We seek self-fulfillment and personal satisfaction in marriage. We value open and continued
communication, and that may be hard to come by after decades of combining work and home
responsibilities and the demands of child care. About 1/3 of married people have admitted to
financial infidelity- lying about spending, or hiding money from a spouse. Money issues are a
higher indicator of break-up than issues around sex! (Yes, really.)

If you are 65 now, you can expect to live another 20-25 years. Big life changes like an empty
nest, retirement, or the death of a friend can lead to serious reassessment of a relationship that
is less than ideal.

Getting a Divorce Late in Life Has Additional Financial Consequences

Going it alone late in life may offer freedom, but that comes with many challenges. Retirement
funds earmarked for the you as a couple, won’t go as far to support two separate households.
Dividing the number scramble of plans (401k,403b, 457), as well as pensions, IRA’s,
investments and all your marital assets is a very complex process.

Make certain your health and financial houses are in order for the best outcome in your new life.
A Divorce Financial Planner can help you determine how long your assets will last and what
adjustments are needed for continued financial stability. Divorce also underscores the need for
careful estate planning – especially if you have children.

Any divorce is challenging, but in many ways, grey divorce presents the most difficult hurdles of
all. Be sure to hire a qualified divorce team to help you achieve a settlement that recognizes
your unique position while ensuring your financial stability in both the short and long-term.

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc.  Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.

Adrienne Rothstein Grace, CDFA, CFP is a Certified Divorce Financial Analyst , author of
Going From We to Me: A Financial Guide to Divorce, and the founder of Transitioning Finances, a financial strategy firm that works with women who are thinking about, or going through, a financially complicated divorce. She also advises women who have lost a loved one, or experienced other financially challenging transitions. She can be reached at: Adrienne@AdrienneGrace.com.

Walking from room to room can evoke years of memories, both good and bad. You may have remodeled, decorated and redecorated every inch of it, with treasured items at every turn. Or unhappiness may lurk there, in every dark corner. The equity in your house — the part you own, without the bank — can be your pot of gold, cash to fund your freedom.

However you feel about the house, it’s likely the biggest asset you own jointly, and what you do with it next, will be an important part of your divorce settlement. Most women and mostly all children -would prefer to stay where they are. But this is an important decision to be made by the adults. This is a time of change. The challenge is to separate the emotional from the practical, and take a long, hard look at your home, and
make important decisions about it.

Part of my job, at Transitioning Finances, is to complete the financial analyses needed to help you see if you can afford to stay- and for how long. Here are some key questions for you to consider, if you’re going through a divorce and want to keep the house.

Why do you want to keep the house?

Is it because it’s easier to stay than to pack up and go? Maybe it’s in a convenient location near the kids’ schools or close to where you work? Or, maybe your parents and siblings live just around the corner, and you value the support and connection. Try to keep emotions out of your decision, so that you can reach a divorce settlement agreement that puts you on a solid financial footing.

Can you afford to keep the house? This is important at every income level. How do the expenses of the house impact your soon-to-be-single budget? Is there enough money in the new budge to cover everything? Beyond the mortgage, taxes, utilities, insurance, maintenance, there are the unexpected repairs and constant upkeep. The‘honey-do’ list is all yours now, and you may have to hire professionals to take care of things your spouse used to do. A house costs money. Even affluent women have to thoughtfully weigh their options.

Would some other assets be worth more to you than the house? It’s important to understand that not all assets that are valued the same are actually worth the same.

Here’s an example:
Let’s say you’re trying to decide whether to keep a $500,000 savings account or a $500,000 house that’s completely paid off. On paper, they look the same. Your dream is to stay in this house until your youngest graduates from high school — thee years more, and you’re betting that the house will grow substantially in value. In addition to all the expenses we mentioned above, when you eventually sell your home, there may be
expenses to make the house ready for optimum sale- things to be fixed, painted, landscaped. These expenses are yours. Let’s assume you bought the home for $150,000, your neighborhood is now in high demand, and it’s now worth $500,000. Your capital gain is $350,000.

Sounds great, doesn’t it? But wait. Subtract your $250,000 capital gains exclusion as a single person, and you’ll have to pay capital gains tax on $100,000. At the current capital gains tax rate of 15%, that’s a tax bill of $15,000. Add that to the costs of sale, estimated at 8%, for another $40,000 off the top.

