Helping you achieve your personal vision based upon your individual needs, goals and risk tolerance..

Pandemic Relief Measures and Your Tax Return

Two emergency relief bills passed in 2020 in response to the COVID-19 pandemic will make this an unusual tax season for many taxpayers. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in March, and a second relief package was attached to the Consolidated Appropriations Act, 2021, in December.

The federal government relied on the tax system to deliver financial lifelines to struggling households, boost consumer spending, and help speed the economic recovery.

The following provisions may affect many households when they file their personal tax returns for 2020. You might consult a tax professional who can further explain the relevant changes and recommend strategies to help reduce your tax liability for 2021.

Recovery Rebate Credit

Most U.S. households received two Economic Impact Payments (EIPs) from the federal government in 2020. They are not taxable because technically they are advances on a refundable credit against 2020 income taxes.

The CARES Act provided a Recovery Rebate Credit of $1,200 ($2,400 for married joint filers) plus $500 for each qualifying child under age 17. The second bill provided another $600 per eligible family member.

Any individual who has a Social Security number and is not a dependent generally qualifies for the payments, up to certain income limits. The amounts are reduced for those with adjusted gross incomes (AGIs) exceeding $75,000 ($150,000 for joint filers and $112,500 for heads of household) and phase out completely at AGIs of $99,000 ($198,000 for joint filers and $112,500 for heads of household).

In order for the money to be delivered quickly, eligibility was based on 2019 income tax returns (or 2018 if a 2019 return had not been filed). Eligible taxpayers who did not receive two full payments, possibly due to errors or processing delays, may claim the money as a Recovery Rebate Credit on their 2020 tax return. Households that reported a lower AGI in 2020 (or added a dependent) might be eligible for additional funds. To calculate the credit, filers will need to know the amounts of any payments they already received. The credit amount will increase the refund or decrease the tax owed, dollar for dollar.

Taxpayers who received two full payments don’t need to fill out any additional information on their tax returns. The IRS will begin accepting 2020 tax returns on February 12, 2021; filing electronically usually results in a faster refund.

Coronavirus-related distributions

Another measure in the CARES Act allowed IRA owners and employer-plan participants who were adversely affected by COVID-19 to withdraw up to $100,000 of their vested account balance in 2020 without having to pay the 10% tax penalty (25% for SIMPLE IRAs) that normally applies prior to age 59½.

Still, withdrawals from tax-deferred retirement accounts are typically taxed as ordinary income in the year of the distribution. To help manage the tax liability, qualified individuals can choose to spread the income from a coronavirus-related distribution (CRD) equally over three years or report it in full for the 2020 tax year, with up to three years to reinvest the money in an eligible employer plan or an IRA.

Taxpayers who elect to report income over three years and then recontribute amounts greater than the amount reported in a given year may “carry forward” the excess contributions to next year’s tax return. Taxpayers who recontribute amounts after paying taxes on reported CRD income can file amended returns to recoup the payments.

Qualified individuals whose plans did not adopt CRD provisions may choose to categorize other types of distributions — including those normally considered required minimum distributions — as CRDs on their tax returns (up to the $100,000 limit).

Other notable changes

The special rules for charitable gift deductions enacted for 2020 have been extended through 2021. For those who itemize deductions, the limit on the charitable gift deduction increased to 100% of AGI for direct cash gifts to public charities. For nonitemizers, a new $300 charitable deduction for 2020 and 2021 direct cash gifts to public charities is available. For joint filers, this deduction increases to $600 for 2021 cash gifts to charitable organizations.

The floor for deducting medical expenses has been permanently lowered to 7.5% of AGI. (It was scheduled to increase to 10% in 2021.) And starting in 2021, there is no deduction for qualified tuition and related expenses. Instead, the modified adjusted gross income (MAGI) phaseout range for the Lifetime Learning credit was increased to be the same as the phaseout range for the American Opportunity credit ($80,000 to $90,000 for single filers; $160,000 to 180,000 for joint filers).

A temporary provision that allows taxpayers to exclude discharged debt for a qualified principal residence from gross income was extended through 2025, though the limit has been reduced from $2 million to $750,000. Also, through 2025, employers can pay up to $5,250 annually toward employees’ student loans as a tax-free employee benefit.

