April 2015

Parenting time interference and the available remedies

One of the matters that is often resolved in a Massachusetts divorce case that involves children is the amount of parenting time each party will be entitled to. Even after an order has been entered, disagreements could arise between the parents, resulting in parenting time interference. This involves one parent interrupting the other’s time with the children, and the disruption may in some cases be considered a criminal offense. Parenting arrangements are not always formal, but having the court approve them helps the parents enforce their rights if a dispute arises. Interference with parenting time could occur indirectly or directly. Indirect parenting time interference may involve one parent disrupting the other parent’s communication with the children by refusing to let the children accept phone calls from the parent or preventing the other parent from becoming involved in school events or extracurricular activities. Other forms of indirect interference include one parent asking the kids to report on the other parent’s personal life, trying to persuade or force the children to refuse to visit with the other parent or belittling the other parent. Direct parenting time interference may also take several forms. One parent, for example, could take the children without permission to keep them from seeing the other parent. The parent may breach the court order and move to another state with the kids, refuse to return the children, or fail to drop them off at a scheduled visitation time. In some situations, one parent might try to prevent the other

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The effect of a divorce on retirement

At some point during their marriage, a Massachusetts couple may begin to plan for their retirement. However, there are cases where couples may decide to get a divorce, which could cause major problems for both parties if they are nearing the age of retirement or have already retired. While this can be a setback, there are several steps that ex-couples can take to ensure their retirement is not completely derailed. One piece of advice that is often given is for both parties to hire their own financial professional when they are contemplating ending their marriage. A financial adviser may assist with retirement details, future investments and taxes. Both parties should also review their existing retirement assets, and a financial professional may help a client understand how accounts may grow under certain scenarios. When Social Security retirement benefits are considered, many experts suggest that if possible people should put off beginning to draw them down until they reach the age of 70. Finally, making a new budget that takes a divorced person’s new financial limitations into account is extremely important. It is recommended that people track how they are spending their money so that they can better determine where to cut spending in order to save for retirement. Additionally, keeping up with retirement planning after the divorce has been finalized will help the person stay on track. In a high net-worth divorce, an attorney may help a client seek a fair share of the couple’s property. Retirement plans often are a

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Beneficiary designations and divorce in Massachusetts

After people divorce, most do not intend for any of their assets or property to pass to their former spouses. While people may remember to change their wills, they may wrongly believe doing so will automatically change the person to whom their life insurance and retirement accounts will go to. The beneficiary designations on such accounts and policies supersede any contrary information in a will, however. It is thus vitally important that people review their designated beneficiaries in a divorce. Intended account beneficiaries may not be changed while a divorce is pending. Prior to filing the divorce, people are able to change their beneficiaries. For certain types of retirement accounts, both spouses will have to sign the beneficiary change form, though. If people share a financial adviser, they should be aware that the adviser might inform the other spouse of a change in beneficiaries as well. If changes are not made prior to filing for divorce, people will have to wait until the divorce is final to make the changes. In some divorce cases, a spouse agrees to continue carrying life insurance to benefit the other spouse after the divorce. As courts will sometimes find that the life insurance should instead go to a different person, the former spouse for whom the policy was intended may be out of luck. Following the divorce, they should make certain their spouse reaffirms them as the intended beneficiary to prevent this from occurring. In a high-net-worth divorce, the division of property may be

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The federal income tax consequences of alimony

As tax season quickly approaches, Massachusetts residents who are either paying or receiving alimony need to be aware of how the IRS treats the payments. People who pay alimony are able to deduct the amounts, while those who receive the payments must report them as income on their tax returns. Not all payments are deductible. If a combined payment is made for alimony and child support, only the portion of the payment that is alimony is deductible. Child support payments cannot be deducted on a tax return and do not have to be reported as income. The alimony payments must also be made pursuant to a court order or separation agreement, as voluntary payments may not be deducted. The IRS does not allow people to deduct payments made to the other spouse that are that spouse’s share of the marital estate. If a person is ordered to make payments to a third party on their former spouse’s behalf, those amounts are deductible, however. Examples include court-ordered life insurance, medical insurance, rent, utilities and other such expenses. The spouse for whose benefit they payments are made must also report third-party payments made on their behalf as income. Spouses whose divorce cases involve the potential for an alimony order need to be aware of the tax treatment given them. Those who have questions about whether a particular payment will be counted as deductible or reportable alimony may want to speak with their family law attorney to make certain they comply with the

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Divorce and property division

Spouses preparing for divorce might benefit from understanding more about some of the factors that can dictate how real estate assets are allocated by a formal proceeding. The outcome of property division typically depends on the state laws governing the divorce. Many separated spouses struggle with determining how much each party is entitled to receive from the marital estate. State laws may dictate whether divorcing spouses must split the value of the home equitably, or if one party is entitled to keep the property in its entirety. Some spouses are successful in avoiding contentious disputes and lengthy proceedings by selling their property before filing for divorce. When a spouse is unable to sell a house before filing for divorce, it may be used against them as leverage in the negotiations or formal hearing. Dividing the property equitably is the primary point of contention for many divorcing couples. Often times, dividing the proceeds from the sale of the home is far easier than negotiating the rights to retain the property. Spouses may also benefit from recognizing the significance of additional costs that are attached to retaining the home, such as the commission for the real estate agent and capital gains tax. Some individuals make the mistake of letting their emotions dictate their decision making while undergoing the divorce process. The emotions often subside, but the consequences of those rash decisions may be everlasting. Divorce lawyers may be able to assist separated spouses prepare for property division. Legal counsel might be able

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