Homrich Berg Unveils HB Wealth as New Name, Aligning Under Unified Brand

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$25B RIA’s rebranding reflects national scale and client-centered focus

ATLANTA, GA — August 19, 2025 — Homrich Berg Wealth Management, a leading independent wealth management firm, launched its refreshed brand identity under the new name HB Wealth. This marks an important step in the $25B RIA’s alignment of all offices and teams under a unified brand that reflects its commitment to delivering comprehensive advice and concierge-level care through a fee-only approach.

The HB Wealth name preserves the strength and recognition of “HB,” while presenting a more modern and premium brand to clients, partners, and the broader marketplace. This refined identity was shaped by the firm’s core values and client-first approach, while underscoring its ascent as a leading national advisory firm.

“We are proud to introduce HB Wealth as the next chapter in our firm’s story,” said Thomas Carroll, CEO at HB Wealth. “With a rich, 35-year history, we want to honor the legacy of our founders while reflecting who we are today and where we’re headed. This evolution unites us under a single identity that resonates with clients and partners alike. At our core, we remain committed to doing the right thing at all times, putting clients first, and fostering the collaborative culture that has been essential to our success.”

The move brings all existing teams and offices, including the addition of WMS Partners  earlier this year, into full alignment under the HB Wealth brand. The transition represents a natural progression as the firm grows with shared purpose and consistent client experience across markets. Clients will continue to work with the same trusted advisors and teams, now supported by a fully unified brand.

The rollout will include updated branding across digital platforms, client materials, and office signage, along with a new website experience at hbwealth.com. While the name has changed, the firm’s long-standing commitment to expert advice and exceptional care within a fee-only fiduciary approach remains the same.

“Our goal was to refresh the brand in a way that reflects the distinctive benefits that individuals and families receive when they work with HB,” said Joanna Irwin, Chief Marketing Officer at HB Wealth. “The updated HB Wealth brand positions us to continue to modernize our firm for the future.”

About HB Wealth

Founded in 1989, HB Wealth is a national independent wealth management firm providing fiduciary, fee-only wealth advisory services, investment management, and family office services. As one of the country’s largest fee-only registered investment advisers (RIAs), HB Wealth is headquartered in Atlanta with more than 300 employees operating out of 11 offices across five states, managing over $25 billion for individuals, families, and institutions. With a mission of bringing unwavering financial peace of mind to the clients we are privileged to serve, HB Wealth delivers comprehensive advice and concierge-level care through a fee-only approach. Think of it as the fiduciary standard, elevated. Learn more at hbwealth.com.

Media Contact

Haley Rosa

Gregory FCA for HB Wealth

610-228-2805

HBWealth@gregoryfca.com

Evaluating Business Structures: The Pros And Cons

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Family businesses often start small with simple business and tax structures. However, as businesses expand, they sometimes outgrow their initial structures. It is important for business owners to understand the different structures available. It is important to distinguish between business structures and tax structures. Below is an overview of the different business and tax structures and some of the pros and cons of each.

Business Structures

Business structure is generally a matter of state law. The most common business structures include sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). Businesses that do not file a document with a secretary of state or similar office to be organized, incorporated, or registered to do business are treated as sole proprietorships (if there is only one owner) or general partnerships (if there are multiple owners). These businesses are created simply by engaging in a business activity (i.e., a lemonade stand) there are no state filing requirements and no legal entity separate from the owners themselves. The major downside to a sole proprietorship or general partnership is that they offer no liability protection. The owners are personally responsible for all the business’s debts and liabilities.

Corporations and LLCs are formed by filing articles of incorporation or organization with a secretary of state or similar office. The benefit of a corporation or LLC is that it provides liability protection. If structured correctly, the owner of a corporation or LLC is not liable for the business’s liabilities and can only lose what they have invested in the business. A corporation is owned by shareholders who elect directors to oversee the business and appoint officers (i.e., a CEO) to handle the day-to-day operations. For small corporations the shareholders, directors, and officers are often the same individuals. The downside of a corporation is the detailed record keeping and reporting that is required. An LLC is owned by its members who typically elect one or more managers to run the business. Like corporations, the members of a small LLC are often the managers. The benefit of an LLC is that it offers liability protection with minimal reporting requirements.

A small, very low-risk business with sufficient liability insurance may be ok as a sole proprietorship or general partnership, but most businesses should be structured as a corporation, LLC, or similar business structure that limits the owners’ personal liability.

