This document provides an overview and agenda for a webinar on financial aspects of divorce for military PFMP professionals. The webinar covers topics such as common divorce financial issues, military-specific divorce considerations including pensions and benefits, property division, negotiation strategies, and resources for PFMPs. It also provides an evaluation of a previous webinar which found it was well-received and increased knowledge among participants.
This presentation was used for the Bridge the Gap CLE at Fordham Law School in January 2015. I co-presented with another family lawyer. My part of the presentation covers the jurisdictional differences between Supreme Court and Family Court, the different divorce paths in New York (e.g., contested divorce, uncontested divorce), Notice of Automatic Orders, matrimonial agreements (e.g, prenuptial agreements), grounds for an annulment and grounds for a divorce, equitable distribution, child support and spousal maintenance.
Managing your expenses within the framework of a budget is necessary to survive financially. A budget is the best way to break the crippling cycle of debt. U.S. consumer debt has reached epidemic proportions. According to the Federal Reserve, Americans have accumulated more than $2 trillion in consumer debt and charged more than $740 billion on their credit cards.
This presentation was used for the Bridge the Gap CLE at Fordham Law School in January 2015. I co-presented with another family lawyer. My part of the presentation covers the jurisdictional differences between Supreme Court and Family Court, the different divorce paths in New York (e.g., contested divorce, uncontested divorce), Notice of Automatic Orders, matrimonial agreements (e.g, prenuptial agreements), grounds for an annulment and grounds for a divorce, equitable distribution, child support and spousal maintenance.
Managing your expenses within the framework of a budget is necessary to survive financially. A budget is the best way to break the crippling cycle of debt. U.S. consumer debt has reached epidemic proportions. According to the Federal Reserve, Americans have accumulated more than $2 trillion in consumer debt and charged more than $740 billion on their credit cards.
Dr. Barbara O'Neill and Attorney Mary Benzinger will present this 90-minute webinar on estate planning on behalf of the Military Families Learning Network's Personal Finance Concentration Area. Topics to be discussed in this webinar include: probate and probate avoidance, the advantages and limitations of wills, trusts, estate taxes, blended families, life insurance beneficiaries, states that have transfer on death for vehicles and real property, poor planning & minor children, testamentary trusts, and estate planning resources.
Kelvin Leibold - Intergenerational Transfer and Estate PlanningJohn Blue
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Predatory Lending Practices & How to Avoid Themmilfamln
Dr. O'Neill and Marcus Beauregard will present a 90 minute webinar on behalf of the Military Families Learning Network that will focus on the practices and schemes associated with predatory lending, as well as tips for educators and practitioners to share with clients to help them avoid becoming victims of these practices.
In July of every year, Military Consumer Protection Day is celebrated. To tie in with this theme, the Military Families Learning Network personal finance team is offering a webinar that will describe various types of predatory lending practices. Part One will include a definition of predatory lending and characteristics of predatory loans. It will also describe several common types of high-cost loans including payday, car title, and pawn shop loans and other forms of subprime lending. Part Two of the webinar will explore the impact of predatory loans on military families and regulations in place to protect against fraud
Of particular importance, this webinar will focus on the Regulation (32 CFR Part 232), which implements the Military Lending Act (MLA), which has been going through a significant revision so that the limitations in the MLA are effectively applied to credit available to Service members and their families. Join the webinar July 28 at 11 a.m. ET: https://learn.extension.org/events/2113/
The Military Families Learning Network's personal finance team presented a webinar on Financial Ratios & SWOT Analysis, two important components of creating a manageable spending plan.
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When it comes to the division of assets and income on the breakdown of a marriage, lawyers are limited in the assistance we can provide clients. Financial Planners are an essential advisor for clients during separation both providing assistance with the division of assets but perhaps more importantly, providing guidance on how clients can rebuild for their future. In this presentation we consider the role of Financial Planners in a divorce with a focus on their role in Collaborative Practice.
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Cari Rincker is discussing prenups, children issues (including custody, parenting time and support, spousal maintenance, farm income issues, animal issues, equitable distribution, and farm estate and succession planning issues as it relates to family law.
This presentation is one of many available on senior topics to help families better understand the aging process and find resources to help their loved one remain safe and healthy in their home. To sign up for a workshop please contact our office. Note: Videos and manuals affiliated with this presentation are only available when attending the workshop.
For more information go to www.homeinstead.com/650.
