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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...
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Showing posts sorted by relevance for query spousal support. Sort by date Show all posts
Showing posts sorted by relevance for query spousal support. Sort by date Show all posts
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
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| 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
Posted on
Monday, April 8, 2013
Marrying couples use prenuptial agreement as a document that outlines many legal aspects of the parties heading into marriage. Provisions for the fair division of marital assets and spousal support are commonly outlined and described. Although a prenuptial agreement is not a favorite conversation topic among couples, its popularity has become widespread in recent years.
There are unique cases however wherein a prenuptial agreement can be dismissed by the court. While most agreements are completely legal, there are a few exemptions in extreme cases such as one explained during a recent ruling.
After a year fighting what she believes is an unfavorable and aggravating alimony and marital asset distribution, a woman was finally given vindication by the local appellate court by overturning a prenuptial agreement she signed prior to her marriage.
Her husband, whose net worth is around $30 million, prepared the prenup which he promised to revoke once the couple has a child together. It stipulates that the ex-wife is only entitled to $25,000 for each year they are married. It also adds that all marital properties earned during the time of marriage will go to the husband.
According to legal documents, the appellate court agreed that provisions for alimony and property division in the prenup, including the acts of coercion and failure of the husband to make good on his promise, were fraudulent and intends to cause undue hardship to the female spouse. The court felt that it can’t allow such an agreement to be enforced in any legal manner.
The overturning, handed down in Brooklyn, New York, was the first of its kind in the country and legal experts are excited about it. Many are claiming that it sets legal precedent for prenuptial agreements which rarely gets overturned.
Prenuptial agreements are effective legal tools that set provisions for alimony after a split and the separation of assets earned prior to marriage. However, it is only good as long as it’s not fraudulent in nature and does not set a spouse up to destitution.
Read More
Marrying couples use prenuptial agreement as a document that outlines many legal aspects of the parties heading into marriage. Provisions for the fair division of marital assets and spousal support are commonly outlined and described. Although a prenuptial agreement is not a favorite conversation topic among couples, its popularity has become widespread in recent years. There are unique cases however wherein a prenuptial agreement can be dismissed by the court. While most agreements are completely legal, there are a few exemptions in extreme cases such as one explained during a recent ruling.
The overturning, handed down in Brooklyn, New York, was the first of its kind in the country and legal experts are excited about it. Many are claiming that it sets legal precedent for prenuptial agreements which rarely gets overturned.
After a year fighting what she believes is an unfavorable and aggravating alimony and marital asset distribution, a woman was finally given vindication by the local appellate court by overturning a prenuptial agreement she signed prior to her marriage.
Her husband, whose net worth is around $30 million, prepared the prenup which he promised to revoke once the couple has a child together. It stipulates that the ex-wife is only entitled to $25,000 for each year they are married. It also adds that all marital properties earned during the time of marriage will go to the husband.
According to legal documents, the appellate court agreed that provisions for alimony and property division in the prenup, including the acts of coercion and failure of the husband to make good on his promise, were fraudulent and intends to cause undue hardship to the female spouse. The court felt that it can’t allow such an agreement to be enforced in any legal manner.
The overturning, handed down in Brooklyn, New York, was the first of its kind in the country and legal experts are excited about it. Many are claiming that it sets legal precedent for prenuptial agreements which rarely gets overturned.
Prenuptial agreements are effective legal tools that set provisions for alimony after a split and the separation of assets earned prior to marriage. However, it is only good as long as it’s not fraudulent in nature and does not set a spouse up to destitution.
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
Tuesday, April 2, 2013
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In a landmark move, a bi-partisan measure has been approved in the State Assembly that will finally put an end to laws considered by many as unfair and outdated.
New Jersey’s legislators have unveiled legislation to eliminate the draconian permanent alimony and establish guidelines to determine the amount and duration of alimony in the state.
The current law allows the court to award any of four types of alimony – permanent, limited duration, rehabilitative and reimbursement -- without specific laws concerning its duration or amount. Alimony in New Jersey was designed to address different considerations when a marriage is dissolved.
The bill is looking to bring fairness by eliminating permanent alimony while establishing the basic guidelines. These guidelines will be used to determine length and amount of the spousal support to be awarded. The guideline is based off the length of the marriage or civil union.
The guideline starts alimony at a maximum of 50 percent of the total months together with an increase of 10 percent every five years for the number of months together. For couples that lasted longer than 20 months, the court will have the discretion to award alimony for an indefinite length of time.
The bill would also set the amount afforded to a limited duration alimony award. The amount should generally not exceed the recipient’s need or 30 to 35 percent of the difference between both parties’ gross incomes. The courts are allowed not to use this if it determined that a deviation is necessary. The court is also allowed attribute income to a party it found to have voluntarily underemployed or unemployed itself.
The new law is seen as a major step forward to what many have complained about as unfair alimony provision of the state that hurts mostly men in a divorce. It will be implemented later in the year.
The current law allows the court to award any of four types of alimony – permanent, limited duration, rehabilitative and reimbursement -- without specific laws concerning its duration or amount. Alimony in New Jersey was designed to address different considerations when a marriage is dissolved.
The bill is looking to bring fairness by eliminating permanent alimony while establishing the basic guidelines. These guidelines will be used to determine length and amount of the spousal support to be awarded. The guideline is based off the length of the marriage or civil union.
The guideline starts alimony at a maximum of 50 percent of the total months together with an increase of 10 percent every five years for the number of months together. For couples that lasted longer than 20 months, the court will have the discretion to award alimony for an indefinite length of time.
The bill would also set the amount afforded to a limited duration alimony award. The amount should generally not exceed the recipient’s need or 30 to 35 percent of the difference between both parties’ gross incomes. The courts are allowed not to use this if it determined that a deviation is necessary. The court is also allowed attribute income to a party it found to have voluntarily underemployed or unemployed itself.
The new law is seen as a major step forward to what many have complained about as unfair alimony provision of the state that hurts mostly men in a divorce. It will be implemented later in the year.
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.
