How to keep tax planning and divorce separate

David M. Gabriel & Associates

Divorce is emotional, and that emotion often interferes with the efficient distribution of the marital estate. Forensic accountants can help by locating all the assets and liabilities for marital division. These specialized certified public accountants can also investigate and analyze financial evidence and interview parties to help prevent fraud. In their tax advisor roles, CPAs helps the parties of the divorcing couples to divide the marital assets orderly and with the least tax burden. Any property that is acquired by the spouses during the marriage is generally marital property. Some retirement plans that qualify under the Employee Retirement Income Security Act are not subject to state laws that govern that govern the division of marital property. The courts determine on what is fair and equitable in 41 states for the division of assets. In the other 9 states, the separate property brought into a marriage will remain separate property as long as it remains segregated and identifiable. When there are possible tax liabilities associated with property division, CPAs can help soon-to-be ex-spouses determine how much they owe due to the divorce so they won’t be surprised come tax time. When many people get divorced, it’s easy to simply consider the immediate concerns, such as child custody, support, alimony and property division. However, the tax implications can be bigger than you might anticipate. By enlisting the help of a CPA, you will be able to determine your tax liability long before a tax bill will come due. An attorney who is

Protecting Inheritances

David M. Gabriel & Associates

Have you inherited property, heirlooms, money from your family and wondering how to protect what is yours in the event you and your spouse decide to divorce? What is considered marital property when determining property division in a divorce? This can vary depending on the circumstances unique to your situation. However, there are steps you can take to improve your outcome in the event of a divorce. First and foremost, if you are not married yet but are planning to get married soon, you should consider a prenuptial or postnuptial agreement. This will help shield your assets such as money, an inherited business or property. While not full proof, a prenuptial agreement can declare what inheritances or gifts each spouse agrees to surrender rights to in the event of divorce. Another important point to consider is safeguarding documentation regarding the intended beneficiary of a gift or inheritance. If you do have something in writing such as letters from a family member describing the designated recipient of a gift, keep these items in a safe place. This form of documentation showing intent may help you when dividing property in a divorce. Never co-mingle inherited money or other assets into an account with your spouse’s funds. Keep your assets in a separate bank or investment account and, again, save documentation. When couples pool their money, it is difficult to differentiate who has claim to it, even if some of it was specifically given to one recipient. As far as more expensive gifts

How to get your ex-spouse or partner to pay a portion of college

David M. Gabriel & Associates

In Massachusetts, the Family Law Court has the authority to order divorced parents to contribute something to their children’s college education expenses. Usually the court won’t deal with this at trial unless the child is nearly at the age to attend college, but many agreements will address the issue in some way. When it comes to the payment of college education expenses, the specific language that your agreement is very important. Many agreements require parents to contribute in proportion to their incomes and abilities at the time the college bill becomes due. However, if your agreement states that you are to share equally, then that could require you to contribute one half of the cost. How educational costs are defined by the agreement could differ greatly and the specific language of your Divorce Agreement will be key to determining exactly what you are required to pay. And if you are required to pay a specific amount and you don’t you could be liable for Contempt. If the issue of payment of college is modifiable in your agreement or defined vaguely or even not at all, then when it comes time to determine how the college education expenses are going to be split, you should try to reach agreement with your ex-spouse on this issue. Often, an uncontested agreement cannot be met. Therefore you or your attorney must file a Complaint for Modification to have the court determine contributions. If you have a specific agreement, but it is modifiable and you

Why don’t men get alimony more often?

David M. Gabriel & Associates

Though many people often think of men as the main breadwinners for the family unit in the vast majority of cases, recent studies show that this is largely an outdated mode of thinking. In reality, roughly 40 percent of households have women as the main earners. When it comes to alimony, there are about 400,000 people in the country being paid. Out of that, a tiny 3 percent are men. When considering this with the 40 percent figure above, it stands to reason that a lot of men could be asking for and receiving alimony, but they’re simply not doing it. Why not? There are many reasons. Experts have noted that the following show up often: — Gender roles that just won’t go away: As noted, many people automatically assume that men should be the main providers, despite the real-world statistics, so men may not consider asking for alimony. — Pride: One man said that he would never hit a woman or beg for her help, and he felt like alimony was no better than begging. Despite the fact that his wife made more than $100,000 a year, he didn’t ask for alimony and instead got help from his parents. — Sexist judges: In some cases, a man may fully be qualified for alimony, and a judge may have ruled that it should be paid if the roles were reversed, but the judge allows bias to sway his or her decision, refusing to give alimony to the man. In some

