By Linda J. Schaeffer and Elizabeth J. Garrett: The importance of carefully considering all factors with dependency deductions in divorce.
Divorce lawyers are generally familiar with the need for a QDRO to divide retirement plans. However, most think that QDROs can only be used to divide marital property; very few lawyers realize that QDROs can also be used to child and spousal support payments.
Retirement plans are considered marital assets, but even well seasoned attorneys are unaware that retirement plans can be tapped into to pay child support.
The calculation of income for child support purposes when one or both of the spouses have K-1 income from either a Partnership or S-Corporation may seem easy, but it is more complex than simply looking at Schedule K-1.
As the trial court judiciary has splintered on the matter, unable or unwilling to reach consensus, reaching predictability and consistency in child custody cases will require yet another trip to the Nevada Supreme Court – which is already in process.
Often overlooked is the use of a qualified domestic relations order (QDRO) to provide for the collection or security of child support. Also, another little known use of QDROs is to provide for a security interest in a participant’s qualified plan benefits to the non-participant spouse.
By Fraser Rideout: For as long as anyone can remember, life insurance in family situations has been motivated by love. Many times the volume and type of life insurance that is placed is as much a reflection of the love between these parents as it is the product of any formula.
Most family law attorneys are aware that a Qualified Medical Child Support Order (QMCSO) is used to secure health insurance coverage for children of divorcing parents, however we find that such orders are seldom used.
Divorcing couples continue to search for ways to maintain a standard of living that mirrors that which they enjoyed during their marriage. In order to do so, one must determine the lifestyle shared, or unshared, during their marriage.
The tax law is complicated, far too complicated in fact. As it is, we tend to see things as we want and not as they really are and remember things differently than we thought we saw them. Therefore, it is best to closely examine the assumptions inherent in our conclusions.