Amaral & Associates, P.C. - Divorce, Family Law

Posts Tagged divorce and finances

Do I Have To Give My Spouse Part Of My Business In Our Divorce?

asset division, business planning, divorce and assetsWhen spouses are going through a divorce, one thing that always must be addressed is property division. However, when one or both spouses own a business, or even have an interest in a business, property division can be much more complicated. A common question spouses ask is: Do I have to give my spouse part of my business in our divorce? In Massachusetts, the short answer is No, but the answer isn’t that simple.

 

Under the property division statute in Massachusetts, Massachusetts General Laws chapter 208, section 34, the Probate and Family Court must consider the following factors in dividing the marital estate:

 

length of the marriage, the conduct of the parties during the marriage, the age, health, station, occupation, amount and sources of income, vocational skills, employability, estate, liabilities and needs of each of the parties, the opportunity of each for future acquisition of capital assets and income, and the amount and duration of alimony, if any, awarded under sections 48 to 55, inclusive. In fixing the nature and value of the property … Read More »



Does My Spouse Have an Interest in My Business When We Divorce?

divorce and assets Divorce and business, divorce and business partnersIn a divorce, money can be one of the biggest issues spouses fight over. However, when one (or both) spouses own a business, this can be an even more complicated (and sometimes uglier) fight. A common question business owners ask when they are going through a divorce is whether their spouse has an interest in the business. The short answer is yes, but it’s not as straightforward as you think.

 

Under Massachusetts law, all assets owned by spouses, regardless of whether or not they are joint assets, are marital assets. This can include a family owned business, even if only one spouse has an interest in that business. That means the business is a marital asset that is subject to division in equitable distribution. However, that doesn’t necessarily mean the non-business owner spouse will end up owning the business or having a financial stake in the business through the divorce. Massachusetts General Laws chapter 208, section 34 outlines factors the Probate and Family Court must consider in the division of marital assets. … Read More »



Health Insurance Coverage After a Divorce

Health Insurance DivorceIt is not uncommon during a marriage for one spouse to be the primary policyholder of a medical insurance plan and the rest of the family to be covered under that one plan. Typically, the plan is offered through that spouse’s employer. However, when spouses file for divorce, the question arises as to how will the other spouse, and also the children, be covered by medical insurance.

 

In Massachusetts, there are laws that require the policyholder spouse to continue to provide coverage to the children, and also to the other spouse, so long as coverage to the other spouse is available. In the common situation where an insurance policy is provided through a group plan offered by the policyholder’s employer, then pursuant to Massachusetts General Laws chapter 175, Section 110I, and Massachusetts General Laws chapter 176G, Section 5A, the policyholder spouse must continue this coverage, unless there is what is known as a “triggering event.” A triggering event is something that would cause a person to no longer be eligible for coverage under a specific medical insurance policy. With … Read More »



5 Essential Tips for Financial Planning After Divorce

divorce financesDivorce is about severing ties and starting over, at the same time. Having a financial plan can help secure your future and give you peace of mind, but this process isn’t without its challenges.

Related: ‘I’m Getting Divorced, and My Spouse Owns Part of My Company’

“You have to reassess everything,” says chartered financial analyst Robert Stammers, director of investor education for the CFA Institute. “Everything you do is built on a set of future goals, and these change when you get divorced. Your future goals aren’t going to be the same; they’re no longer in connection with someone else.”

While untangling your marital finances, then, think about how to fund the divorce along with your new life.

As Laura Pilz, financial advisor at Merrill Lynch Wealth Management, says, “One of the fundamental financial planning rules is that oftentimes, when people get divorced, they think they’re entitled to the life they’ve been living. What ‘divorce’ means is that you’ll get a life that’s 50/50. You’re not guaranteed that you’ll maintain the lifestyle that you’ve become accustomed to.”

Separating emotions from financial decisions makes for smarter choices, too. “Marriage is about love, … Read More »



FAQ’s About Divorce in Massachusetts

Here are some common FAQ’s About Divorce in Massachusetts:

 

Q: Should I file first for divorce?

A: The answer to this question is largely a case-specific answer.

 

The determination of value of assets, which goes to the equitable division of marital assets pursuant to M.G.L. c. 208 §34, is determined from the date of marriage to the date the Defendant was served. Thus, if the plaintiff intends on acquiring substantial assets in the future, it could be beneficial to file for divorce prior to acquiring these assets.

 

Additionally, should the divorce case go to trial, the Plaintiff has the right to present their case first, along with the right of rebuttal after the Defendant has presented his/her side of the case. Being able to be the party to present his/her case first at trial can set the tone of the trial, and leave an impression on the judge.

