Top 4 Questions You Should Ask Yourself if You are Considering a Divorce

* I am not a lawyer or an attorney - just in full disclosure. Before you listen to or take action on purely my opinion, please consult your own legal council. This SHOULD NOT BE used as legal advice. So, with that being said, please enjoy the article below.....

Divorce can be a devastating event. No matter who is touched by divorce, the toll can be overwhelming both emotionally and physically. The financial aspects can be devastating, as well, if you do not make sure you have things in order before the event occurs.

There are four questions you should ask yourself before and during a divorce to create as favorable of a financial situation as possible when the dust settles.

What Do We Do with the House?

The home mortgage can be a complicated matter when the family residing in the home experiences a divorce. Since finances and living arrangements will change as a result of the divorce, there are three options a couple has to split up this valuable asset.
Split the equity. The easiest way to split the equity in a home is to sell it and split the proceeds. This is a common option with many divorcing couples, particularly when another option cannot be agreed upon. When the mortgage principal is too high, selling the home is usually the best option.

One spouse buys out the other spouse’s equity. One way to accomplish a buyout is to refinance the home. During closing the selling spouse receives their share of the equity of the home. At this time, the selling spouse can remove their name off the home. It should also be noted that there are several different costs associated with refinancing. These should be taken in consideration when negotiating a divorce settlement.

Maintain the status quo. This option does not sell or refinance the home. One spouse simply moves out of the home and waits until a future date when the home is sold. This is advisable when there are children involved. This is a good option if the children are older, such as in high school. When the children move out, the house can be sold and the equity split at that time.

What are the Laws on Divorce, Child Custody, and Property/Debt Division Laws in Your State?

There are many factors involved in a divorce. Rarely is the actual divorce the only legal matter the separating couple will need to deal with during the divorce process. In most cases there are either children or debt involved. In many cases, there are both.

Each state deals with these matters differently. If you are considering a divorce, make sure you fully understand the laws on the matters that have a direct impact on your divorce (child custody and/or property/debt division) so there are no unexpected surprises at the end.

Two good sources to determine what the laws are in your state are DivorceNet and DivorceSource.

Nebraska is an "equitable distribution" state. This does not mean that property is necessarily divided equally, but rather what is fair in each circumstance. In addition, child support is determined by parental income.

What are My Assets and Debts?

One of the more complicated aspects of a divorce is the division of both the assets and the joint debt. It can difficult to know exactly how much you have of each without a thorough examination of each item.

Make a list of all of assets in the marriage. While including large things like the house and cars are relatively easy, you must not overlook some of the seemingly smaller items that can add up. Don’t forget less than obvious things like the contents of a safety deposit box or collector’s memorabilia. These items may add very real value to your overall worth.

Being knowledgeable of exactly what type of debt you and your soon-to-be ex spouse is extremely important. Examining items like your mortgage, credit card debt, car loans, and related information helps create a level playing field for both parties. Nothing would be worse than discovering you are totally responsible for a debt you forgot to disclose during divorce proceedings.

Do I Need a Lawyer?

While many may argue that a divorce lawyer is not a necessity in every divorce, it is hard to deny the benefit they bring during a difficult time. Selecting the lawyer that is right for you is not as difficult as it might sound.

First, select a qualified and experienced divorce lawyer. Also take into consideration what the lawyer will charge. In the end, these fees will only increase the cost of the overall divorce process.

A divorce lawyer is skilled in the laws as it relates to the laws that govern the process and is necessary for that reason. However, they are not vital for ironing out the fine details of the divorce. When issues like custody or unique financial matters are involved in a divorce, mediators often make the process smoother and much cheaper than your divorce lawyer would.

There are a number of rather complicated questions that should be asked and eventually answered if you are considering a divorce. By thoroughly examining all the issues early in the process, you can potentially save everyone involved with your divorce a great deal of frustration during your proceedings and well into the future.

Benefits of Using a Local Lender for Your Home Loan Needs

If you are looking to purchase a new home or refinancing your current home loan, finding a mortgage banker that has your needs as their top priority can be a daunting task. Large mortgage companies with slick ads can be tempting. However, local lenders frequently offer a personalized service based on your specific needs that the larger lending institutions simply cannot offer.

Unique Needs – Unique Perspective

All lenders are not created equal. Your local lender brings a common sense approach to lending that the larger lending institutions don’t offer. A mortgage loan officer that works and lives within your community knows your unique circumstances and bases their recommendations on that.

Since you are dealing with a “real person,” rather than a large institution when you approach your local lender about a possible real estate investment, their customized approach to underwriting gives you exactly what you need for making a well-informed decision.

When looking to underwrite a conventional, FHA, or VA loan, a local lender is able to help you examine all factors pertaining to your loan, such as the appraised value, credit scores, debt ratios, assets, among other important loan related factors.

