What you Need to Know About Your Divorce Trial that Your Lawyer May Not Tell You – Part II: Five Things smart divorce clients do during their divorce trial

 

What you do before and during your divorce trial has an effect on the outcome of the case. In this second installment of Hightower Reff Law’s series What you Need to Know About Your Divorce Trial That Your Lawyer May Not Tell You, I’ll share five things smart divorce clients do during and before their divorce trial. These five things could help boost your chances of getting what you want at your divorce trial (or at the least, help prevent things that can screw up your case.)

In my years as an Omaha divorce lawyer and child custody lawyer, I’ve noticed that clients who are effective players in their divorce legal team usually share five common behaviors. Those things seem to have a positive influence on not only the outcome of the case, but also the way their divorce trial impacts their children’s lives and their own.

In this article I’ll share with you the five things these smart clients do during their divorce trial that have a positive impact on the outcome of their case.

What you need to know about your divorce trial that your lawyer may not tell you: What you do during your divorce case matters 

Smart clients know that a real divorce trial isn’t like the ones you see on television. How effective your lawyer can be on your behalf is limited by reality. That means actual facts – the way things are.

The court makes its findings for your divorce decree based on evidence – or, in other words, proof of relevant facts. Things like financial circumstances, including income, retirement savings, and debt are important facts the court considers. In child custody, your life style and behavior also come into play as the court evaluates the best interests of the child. During the trial, it’s your lawyer’s job to present all of this evidence to the court.

What you do or don’t do during your divorce case will affect whether your divorce lawyer is able to present evidence effectively to prove your side of the case. It may also bear upon how much credibility or weight the court gives some of the evidence both sides present.

Next Time in the Series

Next time in the series What you Need to Know About Your Divorce Trial that Your Lawyer May Not Tell You, we’ll step inside the courtroom to prepare you for what to expect on the big day (or multiple days) of your divorce trial.

(If you missed Part I of this series, What you Need to Know About Your Divorce Trial That Your Lawyer May Not Tell You – Has my Lawyer Fallen From the End of the Earth? Don’t fret, you can catch up here.) 

 

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts. 


For More Information:

Learn more about Hightower Reff  Partner Attorney Tracy Hightower.

Find out more about Hightower Reff’s family law services.

If you need help with a Nebraska divorce or other family law case, contact Hightower Reff Law today and come visit with one of the attorneys at the Omaha office. 

What You Need to Know About Your Divorce Trial that Your Lawyer May Not Tell You – Part I, Has my Lawyer Fallen from the End of the Earth?

What You Need to Know About Your Divorce Trial that Your Lawyer May Not Tell You

Divorce trials are strange, unfamiliar things to most people. You can feel like you’re in the dark. If your divorce attorney doesn’t do a good job being clear with you, that feeling of being in the dark can turn to mistrust of your lawyer, insecurity, and fear. In this series, What you Need to Know About Your Divorce Trial That Your Lawyer May Not Tell You, I’ll shed some light on your divorce trial.

In this first installment, Has My Lawyer Fallen from the End of the Earth? I’ll explain why your lawyer’s seeming disappearance before trial isn’t a sign he or she has met a bizarre end or doesn’t care about your case. (So hold off on emailing tabloid websites with your proof the world is flat because your lawyer just fell off the edge of it.)

Pre-trial pre-production for your divorce trial

Before any organized presentation, there’s a lot of preparation. That prep is crucial to make sure the presentation is smooth and coherent, and as well thought out as possible. Think of it as pre-production.

Divorce trials are no different. They require a LOT of pre-production. A well prepared attorney generally spends four to five hours of preparation time for every hour they’ll spend in court.

How is that possible? A divorce attorney preparing for a divorce trial or other family law trial has a lot to do.

 

Not proof the world is flat 

Your attorney has a lot on their plate when preparing for your divorce or other family law trial. During the busiest parts of that trial preparation, they may rely on another attorney in the firm, a law clerk, or assistant to help support you. Those trusted members of your divorce team may support you through any questions or issues come up.  If that happens, don’t take it personally; your attorney isn’t blowing you off. They haven’t fallen from the edge of a flat earth, and they certainly haven’t stopped caring about the outcome of your case. It’s quite the opposite.

