Robert G. Smith, PLLCNew York City Divorce Lawyer | Robert G. Smith, PLLC2024-03-15T22:05:59Zhttps://www.rgsmith.com/feed/atom/WordPress/wp-content/uploads/sites/1604112/2023/02/cropped-smith-site-icon-32x32.jpgOn Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483132024-03-14T22:06:52Z2024-03-15T22:05:59ZEnforcing child support
In an effort to enforce child support orders and ensure that children receive financial support, New York has implemented laws that allow for professional license suspension for non-payment of child support. According to the Office of Temporary and Disability Assistance, falling four months behind on child support payments in New York can result in the suspension of professional, business and occupational licenses.
Professional license suspension can have serious consequences for individuals who rely on their licenses to earn a living. Without a valid license, people may be unable to work in their chosen profession. This can lead to financial hardship and difficulty in meeting child support obligations. Additionally, professional license suspension can damage a person's reputation and make it harder for them to find work in the future.
Addressing unpaid support
It is important for parents struggling to make their child support payments to seek help and explore their options. This may include payment plans or job training and employment assistance. Some parents can modify their child support order. If you are behind on your child support payments and are at risk of having your professional license suspended, take action as soon as possible.
It is important for parents to fulfill their child support obligations to ensure the well-being of their children and avoid legal repercussions. Seeking help and exploring available resources can help parents navigate the challenges of child support enforcement and maintain their professional licenses.]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483122024-02-27T21:29:15Z2024-03-01T21:28:14ZReviewing each party’s finances
The first step in calculating spousal support in a high-asset divorce involves a thorough assessment of the financial situation of both spouses. This includes going over the value of all assets. For example, courts look at properties, businesses, investments and other valuable holdings.
The income and earning potential of each spouse are key factors in determining spousal support. This assessment considers not only the current income but also future earning capacity, bonuses, investments and other financial resources. According to the New York State Unified Court System, courts request pay stubs, each party’s most recent tax return and a Financial Disclosure Affidavit when determining spousal support obligations.
Lifestyle and contributions
The lifestyle and standard of living established during the marriage play a significant role in spousal support calculations. The goal of spousal support is to ensure that both parties can maintain a similar standard of living post-divorce. Courts review each spouse's financial needs and obligations. This includes expenses related to housing, healthcare, education and other financial responsibilities. The contributions of each spouse to the accumulation of wealth and assets during the marriage are also considered. This includes non-financial contributions, such as homemaking, childcare or support in building a business or career.
By understanding the key factors involved in calculating spousal support in a high-asset divorce, people can work towards reaching a fair outcome that addresses the financial needs of both parties involved.]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483112024-02-13T23:17:05Z2024-02-16T23:16:59ZWhen does a mother have to pay child support?
In New York, child support rules help ensure children receive financial support from both parents after a divorce or separation. This lasts until the child reaches 21 or when the child becomes a self-supporting adult. The court determines the amount of support by considering several factors, including each parent's income and the child's needs.
Typically, the noncustodial parent pays child support to the custodial parent. This means a mother who was the breadwinner may have to pay child support if primary physical custody goes to the co-parent, whether that is the father or the other mother in a same-sex divorce.
What happens if a mother refuses to pay child support?
If a mother in New York refuses to pay child support, she will likely face consequences. The custodial parent can file a petition with the court to enforce support payments. The court can then order the mother to pay the overdue support, possibly with added interest.
If the mother continues to refuse, the court has various enforcement options. These can include wage garnishment, where the state takes money directly from the mother's paycheck, or the seizure of assets, including bank accounts or property. The court can even suspend the mother's driver's license or professional license until she meets her child support obligations.
Though fathers have traditionally been the ones to pay child support, more circumstances now exist where a mother might be the noncustodial parent who pays a co-parent. In any case, parents should follow the court’s decisions on support and custody to avoid problems.]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483102024-01-31T20:05:01Z2024-02-02T20:04:53ZLength of marriage matters
The duration of spousal support in New York is often influenced by the length of the marriage. In shorter marriages, the support period may be shorter compared to marriages of longer duration. Short-term marriages may result in spousal support for a limited period, typically to allow the receiving spouse time to become financially independent.
Financial circumstances determine duration
Financial circumstances play a significant role in determining how long spousal support payments will continue. The court considers factors such as each spouse's income, earning potential and financial needs. If one spouse requires financial assistance to maintain a certain standard of living or to re-enter the workforce, the support duration may be longer.
