Index

• Library: Divorce & Money (Nolo) (2020 Ed.)

Index

A

Abusive spouse

mediation not appropriate in cases of, 96
restraining order to prevent contact with, 56, 82
See also Domestic violence

Accidental death or dismemberment insurance, 135, 338

Accountants

forensic, 117, 125
interpreting tax documents, 114
as professional help, 103-104
for rough estimate of tax bill, 156, 157
for stock options, 342
See also Financial advisers and planners; Tax advisers

Account balance, retirement accounts, 256

Accrual basis accounting, 125

Accrued benefit, defined, 256

Actuaries, 108

Address, for receiving financial documents, 114

Administration for Children and Families, Child Support Enforcement, 464

Age

benchmarks important to retirement plans, 260-261
death prior to age 55, and retirement plans, 276
of early withdrawals from IRAs, 280
pension maturity age, continuing to work past, 276-277

Agreements. See Settlement agreements

Alaska

no state income tax in, 264
opt-in to community property system, 162
See also Community property states

Alcohol and drug abuse

mediation not appropriate in cases of, 96
seeking professional help for, 380

Alimony (spousal support), 401-418

overview, 374
and additional provisions for health or disability insurance, 152
bankruptcy not discharging. See Bankruptcy: support payments
cohabitation and loss of, 451
combined with child support (family support), 416
cost of living adjustments (COLAs), 411, 414
date of separation and, 67-68
disabled spouse, 402
documentation of, 438
double-dipping by spouse, prevention of, 277
emotional realities of, 403, 415
extension of scheduled termination date, 410, 440
factors used to determine, 402, 405
financial realities of, 402-403
financial schedules for setting, 402, 405
income defined as a continuing source of money that can be used to determine, 189-190, 336
and income sources, consequences during separation, 139
inflation and, 411, 415
keeping the house in exchange for release of, 242
lawyers, questions to ask, 418
legal realities of, 401-402
life and disability insurance and, 411
and life insurance beneficiary, 147
and life insurance on the person paying support, 447
long-term marriages and, 67-68, 402, 405
lump sum (alimony buyout), 414-416
method of payment, 408
modification of, 410, 413, 416, 440
as nontaxable income (2018), 169, 407
property division and amount of, 402
property settlement payments distinguished from, 409
recordkeeping and, 412
remarriage and, 409, 410, 415
stock options used to calculate, 342, 343, 348
tax deductibility of lawyers' fees for obtaining, 108
tax deduction for, as removed (2018), 169-170, 407
time length of requirement to pay, 402, 410
unemployed spouse and deferral of decisions on, 9
wage withholding orders for, 408, 413
waived, 242, 440
when payments are paid, 408, 410
See also Alimony, failure to pay; Alimony, steps toward a settlement; Alimony, temporary

Alimony, failure to pay

collection methods, 413, 416
court hearing for, 413
IRA funds can be forcibly taken for, 280
QDRO used to collect, 400
retirement plan funds usually protected from forcible takings for, 280

Alimony, steps toward a settlement

overview, 403
alternatives to receiving, 414-416
factors involved in setting amount, 402, 405
financial schedules for setting amounts, 405
income needs, 404, 406-407
payment practicalities, 407-408, 410-411, 413
tax deduction removed (2018), 407

Alimony, temporary

court-ordered, 140, 141
obtaining court order, 141, 169
tax deduction for, as removed (2018), 169-170
voluntary, 140

"All at once" syndrome, avoiding, 46-47

Alternate payee (nonemployee spouse), 257

Alternative dispute resolution. See Arbitration; Mediation

American Bar Association, 90

American Opportunity credits for tuition costs, 389

Annual Credit Report Service, 63

Annuities

contracts, 256
deferred (personal), 253, 258, 261, 267, 274
on Investment Chart, 304
TSAs, 250, 258, 265, 273, 281
withholding for child support, 393

Annulment of marriage, 166

Appraisals

overview, 105
for businesses, 108
for collectibles, 309
cost approach, 318
disagreements on, 220-221
of fair market value of family house, 219-221
income approach, 319
of investment real estate, 318-319
market data approach, 319
professional organizations for, 465
request for inspection to allow, 176

Appraisers, finding and hiring, 218, 219

Arbitration, 7, 99-100, 463

Arizona

automatic restraining order in, 118
covenant marriages, 21
See also Community property states

Arkansas, covenant marriages, 21

Assets

defined, 336
easily overlooked assets, 118, 120-121
holding off on cashing out, 8-9
income distinguished from, 189-190, 336
keeping the house in exchange for other, 242, 423
net worth statement assessing, 178-181, 182-186
postdivorce sale of, 442
posted to guarantee child support payment, 397
retirement plan exchanged for other, 275, 423
transferring, in exchange for alimony, 415
See also Assets hidden by spouse; Asset valuation; Business assets; Cash and cash equivalents; Debts; Employee benefits (nonwage compensation), and treatment as income or asset; Liabilities; Marital property (joint property); Net worth statement