Yes, unemployment aid is taxable

The number of unemployed workers spiked above 22 million in March 2020, and more than 9 million people were still out of work at the end of the year.1 Both relief bills expanded unemployment benefits and provided them to many workers who normally are not eligible (including the self-employed, independent contractors, and part-time workers).

Unemployment benefits, which sustained many families impacted by the pandemic, are considered taxable income, and many recipients may not have correctly withheld taxes from their 2020 payments. Avoiding a surprise tax bill typically requires opting into a 10% withholding rate and, in some cases, paying additional quarterly taxes during the year.

Last year was unpredictable, and your financial situation may have been far from normal. You should file your 2020 tax return by the April 15 deadline, even if you are worried that it’s going to show a balance due.

Being up-to-date on filing is generally required to pursue a payment agreement with the IRS. If you owe $50,000 or less, you may even be able to apply online for a short-term extension (up to 120 days) or a longer payment agreement. Paying as much as you can afford can help limit penalties and interest that accrue on unpaid amounts.

1) U.S. Bureau of Labor Statistics, 2021
Securities offered through Raymond James Financial Services Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Advisers, Inc. Carver Financial Services, Inc. is not a registered broker dealer and is independent of Raymond James. The information contained in this Client Memo does not purport to be a complete description of securities, markets, or developments referred to in this material. The information developed by an independent third party has been obtained from sources considered reliable, but we do not guarantee that the foregoing is accurate or complete. No tax or legal advice is given or intended, you should discuss any tax or legal matter with the appropriate professional.

Past performance does not guarantee future results. Any information is not a complete summary or statement of all available data necessary for making an investment decision. You should discuss any tax or legal matters with the appropriate professional. Past performance does not guarantee future results. Carver Financial Services is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc., member FINRA/SIPC.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2021.

Randy Carver named to Forbes’ 2021 Best-in-State List of Top Wealth Advisors

February 11, 2021 – Randy Carver, RJFS Financial Advisor was recognized on Forbes‘ list of Best-In-State Wealth Advisors, as one of the top advisors in Ohio. Out of approximately 32,725 nominations, more than 5,000 advisors received the award nationwide. Randy Carver was ranked #5 out of the 161 recognized in Ohio. This is the fifth year in a row that Randy has been included on this prestigious list of top wealth advisors from national, regional, and independent firms.

Click here to view the profile on the Forbes list.

The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research is based on an algorithm of qualitative criteria and quantitative data. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weighs factors like revenue trends, AUM, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 32,725 nominations, more than 5,000 advisors received the award. This ranking is not indicative of an advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC.

 

The Five Biggest Mistakes Investors are Making (They are the Same as Always)

As we begin 2021, and people speculate on the impact of the new Presidential Administration, could the broader equity markets correct (or, according to the media, crash)? Yes!

Will there be uncertainty in the markets? Yes!

It’s really not a question of if the markets will drop, but when. The real question is, to what extent may the next downturn affect you? Market drops are a regular part of the longer-term investment cycle, and we expect they always will be. The real question is not ‘what will happen’ but ‘will it impact me’? With proper planning volatility can be helpful.

Some people are not hurt by market drops, some are negatively impacted, and others actually benefit from them. The choice is largely yours. What makes the difference in how market fluctuations will affect you is generally how well you plan, rebalance your portfolio and react calmly to those fluctuations. Market drops can provide an opportunity for tax-swaps, shifting from tax deferred funds to tax-exempt and for rebalancing your portfolio.

Market corrections, uncertainty and media hype is nothing new. Neither are the five biggest mistakes many investors make. Here they are, along with our recommendations for steering clear of them.

Mistake #1: Trying to time the markets

It is difficult, if not impossible, to time markets. You have to be right about when to get out and when to get back in. The basic principle of investing says you should buy low and sell high. You want to sell when stocks are dropping and buy when the market begins an upswing. The problem is, unless you have some kind of crystal ball or illegal insider information, you won’t know exactly when to buy or sell.

According to research from Fidelity, the cost of poor market timing could be hundreds of thousands of dollars over your investing career. According to Fidelity’s data, if you invested $10,000 in an S&P 500 index from Jan. 1, 1980, through Dec. 31, 2018, you’d have a whopping $659,515 by the end of that period, assuming you were invested for all of the days in that time frame.*

But if you missed just a few key days, your portfolio would be at least 35 percent smaller — and potentially much smaller than that. And if you missed the 50 best days, you’d have 91 percent less than if you’d just left your money alone the whole time.

