According to the Journal of Accountancy, the IRS has increased resources devoted to scrutinizing alimony. As is well known amongst divorcing individuals and financial professionals, the tax code allows the payor of alimony to deduct it from taxable income, while the recipient must include it in taxable income. So if Kevin pays Kate $30,000 of…
Divorce and Finances
The IRS thinks you are cheating on your alimony
According to the Journal of Accountancy, the IRS has increased resources devoted to scrutinizing alimony. As is well known amongst divorcing individuals and financial professionals, the tax code allows the payor of alimony to deduct it from taxable income, while the recipient must include it in taxable income. So if Kevin pays Kate $30,000 of…
Paying for Children’s College Costs After a Divorce
In a divorce, it is not uncommon for child-related issues to be disputed. Issues such as child custody, parenting time, and child support, can become very heated and contentious issues. However, there are other important issues related to children that can sometimes be overlooked or forgotten in a divorce. One example of this is paying…
Protecting Your Credit in a Divorce
It is not uncommon for married couples to have joint accounts, including joint credit cards. However, once married couples are involved in a divorce, they must decide how to apportion the credit card debt. At that time, each spouse should be looking to protect their credit as much as possible. In Massachusetts, each spouse’s credit…
Don’t let divorce wreck your finances
“The money you’d put away to fund retirement together now has to cover two separate retirements,” says New York City financial planner Dawn Brown. “This will be more expensive because it requires running two households.” Meanwhile, for many of the newly single, living costs rise relative to income, while discretionary spending remains the same —…
Divorce financial planning: 8 tips to get what you need in a divorce
What should you do if you are in the middle of a divorce but feel at the end of your rope? When you simply can’t take another day of nasty texts with your spouse or another day in mediation, it may seem like there is no end in sight. As a divorce financial adviser, I’ve…
Massachusetts Alimony Reform Act & Durational Limits
When the Massachusetts Alimony Reform Act went into effect in 2012, it provided for a payor spouse to file a Complaint for Modification to reduce or terminate his or her alimony obligation based upon durational limits, as further explained below. Rather than allowing spouses to file all at once in 2012, modification for only durational…
Get Divorced for $1500.00
One of the greatest benefits of mediation is the cost. Please read the below column from a mediation client of another firm. Our firm can get you divorced for $1500.00. COLUMN-How I got divorced for less than $1,500 in legal fees By Tim McLaughlin Jan 9 (Reuters) – When my wife and I decided to…
Massachusetts Alimony Reform Act: When Can I Modify My Obligation
Under the Massachusetts Alimony Reform Act, which became effective in March 2012, there are new standards and guidelines upon which a spouse may file for a modification of alimony. There are four types of alimony under the Massachusetts Alimony Reform Act: 1) General Term ; 2) Rehabilitative ; 3) Reimbursement ; and 4) Transitional. Based…
Massachusetts Alimony Reform and Cohabitation: What does is mean for me?
Under the new Massachusetts Alimony Reform Act, which became effective in March 2012, if a spouse who receives alimony begins to cohabitate with another person, then alimony may be modified or terminated under the new law. This is a departure from the previous Massachusetts alimony law, which did not allow for termination or modification based…
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