The Financial Facts Behind Divorce

While it may seem counter-intuitive, the more common divorce becomes, the more complicated it gets. One might expect that because about half of today's first marriages end in divorce (and around 60 percent of second marriages) the law, the process, even the outcome would become standardized, predictable even. Yet nothing could be farther from the truth.

Finances quickly emerge as the most complicated issue facing a divorcing couple, and today's finances can be extremely complicated. Years ago, ordinary people did not own mutual funds and stock options, create blended families, or accumulate mountains of credit card and mortgage debt. Dad went to work and Mom stayed home to raise the children. Life was simple, families were simple, and divorce, although rare, was often very simple.

As a result of these financial complexities, individuals and attorneys are asking financial professionals to play an active role in assisting them with sorting through the financial details related to divorce. However, although financial planners and accountants certainly understand investments and taxes, they have little or no professional training specifically related to the financial issues of divorce. When a divorcing client asks them for assistance, many financial advisors are unable to provide critical information or offer insightful advice. Too often, the client is unaware that their financial advisors do not have the required expertise; creating unintended, even adverse results. The long-term impact of making uninformed financial decisions can be devastating to the client, their family, and their future.

Attorneys are trained to research the facts, apply the law, and navigate their clients through the legal system. Accountants calculate tax liabilities, and investment advisors build and manage your portfolio. Today, it is common for attorneys, mediators, and even judges to look to experts that are knowledgeable about the financial issues around divorce to inform this process. A Certified Divorce Financial Analyst is just that professional. Commonly referred to as a CDFA, this person is typically a financial services professional with additional training in the issues specifically related to divorce. A CDFA can assess your current assets, liabilities, and expenses. They are able to assist you with creating a household budget, proposals for division of assets and liabilities and assessing future, post-divorce needs. Without the informed input of an educated professional, you risk making serious financial mistakes that can create irreparable damage to your long-term financial condition.

Although under certain circumstances, a Divorce/Separation Agreement may be modified after the divorce is final, this modification process is expensive, time consuming and almost certainly contentious - and there is no guarantee that you will get what you are asking for! This is your divorce - and it will impact your future. Do your homework and hire qualified financial professionals who are experts in the area of divorce financial planning, and get it right the first time.

A CDFA can help you avoid the following common mistakes:

1. Negotiating to keep the "marital home" when you cannot afford it





In many marriages, the marital home is the largest, most emotional and expensive joint asset. Should you stay or should you sell? Carefully consider whether you can afford it. A home is an illiquid asset that can very expensive to maintain - mortgage, taxes, insurance, utilities, and daily operations add up quickly. Will you be able to meet all of these expenses once you are divorced? Call the utility companies and obtain your actual annual costs. Do you have money set aside in case the water heater, furnace, or air conditioning needs to be replaced? Run all of the numbers for a full year to determine a realistic evaluation of the expenses. If you do want to keep it, can you buy your spouse out of his/her half of the equity? You may be able to refinance your mortgage or take out an equity line of credit to fund the buyout. Consider a lower adjustable rate mortgage if you expect to sell a few years after your divorce. If you do sell, will there be a capital gains tax due on the proceeds? How much of the proceeds will you lose in realtor commissions, capital gains taxes, and moving costs?

Case in Point





In 2005, Heather insisted on keeping the house that she and her husband had bought when they were first married years earlier. As their marriage had been 'on the rocks' for a few years, the house had not been maintained and there were leaks in the plumbing, stains on the ceiling, and it desperately needed a fresh coat of paint. When she traded a portion of his 401(k) to keep the equity in the house, Heather was elated. She thought she had won until 10 months after the divorce, the water heater broke. It caused water damage in the basement and the cost to replace and install a new unit was $2,400. Heather had not anticipated this nor other expensive repairs required over the next few years. Finally, since her alimony was running out and she was losing patience, Heather decided to sell. She met with a realtor who informed her that the housing market had softened significantly since her divorce, values were down, and her equity had narrowed considerably. In addition, if she wanted to get a "good price" for the house, she was going to have to make certain repairs. When the house eventually sold, the real estate agent's commission, and capital gains tax further reduced Heather's proceeds. Since Heather was not married, she was not eligible for the $500,000 capital gain exclusion but rather the single rate exclusion of just $250,000. While Heather was saddled with the upkeep and expenses of this home, her husband enjoyed tax and expense free growth in his 401(k) investments, and purchased a small dwelling in a less expensive part of the state. He was elated.