Tax Structures

From a tax perspective, businesses are treated as either corporations or pass-through entities. For corporations, income is generally taxed at both the corporate level when earned, and at the shareholder level when distributed in the form of a dividend. Pass-through entities are not themselves subject to tax, instead, the income and tax liability pass through to the owners. Pass-through entities may however be required to file an informational tax return. A partnership, for example, does not pay tax but must file a return showing its income and how much each of the partners must report on their individual tax return.

As mentioned above, corporations are formed by filing articles of incorporation with a secretary of state or similar office and are taxed as corporations as would be expected. Other types of business entities formed by filing with a secretary of state, such as LLCs, are treated as pass-through entities by default but can elect to be taxed as corporations. Sole proprietorships and general partnerships are always treated as pass through entities because nothing is filed to create a legal entity that is separate from the owners.

Because corporations are subject to double taxation (at the corporate and shareholder level), small business owners are generally better off with a pass-through tax structure. However, there are business reasons for being structured as a corporation and there can also be tax reasons. The 2017 Tax Cuts and Jobs Act permanently reduced the corporate tax rate to 21%. This combined with a top tax rate of 20% on qualified dividends (most dividends are qualified) can make a corporate tax structure more advantageous for business owners who intend on keeping the majority of the business’s earning in the business rather than taking them as a dividend.

Certain corporations with no more than 100 shareholders and only one class of stock may also elect to be treated as S-corporations which are taxed very similarly to pass-through entities. However, S-corporations can provide an additional tax benefit to owners who are employed by the business. Only wages are subject to FICA tax for Social Security and Medicare. Other earnings that pass through to the owners may be treated as dividends not subject to self-employment tax.

There are numerous business and tax issues that a family business owner must consider in deciding the best structure for their business. It is important for business owners to reevaluate the structure of their business as the business changes and as new laws go into effect. Your financial advisor can provide additional information about the different business and tax structures available.

If you have any questions or would like to discuss your contingency plan further, please reach out to your client service team, or call 404.264.1400. You can also visit us on the web at HomrichBerg.com.    

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Important Disclosure

This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.

All information is as of date above unless otherwise disclosed.  The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg, nor any affiliates, make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.

©2024 Homrich Berg

Interest Rates Are Still a Key Driver Of Stock Market Returns

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The Federal Reserve once again kept its key rate unchanged at its June 12th meeting. In this month’s video, we discuss how the direction in interest rates and yields has impacted stock market returns in the short term. Although corporate earnings have continued to beat expectations and we believe are the longer-term driver of stock returns, it is hard to deny the focus that investors have had on the direction of yields and how that has led to stock market returns over the last year.

If you have further questions about the video, please reach out to a member of your client service team or contact us.

Watch here: https://youtu.be/LRJqfyEbrTQ

Spring Towards Your Financial Goals

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Spring is my favorite time of the year. The gloom and cold of winter rains give way to blue skies and the warm weather of spring. New leaves and bursting flowers put an exuberance into our spirits, and everything seems possible. It is such a vibrant time of year! While we may think of all things outdoors right now, it is also a good time to focus that renewed energy on our financial goals.

Tax time is over so there could be a refund coming your way or you may have parted ways with the spare cash you were saving to pay good ole Uncle Sam, so you have a good idea of where you stand with your reserves. Regardless, before you check that off the list for another year, it’s a great time to consider a few things to make it better for next year.

  • Set up your tax file for 2024 and make sure you are recording and capturing everything that is important while it is still fresh in your mind.
  • Create your system for tagging tax items as you go through the year, so it is all right at your fingers next time.
  • Review your payroll withholdings, especially if you owed a lot or had a huge refund. Your CPA can help you find the right numbers, but you can also add a set amount per paycheck of additional withholding if you find yourself short for 2023. The sooner you start, the less you’ll need to part with each pay period.
  • Consider moving to a high-deductible health plan with a Health Savings Account next year. Would that work for you? If so, put a note in your calendar before your next open enrollment date to analyze the features. (Sometimes amid all the other elections, it’s hard to remember what we want to focus on during our benefit selection, so a good reminder can come in handy.)

