|
Featured Story: BETTER STORAGE MEANS BETTER COFFEE October 22, 2013 |
 Ever wonder why gourmet and specialty coffee shops serve the best and, not to mention, the most expensive cups of coffee?
It’s a known fact that coffee is best served when it’s at its freshest. Freshness is a big deal especially in the coffee business...
----------------------------------------------
|
Showing posts sorted by relevance for query high asset divorce. Sort by date Show all posts
Showing posts sorted by relevance for query high asset divorce. Sort by date Show all posts
Posted on
Thursday, March 14, 2013
Read More
A high asset divorce and the process of asset division can test the resolve of divorcing couples. It can take its toll on the parties involved, and affect the mental, emotional and financial well-being of those involved. In the U.S., most divorces, due to the amount of assets involved, are complex disputes with complications that unravel unceremoniously.
But what if one of the party’s capacities to take legal action on one’s behalf is in question? Are there steps that would allow such proceedings to take place legally?
In actuality, there are options available to accommodate such and these tools work in congruence to estate planning tools.
Many are familiar with a “Power of Attorney” – a written instrument that authorizes another individual or individuals to perform specific legal acts on behalf of a client-applicant – another version called the “Durable Power of Attorney” allows a principal to nominate a guardian or conservator of the estate, and their person in case of any legal action that needs to be taken, including divorce. Often, such guardians are assigned in the person’s estate plan “by consideration.”
While not a very common occurrence, “by consideration” means that the court can override a nominated guardian if it believes that the guardian is not fit for the role. Furthermore, the court can assign a “guardian ad litem” to protect the best interests of that individual during litigations, and to investigate if extra tools that safeguards the person’s legal interests are necessary.
Some states have legal provisions that allow the use of a legal “guardian” to initiate a divorce action on behalf of an incapable person, legally known as a “ward.” Not all states allow it though simply because applicable statutes don’t exist in those states. Often, the belief is that divorces, especially high-asset ones, are too personal to entrust to a third party.
To find out more, speak to a knowledgeable attorney in your local area for advice on legal guardianship and divorce actions.
But what if one of the party’s capacities to take legal action on one’s behalf is in question? Are there steps that would allow such proceedings to take place legally?
Some states have legal provisions that allow the use of a legal “guardian” to initiate a divorce action on behalf of an incapable person, legally known as a “ward.” Not all states allow it though simply because applicable statutes don’t exist in those states. Often, the belief is that divorces, especially high-asset ones, are too personal to entrust to a third party.
In actuality, there are options available to accommodate such and these tools work in congruence to estate planning tools.
Many are familiar with a “Power of Attorney” – a written instrument that authorizes another individual or individuals to perform specific legal acts on behalf of a client-applicant – another version called the “Durable Power of Attorney” allows a principal to nominate a guardian or conservator of the estate, and their person in case of any legal action that needs to be taken, including divorce. Often, such guardians are assigned in the person’s estate plan “by consideration.”
While not a very common occurrence, “by consideration” means that the court can override a nominated guardian if it believes that the guardian is not fit for the role. Furthermore, the court can assign a “guardian ad litem” to protect the best interests of that individual during litigations, and to investigate if extra tools that safeguards the person’s legal interests are necessary.
Some states have legal provisions that allow the use of a legal “guardian” to initiate a divorce action on behalf of an incapable person, legally known as a “ward.” Not all states allow it though simply because applicable statutes don’t exist in those states. Often, the belief is that divorces, especially high-asset ones, are too personal to entrust to a third party.
To find out more, speak to a knowledgeable attorney in your local area for advice on legal guardianship and divorce actions.
About The Author
Victor Dela Casa
is a Filipino-Canadian who spent over a decade working as a business
professional in Canada. Worked in IT, finance, marketing, international
trade, public service, project management and the maritime industry.
Earned degree in Economics from the University of the Philippines and
Business Administration Honours from Eastern College. Currently based in
the Philippines and
working as a professional writer for a multi-national business processes
firm.