Your attorney cares so much that they are directing the lion’s share of their time and attention to preparing for your trial. They want to be as prepared as possible for your divorce trial so they can do what you hired them to do: get you the best result they are able to achieve.

Many attorneys miss out on time with their families, other personal events and interests, and even needed rest because they become incredibly focused on preparing for your trial so they can do a good job for you.

An alternative to the tribulations of a divorce trial 

If a divorce trial sounds like it’s not for your circumstance, there’s an alternative: collaborative divorce.  Not every attorney is trained in this amicable divorce option. Also, it’s not appropriate for every case.

At Hightower Reff Law, however, (as well as practicing in traditional adversarial divorce) attorney Scott Hahn and I are both certified collaborative divorce attorneys.

In a nutshell, in collaborative divorce, you and your spouse work with a team of professionals to come up with an agreement to submit to the court. That agreement will become your final Divorce Decree. There’ll be some court involvement to get everything finalized. However, collaborative divorce is usually easier in the end, in part because you have everything agreed upon ahead of time instead of “duking it out” at trial.

There’s more info on collaborative divorce available on the Hightower Reff blog and website.

Next time in the series, What You Need to Know About Your Divorce Trial That Your Lawyer May Not Tell You

Next time in the series What you Need to Know About Your Divorce Trial that Your Lawyer May Not Tell You, I’ll share some ideas on what YOU can do to prepare for your trial to help increase your chances of success.

 

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts. 


For More Information:

Learn more about Hightower Reff  Partner Attorney Tracy Hightower.

Find out more about Hightower Reff’s family law services.

 

If you need help with a Nebraska divorce or other family law case, contact Hightower Reff Law today and come visit with one of the attorneys at the Omaha office. 

Divorce Property Settlement Tax Pitfalls – Hiding won’t Help. Divorce and Taxes Part III

Divorce property settlement tax pitfalls can be an unpleasant post-divorce surprise. Hiding, unfortunately, won’t make the problem go away.

Marital property transfers to one spouse or another during or related to a divorce generally don’t bring tax consequences. However, like most generalities, there are always exceptions.

In Part I of this series, I talked about your divorce dream team. I suggested that, along with an experienced divorce lawyer like those at Hightower Reff law, a tax attorney or a CPA may be a valuable part of your divorce team. Possible divorce property settlement tax pitfalls are yet another reason to consider enlisting a tax pro during your divorce.

Divorce Property Settlement Tax Pitfall 1 – Selling the House 

You must report gain or loss from the sale of jointly owned property on your taxes in the tax year of the sale. Your individual state’s law determines what your share of that gain or loss amounts to. This is another area that can get sticky, and where a tax attorney or CPA can be helpful.

If you sell your primary home when you’re no longer married, watch out. Your tax basis on the capital gain is different than it would have been when you were married. Married couples filing jointly can exclude up to $500,000 of gain from the sale, while single tax filers can only exclude half that amount, at $250,000.

When the Primary Residence Exclusion Doesn’t Count

One of the most common divorce property settlement tax pitfalls happens when a divorcing couple keeps the family home in both of their names after the divorce. It’s often so one spouse can live there with the children until they’re grown.

The spouse who no longer has the house as their primary residence often ends up with an expensive tax consequence when it’s sold years later.

 

IRS Publication 523, Selling Your Home, is a helpful read that includes special rules you should know if you’re separated or divorced and selling a main home.

The non-recognition rule – isn’t always recognized

Usually you don’t pay taxes on division of marital assets because of divorce. That’s because the “non recognition rule” doesn’t recognize a gain or loss on property transfer between spouses or former spouses (so long as the transfer between former spouses is because of divorce.)

However, there are some circumstances in which the IRS considers a property transfer as a gain by one spouse – which means it’s taxable.

 Non-taxable transfers

Some other things you may not think of that you can transfer without tax consequences during or incident to a divorce (under definition of IRS regulations):

  • Health savings account (HSA)
  • Archer medical savings account (MSA)
  • Individual retirement arrangement (IRA)   (stay tuned for more on this)

Next in the series

Next time in the final installment of Divorce and Taxes, we’ll have a look at key points to know about retirement account division roadblocks when it comes to your tax bill.

(If you missed Part I or Part II of the series, you can catch them here.)

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts. 

Author, Hightower Reff  Partner Attorney Tracy Hightower, holds both a Juris Doctor and  a Master of Laws in Taxation. For more about Tracy, visit her profile page.