Pulling your money out of the stock market and putting it in based on economic forecasts and news is never a good idea. Doing so makes it likely that you’ll miss out on most, if not all of the key days that drive your profits. Again, keep your eyes on your long-term vision. Resist the temptation to react to fluctuations in the market.

Mistake #2: Failing to understand that building wealth over time is not about picking winners or capturing upside, but about minimizing volatility

Investors tend to focus on investment returns, but returns do not tell the entire story. Consider one investment that has averaged 25 percent per year over the past two years and another that has averaged 5 percent. Which one made more? We don’t know; it depends on several factors.

So how do you minimize volatility? By staying your course over the long-term. Instead of focusing on returns and stock prices, focus on how well you’re doing according to the long-term goal you’ve set.

Mistake #3: Focusing on perceived risks and missing the real risks

For example, many people are concerned about market fluctuation, while they should be more concerned about being exposed to inflation risk. They keep money in cash or bonds because it seems safe, but cash and bonds might not keep up with inflation. Another mistake investors often make in this regard is that they often fail to consider interest rates — the risk that bonds will go down in value if interest rates rise.

Work with your financial advisor to determine what real risks you should focus on.

Mistake #4: Having unrealistic or simply wrong expectations

This is true for both withdrawals and returns.

Many times, investors base their expectations on the market’s past performance. In the past 10 years, the S&P 500 returned more than 13 percent on an annualized basis. That’s higher than normal, and it could change at any moment. In 2020, markets were coming off a strong 2019, when stocks and bonds around the world climbed. But for the next year — and decade, in fact — Wall Street is telling investors to set their expectations considerably lower.

Instead of basing your expectations on what the market has done in the past, again, slow and steady wins the race. Consider how your portfolio performs over 10, 20, or 30 years, not year to year.

Mistake #5: Picking the wrong advisor

And that advisor might be you! Some people have the time, knowledge and information to do their own financial planning. What’s tougher, though, is having an impartial view. This is why lawyers do not represent themselves in court, and doctors do not treat themselves. For that same reason, it’s not a wise idea for most people to do their own financial planning. You don’t know what you don’t know! Overlooking the tax consequences of a single decision or investing money in a less-than-ideal way during a particular life stage can cost you dearly. A trusted advisor can help you avoid the first four mistakes and create a plan that meets your needs, risk tolerance and overall vision.

A mistake that’s almost as risky as choosing the wrong financial advisor is having no advisor at all. Why leave something this important up to chance?

Vanguard, one of the world’s largest investment companies, has reported for the past 15 years that there is a quantifiable increase in return from working with a financial advisor. Vanguard calls this advantage the “Advisor’s Alpha.” The company notes that when investors follow certain best practices, the result can be an Alpha in the 3 percent range per year. And a study by Russell Investments, a large money management firm, came to a similar conclusion. Russell estimates that a good financial advisor can increase investor returns by 3.75 percent net of expense annually.

Establishing your financial plan with the help of a trusted financial advisor and sticking to it is the best way to avoid these common mistakes. Financial mistakes are typically costly, and in some cases, they are irreversible. An adage says, “A stitch in time saves nine.” Preventing a mistake is much easier than trying to do damage control once it’s been made!

Our firm has more than 30 years of experience in helping clients. While markets, the economy and investments continue to evolve, we see that people often make the same mistakes without the help of a trusted advisor. Please contact us with questions, for a second opinion, or if we can otherwise be of service. We are here for you. Your vision is our priority.  

Randy Carver is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Randy has more than 32 years of experience in the financial services business. Carver Financial Services, Inc. was established in 1990 and is one of the largest independent financial services offices in the country, managing $1.94 billion in assets for clients globally, as of January 2021. Randy and his team, work with individuals who are in financial transition as a result of divorce, retirement or the sale of a business. You can reach Randy at randy.carver@raymondjames.com.

________

The information contained in this report does not purport to be a complete description of the securities, markets or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Randy Carver and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

The S&P 500 index is comprised of approximately 500 widely held stocks that is generally considered representative of the U.S. stock market. It is unmanaged and cannot be invested into directly. Past performance is no guarantee of future results.

* This is a hypothetical example for illustration purpose only and does not represent an actual investment. Actual investor results will vary.

