Previous posts regarding premarital agreements have discussed what a premarital agreement is, and why an engaged couple might want to sign one. Simply summarized, a premarital agreement is a good idea when both parties want to change the rules of law that would otherwise apply when their marriage terminates upon divorce or death. Continue reading →
By Carolyn J. Woodruff, JD, CPA, CVA
I’d like to bring a family member or friend to my meeting with my attorneys – can I do this? It is common for a North Carolina divorce client to want to bring a close friend or a close family member to a meeting with an attorney. Let’s face it, divorce (even the most amicable) are emotionally charged and devastating. Continue reading →
It’s that time of the year again, divorce season. The beginning of the year is the most popular time to file for divorce nationwide, not just here in Greensboro. Maybe it’s the end of the holiday season, the cold weather, being stuck in the house, or the kids being home for winter break. Whatever the reason, couples tend to file for divorce around this time of the year. In the process leading up to deciding to file for divorce, numerous factors are taken into consideration. One important factor likely taken into consideration is the cost of a divorce. Like anything else, divorce costs money and can be quite expensive. Divorce in the United States averages between $15,000 and $20,000. That is a hefty price tag to take on when ending a marriage. Continue reading →
North Carolina General Statutes Section 50-20(b) (4) defines divisible property. Divisible property covers certain values created post-separation.
A husband that continued to work in a dental practice post-separation did not create active appreciation. Husband did not change anything about his business methods to increase business. The growth between the date of separation and the date of trial is presumptively divisible, and husband did not rebut the presumption. The increase in the dental practice was passive and was therefore not divisible property. Romulus v. Romulus, 215 N.C. App. 495, 715 S.E.2d 308 (2011).
North Carolina alimony statutes and state case law make technicalities on the “death” element of alimony under federal tax law difficult, and one needs to exercise extreme care when drafting a private alimony agreement or contract in North Carolina.
Unlike many states, all alimony awards in North Carolina are not court orders. For legitimate strategic reasons, alimony awards are frequently private contracts in North Carolina. Generally, one cannot modify a contractual award of alimony, but court orders for alimony may be modifiable upon a change in circumstances. That scares many payors in North Carolina, so they negotiate for a private contract.
This article is part 4 of a series of articles regarding Innocent Spouse. This final blog on the basics of the current Innocent Spouse tax law will do two things: 1) summarize changes discussed in the first three articles; 2) give some practical guidance to attorneys, CPAs, and clients in North Carolina. Continue reading →
Part 3 of a 4-Part Series on Innocent Spouse Basics
(a) The Former Requirements: Rev. Proc. 2003-61, 2003‑32 I.R.B. 296, 2003 WL 21708514 (Aug. 11, 2003)
(b) The New Requirements: Rev. Proc. 2013-34, 2013‑43 I.R.B. 397, 2013 WL 5179241 (Oct. 21, 2013) Continue reading →
This article is part 2 of a 4 part series on Innocent Spouse basics. Be sure to read all four parts. Also, check this blog regularly for new information on innocent spouse law, as I will write about it frequently. I’ll keep you posted of new cases and developments from the IRS.
So, if you are in Asheboro or Reidsville, or wherever, this four part article should answer your questions about innocent spouse tax law and how it might affect your North Carolina divorce.
I have always said: “the Internal Revenue Service is the third party to the North Carolina Divorce”. It is, therefore, incumbent upon parties to a divorce, their counsel, and their CPAs in North Carolina to understand the Innocent Spouse rules of the Internal Revenue Code, particularly if there are tax issues outstanding. Further, understanding innocent spouse can many times help with an otherwise devastating tax situation.
This article will be in four parts, so be sure to read all four parts. Also, check this blog regularly for updates on innocent spouse law as I will write about it frequently. I’ll keep you advised of new cases and new rulings from the IRS.
North Carolina Divorce Lawyers Blog