Towe, Ball, Mackey, Sommerfeld & Turner, PLLP
Call for a free consultation
Toll Free:800-838-3083

North Billings Personal Injury Law Blog

Alimony decisions have tax implications during divorce

An essential aspect of dealing with the end of a marriage in Montana is planning for the tax-related consequences. Unfortunately, taxes are often among the least understood aspects of a divorce. A couple of tips may help with addressing taxes and another particular divorce matter that often sparks conflict: alimony.

If one spouse earns a lot more than the other spouse, that spouse may end up having to pay alimony, or spousal support, to the other spouse following the divorce. However, different tax strategies may be utilized to shift earnings from the better-paid spouse to the spouse who earns less. One of these strategies involves providing what is called unallocated support.

Head-on car accidents often have fatal consequences

Sadly, a car accident has taken the life of a woman in Montana. The motor vehicle crash occurred on a recent Sunday morning. These types of car accidents sometimes occur due to the carelessness of a fellow motorist, in which case the at-fault driver may face claims for financial responsibility in the civil court system.

The recent Montana accident was a head-on collision that took place near Glacier Park International Airport. According to authorities, a 40-year-old woman was driving an automobile along U.S. Highway 2. She suddenly breached the highway's center line at around 11:30 a.m.

Child, spousal support can be challenging aspects of divorce

Dissolving a marriage in Montana is often something couples never planned to do. Thus, when they finally do decide to get a divorce, they may be at a loss when it comes to what steps to take. A couple of tips may help with tackling some of the biggest issues that crop up during the dissolution of a divorce, namely those involving financial support.

Child support is often a major area of contention during divorce. A judge typically determines how much one spouse will end up paying the other one. Naturally, the spouse who will receive money may be concerned about not receiving a fair amount, whereas the paying spouse may be worried about having to pay an unreasonably high amount.

Divorce matters have tax implications

When going through the divorce process in Montana, taxes might not necessarily be a huge area of focus. However, taxes can have a major impact on one's wallet. A few tips may help with navigating the world of taxes as it relates to divorce.

First, when it comes to child support, support payments cannot be deducted, and for those who receive child support, it will not be taxed. With regard to alimony -- or spousal support -- received, however, these payments are taxable in the year they are received. This type of support is not subject to withholding tax, so increasing the tax paid during the year may be necessary to avoid being penalized. This can be done by making estimated payments or boosting the quantity of tax withheld from one's wages.

Child custody debates can be strenuous for children

About 50 percent of children born in the 1990s are expected to experience the split-up of their parents. Unfortunately, divorce can be just as emotionally difficult on the children as it is on the parents. However, a few tips may help with easing the pressure that children feel when their parents are tackling child custody matters during divorce in Montana.

First, letting the children know they are loved is paramount. The divorce process is often characterized by uncertainty and the lack of stability regarding the future for both parents and children. Depending on the age of a child, his or her emotions may range from being afraid of abandonment to being angry. In light of this, parents may help their children by reassuring them that they are committed to caring for them.

Knowing financial situation important first step in divorce

Getting divorced is both an emotional and financial event. Because divorce typically involves two people who are angry and bitter, the entire process can be volatile. A couple of tips may help with navigating this complex type of family law proceeding in Montana.

First, it is critical to understand where all of the family's assets are and what they are. In addition, determining how these assets are owned is critical -- for instance, whether they are jointly owned or belong to either spouse. Other important information to gather includes the family's expenses and income, as well as the assets that each party brought into the marriage.

Get serious about your finances during a divorce

You may have been surprised by a spouse who suddenly wanted a divorce. You may have been the one who had the idea, and perhaps you were thinking about how to move forward with the dissolution of your marriage for a very long time. Regardless of why you're currently divorcing, it's time to get serious about your financial circumstances.

Beyond the emotional aspects of bringing your love union to an end, the financial parts of this equation are crucial. With this in mind, here's some excellent advice that all Montana spouses should consider if they're in the midst of a divorce.

Important steps to take when divorce is unavoidable

Going through the dissolution of a marriage can quickly take a toll both financially and emotionally. Unfortunately, sometimes divorce is unavoidable if two spouses cannot see eye to eye about issues affecting their marriage. A couple of tips may help those embarking on the journey of divorce for the first time in Montana.

First, coordinating with one's ex may be helpful in minimizing any unnecessary drama in the marital split-up. For instance, once both spouses share their divorce news with their inner circles -- including family and friends -- they will likely have to share this news with their children as well. Both spouses may benefit from talking about the divorce with the children together, rather than one spouse sharing this information without the other party's knowledge.

Budgeting an important part of navigating divorce

For those getting divorced in Montana, the impact on their finances may be significant. This is true whether they have decided to handle their divorce matters at trial or outside of court. A few tips can help one to be as financially prepared as possible to avoid expensive mistakes that can have both short-term and long-term implications.

First, creating a budget as soon as possible during the divorce may be expedient. This budget can be created from expenses and income sources. However, assets can also be included in the budget, which is why having a relatively good idea about which assets one will end up keeping is important during the budgeting process.

Common divorce myths involve the marital home

Navigating the process of getting divorced in Montana can feel like going through a war zone as opposed to going for a walk in the park. Myths surrounding the divorce process unfortunately can make it even more difficult to get through. A couple of these myths involve the marital home and the children.

One misconception about divorce is that when one of the spouses moves out of the home, he or she has essentially given up his or her right to the residence. The truth is that the house in this case is still a marital asset. Thus, it will still be subject to property division.