Many fathers support children who are not their own

David M. Gabriel & Associates

Child support, at the base level, is very simple. The non-custodial parent is expected to contribute something to help with raising the child so that the other parent does not have to bear all of those costs alone. Married couples naturally split the costs, after all, so this is done to ensure that divorced couples also share them. However, there are many problems with the way this system works in reality. One issue that is not reported often, but which some have described as epidemic, is the way that fathers are sometimes forced to support children who are not biologically related to them. Do you think that the odds of this happening are low? Studies have actually shown that 30 percent of fathers paying support are giving it to children who are not their own. This happens in a few different ways. For example, if a mother signs up to get welfare benefits for herself and a child, the application asks for the father’s name, and she has to write one down. She may knowingly or accidentally write the name of a man who isn’t the father, and she does not have to offer proof other than her word. Another way that this can happen is when a child is born and a man truly believes that he is the father, so he signs the paperwork claiming the child at the hospital. Later on, he finds out that the woman — perhaps his wife, but perhaps not — had been

Ask the right questions when dividing property

David M. Gabriel & Associates

As you go to court to divide property during your divorce, it’s crucial that you ask all of the right questions and gather as much information as you can. A few questions to consider include the following: — Is there anything that could make the marriage invalid? This can happen in some cases, and it may mean you’re not obligated to split up your property the same way you would be if the marriage is valid. — What is the exact date that you and your spouse have separated? Property obtained after that date but before the divorce often doesn’t have to be divided. This way, if the divorce takes months to come together, you don’t have to split up your earnings from after the marriage is effectively over. — Do you know all of the property that you and your spouse own? You are both required to declare this to the court. Look over the records carefully, especially if you think that your spouse may try to hide assets from you. — Did you sign a prenup when you got married? This can have a drastic impact on property division, and you need to know exactly what it does. — Have you identified your debts? Remember that property division is about dividing debts as well as assets, and the way these debts are split may even have more of a long-lasting impact on your life than the division of property. To learn more about the divorce process in Massachusetts,

Financial divorce documents you may need

David M. Gabriel & Associates

For those getting divorced, it’s very easy to focus on the social and emotional sides of the split. While these things are important, it’s crucial to remember the legal side of the divorce, as well, and it comes with a lot of documentation. You don’t want to overlook anything, so consider the following examples of documents you may need: 1. Change of ownership forms that go along with your investments. If you’re saving for retirement, you want to make sure that you still have access to your funds — and that you’re the only one who does. 2. Beneficiary alteration forms. You probably listed your spouse as the beneficiary on your life insurance policy, and it is time to change it over to another relative, such as a sibling or a child. 3. A Qualified Domestic Relations Order, commonly known as a QDRO. This can be used if you get benefits — like a pension plan — from your employer. Your spouse may be entitled to a portion of those benefits. 4. Title change forms for your major assets. Things like your family home or your car may be in both of your names. Most couples either transfer these assets into just one person’s name or sell them off and divide the money. 5. Your will. This is perhaps the most important document to alter after a divorce, as you want to be sure the right people are given your estate when you pass away. It can be tough to

What judges consider regarding alimony

David M. Gabriel & Associates

If you’ve asked for alimony in your divorce filing or filed a Complaint for Alimony after the fact, you’re probably wondering how much you can get and how a judge determines what should be paid out. Every situation is a bit different — there is no strict law saying a set level of alimony must be paid — so the judge has to look at a variety of factors and make a specific ruling in every case. Some of these factors include the following: — How long you and your spouse were married before getting divorced.– How old you are and how old your spouse is; this is important when determining if you can still enter the workforce and earn money yourself.– Your overall health and the health of your spouse.– The contributions you both made to the marriage, both economic and non-economic.– Any economic opportunities that one of you gave up when getting married.– Your current income levels.– Your employment situation and your ability to be employed going forward.– What each of you needs to keep the same standard of living. Essentially, the court is just trying to figure out what it will take for both of you to keep living the way you were before the split. If you quit your job 20 years ago and have little hope of gainful employment, for example, because you thought your spouse would be there to support you, the court wants to provide some support even though you’re divorcing, as you

How to keep tax planning and divorce separate

Protecting Inheritances

How to get your ex-spouse or partner to pay a portion of college

Why don’t men get alimony more often?

Many fathers support children who are not their own

Ask the right questions when dividing property

Financial divorce documents you may need

What judges consider regarding alimony

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David M. Gabriel & Associates

Is Ready to Help You

Main Office

Salem Office

Burlington Office

Life Complicated? We Can Help

Life Complicated?
We Can Help

Categories

TAGS

TAGS

David M. Gabriel & Associates

Is Ready to Help You

Main Office

Salem Office

Burlington Office

Life Complicated? We Can Help

Life Complicated?We Can Help

Life Complicated?
We Can Help