High-Asset Divorce | Pennsylvania Family Law Blog - The Law Offices of Sheryl R. Rentz
Many people engage in hiding assets to avoid paying their fair share in equitable division of assets in divorce. It is surprisingly easy to hide money in an offshore account. This financial strategy can be done before filing for divorce to try to avoid splitting the assets fairly. Tax havens are easily established in locations such as the Cayman Islands, Switzerland, or Belize, where accounts can be hidden due to rules regarding account ownership confidentiality and privacy protections these locations provide.
Divorce can be a very difficult process to endure. Things get even more complex when a couple has lots of property, a business, or high-expense items that need to be divided. The state of Pennsylvania does not enforce a 50/50 split of assets in a divorce, so the task of deciding who gets what can be stressful. Each spouse gets a portion of the marital assets based on his or her unique situation. For example, the spouse that receives sole/primary custody of the children may receive an increased portion of marital assets. Read the rest »
Division of property is not the only complicated consequence of a high-end divorce. There are many other factors that must be considered, not the least of which are the tax implications. If you are in the process of going through a high-end divorce in Pennsylvania, please make sure you understand its potential impact on your taxes.
Your divorce will affect your taxes, but there is no hard-fast rule to help you predict how much your taxes will change. Child support payments are not taxed but receiving spouses are taxed on spousal support. Property transferred from one spouse to another during a divorce is often taxable as well. There are even specific tax laws in place that may affect the transfer of U.S. bonds, life insurance, annuities, and the sale of a principal residence. Additionally, there are tax questions that may arise in relation to retirement plans. Read the rest »
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 »
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 Montgomery County high asset divorce 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 »
No divorce is easy. A high-asset divorce is even more complicated than a standard divorce. Because the spouses in a high-asset divorce have retirement accounts, substantial investments, family businesses and other items they’ve acquired and worked on together, the help of an attorney who specializes in high-asset divorce questions is invaluable when the time comes to separate.
One of the biggest challenges of any divorce is the division of assets. This stressful process can become even more complex when one or both parties have high net worth and significant assets. If you are involved in a high-end divorce, you will need an experienced Pennsylvania high asset divorce attorney with an exceptional understanding of tax and finance law to protect your assets and best interests.
Even the most amicable of separations can become antagonistic when property and high-value assets are involved. It is common for arguments to occur when discussing the division of real estate, bonuses, pension plans, item investments, family businesses, and inheritance. To reduce stress levels and to ensure that your assets are protected, an attorney will provide the following services: Read the rest »
If you are considering a divorce, then you are already keenly aware of the emotional stakes. But a divorce is also a financial arrangement – and this is never truer than when the spouses seek to divide a high-asset estate between them. By working with an experienced Pennsylvania divorce attorney who understands high-asset divorce issues, you can protect your financial health as well as your legal rights.
One place to start is to work with your attorney to create a specific, proactive plan for dealing with your divorce. A lack of planning puts you on the defensive, in a “reactive” stance automatically, setting you at a disadvantage and often resulting in unnecessary delays. Read the rest »
Your divorce may be one of the most emotionally difficult periods of your life. But it is also important to remember that divorce is, in a sense, a business transaction. You and your spouse have spent years or even decades building assets and managing bills and debts together, and you are entitled to an equitable share of the work your marital estate represents.
Financial and business issues loom largest in high-net-worth divorces. A divorce may be considered “high net worth” if:
- One or both spouses are high income earners, and/or
- The couple has accumulated significant assets. Read the rest »