With the implementation of the changes to the Federal Tax Code proffered by the Trump Administration, alimony payments post-December 31, 2018 will look a little different. Actually, a lot of different. In fact, the tax ramifications are gone.

Pre-December 31, 2018, alimony payments were taxable income to the recipient and deductible by the Payor. These tax ramifications were often vital tools in negotiating settlements in divorce matters where tax consequences were important to the parties and could be used as leverage in negotiation. While parties were free to agree to something other than alimony payments being taxable income to the recipient and deductible by the Payor, court ordered alimony awards were taxable income to the recipient and deductible by the Payor. Continue Reading Adios Alimony Tax Ramifications

This post is part of our ongoing series exploring the impact of technology on legal issues.  For an introduction to the series and a collection of the posts in the series, check out this post.

Bing. Bing. Bing. Bing.  That would be the sound of a text message showing up on my phone, watch, iPad, and computer all at the same time.  Don’t worry, I actually have the sound turned off on all but one of those devices, so I don’t drive myself and everyone around me insane.  I love the convenience of it.  No matter which device I am using, I can easily respond to a text or call without having to figure out where the heck I left my phone. And because my fiancé has sworn off all things Apple, I never have to worry about him seeing any surprises I’m planning.

But we’re not like most couples.  Most couples I know have the same type of phone and if it is an iPhone, they often share the same Apple ID.  Sure, this is convenient for a number of reasons.  But what happens when a couple decides to separate and forgets that their ex has access to all of their text messages?  Or can see their emails?  Sadly, I’ve had more than one client who discovered their spouse was unfaithful because the spouse forgot their devices were linked.  I’ve had clients who can’t figure out how their ex found out about someone they were talking to months after separating even though they were never seen together publicly and most communication was limited to texting.  If you shared an account or had your texts or calls going to another device that you do not have exclusive control over, you need to be mindful that your ex may still have access to what you assume are private calls or text messages. Continue Reading Electronic Devices and Divorce

On December 5, 2016, the law in Pennsylvania as it relates to the required length of separation in order to establish grounds for divorce reduced from two years to one year.  This reduction was highly contested for many years in our legislature and had been proposed on multiple occasions during the last decade.  While the pros and cons of the reduction in the length of separation were argued multiple times, the legislature finally determined that the reduction was appropriate.

The reduction of the two-year waiting period means that any spouses who physically or legally separate after December 5, 2016 now will only have to wait one year before they have established grounds for divorce unless otherwise established.  In no-fault divorces, there are only two ways to establish grounds for divorce.  The parties consent to the divorce, or complete a separation period which has now been shortened to one year.  Continue Reading Change to One Year Waiting Period for Divorce in PA Useful Now

Years of effort led by the Pennsylvania Collaborative Law community paid off on June 28, 2018, when Governor Wolf signed into law the Pennsylvania Collaborative Law Act.  The new law creates a uniform standard of procedure and practice in Pennsylvania for parties opting to proceed with collaborative divorces.  The purpose of the law is to make the legal process of collaborative divorce more uniform across Pennsylvania.

Collaborative Law is a method of dispute resolution which some divorcing parties opt to engage in, requiring both of them to sign a participation agreement to stay out of court.  The process  was created by Stuart Webb, a Minnesota attorney who sought a method that would permit divorcing parties to retain decision-making and control over the complex yet often emotional decisions regarding their divorce, including separation of assets, custody of their children and financial support. Continue Reading Collaborative Law – Another Option for Divorce in Pennsylvania

As income tax season is quickly ramping up, I am commonly asked by clients which parent can claim the children as dependents when they are separated from the other parent. And like any good lawyer, I often say it depends.

So what exactly does it depend on? According to the Internal Revenue Service, in order to claim a child as a dependent he or she must be a qualifying child. Assuming your children are qualifying children, only one exemption can be claimed per qualifying child. The IRS has determined that the “custodial parent” gets the to claim the exemption. The IRS has its own definition of “custodial parent.” According to their regulations, a custodial parent is the parent with whom the child lived for the greater number of overnights in the calendar year. Continue Reading Tax season – Who Gets to Claim the Kids?

Like most married couples, my husband and I argue occasionally.  Fortunately, we don’t have the knockdown, drag out, name calling kind of arguments, and we try not to argue in front of our kids.  However, we are not perfect parents, and at times, tempers will flare, patience will be lost, and we will have an argument in front of our kids.  Recently, one such argument occurred in front of my eight-year old son. Continue Reading Divorce: An Eight-Year Old’s Perspective

I read in a Fox News article a few weeks ago that Gwyneth Paltrow and her husband, Chris Martin, attended a party together, even though they have publicly announced their separation, which they have referred to as “conscious uncoupling”.  When the pair announced that they were “consciously uncoupling”, there seemed to be a lot of public questions (and skepticism) about what this is, and, if it exists, whether it can be accomplished successfully.  I, too, raised an eyebrow, wondering why it is headline news and why any of us care what happens between them in the privacy of their own relationship. In part, the story generated so much interest because of the use of the term uncoupling in place of divorce.

The term and idea of the “uncoupling” of married people is one that I have heard used in collaborative divorce cases.  In my experience, many people are drawn to collaborative law because they desire to end their marriage and resolve their economic issues in a process and a timeframe that they control together. Generally, they value what’s left of their relationship with their spouse, namely the joint parenting of children and often, that reason is their primary factor in selecting collaboratively-trained counsel to assist with the divorce. Collaboratively-trained professionals, particularly coaches and therapists, refer to the term “uncoupling”, as a way for both spouses to envision themselves moving forward with their lives, independent of each other.  Because the collaborative process is based on the parties’ development of their individual needs, concerns and interests, it necessarily requires them to think about their future and how their financial settlement and parenting plans will be structured to enable them to achieve that.

