Currency (and sensitivity) exists in Head of Household status for a divorce
Using the head of household status comes with some benefits that need to be taken into account in a divorce process. To obtain a head of household status the taxpayer has to: Be unmarried at the end of the tax year Provide for more than 50% of the household expenses...
ABLE Accounts for Disabled Children in Context to a Divorce
When disabled children exist in the family The GOP’s Tax Cuts & Jobs Act (TCJA) that was passed in late December, 2017 could impact your divorce process. Background and Context The term “ABLE account” stands for achieving a better life experience for the benefit...
When foreign investments exist in the portfolio
The 965 Foreign Earnings Repatriation Tax Impacts Divorces Section 965 of the Internal Revenue Code is focused on imposing a one-time tax on the accumulated earnings and profits of foreign investments. Historical background and Context “In 2004, Congress passed the...
Are you stuck in a business with other shareholders and can’t get out?
Many people find it very difficult — and sometimes nearly impossible — to go through a business divorce. Each shareholder has many questions that need to be addressed from their unique perspective. One question often leads to 3-4 others too. If the questions remain...
Why is financial risk management expertise so important for your divorce process?
The phrase financial risk management is not often talked about in context to a divorce. Yet all too often this process needs to be in place to manage each party’s divorce risks. What is financial risk management in context to a divorce? Financial risk management...
Carried interest from private equity impacts financial outcomes in a divorce
What is carried interest? Carried interest represents the profits an investment manager receives, typically from an investment in private equity or a hedge fund (not a mutual fund), in excess of the amount contributed towards the investment. The carried interest...
“Innocent” mortgage interest rules create hidden liability for divorcing parties
An overview of the new tax law Under the new tax law home equity loans and lines of credit are still deductible. Yet they are subject to certain conditions. The proceeds must be used to buy, build or substantially improve a home that is secured by the home equity...
Should you negotiate parenting rights first?
Many people choose to finalize their parenting rights in their divorce before opening up discussions around their financial issues. This may sound very logical on the surface. Yet, if you dug deeper and focused on the entire “negotiation” of your divorce you would...
What is a divorce strategy and why do I need one?
Many people find themselves in a compromised position as they are unclear how to develop a strategy for their divorce. The state of any divorce usually does not remain stagnant throughout the entire process. Friction arises which makes it challenging to have the...
When to call a divorce attorney and how to best leverage their expertise
People who are contemplating a divorce ask how much they should involve a divorce attorney in their divorce process. The truth of the matter is the answer is not so straight forward. Here are three possibilities. Ongoing, continuous involvement Medium to light...