While we are in the mindset of thinking about our financial goals:

  • How is your 401k withholding? If you aren’t maxing out the amount you contribute, consider boosting the contribution a bit. If you are, perhaps shift a percentage or two over to the Roth 401k option if your plan allows it. You’ll pay income tax now, but you won’t when you withdraw the funds in retirement.
    • A lot of plans have a paycheck simulator so you can understand the overall impact of that change.
  • How are your savings goals tracking?
    • Do you have your emergency fund well-stocked?
    • Are you saving for that “big ticket item” like a replacement car or a big trip?
    • Try setting up a separate account and using the auto-transfer feature at your bank to automate your savings.
    • If you had an overspend last holiday season, it’s not too soon to start tucking away money each paycheck into the holiday fund!
  • Is your debt paydown on track? Take a careful look at the interest rates on any debt you are paying. Credit card rates can be astronomical so if you are paying those high rates, make a plan to cut back on spending and ramp up the paydown. Think of how much cash that would free up each month to be rid of those payments!
    • Try to make it a game to see how little you can spend in a week – what if you didn’t pull out that credit card at all for just one week?
    • Could you plan a free evening with friends and apply that money to your debt balance?
    • What could you do to be creative and cut back on spending?
    • What works best for you as a goal reminder when friends call, or you see a sale? Having a plan in advance of the situation makes a huge difference in navigating it!

The day-to-day of our work, family, household chores, and friends fills our days, and we get caught up in “what’s next” and can easily forget the longer-term plans and goals that lie buried in our minds and hearts. It takes a bit of quiet and a conscious focus to turn our thoughts from the here and now to the desires we have for our financial lives.

As you see the new life of spring burst forth, remember that your financial goals are there inside you waiting to burst forth as well. It just takes a little quiet time, a little focus on what you truly want, and a solid plan to move toward those goals to allow some spring energy to reinvigorate your goals.

To learn more or get help planning your financial goals, please email me at gildea@homrichberg.com.

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Is The Fed’s 2% Inflation Goal Achievable?

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A strong job market continues to create challenges for the Fed to reach its 2% inflation goal. Inflation remains sticky and has even reaccelerated in certain parts of the economy, especially in a few service sectors. However, the unemployment rate may not be the key or the Fed’s focus. Declining wage growth, and whether it continues to decline, may be the critical element needed for the Fed to make its first rate cut later in the year. In this video, Ross Bramwell discusses what the Fed needs to get inflation trending back down to its inflation target.

Watch here: https://youtu.be/KAXg3Vj-XDQ?si=vJkzFVlYChTqGoQP

If you have any questions regarding this video, please email info@hbwealth.com, call 404.264.1400, or complete our “Contact Us” form.

Should I Rollover 529 Funds To A Roth IRA?

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One of the most talked about provisions of the SECURE 2.0 Act is the ability to rollover funds from a 529 plan to a Roth IRA. Funds distributed from a 529 plan are generally subject to income tax and a 10% penalty unless they are used to pay for qualified education expenses but beginning in 2024, 529 plan distributions to a Roth IRA may be excluded from income for federal tax purposes subject to certain conditions and limitations. Unfortunately, there is a lack of clarity around the requirements relating to how long a 529 account must be open and how long funds must be in the account to be eligible. Additional guidance is needed, but it is unclear if or when the IRS will provide this guidance.

In general, the SECURE 2.0 Act provides that the following conditions must be met to distribute funds from a 529 plan to a Roth IRA tax-free:

1. Direct Transfer: Distributions must be direct trustee-to-trustee transfers from the 529 plan to the Roth IRA. You should contact the Roth IRA trustee to determine if there are any specific requirements before requesting a rollover to ensure it will be accepted. Each 529 plan has its own specific form in connection with a Roth IRA rollover. Following are links to the rollover forms for the Georgia Path2College and Utah my529 which are the most common plans for our firm’s clients:

    Path2College Direct Rollover Out to Roth IRA Form

    my529 Roth IRA Rollover Request Form

    2. Roth IRA owner is the same as the 529 beneficiary: The owner of the Roth IRA (or beneficiary in the case of a custodial account) must be the designated beneficiary of the 529 plan.

    3. Plan maintained 15+ years: The 529 plan must have been maintained for at least 15 years. The IRS has not provided guidance on whether closing and reopening an account, a rollover from another plan, a change of account owner, a change of beneficiary, or any other change to a plan would reset the 15-year clock.

    4. Funds in plan 5+ years: Distributions from the 529 plan cannot exceed the aggregate amount contributed to the 529 plan (including attributable earnings) at least 5 years prior to the distribution. The IRS has not provided guidance on how to determine which funds meet the 5-year requirement or how to account for prior distributions, internal transfers, rollovers from other plans, or other types of plan contributions or withdrawals.

