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Eighteen Checkpoints For Divorce

 

  1. Make sure all the alimony requirements are satisfied

  2.  Modify any pre-2001 divorce decrees

  3. Use life insurance as an alimony backstop

  4. Watch out for front-loaded payments

  5. Make the dependency exemption pay maximum tax benefits

  6. Analyze impact of low basis assets if sold or transferred

  7. Watch out for transfers in trust (potential problems)

  8. Avoid tax deductibility of interest problems

  9. Watch out for residence joint ownership tax traps

  10. Carefully time the residence sale for maximum benefit

  11. Do not sell your tax signature too cheaply

  12. Get an itemized breakdown of attorney’s fees

  13. Get the entire agreement in writing immediately

  14. Obtain a QDRO (Qualified Domestic Relations Order)

  15. Do not forget about social security benefits

  16. Know what the cost basis of appreciated property is and the effects it could have

  17. Make your own alimony rule (rather than accepting the "Normal")

  18. Revise your estate plan and will within three months

     

 

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Last modified: January 23, 2007