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DIVORCE FORUM

Jeffrey Urbach to Testify on NJ Collaborative Law Act

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Jeffrey Urbach has been chosen by the NJ Councl of Collaborative Law Practice Groups to testify at a hearing on the Uniform Collaborative Law Act. The hearing, being held by the NJ Law Revision Commission, will take place on Thursday, February 21. He will testify regarding the role of the Financial Neutral, as well as discuss how financial Discovery is handled in a Collaborative Divorce setting. Jeff is permanent seat holder on the Council, and co-founder and Treasurer of the Mid-Jersey Collaborative Law Alliance.

Jeff has over 100 hours of formal mediation training and is on the NJ Roster of qualified economic mediators. His areas of specialty include business valuation, gifting/retirement planning, and healthcare practices (financial management, benchmarking, and valuation of practice). 

 

 

Limit on Mortgage Interest Deduction for Married Filing Separate

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In an interesting 2012 Tax Court case, Bronstein vs. Commissioner, the strict interpretation of the Section 163 limitation on the mortgage interest deduction for married taxpayers filing separately was brought into question.   Faina Bronstein and her husband purchased a $1.3 million home in 2007, taking out a $1 million mortgage. The home was their primary residence. The Bronsteins chose the option of “married filing separate” that year, and Faina deducted all of the mortgage interest paid (which amounted to $50,000). The IRS, using a plain interpretation of the statute, disallowed half of Faina’s deduction. Section 163, the statute governing the $1,000,000 limitation provides that: [Read more…] about Limit on Mortgage Interest Deduction for Married Filing Separate

Pamela Avraham Achieves Fraud Examiner Certification

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Congratulations to Partner Pamela Avraham on her well-deserved certification as a Certified Fraud Examiner (CFE). It comes as no surprise that Pamela passed all four sections of the CFE exam on the first sitting, as she has used her forensic skills in preventing and detecting fraud for over 25 years. Clients who have gained from her expertise are from a wide range of industries, including medical and health care practices and staffing agencies.

Pamela has also applied her forensic accounting abilities in the reconstruction of books and records for fiduciaries, and has frequently prepared court accountings for executors, trustees and guardians. Her unique expertise and experience is reflected in the outstanding success of the U&A forensic team.

NJ Court Rules Discretionary Trust not Included in Alimony Calculation

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The alimony statute, N.J.S.A. 2A:34-23, in determining an alimony award considers “the income available to either party through investment of any assets held by that party.” The question that arose in Tannen v. Tannen, a New Jersey Appellate Division case, is whether income from a discretionary trust falls under the category of “income available”. [Read more…] about NJ Court Rules Discretionary Trust not Included in Alimony Calculation

Property Settlement Agreement Missing “Little” Detail makes for Big Consequences

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Overlooking a minute detail in the Property Settlement Agreement (PSA) is by no means as minor as it may seem. It often results in much grief, wasted time, and squandered money – for both litigants, as well as taxpayers funding the judicial system. In Dawn Zera v. Kevin Krushinski, an incomplete PSA resulted in just that.

Dawn and Kevin were divorced in Jan. 2006. The judgment of divorce (JOD) failed to designate who could claim the children as dependents on his or her tax return. While the JOD ended the marriage, an ensuing nightmare was just beginning. More than six long, costly years of litigation later, on May 22, 2012, the NJ Supreme Court ruled that the parents alternate odd and even years.

The Moral: Divorcing spouses must scrutinize the PSA, making sure the lawyers covered everything. It is wise to have a tax accountant review the PSA for all tax issues.   The investment of time and effort may spare you loads of grief.      

 

Separated Husband’s Will Upheld by Court despite Spouse’s Court Order

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In Estate of Jon den Hollander, an interesting question arose regarding a court order restricting a separated spouse from dissipating marital assets. This order is often established to prevent the deprivation of one’s spouse of equitable distribution. What if the separated husband dies before the divorce is finalized with a will directing his assets to those other than his spouse? Would that be considered, “dissipating marital assets” and therefore be in violation of the court order? [Read more…] about Separated Husband’s Will Upheld by Court despite Spouse’s Court Order