2. Understanding the complications of a QDRO to divide retirement assets





A Qualified Domestic Relations Order (QDRO) is required when one spouse has a qualified retirement plan that is subject to division pursuant to the divorce agreement. A qualified retirement plan is a plan that is covered by the federal laws of ERISA and offers its participants protection from creditors. If both parties have negotiated to equalize your retirement assets by using a QDRO when you could have used assets from an IRA, you have potentially walked into a hornet's nest. A QDRO is a complicated document that is generally drafted by a financial or legal specialist, who typically charges a fee for service ($400-$800). Once the QDRO is approved by the plan administrator, it has to be filed with the court.





The alternative to this time consuming and costly process is to take retirement assets from an IRA. Since an IRA is not a qualified plan, the IRA owner just needs to submit a letter of authorization to the financial services firm housing the IRA and a copy of the judge-signed divorce decree, and the firm will open an IRA for the receiving spouse and deposit the funds according to the divorce agreement. This can be done at no cost and typically completed within 10 business days.

Case in Point





As she was negotiating her divorce, Lisa had the choice of taking $100,000 from either her husband's 401(k) at his job or his IRA at a local bank. Since she didn't know that it made a difference, she chose to take the funds from his 401(k). Her agreement stated that she would pay all costs associated with transferring the retirement assets to her account. Once the divorce was over, her lawyer contacted a QDRO specialist and started the process. That was a year ago, and now the market value of the 401(k) is lower. Additionally, she paid $600 to the specialist to draft the QDRO, paid the lawyer to file it with the court twice, (the documents were lost the first time), and she still doesn't have the money. Had she had consulted with a CDFA, she would have known to take her interest in the retirement accounts directly from the IRA. At the time he signed the divorce decree, her husband could have signed the bank authorizations allowing them to distribute the funds into her IRA. This process would have been free and she would have had her funds within 10 days of receiving the final divorce decree from the judge.

3. Realizing the importance of making the spouse who receives spousal and child support payments the owner of a life insurance contract





Life insurance is a common vehicle used to secure support in the event the 'paying spouse' dies. Before any divorce is final, the 'receiving spouse' should determine how much they would receive in total for the full term of support. If the support order is open-ended, you should do your best to calculate how much money you would need to have in the bank earning 5% interest to replace your support in the event the paying spouse dies. The paying spouse should obtain life insurance on his/her life to ensure that funds will be available upon death. If the paying spouse is obtaining a new policy then the insurance application should be approved and issued before the divorce is final. If the paying spouse is not insurable (unable to obtain life insurance) and the divorce is over, the opportunity to renegotiate or obtain different asset is lost. Also, the spouse who receives support should be the owner of the insurance policy on the paying spouse's life. This would give the receiving spouse control over the policy to ensure that it does not lapse due to non-payment, or that the beneficiary has been changed to someone else.

4. Considering your Social Security benefits





If you were married for at least 10 years, you can collect retirement benefits on your former spouse's Social Security record. You must be at least 62 years old and your former spouse must be entitled to or currently receiving benefits. If you remarry, you generally cannot collect benefits on your former spouse's record unless your subsequent marriage ends by death or divorce.

If your divorced spouse dies, you can receive benefits as a widow/widower, if the marriage lasted 10 years or more. Benefits paid to a surviving divorced spouse who is 60 or older will not affect the benefit rates for other survivors receiving benefits.

If you change your name, make sure to tell the Social Security Administration and your employer. This will assure that your earnings will be properly reported and recorded in your SSA records. You should obtain a new card from SSA with your new name.

In general, you cannot receive survivor's benefits if you remarry before the age of 60 unless the latter marriage ends by death or divorce. If you remarry after age 60, you can still collect benefits on your former spouse's record. When you reach age 62, you may get retirement benefits on the record of your new spouse if they are higher. Your remarriage would have no effect on the benefits being paid to your children.





If you are collecting survivor's benefits, you can switch to your own retirement benefits (if you are eligible and your retirement rate is higher than the widow/widower's rate) as early as age 62.

5. Understanding the implications of Modifiable vs. Non-Modifiable Separation Agreements and Alimony





In most states, alimony is either modifiable or non-modifiable. When a separation agreement involving alimony is "merged" into a Judgment of Divorce, its terms are incorporated into the judgment and can be modified by the court at the request of either party. In order to prevail in a request for modification, the requesting party must show the court that there has been a "material change of circumstances" which justifies modifying the original agreement/judgment.

