Divorce: Case Study

The $5,000 stock trading loss that Spouse B incurred would be a capital loss. But only $3,000 of the loss will be able to be deducted in the current year, the other $2,000 will be a loss carryover.

* Gift Tax: living transfer of property; $14,000/yr/donee exclusion ($28,000 if joint), unlimited marital & charity deduction, once in a lifetime exemption for gifts & estate of $5,340,000

-Spouse B’s $8,000/month for 11 months of income from work because these are taxable wages that are paid to Spouse be for employment.

18) Barbara sells a house with an FMV of $170,000 to her daughter for $120,000. From this transaction, Barbara is deemed to have made a gift (before the annual exclusion) of

(3) What amount of loss is allocable to the limited partner, Dr. Ashin, in this taxable year?

3) the husband did not own the residence individually or as a tenant in common with his wife, in which case there may have been a legitimate reason to transfer the property to tenancy by the entirety other than to avoid a judgment debt.

into a newer home that is located in the suburbs further from his job. The old house was purchased for $140,000 and has a market value of

During the transaction, if the transferor receives boot, section 351(b) requires them to recognize the gain (capital, long-term, or short-term) equal to the lessor of the gain that would be recognized under section 1001 if the transferor were treated as selling property transferred and the fair market value of the boot received. Under section 351(b)(2), no such loss of any realized loss to be recognized (4)(8).

Nothing is included in Decedent’s gross income, because under section 2035(d), Subsection (a) and paragraph (1) of subsection (c) shall not apply to any bona fide sale for an adequate and full consideration in money or money’s worth.

Alimony is a legal obligation to provide financial support to one’s spouse before or after marital separation or divorce. Traditionally, the husband was responsible for paying alimony to a separated or former wife but since the 1970’s, thanks to gender equality movements and now to changing marital laws, both spouses are now legally recognized for paying alimony to one another in cases of marital separation or divorce. Though it is often required to be paid on top of child support, in cases where the separated or divorced couple has children, alimony is an entirely

Spousal maintenance or alimony is discretionary with the Court and is awarded depending on many different factors. If a marriage lasts less than five years, then spousal maintenance is not normally awarded (though there are some exceptions). The “reasonable needs” of the requesting spouse are usually highly considered, but the length of the marriage and earnings are also involved in the Court’s decision regarding spousal maintenance after divorce.

No fault divorce has allowed women and men (and more recently, same sex couples) the option to end their marriage simply because they no longer want to be married. However, this presents new legal questions which need to be answered. The courts must determine alimony, or spousal support. After a marriage, one spouse might need to support the other based on length of the marriage, difference in incomes or lost earning potential. However, determining a fair way to allocate alimony is an important issues to ensure both partners come out of the marriage on equal footing. Establishing new guidelines for alimony is critical to ensuring that there is equality at the end of a marriage.

Whether you are seeking to recover alimony or you are concerned that your spouse will be requesting it, let us

Shoemaker] shall pay to [Ms. Shoemaker], alimony in an amount of Four Thousand Five Hundred Dollars ($4,500.00) per month for Year One (first 12 months), Five Thousand Dollars ($5,000.00) per month for Years Two through Five (second 48 months), and Four Thousand Five Hundred Dollars ($4,500.00) per month for Years Six through Sixteen (final 120 months), for her support, on the first day of each month starting on the first day of August, 2012, for so long as the parties live separate and apart and until the first to occur of any of the following events: (a) death of either party, (b) that date which is sixteen (16) years from the date of this Agreement, or (c) [Ms. Shoemaker] remarries.

It is believed that men are the least affected by divorce. However this doesn’t mean that they do not suffer at all. Indeed, men suffer financially from divorce; they are obliged to support their children as well as their ex-wives. And because before divorce the responsibility was shared by both husband and wife, divorced men cannot always afford to pay alimony, thus they may be