Divorce Newsletters

Selling Rental Properties

June 1, 2013

Sometimes in a divorce one spouse will move into a second home that the couple had owned while married. Often the property had been rented and the spouse receiving the property decides to convert it to their personal residence.

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Problems With Dividing the Family Business

March 1, 2013

Closely-held family businesses come with their own unique problems in a divorce. They can be difficult to value, yet the importance of an accurate valuation is critical to a fair and equitable distribution of assets. In addition the future of the business becomes a discussion point when both husband and wife are involved in the company.

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Executing A QDRO – Timing is Important

February 1, 2013

According to Edwin Schilling III, JD, one of the most significant problems with QDROs is not having them prepared before the divorce is final. Mr. Schilling lectures attorneys on "The 30 Most Common Errors in QDROs."

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Life Insurance and Divorce

December 1, 2012

Alimony, or maintenance, is often awarded in a divorce. In order to have alimony be tax-deductible to the payer, the payments must stop upon the payer’s death. Were the payer to die however, the recipient would lose an expected stream of income. A simple way to cover those lost payments is to have the divorce decree stipulate that life insurance will be carried on the life of the payer in an amount that will replace the alimony in the event of the payer's death.

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Health Insurance and Divorce

November 1, 2012

In a marriage where one spouse is the primary wage earner, one concern is maintaining health insurance for the non-career spouse. When completely on their own, how does a non-working spouse acquire health insurance coverage?

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Hidden Assets

October 1, 2012

There are many ways that assets can be hidden in an impending divorce. Following are a few to be aware of:

1. Financial statements to acquire a loan: Any loans from lending institutions require sworn financial statements to be filled out. In most cases, the borrower is trying to impress the lending institution with the extent of assets and may exaggerate these. Looking back five years or so at these statements may put you on the trail of assets which are now unaccounted for, or which show valuations substantially greater than what is now claimed.

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Question: Does a Career Have Value?

September 1, 2012

A few states place a value on degrees such as the medical degree, the dental degree, or the law degree. In states that don’t value degrees we can look at the value of employment in a different way.

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Social Security payments and divorce

August 1, 2012

If a couple has been married for 10 years or longer and they divorce, the Social Security Spousal Benefit provision applies. The lower-earning spouse is entitled to the greater of his or her own benefit or half of the ex-spouse’s benefit, whichever is greater, providing certain provisions are met

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Four exceptions to the recapture or front-loading of maintenance

July 1, 2012

The tax Reform Act of 1984 enacted rules designed to prevent excess front-loading of maintenance payments. The purpose of this is to prevent the parties in a divorce from disguising a lump-sum settlement as alimony, which has tax benefits. Therefore if alimony is reduced dramatically or eliminated within the first 3 years it may be recharacterized and any tax benefit recaptured. Recapture under §71(f) can occur only in the third post-separation year.

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Convert Property Settlement Notes into Deductible Maintenance Payments

June 1, 2012

Typically the transfer of property between parties, pursuant to a divorce, is not a taxable event. A cash settlement from one party to the other is not counted as income to the receiver, nor is it deductible to the payor. But there are situations in which structuring a settlement as maintenance can be beneficial to both parties. This arises when one party is a high-earner and the other is not

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