Member Articles on New Jersey Family Law

On January 1, 2019, new federal tax laws were ushered in, as part of the Tax Cuts & Jobs Act of 2017, which haverevolutionizedthe financial landscape for divorcing parties. The most dramatic change is the elimination of the federal income tax deduction for individuals who payalimony. This also means that persons receiving alimony will no longer have to declare these payments as income – thereby making the receipt of alimony tax free. It is important to note that this new change in tax law only affects alimony awards entered after December 31, 2018.

A divorce proceeding can be emotionally and financially draining to the parties. The emotional components conjure up many feelings: rejection, failure, guilt, anger, loneliness and the loss of physical and financial security. The financial components encompass the division of assets and the allocation of income to satisfy alimony and child support obligation, and the expenditure of money for legal and expert fees. If either party is angry, unreasonable or vindictive, it will protract the process and increase the legal and expert fees.

It is axiomatic that uncertainty in outcome breeds litigation. Litigation generates increased fees and emotional stress for the parties and their children. There is no question that uncertainty as to the duration of alimony causes many cases to be prolonged longer than necessary, triggering many of the negative aspects of divorce to occur. It is perhaps one of the most frequently asked question by our family law clients: “Is my spouse (or am I) entitled to permanent alimony?” It is usually followed, of course, by the question, “If I am obligated to pay limited duration alimony, how long and how much will I have to pay?” Or, if you represent the supported spouse, “If I am only entitled to limited duration alimony, how long will it last and how much will I receive?” Unfortunately, these questions, so often raised by our clients, usually create more questions for an advocate than answers.

Before you can value a company, you must know the purposes for which you need the valuation. Different purposes will provide differing values and different valuation methods”. Paul B. Barren, When You Buy Or Sell A Company, rev. ed. (Meriden, CT: The Center For Business Information, Inc. 1983) pp. 8-9, cited in Pratt Valuing Small Businesses And Professional Practices. Shannon P. Pratt, Robert F. Reilly, Robert P. Schweihs (McGraw Hill) (1998, 3rd ed.) p 52