If a separation agreement is non-modifiable with respect to alimony, the agreement "survives" a Judgment of Divorce, and although its terms are also incorporated, it does not "merge" into the judgment. Yet the agreement stands as an independent, legal contract between the parties. As such, the contract would be litigated in a civil proceeding in Superior Court and treated as an agreement that the parties entered into voluntarily. For a court to modify the contract against the wishes of the other party is highly irregular. The requesting party must show a graver concern over and above the "material change of circumstances" standard, such as when the other party is at risk of becoming destitute.

Even if the separation agreement is non-modifiable with respect to alimony, a modification of child support is always possible, if it is determined there has been a material change of circumstances, since parents may not take away the rights of their children to receive support from either one of them.

6. Factoring the tax implications of alimony vs. child support payments





Support payments resulting from divorce receive different tax treatment depending upon whether they are characterized as "child support" or "spousal support" (sometimes referred to as maintenance or alimony). Payments classified as child support are not taxable to the receiving spouse and not tax- deductible by the paying spouse. Payments classified as spousal support or alimony are taken into income for tax purposes by the receiving spouse and deductible from income by the paying spouse.

These payments are not only tax deductible, but "above the line" adjustments to income, meaning that the paying spouse takes the deduction to arrive at their adjustable gross income (AGI) rather than adding them to their itemized deductions on Schedule A of their tax return. Divorcing spouses may be able to save money in taxes by taking advantage of this difference, but must be careful in how they structure the payments.

For these and many other reasons, any person considering (or facing) divorce would do well to consult a CDFA. As you have seen from these few examples, some of these pitfalls are very technical, and the consequences of making an ill-advised choice in any one of them can last a lifetime. Divorce is always difficult, but it needn't necessitate a lifetime of regret. Get professional advice from the start, and make your best effort at a new beginning!

6 Tips to Eliminate the Threats of Internet Security

Without internet, computer is just one kind of terminal machine. It is the internet that plays the important role in our daily life. I guess there are lots of people who will have such amazing feeling that life seems to be much easier and more convenient when your computer is connected with Internet. You can watch movies, listen to music, read the e-magazine as well as purchase what you need online. We all feel excited that we are living the new century and can enjoy the convenience bought by these electronic equipments. At the same time, we will have to face many security threats. The viruses, Trojans, spyware and malicious malware are all exist on the Internet. Those viruses or malware will utilize the network to attack our computer system such as utilizing the system vulnerabilities to enter into the computer, creating the fishing website, sending the mail bomb, etc. How can we evade these threats effectively? 6 tips will offer us the utmost help.

1. Install the must have software before you put the computer in the working state.

When you get the computer, the important thing you should do is make sure that you have installed the must have software, the firewall, the anti-virus software before the computer does all kinds of work for you.

As we all know computer without any protection could have been more easily attacked by hackers, viruses and Trojans. Personally Advanced SystemCare Pro which is considered as the versatile software will be a good choice.

2. Do remember to update the anti-virus software timely.

Lots of new virus will be generated and spread on the internet. Even your computer has installed the anti-virus software, if you do not update it timely, then it can not detect and clean the newly-generated virus. So it is very important to update your anti-virus software timely.

3. Check your computer system and fix the system vulnerabilities in time.

Generally speaking, virus and Trojans will enter our computer when your computer system is vulnerable. So if you want to keep your computer safe and far away from the Internet security threats, you need to fix the vulnerabilities once you find them.

4. You'd better close the sharing function.

Another channel that the hacker or virus can utilize is the sharing function. We all know that the sharing function can help us to facilitate the communication. But the negative effect is it also provides the opportunity for hacker's attack. So if you want to enjoy the safe network, you're better close the sharing function.

5. Think twice before you browse the doubtful websites.

Viruses can be everywhere on the internet. Usually some websites are the best place for them to hide. When the computer users browse such websites, their computer will be infected. And before you open the web page, the anti-virus software you installed on your computer will give you some warnings. At this time, you're better stop opening it.

6. Develop the habit of backing up the important files.

No matter how carefully you treat the virus, your computer is likely to be attacked. So in order to prevent the loss of some important files, you'd better develop the habit of back up these files into an external memory.

