107: What Are Commonly Overlooked Money Issues When Splitting Assets in a Divorce?

Whether you’ve experienced it yourself or have seen it happen to someone close to you, you’re likely to agree that there aren’t many life events that are more emotionally taxing than divorce. Two lives that have been bound together — by law and through shared experiences — are severed, and with that comes the necessities required to complete that break. The emotional component, however, often makes every step in the process as contentious as it can be, with both parties not only going to the mat to look after their own best interests but sometimes — let’s face it — also inflicting emotional and financial harm on each other.

In a “50/50” state like California, where assets are required by law to be divided equally among spouses, it would seem like a cut-and-dry job, and in some respects, it is. But not all community assets are that easy to divide. The most obvious example of this would be the family home. You’re not likely to find many divorced couples willing to live under the same roof with spatial boundaries cutting the residence in half, and, of course, literally dividing a house in half would render both halves unlivable.

In reality, arriving at an equitable division of assets after a divorce is a very complex undertaking. There are plenty of considerations to be made — many of which wouldn’t even be on the average person’s radar. But, if you’re contemplating divorce or want to provide some insight to someone close to you who is, you’ll definitely want to tune into the latest episode of Absolute Trust Talk, as Kirsten welcomes Glenn Bittner, who is not only a financial advisor with Pacific Wealth Planning but also a Certified Divorce Financial Analyst. Glenn offers a unique blend of practical knowledge and experience that allows him to view the emotionally fraught issue of divorce from the rational, financial side. In addition to his CDFA® certification, Glenn obtained his FINRA Series 6, 63, 65, and 7 licenses. As a former mathematics major, he has a penchant for calculating the present and future valuations of a wide array of financial assets. He was born for this role!

In this episode, we’re going to discuss:

• The importance for Glenn and any CDFA® is to ask the right questions and learn essential information about both parties in a divorce proceeding.
• What a Qualified Domestic Relations Order (QDRO) is, its role in a divorce proceeding, and why it’s sometimes best to avoid a QDRO altogether?
• Why dividing a pension earned by one spouse between both parties can be especially challenging, if not impossible.
• The various emotional aspects of the family home often make it a particularly contentious part of the divorce process.
• Why allowing emotion to dominate divorce proceedings may not only lead to a less than equitable settlement but also bring about unforeseen financial consequences for one or both parties down the road.

And more!

Unfortunately, as we all know, divorce is never easy, and many moving parts require us to set aside emotion so that rational thinking can take center stage – easier said than done, right?! We aim to help you walk away from this episode with a better idea of what needs to be considered when equitably dividing financial assets.