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Considerations for a Peaceful Military Divorce Process

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Thursday April 7th, 2022.

Depending on the conditions, the divorce process can differ for each family. Because of the large number of military families in the United States, it’s also vital to address some differences and concerns that a military divorce may bring up.

 Service Members Civil Relief Act

When service members are on active duty, the Servicemembers Civil Relief Act helps to protect their legal rights. When one spouse serves the other with divorce papers, the latter is usually required to answer within a set amount of time. However, under the SCRA:

  • If the service member demonstrates that they cannot attend due to duty obligations, civil court or administrative proceedings may be extended.
  • In some cases, service members may be protected from default judgments if they fail to answer a lawsuit or attend a trial.

If You Are Overseas

A divorce decree made outside of the United States may be difficult to enforce since American courts do not recognize it. As a result, filing in the United States is frequently the best option.

Service members or their spouses can apply for divorce in the state where they are currently stationed, the state where they claim legal domicile or the state where the nonmilitary spouse resides, depending on the state’s laws.

Effect of Divorce on Military Benefits

The nonmilitary spouse may keep their identity card and continue to get commissary, exchange, and health-care benefits until the divorce is finalized. When a military member or other family members leave due to a divorce, installation family housing usually ends within 30 days.

The military may pay for the nonmilitary spouse’s relocation costs when he or she returns home from an overseas deployment post. The cost of an in-state move could be negotiated as part of the divorce settlement.

In the absence of an agreement or a court order, each military branch has policies requiring service members to support family members after separation.

When divorce causes a loss of TRICARE benefits, coverage can be purchased for up to 36 months of temporary health care benefits through the Department of Defense Continued Health Care Benefit program.

Don’t Get Discouraged

As you can see, a military divorce comes with its own set of complications. An attorney with experience handling military divorce can help you navigate the process efficiently. 

The Law Office of Wickersham and Bowers provides top-notch legal representation to clients in Daytona Beach and southern Florida. Our areas of legal practice include family lawpersonal injuryeminent domain, and estate planning and probate. Our firm has over 60 years of addressing our clients’ legal issues. Please feel free to contact us by filling out our online form or calling us at (386) 252-3000.

Life After Divorce—3 Things To Do Next

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Monday March 7th, 2022.

What happens after a divorce? The proceedings have likely left you depleted of your energy and feeling stressed. You should be aware, however, that divorce can be a significant first step toward a new chapter in your life. 

Let’s look at three primary areas where you should concentrate your efforts.

Break Ties With Your Ex

Marriage entangles your lives in many ways, and after a divorce, you need to go about extracting yours from theirs. It will likely mean new bank accounts, separate insurance accounts, and splitting any money you have in savings or retirement accounts. 

You may also be changing your name, which means updating all of your financial accounts and maybe even your social media. You may be closing joint streaming services and updating emergency contacts. 

If you have children, school and daycare will need updated contact information. Wills will need to be changed, and beneficiaries updated as well. 

Get Your Finances in Order

You may use the new start of a divorce to get your spending under control, start saving, improve your income, and achieve your financial objectives if you have a proper financial plan in place.

It is very likely that you were previously living with two incomes, and your financial circumstances have drastically changed. Take the following steps to ensure that you can maintain an appropriate lifestyle:

  • Make a new monthly budget
  • Track your new net worth
  • Eliminate expenses as necessary
  • Build up your emergency fund
  • Plan to pay off debt
  • Set new financial goals
  • If necessary, rebuild credit
  • Plan for your retirement

Resolve Any Legal Issues

As part of your divorce, you may have put in place provisions for spousal support and child custody agreements. If not, you will need to do that right away. 

There are plenty of details to co-parenting that will need to be worked out, such as visitation, where the kids will spend the holidays, and maybe even what religion they will be raised in. If things are amicable, you may be able to work these details out on your own, but an attorney should be involved if compromises can’t be reached. 

Understanding Gift Tax

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday March 7th, 2022.

A gift tax is a federal tax levied on someone who gives something of value to someone else without obtaining anything of equal or greater worth in return. Gifts can be anything of great value, such as sums of money, vehicles, or real estate, and the tax can be applied even if the donor never intended it to be a gift in the first place.

The Internal Revenue Service, or IRS, sets the limits on how much you can give before having to file a return and being taxed. Amounts in excess of the annual thresholds must be reported and count toward a lifetime gift tax exemption. When this significant provision is depleted, the gift tax is due.

Does the Person Receiving the Gift Pay Taxes?

In the vast majority of cases, the person being gifted does not owe taxes. At the federal level, assets you receive as gifts or inheritance are usually not taxable income. However, if the assets generate income in the future (for example, interest, dividends, or rent), that income will almost certainly be taxable. The specifics can be found in IRS Publication 525. 

Inheritance taxes are also imposed in some states.

How Can I Avoid Paying Gift Tax?

The yearly exclusion ($16,000 in 2022) and the lifetime exclusion ($12.06 million in 2022) keep the IRS out of most people’s pocketbooks.

If you stay below those, you’ll be able to be generous while remaining untaxed. If you go above that, you’ll have to fill out a gift tax form when filing your taxes.

Taxable Gifts

Are you curious about the gift tax and what constitutes a gift? Money and property, including the use of property, are examples of gifts. Remember, gifts are given without expecting to receive something in return of equal worth. 

