Divorce Happens

You submitted your burning financial divorce questions to me and I'm here to answer them.

Here are my top 5 tips when it comes to finances and divorce:

YOU ASKED: Is spousal support tax-free?

If you're watching Real Housewives of Beverly Hills- Sutton gets 200k a month TAX FREE in support from her ex-husband. WOW! But the tax-free thing is not across the board- it really just depends on the state you live in! If there's one thing that's for SURE when it comes to prenups & divorces, it all depends on WHAT STATE you do it in. All states have different divorce laws, so research which ones pertain to where you live. But on a federal level, spousal support is not tax deductible by the person PAYING the alimony, however, the person receiving the alimony does not have to report it as taxable income.

YOU ASKED: Are family trusts protected without a prenup?

The short answer to this is yes! I actually have a super rich friend who just got married NO PRENUP because all of his money is in trusts. Trusts and prenups are two separate entities. And if a trust is created BEFORE a marriage, this secures your personal assets in the property of a trust.

YOU ASKED: Why is divorce so expensive?

Okay, I literally made a video all about this & figured out the cheapest way to get it done. Truly a MUST WATCH & one of my favorite videos we have made yet. If you feel a divorce coming, are getting a divorce, or have a friend going through it, watch this.

YOU ASKED: What are top protective clauses I should include in my prenup?

Most resources would agree that there are a top 10 most important protective clauses to include in a prenup:

• Disclosure of Financial Information
• Property and Income
• Debts and Liabilities
• Inheritance Rights and Estate Planning
• Alimony and Spousal Support
• Business Interests, Waivers and Promises
• Division of Assets in the Event of a Terminating Event
• Gifts
• Confidentiality and Other Provisions
• Customization

YOU ASKED: I make less but have a bigger 401k. Would I have to give him some?

If you don't have a prenup, then yes, you could be subject to dividing your 401k earnings depending on the state you live in! In some cases you have to give up half, in some cases you'd have to give up part.