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Mar 08

The principle of equitable distribution in a Pennsylvania divorce

The Principle of Equitable Distribution in a Pennsylvania Divorce

Common law property states are those that recognize equitable distribution, and Pennsylvania is one of them. With equitable distribution, factors like separate property are considered, and it may also make a difference which of the partners filed for divorce.

There’s a Difference Between What’s Equal and What’s Equitable

Equitable distribution doesn’t mean equal division. Unlike community property states, you’re not going to split everything straight down the middle. Rather, equitable distribution takes the circumstances of both parties into consideration in an attempt to give each person what they need.

There are only nine states in the U.S. that use community property rules, which is the alternative to equitable distribution. In these states, the property is divided as equally as possible without taking into account the amount that each party contributed throughout the marriage.

What Happens in the Process of Equitable Distribution?

With equitable distribution, the process of dividing up your marital property is handled much more delicately by the courts than with community property division. The principles of equitable distribution give weight to what each spouse needs and what kind of means they’re working with after the divorce.

One common situation that comes up with equitable distribution is when one party has ended a career so that they could remain at home and look after the kids. After their marriage has ended, there’s a good chance that they’ll have a harder time supporting themselves financially, so it’s possible that a court may find that this spouse should get a bigger portion of their marital property.

The Process May Be Collaborative or Done Through Your Attorneys

Couples who are getting divorced have the chance to work out how to divide their marital property prior to court intervention in an equitable distribution state like Pennsylvania. This is comparable to how things work in community property states. Keep in mind, though, that whatever the couple decides is still subject to approval from the court.

Sometimes, this process might be done through the spouses’ divorce lawyers. But if both parties are willing and able to work together, it may be done in a collaborative environment. In the event that the couple isn’t able to come to some form of agreement in time, a resolution may be made at the court’s discretion. However, this still must be done within the state marital property law parameters, and a divorce lawyer can provide you with more information about what that might entail.

What Are Some Considerations for Equitable Distribution?

Some of the factors that are considered in equitable distribution include how long the marriage lasted, the spouse who has primary custody of any children who are still minors, and what the financial needs of both spouses are. Courts will also factor in the liabilities that each party has, both presently and going forward. One common example of this is when one person needs to pay for schooling to get their degree in order to make enough money to live on.

Any pensions earned by either party are also taken into consideration with equitable distribution as well as how much was contributed by each of the spouses to the total of their accumulated marital property. Courts will look at things like the individuals’ health, age and special needs along with any child or spousal support obligations that either one of them has to keep up with from previous relationships.

The marital misconduct of either spouse can also come up in equitable distribution. This may encompass any behavior from extramarital affairs, domestic violence or debts that were racked up from gambling.

Of these myriad factors that come into play with equitable distribution, one element that gets excluded from the considerations is premarital property because any personal property that was acquired prior to the marriage doesn’t count towards a marital estate.

If you’re dealing with a divorce in the Jenkintown area, call the Law Office of Joanne Kleiner today at 215-886-1266, and we’ll answer any questions that you might have about marital property and equitable distribution.

Mar 04

Divorce and Social Security retirement benefits

Everything You Should Know About Divorce and Social Security Benefits

Each year, roughly 50 million people collect retirement benefits from Social Security. Since these funds are such a big part of most retirement plans, it’s worthwhile to consider them in your divorce. Understanding how divorce impacts Social Security makes it easier to create smart financial arrangements.

Can You Collect Spousal Benefits After a Divorce?

The most important thing to know is that divorce doesn’t change most of the basic Social Security rules. As long as you were married for at least 10 years and have not remarried, you can collect your Social Security spousal benefits just like you normally would. Because the funds that go into Social Security are part of your joint household effort, you are still entitled to receive the benefits after you divorce.

Just like married couples, you can collect up to 50% of the amount of Social Security your ex is eligible for. Your ex cannot keep you from withdrawing benefits based on their Social Security, and the benefits that you collect won’t affect any payments to your ex or anyone they choose to marry. However, you’ll still need to follow the typical eligibility requirements associated with Social Security withdrawals. The process can be confusing, so if you have questions about your Social Security benefits, your Pennsylvania divorce lawyer may be able to help.

