Property division issues for high-earning women who divorce

David M. Gabriel & Associates

Times have changed, in Massachusetts and across the nation, and the days in which men were the breadwinners and women were the house makers are long gone. While there are still some households that adhere to this once-standard social norm, many others are comprised of two working spouses. In some cases, women bring in the bulk of the household’s income. For such women who face divorce and the inevitable property division process, there are a number of considerations that come into play. Divorce involves the division of marital assets, which can become complicated in some families. As with any financial matter, the best approach lies in proper planning. To that end, prenuptial or postnuptial agreements are one of the best ways to protect assets in the event of a divorce. Another savvy financial move is to maintain any inheritance money or assets separately from marital funds. Keep such assets within the name of the receiving party, and do not use inheritance funds to pay for jointly held debt. Another issue concerns business interest. For women who own their own business, much of the hard work and effort put into making that business profitable can be lost through divorce. There are ways to safeguard against these types of losses, including the use of trusts or other legal agreements. These avenues should be explored before the need arises to protect one’s business during a divorce proceeding. For women who have achieved a high level of success in the workplace, the best way

Investing the proceeds from property division

David M. Gabriel & Associates

Once the dust settles and the papers are all signed, many newly divorced individuals find that they have a new set of decisions to make. Among these is what to do with the proceeds gained from the property division process. For Massachusetts resident who are emerging from divorce, it may be tempting to put off making additional decision, especially if the divorce was contentious or lengthy. However, letting one’s divorce proceeds simply sit in the bank is never the most financially savvy option. The money that comes as a result of divorce is best put to use in building financial security for one’s future. Whether that means establishing emergency savings, investing in a retirement plan or purchasing a mix of stocks and other investment vehicles, the choices made at this stage can greatly affect one’s finances in the years to come. In addition, there is a great deal of benefit gained from taking a proactive stance toward one’s finances, especially for parties who were not involved in the financial management aspects of the former marriage. Retirement planning should play a role in how divorce proceeds are allocated. In some cases, divorced spouses who were married for at least 10 years can claim benefits from the Social Security record of their former spouse. This is not, however, a comprehensive retirement plan, and should be considered as a means of supplemental retirement income only. The best method of determining how to invest for retirement is to asses existing finances and then estimate

Same-sex marriage issues: No divorce for transgendered man

David M. Gabriel & Associates

Massachusetts readers may remember media coverage of the ‘pregnant man’ that made the rounds a few years ago. The individual in question is a transgendered man who has been legally married to a woman since 2003. When his wife was unable to become pregnant, he made the decision to carry the couple’s three children. The marriage faltered in recent years, however, leading both spouses to seek a divorce. Their desire to divorce has proved troublesome. This is due to the fact that while they were legally married in a state that recognizes same-sex marriage, they later relocated to one that does not. As a result, their divorce has encountered a number of legal challenges, and has seemingly stalled out following a recent hearing on the matter. An Arizona judge recently ruled that the couple cannot be divorced in that state, due to the fact that there is state ban on gay marriage. In making that decision, the judge heard evidence that the man in question underwent testosterone treatments as well as elective surgery to transform himself into a man. However, the judge ruled that the man did not make any subsequent non-surgical efforts, and halted hormone therapy at some point prior to the hearing. As this case demonstrates, same-sex couples often have to negotiate legal processes that are far more complicated than those that heterosexual couples may encounter, in Massachusetts and elsewhere. When a gay or transgendered couple relocates to a state that does not recognize same-sex marriage, significant legal

Same-sex couples face divorce challenges

David M. Gabriel & Associates

Divorce can be a daunting prospect, no matter the gender of the spouses. However, when same-sex couples in Massachusetts decide to divorce, they face a set of challenges that heterosexual couples do not. Chief among these are concerns that arise when a same-sex couple resides in a state in which their marriage is not legally recognized. In such cases, spouses are left with little choice in regard to filing for divorce. In some cases they are able to return to the state in which they were married and complete the divorce process there. There is also the possibility of filing for divorce in the state of residence, then waiting to see how the court will handle that action. However, these options presume that both spouses are willing to work together to reach an amicable end to their marriage. When one spouse does not want to ease the process, additional legal issues can arise. One example lies in a challenge by one spouse in regard to jurisdiction. Such a legal challenge could put the brakes on a divorce filing, making it incredibly difficult and expensive for all involved. As the Supreme Court hears two landmark cases on gay marriage, many are advocating for equal rights to divorce. The American social landscape is changing, and more and more states are acknowledging the rights of gay couples to wed and establish a legal family. It is essential that the law in Massachusetts and elsewhere keep pace with such changes, and address these and

