Divorce Newsletters

What Is Our House Really Worth?

February 15, 2019

The marital home is arguably one of the most important assets a couple will own. Assigning it a realistic and accurate value in a divorce may take more time and thought than most couples give to this task. Carelessly choosing a dollar value may result in a financial headache.

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Capital Losses Are a Valuable Asset

January 15, 2019

Last month, we discussed the importance of knowing how an asset is taxed when it is sold, and focused on capital gains. This month, we would like to address capital losses, as those too can affect a client’s financial situation – in fact they can be quite beneficial.

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Cost Basis: A Part of Smart Divorce Decisions

December 15, 2018

When assisting a couple with the division of assets, it is important to take into consideration each asset’s cost basis. This affects how items are taxed (if they are taxed) when sold. If there is significant tax to be assessed, then the real value of the item is much less that it appears on paper. And if your client is receiving an item that is truly worth half its current value once it is sold, that may have a profound effect on their future - the client could end up with much less money than it appears. Therefore, calculating the after-tax value of assets is important. Like a used car, you want to look under the hood before buying!

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Health Savings Accounts

November 15, 2018

Health Savings Accounts (HSAs) were created as part of a tax reform package in 2003 as a way to help taxpayers pay for medical expenses with pre-tax dollars, and have grown in popularity over the past 15 years. Surveys put the estimated number of Americans with HSA accounts somewhere between 21 million and 33 million. Regardless of the exact number, they are becoming more popular and it is not uncommon to find them among the assets of a divorcing couple.

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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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Another Way to Access Retirement Money

September 15, 2018

The biggest investment account that we see in many divorce cases is a retirement account, typically an IRA or 401(k). On occasion, this account must be tapped into to access cash needed to buy a new house, for living expenses, or other needs. Unfortunately, account owners under age 59 ½ will pay a 10% penalty with every withdrawal on top of paying income tax at their ordinary tax rate, which could reduce the gross withdrawal by 20% to 45%. However, there is a way to take a withdrawal from an IRA (or 401(k) if the owner no longer works for that employer) without the 10% penalty. It’s called a “72-T” withdrawal.

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Amending your estate planning documents during the divorce process

August 15, 2018

With the rise of the “gray divorce”, there appears a new area of consideration. Should the parties amend their estate planning documents while they are still married?

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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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