divorce mediation services.  Like most people divorcing, they were confused about the first steps of divorce.  I explained that because divorce is 95% emotions and finance...…

A divorce attorney referrred their client to our office because the financial issues were beyond the attorney's knowledge base.  My task was to discuss the vested and unvested stock options and come up with a plan to divide these assets.  The solution was really quite simple.  I explained how to...…