Tax Time and Delayed Reporting – What You Can Expect and When Will You Get It?

Over the last few years, there has been a pattern of delayed tax reporting due in part to delayed clarification from the IRS and legislation. We expect this to be the case for the 2020 documents. With this in mind, we recommend that while you work on your returns as soon as possible that you wait until April to file your tax return and consider filing for an extension if you anticipate needing the extra time. Please note that even if you file an extension, your full tax payment is due by April 15th. 

Expect Reporting Delays

If you file your taxes and then delayed documents come in, you may need to file an amended return. Raymond James does everything they can get information out in a timely and accurate fashion. The following will give you an idea of when you can expect forms.    

Because there are often last-minute corrections and delays, many companies will not mail the first round of 1099s until February this year. The first round of 1099s is expected to be sent between February 15th and 28th, 2021.  What the IRS terms “delayed 1099s” will not be sent until March 14th. Raymond James has told us they will be mailing 1099s as soon as they receive information from investment companies, however, they expect delays just like in 2020.

All tax documents are available via the Client Access online portal as soon as they are generated. You may also give your CPA access to these electronic documents by setting up Third-Party Investor Access. Our client concierge team can help you set up Client Access and third-party access if you wish to do so. 

It is important to note that certain investment types are prone to income reallocation. It is also important to note how some distributions are reported so that you avoid paying unnecessary tax. This is one reason we recommend working with a CPA. We are happy to provide a referral, if needed.

For example, if you took a Qualified Charitable Distribution (QCD) from your IRA, you do not need to pay tax on this amount. The full distribution is reported on the 1099R – there is no reporting that this is tax exempt. It is suggested that the full distribution is reported on line 15a of the 1040 that on 15b your write, $0 for the taxable amount (if you have no other taxable distributions). It is also suggested that you write ‘QCD’ next to the line to explain why the distribution is tax-exempt. Failure to do this can result in paying taxes that you do not owe.

The other place that we see clients sometimes overpaying tax is by missing the cost basis information and reporting on all proceeds versus just realized capital gains. This is another reason to use an experienced tax preparer or CPA.

Forms You Might Receive

The types of tax forms you receive will depend on the types of investments and income you have. Please note the following:

  • Widely Held Fixed Investment Trusts (WHFITs) — Under the IRS definition, the affected market segments include Unit Investment Trusts (UITs), Royalty Trusts, Commodity Trusts and Mortgage Pools such as Fannie Mae. Trustees of WHFITs are required to report all items of gross income and proceeds on the appropriate Form 1099. The reporting deadline for these items is March 16th, so you may receive a delayed 1099 (early April) if you own these types of investments. We generally do not work with these types of investments.
  • 1099-B — If you receive a 1099-B (“Proceeds from Broker and Barter Exchange Transactions”), please keep in mind that you are responsible for reporting the gain or loss on what you sold, not the entire amount. This means that you are responsible for the difference between what you originally paid for an asset and what you sold it for. We will provide cost-basis information on holdings that we have the data for. If you have transferred an asset or cost basis and it is not showing on your statement, please call our office.
  • W-9 — You might receive a W-9 form from your mutual fund and/or annuity companies. These are used to confirm and/or update your Social Security number. These are mailed as a matter of routine every few years.
  • Nontaxable transactions — You might receive a 1099 for nontaxable transactions such as an IRA rollover or 1035 exchange of an annuity. A 1035 exchange is reported as Code 6 in box 7, a direct rollover to an IRA is reported as Code G in box 7, and a direct rollover to a qualified plan or TSA is reported as Code H in box 7. Receiving one of these 1099s does not necessarily mean you owe taxes, but you should follow the IRS instructions carefully for reporting this type of transaction. You will also receive a 1099 for QCDs, as noted above.
  • K-1 forms — Schedule K-1 forms (Partner’s Share of Income, Deductions, Credits, etc.) are issued by partnerships, S-corporations, trusts and estates to report a taxpayer’s prorated share of net income or loss from the entity, along with various separately stated income and deduction items. By law, these forms must be sent by March 15th following the close of the partnership’s tax year. Therefore, you might not receive your K-1 until late March or even the first week of April.

If you have a question about your tax documents, please give us a call. Tax laws are very complex. Both our office and the Raymond James 1099 Tax Reporting Department can answer many of your questions; however, we are not accountants and cannot provide specific tax or legal advice. We can recommend a qualified Certified Public Account (CPA) if you need assistance in preparing your taxes. We are happy to provide a referral if you need a CPA.

