Practically every divorce case involves marital assets to be divided between the parties. Of significant concerns are the tax issues involved in these transfers. Under U.S. Code § 1041 - transfers of property between spouses or incident to divorce, are non-taxable events. In order to utilize a “divorce or separation instrument” to divide an IRA, you should be sure that the judgment or settlement agreement includes language that is sufficient to divide the IRA, provides a clear method of division, provides a valuation date as of which the IRA is to be divided, and addressed gains and losses on the...Read More
Five Ways the New Tax Laws Will Affect Divorcing Couples
The 2017 Tax Cuts and Jobs Act is the most sweeping update to the U.S. tax code in more than thirty (30) years. The recently released bill would lower taxes on businesses and individuals and unleash higher wages, more jobs, and untold opportunity through a larger and more dynamic economy. How will these changes affect divorcing couples? These tax changes sunset in 2025. All marital settlement agreements with minor children should include proper language to handle changes if/when tax laws change. Please send me as message at info@southfloridamediationservices.com and I will gladly send you language to include in agreements addressing...Read More
There are 5 key players in every divorce.
(1) You. Three factors – who you are, what you want out of the divorce, and how eager you are to save or end your marriage – will impact how you show up and influence the divorce outcome. (2) Your spouse. The same three factors – Who s/he is, what s/he wants out of the divorce, and how eager s/he is to save or end the marriage – will influence the divorce outcome. There are things you can do to encourage your spouse to do the right thing and make the divorce less painful for you both. (3) Your attorney....Read More
Make Change Work for You in Your Divorce
When we experiences change in our life such as a divorce, we can control our response and reaction to the changes that are happening. Our role as masters of our own destinies is cemented when we choose to make change work in our favor. Yet before we can truly internalize this power, we must accept that we cannot hide from the changes taking place all around us. Existence as we know it will come to an end at one or more points in our lives, making way for some new and perhaps unexpected mode of being. This transformation will take...Read More
The Benefits of Mediation in Divorce
It is universally agreed that when possible, allowing parties to make their own decisions that impact their own financial outcome with the assistance of a mediator is much better than having a judge tell everybody what to do. The mediation process, because it is a negotiation, gives the parties a chance to seek a win-win resolution or to come up with alternative resolutions that benefit everyone involved. Litigation, while necessary in certain cases, is indeed a win-lose proposition. In effect, there can only be one “winner” or “loser” in trial. Trial is an exercise of loss of control by the...Read More