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Financial Aspects of Divorce in New Jersey CPE for CPA given at Acorn Finanacial on 12/7/10

Financial Aspects of Divorce in New Jersey CPE for CPA given at Acorn Finanacial on 12/7/10

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    Rl1  851321 V1 Acorn Power Point V2[1] Rl1 851321 V1 Acorn Power Point V2[1] Presentation Transcript

    • Financial Issues in Divorce in New Jersey
      December 7, 2010
      Presented by
      Eric S. Solotoff, Esq.
      Sandra C. Fava, Esq.
    • Child SupportGuidelines
      WORKS ON INCOME SHARES APPROACH – PERCENTAGE OF NET INCOME
      GUIDELINES ARE PRESUMPTIVE CHILD SUPPORT FOR ALL CASES WHERE COMBINED NET INCOME IS $187,200 OR LESS
      TAX TABLES IN GUIDELINES OR IRS CIRCULAR E - MAY NOT BE ACCURATE
    • Child SupportGuidelines - continued
      CREDIT GIVEN FOR OVERNIGHTS – USE A SHARED WORKSHEET WHEN MORE THAN 28% OF OVERNIGHTS (104)
      DON’T USE GUIDELINES FOR COLLEGE EXCEPT WHEN CHILD LIVES AT HOME
      COURT CAN DEVIATE BUT IT IS RARE
    • Child Support Guidelines continued
      GOES UP TO 6 KIDS
      AT HIGHEST LEVEL
      1 KID IS $453/WEEK
      2 KIDS IS $606
      3 KIDS IS $658
      4 KIDS IS $733
      5 KIDS IS $806
      6 KIDS IS $877
    • Child SupportOver Guidelines Cases
      IN OVER GUIDELINES CASE – GUIDELINES IS PRESUMPTIVE MINIMUM, THEN ADD TO IT BASED ON KIDS NEEDS
      COURT CANNOT EXTRAPOLATE FROM THE GUIDELINES
      MUST LOOK TO THE STATUTE
    • Child SupportStatute
      In determining the amount to be paid by a parent for support of the child and the period during which the duty of support is owed, the court in those cases not governed by court rule shall consider, but not be limited to, the following factors:
      (1) the needs of the child;
      (2) the standard of living and economic circumstances of each parent;
      (3) all sources of income and assets of each parent;
      (4) earning ability of each parent, including educational background, training, employment skills, work experience, custodial responsibility for children including the cost of providing child care and the length of time and cost of each parent to obtain training or experience for appropriate employment;
      (5) need and capacity of the child for education, including higher education;
      (6) age and health of the child and each parent;
      (7) income, assets and earning ability of the child;
      (8) responsibility of the parents for the court-ordered support of others;
      (9) reasonable debts and liabilities of each child and parent; and
      (10) any other factors the court may deem relevant.
    • Child Support Over Guidelines Cases continued
      CHILDREN ARE ENTITLED TO SHARE IN THEIR PARENTS INCREASED GOOD FORTUNE, EVEN IF IT EXCEEDS THE MARITAL LIFESTYLE
      IF THERE IS AN INCIDENTAL BENEFIT TO THE CUSTODIAL PARENT, THE COURT IS NOT OFFENDED – BUT NO WINDFALL TO OTHER PARENT OR CHILD
      MUST CREATE A REALISTIC BUDGET FOR KIDS OR WHAT THEY WOULD DO IF THEY HAD THE EXTRA SUPPORT
    • Child Support Over Guidelines Cases continued
      Judges must be vigilant in providing for “needs” consistent with lifestyle without overindulgence. As one court observed in dealing with high income support, “[p]ractitioners dealing with situations such as this sometimes refer to the ‘Three Pony Rule.’ That is, no child, no matter how wealthy the parents, needs to be provided more than three ponies.”
