Law Office of Joanne Kleiner

division of marital assets

May 18

What is a Certified Divorce Financial Analyst?

A Certified Divorce Financial Analyst, or CDFA, is a financial professional who can help with all the financial details pertaining to your divorce. This person typically works alongside a divorce lawyer and has a background in finance or accounting. CDFAs undergo special training to become certified, so they can offer essential advice on all financial areas of a divorce.

Why You Should Hire a Financial Planner for Your Divorce

Going through a divorce is difficult enough. However, there are always many aspects to consider during this time. Finances rank as one of the top reasons why married couples end up ending their marriage in the first place.

Women, in particular, are often concerned about the financial aspects of a divorce. If you are going through a contested divorce, things can get sticky when you want your fair share. A certified financial planner can be a valuable tool to have on your side. There are a few benefits to hiring this professional to help you through the process.

A Financial Analyst Can Save You Time

On average, a divorce in the United States takes around one year to finalize. A CDFA can help explain all the pertinent financial aspects of your divorce. This can save you precious time when you know what to expect concerning separation, spousal support and child support if your marriage produced children. You will have the advantage of being able to make better decisions about finances throughout the divorce process.

A CDFA Can Save You Money

In addition to helping their clients understand more about their basic expenses, financial professionals can also save you money. By giving you a better understanding of all the consequences of your financial choices, you will be more knowledgeable about how to make better decisions about your finances.

A Finance Professional Can Help You Avoid Long-Term Financial Problems

Working with a financial planner during your divorce can help you avoid certain long-term financial problems once you are single. CDFAs can inform you about the long-term effects they foresees in your divorce settlement. They will provide you with details about benefits and tax liabilities alike. This can help you avoid pitfalls that you might otherwise be susceptible to if you did not have a financial professional on your side. The issues a financial analyst can coach you about include events in the immediate future as well as those well into the future, such as your retirement.

An Analyst Can Help You Devise a Budget

Your financial professional can help you create a budget for your monthly spending, which can help you stay in check after your divorce has been finalized. This type of advice is practical and can keep you better balanced in terms of your money and expenses. Items such as rent, health insurance, life insurance and other basic living expenses are taken into account.

A CDFA Can Reduce Problems During the Divorce

A financial professional can also reduce certain problems that can arise during divorce proceedings. It is quite normal for confusion, misunderstandings and nervousness to occur during this stage of your life. Many people who legally end their marriage have a false sense that they will be able to obtain divorce settlements that will allow them to continue enjoying the type of daily lives they led while married. Their former spouses may have a different attitude about this, and as a result, issues can arise. Your financial professional can help ease your mind and allow you to retain stability with your finances while preventing financial mistakes from happening during the proceedings.

While a divorce lawyer is definitely an essential asset to have, you will want a financial professional on hand as well. The former is skilled in the area of the law may not know everything that a CDFA does. Having the two professionals working together on your divorce case can ensure that the proceedings go more smoothly so that you can have a positive outcome.

If you live in Pennsylvania and are going through a divorce, contact the Law Office of Joanne Kleiner for a consultation. Our office is located in Jenkintown and can be reached at (215) 886-1266.

Apr 21

You May Claim Social Security Benefits Based on an Ex’s Work Record

Can I Receive Benefits From My Ex’s Work Record?

You can qualify for Social Security benefits based on your most recent ex-spouse’s work record if you meet a few specific qualifying criteria, and the Social Security Administration will only grant you payments on your ex’s earnings record if he or she qualifies for monthly benefits. Whether or not your former spouse is actively receiving benefits has no bearing on your qualifying for benefits under their record.

Eligibility Requirements

To be eligible to receive payouts under your ex-spouse’s income record, the marriage would have had to have lasted for at least 10 years. You would have been divorced for at least two years and had not remarried. Your ex-spouse would need to be a qualifying candidate that can receive Social Security retirement income or disability benefits. To be eligible for the benefits under your divorced spouse’s earned income, you must be at least 62 years of age.

How Are the Benefits Calculated?

The SSA calculates the higher of the two payments, either yours or your former spouse’s. It will issue checks to you based on one calculation, which means you will be getting the rate that pays you the most benefits. You will not be entitled to receive a double payment.

The most that you will be entitled to receive through your former spouse’s earnings record is 50 percent of what he or she would be entitled to at full retirement age, which is currently 67 years old. If the amount that you would receive based on your own record would be greater than that, then your payments would be based on your personal earnings history, and that of your former spouse’s would be ignored for this purpose. You can get the maximum amount available to you if you file for Social Security benefits when you reach full retirement age. It is important to bear in mind that if you end up getting paid based upon your former spouse’s earnings history, the amount that they are entitled to receive will not be affected in any fashion whatsoever.

If you claim earlier, the benefit amount gets reduced. The payouts can increase by 8 percent every year between age 67 and 70 years if you wait until age 70 to collect benefits. If you delay filing your Social Security payouts past age 70, however, your benefits will not increase further.

What Happens if You or Your Former Spouse Remarries?

If your ex-spouse remarries, your eligibility status for receiving benefits under their record is unaffected. However, if you remarry, you no longer qualify for payments based on your ex’s record.