In three years, the savings account could be worth est. $520,000 (at approx. 1.25% ) It could alternatively provide extra cash to cover your expenses. Your house could net you $445,000, after taxes and expenses, only after you sell. You may have a different opinion about keeping the house vs taking the cash.

What other living options are available to you?

Is there a good alternative, for the single person/single parent you will be? Maybe your house is just too big for your smaller family. Maybe a fresh start would be good for everyone. Are there rental options nearby? Smaller properties available? Keep in mind that there are lots of different places you can call “home.”

Going From We to Me can be very challenging. Avoiding the emotional roller coaster of divorce when making important decisions about your family home isn’t easy- but it can be crucial to your future financial health.. With the help of your advisors and CDFA, make the best decision you can, as a part of a comprehensive plan for continued financial stability and security in the future.

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc.  Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.

ADRIENNE ROTHSTEIN GRACE, CFP®, CDFA
CERTIFIED DIVORCE FINANCIAL ANALYST
1404 SWEET HOME RD, SUITE 9 AMHERST, NY 14228
716-817-6425/FAX 716-313-1754
ADRIENNE@ADRIENNEGRACE.COM
WWW.TRANSITIONINGFINANCES.COM
MEMBER, NYS COUNCIL ON DIVORCE MEDIATION.
EMPOWERING YOU. FINANCIALLY.

SECURITIES AND ADVISORY SERVICES OFFERED THROUGH CADARET, GRANT & CO., INC., A REGISTERED INVESTMENT ADVISOR AND MEMBER FINRA/SIPC. DAVIS FINANCIAL SERVICE AND CADARET, GRANT & CO., INC. ARE SEPARATE ENTITIES.

1. https://www.nerdwallet.com/blog/average-credit-card-debt-household/

Where do YOU stand in relation to the ‘average U.S. Household’?
Do you have one of these- or are you working under the trifecta of debt- with several or
perhaps all of these weighing you down?

How does this make you feel? Are you confident? Scared? Overwhelmed? Do
you need some help?

A financial plan can help you to structure your financial life, so that you can get a better
handle on your debts- and your goals! and move forward in a positive way to a secure
financial future.

As a Certified Financial Planner (CFP®), I help people manage their financial lives with
ease and confidence, and build toward the goals they want to achieve.
Call me for a free consultation about creating your financial plan.

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc.  Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.

Adrienne Rothstein Grace, CFP®, CDFA
Certified Divorce Financial Analyst
1404 Sweet Home Rd, Suite 9 Amherst, NY 14228
716-817-6425/fax 716-313-1754
adrienne@adriennegrace.com
www.TransitioningFinances.com
Member, NYS Council on Divorce Mediation.
Empowering You. Financially.
Securities and Advisory Services offered through Cadaret, Grant & Co., Inc., a Registered Investment Advisor and Member FINRA/SIPC. Davis Financial Service and Cadaret, Grant & Co., Inc. are separate entities.

During this time period, you can ‘true up’ your full contribution for 2018, as well as make your 2019 deposit.

Brace yourself for a lot of numbers —I’m sorry! — but that’s what taxes are all about! If you have questions, or this makes your stomach hurt, just call me and I’ll help explain further (716-817-6425).

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an Individual Retirement Arrangement (IRA) which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50
and over is not subject to an annual cost-of-living adjustment and remains $1,000, for a total of $7,000 for 2019.

If you’re under 50, this means $115.38 per week; if you’re 50+, you can save $134.61 per week for 52 weeks to reach the total.

The income ranges for making deductible contributions to traditional IRAs to contribute to Roth IRAs and to claim the saver’s credit all increased for 2019.

You can deduct contributions to a traditional IRA if you meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced (phased out), until it is eliminated, depending on filing status ( single, head of household, married filing jointly, and married filing separately) and your income. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply, and you can save the full amount.

Call me for the ranges, if you wish, and I’ll pass them along.

If you are negotiating your divorce settlement, please don’t forget to include which filing status you will use for 2018, 2019 and on. It may make a substantial difference in the amount of tax due.

Don’t let this opportunity to save for your future, using either Traditional or Roth IRA options, pass you by. You can gain either tax advantages for your current filing year or enrich your future. Contact me at 716-817-6425 for further information.

Don’t wait too long!

Avoid the common mistakes most women make about money, especially when they are in crisis- divorce, widowed, etc.  Schedule a free consultation with me at Calendly.com/contactagrace; or call me at 716-817-6425.