Eligibility Details for Ex-spouses

If you meet the main requirement of having been married for at least 10 years and not remarrying, you’ll be able to withdraw from Social Security once a few other eligibility rules are met. First of all, your ex-spouse needs to be able to collect their Social Security funds. They don’t have to be withdrawing benefits yet, but they have to be old enough to withdraw their benefits. If your ex-spouse is eligible to withdraw benefits but has not started withdrawing them yet, you need to be divorced for at least two years.

The other key eligibility detail is that you have to be eligible for Social Security payments. This will mean you need to be at least 62 years old. Keep in mind that your payments will vary depending on how soon you start withdrawing. People who wait until the full retirement age to withdraw will get higher payments. Depending on when you choose to begin collecting benefits, you will get between 32.5% to 50% of the amount your ex gets.

Finally, it’s important to recognize that your own Social Security benefits may impact your ability to withdraw based on your ex’s Social Security. No one is eligible to withdraw two separate Social Security payments. Instead, Social Security will look at all benefits you’re eligible for and only pay you the highest amount. So if your solo benefits are higher than the spousal benefits you get through your ex, you will only get your solo Social Security benefits.

Will Social Security Affect Your Divorce?

Keep in mind that Social Security is different from most other retirement details. Unlike a 401(k), your divorce lawyer doesn’t need to negotiate Social Security withdrawals during your divorce mediation. You don’t need your ex’s permission to get Social Security, and the number of benefits you get won’t affect their withdrawals at all. The government won’t even notify them when you begin withdrawing your spousal benefits.

However, this doesn’t mean you should entirely forget about Social Security during your divorce. Pennsylvania law is all about finding a fair, equitable distribution of assets during divorce. If one spouse is entitled to more Social Security retirement benefits than the other, a 50/50 asset split isn’t always fair. This type of division could mean that one person ends up with a lot more money when they retire. In these cases, your lawyer might be able to help you reach an arrangement where you get additional assets to compensate for your lack of Social Security.

If you have any other questions about divorce and retirement benefits, Joanne Kleiner is here to help. We can assist you in negotiations or mediation and finding a solution that suits everyone’s needs. To learn more about our legal services, fill out our contact form or call us at 215-886-1266

Feb 15, 2023

The effect of a gray divorce on your older children

How Does Gray Divorce Affect Adult Children?

A “gray divorce,” also known as a “silver split” or “late-life divorce,” is a term used to describe when couples who are at or over 50 years old end their marriage. While this type of split was once a rare occurrence, it has become increasingly common over the last few decades. Consequently, the number of adult children whose parents are getting divorced is also increasing.

The effects of divorce on young children are well-known, but few consider the effects of a gray divorce on older children. Although adult children may not experience the same level of distress as younger children, divorce lawyers know from experience that children can still be negatively impacted by their parents’ separation long after they’ve become adults.

It Can Alter Their Views of the Past

Many adult children of gray divorces look back on their childhood and adolescence in a new light. While they may have previously believed their family was a happy one, the news of the divorce can cause them to re-evaluate their memories. Any positive memories of their family may become clouded with uncertainty and regret.

To help adult children with this, parents should try to preserve good memories. Go through old photos and videos together and reminisce about the good times. It can be comforting for adult children to know that their parents were once happy, even if things didn’t work out in the end.

They Might Feel Blindsided

Because adult children of gray divorce are often out of the house and don’t experience the same level of direct contact with their parents’ divorce proceedings, they may feel as though they have been excluded from an important part of their familial narrative. Feelings of anger may arise if they weren’t informed earlier or included in the decision-making process.

If possible, parents should talk with their adult children early on in the divorce proceedings. Explain the reasons for the split and allow them to provide input. They might not be able to change the outcome, but encouraging them to share their thoughts can help them feel heard and respected.

