Steps To Take Before Divorcing

Before a couple decides that their marriage is over and a divorce is inevitable it is advisable to seek out alternative options.  While not every marriage is salvageable it is best to be sure yours isn’t before taking the step to dissolve it permanently.  Divorce is a difficult process not only for you and your spouse but also for your children and extended family.  Strongly consider looking into some or all of the options below before calling it quits.  Divorce is the last step in marriage and considerably one that should be worked to avoid.  

Seek out the advice of a divorce attorney even as you try to salvage your marriage as they can also help you to protect yourself in this volatile state.  A divorce attorney has critical advice to share as well as contacts within your local community to help you as you salvage your marriage and thereafter if divorce is the chosen option in the end. 

Marriage counseling is the first step that is often recommended to couples who are struggling to keep their marriage intact.  Marriage counseling takes commitment and work from both partners to have any hope at success.  Counseling will help you identify problems in the marriage and work towards resolution.  Even if in the end you feel like a permanent separation in the form of divorce is needed you and your spouse should take away a good deal of information to help lead towards productive communication as issues come about in the divorce and custody process.

A trial separation may be a next step to consider as it will allow you and your spouse to work on your issues apart.  The hard part of a trial separation is when it comes to your children.  Try to work out a solution that allows you to separate but not uproot the children and their day to day routine and activities.  The space that comes with a trial separation is invaluable.  In order for this to be an effective manner in which you continue to work on your marriage you must work together.  Create a timeline so that both parties have specifics on how long the separation will last and what each of you desires upon reconciliation. 

When moving forward with either of the above options or both of them it is important that you seek advice from an attorney specializing in divorce.  Seeking council should not be considered a step closer to the dissolution of your marriage but instead as a way to protect yourself if in fact a divorce is inevitable even after marriage counseling and/or a trial separation. 

Longton DM, a subsidiary of Longton Law Offices is a divorce attorney specializing in Women/Mom's in divorce throughout Trenton and the surrounding Michigan areas. Find us at http://www.michigandivorcelawyerforwomen.com.

Focusing On The Positive Effects Of Divorce On Your Children

The effects your divorce has on your children don’t all have to be negative.  Some aspects of divorce can actually affect your children in a positive manner.  If your marriage is one of unhappiness and void of love and respect your children see this hurt every day.   So even though divorce will be difficult on your children positives may occur.  Your children’s reality is built around you both as parents.  This does not mean that it is the only way in which this can occur is under the same roof. 

There will be issues that come and go with having parents under separate roofs but they are not any worse than those that can arise with two parents under one roof that are not working as a one.  There are several ways in which parenting together under different roofs leaves your children better off than the alternative. 

Communication is the key to ensuring your kids are not afflicted by the negative effects divorce can have on them.  The dissolution of your marriage and those issues are between the two of you and have absolutely nothing to do with the children you created together.  Leave your children out of the discussion that surround finances, property division, custody agreements and such.  Let your kids be kids.  When you are with them communicate in an appropriate manner with your ex.  Be civil enough to communicate with one another with the details surrounding visits as well as the children’s day to day life.  You don’t have to agree but those are the details that should be left out when talking with your children or when they are in ear shot.

Your children should not be expected to change the lifestyle they are accustomed to because of your divorce.  This is something that is not always possible but working together should be probable.  Money spent on your children, for your children and such is just that, money spent on the children you chose to have together.   If your children are accustomed to having a cell phone for instance, this is not an expense that is normal to be included when deciding upon a reasonable monthly child support stipend.  Make arrangements with your ex to split the bill no matter whose name the bill is under.  These situations will arise time and time again with driver’s education, school field trips or outings with friends.  Be clear that the money that is spent for child’s support if used for the basic necessities such as food, clothing and shelter.  The extras should not be expected to be taken from this fund.

The effects of your divorce on your children will depend on the two of you.  Good communication does not mean that you agree on each and every decision what is does mean is that the effects of your divorce on your children will be more positive then negative.

Longton DM, a subsidiary of Longton Law Offices is a divorce attorney specializing in Men/Dad’s in divorce.  For experienced representation throughout the divorce process in Trenton, Michigan and the surrounding area you can find more information at http://www.michigandivorcelawyerfordad.com.

Planning For Summer As A Divorced Parent

Summer is a tricky time for divorced parents.  Below you will find some hands on tips to create a summer with less stress and minimal conflict.

