Divorce & Finances

getawayMany couples have a vacation home that they use for their personal use or as an investment (rental property). When divorcing, how it was used and how it will be used indicates the way to divide the vacation property . . . .

  • selling a personal use vacation property,
  • keeping a personal use vacation property,
  • selling a rental vacation property, and
  • converting a rental property to a primary residence.

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feesYour clients can deduct legal fees paid for tax advice in connection with a divorce. If your client is confused about their finances, it may be worth mentioning the financial assistance is tax-deductible. A more detailed explanation of what financial services are deductible. . . .

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tax returnBefore the assets are split and sold or allocated to one spouse and not sold, consider the impact of the home sale gain exclusion. Here is an explanation of the $250,000/$500,000 gain exclusion on sale of primary residence.

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financial statement.jpgDetermining income in cases with clients who have their own business requires looking beyond the Financial Statement. The way to approach the determination of income is twofold. First, verify the information you have received and second, check for unreported income. Here is an overview of techniques you can use to do a preliminary look.

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hidden incomeThe question which I am asked most often about is hidden income. And I am asked most often asked about it by attorneys that have little money or time to investigate the issue. Below is an outline of suggestions for looking for hidden income using just the documents provided to the court and those that may be obtained with basic investigation. Strategies for Finding Hidden Income

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taxesDivorce & Taxes: What You Need to Know: A brief, print-friendly overview of basic tax considerations one might consider in divorce.

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What to Include in Financial Statement Filed with Court : The financial statement worksheet is composed of five (5) sections: Income, Deductions, Expenses, Assets, and Liabilities. Read what should be included in each category here.

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Financial forms for divorce in Massachusetts here.

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Grounds for divorce by state: A reference for the grounds for divorce by state, find it here.

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Steps to Divorce: Are you wondering the process of divorce. Here is an understandable chronology of the divorce process.

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10 facts about social security after divorce: Social security benefits are complicated. Divorce is complicated. Social security after a divorce is mind-boggling. I wrote up 10 facts that I thought a divorced person wondering about their social security benefits would want to know. Find them here.

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Is your spouse hiding assets? If you are wondering, read this for some telltale signs: Some red flags that may help divorcing spouses, and even happily married people, determine that their partner may be hiding assets. Find out what they are here.

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Divorcing and need copies of tax returns? Here are your options : Tax returns, prior and current years, are critical documents in a divorce proceeding. If you did not participate in the filing and/or compiling of your taxes when you were married and need copies now, here are four options.

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Steps to establish financial independence post-divorce: Follow these important steps to make sure you establish yourself financially after divorce.

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After Divorce, Your Former Spouse’s Social Security Benefits May Still be Yours to Have: Did you know that if you were married 10 years or more, you can still receive social security benefits? This holds true even if your former spouse remarries or dies. Read more here.

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From promises to divorce and what happens to everything: A terrific and, I would say, readable resource about what defines an agreement between two people and what happens to their home, money, and children if they split up. Here it is.

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Community property division of marital property: A discussion of how 9 states and Puerto Rico with community property laws divide property, what constitutes marital property, and what is considered separate property. Find the overview of these issues here.

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Equitable distribution of marital property Most states (all except 9) use equitable distribution for dividing marital assets. Equitable distribution takes into account the financial situation of each spouse. Factors considered include . . .

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What exactly is “non-marital” property? Find out here.

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What exactly is “marital” property? Find the definition here.

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Laws by State Regarding Alimony, Custody, Child Support, Grounds for Divorce, and Property Division

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Up to date charts that summarize basic laws in each state by topic, including custody, alimony and grounds for divorce. This post is taken directly from the American Bar Association’ site.  I found this is a terrific resource and wanted to share it. See the link here.

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You are Getting Divorced – What do You Need to Identify Assets, Liabilities, & Family Income: What assets should be included in the inventory of marital assets is ultimately up to the judge, but you can be aware of what information will prove helpful in determining your finances. Here is what you sure make sure to have to have.

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The post-divorce “Honey, do” checklist: There may not be a “Honey” to give a to do list, but you still need to make sure you do these 13 things.

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Two things to do before the divorce is finalized: Two quick but very helpful tips before you sign those papers.

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Divorcing and Calculating your Future Expenses, What NOT to Forget: Don’t forget these five expenses when negotiating your divorce settlement.

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“Negotiating” the divorce assets; 7 things to consider: Here are 7 often overlooked costs and suggestions to consider when compiling a budget and arranging separate finances.

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Employee stock options and divorce:Vested stock options (both incentive stock options and non-qualified stock options) may be transferred without tax consequence. And as with other assets . . .

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Investments, do not transfer (or receive) them before reading this if you are getting divorced: The amount of investments given and received in a divorce settlement must consider tax implications. When dispersing various investments think of whether it can be done in a manner that avoids taxes or minimizes the tax consequences.  As best you can, try to . . . read further about what efforts may help you avoid costly mistakes in a divorce settlement.

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In divorce, there is more than one way to handle the primary residence: There are several options about how to handle the house as part of a divorce settlement. Each one involves details that require attention. Read about options for how to handle the primary residence in divorce.

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Child support is not income: Child support is perhaps the most emotionally fraught item in a situation that is ripe with emotionally charged events. It is an inherently difficult equation . . . read facts you should consider in determining child support. 

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Alimony, it’s not what you think it is: Often the focus of divorce settlements, it is important to understand what alimony is and the tax consequences of paying and receiving alimony.  Read further here.

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Filing tax status during divorce and after: Your marital status for tax returns is different than what you think. See why here.

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