Kennedy Law Associates' Blog

Spousal support is often one of the primary issues decided in a North Carolina divorce. However, it's usually one of the last points that gets settled in court. That's because the division of assets has a big impact on how much support an ex-spouse might need to maintain a decent standard of living. The final figure is often calculated using five different factors: the recipient spouse's needs, length of marriage, age/health, prior lifestyle and the ability of the payer spouse to pay.

Spousal support agreements can be modified after a court decision when financial circumstances change for either party. However, arrangements can also be made to setup non-modifiable support to avoid future court costs. Spousal support almost always has an end date, but the agreement can end early. This happens when one of the spouses dies or when the recipient spouse remarries.

North Carolina business owners who decide to divorce may face unique complications and concerns. In many cases, spouses worked together in a number of different ways to build a family business. Determining how to divide a business in an equitable way that satisfies both spouses can be a lengthy process. In order to divide a family business, each spouse should seriously consider their future plans for the company.

Dividing a family business can be especially complex when the company is large and valuable. During a high-asset divorce, both parties can benefit from an objective, formal appraisal conducted by a third party. This can help spouses to negotiate an agreement to divide the business based on its value. In some cases, one spouse may retain the company in exchange for other property or a direct buyout. This can be helpful in terms of taxes because the purchase will be considered a property transfer during divorce and therefore exempted from taxation. In other cases, a couple may structure the sale to move forward over time.

Going through a divorce is usually not easy emotionally. After all, splitting property can be tremendously stressful. Often, the best way to reduce stress is to formulate a plan for getting through the divorce process. Focusing on reaching an acceptable settlement may also be a good strategy. 

Unfortunately, when spouses divide assets or think about child custody, arguments often arise. Sometimes, though, there is no clear answer to your disagreements. To bolster your side, you may need a professional opinion. Here are three types of experts who may be helpful: 

Following a divorce in North Carolina, a child can be claimed as a dependent by only one parent per tax year. Ideally, exes will agree ahead of time on who gets to do this. Usually, it is the custodial parent. If the custodial parent wants to give the other parent the right to claim the child, this can be done with Form 8332. However, if parents disagree about who can make this claim, there could be problems.

The IRS accepts the dependent claim from the first parent who files. In the case of a conflict, the agency uses several factors to determine which parent can claim the dependent. Usually, this is the person with whom the child lives most of the time. For exes who share custody, the IRS will usually calculate their adjusted gross income and grant the claim to the person with the highest AGI. This is based on the assumption that the parent who earns more is also contributing more to the child's support.