Starting Over: Divorce

Divorce rates have been on the decline in recent years, and several factors are contributing.  Fewer couples are choosing marriage to begin with – opting instead to stay single and co-habitat.  This is especially true in lower income categories. However, one age group that does find divorce rates growing are those over 50.  Similar to career change – more people over 50 are getting divorced than in previous years and this change carries some big costs.

To begin with, there is the price of divorce itself.  This includes everything from litigation fees, to charges for document copies, and attorney bills.   Attorney fees are usually the highest price tag item. With lawyer fees averaging $250 per hour, if you can agree on property distribution and child custody details without a lawyer, saving yourself this cost will be huge!  If you think you can come to an agreement out of court and save yourself the money, check out Divorcenet and their guide to DIY divorces for tips.

Be prepared ahead of time and costs will be more manageable.  To start, make a list of your assets and liabilities before going to a lawyer.  Both categories will need to be divided. Now is the time to open individual banking accounts and start to close off joint accounts.  Make sure that you change names as appropriate on all titles, deeds, and accounts. Monitor your credit report throughout this time as well.  Because debt is split, your spouse may end up paying for debt that still has links to your name on it.

Next, there is the cost of starting over to consider.  Be sure to consider the price of having 2 of everything.  Two residences, two sets of bills, not to mention savings accounts split in two, and two sets of insurance policies (health & home/auto). Filing income taxes separately will also result in much different returns going forward.  You will need to consider if you will be paying or receiving child support or alimony money. Alimony is taxable and must be reported while child support does not.

On the bright side:  many people find that the emotional freedom is worth the financial costs.  Create a new budget for yourself….look at where you can cut costs and increase savings.  You won’t be able to spend like you could with two incomes and one home, so you will need to list priorities in order.  Experts recommend meeting with a financial consultant to help organize and make sure you considered everything.


Robert Diggs

In 2014, the PCLA (Pennsylvania Consortium for the Liberal Arts) was formed.  Currently consisting of eleven Pennsylvania liberal arts colleges, PCLA has an incredible mission and vision.  The consortium works to share knowledge and cost efficiencies with its members to help improve the quality of their programming to students and other institutional stakeholders.  PCLA strives to create more opportunities and better access and includes Bryn Mawr, Dickinson, Franklin & Marshall, Gettysburg, Haverford, Juniata, Lafayette, Muhlenberg, Swarthmore, Ursinus, and Washington & Jefferson Colleges.

Robert Diggs has been a vital part of PCLA for almost 3 and a half years, currently employed as the Implementation Manager. 

 Through his role, Diggs is responsible for all aspects of the consortium’s work including event management, internal sub-grant stewardship, and maintaining the PCLA’s social media/website presence. Working for a membership organization, Diggs believes his top priority is to be responsive to the pressures that his member institutions face.  As a result, he strives to deliver the programming needed, or provide the support necessary, to enable the solutions that best address the needs of the consortium membership. This response can vary from organizing a collaborative conference call for sharing of best practices, to the organization of a workshop where experts can help institutional professionals work through the issue at hand. Diggs’s job is to help identify the right solution and implement it.

Diggs’s favorite part of his roles as Implementation Manager is serving as a generalist.  As a generalist he is able to help the institutions collaborate when and where it makes strategic and financial sense. He has been exposed to myriad areas of running a small liberal arts college, and eleven different examples of how to educate a mind…professional experience he would not have gained by working at just one institution, or a single nonprofit.  This experience has been rewarding and beneficial!

Diggs earned a BA from Franklin & Marshall College, where he majored in the Government Department, and is currently pursuing a Certificate in Nonprofit Executive Leadership from the Lilly Family School of Philanthropy at Indiana University – Purdue University Indianapolis (IUPUI).  Diggs has worn many hats throughout his professional life, leading to a unique perspective of liberal arts institutions and how best to serve them. Beyond higher education, Diggs has worked in the Fortune 500 world for a subsidiary of eBay, and in education access for the New York City based program Prep for Prep, of which he is an alum.

Diggs is always open to connecting with people. A part-time member of  The Candy Factory, you can find him there on most Tuesdays and Fridays, or feel free to email him at rdiggs@fandm.edu for additional information or questions!

 


Starting Over: Career Change

A growing trend in today’s job market is for workers to change careers at least once.  There are a multitude of explanations for these changes. A big reason is being able to try out a career that didn’t exist years ago.  Technological fields such as social media and cyber security are some of the largest growing areas. Another reason for increased job switching is the rate that companies are downsizing, closing, or relocating.  Initially upsetting, these misfortunes can lead to great opportunities to look in a new direction! Many women who return to the work world after having children find that having a schedule that coordinates with their kids’ school schedules is more important than making big bucks.  Still others find themselves at the other end of parenting after children have moved out. Now can be the time to take on the new career that you’ve been wanting to try but were worried about job security as you raised a family. Perhaps you don’t need quite as much income, as many work hours, or the stress that comes along with all of that.

Even as the career change trend shows an increase, surveys show that while a large percentage of older workers wish to change careers for many of the reasons mentioned, less than 10% of them will make a change.  However, the vast majority of those who do make the switch report being very satisfied and successful in their new career. So how do you successfully make the switch?

Talk to family, friends, and professionals in the new career. LinkedIn is a well known online tool for meeting and talking with professionals across job sectors.  Career counselors can also be a valuable asset. List the skills, training, perspective, and experience that you’ve acquired over the years that can make you valuable in a new position.  Research what additional training you would need to enter the new field. An online search of available training is a great place to start as is talking to those currently working in your desired field.  If you are someone who tends to be adverse to risk, consider options to enter your new career part time to start, while still holding on to the security of your full time position. Last, plan your budget to determine what you truly need to earn to make ends meet.  Be honest during this phase of the planning and check out “Your Family Budget” for tools to help set-up and stick with a new budget.