Filing the Claim

Before you file an application to receive benefits that are based on your former spouse’s income record, contact your local Social Security office to determine if you meet the eligibility requirements and to learn how much of a monthly payment it is estimated that you will receive. You will have to provide certain personal information, including your U.S. passport or another form of legal identification, as well as your divorced spouse’s identifying information. This can include your former spouse’s Social Security number, name, and any other information you may still have access to, such as a marriage certificate and a divorce decree. If you cannot locate those latter documents, you will need to provide the approximate dates of those events.

You can consult a divorce lawyer to ensure your documents are in order. The Social Security Administration will use this information to look up your former spouse’s work history.

The earliest you can file your Social Security claim is three months before you turn age 62. You can file an online application through the Social Security Administration website or by calling the SSA toll-free If you need an in-person interview with a Social Security representative, you should make an appointment with your local SSA office.

If you are confused by the process of claiming benefits from your former spouse, having the help of a divorce lawyer can be important. Contact the Law Office of Joanne Kleiner at (215) 866-1266 to learn more about the specifics of your case.

Feb 17

The Difference Between Equitable and Community Property Division

Equitable and Community Property Division Rules Are Not the Same

More than 700,000 Pennsylvania residents are divorced. This state operates under equitable property division guidelines in divorce proceedings. A spouse who assumes that he or she will automatically walk away with a 50/50 split of marital property is mistaken.

Property Division Rules Vary by State

Divorce laws vary by state. There are currently 41 states that operate under equitable property division guidelines and nine states that use community property rules. In every state, marital property and marital debt refer to assets or liabilities spouses have acquired or incurred during the marriage.

A family court judge overseeing property division proceedings will determine how marital property and marital debt should be split between spouses to settle a divorce. A divorce lawyer can help a concerned spouse protect his or her financial interests in court. Certain divorce-related topics can make property division more complex, such as if spouses have children together and must determine whether they will continue to live in the marital household and, if so, who will live with them as well as who will pay for maintenance and upkeep of the home.

How Equitable Property Division Differs From Community Property Rules

Business partners typically possess shared ownership interests in the assets of their company. If they dissolve their partnership, it is common to divide assets and liabilities between them. It is similar in divorce, meaning that neither spouse has an exclusive right or responsibility to any asset or debt accrued during the marriage. In states where community property division rules apply, all marital assets and debts are equally split, 50/50, between spouses in a divorce. In Pennsylvania and other equitable property states, the division of marital property must be fair but not necessarily equal.

A judge ruling on property division issues in an equitable property state determines how assets and debts should be split so that each spouse receives a fair portion of the overall value of the total assets and the amount of debt to be paid.

Establishing Separate Property Ownership

If spouses signed a prenuptial agreement before their wedding day, it is possible that certain assets or debt have legally been assigned separate ownership or liability to one spouse or the other. Certain issues, such as an inheritance that is designated for one spouse only, may also not be subject to property division in a divorce. Intended spouses can use a prenuptial contract to protect assets or avoid a liability, such as a future spouse’s college loan debt, in case a divorce takes place at some point; this is true whether the state in question has equitable or community property rules.

Equitable Property Rules Enable Asset Trading

In order for a Pennsylvania family court judge to determine a fair division of assets, spouses must fully disclose every asset or property they own. In some cases, it’s possible for spouses to agree to trade assets, meaning they agree to exchange the value of one asset for another. For instance, a car cannot be physically split in two; however, spouses might agree to exchange the value of a car for the value of another asset. Another example might be if a spouse wants to keep the marital home and is willing to exchange his or her value portion of a vacation property or other assets in order to do so. A divorce lawyer can make recommendations to a client regarding specific asset value issues.

Seek Clarification of State Laws Before Heading to Court

Divorce isn’t easy, but it’s often possible achieve a fair settlement and move on with life even if some issues are more complex and challenging to resolve than others. Regarding equitable property division versus community property division rules, it’s critical to understand the difference and to know which laws apply in a specific set of circumstances. If a person lacks knowledge about equitable division guidelines and heads to court assuming that he or she will automatically get an equal portion of assets in a divorce, discovering that this is not necessarily true may have a significant impact on his or her settlement and post-divorce financial status.

It’s always best to act alongside experienced legal representation in court because a family law attorney can protect a client’s rights and financial interests, especially during property division proceedings. If you’re concerned about property issues as you prepare for a Pennsylvania divorce, reach out to a Jenkintown divorce lawyer by calling (215) 886-1266.

Dec 19

Is It Worth It to Fight for the Family Home?

What to Do With the Family Home in a Divorce

Pennsylvania homes have appreciated by nearly 4% in the past year, creating some tough decisions for divorcing couples. Specifically, people are faced with the choice to fight for the family home or leave it. Generally, you have three options: try to fight to keep the home; let your ex-spouse stay, and be paid for your share; or sell the home, and divide the proceeds.

Will the Court Allow You to Stay?

