Louisville KY Family Law Blog

You may have ways to save your business from your divorce

When a business owner faces divorce, the business itself may qualify as marital property for the owner and his or her spouse to divide. Of course, most individuals who start a business or acquire one do not expect to place the entire enterprise in jeopardy if their marriage fails, but this is exactly what happens to thousands of business owners each year.

If you own a business and face divorce, you have a number of very difficult decisions ahead of you. If you and your spouse had the foresight to create a prenuptial agreement protecting the business, you should take a moment to appreciate how much potential frustration you saved yourself in the upcoming months. However, if you and your spouse did not create a prenuptial agreement, you may have to carefully consider your priorities as you build your divorce strategy.

How Social Security benefits are handled in a divorce

When a Kentucky marriage comes to an end, there is always a wide variety of issues for a couple to address. Often, one of the most complicated subjects to discuss involves finances. Particularly, if the couple getting a divorce is close to retirement age, Social Security comes into play. A recent expert discussed how these benefits are handled when a couple is no longer together.

Advisors note that Social Security divorce guidelines apply equally to men and women. Full retirement age of the ex-spouse is the basis for determining the spousal benefit, even if benefits started earlier for the ex-spouse. Someone must not be remarried, be at least age 62 and been previously married to the ex-spouse for at least 10 years. The ex-spouse should be collecting benefits or be eligible for them. If a person is not yet collecting benefits, the divorce must be final for 2 years or more before the spousal benefits can be received.

Changes to tax laws may result in more divorce filings in 2018

Divorced spouses in Kentucky and all across the county have been able to deduct alimony payments from their income taxes since the World War II era. In 1942, laws were enacted that allowed these deductions since it didn't seem fair for people to pay taxes on the alimony money that was not theirs to spend. However, proposed changes to the tax laws will see this deduction come to an end in 2019. Experts anticipate an increase in divorce negotiations for the remainder of 2018 to take advantage of the deduction before it is off the table.

The current tax provisions allow a deduction for the spouse paying alimony, while the recipient must pay taxes. The situation will be reversed in the new Tax Cuts and Jobs Act. Experts fear that divorce discussions may become more contentious as attempts are made to reach financial agreements.

Requests for prenups on the rise according to divorce lawyers

Prenuptial agreements are not traditionally considered to be one of the more romantic topics a Kentucky couple may discuss prior to their marriage. In fact, most people would view the subject negatively when in the throes of wedding planning. Yet more couples, especially millennials, are deciding to develop such agreements. According to experts, having a prenup in place can be extremely beneficial should a couple decide to pursue a divorce at some point. Since suggesting the need for a prenuptial agreement may create some tension, there are some tips to make broaching the subject more easily.

It is vital to raise the issue early in the relationship if having a prenup is important to someone. Matrimonial advisors acknowledge that the discussion will more than likely be a delicate one. However, if the communication about each person's goals and wishes can be open and honest, the process will be much smoother.

Social media posting may ease some divorce anxieties

So many people live a large part of their lives on their social media sites. It is there where they often share important events in their lives through the use of self portrait pictures known as selfies. This may even be the place where many Kentucky residents will share their own news of an impending divorce.

In 2004, the social media site, Facebook, was founded. It is a platform where users create an account tailored to their specific taste that allows them to connect with friends and family of their choosing. It also helped grow the trend of using selfies to illustrate the everyday events in one's life, including, recently, the use of a selfie to share the news of a divorce. Since divorce has become ever more common in society, it has lost a significant amount of the stigma that used to be attached to it.

There are ways to lessen the pain of the divorce process

Just as the decision to marry is often filled with emotions and expectations, the end of one can be just as emotional, though usually not in a beneficial way. Instead, the divorce process can be terribly taxing -- both emotionally and mentally. Because divorce is a distinct possibility for many Kentucky residents, it may be helpful to consider some suggestions that may reduce some of the turmoil and discomfort.

One of the first steps one can take is finding the right professionals to assist one throughout the process. Many people may turn to the internet to locate the highest ranked professionals in their geographic location. However, selecting the best fit for one's unique situation may pay off in the long run through personal attention to the needs of a particular individual. It may likewise be helpful to turn to skilled assistance rather than seeking only the input of friends and acquaintances who may not have full knowledge of the legal system.

When can you modify your child or spousal support order?

For many working spouses, the most frustrating aspect of a difficult divorce is the court-ordered support. Whether it's spousal support, also known as alimony, or child support, it can feel like a major financial burden. However, the state of Kentucky takes great pains to ensure that support is as fair as possible to everyone involved.

Support calculations are carefully determined using many considerations. The goal is to create an amount of support that is reasonable for the person paying and adequate to cover the financial needs of the dependent spouse or the minor children from the marriage. Sometimes, due to a change in your life situation, it may become necessary to revisit the terms of your divorce and consider modification of the support requirements ordered by the courts.

Valuation of business important step in property division

Those who have spent years in sweat equity, building a family business, are often left financially devastated in the aftermath of a divorce. One way to help protect a business is to ensure that it is properly evaluated before it comes time for a judge to rule on the property division aspect of a dissolution. It is likely that there are many Kentucky business owners who are worried about how an impending divorce will affect their venture going forward.

In order to ensure that a business is properly evaluated for its worth, it is usually necessary to retain the professional assistance of a specialized accountant. This is typically done through the efforts of an experienced divorce attorney who will contact an accountant who holds the required accreditation to offer a professional and thorough assessment of a family business. There is often a tendency for one or the other spouse involved in the divorce to be inclined to either over or undervalue these assets in an effort to either preserve as much as possible from the division of assets or to gain more than one is rightly owed. A professional evaluation can negate these attempts.

New law considers welfare of pets in divorce proceedings

Americans have a love affair with their pets. In many cases they treat them as fur-covered children, and now, in some divorce proceedings, the court will do the same. While there is no new law that will affect Kentucky residents at this time, the matter can create much debate when spouses are seeking a dissolution.

There are many serious concerns that need to be decided when a couple decides that it is in their best interest to seek a divorce. At the top of the list for the majority of parents is resolving child custody and support along with determining how to settle financial affairs. For those who have deep attachments to their pets, the possibility of losing them to the former spouse may be just as emotionally upsetting as losing custody of a child.

Congress passes new alimony tax revision

For approximately the past 75 years, divorced couples knew who would have to foot the bill for certain settlement agreement funds. Recently, though, Congress took the old tax law and reversed the person who now is expected to pay taxes on any alimony funds. The new law will go into effect in 2019 and may impact some Kentucky residents.

Until the revised tax plan was approved earlier in December, the current laws allowed for the spouse who was ordered to make alimony payments to deduct those payments from his or her tax filings. The spouse who was receiving these monies was required to report it as income and then pay the set percentage of taxes on it. Starting in 2019, that will be reversed, and the paying spouse will now also have to pay the taxes on that money.

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