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Dr. Barbara O'Neill and Attorney Mary Benzinger will present this 90-minute webinar on estate planning on behalf of the Military Families Learning Network's Personal Finance Concentration Area. Topics to be discussed in this webinar include: probate and probate avoidance, the advantages and limitations of wills, trusts, estate taxes, blended families, life insurance beneficiaries, states that have transfer on death for vehicles and real property, poor planning & minor children, testamentary trusts, and estate planning resources.
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In July of every year, Military Consumer Protection Day is celebrated. To tie in with this theme, the Military Families Learning Network personal finance team is offering a webinar that will describe various types of predatory lending practices. Part One will include a definition of predatory lending and characteristics of predatory loans. It will also describe several common types of high-cost loans including payday, car title, and pawn shop loans and other forms of subprime lending. Part Two of the webinar will explore the impact of predatory loans on military families and regulations in place to protect against fraud
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AFCPE 2012 fFnancial Aspects of Divorce for military families-all slides
1. Financial Aspects of Divorce
An eXtension Webinar for
Military PFMP Professionals
2. Financial Security for All CoP
• eXtension.org
• eXtension Financial Security for All
Community of Practice
• Significant content
– Frequently Asked Questions
– Programs and Resources
• Online Learning
– Web conferences
– Began as chats
3. Military Family Learning Network
• Multiple CoPs
– Such as: Child care, Family Development,
Network literacy
• And our Team Personal Finance
Training the Personal Finance
Managers (PFMs)
4. Military Family Learning Network
• Personal Finance Project goals:
– Provide on-going professional
development to enhance the DoD baseline
program
– Programs be accessible to Military PFMs
at installations around the world
– Opportunity to earn Continuing Education
Units (CEUs) to maintain AFC credential
– Create or enhance community among
PFMs
5. Topics
•
Housing and Foreclosure • 9 Skills of Couples Communication About Money
• February 2, 2012 11:00 AM Eastern • June 26, 2012, 2 p.m. Eastern
• http://learn.extension.org/events/427 • http://learn.extension.org/events/529
• Talking With Kids about Money • Retire Ready: Financial Planning for Later Life
• February 23, 2012 Time 2:30 PM Eastern • July 10, 2012, 2 p.m. Eastern
• http://learn.extension.org/events/441 • http://learn.extension.org/events/530
• Implications of Relatives Raising Children While • Thrift Savings Plans: Retirement Planning for Military
Parents Are Deployed Families
• April 5, 2012, 2 PM Eastern • July 25, 2012, 1-2:30 p.m. Eastern
• http://learn.extension.org/events/458 • http://learn.extension.org/events/563
• Financial Aspects of Divorce • Income Tax Return Filing Issues for Members of the
• April 12, 2012, 11:00 AM Eastern Armed Forces
• http://learn.extension.org/events/456 • August 28, 2012, 12:30-2 p.m. EASTERN
• http://learn.extension.org/events/588
• Home Ownership: When Is The Right Time?
• May 8, 2012, 2:30 p.m. Eastern • Basic Money Management
• http://learn.extension.org/events/509 • September 25, 2012, 11 a.m. Eastern
• http://learn.extension.org/events/61
6. Why Web Conferences?
• Engaging venue to reach larger
audiences for
– Educational outreach
– Professional development
• Presentations are archived for
additional viewing
• Post test supports CEU process
integrity
7. Marketing
• FSA Membership
• State lists of agents
• Department of Defense and the MFLN
• Partners assisted too!
– NIFA (Thank you Susan)
– Thank you Ken McDonnell, Director, American Savings
Education Council (ASEC), Employee Benefit Research
Institute
• Twitter
– @mikegutter
– @moneytalk1
– @dollardecisions
• Facebook
8. Making it Interactive
• Use Adobe Connect
• Audience can hear presenters, see a
picture, follow presentation or view
other materials
• Can ask questions via chat box
• Can respond to questions via chat box
• Respond to poll questions to give real-
time feedback that can be seen by all.