A key element to summer is structure.  Parents who are separated or divorced must have a plan in place that helps to define how their children time will be spent throughout the summer months.  If planning your children’s summer out together is too much for the two of you to handle alone meet with your divorce attorney’s present with a mediator to establish clearly the division of time.  This way each parent can structure their children’s summers as they see fit when they are in their custody.  If one parent is pro summer camp then set up an arrangement where they attend camp while with that parent and they also assume the cost.

Expenses throughout the summer need to be planned out carefully.  Childcare is large expense that may not have been a part of the equation in past summers.  Again, the cost of childcare is something that needs to be specifically addressed.  Clarity with these situations will help prevent surprises.  This process can be seamless with the help of your divorce attorney and a mediator.

Summer can often be a time of last minute changes.  This may not work well if you are not able to communicate with your ex-spouse.  To avoid any unnecessary conflicts for your children don’t assume that your last minute plans and changes will not be met with resistance.  When these occasions occur put yourself in their shoes.   The changes you are making may interfere with plans that they have set in stone.  Follow the written plan that is in place.  If you need to make changes or are asking for your ex to adjust time request the change in writing with as much advanced warning as possible.  Don’t put your children in the middle if your spouse declines and chooses to remain true to the schedule set in place.

Try to put all other personal conflicts aside when working out a parenting plan for the summer.  Detach yourself from other conflicts and divide them into smaller more manageable pieces.  Don’t let your feelings towards one another affect summertime fun.  Never try to outdo each other.  Your goal as parents throughout the summer should be clearly defined, financially reasonable and simple to accomplish.  It is only three months; a plan should be established and followed by both parents.

Don’t involve your children in summertime conflicts.  Make sure that summer is kept carefree and filled with memories.  Memories don’t cost money.   Make sure you understand even the simplest day trip can make a long lasting impression upon your child.  After a divorce it is especially important to understand that your children want your time and attention not fancy vacations and non-stop summer camps.

Longton DM, a subsidiary of Longton Law Offices is a divorce attorney specializing in Men/Dad’s in divorce.  For experienced representation throughout the divorce process in Trenton, Michigan and the surrounding area you can find more information at http://www.michigandivorcelawyerfordad.com.

Overcoming The Challenges Summer Brings To Divorced Parents

Summer vacation is a difficult time for many working parents.  It is stressful to consider what your children will be doing day in and day out throughout the summer while you are working.  Will they be at summer camp?  How will you afford that extra expense or that of child care?  The challenges faced double when it comes to couples that are divorced and sharing time and expenses.  Below are some of the most common mistakes when it comes to summertime with divorced parents.

Summertime is not the time to have a vague parenting plan or a non-existing one.  A detailed parenting plan is necessary in the summer to make for hassle free planning.  It can also help to avoid the monetary issues related summer plans and your children.  Before summer begins have a detailed written plan that states exactly what weeks the children will be with each parent as well as who is to pay for camps, childcare and other extra activities that come about during the summer.  This will help circumvent issues before they arise.

As a result of the divorce there are fewer finances available for summertime fun.  With this in mind it is important to remember that not everything your children did during the summer prior to the divorce is going to be financially able to be done now.  Money is divided differently and therefore activities that are done are different as well.  This is also the case if one parent stayed home with the children during the summer before you were divorced.  This luxury is most likely not available to parents that are newly divorced and childcare will need to be planned and budgeted for.   It is important to remember that fun times and memories of childhood summers don’t come from money spent rather time spent.

With divorce comes conflict between parents and differences of opinions.  This happens a lot with divorce, parental styles tend to change and summer time makes this more evident than ever before.  When parents are not on the same wave length when it comes to parenting the children can often feel the stress.  Don’t allow yourself to be succumbed to arguing over each and every detail that summer brings.

To avoid chaos over summer vacation it is important that you meet with your divorce attorney to ensure that your parenting plan is detailed and realistic.  If nothing is in place addressing summer directly it is important to have a meeting of the minds.  If there are drastic differences you may want to meet with your divorce attorneys and a mediator to establish a plan, a routine and a financial order to cover the bases of summer.

Longton DM, a subsidiary of Longton Law Offices is a divorce attorney specializing in Women/Mom’s in divorce throughout Trenton and the surrounding Michigan areas. Find us at http://www.michigandivorcelawyerforwomen.com.

Overcoming The Challenges Summer Brings To Divorced Parents

Summer vacation is a difficult time for many working parents.  It is stressful to consider what your children will be doing day in and day out throughout the summer while you are working.  Will they be at summer camp?  How will you afford that extra expense or that of child care?  The challenges faced double when it comes to couples that are divorced and sharing time and expenses.  Below are some of the most common mistakes when it comes to summertime with divorced parents.

