Divorce

The Tax Implications of Your Divorce Decisions Are Often Misunderstood

October 2, 2017 | Kearns Rotolo Law

Filing for divorce in New Jersey is not complicated, but negotiating financial matters and property distribution issues in the divorce proceedings can be. As couples simultaneously close the door on one stage of their life and work toward building the next stage, they face a number of decisions that, if not handled correctly, could have significant consequences later. One of the biggest problems is couples often make these decisions based on emotional reactions rather than a full understanding of future implications. This is especially true when it comes to tax matters.

Tax planning should play a prominent role in the divorce process. Unfortunately, the tax implications of many divorce-related decisions are often misunderstood, if not overlooked, by emotionally wrought couples. A recent Forbes magazine article, “Taxes and Family Law: A Cheat Sheet of What You Need To Know” just scratches the surface of some of the things you should understand about taxes and their impact on your divorce process. After reading the article, it’s easy to understand why some people choose to add a tax professional to their divorce team.

The Court’s New Approach to the Question of Child Relocation

September 1, 2017 | Kearns Rotolo Law

A recent decision by the New Jersey Supreme Court has changed the way divorce courts now decide cases involving the relocation of children.

When considering divorce matters dealing with the custody of children, courts apply the “in the child’s best interest” standard. One exception to that has been the issue of moving children out of state against the other parent’s wishes. In those cases, the courts instead considered whether or not such a move would “cause harm” to the child. Until now, that is.

To learn how a recent ruling has changed the courts’ approach to this relocation issue read, “Court changes rules for divorced parent who want to leave N.J. with child.”

Make Sure Visitation Terms Are Clearly Stated

August 1, 2017 | Kearns Rotolo Law

It is generally believed children benefit from healthy relationships with both of their parents. That’s why in divorces, parents often are awarded joint custody. In this way, they continue to share in the decisions and responsibilities of raising their children, as well as in the physical custody of those children. Sometimes, however, courts will not award joint custody but instead will grant visitation rights to the non-custodial parent. That is unless that parent is deemed unfit and the courts believe such visits would not be in the child’s best interests.

If your divorce involves child visitation, you will want to avoid making mistakes that can lead to conflicts between you and your ex. One of the most important things to look for is that your final divorce decree contains the specific terms of the visitation agreement. To learn more about child visitation agreements and what to watch for, read “Child Visitation: It’s a Post-Divorce Fact of Life.”

Couples Who Divorce Late In Life Need to Protect Their Retirement Funds

July 1, 2017 | Kearns Rotolo Law

Gray divorce — the term given to couples age 50 and older who terminate their marriages — seems to be a growing trend.

The National Center for Health Statistics reported that in 2015 there were 10 divorced people for every 1,000 married people age 50 and older in the U.S., compared with 5 divorced people for every 1,000 married people in that age group in 1990. In the 65+ age group, the 2015 divorce rate was 6 for every 1,000 married persons, which was 3 times the 1990 rate. See “A costly ‘gray divorce’ can upend your retirement plans.”

While couples at this stage of life may not have to worry about such issues as child custody and support, divorce still takes an emotional toll and can endanger the couple’s retirement funds. If these funds are not properly divided and transferred, the couple risks tax consequences and possible penalties that can be devastating to their financial well-being. To learn about important steps to take to protect your retirement funds in the event of a gray divorce, read “5 Retirement Moves for Recently Divorced Couples.”

‘Till Death – or Politics – Do Us Part

June 1, 2017 | Kearns Rotolo Law

It has long been said that there are two topics of discussion to avoid if you want to maintain your relationships – religion and politics. Never has that been truer than now it seems, especially as it pertains to politics.

A recent study by the Virginia-based polling company, Wakefield Research, found that more couples are breaking up or heading to divorce court now than before due to political disagreements, specifically the election of Donald Trump as President. The study further pointed out that millennials are leading this trend. What does this say about our outlooks toward relationships and about our personalities in general? To find out, read “Married Couples Splitting Over Trump, Study Says.”