      From Isaacson v. Isaacson – citing a Kansas Case
    • Child Support Over Guidelines Cases continued
      While “some incidental benefit” is not offensive, “overreaching in the name of benefiting a child is.” “[A] custodial parent cannot[,] through the guise of the incidental benefits of child support[,] gain a benefit beyond that which is merely incidental to a benefit being conferred on the child.”
      From Strahan v. Strahan
    • Child Support Over Guidelines Cases continued
      This latter consideration involves a careful balancing of interests reflecting that a child's entitlement to share in a parent's good fortune does not deprive either parent of the right to participate in the development of an appropriate value system for a child. This is a critical tension that may develop between competing parents. Ultimately, the needs of a child in such circumstances also calls to the fore the best interests of a child.
      From Strahan v. Strahan
    • AlimonyStatutory Factors
      (1) the actual need and ability of the parties to pay;
      (2) the duration of the marriage;
      (3) the age, physical and emotional health of the parties;
      (4) the standard of living established in the marriage and the likelihood that each party can maintain a reasonably comparable standard of living;
      (5) the earning capacities, educational levels, vocational skills, and employability of the parties;
      (6) the length of absence from the job market of the party seeking maintenance;
      (7) the parental responsibilities for the children;
      (8) the time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;
    • AlimonyStatutory Factors - continued
      (9) the history of the financial or non-financial contributions to the marriage by each party including contributions to the care and education of the children and interruption of personal careers or educational opportunities;
      (10) the equitable distribution of property ordered and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair;
      (11) the income available to either party through investment of any assets held by that party;
      (12) the tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment; and
      (13) any other factors which the court may deem relevant.
      When a share of a retirement benefit is treated as an asset for purposes of equitable distribution, the court shall not consider income generated thereafter by that share for purposes of determining alimony.
    • Types of Alimony
      PERMANENT
      COURT MUST RULE PERMANENT OUT FIRST BEFORE CONSIDERING OTHER TYPES OF ALIMONY
      LIMITED DURATION
      REHABILITATIVE
      REIMBURSEMENT
    • AlimonyLifestyle
      IN 2000, A CASE CALLED CREWS v. CREWS ELEVATES LIFESTYLE TO A SUPER FACTOR
      “Some studies have concluded that the standard of living for a woman decreases 30% after a divorce, while men enjoy a 10% increase in living standards on average. See Peterson, A Revolution of the Economic Consequences of Divorce 61 Am. Soc. Rev. 528 (1996); Duncan & Hoffman, A Reconsideration of the Economic Consequences of Divorce, 22 Demography 485 (1985); Weiss, The Impact of Marital Dissolution on Income and Consumption in Single-Parent Households, 46 J. Marriage & Family 115 (1984). Those statistics are troubling.”
      IDENTIFYING THE MARITAL STANDARD OF LIVING AT THE TIME OF THE ORIGINAL DIVORCE DECREE IS CRITICAL TO ANY SUBSEQUENT ASSESSMENT OF CHANGED CIRCUMSTANCES WHEN AN ADJUSTMENT TO ALIMONY IS SOUGHT
      CREWS CAUSED AN UPROAR BECAUSE PEOPLE NEVER AGREED ON LIFESTYLE
      LEAD TO USE OF LIFESTYLE ANALYSES
    • AlimonyLifestyle – continued
      DOES LIFESTYLE = NET INCOME
      YOU EITHER SPEND IT OR SAVE IT
      WHAT IS A NON-RECURRING EXPENSE
      WHO GETS THE MONEY
      PROPER PREPARATION OF A CIS – CAPTURE ALL NET INCOME PLUS USE OF DEBT
      BATTLE OVER SAVINGS COMPONENT
    • AlimonyRule of Thumb
      THE DIRTY LITTLE SECRET IN THE FAMILY COURT
      PROVIDES A STARTING POINT FOR CONSIDERATION OF “THE BALL PARK”
      DIFFERENT IN NORTH AND SOUTH JERSEY
      IS IT FAIR IN CASES OF EXTRAORDINARY INCOME?
