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March 28, 2008

Robin Williams wife files for divorce: agent

Robin Williams' wife has filed for divorce from the Oscar-winning actor after a 19-year marriage, a spokeswoman for the actor confirmed on Wednesday.

Marsha Garces Williams filed for divorce petition at a court in San Francisco on March 21 citing irreconcilable differences, reports said.

Williams' representative, Mara Buxbaum, confirmed the divorce in an email to AFP.

Garces, 51, and Williams, 56, married in 1989, shortly after the actor's divorce from his previous wife. The couple have two children, an 18-year-old daughter and a 16-year-old son.

Garces has worked as a producer on several of Williams films including "Jakob the Liar", "Patch Adams," and "Mrs. Doubtfire."

Williams won a best supporting actor Oscar for his role in the 1997 film "Good Will Hunting" and has been nominated for an Academy Award for three other movies: "Good Morning Vietnam," "The Fisher King," and "Dead Poets Society."

Source: AFP.

March 27, 2008

Five Ways to Save Tax Money During a Divorce

Taxes are probably the last thing on the mind of someone going through a divorce. But maybe they shouldn't be. Here are some money-saving tax tips to consider if you're getting divorced

The first thing certified divorce practitioner Clay Caldwell tells his clients is to “reach agreements with each other.” It’s very important, he said, to talk with your spouse and straighten out money issues. It’s very easy to lose money if the separating couple isn't communicating.

Decide the best way to file your taxes

There are three options when filing for taxes. Filing as "Head of Household" saves you the most money and varies with income. In order to qualify under this label, you must pay more than half the cost of keeping up the home and a qualified person, such as a child, must be living with you.

The second option is to file jointly. If you have not filed for divorce before Dec. 31, filing jointly is more beneficial to you and your spouse, according to experts. Joint filing means you are both responsible for all taxes and are each entitled to a prorated share of any refunds. It also puts you in a better tax bracket. If there are additional taxes or penalties because of fraud or negligence on past returns, you could qualify as an "innocent spouse," according to Caldwell. 

Filing separately is the last way to file. This option usually means paying the most taxes. The good news, however, is that you are only responsible for your own taxes. 

Choose who will claim the children

Deciding who will claim the children depends on many things. Couples should figure out who has the higher income and who sits in the better tax bracket. The parent who establishes custody gets a dependency exemption, which could come to about $3,000 per child.

Child support is not tax deductible because it's considered something you'd pay whether or not you are divorced. However, alimony or “maintenance” is tax deductible.

Preserve assets 

State tax laws differ on divorce. Some states, such as Texas and California,are known as common law or community property states. These states treat all property owned by a married couple as a shared asset. “When you file for divorce everything is subject to division,” said Ken Raggio, a Dallas-based divorce lawyer.

California,for instance, splits community property 50/50.

Property transferred between spouses isn't subject to taxes. But selling stocks, homes and vacation homes as part of a divorce are taxed. A jointly-owned residence that one spouse has been granted the use of is tax deductible contingent upon agreements between the couple and IRS regulations. "If the non-residential spouse has agreed to pay the expenses, half the mortgage payment may be deducted as alimony, and the other half deductible as interest expenses,” said Caldwell.

Follow up on beneficiary forms after the divorce

The last tip, and perhaps the most complex divorce tax issue is retirement. “Retirement rules are so complicated, without a lawyer people can lose a lot of money,” said Lee Rosen, a North Carolina tax divorce lawyer.

All retirement benefits including qualified and unqualified plans, vested or unvested stock options, restricted stock or any other form of deferred compensation are divisible in a divorce. The transfer of retirement benefits is not taxable. Retirement benefits from an ex-spouse are taxable as ordinary income when withdrawn. You will also be taxed if you use the retirement benefits before age 59½ or don’t roll them over the right way.

When it comes to taxes in divorce, people are getting a lot smarter because they don’t want to lose money, experts said. “Time is money in divorce law,” said Caldwell. It's very unlikely you will figure out all the tax issues alone with your spouse. Keeping that in mind, any professional tax advice prior to your divorce is tax deductible, so it may be worth it to get some financial guidance.

From Fox Business. 

March 25, 2008

Forget silver anniversaries: Many couples grapple with 'gray divorce'

It's been nearly a year since Sherman Smith's 33-year marriage ended in a divorce that, he said, his ex-wife wanted after she realized she didn't love him in the same way anymore.

"A divorce is kind of like a death, but she's still there and I can't have her," said Smith, 55, of Elliottsburg, Pa. "I was really looking forward to retiring some day and spending more time with her."

