Wednesday, March 20, 2019 from 12:00 PM to 1:30 PM PDT
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Leslie Roper Day & Associates 
950 Glenn Drive
Suite 230
Folsom, CA 95630

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Holly Wilkerson 
FPA of Northern California 
(916) 443-4237 

3-20-19 - Study Group Meeting 

Hello Fellow FPA Members and Sponsors,

Please join us on Wednesday, March 20, 2019 at the office of Leslie Roper Day & Associates in Folsom. We will be meeting from 12:00 pm – 1:30 pm and this will be a brown bag lunch.

The address is:
950 Glenn Drive, Suite 230
Folsom, CA 95630
Contact: Landon Tymochko
Phone: (916) 984-1150

Jeff (43) and Nicole (42) have been married for 22 years and decided to divorce.  They have one daughter, Elyse, age 16. 

Jeff started his own sale representative business 12 years ago.  Nicole is a 50% partner in the business and helps with some clerical and administrative work.  The business was valued at $485,000 by an independent appraiser.

Nicole is currently in school to become a home health care provider.  She will earn her certificate in two years and is expecting to get a job right away making $45,000 per year.  Jeff pays himself an average of $185,000 per year. 

The family home is valued at $560,000 with a current mortgage balance of $320,000 and a monthly mortgage payment of $2,128.  Nicole loves the home but understands she may have to move to a smaller place.

Nicole and Jeff will share custody of Elyse and both are committed to putting her through college.  They have a 529 with a value of approximately $15,000, and Nicole is the custodian. 
Five years ago, the couple inherited a brokerage account from Nicole’s uncle valued at $315,000, including $115,000 in cash and the balance in ABC Stock.  The value of the stock was pretty flat the first year, but is currently worth $276,862.  The remaining cash balance is $27,280, the couple having used some of the cash and dividends in Jeff’s business. 

Nicole has an IRA valued at $52,000, Jeff’s 401(k) is worth $225,000.  Jeff has an inflation protected pension from his old job, where he began working after he married Nicole.  It will pay him a monthly benefit of $3,000 per month starting at age 65. 

The couple also has credit card debt of $15,800, which Jeff offered to pay off himself.  Jeff offers Nicole the equity in the home, half of the brokerage account and her IRA 

Questions for discussion:
What percent of the pension is marital property?  What is the present value of the pension, assuming a life expectancy of 36.29 additional years, a discount rate of 3.53% and an inflation rate of 2%?

What is the most viable distribution of the business?  Should Jeff choose to buy out Nicole, what are his options?

How should the couple best protect Elyse’s educational expenses?  What tax considerations should be discussed for spousal and child support?

If Nicole is your client, what should you discuss as possible settlement options for her to equalize the division of the marital property?

How would you approach the intake meeting to ensure that you receive the necessary information to help Nicole and Jeff? Please come with your ideas and thoughts.

See you there!