Pamela Maass Garrett
Appearances
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Hi, Money Rehabbers. It's Pamela Mosquera. You may know me as Law Mother. I'm going to be guest hosting this week while Nicole is on maternity leave. This week, I'm here to tell you about what I do best, how to protect and grow wealth. You might remember me from my guest spot on Money Rehab. I was one of Nicole's last recordings before she had her daughter.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And in that episode, I spilled all the secrets on how to protect your assets. But this week, we're going to go even deeper into the crossroads of wealth and the law. And I'm going to bring you my insights from my work, plus real raw conversations with thought leaders and celebrities who've lived through all kinds of legal and financial storms like divorce.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Now, Nicole wanted me to have this conversation with you because after losing her home in the LA fires, she knows how crucial it is to hope for the best, but plan for the worst. And that's exactly what we're going to do this week. But first, I wanted to kick off my episode this week solo so I can tell you a little bit more about me and why I do the work that I do.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
But this episode isn't all about me. It's actually mostly about you and your kids. Today, I'm going to be sharing four secrets to make the kids in your life rich, even if you can only start small. And if you don't have kids, stick around anyway. This could be for your nephew, goddad, or your bestie with a kid on the way, or even your future self. So let's rewind.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
I didn't grow up with a trust fund. My mom was a teacher, my dad an engineer, and I was taught you have to work hard for money. In high school, I took a law class, and I also watched way too much Law & Order. And in high school, I told my family I wanted to be a lawyer, and they weren't thrilled. I was hooked, but they had had bad experiences with lawyers. They didn't trust them.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And my dad encouraged me, though. He suggested, though, I follow in his footsteps and study engineering first and then go to law school. So that's what I did. law. So after law school, I started my career as a prosecutor. And that's where I saw what happens when families don't have a plan.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
I handled cases where parents died suddenly, leaving their kids caught in court battles, or worse, their kids ending up in foster care. And I saw siblings fight over money, children losing everything, families torn apart simply because no one had put the right protections in place. And that's when it really hit me. Most people don't plan because they don't know how.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And the wealthy use legal tools to protect their families and assets. And these same tools are available to everyone if they know where to start. So the more I learned about the law, the more I understood the tools the rich use to protect their assets are actually available to everyone. And I started using them myself with my clients to build generational wealth.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And now I want to share them with you listening. So most parents think they need thousands of dollars to invest for their kids. But what if I told you that you only need $100 a month, and that's less than most people spend on coffee, to turn your kids into millionaires 100% tax-free? So let's break it down, and I want to start with the problem first.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Every parent wants their kids to have a strong financial future, but most feel overwhelmed. Many assume they need large amounts of money to start investing, so they never do anything. And the truth is, even small investments, if done the right way, can turn into millions over time. And if you put the money in the right accounts, your kids can keep every penny tax-free.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
So for example, a mom friend of mine called me recently and said, I want to invest for my kids, but I just don't have thousands of dollars laying around. And she assumed investing was only for the wealthy, so she just never got started. I asked her, can you afford $100 a month? And she said she could.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
What she didn't realize is that if she had started investing $100 a month into the right account, it could turn over to $1,000,000. When I showed her the math, she was shocked. The biggest mistake parents make, thinking they need a lot of money to start investing. And the truth is, time matters more than the amount you invest.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
The earlier you start, the more you can take advantage of compound interest, where your money makes money on top of money. And if you wait, you lose hundreds of thousands of dollars in potential growth. So that's a problem. Let's dive into the solutions and go into secrets to make your kids rich. So secret number one is a brokerage account.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And a brokerage account allows you to invest in stocks and index funds for your child while they are still young. And the best part is you can open them in five minutes on Public, Merrill, Fidelity, Vanguard. There are so many options. But opening a brokerage account is just the first step. You need to actually make investments.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Now, I personally invest in low-cost index funds like VOO, and VOO tracks that S&P 500. This means your child's money is invested in the 500 largest companies in America. So what exactly is a low-cost index fund? It's a diversified investment that spreads money across hundreds of stocks. And it has low fees, meaning more of your money stays invested instead of going to fund managers.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Now, historically, the S&P 500 has returned about 8% to 10% per year, which is way more than a savings account. The average savings account in the US right now is returning less than 1%. So let me give you an example. If you invest $100 per month from birth, at the time your child turns 21, that could be over $80,000.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And if you don't contribute any more and they just leave it invested, at retirement, it will be worth over $2 million. So should you set up a custodial brokerage account or a regular brokerage account? And the difference here is a custodial brokerage account, you're opening with your child's social security number, it's their money.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
