Divorce Newsletters

State and Federal Alimony Changes

October 19, 2018

In January 2019, New Hampshire will finally have an alimony law that provides a framework for setting alimony amounts, as well as standards for modifying and terminating support. 

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Refinancing the Mortgage to Pay Off a Spouse – Still a Good Idea?

June 21, 2018

Mike and Sue are divorcing after 20 years of marriage. Their assets include $300,000 of equity in a home (a home value of $750,000 less a $450,000 mortgage), Mike’s 401(k) worth $100,000 and Sue’s IRA worth $350,000. They agree that Mike will keep the house and give $25,000 to Sue so that they each walk away with $375,000 worth of assets. Since Mike doesn’t want to give away any of his 401(k), he decides to refinance their existing mortgage for $475,000 to generate the cash he needs to give Sue. Mike sees several benefits to this strategy...

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Gone, But Not Forgotten

May 1, 2018

This year there have been many changes to the income tax code. One of the most notable is the “elimination” of the personal exemption. In actuality this exemption is not gone and still has an impact on divorces involving children.

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Dividing an Inherited IRA in Divorce

February 1, 2018

Dividing traditional and Roth IRAs in a divorce is not complicated. No special forms are needed (other than the divorce decree) and the transfer to the receiving spouse is non-taxable as long as the money is received into that spouse’s IRA (or Roth IRA) account. However, dividing an inherited IRA is a bit more complicated. There are special considerations when dividing this type of account.

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New Tax Rules Affect Divorces

January 1, 2018

The Republican Tax Bill recently enacted has something for everyone – but not necessarily something positive. Let’s look at how the bill may affect divorcing couples.

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Start the QDRO Process on Day 1

December 1, 2017

Your new client, Mark, arrives at your office armed with a pile of documents. You’ve asked him to bring statements for all of the couple’s assets and liabilities, a pay stub, tax returns and a company benefits statement. As you sift through everything you notice that Mark has a pension with his company. This should set off a bell in your head: Start the QDRO Process!!

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The Year-End Deadline

November 1, 2017

Once Fall approaches many couples set a deadline of December 31st by which they would like to have finalized their divorce. Setting such an arbitrary end-date has its pros and cons. Let’s look at why it may be good or bad to focus on December 31.

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Nesting and Divorce

October 1, 2017

“Nesting” is a relatively new concept in divorce. The term refers to a housing situation in which the children live at one house and the parents take turns staying in the house. It is felt that this is beneficial to the children, who don’t have to change locations every few days and can stay on a more consistent schedule, helping them to adapt to the divorce. In addition, it can save money since both spouses can maintain a smaller, one-bedroom off-site residence. Some couples use nesting on a temporary basis, perhaps until the divorce is final or through the school year, while others nest for longer periods of time.

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“Options to Buy Unit” for Divorcees

September 1, 2017

I received this very interesting question from a divorce attorney recently:

I have a divorce case where there is a dispute over an option to buy in the parties’ residential lease.The parties did not pay for the option to buy and the rent paid does not lower the purchase price. However, the purchase price in the option is $70,000 and the fair market value may be around $100,000. My thought is that this option has no value.

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Complications of Tax Returns

May 1, 2017

Last September I wrote about issues related to the income tax return that can arise in a divorce. Some income or expense items that the couple share on their tax return will need to be divided or assigned to one or the other party once the divorce is final. I briefly mentioned two areas, estimated tax payments and tax refunds, that warrant more investigation.

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