Retirement funding is key to property division negotiation

David M. Gabriel & Associates

When considering issues of property division during divorce, it is imperative to include retirement funding. It is easy to become bogged down by fighting over the family home or issues associated with the division of tangible property. However, in many cases the Massachusetts spouse who emerges with the retirement savings is far better prepared for future financial success than the party who keeps the house. Property division can be far more complicated than making a simple list of real estate holdings and shared belongings. Many former spouses who fail to give this topic proper attention during the divorce process find themselves struggling to fund their retirement when the time comes. For some, the ability to claim against the Social Security record of a former spouse becomes a central issue. While it may be possible to receive Social Security benefits based on the earning record of a former spouse, there are certain requirements that must be met. Chief among these is the requirement that the claiming spouse remains unmarried. The only exception to this lies in cases in which the former spouse is deceased and the surviving spouse did not remarry until after the age of 60. If the surviving spouse is disabled, he or she can claim survivor’s benefits if they remarry after the age of 50. When considering issues related to property division, it is important to understand that the decision made during divorce negotiations should focus on long-range plans. Retirement funding should play a role in that process,

Financial prep when a gay marriage turns into a divorce

David M. Gabriel & Associates

When a same-sex couple in Massachusetts encounters marital difficulties, the process of ending a marriage is no different than that for a heterosexual couple. There are a number of measures that spouses should take if they believe that their union is on the rocks, no matter what their gender. With proper planning, an individual can greatly offset many of the negative ramifications of divorce, leaving them better-equipped to move forward in their single life. One basic preparation strategy involves keeping good records. This includes collecting and copying all tax returns and credit card statements, as well as income documentation for both spouses. Having good records can make it easier to approach a court for spousal support or child support. Another savvy means of preparing for the worst involves setting aside some savings to weather the period between filing for divorce and coming to terms on a final settlement. Having enough cash on hand to cover basic living expenses is important, and can make a huge difference in one’s stress level as the process moves forward. In addition, it may also be a good idea to pay down existing debt before filing for divorce. When it seems likely that divorce is on the horizon, gay spouses in Massachusetts should ensure that they are as prepared as possible for the coming months. The steps suggested here are not solely beneficial to the divorce process, but are also good tips that any couple can take advantage of. If the marriage stabilizes, having done

Unusual fathers’ rights case makes national headlines

David M. Gabriel & Associates

When it comes to child support enforcement, the players often fall along stereotypical lines. You have the beleaguered single mother, fighting the get the courts to force the deadbeat father to pay for the needs of his children. The story has become so ingrained in our collective belief about child support that any exception to this scenario garners media attention in Massachusetts and elsewhere. One recent case offers an unusual take on fathers’ rights, and has many debating the current state of child support law. A man recently faced a judge to defend against the charge of having unpaid child support. However, the man offered DNA test results that proved him not to be the father of the child in question. However, he still emerged from the courtroom owing child support to a woman who had deceived him for the past 13 years. At the time of the child’s birth, the man’s girlfriend claimed that he was the child’s father. Although he had doubts at the time, he signed the baby’s birth certificate. As a result, a judge is holding him to that promise, and has ordered that he pay toward the $23,000 in back support owed. However, he will be allowed to do so at a rate of $1 per month, interest free. At that rate, he will be able to fulfill his obligation in as little as 1,917 years. As this fathers’ rights case demonstrates, family court judges hear a wide range of cases, not all of which

Tax consequences for older Americans who divorce

David M. Gabriel & Associates

When a Massachusetts couple over the age of 50 makes the decision to end a marriage, the issues they face are often very different from a couple in their 20s or 30s. As we approach retirement, our financial goals change, and financial planning becomes a more pressing need. As a result, baby boomers who are calling it quits should take the time to ensure that they are adequately prepared for the tax consequences and other financial repercussions of divorce. Tax concerns are usually a primary concern for divorcing spouses. Couples who have been together for a long time have grown accustomed to their tax burden, and have effectively planned around that expense. Divorce can bring drastic changes to each spouse’s tax obligations, however, and should be planned for before the divorce settlement has been reached. For example, the decision to keep or sell the family home has significant tax ramifications. If one spouse plans to remain in the home, he or she will take on the costs of maintaining the property, but will also get the tax deductions associated with home ownership. The spouse who walks away from the property may have a lower monthly living expense, but will also lose all homeownership tax deductions. Another consideration involves cases in which the couple decides to sell the home. Selling a home in a year that the owner can still file as married can make a great deal of difference in the bottom line, as the current tax code allows for

Property division issues for high-earning women who divorce

Investing the proceeds from property division

Same-sex marriage issues: No divorce for transgendered man

Same-sex couples face divorce challenges

Retirement funding is key to property division negotiation

Financial prep when a gay marriage turns into a divorce

Unusual fathers’ rights case makes national headlines

Tax consequences for older Americans who divorce

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David M. Gabriel & Associates

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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