Most married taxpayers choose to file taxes jointly due to certain benefits associated with this filing status. When a couple chooses to file a joint tax return, both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise from joint return, even if the couple later separates or divorces. Both joint and several liability means that each taxpayer is legally responsible for the total liability. Therefore, both spouses on a married filling jointly return are usually held liable for all the tax that is due. This is the case even if one spouse made all the income or claimed deductions or credits. This is also the case in the event that a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. A situation may occur however, where a spouse gets the other spouse into a substantial amount of debt. Upon separation or divorce the innocent spouse discovers that they are in a financial crisis and wishes to alleviate some of the accumulated debt. In cases such as these, a spouse can be eligible for relief from being jointly and severally liable.
Types of Relief There are three types of relief from the joint and severally liability of a joint return. These three types are as listed:
It’s important to note that an individual seeking innocent spouse relief or separation of liability relief must request their relief no later than two years after the date the IRS first attempted to collect tax from them. An individual wishing to apply for equitable relief, must request relief during the period of the time the IRS can collect the tax from them. In the event that a person is looking for a refund of tax that they paid, then they are required to request it within the statue period for seeking a refund. This is generally three years after the date the return is filed or two years following the payment of tax, whichever is later. Refunds are not available under separation of liability relief. Requirements for Relief To seek innocent spouse relief, separation of liability relief, or equitable relief, an individual should submit to the IRS a completed form 8857. Request for Innocent Spouse Relief, or a written statement containing information required on Form 8857 which is signed under penalties of perjury. The IRS is required to notify the spouse you filed jointly with and allow him or her to provide information for consideration. Finally, in order to qualify for innocent spouse relief, separation of liability relief, and equitable relief an individual must meet all of the qualifications. - Innocent Spouse Relief
- Separation of Liability Relief
- Equitable Relief
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Commonality of Modifying Alimony
After a court grants alimony (either temporary or permanent), it may later be modified by the court or terminated completely depending on the circumstance. There must be a substantial change in circumstances in order for court to modify an existing agreement. Courts have wide discretion in how they define situations that constitute a substantial change in circumstances to warrant a change in alimony. It is not common for a court to modify an existing alimony award. North Carolina submits to the partnership theory of marriage, where both partners have an equal obligation to provide financial support to each other during marriage. This theory extends to post-separation spousal support. Spousal Support: Payor and Recipient During the process of modifying alimony agreements, an individual is either the payor or the recipient of spousal support. These roles are determined objectively depending on which partner was financially superior in the marriage. The payor is typically the partner who will be giving money to the recipient or dependent partner. The amount of spousal support depends specific factors, such factors include: the duration of the marriage, the role of each spouse, and the age of the partners. Modification of Spousal Support Either party has the ability to initiate modification of an award. The party who moves for a modification of alimony has the responsibility of showing a substantial change in circumstances that warrant change in spousal support. Typically, the party will either move for either upward modification or downward modification.
North Carolina is actually both, a No Fault and an At Fault state for divorce. Depending on the circumstances you are facing at the time, you may file for either. Each of these types of divorces, however, has essential legal requirements. In order to find out which type of divorce best suits your needs, it is best that you speak with a family lawyer to get more information.
When filing for a divorce in North Carolina, there does not have to be any particular reason for doing so. These types of divorces are most commonly known to contain irreconcilable differences. Although there is no specific reason to your divorce under these laws, you must remain separated for one year before filing for a divorce and at least one of you has to have resided in North Carolina for at least six months prior to filing. In North Carolina, being separated consists of you and your spouse living in two different residences, with no intent of reconciling. You do not need any legal documentation proving that you and your spouse were, in fact, separated for an entire year. All that is required as proof is the date that you separated. If you do reconcile your differences at any point during that period of separation, you must restart the clock if you separate. If you need to speak to a divorce attorney, contact Adkins Law. We are located in Huntersville and primarily serve Mecklenburg County and the Lake Norman area. There is a difference between legal child custody and physical child custody. Often this terminology is confused, which can lead to disputes when parents are trying to make major decisions affecting the child. Legal custody essentially means decision making. Physical custody, on the other hand, is where the child physically is – which parent they are spending the night with.
