Determining how military benefits should be awarded to spouses and former spouses after the death of a servicemember is complex and based on a variety of factors, including the date and manner of the servicemember’s death and which military benefit is in question. Continue reading →
Divorcing spouses are not guaranteed to receive an equal distribution of their marital assets and debts. If either spouse requests equitable distribution, the court will divide their property in a way that is determined to be fair, which isn’t always 50/50. Continue reading →
North Carolina law states that it is presumed that all property acquired between the date of marriage and separation is considered marital property, which includes business interests. When determining the value of businesses, goodwill is often a component of the valuation. This includes intangible assets like brand reputation, intellectual property, customer relationships, and future earning potential. While goodwill is challenging to quantify, it does have value and marketability. Continue reading →
Among the most complex issues involved in divorce cases is the distribution of retirement benefits through the entry of Qualified Domestic Relations Orders (QDROs). Retirement plans that are governed by the Employee Retirement Income Security Act (ERISA) must be divided by QDROs, and alternate payees of such plans can be spouses, ex-spouses, or dependents of the plan participant.
When the participant dies before retirement, their surviving spouse is often the recipient of their retirement benefits. However, distributing funds in these circumstances can quickly become a challenge if there are multiple parties with claims to the funds and there is no QDRO in place. Continue reading →
Qualified Domestic Relations Orders (QDROs) are used to divide certain retirement plans and award a portion of the funds to an alternate payee. QDROs are typically used as part of the distribution of assets and property in a divorce, and the alternate payee is typically a spouse or former spouse. However, there are other scenarios in which a QDRO may be used to give someone rights to a retirement plan as an alternate payee. Continue reading →
Divorce decrees often include terms regarding the division of property, like bank accounts and real estate, but these court orders do not always have the authority to distribute every asset. Typically, a qualified domestic relations order (QDRO) must be used to divide and distribute rights to pension funds and certain other retirement accounts. Continue reading →
Filing taxes can be complicated in the best of situations, but when there are complex factors involved, like financial control by one spouse, the outcome is not always equitable. The Internal Revenue Code Section 6015 provides a remedy for some spouses facing tax deficiencies, but there are strict qualifications for entitlement under this section. Continue reading →
North Carolina spouses who file federal taxes jointly are typically liable for the taxes that are due when they file. This may create issues and complications in a number of scenarios, but there is an exception to this rule if one spouse seeks to be relieved from liability.
Requesting equitable relief under the Internal Revenue Code can be challenging because taxpayers must meet specific conditions to be eligible.
For spouses and ex-spouses facing economic hardship and seeking equitable relief from joint and several tax liability, filing a request for relief under federal law may be an option. The Internal Revenue Code (I.R.C.) provides an exception to the usual rule that spouses are liable for each other’s tax debt and liabilities, but filers must provide convincing evidence that they are facing an economic hardship if they choose that route for relief.
In the case of Thomas v. Commissioner of Internal Revenue, Thomas requested relief from underpayments for three years of tax returns based on her assertion that she was facing an economic hardship. Thomas sought liability relief for tax underpayments discovered by the Internal Revenue Service (IRS) for tax years 2012 through 2014, but Commissioner denied the request. When the issue went before the United States Tax Court, the Court denied Thomas’ request for equitable relief based on economic hardship under Internal Revenue Code Section 6015(f) because she had significant assets and did not prove hardship based on her income.
March is Women’s History Month, a time to celebrate the achievements of the countless women who have shaped the course of history. In the legal world, the Supreme Court is the pinnacle of the judiciary, and the six women who have served as Supreme Court Justices have played a major part in the Court’s evolution. As we celebrate Women’s History Month, let’s take a moment to honor their legacies and celebrate their invaluable contributions to the Court. Continue reading →
North Carolina Divorce Lawyers Blog