A brokerage account in your name is actually under your social security number. So this is where people often get blindsided. And I wanna give you an example. A client I worked with a few years ago got blindsided because she set up custodial brokerage accounts for her boys. She put a lot of money in it. So at the time she called me, it was worth over $300,000.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And she didn't realize her kids were going to have full access at age 18. And understandably, her sons didn't have the life lessons to really know how to responsibly use that money. So that is the downside of custodial brokerage accounts. It is your child's money and it has an age of majority provision, which means they have full control at age 18.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
So this is why for many, it's better to just set up a brokerage account in your own social social security number, and just earmark that money for your kids. Now, the downside of this is if you end up selling stocks, this will go on your tax return, not your children's. So it will be at a higher tax rate. But for many people, that trade-off is worth it.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
They want to keep control of that and give it to their kids when they feel like their kids are financially ready. Secret number two is a 529 plan, and this is the best way to save for college, and it has huge tax benefits. So what exactly is a 529 plan?
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Well, it's a college savings vehicle that allows you to invest money tax-free as long as the funds are used for educational expenses, with some exceptions I'll get to here in a moment. So why is it great? Well, the money grows tax-free, and that's a huge advantage over regular savings accounts and traditional brokerage accounts.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And you can use it for college, trade schools, and in some states, private K through 12 tuition. Now, some states also offer a tax deduction for the contributions you put in. And the biggest question I get is, well, what if my kids actually don't go to college? And in that case, you can roll it over to other family members and even yourself.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And thanks to recent legal changes, you can even roll $35,000 into a Roth IRA retirement account. So for example, if you invest 100 per month from birth, your child could have 50 to 60,000 by the time they turn 18. And they can also leave it in there. So this is best for parents who are sure they want to save for college or a trade school. Let's get into secret number three, a custodial Roth IRA.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And this is a tax-free millionaire strategy. Plus it gives you a business tax hack if you're a business owner. So if your child earns income, and that could be from a job, a side hustle, or you can employ them working for your business, then they can open, you can open up for them a custodial Roth IRA. Some people call this a Roth IRA for kids. So why is it great? Well, the money grows tax-free.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
The earlier they start, the more they can take advantage of this compound interest, and they can withdraw contributions anytime for college, a home, or emergencies. There is a contribution limit each year. In 2025, you could put in a max of $7,000 per year for those who are under 50.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
So for example, if your child invested 100 a month from age 12 to 18, that money could grow to over a million by retirement, and that's tax-free. So I want to share with you my personal story here and how I use my business to fund my kids' future. So I've hired my children in my business, and they do promotional marketing videos for me.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
My kids are one in four, so that means I show them in videos and photos, and then I pay them as a 1099. And the IRS allows my children and anyone else to earn up to $14,000 and not have to file their own tax return. And then their earnings go into a custodial Roth IRA. And there is a contribution limit. To remind you, I can only put up to $7,000 a year into each of their Roth IRAs.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
But once I put it in there, it's going to grow tax-free for life. Now, if you are concerned about your children's privacy and maybe your business owner, but you don't want to share photos and videos of your kids on your social media or in your marketing materials, you can always use photos and videos that don't show their faces.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Or you could have them do behind the scenes tasks if your children are a little bit older, like filing or greeting at events. So this strategy is best for people who are business owners and want to legally shift income to their kids while also setting them up for wealth and for parents who have teenagers working a job. And lastly, secret number four, a trust, the secret to generational wealth.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
So what is a trust? Well, it's a legal structure that allows you to pass down assets like real estate investments and life insurance without going through probate. And there are two main types of trusts, a revocable living trust and an irrevocable trust. And for the purpose of this secret, I'm talking about a revocable living trust.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
For 99% of Americans, that's the type of trust they're going to use. Revocable meaning you can change it throughout the rest of your life. Living meaning you've set it up in life. Now for high net worth individuals, sometimes you'll also set up an irrevocable trust. These are trusts you don't change. And these are trusts that you're typically giving up control over. for other types of benefits.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
