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Bloomfield Hills Michigan Family Law Blog

Are your digital assets prepared for divorce?

Digital assets are a part of our everyday life. These assets can range from social media sites to online banking accounts. Whether the account provides a fairly innocuous financial benefit or is a sizable asset, it is important to account for our digital belongings when navigating a divorce.

How do we account for digital assets during divorce?

Divorce terms may be revisited if hidden assets surface

Most anyone in the high-income bracket isn't there because they are lucky. They tend to know what it takes to maximize revenue potential and minimize financial liabilities. In some cases, this might mean following strategies to hide assets from public view.

In the context of divorce, hiding assets is not an acceptable practice. Yet, it happens. Trust might have been a feature of a couple's relationship at one point, but it can wither under the pressure of marital dissolution. If that has happened in your case or trust was misplaced to begin with, it's entirely possible that assets may have been squirreled away over a long period of time.

Getting divorced and don't know what to do with your timeshare?

You have many things to consider as you file for divorce. You may need to put child custody arrangements and support agreements in place. And like most couples, you and your soon-to-be ex must also make choices about how you will divide your property.

As you work to determine the full extent of your marital assets, you likely wonder what you will be entitled to. Perhaps you would like to keep the home in which you have raised your family. But do you know what happens to your timeshare when you divorce?

Divorce: Does timing matter?

Whether initiating or not, those who are in the midst of a divorce likely have many questions. One question to take into consideration: does the timing of my divorce matter?

In short, the answer is yes — when you get divorced matters. More specifically, the date you finalize the divorce matters. The Internal Revenue Service (IRS) will treat a couple as married or unmarried based on their status December 31. If their divorce is finalized the last week of the year, they are considered unmarried for the entire year for tax purposes. If not, the IRS considers the two married. In this case, the two can choose either to file joint or separate tax returns.

Spousal support and divorce in 2019

There has been a change to the United States tax system with the implementation of the Tax Cuts and Jobs Act (TCJA). This law resulted in major tax reform. The TCJA essentially doubled the standardized deduction rate and gave business owners new rules to follow when filing returns.

Another area impacted by changes to tax law: divorce. The TCJA impacted divorce in many ways, but the most notable change involves spousal support.

Billions at stake: The importance of a prenup

Jeff Bezos, CEO of Amazon, is a business mogul. Those who aspire to become giants within the business world would benefit from lessons from this mastermind. Unfortunately, one of the most important lessons he may teach the public is through a mistake in his personal life.

The billionaire recently announced that he is divorcing his wife of over 20 years. Because he did not have a prenuptial agreement, state law may guide the division of assets for one of the richest estates in the country. What does this mean? In most cases, this likely means courts would split the marital assets in half. Since Bezos founded Amazon a year after the marriage, a court would likely consider the asset marital property. As such, it would be subject to division.

Thinking of Divorce in the New Year? You Are Not Alone.

Divorce rates spike after the holidays. This is true both after summer and winter breaks. Researchers point to many possible reasons for this increase. Perhaps the stress of the holidays with extended family and travel was the deciding factor. Others say couples may have wanted one last holiday or summer break as a family before moving forward with the divorce.

Whatever the reason for the timing, research supports the fact that divorce filings go up in the months immediately following winter and summer break. So those who currently find themselves putting away holiday decorations and considering moving forward with a divorce proceeding are not alone.

Divorce in 2019: One key change that could impact negotiations

Anyone considering a divorce or in the early phases of the divorce process will likely finalize the divorce in 2019. The date of the final divorce agreement is important as it will determine which tax laws apply. Those that finalize their divorce in 2019 will likely be subject to the new tax regime.  

What is different in 2019? The Tax Cuts and Jobs Act changed how the Internal Revenue Service (IRS) taxes alimony. This change impacts both the person paying and the person receiving alimony. In the past, the individual paying alimony could take advantage of a tax deduction.

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