Table of Contents See also Summary of Contents on page xi.

Transcription

1 Table of Contents See also Summary of Contents on page xi. Chapter One: Child Support, Spousal Support, and Alimony Pendente Lite... 1 Submitted by Gerald L. Shoemaker, Jr., Esquire Written by Brian C. Vertz and David S. Pollock, Esquires I. Introduction... 3 A. Authority... 3 B. Practice Considerations... 6 C. Preparation... 8 II. Jurisdiction and Venue A. Child Support B. Spousal Support C. Alimony Pendente Lite D. Counsel Fees E. Interstate and Intercounty Cases F. Limitation of Actions III. Issues Common to Child Support, Spousal Support and Alimony Pendente Lite Proceedings A. Calculation of Parties Incomes B. Cash Flow for Support Purposes C. Double Dipping D. Earning Capacity E. Pennsylvania Supreme Court Guidelines F. Counsel Fees G. Retroactivity H. Enforcement and Contempt I. Modification J. Termination K. Income Tax Consequences L. Appeals M. Bankruptcy IV. Child Support A. Duty to Provide Support B. Paternity C. Amount of Support D. Duration E. Trust Payments for Future Needs xiii

2 xiv V. Spousal Support A. Statutory and Case Law Authority B. Defenses C. Amount of Support D. Duration VI. Alimony Pendente Lite A. Statutory and Case Law Authority B. Defenses C. Amount of Support D. Modification E. Duration VII. Contrast between Spousal Support and Alimony Pendente Lite A. Purpose of Award B. Simultaneous Orders and Conversion C. Jurisdiction and Procedure D. Practical Distinction E. Termination F. Case Law VIII. Agreements A. Child Support B. Spousal Support and Alimony Pendente Lite IX. Post Majority Support A. Post Secondary Educational Support B. Non-Educational Support of Adult Children Chapter Two: Valuation of Assets Submitted by Gerald L. Shoemaker, Jr., Esquire Written by David C. Schanbacher, Sophia P. Paul, and Gerald L Shoemaker, Jr., Esquires 2-1. Date of Valuation Valuing Real Estate Valuing Personal Property Valuing Bank Accounts and Investment Accounts Measuring Increase/Decrease in Value Valuing and Dividing Retirement Benefits Defined-Contribution Plans IRAs Defined-Benefit Plans Distribution of Defined-Benefit Plan in Immediate Offset Cases Distribution of Defined-Benefit Plan in Deferred Distribution Cases

3 2-6.4 Immediate Offset vs. Deferred Distribution Other Forms of Retirement Benefits Valuing Business Interests Valuation Methods Personal versus Enterprise Goodwill Discounts Tax Consequences and Costs of Sale Professional Practices Valuation Dates Distribution Chapter Three: Tax Implications of Divorce and Support Section One Sample Tax Documents Affecting Divorce and Support Donna Pironti, CPA, MSA Net Income Available for Support George Jetson (Husband) Jane Jetson (Wife) Draft Schedule of Assets W-2 (George Jetson) Form 1040 U.S. Individual Income Tax Return Schedule A Itemized Deductions Schedule B Interest and Ordinary Dividends Schedule E Supplemental Income and Loss Form 6251 Alternative Minimum Tax Individuals Form 8959 Additional Medicare Tax Form 8960 Net Investment Income Tax Individuals, Estates, and Trusts Form 8903 Domestic Production Activities Deduction Worksheets Form Personal Exemption Worksheet Wages Received and Taxes Withheld Qualified Dividends Self-Employed Health Insurance Deduction Worksheet Federal Income Tax Withheld Schedule A State and Local Income Taxes Contributions Other Than Cash or Check Itemized Deductions Worksheet Form Allocation of Income and Amount At-Risk xv

