Recent Posts in Taxes Category

Should I Stay or Should I Go? Seven Things to Consider Before Moving Out of the Family Residence

The most volatile time during a divorce is usually right after the Petition for Dissolution of Marriage has been filed. It is at this moment when feelings of fear of the future surface, accusations fly, verbal attacks mount, and before you know it people end up saying and doing things they later regret. Common sense tells us the best solution during this difficult time is for one of the parties to ...

Estate Planning in 2017 and Beyond

By Alexandra Smyser We all know that the new president has made sweeping changes in just his first two weeks in office. Republicans control the WH and both houses of congress for only the second time in modern history. I have had several jittery clients reach out to ask what kind of changes might be on the horizon for estate tax and gift tax. From the information we have been given from the new ...

Estate Planning for Tax-Deferred Investments

By Alexandra Smyser​ Next to the family home, IRAs often represent the bulk of a middle-class family’s wealth. It is no surprise that clients want to preserve balances in their retirement accounts for their families. Ironically, due to federal regulations, IRAs are some of the most difficult assets to plan for, so it’s incumbent on us to advise our clients on the various planning methods. If a ...

How a Pasadena Divorce Affects Your Tax Liability

One often overlooked aspect of filing for divorce in Pasadena is the effect ending your marriage has on your tax liability. As tax season approaches, it's time to consider how you'll prepare to file your return. The most important thing to remember about your tax return is that you still have the option of preparing a joint return if you are separated, but not yet legally divorced. Your marital ...

The IRS Isn't Interested in the Terms of Your Divorce

Financial problems can create tension in an already struggling marriage, so it’s not surprising that many couples filing for divorce in Pasadena find themselves wondering who is responsible for paying any overdue taxes that they may owe. Although you can negotiate a divorce settlement that assigns a 50/50 joint responsibility for overdue taxes or one that assigns that debt entirely to your former ...

TIGTA Report Reveals $1.7 Billion Alimony Tax Gap

Divorce law in Pasadena views alimony payments as an important source of income for lower earning spouses after a divorce. Alimony payments allow the lower earning spouse the flexibility needed to establish an independent financial life by going back to school for additional training, opening a new business, or simply returning to the workforce after having raised children. A new report by the ...

Alimony or Child Support? The IRS is Watching

When discussing your Pasadena divorce settlement, your attorney is likely to mention that alimony and child support payments are treated differently under the law. Child support is not taxable income for the recipient, nor is it a tax deduction for the person making the payments. Alimony, however, is both taxable income for the recipient and a tax deduction for the person making the payments. ...

How Do the New Tax Laws Impact Your Divorce Settlement?

Divorce attorneys in Pasadena stress to clients that it's always important to consider the tax implications of a divorce settlement. Accepting a settlement that results in an increase in taxes lowers the overall amount of money you have to begin your post-divorce life. The American Taxpayer Relief Act (ATRA) was passed by Congress and went into effect on January 1, 2013. It was intended to prevent ...

Managing Your Post-Divorce Finances

For many people, the biggest problem with filing for divorce in Pasadena is that they have the same income and two households to support. Without careful budgeting, this means it's easy to find yourself deeply in debt. When you're negotiating your divorce settlement, it's crucial to have an accurate idea of how much money you're spending. Keep track of receipts for every expense, even small things ...

How Much Child Support Is "Too Much?"

According to Pasadena family law lawyers , it's a common misconception that child support is only supposed to cover a child's basic needs. The courts have consistently upheld the belief that both parents have a financial responsibility to their child after a divorce. However, what financial responsibility means is dependent upon the income of the parents. For parents with low incomes, support ...

What Is a Certified Divorce Financial Analyst?

Obviously, a good Pasadena divorce lawyer is a necessity when you are ready to legally end your marriage. But there are a few other professionals who might be of use during this time in your life. One of these is a Certified Divorce Financial Analyst (CDFA). A CDFA is a financial planner who can help you evaluate both the short term and long term impact of any proposed divorce settlement. He or ...

What Is Family Law?

If you're considering filing for divorce, you might be wondering if you need the services of a Pasadena family law firm . Many divorce attorneys advertise themselves as family law lawyers. Family law is an area of practice that involves issues relating to the family structure. This includes everything from drafting a prenuptial agreement to preparing a divorce settlement. Family law can involve ...

17 Years Later, Divorcee Seeks to Nullify Divorce

If you're seeking divorce advice in Pasadena , undoubtedly you've been told to act quickly and carefully so you can get on with your life. Jo-Ann DerManouelian of Rhode Island apparently never received that advice. DerManouelian is digging up her 17-year-old divorce; she's asked the court to throw out the 1994 divorce judgment. Now state officials have fired back, saying that DerManouelian's ...