Hidden Clues in the Tax Return
Jill has been divorced for five years. Her separation agreement stated she would receive $5,000 per month of spousal maintenance for four years. She was also owed a property settlement payment of $200,000. This was to be paid at the rate of $50,000 per…
Dividing the Family Business
Dividing a family business can present many issues, so here are a few made-up examples of common issues and the outcomes. One common situation is when there “should” be a business valuation, but it never is completed. Shawn and Jennifer had been married for…
Life Insurance and Divorce
Maintenance payments stop upon the payer’s death. A simple way to protect future payments is to have the divorce decree stipulate that life insurance be carried on the life of the payer to replace maintenance in the event of the payer’s death. It’s recommend…
Hidden Assets in Divorce
In the course of discovery (sharing documents and financial information with the opposing side), occasionally there is reason to believe information is purposely being hidden or withheld. The following (partial) list of items to research may assist in determining the whereabouts of hidden assets…
Excluding Real Estate Gains from Taxes
Before the Tax Relief Act 1997 (TRA ’97), if one spouse left the house two years before the divorce was final, they lost their ability to roll forward their capital gain. In cases where there is significant capital gain in the family home, TRA…
Concerns of the Older Divorcing Client
Here are some of the most common concerns of the older divorcing client: Limited Income—Many couples stay married because it’s just not financially feasible to split up and have two separate households. And in cases where the clients do want to divorce, figuring how…
Basis In Property
One of the most often missed topics in divorce planning is basis. Whether we’re talking about the house, stocks or other real estate, knowing the basis is a must when taking on the task of separating property. Consider the following case study. Kris and…
Spousal Support and Social Security Benefits
Occasionally we are involved in a divorce case with an individual or couple who is already receiving Social Security benefits. It is important to consider the affect of spousal support payments on these benefits during your divorce financial planning. Social Security Retirement benefits are…