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Austin, TX 78759
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Divorce Decrees

Over $11 BILLION in delinquent child support in Texas…and counting!

Dan Johnson, Certified Divorce Financial Analyst

September 2012

In the State of Texas, payers owe more than $11 BILLION in back child support and nearly 50% of payers are currently delinquent on payments!

Getting the proper guidance and advice on the “realities” of “Divorce” is not always are straight forward as you think! Divorce decrees do not trump contract law or the IRS and do not safeguard individuals from the realities of “agreements” or making poor financial decisions. In other words, just because something is in the Final Decree of Divorce” does not necessary mean it will happen or execute as intended!

But my “Decree of Divorce” says….!!!! Unfortunately, the divorce decree does not always dictate the actual outcome of “what is intended” or even “what is agreed to” in the document. Too often, critical mistakes and extremely costly errors occur in divorce situations due to a lack of understanding and preparation. Unfortunately, many of these situations and tragedies could have been avoided or safeguarded against with some simple planning. Extremely costly mistakes often occur with child support, retirement accounts, debt and real property issues:

– Child Support –

  • What happens if my “ex” can’t pay or won’t pay child support?
  • What happens to future payments if my ex dies??

– Retirement Accounts –

  • Where’s my money?! I was awarded retirement accounts and haven’t seen anything!
  • Why was the amount I received LESS than was awarded in the Decree?
  • Why does the plan administrator keep rejecting the QDRO?
  • Why did my CPA inform me that I now owe income tax on every penny of the retirement money awarded to me AND a 10% IRS penalty too!

– Secured & Unsecured Debt –

  • My “ex” was awarded the credit card debt…why are the credit cards companies harassing me for collection?
  • Why has my credit score been trashed if my “ex” was awarded the debt?
  • Why is the IRS sending me letters stating that I owe them money?

– Property Titling –

  • Why can’t I close on the sale of my house?
  • Why is my “ex” still listed as an owner of my house if it was awarded to me in the Decree?
  • Why don’t I qualify for refinancing!

Unfortunately, too many women attempt the divorce process without the assistance of a financial expert (especially one that understands the intricacies of divorce!). Or, they simply assume that their attorney will guide and advise them on all the financial matters (big mistake!). While attorneys play a critical role in the process of divorce, they usually are not trained in the intricate financial details that concern tax issues, IRS rulings, real property issues, dividing pensions, etc. Making the biggest financial decision of their lifetime should not be taken lightly. Information and knowledge is paramount to obtaining a “fair and equitable”…or “good” settlement and making sure the agreement is grounded in reality. But beyond that, it is extremely important to NOT rely solely and simply on “what is in” the Final Decree of Divorce”!!

Whether your clients are considering divorce, going through a divorce or after a divorce – our mission is to educate, empower and provide resources to women going through this difficult period in their life.