Posted on
Wednesday, February 6, 2013
Divorce and alimony complications under the new tax laws
A friend once told me that when the season changes to fall, couples separate, and not too long after, in January, couples end up in court. The end of the holidays also spells the end of many marriages. The winter months do bring discontent and a spouse' cold shoulder.
Due to tax considerations, the start of the year has become a popular time for filing divorce. Thanks to the new tax laws, things just got a bit more complicated especially for wealthier couples whose bracket is being hit hard by increased taxes. This regime is forcing divorce lawyers and accountants to re-think several aspects of a high asset divorce agreement such as alimony, stocks and pensions.
Alimony is an area of concern for many. High-earners are bracketed at $400,000 gross income for single filers with a rate of 39.6%. This means that alimony may put a supported spouse over the threshold forcing them to pay more taxes thus putting a spouse who is receiving alimony in a difficult spot.
With a need to lower taxable incomes, some spouses are asking the courts for an agreement modification to change the existing spousal support package by decreasing the alimony and finding alternatives that doesn’t involve paying too many taxes. Unlike child support, alimony is deductible by the payer and is reported by the payee as income. One such alternative involve a more service focused packages such as real estate upkeep which is taxed less than income.
Investment portfolios are also being reconsidered. With taxable income on dividends and investments set at $200,000 of adjusted gross income and a new 3.8 percent Medicare surtax, experts advise against getting the entire share and pay more taxes. Instead, they recommend opting for another asset that generates income but also generates a tax loss like a rental property. Depending on how taxes will be paid, many are settling to split or share the portfolio.
Divorce is already a tricky matter. The new tax laws are proving to complicate the process even more with convoluted and increased taxes designed for the wealthy. With the help of knowledgeable legal professionals, divorcing couples can agree on an amicable and equitable sharing of assets and liabilities.
Tags: divorce, high asset divorce, spousal support, alimony, child support, agreement modification
Read More
 |
| Divorce - the winter of discontent |
A friend once told me that when the season changes to fall, couples separate, and not too long after, in January, couples end up in court. The end of the holidays also spells the end of many marriages. The winter months do bring discontent and a spouse' cold shoulder.
Due to tax considerations, the start of the year has become a popular time for filing divorce. Thanks to the new tax laws, things just got a bit more complicated especially for wealthier couples whose bracket is being hit hard by increased taxes. This regime is forcing divorce lawyers and accountants to re-think several aspects of a high asset divorce agreement such as alimony, stocks and pensions.
Alimony is an area of concern for many. High-earners are bracketed at $400,000 gross income for single filers with a rate of 39.6%. This means that alimony may put a supported spouse over the threshold forcing them to pay more taxes thus putting a spouse who is receiving alimony in a difficult spot.
With a need to lower taxable incomes, some spouses are asking the courts for an agreement modification to change the existing spousal support package by decreasing the alimony and finding alternatives that doesn’t involve paying too many taxes. Unlike child support, alimony is deductible by the payer and is reported by the payee as income. One such alternative involve a more service focused packages such as real estate upkeep which is taxed less than income.
Investment portfolios are also being reconsidered. With taxable income on dividends and investments set at $200,000 of adjusted gross income and a new 3.8 percent Medicare surtax, experts advise against getting the entire share and pay more taxes. Instead, they recommend opting for another asset that generates income but also generates a tax loss like a rental property. Depending on how taxes will be paid, many are settling to split or share the portfolio.
Divorce is already a tricky matter. The new tax laws are proving to complicate the process even more with convoluted and increased taxes designed for the wealthy. With the help of knowledgeable legal professionals, divorcing couples can agree on an amicable and equitable sharing of assets and liabilities.
About The Author
Victor Dela Casa is
a Filipino-Canadian who spent over a decade working as a business
professional in Canada. Worked in IT, finance, marketing, international
trade, public service, project management and the maritime industry.
Degree in Economics from the University of the Philippines and Honours
Diploma from Eastern College. Currently based in the Philippines and
working as a professional writer for a multi-national business processes
firm.
Tags: divorce, high asset divorce, spousal support, alimony, child support, agreement modification