    • AlimonyMiscellaneous
      NON-TAXABLE ALIMONY IS AN OPTION
      WHY/WHEN DO YOU USE IT
      DON’T FORGET RECAPTURE
      NEW YORK NOW HAS A FORMULA
    • Equitable DistributionStatutory Factors
      The factors are similar to alimony factors:
      a. The duration of the marriage;
      b. The age and physical and emotional health of the parties;
      c. The income or property brought to the marriage by each party;
      d. The standard of living established during the marriage;
      e. Any written agreement made by the parties before or during the marriage concerning an arrangement of property distribution;
      f. The economic circumstances of each party at the time the division of property becomes effective;
      g. The income and earning capacity of each party, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children, and the time and expense necessary to acquire sufficient education or training to enable the party to become self-supporting at a standard of living reasonably comparable to that enjoyed during the marriage;
    • Equitable DistributionStatutory Factors – Continued
      h. The contribution by each party to the education, training or earning power of the other;
      i. The contribution of each party to the acquisition, dissipation, preservation, depreciation or appreciation in the amount or value of the marital property, as well as the contribution of a party as a homemaker;
      j. The tax consequences of the proposed distribution to each party;
      k. The present value of the property;
      l. The need of a parent who has physical custody of a child to own or occupy the marital residence and to use or own the household effects;
      m. The debts and liabilities of the parties;
      n. The need for creation, now or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse or children;
      o. The extent to which a party deferred achieving their career goals; and
      p. Any other factors which the court may deem relevant.
    • Equitable DistributionConsiderations
      MOST ASSETS GO 50-50
      WHY?
      IS IT WORTH THE FIGHT?
    • Equitable DistributionConsiderations - continued
      BUSINESSES USUALLY NOT 50-50
      WHY
      ONE REASON – HYPOTHETICAL TAX CONSEQUENCES NOT CONSIDERED TO REDUCE VALUE BUT COULD BE CONSIDERED FOR DETERMINING PERCENTAGE DISTRIBUTION – ORGLER CASE
      NOTION OF REWARDING PERSON FOR THEIR EFFORT
      IS THIS FAIR?
    • Equitable DistributionConsiderations - continued
      ORGLER SHOULD SEEMINGLY APPLY TO ALL ASSETS
      DOESN’T USUALLY HAPPEN IN REAL WORLD EXCEPT FOR OFFSETTING OF RETIREMENT ASSETS AGAINST ASSETS THAT ARE NOT TAX DEFERRED
      HYPOTHETICAL: BROKER’S COMMISSION NOT CONSIDERED - WADLOW
    • Equitable DistributionConsiderations - continued
      WHAT ASSETS ARE EXEMPT?
      COMMINGLING
      PREMARITAL
      GIFTS/INHERITANCES FROM THIRD PARTIES DURING MARRIAGE
      PARTY WHO CLAIMS EXEMPTION HAS BURDEN OF PROOF
      MARITAL HOME OFTEN TREATED DIFFERENTLY THOUGH IT SHOULD NOT BE
    • Equitable DistributionConsiderations - continued
      THE ENGAGEMENT RING – A CONDITIONAL GIFT
      CUT OFF DATE
      ACTIVE/PASSIVE
    • THE IMPACT OF FAMILY TRUSTS
      DO TRUSTS PROVIDE ADEQUATE PROTECTION?
      TANNEN CASE – WE SHALL SEE WHAT THE NJ SUPREME COURT SAYS
      CAN INCOME BE CONSIDERED?
      CAN A TRUST BE COMPELLED TO MAKE DISTRIBUTIONS?
