J.K. Lasser Pro Guide to Tax and Financial Issues in Divorce
Professionals specializing in the field must understand the financial and tax aspects of divorce in more detail than ever before-and the issues are more complicated than ever before. The J.K. Lasser Pro Guide to Tax and Financial Issues in Divorce is designed to arm professionals with the information they need to best serve their clients in dealing with the complex finances of divorce. Practical and accessible enough for nonprofessionals, the book also helps those worrying over their own divorce understand the topics they must deal with. Examples, guidelines, forms, tools, and checklists complement expert discussion of these issues and more:
* Valuing interests in closely held companies
* Finding the right lawyer and accountant for your divorce
* Negotiating the settlement
* Tax implications
* Research and investigation in the discovery phase
* Subpoenas and requests for documentation
* Marital versus nonmarital property
* Analyzing and determining one's true economic income
* Alimony and other maintenance payments
* Mediation and collaborative law for divorce
Please visit our Web site at www.jklasser.com
SECTION I: FINANCIAL ASPECTS OF DIVORCE.
Chapter 1: Introduction.
Knowledge Is Power.
Finding and Selecting the Right Divorce Attorney.
Gathering of the Assets.
The Concept of Marital versus Nonmarital (Separate) Property.
Understanding Your Spouse s True Economic Income.
Net Worth Analysis.
Developing Your Lifestyle Analysis.
What Is This Thing Called Dissipation?
Chapter 2: Mediation in Settling Cases and Collaborative Divorce.
Chapter 3: Glossary of Common Legal/Divorce Terminology.
SECTION II: THE TAX SIDE OF DIVORCE.
Chapter 4: Taxation of Financial Support.
Alimony and Child Support.
Chapter 5: Transfers of Property in Connection with a Divorce IRC Section 1041.
Basis in the Property Received.
Transfers to Third Parties.
Chapter 6: Special Issues in Property Transfers.
Transferees of Closely Held Businesses and the Issue of Stock Redemptions.
Overview of Retirement Plans and the Tax Impact on Transfers During Divorce.
The Sale of the Personal Residence When, How, or Does One of the Spouses Get It?
Chapter 7: Filing Status.
Head of Household.
Allocation of Income.
Assignment of Income Doctrine.
Deduction for IRA Contribution.
Chapter 8: Allocation of Itemized Deductions.
Qualified Mortgage Interest.
Deductibility of Divorce-Related Attorney and Accounting Fees.
Chapter 9: Allocation of Tax-Related Carryovers.
Charitable Contribution Carryovers.
Net Operating Losses.
Capital Loss Carryforwards.
Investment Interest Expense.
Passive Loss Carryforwards.
Other Credit Carryforwards.
Chapter 10: Allocation of Estimated Tax Payments and Tax Refunds.
Estimated Tax Payments.
Federal Income Tax Refunds.
Chapter 11: Innocent Spouse Rules, Child Care Credits, and Adoption Credits.
Innocent Spouse Rule.
Child Care Credits.
SECTION III: THE VALUATION PROCESS.
Chapter 12: The Basics in Understanding the Valuation of the Closely-Held Business.
Hiring an Expert Types of Business Appraisers, Professional Accreditation Criteria, and Standards of Business Valuation.
Important Internal Revenue Service Revenue Rulings.
Use of Financial Experts Generally.
The Valuation Process.
Chapter 13: Business Valuation Approaches.
General Introduction to Business Valuation Approaches.
Summary of Major Steps Using the Capitalization of Earnings Method or Discounted Future Earnings Method.
Summary of Major Steps Using the Discount of Future Earnings Method.
Determination of Capitalization/Discount Rate.
Chapter 14: Market Approach.
Guideline Publicly Traded Company Method.
Private Transactions The Comparative Transaction Method.
Rules of Thumb/Industry Method.
Chapter 15: The Cost Approach.
Net Asset Value Method.
Excess Earnings Method.
Chapter 16: Discounts and Premiums.
Control Premiums and Minority Discounts.
Lack of Marketability Discounts.
Discount for Lack of Voting Rights.
Personal Goodwill Discounts.
Chapter 17: Effect of Purchase Price, Buy-Sell Agreements, and Key-Person Insurance upon Valuation.
Common Business Valuation Mistakes in Divorce Cases.
Chapter 18: Revenue Rulings.
Rev. Rul. 59-60, 1959-1 C.B. 237.
Rev. Rul. 68-609, 1968-2 C.B. 327.
Rev. Rul. 93-12, 1993-1.
Appendix A: Stock Options.
Stock Options Defined.
Qualified Stock Options.
Nonqualified Stock Options.
Vested and Unvested.
Tax Treatment of Stock Options.
How to Handle Option Issues in Dissolution of Marriage Cases.
Sample Language for Marital Settlement Agreements for the Allocation of Stock Options.
Appendix B: Uniform Standards of Professional Appraisal Practice and Business Valuation Standards Of ASA.
Importance of USPAP Generally.
Business Valuation Standards Promulgated by the ASA Business Valuation Committee.
Reading Material on Business Valuation.
Business Valuation Standards of USPAP 2000.
Appendix C: Information and Documents Requested for Sample Company.
Appendix D: Summary of Common Ratios Used by Business Appraisers.
Appendix E: Comprehensive List of Common Terms and Definitions Used by Business Appraisers.