Rl1 851321 V1 Acorn Power Point V2[1]

Financial Issues in Divorce in New Jersey

© 2010 Fox Rothschild

Financial Issues in Divorce

in New Jersey

December 7, 2010

Presented by

Eric S. Solotoff, Esq.

Sandra C. Fava, Esq.



Child Support

Guidelines

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 Support

Guidelines - 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 Support

Over 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 Support

StatuteIn 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



Alimony

Statutory 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;



Alimony

Statutory 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



Alimony

Lifestyle 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



Alimony

Lifestyle – 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



Alimony

Rule 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?



Alimony

Miscellaneous

NON-TAXABLE ALIMONY IS AN

OPTION

- WHY/WHEN DO YOU USE IT

DON‟T FORGET RECAPTURE

NEW YORK NOW HAS A FORMULA



Equitable Distribution

Statutory 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;




Statutory 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.




Considerations

MOST ASSETS GO 50-50

- WHY?

- IS IT WORTH THE FIGHT?




Considerations - 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?





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





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





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




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.




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




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




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




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




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




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 Support

Paying 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;

http://www.google.com/imgres?imgurl=http://whitewashedfeminist.files.wordpress.com/2008/08/college-diploma.jpg&imgrefurl=http://whitewashedfeminist.wordpress.com/2008/08/03/college-and-vision-forum-is-there-a-double-standard/&usg=__tqW_i3fx1q5oYzaLpTrtTsQ6Q7I=&h=444&w=270&sz=27&hl=en&start=1&zoom=1&itbs=1&tbnid=snfg_GliSXFzmM:&tbnh=127&tbnw=77&prev=/images?q=college+diploma&hl=en&sa=G&gbv=2&tbs=isch:1



Child Support

Paying 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 Support

Unreimbursed 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.”

http://www.google.com/imgres?imgurl=http://dir.coolclips.com/Healthcare/Healthcare_Professionals/Doctors/cartoon_doctor_CoolClips_cart0413.jpg&imgrefurl=http://dir.coolclips.com/Healthcare/Healthcare_Professionals/Doctors/Cartoon_doctor_cart0413.html&usg=__BaQ-fKcAWSsLYGStSmbxtFo9PMg=&h=311&w=375&sz=44&hl=en&start=5&zoom=1&itbs=1&tbnid=g62EflRmBXBXxM:&tbnh=101&tbnw=122&prev=/images?q=cartoon+doctor&hl=en&sa=G&gbv=2&tbs=isch:1



Life Insurance

Commonly used to secure an alimony or

child support award

http://www.google.com/imgres?imgurl=http://s2.hubimg.com/u/2029017_f520.jpg&imgrefurl=http://hubpages.com/hub/jump-life-insurance&usg=__9EBWNn_UO_3w4SmsbZZpvKVMMEw=&h=575&w=520&sz=48&hl=en&start=1&zoom=1&itbs=1&tbnid=i8E1FhdPBBesjM:&tbnh=134&tbnw=121&prev=/images?q=life+insurance&hl=en&gbv=2&tbs=isch:1



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

[email protected]

Sandra C. Fava, Esq.

(973)994-7564

[email protected]