Monmouth Health & Life Magazine

1. Untying the Knot:
Special Divorce Issue
Welcome to the latest edition of fiscal
fitness! September is one of the best
times of the year at the Jersey Shore.
It’s also a time of change for many individuals.
Working with so many divorcing clients over the
years, I have seen many mistakes that might have
been prevented had someone been helping with the
finances during the process.
As a devoted advocate for the collaborative divorce
model, I work very closely with clients helping
them achieve fair and workable divorce settlements.
Let’s take a closer look at some of the questions and
concerns I hear from both parties.
How do I evaluate my settlement so it
makes sense for me?
Remember, your attorney went to law school and
specialized in family law, not financial planning. Does
your attorney have access to specialized divorce
computer models that can produce comprehensive
and realistic analyses of your current lifestyle and
how it will look post-divorce in 5, 10 or 20 years
down the road?
When working with a client, I look at many factors
such as future income, budgets, maintenance,
child support and dependency exemptions, taxes,
pensions and retirement plans, investments and
educational expenses. With so many moving parts,
how do you decide what makes sense now and for
your future?
Should I keep the house?
One of the biggest problems I see is a spouse being
emotionally attached to the marital home (a non-liquid
asset) and trading that off in lieu of another
marital asset such as an IRA or a pension. Although
this trade off might make sense on a yellow legal pad,
understanding the long-term implications and how
it fits into your overall financial plan isn’t easy when
emotions are running high. Too often I hear “I will
keep the house and deal with it later.” Later may be
too late, depending on the age and income level of
the recipient.
Am I entitled to continue coverage from
my former spouses’ group health plan?
Yes, under COBRA, a covered spouse may continue
their plan coverage for a limited time when they
would otherwise lose coverage due to
a particular event, such as divorce (or
legal separation). A covered employee’s
spouse may elect continuation
of coverage under the plan for a
maximum of 36 months.
The ex-spouse (a qualified beneficiary) must notify
the plan administrator of the qualifying event within
60 days after divorce or legal separation. After
being notified of a divorce, the plan administrator
must give notice, generally within 14 days, to the
qualified beneficiary of the right to elect COBRA
continuation coverage.
What are the rules on receiving Social
Security from my ex-spouse?
This question comes up all the time. Generally speaking,
to be entitled to spousal benefits, you need to have
been married for 10 years and currently unmarried.
• You can receive benefits on your ex-spouse’s record
even if he/she is remarried.
• Your decision to collect on your ex-spouse’s
earnings history will have no impact on the size of
his/her benefits or those of his/her current spouse.
• One individual can have multiple ex-spouses
collecting on his/her earnings history, provided
he/she was married to each spouse for at least 10 years.
Your ex probably won’t know you are collecting
benefits off of his/her earnings record unless the SSA
(Social Security Administration) needs to contact your
ex for additional information.
I look at money as a tool to accomplish some of life’s
goals. If you have never taken an active role in how
the finances were managed during your marriage,
why would you make such difficult financial decisions
on your own during a divorce? Working with an
experienced professional, trained and certified in
divorce financial planning, can help the family achieve
long-term financial success. I can help…
2424 Route 34, Manasquan, NJ 08736
800-995-4534
www.harborlightsfinancial.com
Debra Fournier
Certified Financial Planner™
Certified Divorce Financial Analyst™
This information should not be construed as specific tax, legal or investment advice. Investing involves risk, including possible loss
of principal. Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FIRA/SIPC
About the author
Debra Fournier, CFP®, CDFA™
is a Principal of Harbor Lights Financial
Group, Inc. in Manasquan, N.J. She
has been providing comprehensive
financial planning and investment
advisory services for two decades. As
an experienced Certified Financial
Planner™ professional and Certified
Divorce Financial Analyst™, her divorce
planning services are especially
productive where there are complicated
financial issues, significant assets or an
imbalance of knowledge between the
divorcing couple.
Debra currently serves on the executive
board of the Jersey Shore Collaborative
Law Group and the Academy of Finance
at Manasquan High School. She
participates in the mentoring program
at Monmouth University and is a
member of the Association of Divorce
Financial Planners and Institute for
Divorce Financial Analysts.
She has been quoted in Kiplinger’s
Personal Finance Magazine and AOL
Daily Finance, has appeared numerous
times on Good Day New York and has
been featured in the Asbury Park Press
section Getting Ahead.
For a private, no-obligation phone
consultation, please call 800-995-4534
or email debra.fournier@hlfg.com
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