Firm:
Divorce and Money Matters; Wealth Protection Management
Job Title:
Founder and President
Biography:
Lili Vasileff is the founder and President of Divorce and Money Matters, LLC, and of Wealth Protection Management, fee only private financial planning and wealth management firms specializing in divorce, litigation support, and tailored wealth management services for individuals. Her firm is an independent Registered Investment Advisor and she offers customized, objective financial guidance for income goals, wealth management, and wealth preservation. Lili holds clients’ interests as her first and only priority. She values a personal relationship with her clients and strive to give clients a sense of security and confidence for meeting their financial goals.
Lili and her team focus on all aspects of comprehensive personal financial planning. their firm works successfully with helping couples and individuals before, during and after divorce. They provide litigation support, serve as expert witness, and consult behind-the-scenes for case evaluation. They are the “go to” financial neutral expert for attorneys to mediate uniquely challenging financial issues in cases that aim to settle.
As a pioneer in the field of divorce financial planning, Lili launched her business over 25 years ago. She is a speaker, practitioner and author of 3 books: "Money & Divorce: The Essential Roadmap to Mastering Financial Decisions" published by the American Bar Association in 2018; "The Ultimate Organizer: The Complete Interactive Guide to Achieving the Best Legal, Financial and Personal Divorce"; and "The Divorce Planner Checklist" both published by Peter Pauper Press. Lili has received numerous prestigious awards for her pro bono services to individuals and nonprofits.
Education:
BA, Economics and Political Science, Mount Holyoke College
MA, International and Public Affairs, Columbia University - School of International and Public Aff
Assets Under Management:
$50 million
Fee Structure:
fee only
CRD Number:
4655110
Your credit score is a weighted measure of the mix of both secured and unsecured debt. A credit score rating is an assessment of an individual’s creditworthiness.
Several factors are given different weight to calculate your credit score. These factors are:
- Payment History – Weight Assigned 35% (Pay your bills on time!)
- Amounts You Owe – Weight Assigned 30% (Keep your balances down! – avoid maxing out your limit)
- Length of Credit History – Weight Assigned 15% (Keep a Good Track Record!)
- New Credit – Weight Assigned 10% (Apply only when you need more credit!)
Types of Credit – Weight Assigned 10% (Establish a Variety: mortgages, student loans, revolving credit (credit cards), installment (loans) and other (department store cards)
Recommend checking in with all three credit reporting bureaus to find your credit rating/weighting/factors at risk. Hope this is helpful
If you already divided assets and your divorce was final in 2014, then this IRA is your individual property post divorce. You also state that you have a financial obligation to pay your wife which is now due. How you finance this obligation is your responsibility. If you withdraw funds now from your IRA, your withdrawal will be subject to ordinary income taxes and maybe to a 10% early withdrawal penalty (depending on your age).
There is not much you can do to avoid paying taxes on any IRA withdrawal. Had you included language in your divorce decree to take funds from the IRA at that time, you would still have to pay income taxes, but NOT any early withdrawal penalty.
If you had transferred the amount due to your wife from your IRA in your divorce, you would not incur any taxes and she would have the choice to: (1) keep funds in IRA; (2) withdraw funds from IRA and incur income taxes at her own expense.
Timing is everything.
Lili Vasileff, President Divorce and Money Matters LLC
President emeritus of national Association of Divorce Financial Planners
If your total taxable income falls in the 15% bracket (in 2018 max income as a single filer $38.7K), all of your capital gain will be taxed at zero on the federal level. However, the state of CA taxes your capital gain at 13.3%, the highest in the U.S. This tax would be on your net profit excluding $250,000.
The answer is yes at your own tax rate. The division of the pension is considered property and a nontaxable transfer to you pursuant to divorce. The pension itself is taxable to both you and your ex as income.
There is a way to divide a 401K in divorce to take cash out that permits you to avoid a premature penalty of 10% for early withdrawal. The IRS permits you to withdraw cash from a 401K via QDRO in cash under rule 72(t)(c). You can share the income taxes owed on the distribution as part of the overall settlement and you should gross up for cash withdrawn to cover income taxes. The good news is that you will not pay 10% penalty. You can take out as much cash you wish. This is only allowed in a divorce and under the property division agreement. If you take out a loan, you will obligated to repay your 401K over 5 years maximum and I believe you can only take out a loan up to $50K or one half of your total vested plan benefits, whichever amount is LESS. You could not borrow up to $150,000.
Be sure the language for taking out cash is included in your divorce agreement and be sure the QDRO is properly worded to reflect the cash withdrawal as well as the rollove amount. Lastly do not forget to gross up the cash amount for how much you need to take out on an after tax basis to help your wife.
Best of luck!