Over the years, we have seen cases in which separation or divorce instruments violate the requirements for structuring alimony payments correctly. These situations often produce a negative financial impact for the individual that is paying the alimony and can lead to additional lawsuits and ill feelings. In order to avoid this potential mess, it is … Read more
There are several issues to consider when contemplating a bankruptcy filing as part of a divorce. Certain debts are dischargeable and others are not. The following divorce related debts are not dischargeable in a bankruptcy filing: Taxes (federal, state, real estate, etc) Child support Alimony (aka Spousal Support or Maintenance) Debts arising from a marital settlement … Read more
Nine states are Community Property states Arizona California Idaho Louisiana Nevada New Mexico Texas Washington Wisconsin In contrast, other states follow an equitable property distribution. Both terms are described below. Community Property Community property states consider all property as being in two categories: separate property or community property. Separate property doesn’t need to be split … Read more
The ability to claim the dependent child exemption can be a significant advantage for a divorced parent. It’s important that this exemption be consciously planned for as part of the divorce process. Clearly state in your divorce decree which parent has the right to take the exemption during the year(s) of separation, the year of … Read more
An area where many individuals get into tax trouble is when splitting their Qualified Retirement Accounts (QRPs) and Individual Retirement Accounts (IRAs). Once you have come to the revelation that your assets must be split you may be tempted to start the process by making pre-divorce transfers prior to receiving an official judgment, decree or … Read more
One of the situations that we see in many family situations is where one spouse is the primary caretaker of the financial obligations for the family. That person may have been in charge of paying the bills, setting up the investment accounts, making investment decisions (stocks, bonds, real estate, mutual funds, etc.), buying and maintaining … Read more