How Digital Technologies Improve Filmmaking

Breaking into the current film industry holds a greater challenge compared to classic filmmaking. The digital era has certainly catered to the universal passion of moviemakers for making motion pictures. Today, digital technology changed the way how movies are made. Digital filmmaking opened new opportunities and possibilities to filmmakers of both small indie films and big budget blockbuster films. This also includes the same way that copyright infringement software protects these films. Therefore, if you're a filmmaker, whatever output or type of film you want to accomplish, you can play around using the latest technological advances.

Digital Vs. Traditional

In general, films are extremely flammable yet they are quite expensive. Directors have to look for major studios that could invest a big amount needed to produce a movie. As for digital filmmaking, the digital motion picture cameras may be expensive, but it is a significant investment.

Digital filmmaking is a type of filmmaking where you use digital cameras or a computer to create characters, environments and other extensive features. Digital storage has reduced and simplified the costs of making movies. Compared to films, storage in digital cameras cost less, lasts longer and is safer. Over a long period of time, films degrade and will actually decompose. Improper storage and protection may destroy the print of the film which extremely results to losing classic movies forever.

The move from celluloid to digital has opened up huge opportunities for special effects resulting to the growth of fantasy movies and science fiction. Film characters are not limited to explore only our world. Now, filmmakers have the tools to visually depict imaginary worlds with digital technology. Movies feature computer generated imagery (CGI) while some combine both CGI and live action using revolutionary new motion-capture techniques. As a result, movie creations are more out of this world than ever.

As we've gone digital, the public's movie experience has become a lot different. In the past, everyone was used to watching films without color. Each motion picture was black and white. But at present, anyone can enjoy a movie in full color with surround sound. They can even have a 3D experience if they choose to. The number of options given to every movie goer is just one of the things that prove that filmmaking has really improved.

Aside from the internet, the widespread use and application of digital technologies are shaping the future of film. At present, the way movies are consumed and distributed has also changed. People can stream or download the videos, and with video-on-demand services like Netflix, everyone can watch their favorite shows and movies whenever they like. Unfortunately, some people choose to share copyrighted materials without the owners' permission, which is illegal. When you download a movie, you are stealing from the content owner's compensation. So, content owners and their partners use copyright infringement software to detect any digital piracy.

Make a Million Bucks Quick

So you want to get rich quick, who does not. The first thing that you have to do is get a reality check, on what exactly qualifies as quick. In the financial world the only way to get rich over night is to hit the lottery, or rob a bank. While the first one sounds nice, the odds are stacked against you. Robbing a bank might be the one that can make you instantly rich but it is also the one that can land you behind bars, and in a very uncomfortable bright orange jumpsuit.

Now that you understand that quick is anything less than five years you can start to make your blueprint for your financial freedom. So what separates the rich man from the average man, you will be surprised that the answer is a simple idea. You have to come up with a product or a service that is going to set you apart from the next fortune hunter.

After you come up with your million dollar idea it is time to decide how you are going to market this idea. Is it a product that you can sell? If so what sites are you going to sell it on, or are you just going to make the product available locally? If it is a service how are you going to let the people in your area know that you are now willing to provide them with this service. Whether or not you make your quick five year million dollars is completely up to you.

How to Locate Cell Phone Owners From Their Mobile Numbers

Today the ability to find someone using just there mobile phone number is easier than ever. There are many reverse cell phone directory options to choose from. A quick search of the Internet provides pages of service for mobile phone number searches. There are free options and fee based options. While the options are numerous, most people are best served by using a fee-based service.

It is true that you get what you pay for in almost all situations and when it is necessary to trace cell phone numbers this adage is also true. In order for a company to be effective, they must have a very large directory and the directory must be updated on a regular basis.

By paying for the reverse phone number search service, particularly when it comes to wireless phone numbers, you can be certain that the company being used has taken the time to compose an accurate list. Companies offering reverse directory services take time to compile complete lists often with over 250 million phone numbers. When searching for someone using his or her mobile phone number, a full, accurate and up-to-date directory is what should be used.

By paying a small fee for a reverse directory service, the chances of locating the person being searched for is much higher. While it may seem the information should be free, the truth is that there is not one place that houses all the mobile phone numbers in use, however, for more fruitful results, the small fee is worth the price.

Affiliate Marketing Business Compensation Methods

There are several compensation methods an affiliate marketing business can choose to employ. Currently, the cost per share (CPS) or revenue sharing method is being used by about 80 percent of affiliate marketing businesses. Next to CPS, the cost per action scheme is most popular with 19% of affiliating entities using it. The rest utilize other methods such as cost per click (CPC) or cost per mille (CPM).