Summertime is not the time to have a vague parenting plan or a non-existing one.  A detailed parenting plan is necessary in the summer to make for hassle free planning.  It can also help to avoid the monetary issues related summer plans and your children.  Before summer begins have a detailed written plan that states exactly what weeks the children will be with each parent as well as who is to pay for camps, childcare and other extra activities that come about during the summer.  This will help circumvent issues before they arise.

As a result of the divorce there are fewer finances available for summertime fun.  With this in mind it is important to remember that not everything your children did during the summer prior to the divorce is going to be financially able to be done now.  Money is divided differently and therefore activities that are done are different as well.  This is also the case if one parent stayed home with the children during the summer before you were divorced.  This luxury is most likely not available to parents that are newly divorced and childcare will need to be planned and budgeted for.   It is important to remember that fun times and memories of childhood summers don’t come from money spent rather time spent.

With divorce comes conflict between parents and differences of opinions.  This happens a lot with divorce, parental styles tend to change and summer time makes this more evident than ever before.  When parents are not on the same wave length when it comes to parenting the children can often feel the stress.  Don’t allow yourself to be succumbed to arguing over each and every detail that summer brings.

To avoid chaos over summer vacation it is important that you meet with your divorce attorney to ensure that your parenting plan is detailed and realistic.  If nothing is in place addressing summer directly it is important to have a meeting of the minds.  If there are drastic differences you may want to meet with your divorce attorneys and a mediator to establish a plan, a routine and a financial order to cover the bases of summer.

Longton DM, a subsidiary of Longton Law Offices is a divorce attorney specializing in Women/Mom’s in divorce throughout Trenton and the surrounding Michigan areas. Find us at http://www.michigandivorcelawyerforwomen.com.

Planning For Summer As A Divorced Parent

Summer is a tricky time for divorced parents.  Below you will find some hands on tips to create a summer with less stress and minimal conflict.

A key element to summer is structure.  Parents who are separated or divorced must have a plan in place that helps to define how their children time will be spent throughout the summer months.  If planning your children’s summer out together is too much for the two of you to handle alone meet with your divorce attorney’s present with a mediator to establish clearly the division of time.  This way each parent can structure their children’s summers as they see fit when they are in their custody.  If one parent is pro summer camp then set up an arrangement where they attend camp while with that parent and they also assume the cost.

Expenses throughout the summer need to be planned out carefully.  Childcare is large expense that may not have been a part of the equation in past summers.  Again, the cost of childcare is something that needs to be specifically addressed.  Clarity with these situations will help prevent surprises.  This process can be seamless with the help of your divorce attorney and a mediator.

Summer can often be a time of last minute changes.  This may not work well if you are not able to communicate with your ex-spouse.  To avoid any unnecessary conflicts for your children don’t assume that your last minute plans and changes will not be met with resistance.  When these occasions occur put yourself in their shoes.   The changes you are making may interfere with plans that they have set in stone.  Follow the written plan that is in place.  If you need to make changes or are asking for your ex to adjust time request the change in writing with as much advanced warning as possible.  Don’t put your children in the middle if your spouse declines and chooses to remain true to the schedule set in place.

Try to put all other personal conflicts aside when working out a parenting plan for the summer.  Detach yourself from other conflicts and divide them into smaller more manageable pieces.  Don’t let your feelings towards one another affect summertime fun.  Never try to outdo each other.  Your goal as parents throughout the summer should be clearly defined, financially reasonable and simple to accomplish.  It is only three months; a plan should be established and followed by both parents.

Don’t involve your children in summertime conflicts.  Make sure that summer is kept carefree and filled with memories.  Memories don’t cost money.   Make sure you understand even the simplest day trip can make a long lasting impression upon your child.  After a divorce it is especially important to understand that your children want your time and attention not fancy vacations and non-stop summer camps.

Longton DM, a subsidiary of Longton Law Offices is a divorce attorney specializing in Men/Dad’s in divorce.  For experienced representation throughout the divorce process in Trenton, Michigan and the surrounding area you can find more information at http://www.michigandivorcelawyerfordad.com.

After divorce, what happens to your employer stock options?

According to the general rule for transfers of assets between spouses or ex-spouses under a divorce property settlement, the transfers are treated as gifts between spouses for federal tax purposes. As such, the transfers are federal-income-tax-free and gift-tax-free. This is good.

When this favorable general rule applies, the transferee spouse (the person who receives the asset in the divorce settlement) takes over the transferor spouse’s tax basis and holding period for the transferred asset. So when the transferee spouse subsequently sells the asset, he or she recognizes taxable gain or loss as if he or she had owned the asset from the outset. On the other side of the coin, there’s no tax impact on the transferor spouse (the person who gives up the asset in the property settlement) when the general rule applies.