Consideration of rehabilitation
In cases where one spouse sacrificed career opportunities or education for the benefit of the marriage, the court may order spousal support for a duration that allows the receiving spouse to rehabilitate their earning capacity. This can involve obtaining education or training to secure employment that provides sufficient income for self-support.
Changes in circumstances
The duration of spousal support is not always set in stone. In some cases, circumstances may change, warranting a modification of the support order. For example, if the receiving spouse secures a well-paying job or remarries, the court may reconsider the duration of support payments.
While divorce rates in the U.S. continue to decline, as do marriages, dissolving a union comes with a financial impact. For some, it may mean providing spousal support to help both spouses embark on new beginnings with financial stability.]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483092024-01-25T16:39:47Z2024-01-25T16:39:47ZEvaluate investment holdings
When a couple decides to part ways, their investment portfolios become a focal point. The first step is to evaluate the existing holdings. This involves a comprehensive analysis of stocks, bonds, real estate and any other investments accrued during the marriage.
Division of assets
In a high-asset divorce, the equitable distribution of assets is a key principle. This means that investments acquired during the marriage are typically subject to division. However, the division may not always be a straightforward 50-50 split. Factors like the contribution of each spouse and the duration of the marriage can influence the distribution of investments.
Impact on investment strategies
As the divorce process unfolds, individuals may find it necessary to reassess their investment strategies. The need to adjust risk tolerance, reallocate assets or even liquidate certain investments can arise. This is especially true when there is a significant discrepancy in the financial goals and risk appetite of the divorcing parties.
Tax implications
Divorce can have tax implications for investment portfolios. Asset transfers between spouses, if not handled correctly, may trigger capital gains taxes. Understanding the tax consequences is necessary to make informed decisions about the restructuring of investment portfolios.
While New York has a divorce rate below the national average at 2.2 divorces per 1,000 population, many couples grow apart. As they embark on separate financial journeys, the careful management of their investment portfolios becomes instrumental in shaping their financial futures]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483082024-01-18T18:13:52Z2024-01-19T18:13:45Z1. Strategic financial planning
Developing a comprehensive financial plan is necessary when facing spousal maintenance obligations. Begin by assessing your current financial situation, including income, expenses and assets. Identify areas where you can cut unnecessary costs to allocate funds towards maintenance payments. Creating a budget and sticking to it will help you manage your finances more efficiently.
2. Negotiate fair terms
During divorce proceedings, negotiating fair terms for spousal maintenance is important. Open communication with your ex-spouse can lead to mutually agreeable solutions. Consider proposing a structured payment plan that aligns with your financial capacity. By being proactive in negotiating terms, you may find a middle ground that minimizes the financial impact on both parties.
3. Asset structuring
Carefully structuring your assets can also play a significant role in minimizing the impact of spousal maintenance. Consider exploring options for redistributing assets in a way that aligns with legal requirements while mitigating the financial impact of maintenance payments.
4. Reassess support modifications
Periodically reassessing spousal maintenance agreements can be a pragmatic strategy. Changes in circumstances, such as job loss or health issues, may warrant modifications to the maintenance terms. Being proactive in reassessing and, if necessary, modifying these terms can help individuals adapt to changing financial situations.
Considering that 689,308 divorces happened in 2021, it demonstrates that not all marriages last. As you work toward a fresh start, adopting proactive strategies regarding spousal maintenance can help individuals navigate the challenges of divorce with greater financial resilience]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483072024-01-08T20:24:52Z2024-01-08T20:24:52Z1. Strategic asset division
When dividing assets, opt for a strategic approach. Instead of merely splitting everything down the middle, consider the tax consequences of each asset. Certain assets may have varying tax implications upon sale or transfer. By strategically dividing assets, you can potentially minimize the tax impact for both parties involved.
2. Utilize tax credits and deductions
Explore available tax credits and deductions that can ease the financial burden of divorce. For example, if there are dependent children, ensure that the custodial parent claims the appropriate tax credits. Additionally, certain expenses related to the divorce process may be tax-deductible. Carefully review the tax code to identify opportunities that align with your circumstances.
3. Retirement account management
High-asset divorces often involve substantial retirement accounts. When dividing these accounts, be mindful of the tax implications. Work with financial professionals to determine the most tax-efficient way to distribute retirement assets. By doing so, you can avoid unnecessary tax penalties and preserve more of your hard-earned savings.
