One of the most common assets with which we deal in a divorce, and one which has some of the most favorable tax treatments available (and at the same time one for which the tax treatments are so often misunderstood by non-tax experts), is the marital home. While as a general statement there are many unique items within our Tax Code, the marital home indeed has a special place, blessed with certain tax benefits that are simply nowhere else to be found in our Tax Code.
There are several things to look out for when dealing with hedge funds, including the limitations on your clients’ rights to redeem shares, accredited investor status, their valuation process, tax etc.
By Noah B. Rosenfarb: When nonqualified deferred compensation plans (“NQDC”) exist in a marital estate, they are often substantial components of the marital balance sheet. If your case includes an NQDC...
It is at this point a truism that retirement benefits, usually the most valuable asset of a marriage, are divisible upon divorce to at least the degree to which they were accrued during the marriage. This is particularly true of certain kinds of employment, such as the military, in which frequent moves are the norm and there is often less opportunity to accumulate large real estate equity.
Although the majority of estate plans created by practitioners will contemplate marriage between the settlor and a person of the opposite sex, life and the practice of law in the 21st century dictate that not all of those who seek the services of estate planning specialists and other estate and probate professionals will fit that mold.
Even with the “bubble talk” that pervades our current real estate market, in most cases the marital residence has been and will continue to be the largest family asset. When determining equitable distribution of assets, the home plays a very unique role for three distinct reasons.
When dividing pension plans in divorce, we generally use the time rule method, also known as the Brown formula (the time the employee worked under the plan during marriage, divided by the total time the employee worked under the plan).
The unthinkable happens -- parents are splitting; the family must deal with the emotions and trauma of one household becoming two, two incomes becoming one, and often the more frequent absence of either Mom or Dad.
Spouses will often make it challenging for opposing counsel and their valuation experts to do their jobs by responding to disclosure requests by playing the game “catch me if you can.”
In valuing marital property for purpose of equitable distribution in most jurisdictions, the definition of marital property is what is acquired during the marriage, from the date of the marriage to the time the marriage ended. In some states, defined benefit pensions are allocated in the same way, using the benefit accrued as of the date the marriage ended (cut-off date). This is called the “bright line” approach.