Posted on January 12, 2018 in Divorce

When you decide to end your marriage by getting a divorce, the process of separating the various aspects of your life from your spouse and establishing yourself in your newly-single existence can be incredibly complicated. During this time, it is easy to neglect your finances, but doing everything you can to avoid debt will help you prepare for a secure financial foundation following your divorce.

Consider the following tips for understanding and managing your debt throughout the divorce process:

1. Get your credit report - It is important to understand your complete financial picture prior to your divorce, and obtaining a copy of your credit report is essential for doing so. This will help you identify all joint bank accounts and credit cards, as well as any outstanding debts.

2. Establish your own credit - Having a good credit score will be essential for obtaining loans, housing, and credit cards after your divorce. If you do not have an extensive individual credit history, you can establish one by obtaining a credit card in your name, making regular purchases, and paying off the balance on a monthly basis.

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 Posted on January 08, 2018 in Estate Planning

A person’s last will and testament is a vitally important document. In it, an individual can record their wishes regarding guardianship of children and the distribution of assets and property. However, there are instances in which the directives set forth in a will are not carried out. If a judge determines that the person signing the will was not of sound mind or was illegally influenced, the court can disregard the will. In these cases, decisions about property and guardianship can become incredibly complicated.

The Person Signing the Will is Not of Sound Mind

Often, as a person ages, they experience changes in cognitive capacity and memory. A will must be written and signed by a person of “sound mind” in order to be considered valid. A person has “testamentary capacity” if he or she fully understands the instructions set out in the will and agrees to them. It can be extremely difficult to prove that the testator was not mentally capable of understanding the will that they signed. Often the strongest evidence of testamentary capacity comes from the people who witnessed the will maker signing the will.

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 Posted on January 05, 2018 in Divorce

In December of 2017, Congress passed a landmark tax reform bill, and this update to the law made a number of significant changes that will affect nearly everyone in the United States. One key change that people should be aware of is how spousal maintenance (also known as alimony or spousal support) will be taxed.

Taxes on Spousal Support

Following divorce, the spouse who earns a higher income may be required to make maintenance payments to the lower-earning spouse, with the amount and duration of these payments being based on the income each spouse earns and the length of the marriage. Under current law, maintenance is tax-deductible for the paying spouse, and it is considered taxable income for the receiving spouse.

The tax reform bill has eliminated this deduction, and spousal support will now be treated the same as child support. This means that the paying spouse will not be able to deduct the amount of maintenance payments from his or her taxable income, and the payments will not be taxable for the payee. This change will apply to divorces which are commenced after December 31, 2018.

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 Posted on January 03, 2018 in Divorce

Substance abuse and addiction problems have touched most people’s lives one way or another. According to the National Survey on Drug Use and Health, 21.5 million teens and adults fought a substance use disorder in the United States in 2014. If you have ever been close to someone struggling with an addiction to drugs or alcohol, you know that the addiction can become all-consuming. Addicts can end up losing their jobs, resort to criminal activity, and be estranged from those who love them. Others with addiction issues seek professional help and are able to overcome the dependence. If you are married to someone with substance abuse issues, you know the toll those issues can take on the family.

Sometimes, a person who is addicted to drugs or alcohol becomes a danger to themselves or those in his or her household. How much should a spouse tolerate before they end the marriage? Every relationship is different and only the people in it know what is right for them. However, if you are married to an addict, there are a few things worth keeping in mind.

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 Posted on December 29, 2017 in Divorce

Every year, the divorce rate spikes in the month of January. This may be because divorcing parents want to keep their family together for one last holiday season before dissolving their marriage, or because the stress of the holidays pushed an unhappy marriage past the breaking point. But whatever the reason, the new year offers many people an opportunity to end a relationship that is not working and move on to a new stage of their life.

If you are considering divorce, have begun the divorce process, or are close to finalizing your divorce, here are a few resolutions you may want to consider making in the new year:

1. Get your finances in order - Divorce can cause a great deal of financial upheaval, and it is easy to lose track of your financial situation as attorney’s fees, moving expenses, and other costs pile up. As you adjust to a new living situation and surviving on a single income, the new year offers the chance to take stock of your income and expenses and prepare for how to maintain financial security after your divorce.

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 Posted on December 29, 2017 in Wills and Trusts

Most people are vaguely familiar with the concept of a last will and testament. However, there are actually many different documents that individuals use to distribute their assets and property upon their death. Wills and trusts sometimes get lumped together, but they serve different purposes. You may choose to use one, both, or neither based on your own personal circumstances and wishes.