Assets and Liabilities Worksheet, 177, 178-188, 368, 421-422

Assets hidden by spouse, 116-118

business assets, 119, 175
changing settlement terms in case of, 439
checklist of methods used to hide assets, 119
discovery (legal) process and, 117
economic misconduct and, 116-117, 118
forensic accountant to find, 117

Asset valuation

actuary valuation, 261
divorce financial analyst for help with tricky, 102-103, 466
frequent flyer miles, 120
legal value, 259, 261-263, 264, 269
personal/household property, 82
state laws on date of separation vs. divorce for, 67, 306
See also Fair market value; Financial (after-sale/after-tax) value; House, steps toward a settlement; Rental or income properties

Average basis tax liability method, 316-317

B

Bank accounts

for cash payout from retirement plan division, 278
name change on, 435
See also Joint bank accounts

Bankers, as adviser, 104

Bankrate.com, 310

Bankruptcy, 357-368

overview, 357
automatic stay, 364
bankruptcy estate, 364
Chapter 7 bankruptcy, 361, 364, 365, 367-368
Chapter 11 bankruptcy, 364
Chapter 13 bankruptcy, 361, 363, 364, 365, 367
credit counseling class, requirement for, 366, 367, 445
on credit report, 66, 359, 367
debts that will not be discharged in (nondischargeable debts), 360-361, 365
discharge of debt via, 357, 360, 361, 363, 364, 367
division of property halted during, 361, 363
domestic support obligation, 364
of employee spouse, and retirement benefits owed nonemployee ex-spouse, 280
exempted property in, 357, 365
federal law as governing, 361, 367
lawyer for, 360, 363
lawyers, questions to ask, 370-371
married filing individually, 360
married filing jointly, 359, 360, 363
means test for eligibility, 365, 367
nonfiling spouse and, 360
nonfiling spouse held liable for debts discharged in ex-spouse bankruptcy, 361-363
postdivorce filing, 445
and previous marriages, 360
rebuilding credit following, 367
resource on, 368
separate property/debt and, 362, 363
settlement agreement provisions to minimize effects of potential bankruptcy, 362, 363, 365, 367-368
signs of potential, 367
steps to take when considering, 359-360
support payment determinations as continuing during, 361
support payments, characterizing marital debts as "in the nature of/in lieu of support," 365, 368
support payments not discharged in, 360, 413
terminology, 364-365

Bankruptcy Abuse Prevention and Consumer Protection Act (2005), 367

Best interests of the child, 381-382, 440-441

Bifurcated divorce, 430-431

Bonds

and capital gains tax, 311
financial value of, 310-311
interest rates as affecting value of, 311
on Investment Chart, 301-302
legal (equity) value of, 306-307
postdivorce actions on, 437
tax adviser for, 310-311
tax basis of, 315-317

Bonds, to guarantee child support payment, 397

Budgets, 444

Business assets

date of separation vs. divorce and, 67 hidden, 119, 175

Business continuation insurance, 150

Businesses

accounting methods: cash vs. accrual basis, 125
appraisals of, 108, 124-125
tax returns as source of financial
information about, 124-125

C

Cafeteria plans, 340

California

automatic restraining order in, 118
and child support enforcement, 390, 397
domestic partnership law, 11
fair division and fault division exceptions not applicable in, 173
name change resource for, 435
private investigators in, 109
private judging in, 8
retirement plan marital period stops on separation date, 262
stock options, 347-348
unmarried couples and property ownership, 450
See also Community property states

Capital gains and losses

as both asset and income, 190
selling losers to offset gains, 292-293
as source of financial information, 125-126

Capital gains taxes

bonds and, 311
on coin collections and other collectibles, 293
house remains principal residence despite moving out, 60
on rental or income properties, 318
state taxes, 232
tax rates, 163, 229, 293
See also Capital gains tax exclusion for sale of family home; Tax basis

Capital gains tax exclusion for sale of family home

overview, 29, 209
and financial value of house, 229-235
minus home office depreciation, 229
preservation for out-of-house spouse, 210

Capital improvements to house, 226-228

Cash and cash equivalents

"cash is king," 33-34
financial value of, 310
hiding assets via, 119
inflation vs., 34
on Investment Chart, 299
legal (equity) value of, 307
lump sum payments as tax free, 34
risk-free nature of, 34
time value of money and, 34
See also Lump sum payouts

Cash basis accounting, 125

Cash flow statement

child expenses, 191, 404
credit card expenses, 193
defined, 191
expenses, 192-193, 196-203
income, 192, 194-195, 203
and lawyers, questions to ask, 193
postdivorce updating of, 446
worksheet for, 191-193, 194-203, 368, 404

Certificates of deposit (CDs)

on Investment Chart, 299
legal (equity) value of, 307
postdivorce actions on, 437
postdivorce emergency fund in, 441

Certified Financial Planner (CFP), 102

Chapter 7 bankruptcy, 361...