Facing a Divorce? Take Steps to Protect Yourself and Your Children

May 1, 2017 | Kearns Rotolo Law

Not all couples facing divorce do so amicably. Those who do usually fare better in the long-run; for those who don’t, however, a little preparation can help you avoid making serious mistakes both during the divorce process and in its aftermath.

Individuals involved in contentious divorces have found themselves left in dire financial straits, or have lost their homes or even their children because they failed to take precautions before proceeding with their divorce. A recent article on workingmother.com offered guidelines for preparing for divorce in order to protect both you and your children legally, financially, and physically. For details, read “How to Prepare Yourself and Your Children for a Divorce.”

Discussing Your Divorce on Social Media Often Backfires

April 3, 2017 | Kearns Rotolo Law

Many people today use social media to engage with family and friends, especially those they don’t get to see on a regular basis. These platforms provide an easy means for publicly sharing accomplishments and milestones, or passing along amusing or entertaining stories. Problems can arise, however, when people share information of a more private nature, like their divorce.

Divorce is an emotional process. It isn’t unusual for people going through divorce to seek support or sympathy, but using a public venue like social media to solicit that support can backfire in a big way. So can carelessly posting about your social activities during this process. To learn about the dangers of discussing your divorce in social media or posting about your social engagements without censorship, read “3 Social Media Mistakes Divorcing Couples Make Every Time.”

Saving Your Credit Rating Through Divorce

March 6, 2017 | Kearns Rotolo Law

Most people work hard to establish a good credit rating and even harder to maintain it once it is achieved. To have a good credit score jeopardized by the actions of another person would be devastating, but that’s what could happen if a husband and wife fail to discuss how to handle their debt in the event of a divorce.

Married couples commonly have shared accounts and financial obligations – mortgages, credit cards, and car loans, to name a few. The actions of one spouse can impact the credit rating of the other spouse not only during the marriage, but even after the couple separates. To learn how to protect your credit score in the midst of your divorce, read “What Happens to Your Credit When You Get Divorced?”

Take Steps to Avoid Losing the Family Business to Divorce

February 20, 2017 | Kearns Rotolo Law

Family-owned or controlled businesses are an important segment of the American economy. They account for about 90% of all American businesses, from large retailers like Walmart to small mom-and-pop shops, and produce more than half of the country’s gross domestic product. These businesses face all the same risks as publicly-owned businesses do – growing competition, changing technology, increasing costs of supplies, and the like. On top of that they face one more risk that their publicly-owned counterparts do not – divorce.

What happens to a business that is owned by a couple facing divorce depends largely on the steps the couple took, if any, to protect the business before their marital troubles began. Often the family has the majority of its assets tied up in the business, so one spouse buying the other out is not always an option. A recent MarketWatch article, “How to protect your family business during a divorce,” discusses different options available to couples who want to protect the businesses they worked so hard to create.

Fighting Over Fido: How Divorce Courts Decide the Fate of the Family Pet

February 6, 2017 | Kearns Rotolo Law

For an animal lover, a pet is more than a possession – it’s a member of the family, and a beloved one at that. But what happens to that “family member” when the family unit dissolves through divorce?

Most courts don’t share the sentiment that pets are family but rather view pets as property. However, this “property” is not as easy to distribute as say a house or a car. When it comes to deciding the post-divorce fate of a pet, courts consider the people involved rather than the animal: Who paid for the pet? Who cares for the pet? If children are involved, should the animal stay with them? That’s about to change, however, for one state.

Alaska recently became the first state to amend its divorce statutes so that courts are now required to consider the well-being of the animal in divorce cases (read, “In a first, Alaska divorce courts will now treat pets like children”). The amendments will even allow judges to award joint custody of a pet, if that arrangement is in best interest of the animal, and to include pets when issuing protective orders in cases of domestic violence. Time will tell if more states will follow this lead.