Warning: Divorce-related transfers to a nonresident alien spouse don’t qualify for such benign treatment: they are considered to be taxable transactions that can trigger taxable gains or losses.

Federal income tax consequences for divorce-related transfers of vested employer stock options

What happens with a divorce-related transfer of vested employer stock options from the employee spouse to the non-employee spouse pursuant to a divorce property settlement? Good question. Read on for the answers.

For instance, assume Spouse A (the employee spouse) owns vested nonqualified employer stock options (NQSOs) that she received as compensation from her employer. Because the NQSOs are not publicly traded, Spouse A was not taxed upon receiving the options. Assume that under applicable state law, the NQSOs are considered marital property. Therefore, Spouse A is require to transfer some of her NQSOs to Spouse B (the non-employee spouse) pursuant to the couple’s divorce property settlement. Sometime later, Spouse B exercises the NQSOs. At that time, the fair market value (FMV) of the stock is above the option exercise price.

The IRS says the transfer of vested NQSOs from Spouse A to Spouse B falls under the general tax-free transfer rule (assuming the non-employee spouse is not a nonresident alien). Therefore, the transfer has no immediate federal income tax consequences for either spouse. However, upon exercising the NQSOs, Spouse B must recognize taxable income equal to the difference between the fair market value (FMV) of the option shares and the exercise price (the “spread”). This profit is ordinary income (as opposed to capital gain) because Spouse B is treated as if he received the NQSOs as compensation from his employer. (Source: IRS Revenue Ruling 2002-22.)

If the vested employer options in question are incentive stock options (ISOs), the federal income tax outcome is the same, because an ISO cannot be transferred to or exercised by a person other than the employee to whom the option was granted (except by reason of the employee’s death). Therefore, when an ISO is transferred to a non-employee spouse, it instantly ceases to be an ISO and instantly becomes an NQSO, and the federal income tax outcome is exactly the same as explained above.

These federal income tax rules are favorable to the employee spouse (the person who gives up the options in divorce), because he or she faces no further tax consequences after the divorce-related transfer. The non-employee spouse (the person who receives the options in the divorce-related transfer) bears all the federal income tax consequences.

Federal employment tax implications

The IRS has also issued rules on the federal employment tax consequences of divorce-related transfers of vested employer stock options. By federal employment taxes, I mean Social Security tax, Medicare tax, federal unemployment tax (FUTA), and federal income tax (FIT) withholding. Here’s the drill.

When the general tax-free transfer rule applies (which will usually be the case), the transfer itself does not trigger any federal employment taxes. However, when the options are subsequently exercised by the non-employee spouse, federal employment taxes are triggered to the same extent as if the employee spouse had retained the options and exercised them.

So the non-employee spouse may be hit with withholding for Social Security tax (at a 6.2% rate), will definitely be socked for Medicare tax (at a 1.45% rate), and may be hit with the new 0.9% additional Medicare tax for high earners too. To make this completely clear, the amount of withholding for these taxes is determined by the employee spouse’s year-to-date earnings from the employer. However, the taxes are actually withheld from the non-employee spouse (the person who exercises the option). This is fair and just, because the non-employee spouse is the one who reaps the economic benefit from exercising the option.

Finally, federal income tax must also be withheld from the non-employee spouse. The non-employee spouse can then claim a credit for the withholding on his or her federal income tax return. Source: IRS Revenue Ruling 2004-60.

You own vested NQSOs received as compensation from your employer. The options give you the right to buy 10,000 shares of employer stock at an exercise price of $15 per share. The options expire on 12/31/15. In 2015, you and your spouse are divorced. As part of the divorce property settlement, your ex receives half of your NQSOs.

The transfer of the vested NQSOs from you (the employee spouse) to your ex (the non-employee spouse) has no immediate tax consequences for either party.

Assume that later in 2015, your ex exercises the NQSOs by acquiring 5,000 shares for $15 each at a time when the stock is worth $25 per share. Your ex must recognize 2015 ordinary income of $50,000 (5,000 shares x $10 “spread” per share). Federal income and employment taxes will be withheld from your ex. The exercise has no tax impact on you.

The bottom line

You now understand the federal income and employment tax consequences for most divorce-related transfers of vested employer stock options. The rules actually make sense and are fair to the divorcing individuals.

I don’t say this very often, but thank you, IRS!

Original Source: http://www.marketwatch.com/story/after-divorce-what-happens-to-your-employer-stock-options-2015-04-21?page=1