Relationship Anxiety May Increase

Adult children of gray divorces may also be more likely to develop commitment issues. Many are already married when their parents get divorced, and their feelings about their own marriage can be tainted by the news. They may have entered their marriage with their parents’ marriage as a model, and the news of their parents’ divorce can cause them to doubt their own relationship.

Parents can help their adult children cope with this feeling of relationship anxiety by reassuring them that all relationships are different. The divorce can serve as an example of what not to do and be a conversation starter on how to create a healthy, lasting marriage.

They May Have Financial Concerns

Gray divorces often come with a host of financial complexities as they may have amassed more assets throughout their marriage than younger couples. This can create a great deal of stress for adult children as they may feel an obligation to step in and help their parents financially.

Adult children may also worry about logistical issues such as wills, estates, and trusts. Parents should try to alleviate any money worries their children might have by showing them their financial plans and walking them through what will happen to their assets in the event of death or incapacitation after the divorce is finalized.

Overall, adult children are likely to approach their parents’ split differently than younger children. Understanding the unique factors that come with adult children of gray divorce can help parents best support their adult children during and after the process.

If you’re going through a gray divorce, reach out to your adult children and start the conversation; they may surprise you with their resilience and understanding. Then, contact a Pennsylvania divorce lawyer for reliable legal advice and support. With a trusted legal partner on your side, you can leave the details of your divorce to the professionals and focus on healing with your family. Call the Law Office of Joanne Kleiner at (215) 886-1266 to schedule a consultation today.

Feb 11

Some tax matters associated with divorce

Common Changes to Filing Taxes Following a Divorce

Numerous issues related to your divorce can alter the amount of taxes you pay each year. There were 630,000 divorces in 2020, most of which resulted in both spouses needing to make changes to the way they file taxes. While alimony payments and child custody arrangements must be considered, some tax breaks might be available.

How Your Filing Status Changes

The marital status you have on December 31 determines what your tax filing status will be for that tax year. If the divorce hasn’t been finalized by the end of the year, a joint return can still be filed, saving you money when you file your return. You could also file with the “married but filing separately” status.

If you haven’t lived with your spouse for the final six months of the tax year, are filing separate returns, have paid over half of the home’s upkeep, and have had a dependent living in your home for over half of the year, you could file as head of the household, which allows for a larger standard deduction. In addition, after your divorce has been finalized, you could file as a single taxpayer or as head of household.

Alimony Payments

You might deduct your alimony payments if a divorce agreement was finalized before January 1, 2019. However, the spouse who receives these payments must include them as taxable income. As a result of the changes to the Internal Revenue Code contained in the Tax Cuts and Jobs Act of 2017, alimony can’t be deducted if the marriage was finalized on or after that date.

Child Tax Credits and Medical Expenses

The child tax credit can only be claimed by the custodial parent, the parent that the kids live with for most of the year. So when filing your 2022 taxes, the child tax credit amounts to $2,000 for every child who is 16 years old or younger.

If you have children older than 16, they may qualify for a dependent tax credit, which amounts to as much as $500 for every qualifying child. The noncustodial parent could claim this credit if the custodial parent doesn’t want to.

However, the custodial parent must sign a waiver stating they won’t claim the exemption. IRS Form 8332 is the one that the custodial parent must sign. It must also be submitted with the noncustodial parent’s tax return each year.

If you’re paying your child’s medical bills following a divorce, these costs can be included as medical expense deductions. This credit is available even when your ex-spouse has custody of your child. Medical expenses are considered deductible only if they exceed 7.5% of your adjusted gross income. Any other bills paid for the child can push costs over this threshold.

How Home Sales are Impacted

If you and your spouse have decided to sell your home, the date the sale takes place dictates what happens with your taxes. In most cases, the Internal Revenue Code allows individuals to avoid paying taxes on the initial $250,000 of profits following the sale of a home if the home has been owned and lived in for at least two out of the previous five years.

A married couple filing jointly can obtain an exclusion of as much as $500,000. In addition, a spouse can exclude $250,000 in gains on individual returns if the sale takes place after the divorce. However, if the two out of five-year test hasn’t been met, the exclusion is lowered and depends on how much time you spend at home.