    5. Annual distribution limit: Distributions from the 529 plan during any tax year cannot exceed the annual Roth IRA contribution limit reduced by the aggregate contributions made during that taxable year to all IRAs maintained for the designated beneficiary of the 529 plan. The Roth IRA contribution limit is the lesser of the Roth IRA owner’s taxable earnings or $7,000 ($8,000 if age 50+) for 2024. Note that while you must generally fall below a certain income level to contribute to a Roth IRA, the income limitation does not apply to qualifying 529 plan distributions to a Roth IRA.

    6. Lifetime distribution limit: Distributions to a Roth IRA from all 529 plans for a designated beneficiary cannot exceed $35,000 in aggregate (i.e., each individual has a $35,000 lifetime limit).

      Funds distributed from a 529 plan that do not satisfy the conditions of a tax-free Roth IRA rollover will be subject to income tax and a 10% penalty. The tax and penalty might be avoided if the funds can be used to pay qualified education expenses. However, those considering a 529 plan to Roth IRA rollover are probably doing so because the designated beneficiary does not have qualified education expenses. The tax and penalty might also be avoided if the distribution could be recharacterized as an indirect rollover. However, Utah’s my529 SECURE Act 2.0 FAQs page indicates that “rollover requests that are rejected by the Roth IRA trustee and returned to my529 will be treated as new contributions by my529.” The result would be that no funds are effectively removed from the 529 plan, but the attempted rollover amount would presumably be subject to tax and the 10% penalty. Assuming this is the case, you would be better off simply making a nonqualified distribution and paying the tax and penalty because at least the funds would no longer be in the 529 plan.

      In addition, although a qualified 529 plan distribution to a Roth IRA may be excluded from income for federal tax purposes, not all states use the federal definition of qualified expenses for 529 plans. In states that do not have the same definition of qualified expenses, a 529 plan distribution to Roth IRA could be subject to state level taxes and penalties. The website savingforcollege.com offers information on rollovers from a 529 plan to a Roth IRA, including a 529 comparison tool that lists the states that do not treat distributions from a 529 plan to a Roth IRA as a qualified expense for state tax purposes. Below is information regarding the state tax treatment of a 529 plan to Roth IRA rollover for Georgia and Utah, but you should confirm the state tax treatment before requesting a rollover. If you have questions about your potential state tax liability, you will need to consult with your tax advisor.

      • For Georgia taxpayers, a rollover from a 529 plan account to a Roth IRA will be treated as a qualified withdrawal. If you are not a Georgia taxpayer, these withdrawals may include recapture of tax deduction and state income tax. See path2college FAQs re: withdrawals.
      • For Utah taxpayers, the amount of the Roth IRA rollover must be included as income on your Utah tax return in the year of the rollover, to the extent it was deducted or used in calculating the tax credit on a current or previously filed Utah tax return. See my529 SECURE Act 2.0 FAQs page.

      The SECURE 2.0 Act opens new opportunities for using 529 plan funds. By rolling over leftover funds to a Roth IRA, you can tap into the tax-free growth potential for retirement. This is a powerful new tool for your long-term financial plan. Yet, there are complexities to consider, and it is up to the individual requesting a 529 plan to Roth IRA rollover to determine the plan’s eligibility. You must verify that the 529 account has been open and funded for the requisite time periods (15 years and 5 years respectively) and ensure the distributions do not exceed the annual and lifetime limits (regular annual IRA contribution limit and $35,000 respectively). You must also satisfy any requirements the Roth IRA trustee may have and comply with the 529 plan’s Roth IRA rollover procedures. If there is a question as to whether the conditions of a tax-free Roth IRA rollover have been met, consider holding off on the rollover until the IRS provides additional guidance or you are certain that all requirements have been satisfied. If you have additional questions about the requirements or tax implications of a 529 plan to Roth IRA rollover, you should consult with your tax advisor or 529 plan administrator.

      If you have any questions or would like to discuss further, please reach out to your client service team, call 404.264.1400, or complete our contact us form.

      This blog was written by our Director of Financial Planning, Isaac Bradley and Senior Associate, Andrew Robertson.

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      Click here for a quick summary of the 529 plan rollover requirements.

      Important Disclosures

      This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.

      All information is as of date above unless otherwise disclosed.  The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg, nor any affiliates, make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.

      ©2024 Homrich Berg.

      Spring Is Sprung

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      As we skip into springtime, we turn our attention to cleaning up our yards and our houses, getting rid of the dead plants and leaves outside, airing out the house, and tidying up our financial lives. Say what? Tidying up our financial lives? Since when did “spring cleaning” include financial housekeeping? Well, since right now.

