If more than one IRA is rolled over in a 12-month time period, that could create a taxable event. In other words, if a spouse rolls over an account in August of 2014, and then in July of 2015 pursuant to a divorce rolls over another IRA account, the second rollover could be treated as a taxable event subjecting that spouse to ordinary income taxes. The lesson is to be careful in doing IRA rollovers and time the rollovers to occur at least one year apart. … [Read more...] about IRA Rollover Trap (in Divorce Cases)
Practicing in Northern Virginia requires our firm to stay on top of the various distinctions in the laws and to have access to excellent lawyers in Maryland and the District of Columbia, if necessary. Sometimes there is an opportunity to pick the jurisdiction and take advantage of a more favorable law for our client. … [Read more...] about Picking Your Jurisdiction Re: State Laws Dealing with Divorce
You are at the courthouse steps ready to go to trial. There is $2 million in assets. The other side agrees to give you $900,000 in assets to settle the case, which is less than half. You have done your homework in advance and you know that most of the assets have significant tax implications and that the after-tax value of the assets is really only a $1.5 million. Although the $900,000 sounds like a low offer, if that is received in cash, it is an excellent deal for your client. You enter into a stipulation saying that the other side will pay you $900,000 in cash. You win. … [Read more...] about Think Taxes Before Settling Your Divorce
There are many ways to value stock options including the “Black-Scholes” method and other methods. Sometimes experts are necessary to establish these values. When you see stock options, take a careful look. Even though they may have no current value, make sure you include them in your evaluation of the marital estate. Make sure you are not missing a potential asset. … [Read more...] about Don’t Forget About Stock Options During A Divorce
Virginia and most jurisdictions in the United States will recognize a foreign divorce so long as appropriate due process requirements have been satisfied. There has to be proper notice to the other spouse and an opportunity to be heard. There also has to be proper jurisdiction established in that foreign country. … [Read more...] about Foreign Divorces – Be Careful!