Answers From An Experienced High-Asset Divorce Attorney
The prospect of divorce brings many questions. If you have significant assets, the answers to these questions can make all the difference for your post-divorce quality of life. The attorney at Rioles Law Offices can provide you with the answers you need and help you protect your legal and financial interests. Continue reading for answers to some frequently asked high-asset divorce questions or call 401-484-6178 to schedule a consultation.
How is a high-asset divorce different from other divorces?
At its core, a high-asset divorce is still a divorce, and there are specific legal steps that must be taken to protect the legal and financial interests of each spouse as well as any children from the marriage. The difference is that, in this type of divorce, the value and types of assets involved create uniquely complex issues. For example, the tax implications of a high-asset divorce alone can require a similar amount of time and effort to resolve as an entire divorce that involves fewer assets. Assets such as a family business, vacation properties and stock portfolios make it crucial to have an attorney on your side who has experience protecting the interests of executives, doctors, business owners and others with significant income and wealth.
Is alimony taxable?
The 2018 Tax Cuts And Jobs Act changed the way recipients and payors of alimony account for such payments on their taxes. Under the old rules, the paying ex-spouse was allowed to deduct the amount on their taxes while the recipient ex-spouse was required to claim the amount as income. This is no longer the case for divorces or legal separations that were finalized after January 1, 2019.
The paying spouse is no longer allowed to deduct the amount from their taxes and the recipient spouse no longer needs to claim the amount as gross income.
How are retirement assets split?
Because pensions and retirement accounts are considered shared property in the state of Rhode Island, they are subject to the state’s equitable distribution laws. The process by which these assets are divided, and the options to be considered as well as the tax and other implications of trading these assets against nontaxable assets can provide for need for very complex and thorough investigation and negotiation.
The needs for a “transfer incident to divorce,” vs a and or qualified domestic relations order (QDROs required of depending on the type of assets and often a qdro is necessary for each each plan to which it applies, and each must be submitted to the plan administrator for pre-approval, then submitted to a court for entry, followed up with submitting back to the plan for implementation. If any step is missed or done incorrectly, it can have long lasting and detrimental results upon the alternat payee.
How are business assets handled in a divorce?
If a family-owned or closely held business is the source of your family’s livelihood, it will certainly play a large role in your divorce. Whether the business is owned or operated by one or both spouses, it may be considered marital property and thus subject to division as part of the divorce. If one spouse wishes to keep the business, it may be necessary to engage experienced professionals to perform a complex business valuation. It is imperative that the attorney work closely with the business evaluator and the choice of an evaluator can be a crucial decision in the divorce and have long reaching effects. Attorney Brenda Rioles has extensive experience with business valuations and the division of business assets in divorce.
Get The Answers You Need From A Proven Attorney
No two divorces are exactly alike. You need a lawyer who think creatively, can answer your questions, help you find a solution that meets your objectives and who will provide trustworthy, respectful and experienced representation. Call 401-484-6178 to schedule a consultation.