Collaborative Divorce Requires Steady Emotions

 

Emotions have the potential to derail any settlement discussions, particularly in the context of divorce. This is one reason our law firm favors a collaborative approach to divorce. By working out issues in advance, a divorcing couple can present these proposals to the court for approval and minimize their time and expense.

Is Collaborative Divorce Akin to a Business Negotiation?

Interestingly, a recent article compared divorce settlements to business negotiations. True, there are tax considerations. For example, a party may initially want to retain their family home for sentimental reasons. However, a good attorney will provide counsel that addresses both the short- and long-term implications. In this example, our counsel would calculate the property taxes and weigh that ongoing expense against any settlement offer. 

 

A business approach to divorce might also benefit the subject of alimony. If the spouse paying this support cannot claim it as a tax deduction, he or she may need additional incentive. A recent article recommended putting such payments into a grantor trust, where the receiving spouse is liable for the taxes on its distributions.

Children Are the Wild Card

The one exception to this business analogy is children. Our law firm believes that both parties will benefit when the best interest of the child is advanced. This view reflects not only our values, but also the view of the court. Thus, if staying in the family home would provide more continuity through a time of transition to the children, both parties may consider viewing the property taxes as an ongoing cost of their child care, rather than simple an asset to be divided in property division discussions.

Source: The New York Times, “4 Tax Strategies That Could Make a Divorce Settlement Easier,” Paul Sullivan, Apr. 19, 2019

No Comments

Leave a comment
Comment Information

Seek Legal Help Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Durham Office
3200 Croasdaile Drive
Suite 601 & 603
Durham, NC 27705

Phone: 919-688-9400
Fax: 877-678-1584
Durham Law Office Map

Pittsboro Office
27 Hillsboro Street
Pittsboro, NC 27312

Phone: 919-679-9400
Fax: 877-678-1584
Map & Directions

Logo style

Follow us: