Mediation is one of the least recognized methods of resolving divorce matters but is extremely efficient and cost effective. Mediation is a form of alternative dispute resolution (ADR) held in an informal setting, where the divorcing parties can resolve their differences without the stress or cost of a formal court proceeding. And for many people, mediation can help avoid the difficulties inherent in the court system. Continue reading “Divorce Mediation and its Benefits”
When a couple gets divorced, the initial thoughts are usually centered around who receives the tangible assets? Parties may readily consider the house, the car, bank accounts etc., but what is often forgotten is the impact divorce may have on your retirement plan. The longer the marriage, and the closer the parties are to retirement, the more the retirement plan can be disrupted.Continue reading “Getting Divorced Later in Life Can Impact Retirement”
With 2018 ending in a few weeks, unhappily married couples who are thinking of splitting up should consider the tax consequences of waiting until after the new year.
Under the new tax law enacted by Congress and the Trump administration, the rules regarding alimony will be different. Under the new law, the person who pays the alimony (otherwise known as maintenance in New York State) will no longer be able to write it off their taxes(deduct it from their income); meanwhile, those who receive alimony will no longer have to declare it as taxable income. If the paying spouse wishes to avoid this scenario, it is wise for to file for divorce before the end of the year. Those couples who already divorced will be grandfathered in — which means they will not be subjected to the new alimony law — unless they decide to modify their agreements next year.Continue reading “How New Tax Laws Will Affect Divorcing Couples in 2019”
President Donald Trump promised hefty tax changes prior to his inauguration. One substantial tax change under the Tax Cuts and Jobs Act concerned the deductibility of spousal support.
Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), those receiving spousal support (alimony) were forced to claim the proceeds as taxable income, while those paying the alimony were allowed to deduct the payments from their taxes. However, under the new statute, it is reversed. Now, those that are receiving the alimony are able to deduct the alimony given by their former spouse from their taxes, while those paying the alimony will have to include it on their taxes. The change becomes effective after December 31, 2018.
Continue reading “Spousal Support Shift Under the Tax Cuts and Jobs Act”
Individuals in the Millennial generation (those born between the years of 1982 and 2004) are more apt to ask their significant others to sign and complete a valid prenuptial agreement prior to marriage. A prenuptial agreement, or “prenup” for short, is a legal contract that is established between future spouses to protect their property and assets, especially in the event of a divorce.
Millennials are much more cautious than their generational counterparts (Baby Boomers and Generation Xers) because many of them are children of divorce. They witnessed what their parents went through and desire to ensure financial security and protection of their interests. Also, by the time millennials have decided to marry, many of them have acquired assets, such as property, 401(k) retirement plans, stock options, among others that they now want to protect in the event that the marriage fails.
Continue reading “An Increased Number of Millennials are Asking for Prenuptial Agreements”
Going through a divorce or legal separation can be an emotionally taxing process, requiring the assistance of attorneys, mediators, and the state court system. Couples looking to divorce or separate must consider custody and visitation as well as how to divide the property they obtained together throughout the marriage.
Another important consideration while going through a divorce is the payment of taxes. As part of a divorce action, both parties are entitled to full financial disclosure. This means that each party must disclose all assets he or she has an interest in (including businesses) and debts. Often the financial documents for the business are combed through during the course of a divorce. Bearing in mind, a judge and your spouse can report any failure to report income or properly pay taxes, it is important to consult with your accountant in order to ensure you and your business are not at risk of exposure during the divorce process.
Continue reading “How the Court Divides Property During a Divorce”
Being self-employed during a divorce may lead to some contentious issues. For this reason, here are a few important tips to keep in mind:
Protect Your Assets and Resources
Be sure to maintain adequate income records if you are self-employed. A former spouse may allege that your income is greater than you are actually claiming. This may negatively impact your financial future, because you may then be required to pay more in spousal maintenance, among other things.
Continue reading “Getting Divorced While Working For Yourself”
In New York State, one spouse may be required to pay spousal maintenance. Spousal maintenance is usually a monthly payment made from one spouse to the other spouse for a specific duration of time. The duration of time is determined by the following formula:
• If the length of the marriage was between 0 and 15 years, then the duration of maintenance is 15% to 30% of the length of the marriage;
• If the length of the marriage was between 15 and 20 years, then the duration of maintenance is 30% to 40% of the length of the marriage; and
• If the length of the marriage was more than 20 years, the duration of maintenance is 35% to 50% of the length of the marriage.
Continue reading “Judges Have the Discretion to Exceed the Maintenance Cap in High Net Worth Divorces”
A divorce can be a complicated, litigious process that can change all aspects of your normal life. Everything from the house, children, and cars, among others, are considered. One aspect that some may overlook is the pets. The big question is, who gets the pets in a divorce?
There are many factors that go into determining which of the pet parents get to have custody of the pet. Some factors include:
- Who spends more time with the pet;
- Who feeds the pet;
- Who partakes in veterinary care visits; and
- Who brought the pet into the relationship, among others.
If you are involved in a contentious divorce, here are some tips to make the divorce process a bit easier when dealing with a narcissistic spouse:
Surround Yourself with Supportive People
Don’t listen to their negativity. A narcissistic spouse is usually mentally and verbally abusive. With that being said, try to concentrate on moving forward. Speak with a licensed therapist about your former lover’s behavior. Your former spouse may try to convince you and everyone around you that the divorce is your fault. While their words and actions may be hurtful, you are aware of the truth and those closest to you will not believe their words. Therefore, do not let their behavior consume your life during this already emotional time. During this time, it is important to surround yourself with positive people and positive activities.
Continue reading “What to Do When Your Former Lover Is a Narcissist”