25 essential terms for navigating major life transitions. Plain language, current data.
Consolidated Omnibus Budget Reconciliation Act. Federal law requiring employers with 20+ employees to offer continued health coverage for 18-36 months after job loss, divorce, or other qualifying events. You pay the full premium plus 2% admin fee. Average individual cost: $717/month (BLS, 2025).
Qualified Domestic Relations Order. A legal order that divides retirement plan benefits between divorcing spouses. Required to split 401(k)s and pensions without triggering early withdrawal penalties. Preparation costs $1,500-$3,000.
A calculation used in bankruptcy to determine eligibility for Chapter 7. Compares your income to your state's median. If your income is below the median, you qualify automatically. If above, you must pass a detailed expense analysis.
Private Mortgage Insurance. Required when your down payment is less than 20% of the home's purchase price. Costs $100-$250/month on a median-priced home. Automatically cancels when you reach 22% equity.
Social Security Disability Insurance. Federal benefit for workers who become disabled. Average monthly benefit: $1,537. Initial approval rate: 35%. Average processing time: 5 months. Appeals success rate: 50%.
Bankruptcy type that discharges most unsecured debt in 4-6 months. Requires passing the means test. Average cost: $1,500 including attorney fees. Remains on credit report for 10 years but most filers rebuild to 700+ credit within 4 years.
Bankruptcy type that reorganizes debt into a 3-5 year repayment plan. No means test required. Allows you to keep assets like your home. Average cost: $2,500-$4,000 including attorney fees.
Debt-to-Income Ratio. Monthly debt payments divided by gross monthly income. Lenders prefer below 36% for mortgage approval. Above 43% makes qualifying difficult. A key metric in the PivotReset Health Grade.
Savings set aside for unexpected expenses or income loss. Financial planners recommend 3-6 months of expenses. Only 44% of Americans can cover a $1,000 emergency from savings (Bankrate, 2025).
A retirement withdrawal strategy from the Trinity Study (1998). Withdraw 4% of your portfolio in year one, adjust for inflation annually. Historically sustains a portfolio for 30 years in 95% of scenarios. Updated recommendations suggest 3.0-3.7% for current market conditions.
The Health Insurance Marketplace created by the Affordable Care Act. Offers subsidized health insurance based on income. Open enrollment runs November-January, but qualifying life events (job loss, divorce, new baby) trigger a 60-day Special Enrollment Period.
The method used by 41 states to divide marital property in divorce. Assets are divided fairly but not necessarily equally, considering factors like length of marriage, each spouse's contributions, and earning capacity.
The method used by 9 states (AZ, CA, ID, LA, NV, NM, TX, WA, WI) to divide marital property. All assets acquired during marriage are split 50/50 regardless of who earned them.
The Post-9/11 GI Bill provides up to 36 months of education benefits for veterans, including tuition, a monthly housing allowance averaging $3,400/month, and a $1,000/year book stipend. Benefits can be transferred to dependents.
A mortgage benefit for veterans and service members. Key advantages: 0% down payment required, no PMI, competitive interest rates, and no prepayment penalty. VA funding fee of 1.25-3.3% can be financed into the loan.
Thrift Savings Plan. The federal government's retirement savings plan for military and civilian employees. Features the lowest expense ratios in America at 0.04%. Equivalent to a private-sector 401(k). Roth and traditional options available.
Also called spousal support or maintenance. Court-ordered payments from one ex-spouse to another. Duration and amount vary by state, marriage length, and income disparity. Tax treatment changed in 2019: no longer deductible for payer or taxable for recipient.
A 5-year review period Medicaid uses to examine asset transfers before an application. Gifts or transfers below fair market value during this period can result in a penalty period of Medicaid ineligibility. Critical for caregiving and elder law planning.
Family and Medical Leave Act. Provides 12 weeks of unpaid, job-protected leave per year for qualifying medical and family reasons. Only covers employers with 50+ employees and workers with 12+ months of tenure. Does not guarantee paid leave.
A tax-advantaged savings plan for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses are not taxed. Annual contribution limits vary by state ($300,000-$500,000 lifetime). Can now be used for K-12 tuition up to $10,000/year.
Achieving a Better Life Experience account. Tax-advantaged savings for people with disabilities. Annual contribution limit: $18,000. Does not affect eligibility for SSI, Medicaid, or other benefits up to $100,000. Must have disability onset before age 26.
A measure comparing the cost of basic expenses (housing, food, healthcare, transportation) between geographic areas. The national average is 100. Hawaii is highest (192), Mississippi lowest (84). Used by PivotReset to adjust state-specific financial projections.
A cognitive bias where the pain of losing something is psychologically twice as powerful as the pleasure of gaining something equivalent. In divorce, this causes 73% of people to overvalue keeping the house even when selling is financially superior.
A cognitive bias favoring the current state of affairs over change, even when change would be beneficial. In job loss, this causes people to default to expensive COBRA insurance ($717/month) over marketplace alternatives ($280/month) because COBRA is familiar.
A cognitive bias that overweights immediate rewards over future benefits. In retirement, this causes people to claim Social Security at 62 (getting less money now) instead of waiting until 70 (getting 76% more per month for life).