      You filed your taxes (or are really close to doing so) so it is the perfect time to sort, file, and box up those financial records. Here is my financial spring-cleaning list:

      • Gather all the tax return records and receipts, scan them, load an extra copy to a thumb drive, and put that, along with the paper, into a large envelope or small box along with a copy of the return. Label it and store it with prior years’ records.
      • Sort all your remaining stacks of paper into two stacks:
        • Scan
        • Shred
      • Scan the scan pile and then add it to the shred pile.
      • Shred all the old documents.
      • Reconcile your bank accounts (just in case you have gotten behind during the year).
      • Update your net worth spreadsheet (this is done for you if you are using Quicken, Monarch, or similar apps).
        • If you use software, take a look and make sure you have included everything – add new assets or liabilities; and clear out old ones.
      • Is your net worth moving in the right direction? If you have kept track year after year, are you satisfied with your progress? If not, what is your plan to turn that around this year?
      • Look at your liabilities – do you have a strategy for reducing them? If not, now is a great time to make a plan for reducing your debt.

      Getting your financial house in order may not be the first thing you think of in spring but maybe it is time to add that to your “spring cleaning” mindset. We all need some kind of prompt to get our bearings, assess our progress, and renew our commitment to our goals. Tax time may not be a fun time, but it is a great reminder to review the year and chart our course for the coming year. I hope your spring cleaning refreshes you, revives your focus on your financial goals, and brings you satisfaction over a job well done.

      To your financial (and spring cleaning) success!

      To learn more or get help planning your financial goals, please email me at gildea@homrichberg.com.

      Download this article.

      Important Disclosures

      This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.

      All information is as of date above unless otherwise disclosed.  The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg, nor any affiliates, make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.

      ©2024 Homrich Berg.

      Charting A New Course Professionally For The Suddenly Single Woman

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      Embarking on a solo journey after a significant life change such as divorce or becoming a widow often presents the unique opportunity to reassess your career path or reenter the workforce. As the tax season wraps up, many suddenly single women are inspired to redefine their personal and professional goals. For those newly considering employment, perhaps on an attorney’s advice, or those seeking a career refresh, here’s a guide to navigating this transformative phase:

      1. Skill Assessment & Alignment: Evaluate your current skills against your career aspirations. Do you need additional training or education to achieve your goals? Resources like LinkedIn Learning offer courses across various fields, from leadership to technical skills, helping bridge any gaps.
      2. Goal Setting: Define new, achievable career objectives. Consider SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) goals to guide your journey.
      3. Networking: Expand your professional network by connecting with neighbors, friends, and former colleagues. Professional groups on LinkedIn and industry events are excellent networking opportunities. Engaging in forums related to your field can also open doors to mentorship and job opportunities.
      4. Mentorship: Seek a mentor who can offer advice, support, and guidance. A mentor who has navigated a similar path can provide invaluable insights. LinkedIn is a great platform to find industry mentors.
      5. Entrepreneurship: If you’ve dreamed of starting your own business, now might be the perfect time to explore entrepreneurship. Small Business Administration (SBA) resources and local entrepreneurship meetups can provide guidance and support.
      6. Resume and Job Search Resources: Crafting a compelling resume is crucial. Websites like Canva offer easy-to-use resume templates, while Coursera and edX offer courses on career development and job interview preparation, often at no cost.
      7. Resources for professional development:
        • LinkedIn Learning: Offers a wide range of courses to develop new skills.
        • Microsoft Learn: Provides free training in Microsoft products, crucial for many office jobs.
        • Indeed Career Guide: Offers valuable tips on resume writing, job searching, and interviewing.

      With career advancement comes the potential for increased income which will require you to manage it effectively. If you don’t have children in the house, you should adjust your spending plan to reflect your new income and financial responsibilities. As you “Budget for One,” YOU get to make all the decisions about how each dollar is spent or saved to invest in YOUR future.

      Additional income may allow you to start contributing to a retirement plan or even allow you to decide to contribute the maximum allowed by law. It will be especially important to surround yourself with experts to help you balance the risks and rewards associated with various investments as you may need help balancing lucrative opportunities with maintaining your longer-term financial security. Financial advisors and accountants can help you evaluate investments considering your long-term goals.

      Above all, regardless of your new circumstances, believe in your ability to succeed! Your career journey is not just about financial gain; you should ultimately look for personal fulfillment while achieving financial independence. Initially identifying as a suddenly single lady can be daunting following a divorce or the passing of a spouse, but it can also serve as a special moment to take charge of your next chapter…what can you do to find fulfillment? Now is the moment to pursue your passions…I believe in YOU!

