The Cost of Proving Separate Property in Divorce
The spouse claiming property is separate in divorce has the burden to prove it. In a long term marriage the proof can be hard to find, and expensive to provide. It requires that the source of the funds used to create and maintain separate property be “traced” by a forensic accountant or CPA and requires, … Continue reading The Cost of Proving Separate Property in Divorce
Divorce and the New Tax Law
The new tax law, Tax Cuts and Jobs Act of 2017 (“TCJA,”) impacts many of the most commonly negotiated terms in divorce. I’ll briefly cover just a few here. Please be sure to review your tax status with your tax planner or attorney before next year. Alimony: For divorce decrees after December 31, 2018, alimony … Continue reading Divorce and the New Tax Law
Inherited IRAs in Divorce
Inherited IRAs could be mistaken for traditional IRAs in divorce. The consequence can be dramatic and costly. An Inherited IRA could inadvertently be treated as a traditional IRA, included as a community asset and divided in the decree – mistakes that could cost the beneficiary of the Inherited IRA thousands in both the amount included … Continue reading Inherited IRAs in Divorce
In Divorce, Nearly Missed Opportunity – The Mortgage Payment
An attorney called me concerned that her client, Jill*, would not be able to afford to keep the family home after divorce. Jill wanted to keep that home but the attorney believed her budget couldn’t tolerate the payment. Jill insisted that she could figure out a way to make it work on her salary as … Continue reading In Divorce, Nearly Missed Opportunity – The Mortgage Payment
Converting Rental to Primary Property in Divorce
When couples own a primary residence and rental properties one idea for asset division is for one spouse to stay in the primary residence and for the other to move to one of the couples’ rental homes. While this is convenient, the tax costs should be considered when valuing the properties. Section 121 IRS rules … Continue reading Converting Rental to Primary Property in Divorce