This blog was written exclusively for It’s Over Easy® and addresses the additional challenges of divorcing during the holidays and a pandemic. Although we may not have full data for some time on how COVID-19 has affected divorce rates, there is evidence to suggest the pandemic did indeed put high strain on more marriages.
Taxes may not be the top priority of your clients when you are helping them through a divorce. There are many decisions made in a divorce that can impact your clients’ tax situations for a long time. These decisions can be costly and if you are not aware of the tax implications, then any additional tax costs may not be accounted for in the divorce settlement.
When irrevocable trusts are drafted in happier times, and then times change, is it possible to reduce or even eliminate the interest of an ex-spouse or soon to be ex-spouse? Trustees potentially have access to powerful tools that might change beneficial interests. Indeed, it might be said that there is no such thing as an “irrevocable” trust. In any event, family law practitioners should counsel clients to investigate the options.