The first thing to think about is whether the court will actually allow a person to stay in the home. Usually, a judge will want to ensure that there is as little upheaval as possible for the children. If they are accustomed to living in the home, the court will not want to make them move. That would not be in the best interests of the children. Accordingly, the parent who has physical custody of the children will have the best chance of keeping the family home.

Can You Afford It?

Moreover, both ex-spouses need to think very hard about whether they can afford the family home on their own after the divorce is final. There is a major difference between affording the mortgage on one income rather than two. It may still be a stretch even if you are receiving child support. The last thing that you would want is to become “house poor,” spending a majority of your income on housing with little to spare for anything else. These days, the ability to refinance your home at a lower interest rate could help with being able to afford the home.

When you are getting divorced, you are also balancing your short-term financial needs and your long-term plan. Things like retirement planning often take a short-term break while you get your financial feet under you after the divorce. However, you should factor in things like whether and when you will be able to retire. If keeping the home comes at the expense of your financial future, you should think hard about whether it is what you want.

Decisions About the Home Can Get Contentious

In addition, fighting to keep the family home would necessarily involve the word “fight.” This means that your divorce can end up in a hostile place. If you have children and need to co-parent, this could pose a long-term complication to a relationship that you need to preserve. While this is not to say that you should automatically surrender to what your ex-spouse wants in the name of harmony, you should recognize that it will come at a cost.

Finally, you need to weigh the factors of wanting to maintain continuity versus being better off with a fresh start. Some people may benefit from moving somewhere else, especially if staying in the same place will consume them with unpleasant memories. However, others may want to stay where they are because there would be too many changes for them to process.

In your particular case, you need to decide what is best for your specific situation. The one unchanging factor is that you need to be honest with yourself and realistic, both in terms of what you can afford and whether you can agree with your ex-spouse. You have multiple options that you need to consider while working together with your divorce attorney. Deciding to fight to keep the house can be stressful if that is your preferred course of action.

Although it may require some maneuvering, there is a way that both individuals can keep the home together, even after the divorce, in a collaborative manner. Before you decide on one course of action, consult with your divorce lawyer about the strength of your claim and whether there are any other possible solutions. Keeping or giving up the home may not necessarily be an either/or proposition.

To learn more about this and other issues affecting your legal case, contact a Jenkintown, PA, divorce lawyer at the Law Office of Joanne Kleiner at (215) 886-1266.

Nov 18

How the Pandemic Has Put a Strain on Household Finances

How to Manage Household Debts During the Pandemic

As of October 2020, the unemployment rate in the United States was 7.9%, and the unemployment rate had been as high as 14.4% in May 2020 when the pandemic was at its spring peak. Although eviction moratoriums and other protections have been put in place to help the unemployed, they can’t guarantee that you’ll enjoy financial security now or in the future.

What Happens If a Joint Debt Isn’t Paid as Agreed?

If your name is on an account that is more than 30 days past due, your credit score could fall by anywhere from 60 to 150 points. Furthermore, you may be subject to a barrage of phone calls, letters, or other attempts to collect the past due balance. This may be true even if your estranged or former partner is required to pay off a joint debt per the terms of a separation or divorce agreement.

Typically, your lender is only bound by the terms of the documents that were signed prior to receiving a loan. Ideally, a divorce decree will allow you to transfer debts that your spouse is required to pay to an account in that person’s name only.

In the event that a debt is secured by collateral, you risk losing that collateral unless an effort is made to get current on the loan. For instance, a lender could repossess a family car or foreclose on a family home if payments are not made in a timely manner.

Try to Avoid Using Retirement Funds to Repay Marital Debts

It may be tempting to use retirement savings to pay a joint credit card balance or make a mortgage payment. However, it is worth noting that money that sits inside of an IRA or 401(k) is typically exempt from being seized by creditors or by state or government tax authorities. It is also worth noting that your retirement accounts are generally seen as joint assets even if your name is the only one on them.

Therefore, making a withdrawal prior to filing for a divorce may be used against you during settlement talks or during a divorce trial. This may be true even if the money was used for what you perceived to be a legitimate purpose. A divorce lawyer may be able to provide more insight into what might happen to marital assets just before, during, and after a marriage ends.

Get in Touch With Your Lenders Immediately

In most cases, your lenders will work with you to make it easier to stay current on a loan during a period of economic distress. For example, you may be entitled to a student loan, car, or mortgage forbearance, which might make it possible to skip or postpone one or more monthly payments. If you have positive equity in a car, home, or other assets, it may be worth selling it and using the proceeds to buy food or take care of other necessities.

In some cases, alleviating your financial stress may alleviate issues in your marriage that might have put it on the brink of failure. For instance, getting mortgage forbearance may mean that you don’t have to move your child out of a quality school district or move from a home into a cramped apartment. It might also mean that your spouse doesn’t need to get a job outside of the house that could negatively impact his or her health.

However, if you feel as if your marriage is likely going to come to an end in the near future, it may be in your best interest to speak with a divorce lawyer. He or she might provide more insight into how joint assets and debts are typically divided in a divorce proceeding.

If you are in need of divorce legal services in Jenkintown, contact the Law Office of Joanne Kleiner today by calling 215-886-1266 or by sending a fax to 215-886-2670.