Mogren, Glessner & Roit, P.S., is a law firm located in the south Seattle area (Renton) of Washington. We offer services in the area of family law, including declaration of invalidity, legal separation, dissolution of marriage, and modifications of various final orders (child support, spousal maintenance and parenting plans). If you live in the greater Seattle area, and need an experienced family law attorney, please call us at 425-255-4542 and talk to one of our attorneys.
Tuesday, March 27, 2012
Seattle Divorce Attorney
Mogren, Glessner & Roit, P.S., is a law firm located in the south Seattle area (Renton) of Washington. We offer services in the area of family law, including declaration of invalidity, legal separation, dissolution of marriage, and modifications of various final orders (child support, spousal maintenance and parenting plans). If you live in the greater Seattle area, and need an experienced family law attorney, please call us at 425-255-4542 and talk to one of our attorneys.
Thursday, March 22, 2012
Office Manager
http://mgrlaw.com/ Our office manager, Madeleine Moore, was in a car accident over the weekend. Our prayers go out to her as she recovers. Madeleine has worked in the office longer than any of the attorneys, and her work is greatly appreciated.
Friday, March 16, 2012
Lincoln County Washington Divorce
http://mgrlaw.com/ In the past, Lincoln County was the preferred county in Washington to file for divorces prepared by paralegals. The reason was paralegals could not appear in court, and Lincoln County was the only county in Washington that would allow the entry of a Decree without personal testimony. Therefore, paralegals would prepare the documents for clients, who would file in Lincoln County and could finalize without appearing in court.
Recently, King County eliminated the necessity for personal testimony in entry of a Decree. Instead, a simple written Declaration by the client will suffice. This eliminates the need to file in Lincoln County. This also eliminates problems for clients, when years later, there is a problem, and you need to return to court. If you reside in King County and the Decree is in Lincoln County, you have a problem. You either have to litigate the issue the other side of the mountains (just outside of Spokane), or transfer the case over to King County.
There is no longer a need to file in Lincoln County (unless you live there). You should file in the county in which you reside.
Wednesday, March 14, 2012
When can a Child Decide Where They Want to Live in a Divorce?
In Washington, a child cannot decide where they will live in a divorce process. This is the decision of the parents, and if the parents cannot decide, then the courts will decide.
Depending upon the age and maturity of the child, the court may take the child's wishes into consideration, but generally the courts do not want the child involved in this decision. The court may appoint a Guardian Ad Litem to represent the best interests (not stated desires) of the child in the process, or appoint a parenting evaluator (M.S.W. or Psychiatrist or Psychologist) to make a recommendation to the court as to the child's best interests. Again, depending upon the age of the child, these experts may ask the child questions like how they get along with each parent or what they like to do with each parent, but will usually not ask the child who they want to live with, as that is an inappropriate question.
There are many reasons a child should not be asked this question. Generally, children want to live with both parents in a happy family, which is no longer an option. Younger children will tell both parents in private that they want to live with them, because that is true, and they don't want to hurt their feelings. It is not appropriate to force a child essentially reject one parent in this legal process they had nothing to do with. Older teens can pit one parent against the other, saying if you give me ____ (bicycle, car, etc.), then I will say I want to live with you. We cannot give children that kind of authority, or the parents will lose all authority.
This is the decision of the parents, not the child. If the parents cannot agree, then the courts are there to decide.
Wednesday, October 27, 2010
Divorce and Taxes
Divorce often presents tax issues that need to be resolved, including those relating to property and debt, spousal maintenance, child support and sometimes previously filed (or yet to be filed) tax returns. Because of the complexity and high stakes associated with divorce and taxes, this area is one in which you should try to keep the communication open and the emotions out. It will only benefit Uncle Sam if you file separate tax returns out of spite when filing jointly is beneficial. Do not assume that you will be able to claim all deductions and exemptions. That will only lead to fines, penalties and audits if you are wrong. Make sure that all tax-related issues are settled and clearly stated in your Property Settlement Agreement and/or Decree and Order of Child Support. Several issues arise related to divorce and taxes:
1. Filing Status: How are you going to file your taxes? Determine the most financially feasible way to file. Typically, filing a Married Joint Return will result in the lowest taxes. Hint: Do not look at a joint return as any kind of “attachment” to your spouse; this decision is strictly financial. If you are divorced before December 31 of the tax year, you cannot file a joint return for that year.