10. Disclaimer
• The intent of this Webinar is to provide accurate,
research-based information
• The Webinar in no way purports to render legal,
financial, or other professional services
• Viewers should consult an attorney that specializes
in military divorces if legal advice or other expert
assistance is required
11. Webinar Agenda
• 10-Question Pre-Test
• Divorce and Military Families
• General Divorce Financial Planning
• Military Divorce Financial Planning
• Key Documents Needed in a Divorce
• Resources for PFMPs
12. Divorce Process
• Very fact based (case-by-case basis)
• Range of factors considered by courts
• NO “magic formula” for the appropriate division of
assets (“equitable” does not mean “equal”)
• Decisions made within state guidelines (e.g., child
support and community property)
• Federal and state laws must be followed
13. Divorce and Military Families
• Divorce rates higher for military families than
for general U.S. population
• 3.7% in 2011, up from 2.6% in 2001
– WSJ Article: http://kienkerlaw.com/global_pictures/Divorce%20Splitting%20Up
%20a%20Rich%20Military%20Pension.pdf
• Divorce rate for women in the military is
double that of men
– Highest among military women with civilian husbands
– One reason: more support services for wives?
14. Common Divorce Financial Issues
• Division of real property (e.g., house, land)
• Division of personal property
• Division of savings/investments
• Division of debts
• Will anyone pay alimony (spousal support)
• Arrangement of child support payments
• Income tax exemption for dependents
• Post-divorce insurance coverage (e.g., life,
health, disability)
15. Common Divorce Non-Financial
Issues
• Where the children are going to live
• Who will make decisions about the children and
their well-being
– Physical custody: where children live (overnights)
– Legal custody: decision-making authority
• Where and when the other parent can visit the
children
16. Military-Specific Divorce Issues
• Federal laws (SCRA, USFSPA)
• Military paychecks (e.g., BAH allowances)
• Jurisdiction for filing divorce
• Child support process and compliance
• Child custody and visitation decisions
• Pension rights
• Military benefits
17. Smart Negotiation Strategies
• Know what YOU want
• Know what your spouse wants
• Listen to the other side
– Learn things to further your interests
• Have a fall-back plan
• Never agree to anything that is unacceptable
• Get it in writing
18. Negotiation Planning Grid
My goals in terms of property My spouse’s goals in terms of
division are: property division are:
My goals in terms of support are: My spouse’s goals in terms of
support are:
My goals in terms of my children My spouse’s goals in terms of
are: children are:
19. Common “Hot Buttons”
Men (and Employed
Women): Pension and Women: Keeping a
voluntary savings accounts house and child custody
(e.g., Thrift Savings Plan) •Tied to desire for stability
•Emotionally tied to for self and children
previous work history •BUT…”home
•“I [busted my butt, went to attachment” may not be
war, defended my country, as much an issue for
risked my life, etc.] and military spouses used to
she/he wants half of my frequent moves
pension. I don’t think so”
20. Property Designations
Separate Property
– Acquired before marriage and NOT co-mingled
– Gift from someone other than spouse
– Personal injury awards, NOT co-mingled
– Inheritances, NOT co-mingled
– Designated in a prenuptial agreement as
separate property
21. Property Designations
Marital Property
– All property acquired by EITHER or BOTH
spouses during the marriage (and before the
signing of a separation agreement or the
commencement of a divorce REGARDLESS
of the name in which property is held
– Community property is another term for marital
property in nine states
22. Community Property States
• Most property acquired during a marriage
is owned jointly and divided at divorce
(except gifts and inheritances)
• Joint ownership is automatically assumed
• AZ, CA, ID, LA, NV, NM, TX, WA, WI
23. Value of Property
• Fair Market Value (FMV)- price at which an
item could be sold (e.g., garage sale, eBay)
• Depreciated Value- FMV as calculated from
depreciation schedules for specific property
• Replacement Value- Cost to replace or
purchase a new item
24. Debt Repayment
• No matter WHO charged WHAT, a joint
account means BOTH spouses are legally
responsible to creditors for debt repayment
• Creditors don’t care about divorce decree
terms…they just want to be repaid!
