Archives for May 2017

By Ronald Lipman November 11, 2011 Q: I have discovered that my wife has $43,000 in consumer debt - $13,000 for a student loan for our son, and $11,000 with a credit union. (I did not sign for the credit union loan, but both names are on a joint account with the credit union.) The balance is on a variety of credit cards, all of which are in her name alone. What are my liabilities should my wife … [Read more...]

Stocks and Bonds, Capital Gains As a general rule, the transfer of property from one spouse to the other is free of taxes when done because of divorce; but without considering tax ramifications, a 50/50 division could seem to be fair, when it is not. Be sure to work this out with a specialist in divorce financial planning to understand the long-term outcome. 401k Plans (Savings Plans, Profit … [Read more...]

Divorce settlement is seriously complicated by the existence of a closely-held business. The business can be a professional practice (medical, dental, accounting, attorney, real estate brokerage) or a retail outlet (restaurant or shop,). To further complicate matters, the business is usually a source of income for the family as well as an asset subject to division. Each type has its own set of … [Read more...]

Temporary maintenance In a litigated divorce, one of the first orders of business is for the attorneys and clients to decide on “temporary orders.” They even have mediation sometimes just to decide how the parties will manage their financial and child issues during the pending divorce. This often grants one party exclusive use of the marital residence. If one spouse earns much more money than the … [Read more...]

Introduction Taxes impact nearly every aspect of life, and divorce is no exception. Yet, many couples are so angry at each other during their divorce proceedings, they fail to recognize a common adversary…the IRS. If you are considering, or are in the process of a divorce, you may be able to minimize your total tax liability by working together with a divorce financial planner and/or tax … [Read more...]

From the Wall Street Journal Avoid the legal arms race because it will hurt both of you. As you negotiate a settlement, every dollar of legal costs incurred likely means 50 cents out of your pocket. Trust me: There are cheaper ways to work through your anger. Having the ex-spouse around the corner might seem uncomfortably close. But if you have children, it probably means you will see less of … [Read more...]

Those considering divorce are usually consumed by tremendous emotional upheaval. Do not rush into a divorce, but rather consider consequences and make decisions objectively. Be sure you understand how to file for a divorce before you begin the process! Remember, fighting will only prolong the emotional turmoil, causing additional expense and discomfort. Grounds for Divorce: Texas is a … [Read more...]

In cases where both spouses are shareholders or partners and one buys out the other through the divorce settlement, this usually results in no income tax ramifications. Your attorneys need to make sure that no language in the agreement results in a tax liability to the spouse who is selling his or his interest in the business to the spouse. Ideally, an accountant representing each spouse should … [Read more...]

In a marriage where one spouse is the primary wage earner, one concern is maintaining health insurance for the non-career spouse. Since it isn’t uncommon for people in their 40’s and beyond to develop severe health problems, they used to be uninsurable for any reasonable cost. However, now that has changed thanks to the Affordable Care Act. Let’s discuss options for the non-career … [Read more...]

Renting or Buying If you are moving due to the separation or divorce, consider renting for a year or so until the emotional and financial turmoil have subsided. This is a time of major changes, often resulting in moving again. Typically, if you purchase a home and sell within two years, expenses such as real estate commissions, closing expenses, and moving costs will cause a net loss on the … [Read more...]