DivorceMag: Pennsylvania FAQs

Find a divorce lawyer, mediator, accountant, Certified Divorce Financial Analyst, therapist and more...
To advertise with us call our toll free number 877-493-1650 or Click Here

This site sponsored by:

Frequently Asked Questions About Divorce

"Are alimony and child support taxable? If so, is there any way of structuring support payments to my ex to lower my taxes?"

CPA and CFP Ginita Wall answers: "First of all, child support is never deductible or taxable. It is generally assigned by the courts under a formula that is not open to negotiation.

To obtain a deduction for the alimony you pay (it will be taxed to your ex), you must follow the "five Ds" for deductibility:

the alimony must be paid in Dollars;
it must be under a Decree or written agreement;
it must cease on your ex's Death;..."

"What advantages does apartment living offer over home ownership?"

Apartment-rental expert Colleen Lambros answers: "The convenience of maintenance-free living affords renters appealing lifestyle options. Whether you love to travel, require the convenience of a bi-coastal residence, or just seek carefree resort-style living, when making a move, don't make it without considering an apartment.

Most apartments are equipped with all the conveniences you would expect in a home, like washers and dryers inside the apartment, convenient one- or two-car attached garages, state-of-the-art appliances, alarm systems with optional monitoring, and high-speed Internet access.

When shopping for an apartment, be clear about what your needs are, and be willing to ask a lot of questions. There is such a wide range of apartment rentals available; you're sure to find exactly what you want..."

"My wife worked for many years for a major corporation while I was self employed. How can I be sure I'll receive my fair share of her pension?"

Financial planners Stephanie Maloney and Jerry Cohen answer: "There are two common methods to value pension benefits as part of a divorce settlement. The first is the "present value’ or "cash out" method, which awards the non-employee spouse either a lump sum settlement, or other marital assets of equal value, at the time of divorce, in return for the employee spouse receiving 100% of the future pension benefits. The second option is the "deferred division’’ or "future share" method, where each spouse is awarded a portion of the monthly benefit as it is paid in future years.

There are many factors to consider before you decide which is best for you. How close you and your spouse are to retirement age is one aspect to consider. The younger you are, and further from retirement age, you may favor using the cash out method..."

Advertise on DivorceMag.com

Featured Websites