• Ask creditors to close joint accounts
– Try to convert to or reopen as individual account
• Got doubts? Request duplicate statements
or online access to monitor ex-spouse’s
compliance
25. Tax Considerations
• Child support is neither deductible by the
payor nor included in the income of the
recipient
• Alimony (spousal support) is taxable to the
recipient and deductible as an adjustment to
the payor’s gross income (to calculate AGI)
• Avoid attempts to “disguise” child support as
alimony
26. Proceeds From Sale of a Home
$_____ Estimated sales price
Selling expenses:
$_____ Realtor commission
$_____ Fix-up costs
$_____ Amount required to pay off loans(s)
$_____ Real estate transfer taxes
$_____ Other sales costs
$ ______ Estimated selling costs
$_______Estimated proceeds from sale
27. Staying vs. Moving
Cost of Staying in Home Costs of Renting
– Monthly PITI Monthly Costs
– Rent
– Gas and electric
– Utilities
– Water and sewer – Other
– Garbage pick-up Total Monthly Cost: $_____
– Yard work One-Time Costs
– Homeowner fees – Moving
– Maintenance and repairs – Deposits
(1% of market value) – Utility hook-ups
– Other Total One-Time Cost: $_____
Total Monthly Cost: $_____
28. Military Divorce Process
• Combination of state laws and guidelines
(e.g., child support) and federal laws
• Servicemembers Civil Relief Act (SCRA)-
Active duty service member can request a 90-day
stay of divorce action; can be extended (but not
forever) if military duties interfere with participation
• Uniformed Services Former Spouse
Protection Act (USFSPA)- Allows (but does
not require) local courts to treat military retired pay
as marital property and divide it in a divorce action
29. Military Divorces
• Couples with marriages of all durations
– 20+ year careerists with substantial benefits
• WSJ (3/10/12): Divorce: Splitting Up a Rich Military Pension
• Air Force Lt Colonel with 30 years of service gets a
pension of $72,288
• http://online.wsj.com/article/SB10001424052970203961
204577269460305366188.html
– Young service members in first/second enlistments
• Older couples: pension is very valuable asset
• Enlist at 18, retire at 38, receive pension with COLAs for
next 30? 40? 50? years
• No minimum retirement age
30. Military Pensions
• USFSPA permits states to treat “disposable
retired pay” as marital property and divide it in
a divorce settlement
– Monthly retirement pay minus qualified deductions
• Does NOT automatically entitle a former
spouse to any of service member’s benefit
• If > one divorce, direct payments to ex-
spouses should not be > 50% of retired pay
• “First come, first served” basis
31. More About Military Pensions
• 10-10 test for DFAS to trigger garnishment of
a military pension (like a civilian QDRO)
– Married for at least 10 years
– 10 years of creditable service by member
– Must request DFAS to garnish retired pay
• Consider delaying divorce if close to 10 years
• If can’t meet 10-10 test, court can still award
part of pension but military spouse is
responsible for making payments
32. Other Military Benefits at Divorce
• Non-military spouse loses ID card/installation privileges
(e.g., medical, commissary, PX) once divorce is final
– Exception: unmarried 20-20-20 former spouse
– 20-20-15 spouse qualifies for medical benefits for one year
from date of divorce or annulment but has no commissary and
PX privileges
– Children maintain commissary/PX privileges; ex-spouse may
request privileges to buy items for children
• Military housing must usually be vacated within 30 days
after SM stops residing there
– Installation commander may make interim decisions
33. Key Divorce Documents
• Deeds to real estate • Pension/retirement
• Mortgage papers savings plan documents
• Tax returns (last 5 yrs) • Business tax records
• Paycheck stubs (last 8) • Inheritance documents
• Bank statements • Insurance settlement
documents
• Bills for living expenses
• Net worth statement
• Proof of other income
(e.g., unemployment, disability) • Household budget
• Documents showing debt • Evidence of adultery
• Insurance policies
34. Divorce Finance Resources
• Association of Divorce Financial Planners:
http://www.divorceandfinance.org/
• Institute for Divorce Financial Analysts:
https://www.institutedfa.com/
• FPA (Financial Planning Association): Getting
a Divorce:
http://www.fpanet.org/LifeCrisis/GettingaDivorce/
• Military Money: When Love is a Battlefield:
http://www.militarymoney.com/MilitaryLife/rights/tabi
d/115/itemId/2229/Default.aspx
35. Evaluation
• 100% of respondents indicated the subject matter was what they
expected
• 100% of respondents indicated the presenters were
knowledgeable and helpful
• 89% of respondents indicated amount of material presented was
about right for the allotted time.
• 97% of respondents indicated they will apply this knowledge in
their jobs
• 97% of respondents indicated the difficulty level was appropriate
• 100% of respondents indicated the webinar stimulated their
interest in the subject
• The number of respondents indicating that they knew quite a lot
about the topic increased 58% after the webinar
36. Topic Suggestions Are
Welcome
Please send ideas for topics or
speakers to msgutter@ufl.edu
Questions?