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High Asset Divorce Archives

Money moves to make in divorce

New Jersey couples who are planning on divorcing soon may have incentive to finalize them before 2019 begins. This is because a change to the tax treatment of alimony will soon take effect. For divorces that are finalized on or after Jan. 1, 2019, alimony is no longer income to the recipient, nor is it a tax deduction for the person making the payment.

Tax reform could have significant divorce effects

People in New Jersey who are planning to divorce may be concerned about the tax implications of ending a marriage. The Tax Cuts and Jobs Act passed Congress and was signed into law in December 2017, but one of its most wide-ranging effects on divorce will go into effect with the new year in 2019. This aspect of the law changes the way that alimony is treated under the tax code, reversing the treatment of spousal support payments for the past 80 years.

How people can make financial preparations for divorce

People in New Jersey who are considering divorce can take a number of steps to prepare financially. The first is to get all financial documents together and put them somewhere safe. This could be with family, friends or in a safe deposit box.

Social Security and divorce

When New Jersey couples get a divorce, if they have been married for at least 10 years, one person might be able to draw on the other person's earnings record for Social Security payments after retirement. The payments can actually start when the people are 62 although the benefits will be higher if they wait until the full retirement age of 67.

Retirement can face an impact from divorce

The end of a marriage can be an emotionally and logistically difficult time for spouses in New Jersey. More than that, however, it can also be a particularly challenging time for figuring out how to handle financial pressures. This can be of concern to people who choose to divorce later in life, especially as the divorce rates have risen for Americans over 40 and doubled for couples over 50 years old.

What a spouse's unusual financial moves might mean

Some New Jersey residents may be alerted to the possibility that their spouse is planning to file for divorce by that person's financial actions. For example, one man's wife suddenly decided to put a significant amount of money into a certificate of deposit that only had her name on it. This was money the couple had made on the sale of their home. In addition to the $90,000 from the home, the woman added a $40,000 payout she received after a job loss. The man asked his wife to either add his name to the account or return the amount to their joint accounts, but she did not.

Common errors to avoid in asset division

When New Jersey couples get a divorce, they need to be aware of the value and nature of their assets during property division. This means keeping in mind that tax penalties and other considerations may make some assets worth less than their apparent value when compared to others.

Determining what a business is worth during divorce

If a New Jersey couple is getting a divorce and one or both of them owns a business, it will usually need to be divided along with other shared marital property. A skilled valuation analyst can determine the value of the business so this division can take place.

Aisha Tyler's amicable divorce settlement

New Jersey residents who are ending their marriage and have a lot of marital assets to divide might look to the case of Aisha Tyler's divorce settlement as a way to reach an agreement with an ex-spouse without court coercion. The television and movie personality reached a settlement agreement with her ex-husband that both found fair and just.