2. If you do sign a joint return, the law holds both you and your spouse responsible for the entire tax liability. This is called joint and several liability. Joint and several liability applies not only to the tax liability you show on the return but also to any additional tax liability the IRS determines to be due, even if the additional tax is due to income, deductions, or credits of your spouse or former spouse. You remain jointly and severally liable for the taxes, and the IRS can still collect from you, even if you later divorce and the divorce decree states that your former spouse will be solely responsible for the tax obligation. If you are going to do a joint return after separation, you should use a CPA or qualified tax preparer to avoid any mistakes or problems.
3. If you have wrongfully been held responsible for your spouse’s obligation, you can claim that you are an “innocent spouse” and file the appropriate forms with the IRS. Here, you argue that you did not know, and had no reason to know about any under reporting of income or other wrongdoing associated with the filing of the return and therefore should not be held responsible for paying any additional taxes, penalties or interest due.
4. Exemptions: You may claim a child that does not live with you only if it is stated in your Order of Child Support or if mutually agreed upon. Allocation of the tax dependency exemption may be modified by the court upon the filing of a Petition to Modify by either party. If it can be shown that it would be in the best interest of the child for the non-residential parent to claim the child as a tax dependency exemption, the court can award the exemption to the non-residential parent. Where there is more than one child of the marriage and one of the parties has a small amount of income, the tax dependency exemption and child tax credit may not be taken advantage of if that party claims all of the children. At certain income levels, claiming more than one child may not increase the tax refund of the lesser earning parent, whereas the party with greater income could save thousands of dollars each year if the tax dependency exemptions are properly allocated. For this reason, allocation of the tax dependency exemptions is a very important part of every divorce with minor children.
5. Liabilities and Refunds: Taxes owed, or refunds received for time periods before the separation, are usually treated as “community” assets/liabilities and are therefore, split equitably between the parties. In the heat of the moment, some spouses will intercept a tax refund and cash it without the other’s knowledge. All funds must be accounted for and it is likely that if a spouse engages in this behavior their share of the final property settlement will be reduced.
1. Filing Status: How are you going to file your taxes? Determine the most financially feasible way to file. Typically, filing a Married Joint Return will result in the lowest taxes. Hint: Do not look at a joint return as any kind of “attachment” to your spouse; this decision is strictly financial. If you are divorced before December 31 of the tax year, you cannot file a joint return for that year.
2. If you do sign a joint return, the law holds both you and your spouse responsible for the entire tax liability. This is called joint and several liability. Joint and several liability applies not only to the tax liability you show on the return but also to any additional tax liability the IRS determines to be due, even if the additional tax is due to income, deductions, or credits of your spouse or former spouse. You remain jointly and severally liable for the taxes, and the IRS can still collect from you, even if you later divorce and the divorce decree states that your former spouse will be solely responsible for the tax obligation. If you are going to do a joint return after separation, you should use a CPA or qualified tax preparer to avoid any mistakes or problems.
3. If you have wrongfully been held responsible for your spouse’s obligation, you can claim that you are an “innocent spouse” and file the appropriate forms with the IRS. Here, you argue that you did not know, and had no reason to know about any under reporting of income or other wrongdoing associated with the filing of the return and therefore should not be held responsible for paying any additional taxes, penalties or interest due.
4. Exemptions: You may claim a child that does not live with you only if it is stated in your Order of Child Support or if mutually agreed upon. Allocation of the tax dependency exemption may be modified by the court upon the filing of a Petition to Modify by either party. If it can be shown that it would be in the best interest of the child for the non-residential parent to claim the child as a tax dependency exemption, the court can award the exemption to the non-residential parent. Where there is more than one child of the marriage and one of the parties has a small amount of income, the tax dependency exemption and child tax credit may not be taken advantage of if that party claims all of the children. At certain income levels, claiming more than one child may not increase the tax refund of the lesser earning parent, whereas the party with greater income could save thousands of dollars each year if the tax dependency exemptions are properly allocated. For this reason, allocation of the tax dependency exemptions is a very important part of every divorce with minor children.
