divorce lawyer

"Gray divorce" on the rise

A recent Pew Research Center article states that among U.S. adults ages 50 and older, the divorce rate has roughly doubled since the 1990s.

"The climbing divorce rate for adults ages 50 and older is linked in part to the aging of the Baby Boomers, who now make up the bulk of this age group. (As of 2015, Baby Boomers ranged in age from 51 to 69.)," according to Research Analyst, Renee Stepler, author of "Led by Baby Boomers, Divorce Rates Climb for America's 50+ Population" published March 9, 2017. 

Noted consequences of these "gray divorces" include becoming less financially secure than married and widowed adults, living alone at older ages, and having less satisfaction with social lives.

Source: http://www.pewresearch.org/fact-tank/2017/03/09/led-by-baby-boomers-divorce-rates-climb-for-americas-50-population/

 

Tax consequences of divorce: Alimony recipients & tax withholding

If you are awarded alimony as part of a divorce settlement or divorce final judgment, typically these monies are not subject to tax withholding. Therefore, there may be a resulting tax liability, which should be looked at by a tax advisor so you are fully aware and prepared to pay the liability. 

Also, due to your status changing from married to single, a tax advisor can adequately inform you of the benefits/or loss of benefits that occurs due to the change in filing status from married to individual or single.

A tax professional can assist you with filling out a new W-4, if necessary. This form instructs your employer to withhold federal income tax from your pay, which may differ post-divorce due to the new status of becoming single.

This blog post is not intended to provide readers with legal advice or tax advice in any way. This does not create a legal relationship or agreement between the reader and Bouchard Law, P.A. Bouchard Law, P.A. and its attorneys and staff do not claim to be experts in tax matters.  Bouchard Law, P.A. recommends consulting a tax professional to fully evaluate your tax implications and consequences of your particular position.

Tax consequences of divorce: Alimony

Alimony

For those who may be on the hook for on-going alimony payments, the word "alimony" may seem like a dirty word. However, many overlook the tax benefit of classifying payments as "alimony" versus something different, such as a property distribution.

Alimony is currently considered a taxable event meaning the recipient of the alimony is receiving taxable income. The alimony as paid is tax-deductible to the paying party, provided the settlement agreement does not state otherwise. This has been in the tax code since 1942.

But buyer beware! Tax changes are on the horizon. "Because of the new tax law, spouses paying alimony won’t be able to take a deduction while spouses receiving alimony will no longer have to report it as income..." reports the American Bar Association. Come 2019, alimony will no longer be a taxable event, which means no more tax deduction and more money flowing to the government due to the payers of alimony mostly being part of higher tax brackets.

Source: http://www.abajournal.com/news/article/new_tax_law_affects_alimony_could_spur_divorce_surge/

This blog post is not intended to provide readers with legal advice or tax advice in any way. This does not create a legal relationship or agreement between the reader and Bouchard Law, P.A. Bouchard Law, P.A. and its attorneys and staff do not claim to be experts in tax matters.  Bouchard Law, P.A. recommends consulting a tax professional to fully evaluate your tax implications and consequences of your particular position.

 

Too young to have a will? Not if you have kids.

Why have your will created now? There are many reasons why putting off estate planning until you are older is a bad idea. A will allows you to decide who gets what when you pass away. If you do not have a will, Florida law controls how your assets are distributed.

First and foremost, do you have kids? One function a simple will does is appoint a guardian for your kids. This is the person or people you intend to have care for your children if you pass away. Of course, if you are married or were previously married to the other parent, your spouse/ex-spouse would take the children. This is not always the case when the parents were never married.

Something also to consider is ensuring your kids will be taken care of. Check with your insurance provider to determine the cost of life insurance. Oftentimes, they will offer a low cost solution with monthly payments. You may designate your child and/or guardian as the beneficiary of the policy.