Damon Wykrent, CFP^®, CDFA

COMPREHENSIVE FINANCIAL PLANNER^TM

CERTIFIED DIVORCE FINANCIAL ANALYST

B.S. in Economics, with a Business minor from Texas A&M University

College for Financial Planning, Certified Financial Planner Course

Certified Financial Planner^TM

Certified Divorce Financial Analyst

Listed as "The Best Financial Planner in Dallas", 2004 D Magazine

Damon has made numerous presentations to the public on "Gaining Financial Control of Your Divorce", and has been quoted in Fidelity Magazine on various financial planning topics. He has most recently been listed as, "The Best Financial Planner in Dallas" by D Magazine.

Acting as an "in-house" specialist at Hammerle Finley, Damon can specifically help individuals understand and evaluate the short and long term consequences of different property settlement options during divorce. The ability to work side by side with your attorney will help prevent common financial mistakes made by many divorcing couples. Damon can also serve as an expert witness in court and helps to provide valuable financial information during mediation as necessary.

The financial issues inherent to every divorce case are often times the ones that are the most overlooked. However, once a divorce settlement has been signed, it's too late to change it. Damon has the experience and expertise to help you during the divorce process, and to help you avoid those costly financial mistakes.

How can a Certified Divorce Financial Analyst (CDFA) help me?

• They provide valuable information on financial issues that are related to the divorce, such as tax consequences, dividing pension plans, dividing retirement plans, continued health care coverage, stock option elections and much more.
  
• When a CDFA is used during the Inventory and Appraisement stage of your divorce, you have an expert looking at your finances that can spot problems and advantages from the start of your case. This will save you time and money down the road.
  
• A CDFA will help you understand your proposed divorce settlement, and will communicate with you in terms that you can understand.
  
• Since a qualified specialist is working on the financial issues in your divorce, this will leave more time for your attorney to focus on the legal issues you may have.

Q&A's:

Q         How do I know which assets are the best ones to keep?

A         Not all assets are created equal and some assets may have more of a beneficial effect on your financial future. Assets such as businesses and retirement accounts continue to grow. Other assets may require money for their upkeep, such as a home and automobiles, and those costs must be considered in the overall settlement. Certified Divorce Financial Analysts are experienced in assessing these situations.

Q         Will I lose my pension?

A         Pensions and retirement plans are marital assets if earned during the marriage. However, it is possible to keep your pension and have it offset with other assets.

Q         Should the custodial parent keep the house?

A         This is a great question, and it's one of the most important overlooked questions. While the answer is sometimes yes, there also may be times when the answer is no. It's important to pinpoint exactly what it will cost to maintain the home, factoring in taxes and inflation and expense of upkeep. An analysis must be performed to determine if there is enough money to stay comfortable in the home and pay all the bills without being overextended. Once that has been determined, the advisability of retaining the home must be compared to that of giving up other assets (such as liquid accounts, retirement plans, etc.). Finally, all decisions need to be weighed against current economic and stock market conditions. Certified Divorce Financial Analysts are trained to help people answer this question before they commit to a settlement that cannot be changed.

Q         What if I bring a house into the marriage that is in my name only, and I add my spouse's name to the deed?

A         In this case, the whole house could be considered marital property. You might have made a "presumptive gift" to the marriage and should consult with a family law attorney to discuss your options.

Q         Is my IRA considered marital property if it's in my name only.

A         Everything acquired during the marriage, no matter whose name it's in, is typically considered marital property. In some states, the increase in value of separate property could also be considered marital. If you are going through a divorce, it would be important to evaluate the financial drawbacks to having your IRA included in the list of assets you retain, post divorce. Remember, the funds in the IRA cannot be accessed before age 59 1/2 without paying a 10% penalty for early withdrawal. Note: Inheritances and gifts may be considered to be separate property.

Q         I have never worked. Can I get Social Security?

A         If your spouse has worked and if you have been married for 10 years or more, than you are entitled to one-half of your spouse's Social Security or your own, whichever is higher--even if you are divorced. Your spouse still retains 100% of his/her Social Security benefit. This is an automatic guarantee and therefore it is not a negotiation point in a divorce.

Q         What is a QDRO and why do I need one?

A         A QDRO (or Qualified Domestic Relations Order) is the legal document that divides up a qualified pension or retirement account (including 401k's) pursuant to a divorce. The Divorce Decree is not sufficient to divide up the qualified plans; a QDRO is needed, preferably before the divorce is final. There are many nuances that go into QDRO's and make it an advocating (versus neutral) document. In order to protect your assets, be sure to obtain qualified advice in this area from a specialist.