So why is a trust a great strategy? Why does avoiding probate matter? Well, probate can take from nine months to two years and cost thousands in legal fees. On average, 5% to 9% of the value of the estate. A trust avoids probate, meaning your kids get their inheritance faster and with fewer costs.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Your children also get a step up in basis on any real estate you pass through a trust, which reduces or eliminates capital gains tax when they sell the assets they inherit. So I want to share with you a real life example. A mom called my office a few years ago after adding her kids to the title of her house. She made them co-owners thinking this would pass her home in the right way.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And years later, she called my office because she wanted to remove her daughter from title. They had had a falling out, but the daughter refused. But worse, because the kids were co-owners, they now have a capital gains tax issue on the $350,000 in gain when they go to sell the house.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
So if she had put her house in a trust instead, her kids would have inherited tax-free and received a step-up in basis, meaning they wouldn't owe capital gains taxes. So a trust is really best for parents who want to make it smooth and easy for their kids after they pass away, and for parents who want to protect their assets, avoid probate, and pass down wealth tax efficiently.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
And there you have it, money rehabbers. Before we wrap up, I've got two incredible free gifts for you. First, I want to send you a free copy of my bestselling book, Legally Ever After, your guide to securing your future and protecting what matters most. And that's not all.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
We're launching something huge in May, an exclusive new app designed to make growing and protecting your wealth even easier than ever. As a listener, you have the chance to join our insider beta group and get early access before anyone else. So claim your free book and beta invite now by heading to lawmotherco.com forward slash money rehab or clicking the link in the show notes.
Money Rehab with Nicole Lapin
4 Secrets for Making Your Kids Rich with "Law Mother" Pamela Maass Garrett
Stick with me this week for even more game changing money tips to help you build your best wealthiest life. And if you don't want to wait for the next episode, let's connect. Find me on Instagram at lawmotherco and let's make wealth happen together.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Well, thanks for sharing that. And I'm sorry to hear that your family members have had to go through all that and have had that loss. It sounds like what you're saying is homeowners should push back if they feel like their claim has been undervalued. Is that your thought?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
You mentioned earlier when you're emailing your insurance adjuster, don't be like, this is bad faith. But could you talk about what are the signs that the insurance company is acting in bad faith? And what should homeowners do about it?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
You mentioned this relationship and documenting and that you might have lots of adjusters. And earlier, you mentioned this tip that I want to highlight here that keep records of everything you're all when you're talking to who what they're talking about, send an email afterwards summarizing.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
And I just want to highlight it here because I don't think people really realize if they're not in your position that the insurance company is keeping detailed records. So there on their end, there's a claims file where they're every adjuster is documenting every interaction with you, what you say. And sometimes it might be right. Sometimes it might be wrong.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
And until you get to the point with having a lawyer, there's no one on your side doing it unless you do it. And have you found that that's really helpful that people do that from the beginning? Yeah.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Yeah. And for you as the homeowner, this is a very critical moment in your life, a very important moment in your life. For the claims adjuster, they have a huge caseload. They're dealing with multiple clients. It's very easy for them to not get to things. And so you doing that is so vital. At what point should someone bring in an attorney to fight their insurance company?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Well, you touched on something there because I guess in the beginning, if you're not sure what to do, how to correspond with the claims adjuster, you're not really sure if you're, I guess there's probably some people who don't want to feel like they're overreacting. And there's probably some people who just don't know what they don't know. Is there ever too soon of a time to reach out to a lawyer?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Can you, the moment it happens, could you reach out to a lawyer and start getting some support?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
How much does it cost to hire an insurance lawyer and are there contingency fee options?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
And then you mentioned some resources that were available to help homeowners navigate this. Are there any state or federal specific resources in addition to the nonprofit that you recommended?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
So for homeowners and renters who haven't lost a home, but they've just heard this in the news, they're feeling concerns, preventatively or in advance, what should homeowners look for in their policy to ensure that they're covered for certain types of climate disasters?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Hi, money rehabbers. It's Pamela Moscarra, aka Law Mother. I'm a lawyer specializing in growing and protecting your wealth. And this week, I'm filling in for Nicole while she's out on maternity leave. The recent wildfires in Los Angeles have left many families devastated, facing the unimaginable reality of losing their homes. As you all know, this happened to Nicole.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Got it. You mentioned kind of replacement and actual cash value. Can you talk about what the difference is and why it matters?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