    • CIS and Discovery
      Case Information Statement (CIS)
      CIS IS PROBABLY MOST IMPORTANT DOCUMENT IN A DIVORCE CASE
      CERTAIN FAMILY AND BIOGRAPHICAL INFO
      PROVIDE, UNDER OATH, YOUR INCOME IN MANY DIFFERENT WAYS
      LAST YEAR
      LAST 3 PAY PERIODS
      YEAR TO DATE – EARNED AND UNEARNED
      ASSETS AND LIABILITIES
    • CIS & Discovery - continued
      MOST IMPORTANT – ESPECIALLY FOR TEMPORARY SUPPORT AND ALIMONY – MONTHLY BUDGET
      GOAL – GET THE NET INCOME AND BUDGET TO MATCH
      IF THEY DON’T MATCH – WHY???
      IF SPENDING EXCEEDS INCOME, IS THERE DEBT,
      DEPLETION OF ASSETS OR OTHER REASON TO EXPLAIN IT
      IF BUDGET IS LESS THAN NET INCOME – SOMETHING IS
      WRONG
      BECAUSE THIS IS SO IMPORTANT, IT IS HELPFUL FOR AN ACCOUNTANT TO GET INVOLVED EARLY
      ESPECIALLY SO IN NY FOR NET WORTH STATEMENT
    • CIS & Discovery - continued
      TYPICAL DIVORCE DISCOVERY
      MANY METHODS
      INTERROGATORIES
      NOTICE TO PRODUCE
      DEPOSITIONS
      REQUESTS FOR ADMISSIONS
      FORMS OF TYPICAL INTERROGATORIES AND DOCUMENT REQUEST IN MATERIALS
      TYPICALLY SEEK 5 YEARS OF FINANCIAL RECORDS
      TAX RETURNS AND OTHER INCOME INFO
      BANK RECORDS
      CREDIT CARD RECORDS
      INVESTMENT RECORDS
      RETIREMENT ASSETS
      STOCK OPTIONS/BENEFITS
      BUSINESS RECORDS/PARTNERSHIP INFO.
      ETC.
    • CIS & Discovery - continued
      WHY DO WE WANT THIS INFORMATION?
      -TRYING TO MAKE SURE WE KNOW ALL OF THE ASSETS THAT THERE WERE AND ARE
      -LIFESTYLE
      -ARE ALL ASSETS ACCOUNTED FOR
      -IS ALL INCOME ACCOUNTED FOR
      -ANY DIVORCE PLANNING, UNUSUAL SPENDING, PURCHASES FOR NO MARITAL PURPOSE
      -MALPRACTICE
    • Business Valuation
      TYPICAL DOCUMENT REQUEST
      Articles of Incorporation, corporate by-laws, partnership or LLC agreements
       List of owners, percentages of ownership and curriculum vitas
       Minutes of governing board meetings
       Managerial organization chart and operation flowchart
       Annual financial statements for the calendar years December 31, ____ through ____.
       Interim balance sheet and income statement for the period ending ___________
       Strategic Business Plan
       Budgets or projections
       A list of all affiliates, including a schedule of all related party transactions
       All equity buy-out agreements and employment contracts
       Legal documents relating to all purchases and sales of equity interest
       Copy of any prior valuations of the business or offers to purchase
       Employee roster with job description, pay rate and recent W2 compensation ________ to ______
       List of contingent liabilities, pending/threatened litigation and related legal documents
    • Business Valuation - continued
       List of contracts in progress at _______________
       Aged accounts receivable as of the valuation date, including any work-in-process not billed
       Accounts payable listing as of the valuation date
       Schedule of security deposits
       Schedule of marketable securities and other investments held in the practice
       Schedule of lease and rental payments with applicable agreements held by the practice
       Fixed assets depreciation schedules
       Schedule of inventories
       List of patents, copyrights, trademarks and other intangible assets held by the business or individually
       Promissory notes receivable and payable with collateral agreements
       Analysis of equity account transactions
       Analysis of retained earnings or draw accounts
       Insurance policies, including property, casualty, liability, officer’s life, workmen compensation, group health, life and disability
       Accountants working trial balances with adjusting entities and supporting schedules
       All payroll records including tax returns, W2 statements and 1099 forms
       All bank and brokerage account statements with related canceled checks, deposit slips and broker advises for operating accounts and retirement plans.
