Other Issues?

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NON CITIZENS – If you are not a United States citizen, and your residence in the United States is related to your marriage to a citizen or a green-card holder, GET IMMIGRATION ADVICE FROM AN IMMIGRATION LAWYER BEFORE YOUR DIVORCE. We do NOT give immigration advice.  We can refer you to an immigration lawyer.

TAXES – There are often tax issues in a divorce. Child support is NOT deductible. Alimony is generally deductible by the payor and INCOME to the recipient. Tax exemptions, deductions and credits for children go to the person with physical custody unless that person gives up the right or the court awards the exemption, deduction or credit to the other party. If property is sold or otherwise transferred (stocks, real estate, etc.) or an IRA is cashed in, there may be taxes to pay. Various tax benefits such as the ability to avoid taxes on a gain when you sell your home may also be lost as a result of your divorce. Get advice from a tax expert unless you are SURE you know what the tax result will be. If a person is divorced before the end of the year he or she is considered to be single (unless remarried) and cannot file a joint return for that tax year.

HEALTH INSURANCE – Both federal and state laws govern insurance for ex-spouses. However, the insurance may still be canceled at a later time if one of the conditions set out in the Minnesota law on insurance continuation occurs. ASK YOUR LAWYER ABOUT THESE CONDITIONS IF YOU EXPECT INSURANCE TO BE PROVIDED BY YOUR SPOUSE’S INSURANCE CARRIER.

BANKRUPTCY – By filing bankruptcy, your spouse may or may not be able to reduce or entirely eliminate his or her obligations to you. In some cases this might mean that he or she no longer has to make certain payments to you or to your creditors. If the obligation is considered part of your property settlement, it can be discharged in a Chapter 13 case and can NOT be discharged in a Chapter 7. However, obligations to pay a domestic support obligation (alimony, child support or family support) can NOT be discharged.

The combination of divorce and bankruptcy creates a complicated situation. PLEASE CALL US at 651-639-0313 if you or your spouse might file a bankruptcy petition in the future. If you find out your spouse or ex-spouse is filing bankruptcy, contact us IMMEDIATELY.

 

WILLS – A divorce is a significant change in your life, and is a good time to think about changing your will, or making one if you don’t have one. If you or your spouse have a will, your divorce can change how some property would be distributed upon death.

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