If you have lived in the home for just one of the two previous years, $125,000 of gain can be excluded. If you’re about to seek a divorce and want to know how your tax situation will change, contact our New Jersey divorce lawyer.

Can You Deduct Your Legal Fees When Filing Taxes?

It’s usually impossible to deduct legal expenses after filing for a divorce. These expenses include everything from litigation to tax advice. Any payments could be subject to a gift tax if no legal responsibility has arisen due to the divorce settlement.

When you are considering filing for a divorce and want to make sure that you understand every facet of what this process entails, call our divorce lawyers today at (215) 886-1266 to schedule an appointment.

Jan 18, 2023

Some losses that divorce might cause

Unexpected Losses a Divorce Could Cause

As you seek an end to your marriage, it can be difficult to understand what your life will look like after the divorce is finalized. Over 630,000 people obtained a divorce in 2020, many of whom encountered similar challenges. Along with the expected losses of personal possessions and finances, there might also be some unexpected losses that affect you in the weeks and months following your divorce.

Being Unable to Share in Your Child’s Disappointments or Achievements

One of the most significant losses after a divorce is the inability to share in your child’s disappointments or achievements. If your child aces a test or gets into their dream college, you and your ex-spouse likely won’t share these important events.

However, you may be able to adjust to this loss after some time has passed. For instance, your friends can share in your pleasure. The relationship you have with your ex-spouse could also become more amicable over time, which might allow for these events to be shared without any tension or feelings of anger being added to the mix.

Losing Some of Your Close Friends When Sides Are Taken

You might notice in the immediate aftermath that some people you were good friends with while you were married are avoiding you or no longer conversing with you as often. During this time, you’ll be able to determine who your actual friends are. If you have people who still hang out with you even though you aren’t married, they are still your friends. These individuals can give you the support you need as you adjust to a non-married life.

Losing Out on Financial Security

The sudden drop in finances that occurs following a divorce can be difficult to handle if you’ve never been in this situation. You might begin to wonder when you’ll be able to retire or if you’ll have difficulties finding a place to live. While your budget may be smaller, being more focused on how you spend your money can be advantageous in the long run.

Whether you live on a lower income or focus on finding more work, there are a couple of options you have to reduce the anxiety that comes with being in a new financial situation. Many people find that they have more time after a divorce to tend to their finances. If you’re still in the midst of a divorce and want to take steps to protect your finances, call our Pennsylvania divorce lawyer today to ask questions and schedule a consultation.

Losing Your Best Friend

If you’ve considered your spouse to be your best friend but find that your marriage just isn’t working, getting a divorce can make you feel like you’ve just lost the person you were closest with. The connections that were built up during a marriage will likely dissipate in the months following.

Whether your ex-spouse would do the taxes every year or would know exactly what to do when you were sick because of their profession, being unable to speak with this person in the future can be a shock to the system. With time, however, it becomes possible to build different connections and find new resources. You could also take this time to develop skills that you weren’t interested in before.

Losing Shared Memories and Traditions

Another loss that many people have after getting a divorce involves losing the shared memories and traditions that naturally develop throughout a marriage. If you have children, you might have created some holiday traditions over the years. Maybe you went camping regularly with your family as a way to spend some quality time together.

In the time immediately following a divorce, taking part in these traditions and activities can be painful. Keep in mind, however, that you have the ability to make new celebrations and traditions with your friends or children.

Losing Out on the Future You Were Building Towards

There are times when the loss of the dreams and hopes you might have had during your marriage can weigh you down. If these dreams are no longer achievable, they can make way for new ones that are entirely your own. As is the case with most of the potential losses in this guide, time is a healer of all wounds.

Once you’ve accepted that your life isn’t the same as it was, you might be able to move on and look to a future that’s just as appealing. Everyone goes through different losses when they obtain a divorce. Even though they can be difficult to manage at the beginning, acknowledging and accepting these losses should make it easier to navigate them.

If you are currently weighing the possibility of filing for a divorce and would like some advice or legal representation, call our New Jersey divorce lawyer today at (215) 886-1266 to schedule your first appointment.