But even for those who still have a roof over their heads, this is a wake-up call. If disaster strikes, will your insurance company actually have your back? Today, we're talking to an insurance lawyer who helps homeowners fight for the payouts they deserve. Whether you've lost everything in the fires or just want to make sure your policy is solid, this conversation is for you. Welcome, Susan.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
That's super helpful. Thanks for distinguishing that. How often do you think homeowners should review and update their policies?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
That's such a helpful example. And I know when I do an annual review with my broker and so they keep the pulse. That's nice. They keep the pulse on construction costs, what's happening in your area. And just since the pandemic, just the cost of construction has gone up so much. It continues to go up.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
And I'm always shocked when I talk to people and their remodels and how much more it is than I thought. And that's just the reality we live in. So keeping in mind that if you haven't looked at your policy recently, likely you are underinsured. I think you touched on this, but I just want to highlight it.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Do most policies cover temporary housing and additional living expenses if your home is lost in a fire?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
You mentioned if you purchase new belongings to be sure you're getting it covered. Are there limits on types of personal belongings that are recovered? Is it just whatever you share they'll do? Are there specific limits around personal items generally?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
What record should homeowners consider keeping before a disaster happens?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Should homeowners get their homes independently appraised to avoid what we've been talking about, these low ball insurance payouts?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
What's one piece of advice you wish every homeowner knew about insurance?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Where can people find you if they need legal help with their insurance claim and they want to chat with you?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Susan, we end all of the episodes of the Money Rehab Podcast by asking our guests for one tip listeners should take straight to the bank. Do you have any final words of wisdom for homeowners who want to protect their assets?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Thanks, Susan. Let's start by talking about homeowners who lost their homes. What should a homeowner do immediately after their house is destroyed?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Well, thank you so much, Susan. This was wonderful. I really appreciate all your tips.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Absolutely. Before we wrap up, I've got two incredible free gifts for you. First, I want to send you a free copy of my bestselling book, Illegally Ever After, your guide to securing your future and protecting what matters most. And that's not all. We're launching something huge in May, an exclusive new app designed to make growing and protect your wealth even easier.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
As a listener, you have the chance to join our insider beta group and get early access before anyone else. Claim your free book and beta invite now by heading to lawmotherco.com forward slash money rehab, or by clicking the link in the show notes.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Very helpful. I think one thing that you mentioned was a certified copy of your policy. And for those who don't understand what that means, could you just maybe expand on what that is and why that's so important?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
And then the other thing you mentioned is if you are in a neighborhood, and I know the Marshall fires here in Colorado, and we've been talking about Nicole, who is in Los Angeles with the LA fires, you mentioned the tip about getting together with your neighbors and
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
If there are larger builders who will build kind of the homes together, does it matter that multiple neighbors might have different types of insurance carriers? Like, does it have to all be the same insurance carrier? Or can you explain, expand a little bit more on that?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
What's the best way to document damage for an insurance claimant?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
You mentioned kind of your emails to the adjuster. your claims are gesturing. You have a phone call with them, send them a summary of what you did. I guess something that comes to mind or a mistake that I've seen is people not realizing that what you put in email could become evidence down the road in a trial.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
So can you touch base on maybe what you wouldn't want to include in the email and some tips around that if you are sending summary emails afterwards, some do's and don'ts?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Yeah, you touched on that for a moment and it made me think about social media and the mistakes people make where they're then posting on social media certain things about what happened and what people have said.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Yeah, and I think, at least from my experience too, where people make mistakes is the adjuster, if you keep in mind down the road, if this ends up in trial, which most cases will resolve, but if it does end up a trial, if the adjuster is being inappropriate in emails to you, and losing their mind, that's all going to help your case.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
And the evidence is going to be you being professional, you being calm. And whatever you put on social media is pretty much going to be fair game in the case. And so knowing, I think a lot of people think, oh, I can just delete the post later and that's destroying evidence.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
So I feel like it's always like that's the after the fact, the reaction afterwards where people are like, oh, I wish I wouldn't have made that post on social media. I didn't think it would come into my case and it will. So you're once, you know, that happens, everything you post online is fair game. Yeah, you're absolutely right.
