Divorce and Tax Considerations

April 15th may have come and gone but as they always say, taxes are forever. This become even more important during divorce proceedings, where everything can seem as though it is influx. It’s crucial to remain prudent at this time. Even minor mistakes in property division can have disastrous implications that can be impossible to reverse down the line.

Here are a couple important things to consider:

THE DIVISION OF MARITAL ASSETS

Often this is the most important and fought over facet of divorce proceedings, especially among those who may have accumulated a bit of wealth. How can we adequately assess who is supposed to get what? Especially if a couple has been together for a long while and are forced to split everything up.  Any property that is obtained during the marriage is legally classified as “marital property.” The was the assets are divided is only different when it comes to the logistics of the divorce.

SEPARATION AGREEMENT AND DIVORCE DECREE

If both parties present their separation agreement to the court and the court issues a decree dissolving the marriage, the court may incorporate the agreement in the divorce decree, usually referred to as a merger.

FULL DISCLOSURE REQUIRED TO DIVIDE MARITAL ASSETS

Be prepared to reveal all necessary information if you are planning to go through a division of property.

 

Divorce proof your family-owned business

Splitting assets after a nasty breakup can be a difficult task to mitigate. Companies are renowned for having contingency plans and preparing for all possible outcomes but admittedly divorce is hardly ever prepared for. However it is not all doom and gloom, with the proper preparation beforehand certain situations can be avoided.

Think about the statistics and it all seems to make a lot more sense. 50% of marriages end in divorce, chances are your business could be one of them. It’s not something most couple want to think about far less even consider but the statistics do not lie, take this example: In a family-owned company with four shareholders, each of whom has a 50 percent chance of divorce, this means there’s a greater than 90 percent probability the company will encounter a shareholder divorce.

The process itself can seem tedious and company valuations can differ greatly across the board. It would be prudent to spend the time to talk about this potential situation with your spouse. If two are really committed to the business it should not seem so out of place. Here the old adage “it’s better to be safe than sorry,” rings true for both parties involved.

Companies embroiled in divorce are usually caught with their pants down, so to speak when issues like divorce rears its heads. One of the chief problems tend to be company valuation which tends to waver depending on the lawyer.

With widely differing valuations there is a huge risk that the court can make certain errors in terms of stock valuation.

Regardless these are just a couple of things to keep in mind as you go about attempting to manage this difficult situation. So prepare now so you and your spouse don’t have to attempt to fix it later down the line.

Annulment Vs. Divorce

So what’s the difference?

Both a divorce and an annulment are legal means to successfully dissolve a marriage however there are distinct difference between the two. An annulment treats the marriage as null and void by working retroactively to rescind the contract as if it was never valid.

 

Read more: Your Tango 

Sacramento Judge Aims to Expedite Divorce Process

Marriage is beautiful and supposedly everlasting, divorce is ugly and drawn out. Yet one California judge, James Mize, is trying to expedite the process by offering speedy divorces. The program aims to have people divorced in one day. A far cry from the protracted battles which are usually common in divorce proceedings.

Read More: Fox

 

 

 

Viagra and Divorce

At first glance this may seem odd, Viagra is supposed to help divorce right? By aiding the physical side of a relationship? But perhaps this isn’t the case, is viagra creating major issues between the newly sexualized males and their spouses whose libido may be waning? Find out more here below.

Read More: The Huffington Post

 

 

 

 

 

Kim Kardashian Reveals Her Witness List for Divorce Court

In what is sure to be the most intriguing divorce case in recent years, and that is certainly saying something. Kim Kardashian has released her witness list for her divorce proceedings. Who made the cut? Find out here:

Read More: Ok Magazine

Divorce Rates on the Decline

Stop the presses! It seems that divorces are on the decline across America. A recent article by the Huffington Post highlighted this issue. The main reasons for the decline are centered around the recession, more women in the workforce and the rise of living together before marriage.

Read More: The Huffington Post

 

 

Bethenny Frankel On Her ‘Excruciating’ Divorce

Divorce is hard for everyone and being a celebrity does not make the pain go away. Talk show host Bethany Frankel spoke about her divorce experience recently on “Good Day New York.”

Read More: ABC News

 

Divorce Whisperer? Mediating With Parents Isn’t Easy

We often talk about dealing with divorce for parents and its immediate impact on their kids. But what about the long term effects for grown children. Sometimes it can morph into repeatedly annoying situations down the line. Especially when it comes to family gatherings or necessary outings.

For example think of a wedding. Where do you put your parents to sit? How do they tolerate each other at the table? What about other family gatherings? These are all things to consider for an older child with divorced parents. Mitigating these issues can be quite stressful.

Shannon Sweeney has delt with this herself. In a recent New York Times article she highlighted what she has gone through.  Read More : New York Times – http://www.nytimes.com/2013/04/28/fashion/weddings/divorce-whisperer-mediating-with-parents-isnt-easy-field-notes.html

Still for most the issues arise mostly over money matters. Think of a divorced child’s future wedding. Who pays? Here you could be faced with a situation where one parent wants to show their love by one-upping the other. Or perhaps one parent doesn’t want to pay more than the other.

Regardless in many cases old wounds fester and develop into real issues for many divorced couples, and it’s the adult children who have to deal with the repercussions.  Dealing with two bickering adults shouldn’t be wished on anyone.

Scarlett Johansson: My Divorce From Ryan Reynolds ‘Wasn’t That Long Ago’

Actress Scarlett Johansson is seemingly still feeling the effects of her divorce from Ryan Reynolds. though she admits she has found a way to move on, she is quick to remind readers in upcoming issue of Marie Claire that her divorce from Mr. Reynolds was “not that long ago.”

Read More: ABC