Ed Shaw Law - No Nonsense Legal Advice
Call 800-507-0352 To Schedule A Consultation
To Schedule A Consultation
Offices in St. Cloud and Brainerd, serving all surrounding areas
Coronavirus Impact and Assurance: Yes! We are still open for business!

For the last year, thanks to the hard work of all of our staff, and you, our clients, no one who works at this office has gotten Covid while working here, and we have not spread a single case to any of our clients, while getting all of our client's legal needs taken care of. With the spread of vaccination the end is in sight, normal times where we can meet our clients in person in the office are just around the corner.

During the transition we will be having some in person, in office appointments for clients who have already been vaccinated, and for whom the CDC recommended period of time has passed since their last shot. Of course, for anyone who would prefer a phone or video appointment for safety, convenience, or any other reason those types of appointments are always available.

The weather is warming up and outdoor-in person appointments are now available. The updated CDC guidelines indicate that masks are not needed for vaccinated people outside if not in close quarters; although as a precaution we will continue to practice social distancing. If you have not had your vaccination, masks will continue to be a requirement.

Through the transition safety of all staff and clients will continue to be our top priority, we look forward to seeing you soon.

Please see our blog for more info on pandemic response.

Managing a divorce following new alimony tax laws

| Dec 27, 2018 | Divorce

When couples in Minnesota contemplate divorce, they likely think about how they will divide up their assets, who will have custody of any children involved, who will get the home or whether it’s best to sell the home and then divide the assets. As of Jan. 1, 2019, divorcing individuals will face new tax guidelines that may impact how they go about making these decisions.

For more than seven decades, tax law stipulated that the money an individual paid to their ex-spouse as alimony was tax-deductible. Conversely, the money an individual received as alimony from their ex-spouse was considered taxable income. As a result of the changes in tax law, this will no longer be the case.

Other changes that went into effect in 2017 include a change on mortgage interest deductions. Prior to this change, mortgage interest deductions were capped at $1 million. Now, they are capped at $750,000. This may affect whether one of the spouses wants to keep the house as keeping the house may not have the same tax benefits as it did in years past.

A good option that some spouses may consider is the division of property payments as opposed to alimony. As an example, the couple could sell their home worth $1 million, and one spouse could have the responsibility of paying the other spouse $500,000 over the period of multiple months or years. Division of property is a nontaxable event.

The downside of doing this is that if one spouse files for bankruptcy, the bankruptcy could lead to the division of property payments disappearing. Alimony is usually not discharged in a bankruptcy.

A family law attorney may help their client by providing them advice and guidance as they go through the divorce proceedings. An attorney may be able to help their client understand property valuation, draw up documents pertaining to child custody and alimony payments and represent their client in court if needed.

FindLaw Network