Brandt, chair of the firm’s Family Law group, was a guest on the Dr. Drew
Midday Live Show discussing a MarketWatch article about the
upside to no-fault divorces. The article says, “in states with ‘no fault’
divorces, couples are 8 percent more likely to both work full-time outside the
home and it’s 5 percent more likely that the wife is in the labor force.”
After the holidays, January is usually the time when people decide they want a
fresh start in their life.
To read the article Jennifer discusses, click here.
Jennifer Brandt, chair of the firm’s Family Law Practice, appeared on Law & Crime discussing the pretrial hearing on two defense motions in the Parkland School Shooter case, as well as reviewing day four in the Arizona v. Ramon Bueno trial.
The Tax Cuts & Jobs Act of 2017 eliminated the tax deduction previously allowed for alimony payments effective January 1, 2019. This meant that alimony payments made pursuant to an agreement executed after December 31, 2018 could no longer be deducted from the income of the party making the payments nor would it be included in the income of the party receiving the payments. The actual implementation of this change remained unclear, however, particularly for agreements executed prior to December 31, 2018 but modified after that date. Specifically, were these modified agreements still governed by the old law or did the modification subject the payments to the new law? Read more ›
Jennifer Brandt was a guest on Good Day Philadelphia discussing the Florida parents who are seeking to regain custody of their 4-year-old son after taking him off of chemotherapy. They lost custody in May to the child’s grandparents after missing a chemotherapy appointment for the boy, in favor of trying alternative medicine. Watch the video here.
I was asked recently by a financial advisor in New York, to review and comment on a chart he had put together which was designed to help newly-divorced people in get back on their feet. The draft document I received covered mostly investment matters, but it got me thinking about all of the practical things people need to think about – and do – when they transition from being a married couple, to being single. So, in no particular order of importance (in my view, they are all important, or will be at some point) here are some basic things which need to be attended to after a divorce.
Retirement Money Transfers: Often, a settlement agreement or court decision will call for retirement money to be transferred between parties. These transfers must be made between retirement accounts in order to avoid taxes and penalties. Where the account in question is a simple IRA, or a Roth IRA, a call, and a copy of the order or agreement to the fund administrator is usually enough to have the transfer made. For more complex plans, “qualified plans” as they are known, a Qualified Domestic Relations Order (more commonly known as a QDRO) is needed. A QDRO is an order, prepared either by an attorney or a pension expert, and presented to the matrimonial judge for signature. Once signed, the order is forwarded to the plan administrator, and the money is transferred tax free into a retirement account designated by the recipient. Read more ›
For the past several decades the “alimony deduction” has been available to all divorcing couples. This deduction provided that the spouse making alimony payments could deduct alimony payments from his or her income and the person receiving alimony would claim these payments as taxable income. However, under the Tax Cuts and Jobs Act of 2017, all support orders entered after January 1, 2019 will no longer qualify for this deduction.
In response to the new tax reality, the Pennsylvania Supreme Court has provided new guidelines under which to calculate support. Under these new guidelines, there are two methods of calculating support, one for orders entered before December 31, 2018 and one for orders entered after January 1, 2019.
Guidelines for Orders Entered Before December 31, 2018
If a support order was entered before December 31, 2018, the old guideline calculation applies. Under this calculation, spousal support/APL is calculated by taking 30 percent of the difference of the parties’ net incomes minus child support, or, if there is no child support order, 40 percent of the difference of the parties’ net incomes. The spousal support/APL figure is calculated after calculating child support. Read more ›
Transferring assets into trust for the benefit of children or others is a common estate planning tool. The party making the transfer into a trust gives up any right to control the property or its distribution. This also has the effect of removing the property from the marital estate and can significantly lower the amount of money and/or property subject to equitable distribution in the event of a divorce. This becomes problematic when it was done without the knowledge and consent of both parties, and if it was done for a nefarious purpose, such as to deny one spouse their right to share in certain marital assets.
Pennsylvania law provides two main statutory bases to challenge a transfer of property to a trust. First, Section 3505(e) of the Pennsylvania Divorce Code explains that where a transfer of marital property is made to a third person who paid wholly inadequate consideration for the property, a Court may find that the transfer was fraudulent and declare it to be void. Transfers to trusts usually do not involve any consideration. This in itself, can make the transfer within the scope of an attack under Section 3505(e), but the Court is likely to require additional facts suggesting that the transfer was fraudulently made. Read more ›
The Family Law Focus blog provides highlights, updates and insights on complex family disputes including divorce, division of property, and alimony; child and spousal support; child custody; domestic violence; pre- and post-nuptial agreements; name changes; and adoption or termination of parental rights.
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Jennifer A. Brandt, of Cozen O'Connor's Family Law practice, has represented a wide variety of clients in hundreds of family law cases throughout her career. Jennifer is a regular legal commentator on national and local television outlets such as CNN, Fox New Network, HLN, MSNBC, Fox29, ABC News, NBC and CBS and frequently writes and contributes to articles in numerous publications, including the Huffington Post, Fox Business.com, The PhiIly Post, Avvo.com, Allparenting.com, The Philadelphia Inquirer, The Philadelphia Business Journal, the National Law Journal, and Main Line Today magazine.
This Blog/Website is made available by the lawyer or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog/Website publisher. The Blog/Website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.