A recent article suggested that not only do ultra-wealthy people have more money than the average person, they also face some unique issues pertaining to matters of family law. According to the report, a divorce can lead to the utter derailment of a wealthy couple’s family legacy plan. Apparently, even when both spouses wish to hold the best interest of their whole family at heart, complications and battles sometimes arise during divorce proceedings. Alabama residents may wish to take note of the information provided in the article if they, or someone they know, is currently considering filing for divorce. A panel comprised of professionals from various backgrounds and perspectives, including a psychologist and a family law specialist, recently agreed to be interviewed to discuss some of the issues that seem to be unique to super-wealthy spouses entering into divorce. One of the discussion participants said that it is crucial to set up … Continue reading Do wealthy people face unique issues in a divorce?
Tag Archives: assets
Tax issues sometimes affect division of assets in divorce
Alabama residents who are in the process of ending a marital union will want to take note of a recent article that discusses the various issues that may arise pertaining to different types of taxes. As couples negotiate the division of property and assets during the divorce process, they may have need of formulating agreements when it comes to issues involving federal tax refunds or liabilities with regard to jointly owned assets during the marriage. According to the article, seeking professional financial advice is advisable for those who wish to keep things as uncomplicated and amicable as possible. Various tax issues can surface during divorce proceedings. The article noted that family law courts do not typically render final orders with regard to things such as income tax because the IRS is typically not bound by state court rulings. Couples are advised to come to an agreement about whether to file jointly … Continue reading Tax issues sometimes affect division of assets in divorce →
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Attorney files contempt charge in Dunkel divorce case
Alabama readers may be aware of the divorce proceedings involving David Dunkel, the CEO of Kforce. After the divorce judgment was entered in another state, Dunkel’s former wife filed a contempt of court motion against him, alleging that he intentionally defied court orders relating to the case. Reportedly, the issue involves a court-mandated transfer of stock holdings concerning Kforce, a company with an estimated worth of $1.2 billion. The transfers would make her one of the top shareholders in the company, though both parties have apparently raised issues in the aftermath of the divorce rulings that will be addressed in an upcoming hearing. Apparently, the former husband transferred $8.2 million in stock to his former wife following a recent court order. She claims, however, that some $7 million worth of stock is still due her, prompting the contempt of court motion for willfully violating the court’s mandate. It is also claimed that … Continue reading Attorney files contempt charge in Dunkel divorce case →
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Alabama legislation leads to new divorce strategies
In a recent article, a financial adviser agreed with one of his clients who said that the best way to accrue savings for retirement is to remain married to one spouse and stay in one house. Regardless, statistics prove that some marriages end in divorce. Most couples who divorce have a desire to do so amicably, hopefully reaching a peaceable compromise when it comes to issues such as division of property or child custody and visitation. Recent Alabama legislation led to a new type of collaborative agreement aimed at reducing courtroom disputes and increasing peaceful resolutions to issues faced during proceedings. The Uniform Collaborative Law Act (UCLA) was passed in Alabama in Jan. 2014. Several prioritized components are included in the process, meant to help couples as they negotiate issues that are often emotionally charged or complicated. Part of the agreement contracted by participating couples and their legal representatives is … Continue reading Alabama legislation leads to new divorce strategies →
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There are ways to make divorce less costly
Divorce can be an emotional roller coaster for some. Not only can divorce be emotional, but it may also be expensive for some Alabama spouses. However, there are ways to make divorce less costly. One way to make divorce less costly is for spouses to rearrange their budgets since they are now in a one-income household. This consists of being honest with themselves on what they can afford on a monthly basis. Before fighting over assets, spouses may want to ask themselves if they are still able to make payments on certain items on one income alone. Another way for divorce to be less costly is to develop a new retirement plan, since assets are usually divided. Divorcing couples may want to change the beneficiaries who are listed on their retirement accounts to someone who is a family member. Lastly, the individuals may want to reconsider life insurance. Spouses usually need to … Continue reading There are ways to make divorce less costly →
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Property Division
