Since about the early part of 2018, it's been in the news that the federal government has changed the way alimony, also referred to as spousal support, gets treated for federal income tax purposes.
Some might think that family law attorneys in Phoenix, Arizona, who are handling a divorce or separation primarily work to make sure that their clients' interests in property are protected vis a vi the other party in the divorce.
As this blog has mentioned before, Arizona is a community property state. In the context of a divorce, this means that, generally speaking, marital property is split 50-50 between the spouses. Incidentally, even couples with no intention of splitting need to be aware of our community property laws.
When a couple is divorcing and going through a legal separation, they may find that they have a lot of emotions attached to the home they shared while happily married. But, like the couple's other property, the home will be subject to property division.
Many of our readers know that offshore accounts are investment tools, a lot like stocks, bonds, insurance policies and retirement plans. The distinctive feature of an offshore account is, as the name implies, the bank holding the account is in another country and therefore subject to the laws of that other country. This may create legal complications, but it also can give some important legal and financial advantages to a legitimate investor.
Thinking about taxes and how they will affect a divorce or separation is not just an exercise that the wealthiest residents of the Phoenix area should undertake. Indeed, as a previous post pointed out, any separated parents who have children, and, thus, the ability to take child-related tax benefits, need to think about this issue.
As this blog has discussed, part of the divorce or separation process in Arizona involves dividing up property. When doing so, one of the biggest if not the biggest issue involves asset valuation and division. It is an important issue because, without paying attention to it, a party to a divorce can end up getting an unfair deal that they may wind up just having to live with. Incidentally, understanding asset valuation is also important for happily married couples when they are selling something like a house, a car or even a piece of furniture.
In the event of a divorce or a legal separation, a Phoenix couple that happens to own a piece of unique artwork, as opposed to a commercially available reproduction, will face the difficult question of how much the art is actually worth. The answer to this question can affect property division and other court decisions. Incidentally, knowing how to value one's art can also be of benefit even to happily married couples who might need to know this information for business or tax reasons.
One topic that comes up in a divorce or legal separation in Arizona is property division. As a community property state, Arizona has certain rules that are designed to ensure that each spouse gets his or her fair share of the property that they worked together to obtain.