If you need help with an Omaha area divorce or other Omaha family law case, contact Hightower Reff Law today and come visit with one of the attorneys at the Omaha office

 

Divorce and Taxes Part II – Child Support, Alimony, and Taxes

The certainties of death and taxes are inescapable, as is the certainty that divorce will change your tax situation. If you’re getting divorced, you may need to think about child support, alimony, and taxes – along with other tax issues.

In this series we look at some of the key issues surrounding divorce and taxes, so you can gain the clarity you need to have informed conversations with your attorney and your CPA. That can be important to help them protect your interests.

Last time in the series, we discussed four things to consider when mediating or negotiating your divorce decree. When it comes to our topic for this installment – child support, alimony, and taxes – you may find some surprises.

Child support and taxes 

If you receive child support, you don’t have to report it as income.

If you pay child support, you don’t get to deduct it on your taxes… and you don’t get to claim the child on your taxes just because you pay support. The parent who gets to take the dependency exemption for the child depends upon your Divorce Decree, temporary order, and/or the tax code.

Alimony and taxes – a different animal

Alimony (spousal support) is altogether different than child support when it comes to tax rules. If you receive alimony, you have to report it on your taxes as income. If you pay alimony, your spousal support payments are tax deductible.

Getting slick with spousal support and taxes – a sticking point for the IRS

If your decree structures alimony payments to be high in the first couple of years and then drop off, the IRS may consider those payments to be a property settlement rather than alimony and you may not be able to deduct them.

Know your decree

Be mindful of child and spousal support tax implications when you’re negotiating or mediating your decree – including who will claim exemptions for the children.

 

A word about backsies

If you reach an agreement and a temporary order or final decree is entered, but your spouse changes their mind later, you may want to file your taxes before your spouse. That is unless you need them to sign IRS Form 8332 and they refuse. If that happens, talk to an experienced attorney about enforcement options as soon as you can.

If you don’t need your spouse to sign Form 8332, and they tell you they’re taking the dependency exemption when they aren’t entitled, you may come out ahead if you file first because the IRS will credit the first person who files and claims the exemption.

For more on filing child support and taxes and alimony and taxes, see IRS publication 504.

Next in the series

Next time in the series we look at things to think about when negotiating the property settlement agreement in your divorce.

 

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts. 


Author, Hightower Reff  Partner Attorney Tracy Hightower, holds both a Juris Doctor and  a Master of Laws in Taxation. For more about Tracy, visit her profile page.

If you need help with an Omaha area divorce or other Omaha family law case, contact Hightower Reff Law today and come visit with one of the attorneys at the Omaha office. 

Divorce and Taxes Part I – Four Things to Think About

There’s an old saying that only two things are certain – death and taxes. Thinking about both is usually about as unpleasant as sucking a lemon. Tax consequences of divorce are also a certainty, and can be equally as sour. Unpleasant as it may be, divorce and taxes go hand in hand. That means tax consequences of divorce are a key component to consider when mediating or negotiating your divorce settlement.

In this series we’ll look at some of the key tax issues to think about during your divorce. Having some information going into the process can help gain the clarity you need to have informed conversations with your attorney and your CPA to help them protect your interests.

Your divorce dream team

If you have substantial assets, your divorce dream team should have both substantial legal and financial knowledge. An expert team will give you the best chance of minimizing the negative tax consequences of divorce.

Your team should include an experienced divorce attorney, like ours at Hightower Reff, as well as a tax attorney or an experienced CPA.

When you choose collaborative divorce instead of traditional divorce, a financial expert is routinely a member of your collaborative divorce team, and can help with planning for your divorce and taxes.

First steps – filing status and figuring out a plan

 

For more on filing status and divorce, see IRS publication 504 [LINK TO https://www.irs.gov/publications/p504/ar02.html#en_US_2016_publink1000175818].

Watch for Divorce and Taxes Part II

Next time in the series, in Part II, we look at possible support payment tax pitfalls you may not have pondered when it comes to paying or receiving spousal support or child support.

 

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts. 


Author, Hightower Reff  Partner Attorney Tracy Hightower, holds both a Juris Doctor and  a Master of Laws in Taxation. For more about Tracy, visit her profile page. 