       Atlantic Health correspondence
       Original invoices for all expenditures
    • Business Valuation – continued
      Personal Documents
       Personal financial statements prepared and/or issued for any purpose
       Income, trust, gift and estate tax returns (federal and state); as well as any amended tax returns
       All statements from banks, savings and loans, credit unions, individual retirement, pension, profit sharing, Keogh and brokerage accounts; with checkbooks, canceled checks, deposits slips, and broker advices
       All credit card statements and charge slips
       Life insurance policies, including cash surrender values and loan information
       Health and disability insurance policies
       Property insurance policies
       Lease agreements
       Legal documents evidencing ownership of real estate
       Partnership agreements, trust agreements, and related Form K-1s
       Documents evidencing ownership of vehicles, boats, jewelry, and other assets
       List of safe deposits boxes, their locations, and exact contents at present time
       Plan documents, periodic statements, and reports from all benefit plans (i.e., deferred compensation, profit-sharing, pension, 401(k) savings plans, etc.)
       Listing of contingent assets and liabilities, including pending or threatened litigation, with related legal documents
       All documents related to Internal Revenue Service audits within past 5 years
       Case Information Statement
    • Business Valuation - continued
      REVENUE RULING 59-60
      STARTING POINT FOR ALL BUSINESS VALUATIONS
      CLASSIC DEFINITION OF FAIR MARKET VALUE – WILLING BUYER/WILLING SELLER
      VALUATION OF SECURITIES IS A PROPHESY AS TO THE FUTURE BASED UPON THE FACTS KNOWN
      BUT SUBSEQUENT EVENTS
      FACTORS TO CONSIDER
      DISCUSSION OF GOODWILL – TIE TO EARNING CAPACITY
      CAP RATES
      REVENUE RULE 68-609
      FORMULA METHOD – EXCESS EARNINGS
      SELDOM USED ANYMORE
    • Business Valuation - continued
      DUGAN
      CASE DECIDED IN 1982 WHEN LAW PRACTICES COULDN’T BE SOLD
      STILL HELD THAT GOODWILL WAS AN INTANGIBLE BUT REAL ASSET WHICH COULD BE QUANTIFIED AND DIVIDED
      CONTAINS THE CLASSIC DEFINITION OF GOOD WILL
      THE RIGHT TO CONTINUE THE BUSINESS AT THE SAME PLACE IN WHICH IT HAS BEEN ESTABLISHED AND WHERE ITS REPUTATION HAS BEEN MADE CARRYING THE PROBABILITY THAT OLD CUSTOMERS WILL RETURN
      GOODWILL CAN BE TRANSLATED INTO PROSPECTIVE EARNINGS
      FUTURE EARNINGS EXCEED NORMAL RETURN ON INVESTMENT
      COURT REJECTED 5 TIMES MULTIPLIER IN FAVOR OF 3 TIMES
    • Business Valuation - continued
      STERN
      DECIDED IN 1974 BUT STILL GOOD LAW
      PERSONS EARNING CAPACITY IS NOT AN ASSET TO BE DIVIDED – EVEN WHERE IT HAS BEEN AIDED BY THE OTHER SPOUSE
      THESE ARE FACTORS IN ALIMONY AND E.D.
      STERN IMPORTANT BECAUSE IT ALLOWS THE PARTNERSHIP AGREEMENT FORMULA FOR VALUE TO BE USED AS A PRESUMPTIVE VALUE IF BOOKS ARE WELL KEPT AND VALUE OR PARTNERS INTEREST IS UPDATED AND CAREFULLY REVIEWED
      PRACTICALLY
      HAS THIS AGREEMENT BEEN USED WHEN OTHER PARTIES DIE OR ARE BOUGHT OUT
      DOES THIS HOLDING SURVIVE AFTER BROWN
    • Business Valuation - continued
      BROWN v. BROWN
      APPELLATE DIVISION CASE - 2002
      NO MARKETABILITY DISCOUNTS OR MINORITY INTEREST DISCOUNTS IN DIVORCE VALUATION EXCEPT IN SPECIAL CIRCUMSTANCES
      HAVEN’T HEARD OF ANY YET
      VALUE TO HOLDER – BUT IS THIS ECONOMIC REALITY?
