Alimony is Not Always Tax Deductible

 Posted on June 06, 2014 in Child Custody

Under Section 215(a) of the Internal Revenue Service Code (IRC), the definition of spousal support for tax purposes is any cash payment which falls under the following:

• Spouses do not file joint income tax returns with each other;
• The divorce or written separation agreement does not state that the payment is not alimony;

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Importance of a Prenup When One Spouse Owns a Business

 Posted on May 26, 2014 in Prenuptial Agreements

Dividing up marital property and assets during a divorce can become difficult if one of the spouse's owns a business. That business may be one of the most important assets in the marital estate, especially if it is a successful one. Ideally, if the business was started before the marriage, the couple should draw up a prenuptial agreement that includes specific details regarding the business in the event of a divorce. However, if a prenuptial agreement is not drafted, a divorce could become increasingly difficult and potentially financially disastrous for one spouse or the other if the marriage fails.

For example, one couple going through a divorce, did not have a prenup, and thus put the husband's corporation at risk. Shareholders were left to wonder what would happen to the company. Said husband is currently worth $14.6 billion and is listed in Forbes Magazine as a global billionaire. He also owns 126 million shares of his company, giving him 70 percent ownership.

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Study Suggests Poor Economy Causes Cheating

 Posted on May 20, 2014 in Family Law

Various research suggests that when the economy is bad, the divorce rate falls. However, analysts have used data from one dating website to study whether or not there is a parallel between the economy and adultery. The website is called Ashley Madison, and unlike other dating websites that promise users the opportunity of finding a spouse, Ashley Madison markets their site for people seeking to have discreet extramarital affairs and engage in cheating.

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State Judge Rules Texas Same-Sex Marriage Ban Unconstitutional

 Posted on May 12, 2014 in Divorce

A Texas judge recently ruled that the state's same-sex marriage ban is unconstitutional. In February, a federal judge made the same ruling in a different case, striking down the state's marriage ban law.

The state case involves a couple who were married in Washington D.C. in 2010. One of the women became pregnant via artificial insemination. The baby was born in February 2013. Shortly after that, the couple split up and the biological mother sought to retain sole custody of the baby since the other woman is neither a biological or adoptive parent to the child. However, since Texas does not recognize same-sex marriages, there is no legal process in place to divorce.

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Considering Divorce? Could Discernment Counseling Work for You?

 Posted on May 05, 2014 in Divorce

Many couples on the brink of divorce will try marriage counseling as a last ditch effort to save the marriage. Quite often, one spouse wants to save the marriage (referred to as "leaning in") while the other spouse really wants out of the marriage (referred to as "leaning out"). The leaning out partner goes along with the marriage counseling but really does not try to work through their issues. Instead, the spouse points out that marriage counseling is not working and proceeds to file for a divorce.

However, a different type of marriage counseling has been developed by professors at the University of Minnesota and is being used in their Couples on the Brink Project. It is called "discernment counseling" and the goal is to help couples decide whether or not they should proceed with the divorce, try to save the marriage, or just separate for a while and then come back to decide. This is short-term counseling and not meant to replace traditional marriage counseling.

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Grounds for Disproportionate Award Divorce Settlements in Texas Divorces

 Posted on April 29, 2014 in Divorce

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Hunt County Woman Jailed for Contempt for Failing to Pay Divorce Settlement

 Posted on April 19, 2014 in Divorce

On April 25, 2013, Cherilyn Kinney, of Hunt County Texas was granted a divorce from her husband Robert Kinney. The final decree was May 22, 2013. As part of the divorce settlement, Cherilyn was to pay Robert $40,000. This amount was referred to as a debt in the settlement paperwork. The divorce judge gave her six months to pay the funds to Robert. The final due date was on November 22, 2013.

On November 23, 2013, because Cherilyn had failed to make the payment, Robert filed a contempt of court charge against her. A hearing was held on February 7, 2014, and the judge found Cherilyn in contempt. He ordered her held at the Hunt County jail until the entire $40,000 payment was made.

Her attorneys immediately filed a writ of habeas corpus with the Appeals Court in Dallas. Habeas corpus means a person is required to be brought before a judge or court who can decide if the person is being detained or held unlawfully or without just cause.

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How Valid is Your Prenuptial Agreement?

 Posted on April 14, 2014 in Prenuptial Agreements

It is rare that a prenuptial agreement is dismissed as invalid in divorce proceedings. But the recent case in New York where a the wife of a Long Island real estate mogul convinced the judge that the prenup she signed before their marriage was invalid is considered precedent setting in legal circles. Elizabeth Petrakis told the court that she was coerced to sign the agreement, only four days before the wedding, because her husband, Peter Petrakis, threatened to call off the wedding. Petrakis said she felt pressured because her father had already spent $40,000 in wedding costs.

In the agreement, Peter Petrakis would keep everything if they should divorce. Elizabeth Petrakis said her husband told her he would tear up the agreement as soon as they had a child. But two children later, he still did not tear it up. Elizabeth Petrakis has been arguing the validity of the agreement for seven years. Two prior Nassau County courts said that Peter Petrakis "fraudulently induced" Elizabeth to sign the agreement and those decisions were affirmed by a Brooklyn appellate court. So what are some of the grounds where a prenuptial agreement could be overturned?

1. Fraud is one reason why a judge could throw out an agreement. If one party fails to make full disclosure of all their assets, the court considers that fraud.

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Entrepreneurs and Divorce Part 1: Who Owns the Family Business?

 Posted on April 06, 2014 in Family Businesses

A big task during a divorce proceeding is determining what property is separate property (belonging to a particular spouse) and what property is marital property (to be divided in the divorce). Marital property is all property, other than separate property, acquired during the marriage until the date of separation. Marital property may include the family home, the family car, or a retirement account. Separate property is all property acquired by either spouse before the marriage, or all property acquired during the marriage by inheritance or gift. Separate property may include an inheritance from a parent or a cash gift from a friend.

 For some types of property, determining whether it is marital property or separate property can be challenging. One piece of property of particular concern to many divorcing couples is the family business.  Where the Family Business is Jointly Owned or Separately Owned In some instances, the court may determine that the family business is marital property (i.e., owned by both spouses). For example, a business that was started during the marriage, and with funds acquired during the marriage, may be considered marital property. During a divorce, the court will determine a value for the business and divide that value between the divorcing spouses. Where the court determines that a business is owned by just one of the divorcing spouses, the court will award the business to that divorcing spouse.  Where the Family Business is Part Separate Property and Part Marital Property Determining what happens to the family business can get complicated, however, when the business is a mixture of both separate property and marital property. For example, instances when a business may be part marital property and part separate property include:

• Income received from a business - Even if a business is considered the separate property of one of the spouses, income received from the business may be considered marital property, provided such income is attributable to the personal efforts of either spouse. For example, if both spouses work at the business producing income, that income will be considered marital property, even though the business is the separate property of just one of the spouses.

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Mother Ordered to Pay $195,000 in Child Custody Legal Fees

 Posted on April 02, 2014 in Child Custody

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