Continue Reading Can There Really be Such a Thing as “Conscious Uncoupling”

During my years of practice as a family law attorney, I have met with hundreds of clients who asked me the question, What do I do before I separate from my spouse? In the alternative, I have also been asked, What should I have done? For those clients who have asked me after the fact, close to 50% of them would have fared much better had they come to see me prior to separating from their spouse.

See an attorney first.  My first recommendation to someone who is considering separating from their spouse would be to see an attorney right away. There are many misconceptions about what happens in a divorce matter, and everyone seems to have a friend, relative or co-worker who has had some terrible experience, which most likely was innocently exaggerated for effect. That being said, in order to avoid the fear and speculation of inaccurate, anecdotal advice, it is always best to see an attorney first and learn your true rights and responsibilities in a divorce situation. 

In addition to simply talking to a lawyer before you separate from your spouse, you can also do the following things to save significant attorneys’ fees, delay in your divorce proceedings and quite frankly, some emotional distress. 

Make copies of all financial records, including, but not limited to:

  • five years of all personal and business tax returns, supporting schedules and documentation
  • current pay stubs
  • car titles and loan payoffs
  • mortgage statements for all real estate and copies of appraisals if they are less than three years old and settlement sheets for all real estate purchases and refinances
  • three months of bank statements for all checking, savings, money markets, mutual funds, retirement and investment accounts
  • life insurance premium notices and cash value statements
  • certificates of deposit, stocks and bonds, safe deposit entry logs and loan documentation
  • credit card statements for three months and any other financial documentation relating to any asset or debt

Obtaining copies of this information at the outset can save you significant attorneys’ fees by possibly avoiding formal discovery and also identifying the assets and debts contained within your marital estate preliminarily.

Take an inventory of your personal property.  You do not need to inventory every fork, spoon or towel, but try to account for all items of furniture and furnishings, as well as household items of value. A written list is helpful, although pictures and/or videotape is better, particularly if they are date-stamped to identify what items of personalty (personal property) existed at a particular time.

Understand your debt position.  You should know what obligations exist at or around separation, including the type of debt, the account number, the contact information for the lender, and most importantly, how the debt is titled. Just because an account is in your spouse’s name alone does not mean that you are not obligated to pay for it. Many credit cards that are individually titled include a spouse as an authorized user, which for many creditors is the same as being the account holder. It is important to know how an account is titled so that it may be dealt with post-separation with regard to limiting your liability.

Continue Reading What Should I Do Before I Separate From My Spouse?

It’s that day again, one of the most difficult holidays for those facing or going through the process of a divorce: Valentine’s Day.

A recent study has revealed a 40% increase in divorce filings around Valentine’s Day in the past two years. For those experiencing the season of upheaval of divorce, the holiday has nothing to do with roses and candy.   Most in this situation have gone beyond asking the question "Is my partner right for me?" and are now asking, "What am I going to do next?" Luckily, for some there is another question to be asked, one that can help alleviate some of the stress of the usual divorce process: is collaborative divorce the right choice for me?

Many divorce clients have described feeling trapped in their situations, as if they have lost control. Court dates and conflict become the new norm, and it seems that their lives and those of their children are at the mercy of the system.

The collaborative process can make some of the toughest parts of divorce a little easier. (See Collaborative Divorce: A Different Way to Divorce). The factors below will help determine if you and your spouse are good candidates for divorce using the collaborative model. If you find yourselves in any one or more of the following categories, you may want to consider moving forward collaboratively:

  • You wish to protect your children and your family from the harmful effects of a high-conflict dispute.
  • You and your spouse will be co-parenting together and want to establish the best co-parenting relationship possible for the future.
  • You value privacy in your personal affairs and do not want the details of your family restructuring to be available on the public court docket.
  • You and your spouse have a circle of friends and family in common that you both want to remain connected to.
  • You value control and autonomous decision-making and do not want to hand over decisions about restructuring your financial or child custody arrangements to a judge. 
  • You understand that conflict resolution involves achieving not only your goals, but finding a way to achieve the reasonable goals of the other person.

Continue Reading Is Collaborative Divorce Right for Me?

Do-it-yourself projects, like remodeling your bathroom or building a deck, can save money and provide a sense of accomplishment by doing something on your own that you would ordinarily hire another person to do. With any do-it-yourself project there are risks involved, such as increased cost if you have to hire a professional in the end or if your inexperience causes other damage. 

The internet has allowed individuals to perform some legal functions on their own. Many government websites, for example, offer forms with detailed instructions that can be very helpful for people seeking to help themselves with certain issues. There are also websites that offer forms and additional services for a fee. These websites are required to stop short of offering legal advice because they are not law firms, which is made very clear on LegalZoom’s website: "LegalZoom is not a law firm, and the employees of LegalZoom are not acting as your attorney….if you need legal advice for your specific problem, or if your specific problem is too complex to be addressed by our tools, you should consult a licensed attorney in your area." Because these sites are not law firms, they are also not subject to the rules that govern lawyers. This is why they are able to do things lawyers can’t do, such as use celebrity endorsements. 

Continue Reading Do-it-Yourself Legal