Divorce is emotional, and that emotion often interferes with the efficient distribution of the marital estate. Forensic accountants can help by locating all the assets and liabilities for marital division. These specialized certified public accountants can also investigate and analyze financial evidence and interview parties to help prevent fraud. In their tax advisor roles, CPAs helps the parties of the divorcing couples to divide the marital assets orderly and with the least tax burden. Any property that is acquired by the spouses during the marriage is generally marital property. Some retirement plans that qualify under the Employee Retirement Income Security Act are not subject to state laws that govern that govern the division of marital property. The courts determine on what is fair and equitable in 41 states for the division of assets. In the other 9 states, the separate property brought into a marriage will remain separate property as long as it remains segregated and identifiable. When there are possible tax liabilities associated with property division, CPAs can help soon-to-be ex-spouses determine how much they owe due to the divorce so they won’t be surprised come tax time. When many people get divorced, it’s easy to simply consider the immediate concerns, such as child custody, support, alimony and property division. However, the tax implications can be bigger than you might anticipate. By enlisting the help of a CPA, you will be able to determine your tax liability long before a tax bill will come due. An attorney who is

As you go to court to divide property during your divorce, it’s crucial that you ask all of the right questions and gather as much information as you can. A few questions to consider include the following: — Is there anything that could make the marriage invalid? This can happen in some cases, and it may mean you’re not obligated to split up your property the same way you would be if the marriage is valid. — What is the exact date that you and your spouse have separated? Property obtained after that date but before the divorce often doesn’t have to be divided. This way, if the divorce takes months to come together, you don’t have to split up your earnings from after the marriage is effectively over. — Do you know all of the property that you and your spouse own? You are both required to declare this to the court. Look over the records carefully, especially if you think that your spouse may try to hide assets from you. — Did you sign a prenup when you got married? This can have a drastic impact on property division, and you need to know exactly what it does. — Have you identified your debts? Remember that property division is about dividing debts as well as assets, and the way these debts are split may even have more of a long-lasting impact on your life than the division of property. To learn more about the divorce process in Massachusetts,

If you’re thinking about buying a new home and you’re also going through a divorce–perhaps the two are very closely related–it is often best to buy the house after you finalize the paperwork. You don’t have to, and there are ways to buy during the divorce, but there is one big reason why you should wait: Your ex may try to claim partial ownership of your new home. The issue here is that your money belongs to both of you, and it needs to be split up. If you take some of that money and buy the house outright or put a down payment on the mortgage, you’re using money that wasn’t fully yours. You’re also acquiring an asset that your spouse may feel is partially his or hers, as you technically own it while the two of you are married. Again, there are ways to get around this. You could have some written agreement with your spouse showing that the home is yours alone. You could rush to finalize the property division process so that you have your own money to use. Divorce can take time, and you can’t always put your life on hold. If you do want to buy, make sure you looking to all of the legal steps to take in Massachusetts to protect yourself. However, the very best option in most cases is to put your purchase on hold. Rent an apartment on a month-to-month basis and live that way for a few months, until

One of the biggest complaints that people in Massachusetts have after a divorce is that they simply didn’t know enough in advance. Everything can be very stressful if you feel blindsided all of the time, and you may end up with an agreement that does not give you what you’re after. Below are a few things you need to know beforehand: 1. The real value of your property. Remember that values for many things—like homes or cars—could have changed dramatically since you bought them. 2. What you want to do with your home. You and your spouse have to decide if you’ll get it, if he or she gets it, or if it’ll be sold so that the money can be split up. Knowing this in advance helps you plan for the future and find a place to live. 3. What your expenses will look like after the split. People often forget about things like utilities, which they’re used to splitting, and they’re shocked by the cost of paying them on their own. Remember that the overall cost goes up when you both pay separately. 4. How each decision plays into the next. For example, one woman hadn’t properly calculated what her expenses would look like, so she thought she had an affordable home. It turned out to be more than she could afford, though, and she was forced to sell and move after the split. Don’t go into a divorce without as much information as you can possibly gather.

If you are divorcing your spouse, one term that you might encounter is Qualified Domestic Relations Order. Known as QDROs, these are decrees, orders or judgments for retirement plans to pay spousal or child support, or convey marital property rights to another person. To be valid, a QDRO has to contain very specific details, including: — Names of the plan participant and every alternate payee, along with their mailing address — The percentage or amount of benefits to be paid from the participant’s plan to the alternate payee(s) There are restrictions on QDROs as well, as none may award benefits or amounts that are unavailable under the provisions of the participant’s plan. When QDRO distributions are paid to minors or other dependents, the plan participant is the one with the tax liability. There are also ways to rollover all or portions of distributions from QDROs to make them tax-free. Your family law attorney is a good source to bring you up to speed on all that you need to know about Qualified Domestic Relations Orders. Make sure that you investigate these possible sources of income during divorce negotiations, as a regular divorce judgment will not be sufficient for you to receive any funds or distributions from the pension plan of your soon-to-be ex-spouse. Some divorcing spouses in Salem who both have pensions will agree to waive the right to each other’s benefits. In other circumstances, such as when one spouse wants to retain the marital home, he or she will

Divorce can ruin a business if steps are not taken in advance to protect it. This is especially true when the co-founders of the business are the ones who are married. If you’re thinking about starting a company with your spouse, even if you feel like you’re never going to get divorced, it’s wise to have a plan in place. Most people ignore this because they don’t think they’ll get divorced, but it can sink the company if it happens. First off, some experts say its wise to make the agreement biased in favor of the business. Put in provisions that protect it even more than anyone’s personal interests. Next, set up buy and sell contracts in advance. One of the big issues is when one partner decides to leave and wants to sell of his or her ownership. Battles over how this should be done can take a long time, and an agreement that favors the seller may still harm the company. With the agreement in place in advance—and in favor of the company—you know what to expect. As you do all of this, be sure you have an accurate valuation done on the company. Never assume you know what it’s worth or let the other person decide. You both are going to be biased in this decision. A third party can give you a real-world valuation so that you know just what it’s worth and what a fair split looks like. Above all else, the key is to

When it comes to matters of property division, some people have it easier than others. But even if you believe your situation to be relatively simple, you may find that this is not the case as you make your way through the process and begin to review your many assets and debts. High net worth divorces, in particular, often lead to property division challenges. These need to be addressed without delay, ensuring that both parties understand what’s to happen and how it will impact them now and in the future. Here are some of the items that can make property division more complex: — Business ownership. — Real estate, including vacation homes. — Stock options and bonds. — Bank accounts and bonuses. — Retirement funds, including military pay, IRAs, and pensions among other types. — Antiques and collectibles, such as sports memorabilia and art. Before anything can be done, you and your spouse must have an accurate idea of your net worth. From there, it is easier to move forward with property division, although there are sure to be some “sticking points” along the way. Due to all the challenges valuing the items detailed above, it’s important to work side by side with an experienced law firm. We have helped many people work through property division, eventually ending up in a place they are comfortable. If you have any questions about property division, if you want to learn more about your situation, don’t hesitate to contact us. You can do