      Download this article.

      To learn more or discuss your financial journey, please contact your client service team, send an email to info@hbwealth.com, call 404.264.1400, or complete our contact us form.

      The Impact of Stimulus on Recent Economic Activity

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      Since the Fed first signaled in early November that the rate hike cycle was likely over, economic data has continued to hold up or even improve in some areas. Overall, current economic data does not suggest an elevated risk of a recession in the near term as the job market remains strong, corporate earnings have held up, and the Leading Economic Indicators had their first positive month-over-month report in two years. In this month’s video, Ross Bramwell discusses one element that may help explain why the much-anticipated recession has so far not occurred.

      Watch here: https://youtu.be/eBpQZHgmOnQ

      Divorce Aftershock: Good Planning Helps Financial Settlement

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      Although it may seem like you’re alone, divorce affects one in five marriages. The “honeymoon period” seems so long ago as you stand on the doorstep, divorce papers in hand. So many emotions…fear, anxiety, sadness. Now what? Allow yourself to take a deep breath. Let yourself cry. Accept a quiet hug from a dear friend.

      As soon as the decision to divorce is made and your emotions settle, you can think clearly, and build your team of professional advisors. In addition to your divorce attorney, hire a CPA or financial planner knowledgeable about divorce planning. Because marital dissolution can be managed in various ways, many couples choose arbitration or mediation to avoid the fees associated with litigation. One model, collaborative law is a process in which each party hires its own team of advisors (attorneys, therapists, financial specialists, etc.), and all parties agree to focus on a mutually agreeable settlement.

      No matter the legal situation, your financial planner should walk you through these important first steps toward establishing financial freedom:

      1. If you do not already have a budget, develop an estimate of your current necessary monthly expenses.
      2. Open a separate post office box to ensure delivery of confidential documents.
      3. Establish separate checking, savings, brokerage, and credit card accounts, all of which will allow you to begin building individual credit. Be aware that on a joint credit account, all named individuals are liable for debts incurred.
      4. Order a free credit report from each of the three major credit agencies (Equifax, Experian, and Transunion). Check the reports for accuracy and identify all joint accounts that will need to be closed.

      Your team of financial advisors will often request specific documents to support your assets and expenses. It will be necessary to access prior tax documents (including income, gift, and business returns), bank account statements, brokerage statements (including IRAs and 401k accounts), credit card statements, and mortgage statements. You will also want to contact your insurance agent for copies of your insurance policies (e.g., medical, life, auto/home, etc.), gather vehicle registrations, property deeds, and any recent property appraisals. Finally, copies of payroll stubs, W-2s filed with your previous tax returns, a marriage certificate, and employment contracts may also be requested.

      Your attorney will likely advise you to consider which marital assets are especially important or have sentimental value. Your team of advisors should evaluate the tax consequences of keeping certain assets. Often overlooked marital assets include season tickets, club memberships, and timeshares. If you have minor children, consider the financial implications of various custody arrangements, including education expenses and the effect of inflation.

      Depending on your current career, various steps should also be taken, and decisions considered. Small business owners should inform any partners of the pending divorce. If you and your spouse are involved with a family business, examine the roles of each spouse and how they will be affected. Stay-at-home moms should weigh via cash flow analysis the financial implications of continuing this role versus going back to work.

      Georgia applies a doctrine of “equitable division of marital property” in divorce. This doctrine is designed to ensure that property accumulated during the marriage is fairly distributed and can frequently override the current legal rule of property owned by both parties in the divorce. As a result, the spouse who does the best job of planning in advance of the divorce hearing is often the party who stands to gain the best settlement. For this reason, be sure to select a team that has experience with your special needs during this transition.

      To learn more or get help with your finances, please visit us at homrichberg.com, send an email to info@hbwealth.com, or call 404.264.1400.

      Download this article.

      Important Disclosures

      This article may not be copied, reproduced, or distributed without Homrich Berg’s prior written consent.

      All information is as of the date above unless otherwise disclosed.  The information is provided for informational purposes only and should not be considered a recommendation to purchase or sell any financial instrument, product, or service sponsored by Homrich Berg or its affiliates or agents. The information does not represent legal, tax, accounting, or investment advice; recipients should consult their respective advisors regarding such matters. This material may not be suitable for all investors. Neither Homrich Berg nor any affiliates make any representation or warranty as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable but are not guaranteed. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decision.

      ©2024 Homrich Berg.