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How the new tax law impacts prenuptial agreements

Aug 24, 2018
California residents and others who wish to use the current rules regarding alimony payments need to finalize their divorces by the end of 2018. Starting on the first day of 2019, alimony payments are no longer tax deductible. Those who receive them will no longer consider the payments as income. The change in the tax code could present unique challenges to those who have prenuptial or postnuptial agreements.

There is no clear answer to the question of whether such an agreement would be grandfathered in under the old law. If it isn’t, those who are paying alimony may want to review their current agreements and make any changes now as opposed to taking a chance later in court. This is because they may want to consider paying less alimony as their payments are not offset by a reduced tax bill. Ideally, a couple will review an agreement while the relationship is in good standing as it can be easier to negotiate new terms.

Furthermore, a couple should approach renegotiating a prenuptial agreement with the goal of preserving their current relationship. This may be done by working with a mediator as opposed to attempting to make changes on their own. A mediator is someone who will help two people focus on overcoming their differences as opposed to getting bogged down in conflict.

Working with a mediator may make it easier to come to an agreement as it relates to alimony payments or similar issues. It may also make it possible for a couple to preserve its relationship by involving a neutral party. If an agreement is reached, it is worth having the document reviewed by an attorney prior to signing it. In some cases, it takes multiple meetings with a mediator to resolve all outstanding issues.

Pitt, Jolie to negotiate over child custody

19 Oct, 2018
Many California parents benefit from mediation when working out custody issues during a divorce or break-up, and the same is true of celebrities like Angelina Jolie and Brad Pitt. The two stars are currently negotiating a custody agreement for their six children. They are working with an evaluator appointed by the court to review their custody situation. While the actors reached an interim custody agreement in the past, the divorce has been moving forward for over two years, since September 2016. Jolie, 43, hired a new divorce attorney in September 2018 to represent her interests in the split. The actress’ representatives said that she is working on “healing her family” and wants the children to have a reconciliation with their father. The current interim custody agreement was agreed to by Jolie and Pitt after the child custody evaluator made recommendations. According to Jolie’s representatives, Pitt has not paid child support since the separation and has not informally paid half of the children’s expenses since that time. Jolie is reportedly planning to seek a retroactive child support order enforcing Pitt’s responsibilities to provide for the children and pay for his share of their expenses. While divorce and custody mediation can be an important part of resolving a long-running celebrity divorce, it can also be helpful to couples with lower levels of wealth and visibility. In fact, mediation may control growing legal fees. The mediation process can help couples reach creative solutions for child custody, property division, spousal support and other key issues, especially proposals that would not normally be ordered by a judge absent the separate agreement of the parties. By going through a divorce mediation process, spouses can establish a fair agreement that respects both parties’ interests.

Resolving parenting disagreements after a divorce

04 Oct, 2018
After a divorce, parents in California may share physical custody, or one parent might have physical custody while the other parent has visitation rights. In the former situation, the child would live with each parent for roughly an equal amount of time while in the latter situation, the child would primarily live with one parent but spend time with the other. Legal custody is separate from physical custody, and parents who do not share physical custody might still share legal custody. Legal custody refers to the right of the parents to make major decisions about the child’s life. This could include what religion the child practices, where the child goes to school and what kind of medical treatment the child receives. Sharing legal custody has advantages and disadvantages. It ensures the meaningful involvement of both parents in the child’s life, and it is an excellent arrangement for parents who are committed to collaboration. On the other hand, parents may struggle with effective communication or disagreements about how to raise the child. Parents who do run up against a disagreement they cannot resolve still have options. They may agree earlier on that a neutral third party can be turned to in these decisions, or a mediator may help them resolve the conflict. Courts may intervene, but usually only regarding major issues. In family law negotiation , whether a parenting issue needs to be resolved or parents are trying to reach an initial plan for child custody and visitation, mediation can be a valuable tool. The goal of mediation is to make sure both sides are heard, that conflict is resolved and that a resolution is reached that satisfies everyone involved. With mediation during the divorce process, parents may be able to establish a solid basis for co-parenting that can help them whether they only share legal custody or both legal and physical custody.

Musicians in mediation to resolve custody dispute

19 Sep, 2018
After Gwen Stefani and Gavin Rossdale got divorced in 2015, their three children mostly lived with Stefani in Los Angeles. This was because Rossdale was on tour with his band and fulfilled other professional duties in Europe. However, now that Rossdale is back, he wants more time with his children while their mother wants the kids to have a more stable living environment. It is said that she believes that the kids want to focus on their schoolwork and other responsibilities whereas their father wants to live a carefree lifestyle. The couple has resolved to engage in mediation sessions in an effort to resolve disagreements about parenting time. They also aim to resolve issues related to how the kids are raised. Since the split, Stefani has moved onto a relationship with Blake Shelton, and it is said that the children enjoy having him around. Parents who are unable to agree on how their children should be raised may feel frustrated or upset about the situation. While it may be tempting to make decisions based on hurt feelings, it may be best to speak with a neutral party to find a solution to the problem. A mediator can act as that neutral party, and his or her role is to make it easier for both sides to express their feelings in a healthy manner. An agreement on issues ranging from a child’s upbringing to how much time each parent spends with a child could be reached through mediation. In some cases, it will take multiple sessions to resolve one or more issues. Agreements may be reviewed by a parent’s independent legal counsel prior to being signed. However, once they are signed, agreements reached through mediation are generally binding.
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