Divorce Newsletters

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.

Read More

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!!

Read More

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.

Read More

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.

Read More

“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.

Read More

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.

Read More

Alimony vs A Lump Sum Payment

April 1, 2017

Alimony is often a necessary component of a divorce settlement but there are always cases in which the payor spouse doesn’t want to face years of monthly payments. In a sense these payments still tie the two parties together, and this is a situation the payor doesn’t want to be in. So the question arises, can the entire sum of alimony payments be satisfied with one lump-sum “alimony” payment?

Read More

Be A Detective and Uncover Hidden Assets

March 1, 2017

In the great movie classic “It’s a Wonderful Life” the character George Bailey, a kind soul who puts his own dreams aside to help other his whole life, finds himself in a financial bind. But his friends and neighbors come to the rescue and in the final scene of the movie they pour into his house, emptying their pockets and piggy banks to give George the money he needs. One of my favorite lines in the movie comes in this scene as the Bailey housekeeper, Annie, hands over the contents of her change purse and says to George, “I been savin’ this money for a divorce if ever I get a husband.” Now THAT’s planning ahead!

Read More

Credit Cards: Steps to Make a Clean Split

February 1, 2017

Divorce can have so many effects on your clients; on their lifestyle, on their emotional state, on their family life. With some planning and forethought, you can minimize the effect on their credit and maybe even improve their credit score

Read More

Selling The Family Home

January 1, 2017

I wrote about this topic 3 years ago, but receive questions about this frequently enough that I think it is worth writing about again. The tax implications of selling the family home in a divorce can be a little complicated, and timing is everything if there is a potential capital gain. Read on for a refresher on this topic.

Read More