A recent New York Times article discussed an especially scandalous story involving hedge fund millionaires, a love child and a potential gold-digging, Mount Everest-climbing socialite. The story begins in Aspen, Colorado, a city full of wealthy jetsetters looking to mingle. It was there that Warren Lichtenstein, a Wall Street financier, met Annabelle Bond, a British… Continue Reading
Category Archives: Tax Issues
Subscribe to Tax Issues RSS FeedImportant Steps To Take If You’re Preparing For A Divorce
Posted in Attorney-Client Relationship, Divorce, Financial Issues, Practice Tips, Procedure, Research & Investigation, Separation, Tax IssuesThe process of deciding whether to seek a divorce can be a long and difficult one. There are many emotional and financial calculations that go into making this decision, and many couples wrestle with the issue for a considerable amount of time before feeling confident with their conclusion. Taking the necessary time to know that your… Continue Reading
Tax Tips For Those Going Through A Divorce in South Carolina
Posted in Alimony, Child Support, Financial Issues, Tax IssuesThough everyone agrees that tax season is painful enough by itself, adding a divorce to the mix makes a bad situation even worse. No one wants to face a whopping tax bill in the midst of an expensive or exhausting divorce battle. To avoid costly mistakes, consider following these tips provided by Forbes magazine. First things… Continue Reading
How Might the American Taxpayer Relief Act Affect Your Divorce?
Posted in Divorce, Financial Issues, Tax IssuesWhen Congress passed the recently enacted American Taxpayer Relief Act on January 1, 2013, the goal of the legislation was to keep the economy from falling off the proverbial “fiscal cliff.” In an attempt to avoid what would have been a massive rise in tax rates in conjunction with a massive drop in government spending,… Continue Reading
Tax Tips For Those Facing A South Carolina Divorce
Posted in Alimony, Child Custody, Child Support, Financial Issues, Tax IssuesAs tax season rapidly approaches, those going through a divorce (or those thinking about doing so) may have some questions about how a split can affect your taxes. The first, and most commonly asked question is how does a divorce affect your filing status? This is thankfully an easy answer. Your filing status is determined… Continue Reading
The Importance of Documenting Alimony Payments
Posted in Alimony, Contempt of Court, Financial Issues, Research & Investigation, Tax IssuesAlimony, also known as spousal support, includes payments made by one spouse to the other for that spouse’s support following a divorce. Courts in South Carolina are not required to grant alimony in every case, they instead have the discretion to grant it under certain circumstances (which are discussed here). Alimony payments are typically tax-deductible… Continue Reading
What If Your Spouse Has All of Your Financial Information?
Posted in Assets and Debts, Discovery, Financial Issues, Research & Investigation, Separation, Tax IssuesIt is not uncommon in marriages for one spouse to maintain access to most of the financial information. In some relationships this is because one spouse wants to control the other spouse, but in most relationships, it is simply the most convenient way to run the household. With the advent of online payments for everything… Continue Reading
What to Watch For When It Comes to Spouses Hiding Assets
Posted in Assets and Debts, Attorney-Client Relationship, Discovery, Divorce, Financial Issues, Practice Tips, Research & Investigation, Separation, Tax IssuesEveryone knows that hiding assets during a divorce is sneaky, unethical and illegal. Sadly, it happens much more frequently than most people, often women, suspect. Many families have complex financial portfolios, which can include a home, rental properties, bank and stock accounts, retirement or pension plans, stock options, life insurance, and many other things. Given… Continue Reading
How Forensic Accountants Can Help in Divorce Proceedings
Posted in Divorce, Financial Issues, Research & Investigation, Separation, Tax Issues, Trial of CasesDivorce is never easy. Having a skilled team of attorneys and support professionals involved, however, may make the process move more efficiently toward a resolution. For the parties in the divorce, as well as for the attorneys who represent them, a professional collaboration with a forensic accountant can be an excellent investment. There are numerous… Continue Reading
How Does Divorce Affect Your Taxes in South Carolina?
