Archive | Uncategorized RSS feed for this section

How Does Divorce Affect Social Security Benefits?

The first consideration in the analysis is the length of the marriage.  In order to be entitled to the other spouse’s social security benefits the marriage must have lasted 10 years or more. A marriage which lasts 10 years or more is typically considered a “long-term marriage”. For the purposes of spousal support, if a [...]

Read full story Comments { 0 }

EFFECT OF DIVORCE ON PRE-EXISTING WILLS & ESTATE PLANS

A large percentage of divorced persons, widows, and widowers subsequently remarry one or more times. It is important to consider the legal effect divorces may have on any pre-existing estate plans including wills, trusts, non-probate transfers [such as joint tenancy with rights of survivorship, community property with rights of survivorship, payable on death ("POD") and [...]

Read full story Comments { 0 }

Short Sales and Foreclosures in Divorce

When people get divorced, they often sell the marital residence. In 2010, divorced couples are learning there is less equity in their homes and the ability to sell a non-foreclosed or short-saled property is impacted by these market conditions. These conditions also impact refinancing as there is less equity in most properties in 2010 than [...]

Read full story Comments { 0 }

Improving Economy = Increase in Divorces

A good way to tell that the economy is recovering is to review the divorce rates. In 2008, the divorce rate dropped 24% in 2008 and 57% in 2009, but started inching upwards towards the end of last year.   It appears that people were afraid they were going to lose their jobs so they were [...]

Read full story Comments { 0 }

How to Select a Divorce Lawyer.

Choosing your lawyer is probably the most important decision you will make in your divorce process. So make sure you find somebody who will smooth the road ahead, not make it more rough than it already is. Here are some tips. 1.     Schedule a consultation with the attorney. First impressions are important when choosing a [...]

Read full story Comments { 0 }

Innocent Spouse Relief

If your spouse cheated on a joint tax return filed with you, you may be able to escape liability for any amounts owed to the IRS. If you were unaware that your spouse made misrepresentations on your joint tax return, you can file forms that will allow you to compute your tax separately. If you [...]

Read full story Comments { 0 }

Are divorce legal fees tax deductible?

Unfortunately, most of the fees associated with your divorce are not tax-deductible. However, some portions such as those related to any tax advice related to your divorce are deductible. Fees for Tax advice. The time and fees your attorney charges for any type of tax planning research or advice to you on items related to [...]

Read full story Comments { 0 }

You may not want to get divorced on December 31st

The advancement or postponement of the date of divorce by a single day at year-end can make a big difference in the amount of your tax bill – waiting could save you thousands of dollars. If you get divorced before the end of the year, even if it’s on December 31st, then you will be [...]

Read full story Comments { 0 }

Tax mistakes regarding the alimony rules

Alimony must be reported as taxable income by the person receiving it. Conversely, it is deductible by the payer (child support is not tax deductible). Unfortunately, many people are unaware that they must pay taxes on the alimony and they are hit with a huge tax bill at the end of the year. Make sure [...]

Read full story Comments { 0 }

Make sure you negotiate the dependency deduction.

I marvel at the number of people that do not consider the tax implications of divorce. One important consideration is the dependency deduction for children.   The current tax exemption amount for each dependent child is $3,200. For someone in the 31% tax bracket, this will save him or her over $1000 in taxes. In addition [...]

Read full story Comments { 0 }