Most parents will share joint legal custody of their child. Thus, they will have equal input into decisions that are made for the child’s upbringing – what school they will attend, where they will go to the dentist, what church they will go to, and what sport they will play in the Fall. Sometimes, parents are not able to agree with each other on these types of issues. This is often the biggest area where disputes arise between parents after an order has been set in place. Some orders contain icebreaker language, which provides that the parents shall work together to make major decision, but that one parent will ultimately have the final decision making authority. Other orders will provide that the parents are each able to make decisions for different issues – dad, for example, may make all educational decisions, while mom makes all medical decisions. Another option is to force the parties to attend binding arbitration (sort of like a private trial) in the event they are unable to reach an agreement on a major decision. So – what does it mean to have legal custody of my child? How does this impact my relationship with my child? Legal custody provides you with the opportunity to actively provide input and make decisions on how your child is to be raised. Unless one parent is not interested, not involved, or simply unfit to make decisions for the child, this is almost always shared jointly. Regardless of what and how parties feel about each other, it is almost always in the child’s best interest to work together to make joint decisions on their upbringing. If you need to speak with an experienced family law attorney, please contact Adkins Law. Adkins Law is located in Huntersville and primarily serves Mecklenburg County and the Lake Norman area. Separation leads to conflict. There is no way around it. In any separation, opposing parties have different wants and interests. They both feel they are entitled to certain things. The ultimate goal is getting resolution. The attorney’s role in separation is helping a party achieve resolution with favorable results. This is not always easy, and it is rare for either party to get exactly what they are seeking. Finding middle ground, and compromise is often key to reaching resolution. The important thing is understanding what you are likely entitled to, and what you are asking for – seeking more than you would likely end up with is a recipe for disappointment as you will feel like you are losing with every compromise.
Traditionally, negotiation strategy focuses on four basic tenets:
Traditional negotiation strategy is a very logical, rational way to jointly achieving conflict resolution. This approach is a problem-solving method that places a systematic emphasis on reaching an agreement. The problem is traditional, logical, rational negotiation strategy is not very effective – in practice it rarely works. While traditional negotiation strategy is appealing to academics, they are objectively removed from the emotions that exist at a negotiation table. This approach makes the assumption that people are not animalistic, unreliable, and irrational beings. It is not easy, for example, to place objective value on time with your children, dividing the belongings in your home you have shared with your family, or paying support to the ex-spouse that cheated on you. Instead of rational thought, emotions come into play, which make it nearly impossible to not be concerned about the other side’s position. It is very clear – emotionally driven negotiations cannot be approached with rational bargaining methods. So what is the solution to successful negotiation? How do I get the outcome I want and need from my own divorce? To begin with, emphasis must be removed from quid pro quo bargaining and problem solving. Instead, emotions, and learning to use them to your benefit, are central to effective negotiation. Emphasis needs to be placed on calming people down, establishing rapport, gaining trust, expressing the needs of your position, and empathetic persuasion. Ask questions like “What are you going through?” “How does that make you feel?” and “How am I supposed to do that?” Introducing emotion into a rational mindset can modify response. Emotions and instincts are much more powerful than logic and can influence rational thought. Changing the behavior and shifting the emotional environment of the other party can help you obtain the outcome you need. So before you attempt to negotiate your separation, discuss with your attorney not just what makes sense logically in determining how to divide assets and debts, paying or receiving support, and a child custody schedule that works best for all parties, but discuss what emotional triggers and desire the other party has – try to figure out what they are really interested in and want they really want. Use that as leverage to get what you really want and need. Conflict is often the path to great deals, and at some point every negotiation gets down to old-fashioned haggling. The important thing to remember is that to successfully negotiate, you have to be prepared – and that means better knowing and understanding the rational and emotional aspects of the other party. To learn more about negotiation techniques and strategy, consider