Posted in Assets and Debts, Divorce, Financial Issues, Procedure, Tax IssuesEveryone knows the tax code is complex and it’s because of this complexity that you should understand tax considerations before you finalize your divorce so you can address any potential issues now rather than waiting until tax time is upon you. It’s also a good idea to speak with a tax professional to get the… Continue Reading
How to Divide Invaluable Assets
Posted in Assets and Debts, Communication, Dispute Resolution, Divorce, Financial Issues, Separation, Tax IssuesChristopher Larson and Julia Calhoun were able to divide most of their assets, but when it came to their art collection the couple could simply not agree. While emotionally valuable items are common in divorce, the couple’s art collection had not only emotional value, but a tremendous dollar value. The collection was appraised for over… Continue Reading
“Gray Divorce” in South Carolina Comes With Unique Financial Concerns
Posted in Assets and Debts, Divorce, Financial Issues, Marriage, Relationships, Separation, Tax IssuesThe trend known as “gray divorce” appears to be picking up steam. The numbers of senior divorces in the country continue to grow and with the baby boomers aging the amount will likely rise even faster. Susan L. Brown and I-Fen Lin at Bowling Green State University’s National Center for Family & Marriage Research Center… Continue Reading
Guest Post :: How Staff CPA’s Can Impact Family Law Litigation
Posted in Assets and Debts, Attorney-Client Relationship, Discovery, Divorce, Financial Issues, Marriage, Practice Tips, Research & Investigation, Separation, Tax IssuesFamily law encompasses a wide range of legal issues involving marriages, civil unions, adoptions, surrogacy, divorce, visitation rights and more. In most family law cases, the financial and personal needs of each member of the family must be addressed, and every situation varies a great deal depending on the number of dependents, types of assets and business incomes. With… Continue Reading
Being Too Nice in a Divorce Can Lead to Trouble
Posted in Assets and Debts, Child Custody, Dispute Resolution, Divorce, Financial Issues, Research & Investigation, Separation, Tax IssuesEven in an amicable divorce, financial mistakes can be made that cause problems long down the road. In fact, experts point out that these mistakes often arise precisely because people are too busy trying to be friendly to pay attention to the details. People seeking strictly “amicable” divorces can come into the process very naïve,… Continue Reading
How To Financially Prepare for a South Carolina Divorce
Posted in Assets and Debts, Child Custody, Child Support, Discovery, Dispute Resolution, Divorce, Financial Issues, Marriage, Separation, Tax IssuesDivorce is a difficult process, emotionally and financially. Before you blindly step into the stressful process, there are steps you can take to empower yourself by getting your financial ducks in a row. Taking the following steps can help make things run more smoothly and even lower your eventual legal bills by being so prepared…. Continue Reading
The Benefits of a Post-Nup in South Carolina
Posted in Alimony, Assets and Debts, Child Custody, Child Support, Communication, Dispute Resolution, Divorce, Financial Issues, Prenuptial Agreements, Tax Issues, VisitationThough prenuptial agreements are commonly referred to a distant cousin, the postnuptial agreement is far less often seen. Though more infrequently used, it can still be a very powerful and important tool for couples to consider to protect their assets in case of divorce or separation. The only difference between a pre- and post-nuptial agreement… Continue Reading
The Confusion of a QDRO
Posted in Assets and Debts, Divorce, Financial Issues, Jurisdiction, Procedure, Separation, Tax IssuesThe word itself seems very bizarre: QDRO. What is it exactly and why should you care? Well, if you’re going through a divorce you’ve likely seen some mention of the acronym. First things first, a QDRO stands for “Qualified Domestic Relations Order.” Now, what does it do you might be asking. Well, according to a… Continue Reading
Divorce-Related Tax Tips Just in Time
Posted in Alimony, Child Custody, Child Support, Divorce, Financial Issues, Tax IssuesWhile the rules for divorced taxpayers have not changed to terribly much in the past few decades, divorce has. Joint custody and other changes in the way people split property have succeeded in making figuring out what is owed to Uncle Sam and by whom harder than ever. The following are five tips on some… Continue Reading
How South Carolina Parents Can Claim Dependent Children
Posted in Child Custody, Children, Financial Issues, Tax IssuesMany people going through a divorce have questions about what to do come tax time with their dependent children. When and how a person can claim a child following a divorce can depend on a number of factors. The first step before you claim a child as a dependent is to make sure he or… Continue Reading
Introduction of New Tax Law in 2011
Posted in Tax IssuesThe following Guest Post is from Marc Brown: Taxpayers are expected to be overwhelmed with the introduction of the list of new tax laws. Both low and high income families will be affected with the new changes in the tax law of 2011. Although there are very limited cost effective changes on the list, the revision… Continue Reading
Tax Resources for Separated and Divorcing Couples
Posted in Tax IssuesIt’s tax time, and divorcing couples have (or should have) lots of questions about how to handle their tax situations. Our firm does not provide any tax advice, but the Pennsylvania Family Law blog recently published an excellent article to help those in that situation deal with the following issues: Tax Deductions Tax Credits Joint Tax… Continue Reading
Dependency Exemption Basics for Divorced Parents
Posted in Tax IssuesTax season has arrived and with it questions as to tax treatment of children of divorcing or divorced parents. For purposes of this article let’s deal with the most basic, the "dependency exemption". According to the IRS, the parent who has custody of his or her child for more than one-half the year can claim… Continue Reading
Can a Child Be Treated as a Dependent of Both Parents for Tax Purposes?
Posted in Tax IssuesRevenue Procedure 2008-48, released by the Internal Revenue Service, describes the circumstances under which it will treat a child of parents who are divorced, separated, or living apart as the dependent of both parents. These circumstances are very specific, and they deal with §§ 105(b), 106(a),132(h)(2)(B), 213(d)(5), 220(d)(2) and 223(d)(2) of the Internal Revenue Code… Continue Reading
Which Parent Can Claim the Child as a Dependent on His/Her Income Tax Returns?
Posted in Children, Tax IssuesFrom The Oregon Divorce Blog: Clients often come to me asking whether they or their ex-spouse/unmarried parent of their child can claim their joint child as a dependents for tax purposes and receive the dependent tax exemption. They often think that this is a decision that is up to them and attorneys often use it… Continue Reading