4 xvi Allocation of Allowable Losses Form 6198AMT Alternative Minimum Tax Allocation of Income and Amount At-Risk Alternative Minimum Tax Allocation of Allowable Losses Form Loss Limitations Exemption Worksheet Line 49 Worksheet Form 8960 Trade or Business Income Form Active Rental of Real Estate Worksheet Other Passive Activities Worksheet Allocation of Unallowed Losses Worksheet Allowed Losses Worksheet Summary of Passive Activities Modified AGI Alternative Minimum Tax Active Rental of Real Estate Worksheet Form 8582 Alternative Minimum Tax Other Passive Activities Worksheet Allocation of Unallowed Losses Worksheet Allowed Losses Worksheet Form 8582AMT Summary of Passive Activities AMT Form 8903 QPAI from Passthrough Entities Form 1120S U.S. Income Tax Return for an S Corporation Schedule B Other Information Schedule K Shareholders Pro Rata Share Items Schedule L Balance Sheets per Books Schedule M-1 (Informational) Reconciliation of Income (Loss) per Books with Income (Loss) per Return Schedule M-2 Analysis of Accumulated Adjustments Account, and Shareholders Undistributed Taxable Income Previously Taxed Form 1125-A Cost of Goods Sold Form 1125-E Compensation of Officers Form 8903 Domestic Production Activities Deduction Qualified Production Activity Income Schedule Form 1120S Taxes and Licenses Other Deductions Schedule K Nondeductible Expenses Other Items, Line 17D Schedule L Other Current Assets Other Assets Other Current Liabilities

5 Other Liabilities Analysis of Total Retained Earnings per Books Schedule M Expenses Recorded on Books This Year Not Included on Schedule K Deductions on Schedule K Not Charged against Book Income This Year Schedule M-2 Accumulated Adjustments Account Other Reductions Form 1125-A Additional Section 263A Costs Other Costs Form 4562, Part V Listed Property Information More Than 50% Schedule K (1) Shareholder s Share of Income, Deductions, Credits, etc Domestic Production Activities Information Box 12, Code P Nondeductible Expenses, Box 16, Code C Schedule K (2) Shareholder s Share of Income, Deductions, Credits, etc Domestic Production Activities Information Box 12, Code P Nondeductible Expenses, Box 16, Code C Main Line Space Sprockets, Inc.: Financial Statements: Year Ended December 31, Balance Sheet Assets Liabilities and Stockholder s Equity Statements of Income and Accumulated Deficit Schedule I Cost of Sales Schedule II Operating Expenses Section Two Affordable Care Act Tax Provisions Impacting Family Law Submitted by Donna Pironti, CPA, MSA 1) Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act (HCERA) Background ) Additional Medicare Tax on Earned Income ) Medicare Tax on Net Investment Income ) Medicare Tax Example ) Medicare Tax Example ) Medicare Tax Impact on Property Division ) Other Tax Issues Section Three Guidance on American Taxpayer Relief Act of Submitted by Donna Pironti, CPA, MSA xvii

6 xviii 1) The Fiscal Cliff Background ) Businesses ) Estate Tax ) Gift Tax ) Individual Income Tax Rates ) Payroll Tax Cut ) Marriage Penalty Relief ) 2013 and 2014 Standard Deduction Amounts ) Itemized Deductions ) Personal Exemptions ) Capital Gains and Dividends Tax ) Alternative Minimum Tax ) Credit Extensions ) Example: Medicare and Federal Tax Rate Scenarios for 2012 and Chapter Four: Financial Aspects & Settlement Agreements Written by Gail C. Calderwood, Esquire I. Capturing Financial Aspects of Settlement in Written Agreement A. General Applications B. Disclosure C. Division of the Financial Assets D. Ongoing Sharing of Income Information E. Deferred Distribution of Financial Assets F. Enforcement Measures G. Counsel Fees II. Careful Review of the Written Agreement & Execution Chapter Five: Trial of an Equitable Distribution Case Submitted by Gerald L. Shoemaker, Jr., Equire Written by Rochell B. Grossman, and Alita A. Rovito, Esquires 8-1 Preparing the Case for Trial Pretrial Statements Trial Exhibits Evidentiary Considerations Preparing and Presenting Your Witnesses Client as Witness Fact/Lay Witness Expert Witness

7 8-3 Creating the Record Pa.C.S. 3502(a) General Rule Post-Trial Matters Practical Considerations Conclusion xix

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