Westfield Mediation, LLC
  • Home
  • About us
  • Mediation Services
  • Resources
  • FAQ
  • Contact us
  • Blog

Mediation and Taxes

4/19/2014

0 Comments

 
It is tax season again which makes us think about all the tax issues that we raise in divorce mediation. In divorce mediation, we guide divorcing couples through child support, spousal support and division of assets, and tax issues arise during all of these discussions.  At Westfield Mediation, LLC, we always advise our clients to speak with their accountants during the divorce process to make sure that the clients understand the tax benefits and obligations in their agreements.

First, we explain that spousal support or alimony counts as income to the recipient, and is deductible by the payor. It is important to know this so that if you receive alimony, you are prepared to meet your tax obligations when they come due. It may also factor into your decision about whether or not to opt for alimony or instead select a greater share of the marital assets or a smaller share of the marital debts.

Taxes are also a concern in child support. The amount of child support may vary depending on which parent is claiming the children as dependents. Sometimes, parents alternate which one will be able to claim this deduction, and sometimes if they have multiple children, they divide the dependents between them.

Finally, the topic of taxes arises in the division of assets and liabilities. Some assets are taxable while others like retirement accounts are tax–deferred. In addition, if one party keeps the marital home, he or she may also get the tax benefits of home ownership. Sale of the marital home may lead to taxable income depending on how long they have owned the residence and how much money they earn from the sale.

In divorce mediation, we help couples ask and answer important financial questions. This way, they know that the agreement will work for them going forward.

For more information about Divorce Mediation, please call Randi M. Albert, JD or Michelle Weinberg, LMFT at Westfield Mediation, LLC at 908-913-0373 or email us at info@westfieldnjmediation.com. You can also visit our website www.westfieldnjmediation.com

0 Comments

What Is A Marital Asset?

4/4/2014

0 Comments

 
A lot of people feel stuck when it comes to dividing up the assets and monies during divorce.  One person may want no part of a risky stock portfolio and more than 50% from the sale of the marital home or vice-versa.  Another person may be okay sharing their investments, but not their pension. These issues can be negotiated between husband and wife in mediation.  Divorce mediation allows you to divide up your marital assets according to your needs post-divorce.  But what is a marital asset?  There are a few limited exceptions, but generally a marital asset is everything you and your spouse accumulate during the marriage, regardless of who did the accumulating.  Items in one person’s name, like a 401K, IRA, car, bonus money, stock purchase plan are marital assets, as are jointly owned investments such as a house or stock portfolio.

Mediation requires that each party is forthcoming about all of their marital assets.  Mediation works because people are honest about their finances and are able to put it all on the table to be divvied up.  If one spouse suspects the other spouse of hiding assets, he or she can hire a forensic accountant and attorney to find the missing money.  This can be time consuming, expensive and emotionally draining.   It also harms the post-divorce relationship because the trust building relationship that can be fostered during mediation is dissolved during litigation.  During litigation the missing monies will be found by the forensic accountant or the attorney through depositions, interrogatories and notices to produce documentation.   The hiding spouse is going to get caught anyway, so he or she might as well be honest from the start.  The pot of monies to divide up will be larger if the couple does  not have to spend  all that money on the lawyers and accountants to get to the same place, exposed. 

During divorce mediation you can amicably decide how to best meet your financial needs for your post-divorce future.  We often find that one person is more informed about the couple’s finances than the other.  Our job as a mediator is to help both parties understand their current financial picture, figure out their financial future, and help each party develop a feasible individual financial plan for that future. 

For more information about Divorce Mediation contact Randi M. Albert, JD, or Michelle Weinberg, LMFT, at Westfield Mediation, LLC, at 908.913.0373.  View our website at www.westfieldnjmediation.com or email us at info@westfieldnjmediation.com
0 Comments

    Authors

    Michelle Weinberg, M.Ed.,LMFT, is a Licensed Marriage and Family Therapist with many years of experience working with couples.

    Randi M. Albert, JD, is an attorney with experience in family law and public service.

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011

    Categories

    All
    Division Of Assets And Liabilities
    Divorce Attorney
    Divorce Mediation Process
    Money
    Parenting

    RSS Feed

Powered by Create your own unique website with customizable templates.