A will is a document in which a person-the grantor-dictates what they want to happen to their property after they have passed away. He or she designates beneficiaries who then receive the assets and property upon the grantor’s death. A trust, by comparison, is a legal arrangement which allows a third party, called the trustee, to hold assets on behalf of a beneficiary or beneficiaries.

One significant difference between a will and a trust is that a will goes into effect only after the person who authored it, passes away whereas a trust can be effective immediately. Also, a will can only govern the distribution of property owned in the testator's sole name. Assets that pass directly to a beneficiary by contract or law, such as life insurance policies or joint tenancies with rights of survivorship, cannot be addressed by a will. Trusts, on the other hand, can manage and distribute any property the grantor chooses. Trusts can include life insurance policies and tenancy-in-common interests.

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 Posted on December 27, 2017 in Divorce

January is often a popular time for couples to separate or divorce because many people wait until after the holidays to start the process of splitting up. If you are considering divorcing your spouse, or you have already decided to, you probably know you have a long road ahead of you. There is no perfect way to divorce, but following experts’ advice may help save you and your spouse from unnecessary stress and conflict as you end your marriage. In the spirit of New Year’s resolutions, you may wish to:

Resolve to Communicate Better

Communication is one of the most important aspects to any relationship, and it does not become less important when a couple is no longer romantically involved. In order to undo a marriage, both members of it must be willing to talk to the other about the plans moving forward. Understandably, many individuals who are facing the end of their marriage are emotional. They may feel anger toward their spouse because of the hurtful things that happened during the marriage. Others who get divorced feel so upset that they shut down and stop communicating entirely. While these feelings are natural, refusing to cooperate with your spouse will only prolong the painful divorce process. Be willing to “be the bigger person” and work with your spouse, even if you resent him or her. You will be thankful that you did.

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 Posted on December 26, 2017 in Divorce

When a marriage is falling apart, every member of the family will be going through a great deal of emotional turmoil, and during this chaotic time, spouses will often be focused on their legal requirements, their finances, their changing living arrangements, and their own emotional needs. However, divorce can be especially hard on children, and parents should be aware of the potential negative effects that the end of their marriage can have on their children, including:

1. Emotional distress - Children of divorcing parents are likely to experience a great deal of anxiety and stress, especially when they are at a young age. Children often cannot fully understand why their lives are changing, and they may blame themselves for the end of their parents’ marriage. This emotional distress can lead to mood swings, irritability, depression, behavioral problems, and lower academic performance.

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 Posted on December 22, 2017 in Estate Planning

Our society is becoming more accepting of non-traditional families which means that many couples no longer feel pressured to get married before starting a life together. In fact, the number of live-in couples in the U.S. rose 25 percent from 2000 to 2010. If you are in a committed relationship with someone but you are not legally married, you may miss out on some of the legal protections and advantages provided through marriage, particularly those related to inheritances and estate planning. However, with some preparation, it is possible to create an accurate estate plan which reflects your wishes even if you are not married.

Create a Will

An important step for anyone is creating a last will and testament. It is especially crucial for unmarried couples to be deliberate about their wills. In order to ensure that your assets are passed to your significant other when you die, you must specifically name your partner as your beneficiary on all pensions, retirement accounts, and insurance policies. Some retirement accounts have rules against nonfamily beneficiaries, so double check with an estate planning attorney that you are able to legally name your partner on all necessary accounts. You may need to designate your significant other as your power of attorney and sign an advance care directive if you wish him or her to make decisions about health care and finances if you ever become unwell.

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 Posted on December 21, 2017 in Divorce

The holidays can be a stressful time for anyone, but this season is often especially difficult for people who have recently ended a long term relationship. Divorce will require major changes in a person’s life, upending their living situation, their finances, and their relationships with family and friends.

The emotional fallout of these changes and the loneliness that can come with being newly single can make it hard to cope during what is supposed to be a happy time of the year.

If you have recently divorced or are in the process of ending your marriage, these tips can help you get through the holiday season and begin the new year on the right foot:

1. Take some time for yourself - You may not feel up to taking part in holiday parties or gatherings, and it is okay to spend time on your own doing things you enjoy. Spending some quiet time at home while you read a book or watch a favorite movie or TV show is a great way to recharge and prepare for your life after your divorce.

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