      RATIONALE CAME FROM OPPRESSED SHAREHOLDER CASES
      MARKETABILITY ADJUST FOR LACK OF LIQUIDITY BUT SPOUSE ISN’T SELLING ANYWAY
      COURT FOUND THAT APPLYING THESE DISCOUNTS WOULD UNFAIRLY MINIMIZE THE MARITAL ESTATE
      OTHER POINT IN BROWN IS THAT THE APPELLATE DIVISION SAID THAT ABSENCE OF GIFT TAX RETURNS DID NOT MEAN THAT THERE WAS NOT A GIFT THAT WAS OTHERWISE PROVEN
    • Business Valuation - continued
      STENEKEN
      DOUBLE DIP
      CAN YOU USE THE SAME INCOME FOR SUPPORT AND VALUATION – YES
      ISSUE FRAMED BY APPELLATE DIVISION – WHETHER IT IS PERMISSIBLE DOUBLE COUNTING TO VALUE A BUSINESS BASED ON REASONABLE AS OPPOSED TO ACTUAL COMPENSATION, AND THEN CALCULATE ALIMONY BASED ON THE SAME EXCESS SALARY THAT WAS ADDED BACK TO BUSINESS INCOME, AND INCREASED THE VALUE FOR WHICH THE PLAINTIFF ALREADY RECEIVED HER SHARE
      TRIAL COURT IMPROPERLY USED NORMALIZED EARNINGS AS OPPOSED TO ACTUAL EARNINGS FOR SUPPORT
      HUSBAND ARGUED THAT BECAUSE ALIMONY AND E.D. ARE INTERRELATED, THAT IT WAS IMPERMISSIBLE – SHE WILL GET BENEFIT OF INCOME TWICE
      BASE SUPPORT ON ACTUAL EARNINGS, INCLUSIVE OF PERQS, ETC.
      REASONS WHERE THERE COULD BE A DOUBLE DIP
      USE OF NORMALIZED EARNINGS FOR VALUATIONS PROPER
      JUSTICE LONG DISSENT – THERE SHOULD NOT BE A BRIGHT LINE
      REASONS WHY IT COULD BE UNFAIR
    • Joint Tax Returns
      WADLOW – 1985
      CAN’T COMPEL
      JOINT RETURN COULD HAVE CIVIL OR EVEN CRIMINAL IMPLICATIONS
      HOWEVER, COURT CAN CONSIDER THE FINANCIAL IMPLICATIONS OF NOT FILING
      HYPOTHETICAL RE: BROKER’S COMMISSION NOT CONSIDERED
      BURZSTYN – 2005
      CAN COMPEL A JOINT RETURN
      RECENT CASE THAT SAID IT WOULD BE UNFAIR TO COMPEL
      INDEMNIFICATION AGREEMENTS
      NOT REALLY A PANACEA BECAUSE THEY ARE NOT BINDING ON THE IRS
      HOW ARE PRIOR TAX YEARS HANDLED IN A SETTLEMENT
    • Innocent Spouse Relief
      DOES IT REALLY EXIST?
      FORM 8857- REVISED A FEW YEARS AGO
      FORCES PEOPLE TO POSSIBLY ADMIT TO FRAUD UNDER OATH
      ADVISE PEOPLE TO SPEAK TO ACCOUNTANT OR TAX ATTORNEY BEFORE FILING FORM
    • Allocation of Dependency Exemptions
      DESPITE FEDERAL PREEMPTION, THEY ARE TYPICALLY ALLOCATED
      OFTEN TOO SIMPLISTIC AND WITHOUT REGARD TO BENEFIT/FINANCIAL REALITY
      IGNORE PHASE-OUT – GIVEN PHASE-OUT – IS IT REALLY WORTH FIGHTING ABOUT?