You can also get answers to many of your questions by reading free IRS Publications. You can obtain copies by calling 1-800-TAX-FORM (1-800-829-3676) or by visiting the IRS website at www.irs.gov, where you can also print tax forms.

Important to Note Regarding Scams

The IRS never demands payment or personal information over the phone or via email. The IRS never asks for a credit card. If you receive such a phone call, it is most likely a scam. The IRS will only contact you in writing via postal mail if there are any questions or issues.

The IRS will never threaten to bring in local police, immigration officers or other law enforcement to have you arrested for not paying. The IRS also cannot revoke your driver’s license or immigration status. Threats like these are common tactics scam artists use to trick victims into buying into their schemes.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

25th Annual Resource Event

Learn about Carver Financial Services’ perspective on the year ahead, a frank discussion about Raymond James, as well as a wealth of information on resources, and much more, including a unique opportunity to hear from Raymond James Chairman and CEO Paul Reilly.

2020 Year-in-Review

2020 presented some unique challenges which also provided unique opportunities. We enacted significant updates to how we manage money, our brand, and our website. These changes will benefit our clients in 2021 and beyond; however, the most important thing is our team. The primary vision for Carver Financial Services, Inc. is to have an enduring firm that will serve to make the lives of our team, our clients, and our community better for generations to come. Take a look back at 2020 to see our milestones and achievements during this extraordinary year.

Avoid These Five Divorce Mistakes

One of the side effects of the coronavirus pandemic has been a big increase in the divorce rate in the United States. The number of people seeking divorces was 34 percent higher from March through June 2020, compared to the same period in 2019, according to Legal Templates, a company that sells legal documents. The Canterbury Law Group reports that 42 to 45 percent of first marriages will end in divorce, as will 60 percent of second marriages.

Planning Is Critical in Protecting Your Retirement Assets in a Divorce

According to the National Institute for Retirement Security (NIRS), divorced people have less money in their individual retirement accounts than the married do. The mean value of independently owned defined contribution accounts is $84,874 for married men and $50,126 for married women in 2020. Those numbers drop to $58,951 for a divorced man and $38,613 for a divorced woman.

Married people also, unsurprisingly, have more retirement money for their households. For example, the mean value of household defined contribution accounts is $136,055 for married men, while it’s the same $58,951 for the divorced. NIRS reports that the elderly poor are more likely to be divorced than married elderly Americans or seniors as a whole.

Divorce can be especially disastrous to women’s finances. The NIRS says women who divorce tend to do worse than men in terms of their retirement savings — especially if they divorce later in life, when their careers are ending.

Planning can help you minimize the negative impact a divorce can cause to your financial situation. In particular, to avoid at least some of the emotional and financial devastation that divorce can cause, avoid these five big divorce mistakes:

Mistake #1: Failing to understand you might be responsible for your ex’s debt

You might still be responsible for your ex-spouse’s debt, even if your name is not on it. In general, both parties are responsible for any debts incurred during the marriage. It doesn’t really matter who spent the money. When the property is divided during the divorce, the spouse who receives the asset is generally also responsible for any loans secured by that asset.

Here’s what that looks like in practical terms. Paul and Tracy were married for eight years. During that time, Tracy ran their credit card to the limit with her compulsive spending. The court held Tracy solely responsible for paying the $12,000 in credit card debt. After the divorce, however, Tracy did not change her ways and was unable to pay off her debt. The credit card companies came after Paul, who ended up paying them off. One solution would have been for Tracy to pay off the credit cards with assets she received when the divorce was finalized or for Paul to have received additional property in the divorce settlement to offset this debt.

Mistake #2: Not considering the value of career assets

Some couples are invested in their careers and earning capabilities instead of building their savings accounts. They might see their careers as being more valuable than tangible assets. As a result, one spouse might have significant assets tied to his or her career. These career assets include the following:

  • Life, health and disability insurance
  • Banked vacation and sick days
  • Social Security benefits
  • Unemployment benefits
  • Stock options and restricted stock units, or RSUs, a form of stock-based employee compensation
  • Pension and retirement savings plans
  • Job experience and seniority
  • Professional contacts
  • Education and training

For example, let’s look at a family in which one spouse is the sole wage earner. Many times, one spouse will put the other through school or help him or her become established in a career. Together, they have made the decision to spend the time and energy to build one career with the expectation that they will share in the fruits of their investment through the enhanced earning power of the second spouse as he or she builds a career.

