can effectively cut a lifetime of asset creation into two. The pieces
are seldom equal. The battle for who gets the bigger half is seldom
2006, the UK saw 12.2 divorced people for every 1,000 people. As
a percentage of all marriages that was about 40 per cent, and in
the US the statistic stands at about 45 per cent of all marriages.
hardly do financial planning for a divorce; it is always after the
fact. Of course this does not include a scheming spouse, who begins
to scuttle away money from the systems in the marriage or home.
nevertheless, the tax laws are lenient to the one who pays the alimony
is not an absolute right in the dissolution of a marriage, but it
may be established in a settlement, by the courts, that seek to
provide financial support to a former partner.
is the monetary payment to an existing spouse where the marriage
has not been dissolved.
there is no marriage, such as in a legal common-law relationship,
then an affidavit is sufficient testimony to the relationship, and
the right to claim.
orders and deeds of separation must be court documents, and these
constitute proof for filing the claims. All the monies paid as a
result of these orders can be claimed as a tax deduction.
is subtracted from the gross income, before you begin to compute
your taxable income.
question about the first-time homeowners claim then becomes
something of a tickle, or a nightmare, depending on which side of
the bigger half equation you stand.
normal circumstances a couple or an individual may claim an allowance
of $10,000, upon the acquisition of a new home, whether constructed
or previously built by the vendor. The home must have been acquired
after January 1, 2003. This can only be claimed in one year!
the event of a divorce, if you didnt get the house, you will
have to find a new place to live. If you can buy a new house, will
Inland Revenue recognise you as a first-time owner?
series of tests can be a nightmare in terms of the documentation
trail. Who really paid for the first home? Who really benefited
from the tax claim? What about if the marital home was purchased
before 2003, when no claim was available? Can you purchase a new
home in 2005 and still have the $10,000?
experience is that the BIR is reasonable, but the trail of documents
necessary will make a reasonable woman, unreasonable.
essential thing is forward thinking. If you are entering the process,
keep your documents carefully, and remember to request specific
documents that will fully represent a paper trail.
begin to rebuild an estate, savings, pensions and assets after a
divorce is not an easy task. Monetary compensation can neither replace
the pain and the hurt, nor buy you the time you will need to rebuild.
the bright side, the divorce rates in first world countries have
all been toppling. Maybe people are not getting married as much
or maybe people are holding on to their families longer.
age of the nuclear family is dimming, and the extended family construct