{"id":2872,"date":"2016-10-27T19:09:21","date_gmt":"2016-10-27T19:09:21","guid":{"rendered":"http:\/\/www.ua-cpas.com\/?p=2872"},"modified":"2019-01-28T02:40:06","modified_gmt":"2019-01-28T02:40:06","slug":"divorce-savings-retirement-alimony","status":"publish","type":"post","link":"https:\/\/www.ua-cpas.com\/blog\/index.php\/2016\/10\/27\/divorce-savings-retirement-alimony\/","title":{"rendered":"Divorce: Savings &#038; Retirement- Alimony Considerations"},"content":{"rendered":"<p>At some point in the difficult divorce process you will be asked to fill out a <span style=\"color: #800080;\">CIS (Case Information Statement<\/span>).<\/p>\n<figure id=\"attachment_3507\" aria-describedby=\"caption-attachment-3507\" style=\"width: 279px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3507\" src=\"https:\/\/www.ua-cpas.com\/blog\/wp-content\/uploads\/2016\/10\/divorce2.jpg\" alt=\"\" width=\"279\" height=\"180\" \/><figcaption id=\"caption-attachment-3507\" class=\"wp-caption-text\">Divorce-Savings Consideration<\/figcaption><\/figure>\n<p>The CIS is a financial disclosure document which, among other things, establishes your standard of living while married.<\/p>\n<p><em>Schedule C<\/em> of the CIS has a line where you put your historical savings\/investments. Although the CIS shows monthly expenses (assuming 4.3 week\/mo.), simply take your annual savings and divide by 52 and multiply by 4.3. Many people fund their retirement plans once a year, so it\u2019s easy to forget this when filling out the form.<\/p>\n<p>This includes <em>all<\/em> savings, not only what you may be contributing to your 401K or another pension plan. It also includes IRAs, Sec. 529 Plans, and non-retirement related investments.<\/p>\n<p>Although this has been a long-established principle, it recently grabbed the attention of the legal community and the forensic CPAs who assist them. On September 12, 2016, the N.J. Appellate Division issued a ruling in the matter of <span style=\"color: #800080;\"><em>Lombardi v. Lombardi<\/em><\/span>.<\/p>\n<p><span style=\"color: #800080;\">The Court ruled:<\/span><\/p>\n<p style=\"padding-left: 30px;\"><span style=\"font-size: 10pt;\">It is well-established that the accumulation of reasonable savings should be included in alimony to protect the supported spouse against the loss of alimony\u2026<\/span><\/p>\n<p style=\"padding-left: 30px;\"><span style=\"font-size: 10pt;\">We disagree with the court&#8217;s decision and hold that regular <em>savings must be considered in a determination of alimony <\/em>(emphasis added), even when there is no need to create savings to protect the future payment of alimony.<\/span><\/p>\n<p style=\"padding-left: 30px;\"><span style=\"font-size: 10pt;\">The decision is a good reminder that when meeting with your attorney it\u2019s imperative to tell him\/her about the pattern of savings you enjoyed during the marriage. If you have access to monthly or year-end statements from financial institutions holding your money, make sure you give them to your attorney.<\/span><\/p>\n<p>Urbach &amp; Avraham has almost a thirty-year history of providing attorneys and their clients tax, forensic, and other advice in current or post-divorce matters. Feel free to call or email if you have any questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At some point in the difficult divorce process you will be asked to fill out a CIS (Case Information Statement). The CIS is a financial disclosure document which, among other things, establishes your standard of living while married. Schedule C of the CIS has a line where you put your historical savings\/investments. Although the CIS [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,3,5],"tags":[43,55,69,126],"class_list":{"0":"post-2872","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-alimony","7":"category-alternative-dispute-resolution","8":"category-divorce-forum","9":"tag-alimony","10":"tag-case-information-statement-cis","11":"tag-divorce","12":"tag-life-style-alimony","13":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=2872"}],"version-history":[{"count":2,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2872\/revisions"}],"predecessor-version":[{"id":3509,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2872\/revisions\/3509"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=2872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=2872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=2872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}