It is important for you to have your financial advisor conduct a complete financial analysis for you and review your career assets when your attorney and your spouse’s attorney are about to decide on an equitable settlement. Your attorney can advise you about how the court in your state will consider career assets as part of the property settlement.

Mistake #3: Overlooking the tax consequences associated with various assets

There is a tax consequence for just about every move you make with your money. Some assets have a bigger impact on your tax burden than others.

If you and your spouse agree to split assets equally, and some are pre-tax and some are post-tax, the split will not be equal. For example, let’s say you and your spouse have a bank account with $50,000 in it, and your spouse’s 401(k) account at work is worth $50,000. You agree that your spouse will keep the 401(k) and you will get the bank account. Because your spouse will have to pay tax on the $50,000 401(k) account, this is not an equal split. At the time of the divorce, maybe your spouse said, “Let’s just split everything fifty-fifty. You take this half of the assets, and I will take that half. Is that OK?”

Unfortunately, there was something your spouse neither knew nor understood; neither did your spouse’s lawyer, and neither did the judge. They didn’t realize that your spouse would have to pay taxes on his or her half of the assets when trying to access them, while you could access your half of the assets tax-free. The 50/50 split ends up costing your spouse an additional $15,000 in taxes. Had you met with a financial professional before the divorce was finalized, both of you would have been in a better position to come to a more equitable settlement.

This scenario has an unfortunate ending. Pre-divorce financial counseling can help people going through a divorce arrive at a settlement that is fully understood by, and equitable to, everyone involved.

Mistake #4: Being unprepared for the possibility of a post-divorce audit

Just because the divorce settlement is final does not mean the parties are exempt from possible future tax liability. For three years after the divorce, the IRS can perform a random audit of joint tax returns. In addition, the IRS can audit a joint return, if it has good cause to do so, for seven years. It can also audit a return whenever its agents believe fraud is involved.

To help you avoid potential tax liability, make sure your divorce agreement provides for what happens if any additional interest, penalties or taxes are assessed. Also make sure it specifies where the money will come from to pay for costs incurred to hire professionals if there is an audit.

Mistake #5: Not meeting with a CERTIFIED FINANCIAL PLANNER™ or Certified Financial Divorce Analyst® before starting negotiations

A qualified financial advisor can help you reach a more equitable and profitable settlement, avoid unforeseen tax or issues, and support you and your attorney. What good is fighting for the house, only to find out after mediation that you will not be able to afford it or that you haven’t considered all assets? A qualified financial advisor may hold the CERTIFIED FINANCIAL PLANNER™ (CFP®) or Certified Financial Divorce Analyst® (CDFA®) designation. They can provide you and your attorney with data analysis that shows the financial effect of any given settlement. This expert becomes part of your divorce team and provides support on financial issues such as these:

  • Understanding the short- and long-term effects of dividing property
  • Analyzing pensions and retirement plans
  • Determining if you can afford the marital home, and if not, what you can afford
  • Recognizing the tax consequences of different settlement proposals
  • Deciding on the amount of alimony and/or child support to be paid, if applicable

Divorce is hard enough without getting blindsided by unexpected tax consequences, incurring debt obligations or receiving less than what is fair. Selecting an attorney whom you trust and feel comfortable with and working with a qualified financial advisor can simplify a difficult process. Taking this important step can help everyone reach a more equitable settlement, minimize legal expense by expediting the process, and avoid surprises years after the divorce.

Randy Carver is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Having been in business for over 30 years, Carver Financial Services, Inc. is one of the largest independent financial services offices in the country, managing $1.94 billion in assets for clients globally, as of January 2021. Randy and his team, work with individuals who are in financial transition as a result of divorce, retirement or the sale of a business. You can reach Randy at randy.carver@raymondjames.com.

The information contained in this report does not purport to be a complete description of the securities, markets or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Randy Carver and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of 01/05/2021 and are subject to change without notice. Past performance may not be indicative of future results. No specific tax or legal advice is given or intended. Raymond James and Carver Financial are not affiliated with National Institute for Retirement Security (NIRS), Legal Templates, and Canterbury Law Group.