The Tax Side of Divorce: Protecting Your Financial Future

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Navigating a divorce is an emotionally taxing journey, but the long-term financial and tax implications often present a secondary, complex challenge that requires careful strategy. In this episode of Her Wealth: Unscripted, Sarah Gelsheimer sits down with Susan Jones—a tax attorney, CFP®, and Certified Divorce Financial Analyst—to discuss how to protect your assets during and after a marital split. We explore why the timing of your filing status matters, the hidden "tax traps" in keeping the family home, and why $1 million in a Roth IRA is vastly different from $1 million in a traditional IRA. Our goal is to empower you with the technical knowledge needed to make informed decisions during a time of significant personal upheaval. You’ll learn: * Why your filing status on December 31st dictates your entire tax year. * The reality of "Joint and Several Liability" and why filing jointly isn't always the best move. * How the 2018 tax law changes eliminated the "win-win" deduction for alimony. * The critical difference between $250k and $500k capital gains exemptions when selling a home. * Why keeping the family home might leave you with fewer liquid assets than you realize. * How to negotiate the division of estimated tax payments before the papers are signed. * The importance of tax projections to avoid an "April Surprise" post-divorce. Chapters: 00:00 – Introduction to Susan Jones and the CDFA Credential 01:45 – Why Women Often Face Greater Risks in Divorce Financials 03:19 – Timing the Split: Deciding When to File 04:14 – The Risks of Joint Tax Liability 05:33 – Post-2018 Alimony Rules and Retirement Impacts 06:44 – Head of Household Status and Child Tax Credits 09:14 – The "Home Trap": Capital Gains and Cost Basis 13:00 – Liquid Assets: Roth vs. Traditional IRAs 16:18 – Managing Estimated Payments and Tax Projections At Sorelle Wealth Partners, we believe that financial clarity leads to confidence. For more insights on navigating complex financial transitions, visit the Sorelle Journal at our website. If you are currently navigating a divorce and need a specialist's eye on your assets, we are here to help. Material prepared herein has been created for informational purposes only and should not be considered investment advice or a recommendation. Information was obtained from sources believed to be reliable but was not verified for accuracy. It is important to note that federal tax laws under the Internal Revenue Code (IRC) of the United States are subject to change, therefore it is the responsibility of taxpayers to verify their taxation obligations.

Investing in Volatile Markets: Staying the Course When It’s Hard

Market volatility can feel like turbulence on a flight—uncomfortable, scary, and enough to make you grip the armrests. However, just as turbulence doesn't mean the plane is going down, market fluctuations are often simply the "cost of admission" for achieving long-term returns. In this episode of Her Wealth: Unscripted, Susan Jones and Sara Gelsheimer dive deep into the psychology of investing during uncertain times. They discuss the hidden dangers of "sitting in cash" and share compelling data on why missing just a few of the market's best days can drastically impact your retirement nest egg. Whether you are a seasoned investor or just starting your accumulation journey, this conversation provides the technical and emotional grounding needed to turn market fear into a long-term opportunity. You’ll learn: * The Cost of Admission: Why volatility is an inseparable part of outperforming inflation over time. * The "Right Twice" Trap: Why timing the market requires being right when you sell and when you buy back in—a feat even professionals rarely master. * The Power of Presence: How missing only 10 to 20 of the best trading days over a 20-year period could cut your potential returns by more than half. * Cash Isn't Risk-Free: The "gut punch" reality of opportunity cost when leaving assets in cash for decades. * Diversification as a Sleep Aid: How asset allocation across sectors and global markets provides stability when domestic markets struggle. * The "Advanced Class" Mindset: How to reframe a market dip as a "fire sale" and use systemic investing to buy on discount. * Actionable Anxiety Relief: Practical steps to take—and things to stop doing—when you feel the urge to make a rash financial move. Chapters: * 00:00 – Welcome to Her Wealth: Unscripted * 00:57 – Acknowledging the emotions behind turbulent times * 01:20 – Volatility: The price you pay for returns * 03:40 – The hidden risks of sitting in cash and the "Roth gut punch" * 06:41 – The danger of trying to time the market * 09:01 – The $500k Example: The high cost of missing the best trading days * 12:12 – Moving to the "Advanced Class": Reframing market dips as sales * 15:18 – Diversification and understanding Asset Allocation * 19:59 – The case for Global Diversification and avoiding Home Bias * 23:28 – When your "Sleep at Night" factor triggers an allocation change * 26:29 – Practical tips: How to avoid rash decisions during volatility * 29:59 – Closing: It’s more than numbers, it’s the life they make possible At Sorelle Wealth Partners, we believe that financial clarity leads to confidence. For more insights on navigating complex financial transitions, visit the Sorelle Journal at our website. If market volatility is keeping you up at night, we are here to help you assess your strategy and stay the course. #CompoundInterest #InvestingFacts #RetirementPlanning #StockMarketNews #WealthGap #SorelleWealth Any rates of return, investment outcomes, performance illustrations, or year-over-year return examples discussed in this presentation are hypothetical and are provided solely for educational and informational purposes. These examples do not represent the actual performance of any client account, portfolio, or investment strategy and should not be relied upon as an indication of future results. Hypothetical returns are based on assumptions that may not reflect actual market conditions, investment decisions, fees, expenses, taxes, or other factors that can materially impact investment performance. Actual results will vary and may be significantly different from those discussed. Nothing contained in this presentation should be construed as investment, legal, or tax advice, or as a recommendation to buy or sell any security or adopt any particular investment strategy. All investments involve risk, including the possible loss of principal, and past performance is not indicative of future results.

20. maj 202630 min

The Tax Side of Divorce: Protecting Your Financial Future

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