It’s Divorce Season. Are You Ready?

It’s Divorce Season. Are You Ready?   What is Divorce Season? Did you know that more people decide to divorce in the first four months of the year than any other time of year? That’s why they call it divorce season. It does make sense. The families have all gotten through the holidays. The spouses may have been giving it one last try to see if the holiday spirit would revive the relationship. Unfortunately in many cases that is not successful. As the marriage continues to unravel men and women begin to take a close look at their lives and realize they may need to prepare for a new start… Read More

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Divorce Mediation Facts and How To Prepare

Divorce Mediation Is Supposed To Be Different. I say supposed to be different, because what the legal system calls Alternative Dispute Resolution procedures can be very similar to litigation, or in some cases can be like blindly agreeing to just get it over with. Here are the details for those that are considered “The Latest and Greatest” divorce processes.   Collaborative Divorce with a Mediator Here’s the skinny on collaborative divorce. Husband and wife each hire an attorney. The attorneys try to negotiate a settlement. The major advantage is that this is an out of court process. This is best for those couples who have accumulated a large asset base and… Read More

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5 Divorce Mistakes That Can Cost You Lots of Money… and Sleep

Whoosh! That’s the sound of money from divorce mistakes flying out of your wallet. You chase after it, but never seem to catch up… You’re doing everything you think you’re supposed to, but nothing is working. Your accounts seem to become self-draining, and you can’t seem to stop the leaks. You wonder what you’re doing wrong…  and why this has become so complicated. Chasing your money, running from meeting to meeting… And your emotions are all over the place, like your money. You’re frantic about your future because it seems everything is unknown. Then… suddenly at 3 am… in a panic… you wake up. It was all a bad dream…… Read More

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Tax Implications of Divorce Property Transfers

When property and financial assets are divided in divorce, certain assets or portions thereof are transferred from one spouse to the other. The most common are the marital home, financial accounts and jewelry. During the marriage, such transfers are considered to be gifts of a non-taxable nature. Transfers for purposes of divorce are subject to specific regulations in order to maintain the same non-taxable status. As per the Internal Revenue Service Publication 504, Divorced or Separated Individuals , the following are required:   Transfer Between Spouses Generally, no gain or loss is recognized on a transfer of property from you to (or in trust for the benefit of): Your spouse,… Read More

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Divorce Negotiation Persuasion

Key Divorce Strategy – Art of Negotiation Persuasion Components Needed For Negotiation Persuasion Persuasion is accomplished by using: fact-based narratives, physical evidence (which in many cases is deficient), and the key, the slight twist that’s formulated based upon who you are trying to persuade.                   Are You Ready For Negotiation Persuasion? Once a divorce begins, emotions generally take over and it’s hard to focus. If you can’t focus, you can’t persuade anyone of anything. Common techniques tend to be either temporary, or more of a distraction from your true need to focus on what you’re doing.            … Read More

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How the New 2018 Tax Law Impacts Alimony Payments

Alimony tax laws (for spousal support) are changing.   The Basics of Alimony Alimony payments are based on the earned income of the husband and wife individually. There is a formula that determines the amount the higher earner will pay the lower earner. It is an attempt to generally equalize earnings for both individuals and at the same time attempt to allow them both to continue to maintain a similar lifestyle to their pre-divorce situation. The key word is attempt. This is not always possible.   Pre-2018 Alimony Tax Laws Before and during the divorce process any support received is generally not considered alimony. Therefore it is not claimed as… Read More

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Four Tax Considerations For Divorcing Couples

Tax season is upon us, and many divorcing couples need to think about what to do now, and what they should know for the future. 1. Consider filing a joint tax return during your divorce. If you are married there are two choices – married filing jointly or married filing separately. However if your spouse is a bit “aggressive” with his or her deductions and you sign that return, you will also be liable for any future tax balances and penalties, so be cautious.  When filing separately the same income is subject to a higher tax, which is a penalty of sorts. Also certain deductions are disallowed. In the case… Read More

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Who Claims Child Tax Credit For The Children

Question: Which parent claims the tax deduction for the children on their return? Answer: The dependent tax deduction has expired for 2018. There is now a $2000 Child Tax Credit per child. This credit for the children generally default to the parent who has primary custody. Even with shared custody, one of the parents has the children in their home more than the other. During a separation, there may not yet be a formal agreement on this issue. In that case, by counting these overnights on the schedule you can determine who actually had more overnights. The credit also depends upon who pays more than 50% of the child’s living… Read More

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Grounds for Divorce Demystified

You’ve likely heard the term “Grounds For Divorce.” In the old world of divorce you had to have a reason for the divorce, and it couldn’t just be that you don’t get along anymore, or you’ve fallen out of love. As an example, here’s the list that was applicable in New Jersey: As per New Jersey Rules of Court: 2A:34-2 Causes for divorce from bond of matrimony.  a. Adultery… b. Willful and continued desertion for the term of 12 or more months… c. Extreme cruelty, which is defined as including any physical or mental cruelty which endangers the safety or health of the plaintiff or makes it improper or unreasonable to… Read More

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The Simple Answer To Overcoming Your Divorce Fears

For 15 years I have spoken with many women who have been facing divorce fears – all ages, and with varied income levels and family sizes. Throughout it all there has been one common denominator. In some cases it related to finances, in others it related to children, and of course many related to the emotional aspects of the divorce itself. I say related, because this one common denominator was not related to the divorce process itself. Almost every single individual had major concerns that circled the question “How am I going to survive AFTER the divorce?” This is not “rocket science.” You see it every day with men as… Read More

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