Attorneys in Missouri and other states who handle divorce cases have come to know the warning flags that may indicate extra income that a spouse is hiding from the other. This is often accomplished by studying the income tax returns that are filed by the parties. There are details on these forms that a spouse may not want the other to see; however, with a sharp eye the other side will be able to pick up some hidden "treasures" from the tax filings. In family law procedure regarding a divorce proceeding, each side has the benefit of discovery and will have the other party's records to study.
While not every Missouri couple who files for divorce have assets worth $137 billion, each couple's circumstances are unique, and every spouse is entitled to negotiate a settlement that protects his or her financial interests. Some say the higher the net worth, the easier the negotiation, simply because there is more money to go around. Others say that fact can complicate family law matters, especially if financial issues get dragged into highly charged emotional fights. Jeff Bezos, founder of Amazon.com, Inc., has reportedly been able to devise an amicable settlement in parting from his wife, MacKenzie, which will apparently make her one of the world's wealthiest women.
Due to changes in Missouri and nationwide made by the Tax Cuts and Jobs Act the deduction for alimony has been eliminated for new divorces finalized after Dec. 31, 2018. For many decades family law has been marked by a federal income tax rule that says that alimony is deductible to the payer and income to the recipient. This gave an incentive for the spouse who was making substantially more than the other spouse to provide alimony to the needier spouse while paying less in taxes in return.
When negotiating a divorce settlement in Missouri, litigants may face tax ramifications from property and support issues that are involved. One tax rule that impacts family law negotiations, for example, is that a sale of real estate by husband and wife that was used as a primary residence for at least two of the past five years allows for a tax exclusion up to $500,000 if filing jointly or up to $250,000 each if filing separately. Each person seeking the exclusion must prove having lived in the property as a primary residence for two out of five of the previous five years.
Experienced divorce attorneys in Missouri and elsewhere acquire a lot of knowledge about the dynamics of marital relationships. The conscientious family law attorney will tell certain clients to first seek marital counseling or other options prior to deciding on a divorce. There are certain telltale signs, verified by studies over the years, that indicate whether the relationship has any real hope for reconciliation.
In Missouri, both during negotiations and after the divorce, it is critical to engage in preparation and financial planning for the future. In the family law process, this is perhaps a more common concern for women than men. Women often run into problematic financial concerns during and after the divorce due to the inevitable hardship that comes from splitting up the parties' income and not sharing anymore as a family unit.
One of the more challenging aspects of divorce is the period after the breakup in which a person must start over again with a new set of finances. Of course, the feeling of independence after a marriage has ended is one of the positive features of ending a marriage. One can increase the likelihood of enjoying the independence if he or she carefully plans for the financial reset. For these matters of property division and spousal support, individuals in Missouri look to family law.
Since so many people run into the problem of divorce, many individuals have had the chance to gather helpful tips. People who are familiar with the process share tips so that others who are experiencing family law issues for the first time can apply them. Individuals in Missouri facing the dissolution of their marriage may be able to apply some of the recommendations and make the process a little bit easier.