4. Real estate transactions
Real estate holdings are common in high-asset divorces. Be cautious when dealing with these assets to minimize tax consequences. Consider potential capital gains taxes and explore options such as a 1031 exchange for investment properties, which allows for the deferral of capital gains taxes.
With a divorce rate of 2.2 per 1,000 population in 2021, no New York couple is immune to separating. For those with high assets, a proactive approach can help protect your financial well-being.]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483052023-12-21T19:39:51Z2023-12-21T19:39:51Z1. Fair distribution of assets
A business valuation provides an objective and fair assessment of the business's worth, ensuring an equitable distribution of assets between divorcing spouses. Without a clear understanding of the business's value, dividing assets can become a contentious issue. Valuation helps prevent disputes and ensures that each party receives a fair share of the business's value.
2. Informed decision-making
Knowledge is power. In the realm of divorce, informed decisions are important. A comprehensive business valuation equips both parties with the necessary information to make sound decisions about the future. Understanding the financial health and value of the business allows for more informed negotiations and settlements.
3. Establishing a basis for financial planning
Divorce often brings financial uncertainties. A business valuation serves as a foundational element for future financial planning. With a clear understanding of the business's value, divorcing couples can develop realistic financial goals and establish a framework for their post-divorce financial stability.
4. Facilitating buyout or sale options
In many cases, one spouse may wish to retain ownership of the business while the other seeks to exit. A business valuation facilitates this process by establishing a fair market value. This valuation becomes important when determining a buyout arrangement or exploring the possibility of selling the business to an external party.
For people running a family business, they are the heartbeat of America as family-owned businesses account for 54% of all U.S. businesses. When divorce happens, a business evaluation is key to navigating the complex situation.]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483042023-12-12T18:58:30Z2023-12-12T18:58:30ZWho bore primary responsibility for the pet?
Courts want to know who bought the pet. Generally, if one person came into the marriage with the pet, he or she remains with that individual. However, the court also wants to know who took care of the pet during the marriage since that person is more likely to continue providing decent care after the divorce. Care includes activities like feeding, grooming, walking and bringing the animal to the veterinarian. It may also include paying for pet supplies and medical care.
Who has the financial ability to continue caring for the pet?
Pets can be expensive, especially if they have special needs. Many purebred animals need extra attention or pricier supplies. Courts assess each spouse's capacity to provide for the pet's needs, including medical care, quality food and a suitable living environment. They want to ensure that the pet continues to enjoy a comfortable and stable life after the divorce.
Are there minor children attached to the pet?
If there are minor children, courts may take their relationships with pets into account. Maintaining stability and continuity in the lives of children is a priority, and if there exists a strong pet-child bond, it may influence the court's decision on ownership.
According to the American Pet Products Association, 70% of U.S. households had a pet of some sort in 2021 and 2022. Pets can be a major source of controversy during a divorce. Mediation can help divorcing couples reach an amicable solution, but when they cannot agree, the court generally places pets based on their best interests. This applies to domestic pets, not farmyard animals.]]>On Behalf of Robert G. Smith, PLLChttps://www.rgsmith.com/?p=483032023-11-30T18:15:26Z2023-11-30T18:15:26ZValuation
The first step in navigating the division of high-value artwork is determining its worth. Accurate valuation is necessary for a fair distribution of assets.
New York follows the principle of equitable distribution, meaning the fair but not necessarily equal division of assets. Professional appraisers, well-versed in the art market, can provide an unbiased assessment of the artwork's value. Valuations often surprise people. For example, even larger paintings by emerging artists can be worth $10,000 to $15,000.
Provenance
Provenance, the history of ownership of an artwork, can greatly impact its value. Clear documentation tracing the ownership back to its creation can bolster one party's claim over another. In a divorce involving high-value art, establishing a transparent chain of ownership becomes necessary. Collecting provenance records and consulting with experts in art history can strengthen one's position during negotiations.
Tax implications
High-value artwork, if someone sells or transfers it, may incur capital gains tax. It is necessary to factor in these potential tax implications during negotiations.
Collateral
In some cases, artwork may serve as collateral for financial arrangements or debts during the marriage. Understanding any existing financial encumbrances on the artwork is important. Unraveling these complexities requires a meticulous examination of financial records and agreements.
Navigating these intricacies with a strategic and informed approach can result in a fair and equitable resolution.]]>