Smith has spent 18 months in a divorce support group. "I'm not 100 percent, but I'm pretty doggone good," he said.

Annie, 69, of Enola, Pa., who didn't want her last name used, has been divorced since September after her husband of 47 years left her for an old high school flame.

Annie said she had considered their marriage a happy one. Divorce simply wasn't in the realm of possibilities for them.

"It hit me in the face like a two-ton truck," she said. "I hadn't a clue. It was the most absolutely horrible thing that ever happened to me. I'm still not over it. I'll never be over it."

Although the divorce rate is highest among men ages 30 to 34 and women ages 25 to 29, attorneys, marriage counselors and researchers say that increasingly, people in their 50s, 60s and 70s are grappling with what has come to be known as "gray divorce."

Higher incomes, advanced education and longer lives contribute to the trend, said Gordon Nelson, an associate professor of human development and family studies at Penn State.

"People might be becoming increasingly more independent," he said.

Mature people in long-term marriages often have multiple and complex reasons for calling it quits.

The '60s generation, more focused on happiness and personal fulfillment and less inhibited about divorce, is moving into its 60s, New Cumberland, Pa., psychologist and marriage and family therapist Sally Tice noted.

And as people live longer "there's more years to think of putting up" with unhappy marriages, she said.

Raising children can take a toll, too.

"It's very typical for couples to grow apart during the adolescent years of their children," Tice said. And if they haven't renewed their relationship, it can fall by the wayside.

Carlisle, Pa., divorce and family law attorney Carol Lindsay identified one age-old reason for gray divorce: the midlife crisis. This temporary emotional upheaval is seldom referred to as such by anyone in the midst of one, and it's typically a male phenomenon, she said.

"There's this vague longing. Mortality is calling," Lindsay said. "People throw over things they have. ... There's this sense that I missed something."

But it's not always true that older men find it easier to remarry, said Camp Hill attorney Corky Goldstein — whose oldest divorce client was 81 and "very, very unhappy" in a 44-year marriage.

"If you don't really have any money, a man in his 70s is not going to attract a younger woman," he said.

Yet, while divorce at midlife used to be more of a "male deal," increasingly women are initiating it, Lindsay said.

A 2004 AARP study of persons who had divorced between the ages of 40 and 70 confirmed Lindsay's observations: 66 percent of the women surveyed said they had asked for the divorce, compared with 41 percent of the men.

Lindsay believes a different kind of midlife event is often at work with women who, for years, cared for their husband and children.

"The hormone for taking care of people goes away and they're sick of it," she said. "They're just not in the nurturing mode any more."

Sometimes it has to do with women getting jobs and having the money to leave, coupled with a softening of the taboo against divorce, Lindsay said.

Gray divorces generally don't have the grueling, heart-rending custody issues common in younger couple's divorces, but they can be wrought with the complications of property ownership and division of assets.

In Smith's case, his ex-wife had her own pension plan, he said.

Annie, a retired teacher, also has her own pension and Social Security, but she resents how the divorce has changed her financial situation.

"When my husband and I were together we had enough money to do whatever we wanted and now I'm strapped," she said.

Some older couples show their maturity in the way they handle their divorce. "Sometimes there are graceful older people and you are so grateful for them as clients," Lindsay said. "I always think a long marriage deserves to be honored with a respectful divorce."

TIPS FOR SURVIVING DIVORCE IN LATER LIFE

• Join a support group.

• Develop same-sex friendships.

• Volunteer.

• Don't isolate yourself.

• Seek out the medical, mental health and spiritual resources.

• Give yourself time to grieve and heal.

• Consult an attorney and a financial adviser before signing any documents regarding marital assets. Choose an attorney who will advise you of your rights and represent your interests but who won't escalate matters beyond your comfort level. You both are going to want to attend the grandchildren's birthday parties.

From AJC.com.

March 18, 2008

Tax form can help in divorce

Question: I have been divorced for a few years. The divorce decree says I get to claim my daughter as a dependent and my ex is supposed to claim my son. The problem is that my ex beats me to the tax man every year and claims both children. What can I do to stop this?

Answer: You've learned that a divorce decree is typically binding only on the parties that agree to it -- and the Internal Revenue Service wasn't one of those parties.

The best way to protect your right to claim your daughter as a dependent is to have your ex-husband sign IRS Form 8332 waiving his right to claim her -- and you'll need to fill one out releasing your claim to your son. You need to fill out a separate form for each child.