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
Are there any deadlines homeowners need to be aware of when filing a claim?
Money Rehab with Nicole Lapin
Wildfire Wake-Up Call: How To Protect Your Home and Finances If Disaster Strikes
What are the most common reasons insurance companies deny or delay wildfire-related claims?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
As a lawyer, I know that divorce is obviously a legal process, but it's also emotional. Can you talk a little bit about your emotional arc during that time? I know we just kind of started with you going to the Globes, but then you went through the whole divorce. Can you kind of tell us about how that was emotionally?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
There's so many powerful things that you mentioned there, but you mentioned some triggering of pain and some triggering of childhood with going through it with your family, which is very understandable. My husband, his parents divorced when he was three, and we still talk about all of that with him yelling. And so I definitely resonate with that.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I'm curious if there was some things that triggered healing there. And you said so many beautiful things about how you weren't going to repeat the pattern and you wanted the birthday parties to be wonderful.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Were there things about it that triggered healing for you, whether it was with regard to your relationship with what you went through as a child or in other parts of your life now reflecting back?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
One of the things that you shared is your initial moments of going through a divorce and kind of the fears that came up. And for those listeners who maybe they're in the initial part of it, or they're supporting someone that's in the initial part of it, back then, what was your biggest fear?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Hi, money rehabbers. It's Pamela Moss Garrett, a.k.a. Law Mother. I'm a lawyer specializing in growing and protecting your wealth. And this week, I'm filling in for Nicole while she's out on maternity leave. In this episode, I'm talking about a seven-letter word that's hard to say out loud, divorce. If you've been through a divorce, you know there's no sugarcoating it.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
After my divorce, I put myself out there in ways I never expected and did things that I never thought I would expect. Reflecting back, I think if I had stayed in the marriage, I would never have pushed myself as much into other areas. Can you like looking back, what did you learn about yourself during that time?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
It's tough emotionally, legally, and yep, financially. And if you haven't been through a divorce, statistically speaking, there's a solid chance you know someone who's going through one right now. I personally went through a divorce in my early 20s before I became a lawyer. And I made a few mistakes now reflecting back on as a lawyer that I wish I would have known.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I have a one-year-old and a four-year-old. So I'm definitely in the season of what you're describing right now. And I think on one of your recent podcasts or the podcast I listened to, you had an intro about, you know, being in the now. And I just remember like, oh, thank you, Kat. Thanks for saying that.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And there's so many moments of in the day, like you said, with me balancing work and taking care of them and just being like, okay, Like I'm changing my son's diaper right now. I'm going to connect with him. And even if, you know what I mean? It can be just so powerful. It's not so much about the quantity, right? It's about that quality. So I think that's such good advice.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I think something that surprised me in my divorce, and I don't know if it was the truth with you, was some people's reactions to it that I wasn't expecting.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I think something that surprised me in my divorce, and I don't know if it was the truth with you, was some people's reactions to it that I wasn't expecting. There were certain family members that I was expecting to have a certain reaction that didn't. Did you have any family members or friends that you had a surprising reaction to or that you were expecting something different? Yes.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And I'm going to share those with you in a moment. Today, I'm remarried with two kids, and I feel like the lessons I learned through my divorce have made me an even better person and partner. Today, we're tackling divorce in two parts. First, I'm going to give you strategies around how to protect your money when splitting with your partner.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Yeah, I think that's very powerful.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And I think that it sounds like you had already kind of built that muscle of not shutting, even though it still affects everybody, you know, hearing that stuff, but you'd already kind of developed that muscle of, hey, I'm going to focus on myself, your opinions are yours, and had that practice so that when this happened, it wasn't so maybe as intense, or maybe it was in the first versus the second, but
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Did you have support system, friends, family, help or no help throughout the process? And how did that impact you?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Next, you're going to hear a conversation between myself and Kat Sadler about protecting your mental health during a divorce. Because in cases of divorce, it's all about protecting your health and wealth. So let's start with the financial side of things.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