5. Liabilities and Refunds: Taxes owed, or refunds received for time periods before the separation, are usually treated as “community” assets/liabilities and are therefore, split equitably between the parties. In the heat of the moment, some spouses will intercept a tax refund and cash it without the other’s knowledge. All funds must be accounted for and it is likely that if a spouse engages in this behavior their share of the final property settlement will be reduced.
6. Child Support and Maintenance: Child support is not considered income for the receiving parent and is not deductible for tax purposes for the paying parent. Spousal maintenance is considered income for the receiving parent (they must pay income taxes on the money received), and is tax deductible for the paying parent.
The Renton law firm of Mogren, Glessner & Roti, represents clients in a variety of family law cases. Please visit our web page at Seattle Divorce Lawyers for more information.
The Renton law firm of Mogren, Glessner & Roti, represents clients in a variety of family law cases. Please visit our web page at Seattle Divorce Lawyers for more information.
Monday, October 25, 2010
Columbia Gorge Half Marathon
Sunday I ran the Columbia Gorge Half Marathon (13.1 miles) with 2 friends. It rained at the start but then stopped. It was a beautiful route on the old highway, looking down on the Columbia River and the gorge. We ran much faster than anticipated, and amazingly I finished 2nd in my age catagory.
Friday, October 22, 2010
Dividing a Business Interest
When one party to a divorce is either self employed or has an ownership interest in a business, there are typically two issue that arise. The first, as discussed in my prior blog entry, is determining that persons actual income for child support and/or spousal maintenance purposes. The second issue, which is the topic of this entry, is to determine the actual value of the business interest for property division purposes.
A business is can not only be a source of income, it is also an asset to be divided. Like any other asset (house, retirement, car, investment, etc.), before we award the asset to one party or the other, we need to know its value.
In many small businesses, especially sole proprietorships with no employees, it it is a service business, it may have no value other than as a job or source of income. There may be the value of the assets, equipment, inventory and accounts receivable, but there is no value of the business itself that would be bought or sold by a third party. Therefore there is no additional value to be considered in the divorce in dividing assets. No one would pay money to purchase your [plumbing, contractor, hair cutting, etc.] business, when they could just open up their own business.
In many other businesses, the business is more than just a job, it is an ongoing concern that would have value to a third party who would pay money to purchase it. If the owner died, the business could still continue and flourish. In these cases, the issue becomes, how do we establish a value. The best way to determine the value of the business is to hire a business appraiser. They are professionals who have expertise in valuing businesses. They will look at the tax returns and bookkeeping records of the business, the type of business and its future, the value of similar businesses, and other relevant factors to determine its value.
Once we have determined a value of the business, it can be added to the spreadsheet to determine a fair and equitable division of all of the assets.
The Renton law firm of Mogren, Glessner & Roti, represents clients in a variety of family law cases. Please visit our web page at Seattle Divorce Lawyers for more information.
A business is can not only be a source of income, it is also an asset to be divided. Like any other asset (house, retirement, car, investment, etc.), before we award the asset to one party or the other, we need to know its value.
In many small businesses, especially sole proprietorships with no employees, it it is a service business, it may have no value other than as a job or source of income. There may be the value of the assets, equipment, inventory and accounts receivable, but there is no value of the business itself that would be bought or sold by a third party. Therefore there is no additional value to be considered in the divorce in dividing assets. No one would pay money to purchase your [plumbing, contractor, hair cutting, etc.] business, when they could just open up their own business.
In many other businesses, the business is more than just a job, it is an ongoing concern that would have value to a third party who would pay money to purchase it. If the owner died, the business could still continue and flourish. In these cases, the issue becomes, how do we establish a value. The best way to determine the value of the business is to hire a business appraiser. They are professionals who have expertise in valuing businesses. They will look at the tax returns and bookkeeping records of the business, the type of business and its future, the value of similar businesses, and other relevant factors to determine its value.
Once we have determined a value of the business, it can be added to the spreadsheet to determine a fair and equitable division of all of the assets.
The Renton law firm of Mogren, Glessner & Roti, represents clients in a variety of family law cases. Please visit our web page at Seattle Divorce Lawyers for more information.
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