If you have never gone through a divorce before, you may be unaware of all the potential consequences of your separation. For example, there are substantial tax implications to a divorce. In general, you can divide most of your assets without any federal income or even gift tax consequences, but there are exceptions to the rule.
There is an opportunity to make tax-free transfers before a divorce and when a divorce becomes final. This means that you can receive tax-free treatment when exchanging stock and transferring vacation home ownership as long as the exchanges are made because of a divorce. For years, the IRS would get involved when couples transferred vested stock options, but you no longer have to claim the fair market value of all the stocks you move because of a divorce. However, you or your ex will have to recognize the income when the asset is sold, converted to cash, or exercised. Read the rest »
On September 12, 2013, Sherri Shepherd, the former host of “The View,” signed a 23-page contract to become the intended mother of a baby being carried by another woman. Shepherd wanted another child, but knew that carrying a baby would be difficult for her. According to a news report in Inside Edition, a 32-year-old surrogate mother was paid $25,000 to carry the baby for Shepherd and her husband, and the embryo was transferred to her uterus in November of 2013. Then, Shepherd and her husband separated and she allegedly lost interest in the baby. Read the rest »
One of the most important and complicated parts of a high-asset divorce is property division. There are many assets that both parties may want, such as businesses, cars, boats, collectibles, and furniture. There are also non-tangible items that may be coveted, such as bank accounts, trusts, stock options, patents, life insurance policies, retirement plans, and copyrights. Before you can even begin to divide these assets, you must identify them specifically, determine when the assets were acquired, and give each asset a value.
Identifying property is not as easy as it sounds. Make a list of everything you own separately and jointly. You can always remove items later. Make sure this list includes every tangible and non-tangible item you can think of that has value. Next, you will need to describe each asset as marital or non-marital. Under Pennsylvania law, all assets acquired by either spouse during marriage are considered marital property. Non-marital items may include assets acquired before marriage, assets acquired through inheritance, and assets acquired after the date of separation. Read the rest »
All divorce proceedings can prove stressful and complex. This is especially true when at least one of the spouses has a significant amount of wealth. To prevent contention and disagreement in the event of a divorce, Chris Rock and his then fiancé had signed a prenuptial agreement. This agreement, commonly known as a “prenup,” was designed to streamline the divorce and protect Rock’s finances. However, since they were married back in 1996, his agreement has expired.
It is common in a prenup involving clients with large amounts of assets to have sunset provisions. These are terms of the prenup that are only applicable for a certain amount of time. This allows the wealthy spouse to protect his or her assets if the marriage does not last. Some sunset provisions allows the wealthy spouse to protect the majority of his or her wealth for many years while other provisions may allow the entire prenup to expire. Read the rest »
There’s no doubt that your mind is going a mile a minute if you are facing a divorce. There’s a lifetime worth of responsibilities, possessions and memories to unravel on top of the confusing, overwhelming emotions you must be experiencing. But when the time comes to choose your representative in the split, it’s important to suss out the average from the exceptional. The outcome, and your future, will depend on it.
Even if this is not your first time meeting a lawyer, it’s important to ask plenty of questions during your consultation and to be prepared ahead of time. In the moment, it may be easy to forget to ask some of the following: Read the rest »
The holidays are a major source of stress for thousands of families in Pennsylvania. In addition to an already hectic work week, parents try to fit in as much shopping, gift wrapping, traveling and quality time with the children as possible. But when parents are navigating a divorce, the typical holiday rush is more than just nerve-racking; it can be downright panic inducing.
In order to help reduce the pressure and anxiety this season, remember to slow down, take a breath, and follow these simple steps.
Less is more. This festive time of year often means trying to make room for everything – every party, every decoration, and every favorite meal. And while you shouldn’t forgo your favorite family traditions, remember to keep things in perspective and plan accordingly. Differentiate between the wants and needs by narrowing down what’s most important. What traditions are more meaningful to your children? This may be the year where you decide to embrace simplicity and relaxation. Read the rest »
Unfortunately, for many couples entering the divorce process, even before the official documents have been served, many spouses begin looking for ways to keep money or other assets away from the other spouse. This often means that one (or both!) spouses try to hide financial information.
If you believe that your spouse is hiding assets from you at any point in the divorce, do not hesitate to speak with a knowledgeable Pennsylvania divorce lawyer. The best way to protect your rights and future well being is to evaluate what assets belong to the marriage and work to ensure that you receive your fair share. Read the rest »
Every divorce case is as unique as the individual people involved, and if there are young children to consider, the complications can become even more overwhelming. In the event that both parties share significant assets, the stakes become that much more difficult to navigate.
If you are considering filing for divorce or have been served divorce papers, the first step should be to contact an experienced and qualified attorney to represent your interests. Your lawyer will work on your behalf to protect your interests as well as those of your children. When high-assets are involved, you deserve to have a lawyer on your side to defend the specific financial and personal concerns of your case. Read the rest »
One of the most commonly cited reasons for divorce in the United States involve financial issues. And it’s not surprising. The topic of money can create tension between even the most agreeable couples. But in a day and age where divorce seems to be unavoidable, are there any options for steering clear of the financial pitfalls that break up so many committed relationships?
Whether you are about to walk down the aisle or have been married for decades, here are a few legal options for preventing arguments about money from becoming threats of divorce. Read the rest »
When it comes to weddings, the popular opinion (at least as far as the wedding industry is concerned) is that bigger is better. A lavish ceremony, an oversized diamond ring, and an elaborate after party are all touted as the ideal beginning to happily ever after. However, according to a study by Emory University in Atlanta, the more money a couple pours into tying the knot, the higher the probability the couple will soon follow their “I do’s” with divorce.
The study examined data contributed by more than 3,000 people throughout the U.S. who have been married and found the following correlations:
- Couples who spent $20,000 or more on their wedding were 46 percent more likely to divorce than couples who spent between $5,000 and $10,000. Read the rest »