Different Loan Parameters

Local lenders are allowed to use their own “common sense” underwriting guidelines and are not restricted by the government regulated Fannie Mae and Freddie Mac institutions. This opens up more options and competitive rates that large lenders simply cannot compete with in the current “Square Peg Square Hole” lending environment.. In the new housing economy, this is where a local lender makes all the difference. Competitive interest rates and in-house underwriting are more important than ever.

“Hands On” Involvement

The active participation of the local mortgage banker allows them to be intricately involved in each aspect of your lending experience. Make sure your local lender prepares their own closing documents and funds their own loans. The fact that they fund their own loans allows them to secure the most competitive interest rate possible.

They also offer superior customer service that cannot be matched by a large, faceless firm. Phone calls can quickly be returned, as well as email answered quickly, by the local lender. In addition, they aren’t confined by local business hours. If you have a question after business hours, you can get in contact with a real person who is as flexible as you need them to be.

Customized Approach

Local mortgage lenders give each customer a customized approach. What may be right for one customer may not be right for the other. A local mortgage banker recognizes this fact and presents information according to the customer’s needs, not based on what is best for the larger institution.

Once you decide you are ready to buy, who wants to get bogged down in lengthy paper work and other corporate red tape? Keeping your entire real estate investment with a local firm offers timely processing of your loan. From application to closing time, the time investment is typically 3 weeks or less.

Consider using a local lender on your next home loan, the largest liability and asset you have, is a wise choice. A local mortgage banker will provide you with the best service to help you meet your long term financial goals.

How to Take a Luxury Vacation on a Budget

With the current crunch of the economy, taking a luxury vacation might seem impossible. But, this is just not true! No matter what your financial constraints are, there are a few things that you can do to create a vacation that your family will not soon forget.

A “luxury vacation” is really more about what it means to you than each detail of the trip. There are ways you can cut a few corners to give you and your family the vacation they want without an exorbitant price tag. 

Focus on What’s Important

Everyone has their own idea of what true “luxury” is. Determine what part of your vacation is the most important to you and focus your time and money in that area. Ask each family member what their idea of a “perfect vacation” is and make sure you allot a certain amount of money for that particular aspect of your trip.

Just as you focus on particular areas, you should determine what areas are simply not all that important to you and your family. These are the areas that you can easily cut back on or completely eliminate and save a bundle of money.

A few key areas that you can focus on focusing on or eliminating:

- Food. Is gourmet or specially prepared cuisine at the top of your list of great things? If not, focus on low cost meal or renting sleeping quarters with a kitchen to prepare the food yourself.

- Transportation. If you are renting a car, rent a smaller car. You can also call your credit card company and ask if they offer “loss and damage” coverage. If so, you can waive your car rental insurance fees and save $10-$15 a day.

- Hotel. If you plan to just sleep in your hotel, this is an easy area to cut back on since you won’t be using it much. Also, consider renting a home from a local, it is usually cheaper than a hotel.

- Activities. Spend money on the places that really are important and cross the other “non essentials” from your list. Spend time where you know you will make the best memories.

- Travel. Buying discounted plane tickets is a great way to save money but the airline’s ability to bump your flight time also increases with this “deal.” Determine if time or price is more important and make your reservations accordingly.

Start Saving Today

The time to start financing your family’s dream vacation starts long before you ever take it. Make a habit of regularly saving for your family vacation. Work a fixed amount into your monthly budget and continually add to it so there is money available when the time rolls around.

Do not fall into the trap of using credit to finance your trip. While this might seem like an easy fix initially, it becomes difficult to pay it off. Then you quickly watch your “dream vacation” turn into a financial nightmare. Now, you are not only paying for the trip itself, but also related financing fees. Suddenly traveling on a budget flies out the window and you are faced with debt.

Not only is saving today a great idea to avoid the credit trap, you can also make easy changes all year round that creates more money for vacations down the road. For example, if you eat out every day at lunch, take your lunch two days a week and put that lunch money towards your future vacation.


Reconsider the Destination

While vacations like Disney World or a Caribbean cruise are popular family vacations, they also come with a hefty price tag. Their popularity gives them the ability to charge outrageous prices on the simplest of conveniences.

Consider visiting a destination that most people don’t think of when they dream up a great vacation. Visit state websites in the travel section and see what suggestions they offer. These type of hidden vacation gems offer more affordable luxurious options at a dramatically reduced price. While you might not be able to afford the “finer things” on a higher end vacation, those same things may be well within your reach off the beaten path.

Visit During the Off Season

Prices reflect the demand of luxury vacation spots. During times like summer and Christmas vacation, you can expect your ideal vacation spot to be willing and ready to charge you a much higher fee because they know that many will pay it for the convenience of this time slot.

Consider taking a vacation during a non-peak time. Times like Easter or Thanksgiving might give your family a special time to get away without breaking the bank.

Vacations are an important part of life and family traditions. A luxury vacation is not completely out of your reach if you cut a few corners to spend your money and efforts on the things that are truly important and you will create a vacation that you will not soon forget.