 

However, divorce is also a very emotional and personal decision. If you believe that you are not emotionally ready to file for divorce, or that the marriage may still … Read More »



Financial Planning For and During a Divorce

What are the legal fees of divorce?A divorce brings about many changes in a person’s life. One of the most significant changes is the financial impact of a divorce. Spouses go from having a combined household with (usually) two separate incomes, to living apart, and supporting themselves on their own. If you are contemplating a divorce, or have already filed for divorce, there are different actions you can take to plan for your own financial future after a divorce.

 

Create a Budget:

Review your household expenses to see what your weekly/monthly expenses come out to. In addition to including the usual expenses (i.e. mortgage/rent, utilities, heat, cable TV, telephone, groceries, clothing, etc.), don’t forget to include other typical expenses, such as uninsured medical expenses, motor vehicle expenses, child care, vacation and entertainment, education costs for yourself and your children.

Once you have your budget, look at what your income is, and what it is likely to be at the end of the divorce. Don’t forget to factor in any alimony and/or child support that you may be paying or … Read More »



Financial Disclosure in a Divorce

What are the legal fees of divorce?When spouses are going through a divorce, a common concern is that their husband/wife will not fully disclose their assets. In Massachusetts, to protect against this issue, the Court issued Supplemental Probate Court Rule 410, in which both parties must exchange certain financial information within 45 days after the defendant was served the summons and complaint for divorce. Under Supplemental Probate Court Rule 410, spouses must exchange:

 

 

Federal and state income tax returns and schedules for the past three (3) years and any non-public, limited partnership and privately held corporate returns for any entity in which either party has an interest together with all supporting documentation for tax returns, including but not limited to W-2s, 1099s, 1098s, K-1s, Schedules C and Schedules E.

 

Statements for the past three (3) years for all bank accounts held in the name of either party individually or jointly, or in the name of another person for the benefit of either party, or held by either party for the benefit of the parties’ minor child(ren).

 

Read More »



Financial Planning For and During a Divorce

financial planning divorce

A divorce brings about many changes in a person’s life. One of the most significant changes is the financial impact of a divorce. Spouses go from having a combined household with (usually) two separate incomes, to living apart, and supporting themselves on their own. If you are contemplating a divorce, or have already filed for divorce, there are different actions you can take to plan for your own financial future after a divorce.

 

Create a Budget:

Review your household expenses to see what your weekly/monthly expenses come out to. In addition to including the usual expenses (i.e. mortgage/rent, utilities, heat, cable TV, telephone, groceries, clothing, etc.), don’t forget to include other typical expenses, such as uninsured medical expenses, motor vehicle expenses, child care, vacation and entertainment, education costs for yourself and your children.

Once you have your budget, look at what your income is, and what it is likely to be at the end of the divorce. Don’t forget to factor in any alimony and/or child support that you may be paying or receiving.

Based upon … Read More »



Rehabilitative, Transitional, and Reimbursement  Alimony in Massachusetts

Q: What are Reimbursement Alimony, Rehabilitative Alimony, and Transitional Alimony?

A: There are 4 types of alimony under Massachusetts law. The four types are:

General Term Alimony Rehabilitative Alimony Reimbursement Alimony Transitional Alimony Rehabilitative Alimony Q: What is Rehabilitative Alimony?

A: By the statute’s definition, Rehabilitative Alimony for a recipient spouse who is expected to become economically self-sufficient by a predicted time, such as, without limitation, reemployment; completion of job training; or receipt of a sum due from the payor spouse under a judgment.

Q: When is a spouse eligible to receive Rehabilitative Alimony?

A: Rehabilitative Alimony is available to all spouses, regardless of how long they have been married.

Q: When Does Rehabilitative Alimony End?

A: Rehabilitative Alimony ends upon the first of the following to occur:

upon the remarriage of the recipient spouse, the occurrence of a specific event in the future that is outlined in the court order the death of either spouse; After 5 years. Q: Can Rehabilitative Alimony last longer than 5 years?

A: Yes, a spouse can file a complaint for modification upon a showing of compelling circumstances in the event that:

unforeseen events prevent the recipient spouse from being self-supporting at the end … Read More »



Child Support, Alimony & Taxes

Child Support, Alimony & TaxesWhen going through a divorce, there are many financial issues that spouses must address. Some of these financial issues have tax consequences, and other financial issues do not. One area where taxes come into play is support. Under Massachusetts Law, there are two categories of support.

The first category is alimony, which is the periodic payment of support by one spouse to another spouse for that other spouse’s support. Under the federal tax code, and Massachusetts tax law, the alimony paid by the payor spouse is tax deductible for the payor spouse, but taxable to the recipient spouse. That means that the alimony received by the recipient spouse is considered income, and it must be reported on that spouse’s tax returns.

The other category of support is child support, which is support paid by one spouse to another spouse for the support of the child(ren) of the marriage. Unlike alimony, child support is not tax deductible for the payor spouse, or taxable to the recipient spouse. Child support is considered a tax neutral payment.

Read More »



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