Question: My employer is sending me and my family abroad to work for our international division for a year. What should we plan for financially?                                              -  Mark W., Colorado Springs

 Answer: So you will be joining the ranks of other expatriates? You are in for an adventure! Before I emigrated to the U.S. (by myself at age 15!) from the Czech Republic, I met many American expats in Prague. I was amazed at the resources available to them. I also lived with my family in Beijing for four years as a little girl. 

Fortunately, there are many blogs and websites that cater to expats. These are terrific resources, because they are generally written by other expats who share experiences and local resources. One great blog is The Expat Explorer (www.expatexplorer.blogspot.com). 

As you make preparations, it is important to plan ahead financially, because living overseas will definitely impact your money and taxes. 

By the way, just because you leave U.S. soil does not mean you can dodge filing your taxes next April. On the bright side, you will generally receive a tax break on your foreign income. It’s called Foreign Earned Income Exclusion, and you may be able exclude up to $92,900 for the 2011 tax year.

Here is something cool. If your new country does not have any income tax, once you use up your exclusion, your next dollar will be taxed at the lowest income bracket. So your taxes will most likely be lower while you are living overseas. They will also get more complicated, so consult an accountant for the latest information. 

Before you pack your bags, make sure that you have up-to-date wills and power of attorney for health care and finances. Also, don’t forget to find out about any special estate planning requirements in the country where you will be living for the next year. Your best bet is to consult an estate planning attorney who is versed in international law. 

Next, make plans for maintaining your home while you are overseas. Will you want to rent it out or sell it? If it will remain vacant, make sure someone you trust will be checking the property on a regular basis. 

If you decide to rent out your home, find a good property management company. You don’t want to be the landlord long distance. That can turn into a nightmare. Also, ask your accountant about the tax impact of renting out your primary residence. Make sure you have money set aside for paying all property related bills on time in the U.S. 

If you would rather sell your home, you better get busy. This is still a tough market for homeowners. Give yourself plenty of time to sell your house. 

Another important step before you leave is to designate a wingman to keep an eye on things. This will be someone who can be trusted to prevent disasters — from late payments to unforeseen emergencies.

Finally, think about the best way to communicate with your family and friends in the U.S. It will help your entire family avoid homesickness. Skype, blogs and Facebook are great ways to maintain those important relationships. 

Once you have these details taken care of, you will be free to enjoy the unique experience of a year abroad. Safe travels! 

Mystified by money and want to improve your financial effectiveness? Denisa Tova CFP®, CDFA, MBA is a Colorado Springs-based Certified Financial Planner and a Certified Divorce Financial Analyst. Contact her at DenisaTova.com or email denisa.tova@gazette.com.