If you need help with an Omaha area divorce or other Omaha family law case, contact Hightower Reff Law today and come visit with one of the attorneys at the Omaha office

Nebraska Child Custody Relocation – Guide to Removal Cases

childcustodyrelocationIf you’re contemplating a move out of Nebraska with your child in the coming new year and you have a custody order in place, you’ll have to get the court’s permission beforehand. As the name of this article implies, these kinds of cases are called Nebraska child custody relocation, or removal cases.

Nebraska child custody relocation cases can be tricky. These are some basics to help make more clear how Nebraska child custody relocation cases work:

 

No temporary orders

Temporary orders allowing you to remove your child from the jurisdiction aren’t allowed in Nebraska. That’s why there’s a faster litigation process and final hearing than in a typical family law litigation case. A faster final hearing allows families to get on with their lives as quickly as possible.

Your contribution is key in your Nebraska child custody relocation case

Whether you’re the parent requesting the move, or the one opposing it, the more evidence your lawyer can show the court to support your position, the better your chances of winning. You play a key role in your lawyer’s ability to do that. You know your circumstances and your child best and can best help your lawyer understand the key elements that he or she will need to prove to the court.

It’s especially important that you communicate well with your attorney and work side by side with them during your Nebraska child custody relocation case. That will enable them to have all the key information about your situation and present it to the court.

Get a lawyer experienced in Nebraska child custody relocation onboard ASAP

Removal cases can be hard to win. It takes an experienced attorney to navigate the sometimes murky waters of Nebraska law when it comes to proving to the judge whether moving away from their other parent is truly in your child’s best interests.

Because things usually move quickly in removal cases and in the circumstances that typically surround the need for an out of state move, it’s important to get a lawyer experienced in Nebraska child custody relocation cases on board as soon as you find out an out of state move is on the horizon – whether you’re the parent moving, or the parent on the other side of the case.

 

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts. 


For details about the author, Hightower Reff  Partner Attorney Tracy Hightower, visit her profile page.

More information about Nebraska child custody removal cases is available here. 

If you need help with a Nebraska child custody relocation or other family law case, contact Hightower Reff Law today and come visit with one of the attorneys at the Omaha office. 

Reasons to Consider Settling Your Nebraska Family Law Case Out of Court

img_3340Divorce, child custody, and other family law cases are among the most emotionally intense kinds of litigation. There are several sound reasons to consider settling your Nebraska family law case out of court.

Court proceedings aren’t punishment

Going to trial isn’t a good way to try to punish or penalize your spouse for their wrongs. Nebraska is a true no-fault divorce state. That means that, in the vast majority of circumstances, your spouse’s status as a giant jerk isn’t going to have any bearing on the outcome of your case.

Also keep in mind that emotions can get the better of you during a family law case. It’s usually a really hard time in your life. Very rarely – if ever – does a trial do anything positive to ease the raw nerves or wounded feelings of a divorcing spouse or to heal a hurting family.

Different options, same outcome –  settling your Nebraska family law case

Whether you reach a divorce settlement agreement through the collaborative divorce process, mediation, or negotiations between your lawyer and your spouse’s lawyer – this infographic outlines some good reasons to consider settlement:

 

Additionally, settling your family law case out of court can save money in the long and short run. Settlement can be less expensive in the short run because it saves the costs of trial – which can be very expensive. In the long run, you and the other party are more likely to follow an order upon which the two of you agreed, as opposed to one decided by the judge. That means you’re less likely to have to spend money going back to court in future.

If you and the other party are able to reach a settlement agreement:

  • your attorneys or the mediator will put it in writing
  • both parties will sign it
  • the judge still needs to approve and sign a Divorce Decree incorporating the provisions of your settlement agreement
  • that Decree will be the court order that you and the other party must follow, unless the court modifies the order down the road

Not for everyone

Settlement isn’t appropriate in every case. However, in the majority of cases, good attorneys can help guide you along the path to reaching an amicable and fair settlement for your Nebraska family law case.

 

This article should not be construed as legal advice. Situations are different and it’s impossible to provide legal advice for every situation without knowing the individual facts. 


For details about the author, Hightower Reff  Partner Attorney Tracy Hightower, visit her profile page.

More information about Hightower Reff’s family law practice is available here.

If you need help with a Nebraska family law case, contact Hightower Reff Law today and come visit with one of the attorneys at the Omaha office.