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Property division and other divorce matters can cause conflict
Choosing to get a divorce may be one of the hardest decisions a person has to make in Alabama. However, the decision to divorce may be just as hard for the soon-to-be-ex, particularly when the two can’t agree on major matters such as property division or child custody. This can sometimes motivate the scorned lover to attempt to ruin the other person’s reputation, which may be easy to accomplish if the other individual hasn’t taken steps to protect himself or herself. According to a new study, only a little more than 30 percent of people asked their exes to immediately delete the other party’s personal information after splitting up. This personal content may include intimate photos and passwords, for example. In addition, one-fifth of respondents said they were apt to log in to a spouse’s account on Facebook once per month or more. Furthermore, 30 percent of those who participated … Continue reading Property division and other divorce matters can cause conflict →
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How Alabama spouses can be in the financial know in divorce
Divorce can come with many issues, including child custody and asset division, but one of the most common issues in divorce is over finances. It’s important for Alabama spouses to be aware of where they stand financially. There are ways that spouses can be financially savvy during divorce. One step spouses can take is to become knowledgeable about their financial standing of assets and debts. It’s important for spouses to know how many debts are owed and how much in funds they may have. This can help with creating a financial plan and budget as spouses enter in the single life. While reviewing finances, it’s also important for spouses to check on credit scores to see how many accounts are in their names. Since the divorce process entails exchanging financial information, another step spouses can take is to organize their financial records. Financial records may include joint and separate bank … Continue reading How Alabama spouses can be in the financial know in divorce →
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Property Division
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Alabama spouses should not hide assets in divorce
A couple with two children filed for divorce back in 1999. As more time went by, the battle between the two grew even more intense. Although dividing assets is an essential part of a divorce, it is not always cut and dry. Recently, a man was found to have hidden a substantial amount in assets. Alabama spouses may be able to learn from this couple’s experience. The man worked in real estate and as an investor for an electrical company. He threatened to file bankruptcy so that his wife could not get anything, even child support. Eventually, the man filed bankruptcy, but he did not disclose all of his assets. He reportedly put his assets in other individuals’ names in an attempt to cover up millions. To avoid increasing the amount paid in child support, he disguised incoming income through shell companies. After his bankruptcy wrongdoings were discovered, the man … Continue reading Alabama spouses should not hide assets in divorce →
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Retirement assets are subject to division during divorce
Many married couples plan ahead and count on assets set aside for the later years in life. However, amid all this planning, people might not count on divorce happening, which can have an impact on existing retirement assets. Knowing that retirement accounts aren’t immune from divorce proceedings, readers might be wondering: How will these assets be split? For the most part, this can be answered based on Alabama family law and when the assets in question were acquired. Alabama is an equitable division state, which means that marital assets are subject to be split in a way that is considered fair to each spouse. In some cases, this means that it might not be an even split. As such, retirement assets that are acquired during the course of a marriage are distributed in accord with state property division laws. Although this provides a very basic picture of how retirement accounts … Continue reading Retirement assets are subject to division during divorce →
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Unraveling the tax consequences of asset division
On a basic level, the goal of property division is to allow couples to split up the assets and property they acquired during the course of their marriage in order to provide a financial footing for post-divorce life. Of course, every couple enters divorce with a unique financial situation, but Alabama family law provides guidelines for how the assets included in divorce should be divided. Like most states, Alabama’s property division laws follow the principle of equitable division. Rather than a basic 50/50 division of marital assets, they are to be divided in a way that is fairest for both spouses. Even though equitable division seems like a way for both spouses to exit divorce with relative financial security, it should be noted that there may be tax consequences for handing over certain assets. In addition to a completed divorce settlement, a freshly divorced person could be handed a tax … Continue reading Unraveling the tax consequences of asset division →
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