Finally, time to polish off that resume!  Monster.com provides a free resume review.  This can be a great place to start if you’re updating for the first time in several years.  Utilize friends and family to practice interviewing skills. The Muse shares 31 Common Interview Questions, along with tips on how to answer them!  When interviewing, let it be known that you are switching careers because you’re passionate about the field you are entering.  Your enthusiasm and energy, combined with the skills and experience gained in prior careers will make you an attractive candidate!


Starting Over: An Introduction

Starting over can come in many forms.  For some, beginning fresh with a whole new career path later in life can mean exciting but daunting challenges.  How do you secure the right training for your new field? Does the resume that you created in 2000 still hold up in today’s business world?  For other people, starting over may be initiated by a divorce, a new home in a new neighborhood, bankruptcy or foreclosure. How do you navigate when you find yourself in unfamiliar waters without a map?

One current trend is the growing rate of divorce among those over the age of 50.  Rates of divorce for couples over 50 have actually doubled over the past ten years.  Another rising trend shows that more people are making big career changes later in life as opposed to be being stuck on a job path that they don’t enjoy.  CNBC has explored this topic in their article “Career Change is the New Normal of Working”.  Their first tip is to enlist help as you begin negotiating career change – don’t attempt it alone!

Our next several blog posts are going to focus on the increasing trend of “starting over” that many of us find ourselves embracing, for better or worse.  Each entry will cover a topic, including:

  1. Job training, search, and resume building
  2. Creating a budget when you need to start over financially
  3. Rebuilding after divorce

If there are additional areas that you would like more information about, please just leave a comment!  These topics are all unique to the individuals involved, but there is certainly some common ground we all share and can explore.


Sobeida Rosa

 

The Candy Factory is an amazing asset to Lancaster business people looking to co-work. This co-working facility offers office space to entrepreneurs and small business owners, as well as conference rooms and event space rentals to the public. The Candy Factory is a great alternative to working at a cafe or working from home. Anyone that works out of the space is exposed to an amazing community of local professionals.

One of the local professionals helping to make the Candy Factory amazing is Sobeida Rosa.  Sobeida is the Community Facilitator for the Candy Factory. As a part of her role, she writes blogs on members and plans the monthly events that make working at the Candy Factory so much fun. Sobeida also does administrative work  in addition to giving tours to potential members, and helping to greet members and guests at the front desk.

Sobeida is a Lancaster native who was introduced to the Candy Factory through Advantage Lancaster, a local mentorship program that aims to expose inner-city youth to a variety of experiences and opportunities. Sobeida has been involved in the program since 2011, first as a student and then as a paid intern. In the summer of 2017 Advantage Lancaster had connected with Anne Kirby, the founder of the Candy Factory, and created an internship opportunity that allowed Sobeida to work part time. Now, Sobeida is working as the Community Facilitator.

As a resident of Lancaster City, Sobeida attended McCaskey High School. Throughout her time there she was enrolled in Advanced Placement and International Baccalaureate courses. She was involved with the Vidette (school newspaper), National Honors Society and Student Senate among other things. In her final year of high school she was a dual enrollment student enrolled in the Lancaster Campus of the Harrisburg Area Community College and McCaskey. She graduated in 2016 with Honors with a class of 688 students.

Through her work at the Candy Factory, Sobeida shares that she has gotten to view Lancaster through a new light. This is due in part to meeting so many different people and discovering various business professionals. “It’s been a wonderful experience!”  As an aspiring journalist, Sobeida has been exposed to the multiple uses for her journalistic skills through coworking at the Candy Factory.

Sobeida is currently enrolled in Ithaca College where she is a dual-major in Journalism and Spanish. She hopes to use her knowledge of the Spanish language to write articles on issues within the Latinx community in both Spanish and English. Sobeida has had works published in Motivos Magazine, a bilingual magazine based in Philadelphia. As well as several self published pieces on her blog which she started in the summer of 2014 as a creative outlet for herself and the things that interest her.  

To find out more about Sobeida visit her website.

For anyone interested in the Candy Factory, check out their website and fill out their contact form for more information!

 


Independent Contractor or Employee?

A question we receive regularly from clients is whether they should file as an independent contractoror an employee at tax time.  Employers likewise ask the same question when looking at their staff. It is a topic covered with great frequency and popularity, so if it’s something you wondered – you are not alone!

The IRS.gov website lays out the distinction very neatly on their website.  There are several important points to recognize:

Employers must pay careful attention to the distinction when determining what to withhold for employees.  It is an important consideration because employers don’t pay taxes on payments to independent contractors. This is in contrast to income taxes, Social Security, Medicare, and unemployment taxes that must be paid on wages to employees.

There are 3 common ways to break down the difference between contractors and employees.  These categories include behavioral, financial, and the type of relationship. For example, with employees, employers:

  • Can control what and how the worker does their job and the business aspects of the worker’s job, such as how payments are made and what tools are supplied.  
  • There are also written contracts on benefits, such as insurance, vacation time, and the like with employees.
  • Finally, employees have a relationship that will continue indefinitely.

All of these attributes are in contrast to what makes up a sub contractor.  For even more detailed explanations of these 3 determinations, check out Tax Topics.

As an employer or employee, if you are still uncertain as to the correct filing status, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding can be filed with the IRS. After reviewing the individual’s completed form, the IRS will make a final determination as to employee or independent contractor status.  If you are a worker and believe that your employer has improperly classified you as an independent contractor, you can utilize Form 8919 to calculate what is due to you.  And as always, our office available to help with questions whenever needed!