In addition to simply giving someone something of value, these instances may also qualify as gift-giving: 

  • You sell something at a lower price than it is worth
  • You give someone a no-interest or low-interest loan

Exceptions

There are a few exceptions to the gift tax laws. These contributions are exempt from the annual limit:

  • Expenses for tuition or medical treatment paid directly to an institution
  • Gifts for your spouse
  • Donations to a political party
  • Donations to charity

When You Have a Vaccine Dispute With Your Kids’ Other Parent

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Thursday February 10th, 2022.

Doctors encourage parents of children aged 5 to 11 to get their children vaccinated against COVID. Both parents must sign off if you’re divorced and share custody. However, a poll shows that roughly a quarter of U.S. parents do not want their kids vaccinated. How should parents navigate the issue if one is for the vaccine and one is against it? 

Look at Your Papers

Your first step should be to review your custodial order and final divorce decree. The two of you may have already laid the groundwork for these types of decisions. 

In addition, if one parent was given sole legal custody, that parent has the ability to make the final decision on the vaccine question.

Seek Legal Advice

Should you and the other parent have joint legal custody, the decision will need to be made together. If a consensus feels impossible, seeking the assistance of a family law attorney may be the best solution. You can request mediation, or you can ask the court for help coming to a resolution. 

Going to Court

If you go before a judge, there are a few things that you will need to do to prepare for your case. 

  • Present evidence: You and the other parent will both have the chance to support your position on the vaccine with evidence. Your opinion is not considered evidence. You will need documentation from your child’s medical provider or testimony from medical experts. 
  • History of involvement: Before considering your stance on the vaccine, the court will take a look at your level of involvement in your child’s medical care. If one parent makes the majority of medical decisions for the child, the court is likely to weigh that parent’s wishes more heavily. 
  • Religion: Religious reasons for objecting to the vaccine will be considered by the court, but it is unlikely that this will be the sole factor in the court’s decision. 
  • Your child’s testimony: Older children, fourteen years old and above, will likely be asked for their own opinion regarding vaccination. The court may consider an older child’s wishes when making a decision. 

Steps to Take After a Spouse’s Death

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Thursday February 10th, 2022.

A period of unspeakable sadness follows the death of a spouse, but unfortunately, many legal and financial requirements cannot be postponed.

Taking on a to-do list while grieving is probably the last thing on your mind, so enlisting the assistance and counsel of a trustworthy family member, friend, or attorney to help you sort things out and provide emotional support is a smart option.

You may also want to seek the assistance of your financial, legal, and tax professionals. They can often assist you with many of the responsibilities, allowing you to concentrate on your loss. 

Here are five things that will need to be done shortly after the death of a spouse:

Request Certified Copies of the Death Certificate

Certified copies of your spouse’s death certificate will be required to claim benefits or transfer accounts into your name. Request at least a dozen or more copies from the funeral home. To prove you were married to the deceased, you may also be required to provide verified marriage certificates.

Gather Financial Records

Begin gathering financial documents, such as bank records, bills, credit card statements, tax returns, insurance policies, and any outstanding mortgages or loans, as well as retirement accounts. It could take time if your spouse doesn’t have a well-organized filing system. Remember, you may need to contact the corporations directly and give documentation of your spouse’s death in order to access their accounts.

Change Titles on Accounts

Accounts only in your spouse’s name should be closed, and the account holder’s information should be changed on all joint bank, investment, and credit accounts. You can request the necessary forms from your financial institutions.

Revise Beneficiary Designations

If you inherit a retirement account, such as an IRA, you can choose to roll it over to an IRA in your own name. You will want to speak with an attorney and a tax specialist to determine the best method for receiving your deceased spouse’s retirement account. You should also update beneficiary designations on such accounts.

Discuss Next Steps

A financial advisor can assist you in updating your financial strategy in light of the new situation. You can also talk about short-term adjustments, such as a budget, as well as long-term changes, such as your retirement plan and investment possibilities.

Co-Parenting and School Vacations

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Monday January 10th, 2022.

It pays to prepare ahead, whether you’re thinking about the impending holidays or want to make co-parenting with your ex go more smoothly next summer. If the two of you work together to come up with a co-parenting plan that works for everyone, you’ll have a higher chance of co-parenting peacefully.

Co-parents should consider various aspects of arranging time and collaborating over the holidays, including the children’s ages, family customs, and religious views. Additional considerations include how well the parents get along and the kind of relationships the parents have with each of the children. It’s critical to honor the traditions that are significant to each of them.

It would help if you also considered what happens during other school breaks throughout the year. For example, if one parent takes the kids on vacation during spring break, the other parent might receive the bulk of winter break.

Make it Official

Your holiday plans should be outlined in the custody agreement you reached during your divorce. The agreement should spell out how school breaks—winter, spring, and long weekends like Memorial Day, Labor Day, and others—will be spent and allocated from year to year. 

You might also want to discuss what will happen on religious holidays that your family observes that aren’t on the school calendar. If you’re going to keep your usual parenting routine over the school break, you should specify that in your contract. If you don’t, the other parent can subsequently ask a court to decide whether the child should be split or alternated.

Attorneys can help to avoid conflicts by establishing explicit guidelines in the parenting plan or custody agreement.

Every family is unique, and every divorce falls somewhere along the amicable-to-acrimonious spectrum. To eliminate any potential confusion down the road, your plan should be clearly spelled out. Some plans are highly explicit and include set dates, such as Mom getting the third week of June and Dad getting the third week of July. Others may simply specify that each parent will have one week and that all dates must be finalized and communicated by a specific date.

Parents should make every effort to adhere to the schedule.

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