Ideally, this would have been handled as part of your divorce.

"It really surprises me that divorce attorneys don't automatically include Form 8332 as one of the documents to be signed whenever child support comes into play," Rosenberg said.

If you can't get your ex-husband to cooperate, you're not out of options. If your daughter lived with you for more than half the year and you provided more than half her support for the year, and can prove both facts, Rosenberg recommends you "go ahead and file your tax return on paper, the old-fashioned way."

The IRS will challenge you, but if you can defend your position, you can prevail.

On the other hand, if you only provided support but your daughter did not sleep under your roof for at least 183 days (or otherwise met the "living with you" standard outlined in IRS Publication 501), you will lose the exemption.

"This is where getting that Form 8332 signed at the time of the divorce is so critical," Rosenberg said. "Without it, in a dispute, you lose. Sorry."

From the LA Times.

March 17, 2008

Divorce costs former Beatle McCartney $48.7 million

A British court ordered former Beatle Paul McCartney on Monday to pay his estranged wife Heather Mills 24.3 million pounds ($48.7 million) after an acrimonious divorce battle.

The settlement was only a fifth of the sum she had sought but she still ended up with the equivalent of about $34,000 for each day of her four-year marriage to the pop icon.

Speaking after the judge's ruling, Mills said: "I am so glad it is over. It is an incredible result in the end.

"We are very, very pleased," she added. "I am so, so happy with it." McCartney declined to comment.

McCartney, 65, married the former model and charity campaigner Mills, 40, in 2002 but they separated four years later, blaming media intrusion into their private lives. They have a daughter, Beatrice, aged four.

Following one of the most bitter divorce battles in show business history, the couple failed to reach an agreement after six days in court last month, leaving the judge to set the final figure.

Mills criticized McCartney's lawyer Fiona Shackleton, accusing her of handling the case badly.

She said Shackleton, who also represented heir-to-the-throne Prince Charles in his divorce from Princess Diana, "has called me many, many names before even meeting me, when I was in a wheelchair."

Mills, who sacked her lawyer and represented herself in court, urged would-be divorcees to do the same. "You can be a litigating person," she said. "You'd save yourself a fortune."

Justice Hugh Bennett, giving details of the settlement, said: "She sought an award of almost 125 million pounds. Sir Paul proposed the wife should exit the marriage with assets of 15.8 million pounds inclusive of any lump sum award.

"The judgment decided that the husband should pay the wife a lump sum of 16.5 million pounds, which together with her assets of 7.8 million pounds means that she exits her marriage with total assets of 24.3 million pounds."

DAUGHTER

The split was fought out under a remorseless media spotlight with McCartney, a founder of the world's most famous pop group, pitted against the outspoken Mills, target of lurid tales in the press about her colorful past.

The court ruled that the judgment be made public, but stayed publication pending Mills' appeal against it being made public.

Mills, speaking to a phalanx of reporters on the steps of London's High Court, said she was appealing "because the judgment involves private secure matters of my daughter."

Referring to what their daughter would receive, Mills said: "Beatrice only gets 35,000 pounds a year. So obviously she's meant to travel B Class while her father travels A class, but obviously I will pay for that."

Asked if she now planned to move abroad, Mills said: "I can't leave England. I always wanted to keep my daughter near her father. Believe me if I tried to go, he would have an injunction on me in a second."

Source: Reuters.

March 14, 2008

Sudan man forced to 'marry' goat

A Sudanese man has been forced to take a goat as his "wife", after he was caught having sex with the animal.

The goat's owner, Mr Alifi, said he surprised the man with his goat and took him to a council of elders.

They ordered the man, Mr Tombe, to pay a dowry of 15,000 Sudanese dinars ($50) to Mr Alifi.

"We have given him the goat, and as far as we know they are still together," Mr Alifi said.

Mr Alifi, of Hai Malakal in Upper Nile State, told the Juba Post newspaper that he heard a loud noise around midnight on 13 February and immediately rushed outside to find Mr Tombe with his goat.

"When I asked him: 'What are you doing there?', he fell off the back of the goat, so I captured and tied him up."

Mr Alifi then called elders to decide how to deal with the case.

"They said I should not take him to the police, but rather let him pay a dowry for my goat because he used it as his wife," Mr Alifi told the newspaper.

From the BBC.
                   

March 10, 2008

More couples hiding wealth from each other

Honesty may be the best policy for a successful marriage. But when it comes to divorce, couples are becoming increasingly devious in concealing their wealth from each other.

