ArvadaDivorce

2011-11-17T10:33:00.001-08:00

LIFE INSURANCE AS ALIMONYUnknown to many clients is the fact that Life Insurance Premiums paid by a spouse to secure future maintenance or child support payments is often allowed as a deduction by the IRS

Innocent Spouse Relief

2010-04-23T10:42:00.000-07:00

It often occurs in a divorce that once the financial data is exchanged that one spouse discovers that he/she had signed a tax return which was fraudulent. There are things that can be done. The person should advise the other party they will file for “innocent spouse” relief with the IRS unless the situation is immediately remedied by cash or other comparable property. If not, the party will proceed and file the appropriate motion with the IRS to hold themselves harmless.

To qualify for “innocent spouse” relief, you must show the following:

1. That you had filed a joint tax return

2. That the return is incorrect

3. That your spouse took deductions that they were not entitled to or failed to report income (in other words, a fraudulent return)

4. That you did not know that the return was fraudulent when filed

If you can show all of the above, you may be able to avoid paying any tax on the tax return

Financial Affidavit Tips

2010-04-12T10:53:00.000-07:00

The most important document for someone going through a divorce is the financial affidavit. More time should be spent on this one piece of paper than all of the other documents combined. The judge’s final decision is heavily influenced by the Financial Affidavit.

Three tips are:

1. Do not underestimate your expenses. It is real easy to miss many of your routine expenses. Toothpaste, towels, shoes, laundry, etc. Most people underestimate their expenses by at least $200 per month.

2. Check the bottom line. Do you have unsecured debt (credit cards) and is it increasing? This is a telltale sign that your expenses are greater than your income.

3. Never exaggerate! The Judge has a pretty good idea as to what the normal family costs are. If you have an expense, put it down, but be careful about padding your expenses. If you have a deficit of $1,000 but your unsecured debt is not increasing, this suggests that you are receiving contributions from a third party, which can be used as income.

Domestic Violence Cases Can Be Won

2010-04-02T13:10:00.000-07:00

It is often a mistake to plea bargain a domestic violence case. The US Supreme Court decision of Crawford v. Washington makes it difficult for the DA to win these cases. The "victim" must appear for trial and for cross-examination. In most cases the defense of self-defense is available and the DA must disprove this defense beyond a reasonable doubt. Also the parties to the event are often drunk which can be used to impeach the "victim"at trial.