    • Allocation of Dependency Exemptions - continued
      NEW RULES IN 2009
      Custodial parent and noncustodial parent.   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial parent.
      If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year.
      Equal number of nights.   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income.
    • Court’s Duty to Report
      SHERIDAN v. SHERIDAN
      UNREPORTED INCOME/UNDER-REPORTED INCOME /EXCESS PERQS.
      ALL ILLEGAL ACTIVITY MUST BE REPORTED
      IS IT REALLY A MYTH?
      WHEN THE DUTY VESTS?
      BINDING ARBITRATION
    • Child SupportPaying for College
      Newburgh v. Arrigo – Factors courts must consider:
      (1) Whether the parent, if still living with the child, would have contributed to the costs of the requested higher education;
      (2) The effect of the background, values, and goals of the parent on the reasonableness of the expectation of the child for higher education;
      (3) The amount of contribution sought by the child for the cost of higher education;
      (4) The ability of the parent to pay that cost;
      (5) The relationship of the requested contribution to the kind of school or course of study sought by the child;
      (6) The financial resources of both parents;
    • Child SupportPaying for College - continued
      (7) The commitment to and aptitude of the child for the requested education;
      (8) The financial resources of the child, including assets owned individually or held in custodianship or trust;
      (9) The ability of the child to earn income during the school year or on vacation;
      (10) The availability of financial aid, in the form of college grants and loans;
      (11) The child’s relationship to the paying parent, including mutual affection and shared goals, as well as responsiveness to parental advice and guidance;
      (12) The relationship of the education requested to any prior training and to overall long-range goals of the child.
    • Child SupportUnreimbursed Medical Expenses
      Gotlib v. Gotlib – unreimbursed medical expenses akin to child support and cannot be waived
      “[A] parent’s obligation to pay un-reimbursed medical expenses should be deemed by a court reviewing a motion to enforce litigant’s rights as an essential benefit to the parties’ children. In this light, the right to receive these payments belongs to the children, and is therefore not subject to waiver by a custodial parent.”
    • Life Insurance
      Commonly used to secure an alimony or child support award
    • Avoiding Penalty on Transfer of Retirement Assets
      MUST BE INCIDENT TO A DIVORCE
      SIMILAR RULES FOR IRA’S AND 401K’S
      MUST BE A DIRECT CASH OUT
      IF ROLL OVER THEN CASH OUT – PENALTY WILL BE APPLIED
      CAN ONLY AVOID PENALTY, NOT THE TAX
    • Prenuptial Agreements
      WHO NEEDS THEM
      -SECOND FAMILIES
      -PROTECT FAMILY WEALTH OR PREMARITAL ASSETS
      ONE SIZE DOES NOT FIT ALL
      FULL DISCLOSURE CRITICAL – PERSONAL ACCOUNTANTS/FINANCIAL ADVISERS TO HELP PREPARE SCHEDULE OF ASSETS AND LIABILITIES
    • Palimony
      IS IT DEAD IN NEW JERSEY?
      NEW STATUTE SIGNED ON GOV. CORZINE’S LAST DAY IN OFFICE
      PROMISE OF SUPPORT FOR LIFE MUST BE IN WRITING
      THAT WILL NEVER HAPPEN?
      CASES REGARDING RETROACTIVE APPLICATION OF THE STATUTE ARE CURRENTLY PENDING
    • Questions
    • Contact Information
      Eric S. Solotoff, Esq.
      (973)994-7501
      esolotoff@foxrothschild.com
      Sandra C. Fava, Esq.
      (973)994-7564
      sfava@foxrothschild.com