One fifth of couples who divorced last year tried to conceal their assets or income from their spouse - a figure which has doubled since 2006 - a report has found.

The study - by the accounting firm Grant Thornton, which surveyed 100 family lawyers - found that husbands were much more dishonest when a marriage crumbled.

In cases where assets had been hidden, 88 per cent involved men concealing wealth from their wives. Just two per cent involved women hiding assets. In the remainder of cases, both partners tried to conceal wealth from one another.

Family law experts say a spate of expensive, high-profile divorce cases, such as that of Sir Paul McCartney and his wife, Heather Mills McCartney, is spurring couples to hide their wealth from each other.

John Charman, the insurance magnate, was forced by the courts to pay his ex-wife a record £48 million settlement last year.

The property multi-millionaire Stuart Crossley was involved in a dispute with his wife Susan after she alleged during divorce proceedings that he had failed to tell her about millions in offshore accounts. She later dropped her claim for a financial settlement.

Andrea McLaren, the head of Grant Thornton's matrimonial practice, said: "The number of couples hiding assets from one another has increased by 100 per cent since last year, which is staggering.

"High-profile, big-money cases have scared individuals into trying to hide assets and there is now the perception that women are receiving more favourable settlements than men."

Vanessa Lloyd Platt, a specialist in divorce law, said she had seen a surge in the number of men trying to conceal wealth from their wives.

"Men are seeing these huge settlements and they are terrified," she said. "If they think a marriage might break down, more and more men are panicking and trying to put their capital into trusts and offshore accounts or buy assets in a third party's name so that they are hidden from their wives.

"It is not unheard of for women to lie but, in my experience, men are more likely to be dishonest when it comes to matrimonial disclosure."

The succession of high-profile divorce cases has also seen a surge in the number of couples drawing up pre-nuptial agreements. A survey of law firms found that 67 per cent reported taking on more pre-nuptial work in the past year.

From The Telegraph.

March 04, 2008

Military Divorce Rate Holding Steady

The divorce rate in the armed forces held steady last year at 3.3 percent, a surprising finding given the stress that marriages are under during persistent wars in Iraq and Afghanistan.

Some veterans questioned whether the figure, reported by the Pentagon, presents an accurate picture. But defense officials credited efforts in recent years to support couples enduring uncommonly long separations and other hardships because of those wars.

The divorce rate represented more than 25,000 failed marriages among the nearly 755,000 married active duty troops in all military branches between Oct. 1, 2006, and Oct. 1, 2007, according to statistics provided to The Associated Press.

The Defense Department data showed that the Army, the service with the largest number of troops in Iraq and Afghanistan, had a rate of 3.2 percent, unchanged from the previous year. That amounted to 8,748 divorces among the approximately 275,000 married soldiers.

Last year was the deadliest yet for U.S. troops in the wars. In addition, Army couples had to cope with extended separations because tours of duty lasted 15 months rather than 12 months.

Those longer deployments and multiple tours required of many troops have been widely blamed for unprecedented stresses on military couples. Spouses at home must manage families and households without their partner. The strain also has contributed to higher suicide rates and more mental health problems among troops.

"We all agree that there is stress on the families. It's just not manifesting itself in these numbers," a Pentagon spokesman, Lt. Col. Les Melnyk, said about the divorce statistics.

The biggest exception was a rise in divorce rates among military women. For years, their marriages have failed at twice the rate of men in service.

Though firm numbers were not available in the new data, Army divorces in 2007 appeared to occur in about 8 percent of service women's marriages and 2.6 percent of men's.

There is no comparable system for tracking civilian divorces.

The Centers for Disease Control and Prevention said the divorce rate for the general population was 3.6 per 1,000 people in 2005 - the most recent statistics available; that was the lowest rate since 1970.

The per capita divorce rate is different from a second method of calculation - the percentage of marriages that eventually will end in divorce or separation. The CDC said that year that 43 percent of all first marriages end in divorce within 10 years.

There is more about this topic at Forbes.

March 03, 2008

Marital status at the end of the year determines filing status

Q: My divorce was final in December 2007. How should I file my taxes? Can I file as single now or do my ex and I have to do one last joint return since we were married for the majority of 2007?

Answer from AICPA member Lisa R. Featherngill: Your filing status is determined on the last day of the year.

Thus, you can file single for 2007. If you have children, one of you may consider filing head-of-household to lower your tax rate.

For more information:     What is your Filing status? 

From USA Today.