That's so important. Did going through the divorce change the way you think about relationships?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Divorce is a business deal, meaning when you go through it, it's best to approach it with a rational, calculated mindset, like negotiating a business transaction. Yes, it's also emotional, but the legal process, it's about untangling assets and liabilities. And if you go into it only thinking with your heart, you might get financially wrecked. So let's talk strategy.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Yeah, I think there's probably listeners on right now that... are going through something similar where they either are currently in a very unhealthy relationship or they've gotten out of an unhealthy relationship. And kind of hearing your perspective is so powerful. I used to as a prosecutor, prosecute domestic violence.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And I didn't realize how prevalent domestic violence was in our society until I interned at the DA's office in law school and then really saw that it really goes across every socioeconomic, every race, every culture. It's so prevalent in society. And so I went on my own journey asking a lot of those questions.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And then I went through the same thing where I did allow some toxic, horrible relationships that were way worse than my divorces Right. So, so thank you. Thank you for sharing that. There were a few things that you said that really drew me in. And I think one is that level of shame and there is this level of wanting to take responsibility and ask yourself and get to the other side of that.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
There's also this level where it becomes so unhealthy, right? Where you're, you're creating more damage to yourself that you don't want to do. What do you think really made a difference getting yourself out of that?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I'd make yourself a to-do list with these seven things on it. Number one, get your financial house in order yesterday. Before you even say the word divorce, start gathering financial documents. This includes bank statements, tax returns from the last three to five years, retirement accounts, investment portfolios, credit card statements, mortgage documents, and other debts or loans. Why?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And I think just the having the boundaries, being clear, reaching out for support, and then that level of clarity of what you're looking for. Once you take that time to do that, there's so much power of that. And I know when I first started dating after my divorce, I was so young and naive and I was just like, love is, you know, it's not definable.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And I went out with a whole bunch of jerks and losers. And then I was like, okay, I need to get my stuff together. I need to think about what I'm really looking for in life. You get your heart broken. Once you get that level of clarity, it's so much easier to attract it into your life. and to not settle for anything else. So that was really, really powerful.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Because if things get messy, you don't want to be scrambling for paperwork while emotions are running high. And in some cases, although I really hope this doesn't happen, a spouse might try to hide assets once a divorce is on the table. So you want records of everything before that happens. Separate property is anything you owned before the marriage, inheritance, gifts given to only you.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I feel like a lot of people feel a pressure to bounce back quickly after a divorce, after a breakup. What would you say to someone who feels like they're behind in starting over?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I mentioned your amazing podcast, Kat Sadler Now, where you have powerful conversations at the intersection of wellness and so many other parts of our lives, business, relationships, personal growth. Do you think having to navigate challenges in your life has affected how you approach these big conversations on your show?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And in some cases, this is yours to keep. But depending on your state, this can get messy. For example, if you had a real estate prior to the marriage and commingled it, it becomes marital property, which I'll talk about in a moment.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Divorce is tough, no way around it. But if you go in with both eyes open, financially and emotionally, you can come out stronger. Whether you're navigating this yourself or supporting someone who is, I hope today's episode gave you some clarity. And if you like this episode, share it with a friend who might need it. It's been so fun guest hosting Money Rehab this week.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I hope you found these three episodes helpful. And as a parting gift for you, I've got two incredible freebies for you. First, I want to send you a free copy of my best-selling book, Legally Ever After, your guide to securing your future and protecting what matters most. And that's not all.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
We're launching something huge in May, an exclusive new app designed to make growing and protecting your wealth easier than ever. As a listener, you have the chance to join our insider beta group and get early access before anyone else. Claim your free book and beta invite now by heading to lawmotherco.com forward slash money rehab or clicking the link in the show notes.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And if you liked what you heard this week, follow me at lawmotherco on Instagram for more tips on protecting your wealth. I'll see you there.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And in many states, if you have assets that increase in value, like real estate, stocks, and a business, this increase in value during the marriage is seen as marital property. For example, if you owned a condo before the marriage worth $200,000 and during the marriage increased in value to $500,000, then that $300,000 increase can be seen as marital property.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Marital property typically gets divided unless it's otherwise stipulated in an agreement like a prenup. How this gets divided is going to be state-specific and can often be related to how long you've been married. If you have a prenup, prenuptial agreement, amazing. That'll clarify a lot. You know Nicole and I are both pro-prenup.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
