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If an interest in a small business or closely held business arises during the marriage, divorce will typically involve the distribution of the business to one spouse; a buy-out of the other’s interest is often necessary, as divorcing spouses cannot be expected to work together. However, where spouses will have little contact, the court may […]
What date is used to value marital property during equitable distribution of the marital estate? Because the value of some assets fluctuates from time to time, the valuation date of marital property is generally the time of distribution unless the property is no longer in existence. In some instances, a date of separation value may […]
Marital Property is a property interest acquired between the date of marriage and final separation of husband and wife. Property is marital regardless of whether it is held in joint or individual names if acquired during this time period, unless it was acquired in exchange for pre-marital, gift or inherited property (non-marital or separate property). […]
Spousal support, alimony pendente lite (support during the pendency of the divorce) and alimony payments are treated as taxable income to the payee and deductible to the payor for tax purposes. However, child support payments are neither taxable income to the payee, nor tax deductible to the payor. Court orders that include spousal support or […]
During high net worth divorces when well-compensated spouses divorce, one issue that may arise is how to deal with stock options held by a spouse as part of his or her benefit package. In Pennsylvania, such stock options are considered a form of deferred compensation designed to induce the employee/spouse to remain loyal to the […]
A party’s right to claim one’s child as a dependent on income tax returns depends upon the number of overnight custody periods the child spends with that parent. The parent with the greater number of overnight custody periods of the child during a tax year will be entitled to claim the child as a dependent […]
Pennsylvania Divorce Code: waiting period reduced to one year. The Pennsylvania General Assembly has passed a bill reducing the separation period for no-fault divorces from two years to one year. Under Section 3301(d) of the Divorce Code, when grounds of irretrievable breakdown of the marriage are established, the court may enter a divorce decree after […]
High Net Worth Individuals – Brad Pitt and Angelina Jolie – Enter Divorce As would be expected, much of the nation engaged in a feeding frenzy of gossip when it was recently announced that Brad Pitt and Angelina Jolie would be going, to the extent such is possible where children are involved, their separate ways. […]
In Pennsylvania, child support terminates when a child reaches the age of eighteen (18) and graduates from high school. In Pennsylvania, a parent does not have to pay college expenses for a child who is over 18 unless this has been agreed upon as part of a divorce case. For a family that separates prior […]
When spouses separate, the support of their children is considered a “priority obligation” under the law; if necessary, parents are expected to adjust their other expenditures in order to meet a child support obligation. As a parent, you will want to ensure that the amount of child support paid meets the needs of your children […]