Welcome to Divorce Online. Divorce Online provides free articles and information on the financial, legal, psychological, real-estate, and other aspects of divorce. Additionally, you can turn to the Professional Referral section of Divorce Online to locate professional assistance near you.
In these troubled economic times, more and more people are turning to the protection of the U.S. Bankruptcy Code to resolve their debts and protect their property from foreclosure and repossession. The current global debt situation has risen to epic levels and an increasing number of people have sought the assistance of a bankruptcy attorney.
A local divorce attorney can help you understand your local divorce, custody, and child support laws and how they will affect your case. Fill out this convenient form to arrange a divorce case evaluation.
Entries in Financial Articles (11)
Back in 1995, I was approached by a therapist and a web designer, talking about the Internet. At that time, the Internet was almost unheard of. I had no idea what it was. The web designer was a man named John Thawley, who I work with to this day. The therapist was involved in the beginning but dropped off the face of the earth shortly after the website was launched. The website was called DivorceOnline.com. It was launched in 1995. In May of 1996, one of the most salient features of Divorce Online, entitled ‘He Said…She Said’, was launched. Divorce Online was a site with a goal of approaching divorce related issues legally, psychologically, and economically. There were many articles posted that are still relevant to this day.
We have been going through some of the worst economic times since The Great Depression. Numerous articles and newscasts have stated either that the housing market has bottomed out, or is still going down. In Michigan, we have the most depressed housing market in the United States. Other states, including Florida, California, and Arizona – just to name a few, are also going through some horrible economic times with regard to housing. In the past, before the economy bottomed out, homes were a family’s most valuable asset. In the last year and a half, that has changed substantially. In many of my divorce cases, the marital home is no longer an asset, but is heavily encumbered by debt. Many people purchased homes in the past ten years, expecting their home to become a piggy bank for future savings and retirement. Sadly, this is no longer the case. Many people were obtaining mortgages, followed by home equity loans and second mortgages, based upon numbers that no longer exist.
By John J. Stockdale
There are many complex tax questions that come up when a person divorces. It is impossible to address all of them without knowing the specific facts in each case. However, the simple answers to some general questions that almost always come up are listed below. Each situation is almost always more complicated, however, and you should always talk these matters over with your legal counsel and CPA to get the answer for your specific situation. These answers will only give you a general idea of what is going on.
Do I have to pay tax on money and property I receive in a divorce settlement? Is money I pay to my ex-spouse tax deductible?
If a payment qualifies as alimony under federal tax rules, the paying spouse deducts it and the receiving spouse reports it as income. If a payment is child support, it is not deductible by the payor and is not taxable income to the payee. If a payment is property settlement, there is no immediate tax consequence on the payment. If the payment isn't money, though, there may be a capital gains tax later when the property is sold. For example, the recipient of the home generally wouldn't pay tax on that right away but might have to pay tax when the house is later sold.
By Dessa Rosman Stone, Ph.D.
The financial consequences of divorce can often be as devastating as the emotional aspects. Noone entering a marital contract expects to get divorced. Therefore, the prospect of having to divide assets does not come under consideration until one is in the throes of the divorce process. With divorce statistics in this country hovering around the 50% mark, one out of every two married individuals are likely to be faced with the reality of divorce. Associated with this major life transition comes the inevitable dismantling of the financial merger forged over the life of the marriage. This is a particularly overwhelming and stressful task for the spouse who has had the least amount of involvement in the couple's financial planning and money management. One's ability to navigate this phase is further compromised by the liklihood that emotional trauma will cloud one's better judgment at a time where sound decisions are pivotal for financial survival.
By Anthony S. Latella