Articles Posted in Divorce

January is often referred to as “Divorce Month” by some relationship professionals, while others think a more accurate description would be the month in which people start researching their options. In either case, there seems to be an increase in divorce activity, whether it’s initial inquiries or actual filings, at the start of a new year. In fact, the first Monday of the month sees an increase in divorce filings, which continues throughout the month.⁽¹⁾

The reasons behind this phenomenon range from the emotional to the practical. The holiday season plays a big role in the decision making process for many couples. People postpone taking action because they don’t want to:

• be alone for the holidays;
• break up the family during what should be a happy time; or
• appear cold and heartless for leaving their spouse during the holiday.

For others January is synonymous with a new start; it is a time for doing away with the old and starting something new.

Tax and financial issues pose more practical reasons why people wait until January to begin taking action towards their divorce. Because if they are legally married for even a short-time in the year, some couples can reap the benefits of filing joint tax returns. Also, some companies distribute employee bonuses in January and these bonuses can be claimed as assets by a spouse, possibly increasing the amount of a distribution his or her partner is entitled to. ⁽²⁾

Divorce is not an overnight process as most people realize. The time from which a person begins to entertain the possibility of divorce, until he or she begins to do serious research and ultimately files for divorce can take months. In fact, research shows that while divorce activity seems to spike in January, it peaks in March.(1) Once the petition for divorce is filed, getting a court date and negotiating a settlement takes more time. Continue reading ›

For most of us, the term “GPS” has become shorthand for the navigational system we rely on to get from one location to another or to help find alternative routes in the face of traffic congestion or road detours. This same technology, which uses satellite signals to determine location, can also be used to track the whereabouts of a vehicle or person carrying the device, with or without that person’s knowledge.

Whether or not such GPS use constitutes a violation of privacy rights or protections from unlawful searches and seizures as guaranteed by the Fourth Amendment has been the subject of much debate over the past few years. Now lawmakers in Trenton are expected to grapple with at least one aspect of this question once again when they reconvene next month.⁽¹⁾

It has been reported that Assembly Republican Leader John Bramnick of Westfield is preparing a bill that would make it illegal in New Jersey to use a GPS device to track a person’s whereabouts without his or her consent, a restriction that would apply even to spouses looking to catch their partners in adulterous situations or other incriminating activities.⁽¹⁾

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Even couples who are convinced their marriage is over hesitate to take the final steps toward divorce during the holiday season. Not wanting to disrupt their families during what is supposed to be a happy time, they put off the inevitable. For that reason, January has become the month in which the most divorce filings are recorded, earning it the name “divorce month.” ⁽¹⁾

Statistics say that half of all marriages end in divorce, but when considering that number, one must remember that statistics are merely estimations coupled with assumptions. ⁽²⁾ Still, the divorce rate in this country remains fairly high. Some people looking to end their marriage, however, prefer annulments over divorce. One reason is that a legal annulment can pave the way for a religious annulment down the road.

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It is natural for married couples to do almost everything together. After all, marriage is a partnership and one that is built on trust. Because of that, few people would hesitate to enter into a joint contractual or financial arrangement with their spouse. And while that may be fine as long as the marriage lasts, it could prove troublesome if the union ends in divorce.

Consider the co-signed loan. By co-signing a loan, you become legally responsibility for the debt should the person holding the loan default. What happens in a divorce if your ex, who holds the loan, fails to pay? Is there any way you can force your ex to live up to his or her financial responsibility? Unfortunately, there is not. (1)

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When contemplating divorce, one of the first issues to be handled, after custody, is the distribution of marital assets. What some people fail to do adequately, however, is address the issue of joint debt that has accumulated during their years together. Failure to take care of debt and credit issues can lead to credit rating nightmares for years to come.

People may fail to realize that a divorce decree does not change the commitments made to creditors. When you incur debt of any type – mortgages, loans, credit cards – you are entering into a legal contract to repay that debt in compliance with terms of the loan.(1) There are several ways to handle marital debt and save your credit rating.

It is possible to come to an agreement as to which partner is responsible for which debt after divorce and have those terms included as part of your divorce agreement. For instance, the spouse who keeps the house may assume mortgage payments, while the spouse who takes the family car assumes the car loan. Just know, however, that if those loans remain in joint names and the responsible party fails to make the payments, that failure will appear on both parties’ credit reports. (2) Online access to your accounts can help you see potential problems before they get out of hand.

By now, all year-end tax records have been received and people are busy preparing tax returns for filing by April 15. Earlier this year, changes were made to the tax code which could affect many people, especially those in the process of divorce.

On January 1 the American Taxpayer Relief Act (ATRA) was passed as a remedy to the “fiscal cliff” this county was facing, replacing the alternative solution, which included tax increases for middle-class Americans and widespread spending cuts. The ATRA, however, contains some provisions that could negatively impact those in the process of divorce. Two areas of most concern, according to a recent article on Forbes.com, are income changes and distribution of assets. (1)

When negotiating alimony payments, be aware that the ATRA increased the tax rate for those in the higher income brackets to 39.6% from 35%. The threshold for that bracket is taxable income in excess of $400,000 for a single filer. Alimony is considered taxable income so it is advisable to consider how any alimony award would affect your current tax situation before reaching agreement on these payments. In some cases, a lump sum settlement, which would be non-taxable for both parties, could be preferable to scheduled alimony payments. (1)

Newt Gingrich, Advance Directive Advocate (Photo credit: Mike Licht, NotionsCapital.com)

Although divorce can be a very emotional experience, keeping a clear head concerning certain practical matters can help to avoid additional heartache down the road. If, after reading the following, you need a Hunterdon County lawyer to assist you with any aspect of your divorce, contact the family law attorneys at The Rotolo Law Firm in Lebanon, N.J.

Last Will and Testament

ch-ch-ch-ch-changes (Photo credit: Heather Quintal)

Although its origins date back to a time when women had few individual rights, the custom of women taking their husbands’ names at marriage is still popular. (1) It can be a symbol of unity as a couple starts their married life together. If the marriage fails, however, it can be a painful reminder. Resuming one’s maiden name following divorce is a common and relatively simple practice, but it is important to do it correctly in order to avoid difficulties down the road. If, after reading the following, you need the assistance of a Hunterdon County lawyer with a name change or any other aspect of divorce, contact the family law attorneys at The Rotolo Law Firm of Lebanon, N.J.

The process for changing your name is subject to both federal and individual state laws and, as such, can vary from state to state. Familiarizing yourself with the local laws can help simplify the process. (2)

Tax (Photo credit: 401K 2012)

When a couple faces divorce, the IRS and taxes are probably the last things on their mind. Divorce, however, carries tax implications that, if ignored, could cost you plenty down the line. The following covers a few basic facts you should be familiar with regarding taxes and your divorce. Because of the complicated nature of these areas, though, it is advisable to consult your financial advisor as well as a divorce attorney before taking actions. If you are a Hunterdon County resident seeking a divorce, the family law attorneys at The Rotolo Law Firm of Lebanon can be of assistance.

Essentially, there are two types of family support payments associated with divorce – alimony and child support – and both have different tax implications.