If you don't have a prenup, you'll need to work with a lawyer to untangle who gets what. Number three, protect your credit. If you have joint credit cards, now is the time to get your name off of them or freeze the account. Otherwise, your ex could run up debt and legally you could still be on the hook. Also, check your credit report regularly.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
If your ex is making financial moves in your name, you need to know as soon as possible. Number four, be smart about real estate. A lot of people get emotionally attached to keeping the house. But here's the hard truth. If you can't afford the mortgage, taxes, and upkeep solo, keeping the house might be a financial disaster. So run the numbers.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And if you do keep it, refinance the mortgage in your name so your ex isn't still tied to it. If they keep it, same deal. Make sure your name is off the loan. This is one of the mistakes I made during my divorce. In our divorce agreement, my ex-husband was to take over the mortgage and refinance. However, he never did. Unfortunately, this was back in 2008 when the housing market crashed.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
So six months later, the house we bought was worth half the price and my name was still on the mortgage. When he stopped paying the mortgage, it wrecked my credit for about seven years. Number five, don't forget retirement accounts. Pensions, 401ks, IRAs, they all get divided too. And depending on how your assets are split, you may need a qualified domestic relations order to get your fair share.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
A qualified domestic relations order is a legal document that divides retirement plan assets between spouses during a divorce, ensuring that non-employee spouse receives their rightful share without triggering early withdrawal penalties or tax consequences. Number six, hire the right lawyer, not just an aggressive one.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
An aggressive divorce attorney might seem like the right move, but the right lawyer is the one that understands your needs and will get you to the goal you need. There are divorce attorneys who are known as sharks who are extremely aggressive, but that can also be a liability and risk for you that may backfire.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
For example, if you want an amicable divorce, yes, those do exist, especially if you have kids. A lawyer that's known for building bridges and being reasonable is more likely to get your case resolved sooner. I've personally seen extremely aggressive attorneys draw out cases longer than they need to be, which ultimately costs you much more money.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Be sure to interview a few lawyers before you'd commit. I'd say the most helpful criteria is to find someone who's handled divorces like yours, so don't be shy in the first meeting. Share the details that might be relevant, like how long you've been married, what your ideal situation is. I mean, really, don't be shy.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
And if your divorce is relatively amicable, a mediator could save you a lot of money and legal fees. This was a mistake I made. I hired a very cheap attorney, and because he was so cheap, I felt like he cut corners. For example, he didn't advise me with regard to real estate issues and my ex not taking me off the mortgage. He dropped the ball there and that cost me big.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
I really wish I would have spent a little bit more money to get someone who would have helped me cover my bases. Number seven, plan for life after divorce. Divorce is not just about getting through the process. It's about what happens next. Make a new budget, update your will, trust, and other state planning documents.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Adjust your insurance policies and start thinking about rebuilding your financial future. One of the biggest mistakes I see is people forgetting to remove their ex as beneficiaries on their accounts, and they unexpectedly pass away and their ex receives everything. Okay, so that's the money side of things. But as we all know, divorce isn't just financial, it's a full-blown emotional rollercoaster.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
So let's hear from someone who's been through it in the public eye. You may have seen Kat Sadler from her work as a reporter on E! News, but now with her podcast, Kat Sadler Now, you really get to know her. Today, I sit down with her to get her advice on how to protect your mental health during a divorce. Here she is.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Kat, you have an amazing podcast, Kat Sadler Now, and you used to open the show with this introduction. I'm going to read it to you. Used to say, after a broadcasting career spanning three decades, raising two kids, and dissolving a few marriages, I've learned a thing or two about life, about love, about becoming the best version of ourselves.
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
Today I want to talk to you about how you learn those lessons in the wake of divorce. And I want to start with a story you told on your podcast about a driver who was taking you for the first time, your first time covering the Golden Globes, and he totally changed your perspective on the divorce you were going through. Can you tell that story?
Money Rehab with Nicole Lapin
Catt Sadler and Law Mother: Saving Your Wealth and Health During Divorce
That's powerful. And what I'm hearing is the driver kind of gave you a new perspective. And why do you think that was something that you really needed to hear at that moment?