Latest Spring 2017 Quarterly Newsletter In this issue, Tracey Baker, CFP, reflects on current markets as we head into the summer months. Kevin Donovan, CFA, compares performance of "Actively" vs. "Passively" managed funds. Parker Trasborg, CFP, discusses the implications of several common estate planning pitfalls. Read about the tax related benefits that can arise from making Qualified Charitable Distributions. Jessica Ness, CFP, talks about our Day of Service when we partnered with one of our favorite local service organizations for the second year in a row. See how our clients have two different programs to track their CJM portfolios. January 2017 Audio Update Join Tracey, Brian, Kevin and Tim as they discuss CJMs expectations for the markets in 2017, a discussion on small cap equities as well as Tims thoughts on income distributions in retirement. Newsletter & Podcast Archive

The Situation

Mike and Christine were married for over 10 years when Christine filed for divorce. Both were successful engineers, and they had three young children, a house, and substantial retirement assets. Both Mike and Christine were concerned primarily about the childrens well being but at the same time about the financial consequences of the agreement. They wanted to quantify the financial ramifications of the divorce, ensure an amicable and equitable split, and ensure that they were still on track to reach their respective long-term financial goals.

The Solution

After a thorough review of the separation agreement drafted by Christines attorneys, it was noted by Mikes CJM advisor that the agreement outlined that Christine would have custody of their three children for over of the year, but that both Mike and Christine would be equally responsible for the financial support of the three children. However, the separation agreement made no specific mention of which spouse would be entitled to claim the children as dependents. Mikes advisor noted that, as currently written, only Christine, as the custodial parent for more than of the calendar year, would be entitled to claim the dependency exemption on her income tax return. CJMs team of planners pointed out that it is possible for the noncustodial parent to claim the exemption if the custodial parent agrees to waiving their right to the exemption(s). Working with Mikes accountant, CJM calculated the projected value of this exemption over time and suggested that Mike request a cash distribution or the right to claim the exemption in certain years.

In addition, through collaboration with Mikes attorney and accountant, CJM also suggested the inclusion of mandatory funding of each childs 529 college savings plan, as well as additional life insurance on each party to protect not only the childrens financial support but also the surviving parents financial support.

Once the divorce was finalized, CJM connected Mike to an estate attorney who was able to update his estate plan, ensuring that any funds would be used for the benefit of his children.

Value To The Client

Leveraging CJMs financial expertise, Mike and Christine had the piece of mind knowing that they could negotiate a financially equitable split. Working with their attorneys and accountants, CJM was able to provide clarity, objective financial advice resulting in an equitable division of assets during an incredibly stressful and emotional time.

More Solutions

At CJM we understand that no two clients are alike and real world problems require practical and timely solutions. The CJM team brings together the best and the brightest in the areas of investment, tax, insurance, financial planning & wealth management to resolve each clients particular issue(s).