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...]

Filing Status How are you going to file your taxes. Determine the best way financially to do this. Normally filing a Married Joint Return will result in the lowest taxes. Do not look at a joint return as any kind of "attachment" to your spouse. This is strictly a financial situation. You qualify for the Married Filing Jointly status if you are not yet divorced. You do not qualify for this status … [Read more...]

Qualification Decision: Once the plan has approved the DRO as qualified, be sure to obtain written confirmation of this fact with identification of the exact document. A copy of this qualification decision should then be forwarded to the Alternate Payee for their permanent records. Review Old QDROs: Consider reviewing old QDROs every three to five years, since plans can terminate, parties … [Read more...]

Under the separate interest method, the plan is valued as of a certain date and split in two. The Separate Interest owned by the Alternate Payee may then be received by any method she chooses, continue until her death and is not affected by the death of the Participant. Conventional wisdom is that the most desirable method is a single life annuity based on her life expectancy. This will, however, … [Read more...]