Diminished Compensation Methods
Although less than one percent of the affiliate marketing industry implements cost per click, it is the most commonly used approach in the sectors of paid search and display advertising.

Cost per mille is considered the easiest and most profitable of the cost per click techniques because a visitor who visits an advertising made available by a publisher in his website is enough to earn that publisher his responsibilities. Pay per click is the evolved form of cost per mille. In pay per click, one extra step is added to the cost per mille system. That extra step is that visitors must first click the ads on a publisher's site before he earns any commissions. Having people visit his site alone will earn him nothing.

Cost per click methods were comprehensively being used in the early periods of the expansion of affiliate marketing business. But such use has greatly diminished over the decades as more and more fraudulent clicking activities were reported. Such issues are just the same of the issues troubling the search engines of today. Contextual advertising programs like Google AdSense are not taken into account in the statistical relating to diminished use of cost per click, as it is undecided if contextual advertising can be considered as affiliate marketing.

Performance Marketing
Cost per mille completely exposes the advertiser to risk and total loss because a publisher will tend to focus his full attention only at getting people visit his site and no longer cares when their visit at the site becomes enough to make them consider making a purchase or convert them into customers. This is because the publisher has already earned his commission after the visitor has gone to his site.

Cost per action or cost per sale methods are considered the ultimate reengineered from of cost per mille in the sense that more actions are required to be completed by visitors before they earn the publisher contracts. The most common prerequisite for decisions is the publisher website must be able to convert the visitor into a customer. The publisher then is forced to focus on conversion rather than just getting people visit his site. The risk and loss therefore is being shared by both the affiliate and the advertiser.

Performance marketing enterprise has become an alternate name for an affiliate marketing business because of the sales employees or associates are normally being compensated. Such employees often receive performance bonuses whenever they exceed their quotations to motivate them to give their all. The bonus is additional compensation, added to the fixed per sale commission they receive. Affiliates are often paid in similar ways to that of a fully commission based internal sales department although associates are not in any way directly employed by the affiliate marketing business they advertise products and services for.

Affiliates can never be totally described as an extension of the affiliate marketing business' sales work force because they provide very little or absolutely no influence to the visitors that they convert or try to convert into clients because they direct traffic directly to the advertisers sales website. The in-house sales team, on the other hand, exercises control and influence over the prospects until the deal is closed or the relative product or service purchased.

What Makes Plano Homes for Sale a Wise Investment

People planning to buy a home take a lot of things in consideration in the process. Figuring out the location is one thing, but the location considerations could have been a lot of different things. One of the factors determining whether the location is good could be the local economy. People who want to buy Plano real estate would be happy to know that the local economy of this city in Texas is quite strong because it is fueled by the fact that most of the country's largest companies have their headquarters here.

There's Bank of America, Ericsson, Siemens, and more. There are many big employers currently in Plano, which could mean a lot for people looking at Plano homes for sale. This is also important not just because a strong local economy helps reinforce the real estate market in the area, it's also because of other practical reasons. People who live in the area can rely on the fact that their livelihood can thrive in case they do pick to live there.

Another location consideration would be the fact that people want to have fun and enjoy where they live. They want to have something to do that's really fit to the kind of lifestyle that they want to live.

For people who want to enjoy outdoor activities, there are places like the Arbor Hills nature reserve. You can enjoy untainted nature here and look at some of the trees that are naturally found in Texas. It's a natural habitat for fish, birds and other wildlife. A series of bridges and ramps connect the areas of these parks, and there are places for people to go rock climbing, if you're into more physical activities.

There are other parks and natural preserves to enjoy in Plano so you can have a lot of family-friendly fun while you live here.

There are also a lot of different kinds of museums in the area. If you want a place to enjoy the local history, there are museums like the historically accurate Heritage Farmstead museum. The museum aims to preserve artifacts about the traditional way of farm living in Texas from 1890-1920. The 14-bedroom Victorian farmhouse also has a lot of fun activities of do for kids.

There are also a lot of places to shop in Plano, and also a lot of places to go golfing in. There are really a lot of things to do for people of different ages and different interest. It makes this city a well-rounded place to live in.

If you would be interested to view Plano homes for sale, why not start your home search online? After signing up a few minutes, you'll be able to see good images of homes for sale in the area and get in touch with a real estate agent who could help you with your home search when you are ready to buy.