reading and reviewing the following books: Getting To Yes: Negotiating Agreement Without Giving In, Roger Fisher and William Ury Getting Past No: Negotiating With Difficult People, William Ury Bargaining For Advantage, Richard Shell Beyond Winning, Robert Mnookin Start With NO, Jim Camp No: The Only Negotiating System You’ll Ever Need, Jim Camp Making Money Talk: How To Mediate Insured Claims And Other Monetary Disputes, J. Anderson Little Wired For Conflict, Sondra S. Vansant Never Split The Difference: Negotiating As If Your Life Depended On It, Chris Voss Getting Ready To Negotiate, Roger Fisher and Danny Ertel Getting Together: Building Relationships As We Negotiate, Roger Fisher You Just Don’t Understand, Deborah Tannen Talking From 9 To 5, Deborah Tannen In A Different Voice, Carol Gilligan Games People Play, Eric Berne The Magic Of Rapport, Jerry Richardson The Human Factor At Work, Eric Oliver Influencing With Integrity, Genie Z. Laborde Control Theory, William Glasser Pre-Suasion: A Revolutionary Way To Influence And Persuade, Robert Cialdini Influence: The Psychology Of Persuasion, Robert Cialdini If you need to speak with a divorce / separation / family law attorney, contact Adkins Law. Adkins Law is located in Huntersville NC and primarily serves Mecklenburg County, Charlotte, and the Lake Norman area. Divorce can be very expensive. Most family law attorneys operate on the billable hour. Thus, your total expense varies depending on the work that goes into your case. Cases that settle faster are typically less expensive than cases that are litigated and require multiple court appearances. Clients are also responsible for other fees such as court filing fees, which can cause your total expenses to increase. Occasionally, family law attorneys take certain cases on a flat fee basis. In these situations, be sure that you understand exactly what representation you are getting for the flat fee. Your representation may not extend to all areas you are needing to be represented for. Either way, before hiring an attorney, make sure that you understand your fee and payment structure - and make sure that you make wise decisions together as to how to best use your attorney's fees. If you need to arrange a divorce or separation consultation with a family law attorney, contact Adkins Law. Adkins Law is located in Huntersville NC and primarily serves Mecklenburg County, Charlotte, and the Lake Norman area. If you are considering separation and divorce, emotional issues aside, there are a number of legal issues you need to understand and plan for. In North Carolina, to obtain an absolute divorce, you are required to live separate and apart for a year and a day. During this period of separation, you and your spouse must continuously live separate and apart in different residences – different bedrooms within the same house does not count. Additionally, at least one spouse must have lived in the state for at least six months prior to filing for the divorce.
Before obtaining your divorce, however, it is very important that you and your spouse have divided up your property, and determined any potential spousal support. Any claim for equitable distribution, or the division of marital assets and debts, must be made before the divorce is finalized, or a court will not have jurisdiction over the claim. This is also true for spousal support. If a claim for alimony is not made before the divorce is finalized, the claim cannot be later asserted. The court would not have the authority to enter such an order. Due to this, and in lieu of litigation, it is very common for parties to enter into a separation agreement before they are divorced. Separation agreements outline the terms of a separation, and most commonly cover property and debt division, and spousal support. Separation agreements may also discuss child custody and child support. Typically, however, it is not best practice to put child custody and child support in a separation agreement, versus a consent order. A consent order is enforceable by contempt, whereas a separation is enforceable by breach of contract. For most parties, it is beneficial to enter into a separation agreement because it saves them money (reduces attorney fees and litigation expenses), and gives them more control over what is in the agreement (the parties can determine to terms of the agreement versus a judge making the decision). If you are considering separation and divorce, contact Adkins Law to arrange a consultation. Whether you decide to hire a family law attorney to guide you through your divorce, a consultation with an attorney can at least provide you with information on your rights, and help you make an informed decision on how to proceed. Adkins Law is located in Huntersville, and primary serves Mecklenburg County and the Lake Norman area. What is the process for legitimation in North Carolina? If you need to speak with a family law attorney concerning legitimation, contact Adkins Law. Adkins Law has locations in Huntersville and Ballantyne for your convenience. If you need to speak with a divorce attorney, contact Adkins Law. Adkins Law has locations in Huntersville and Charlotte for your convenience. |
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