Minion & ShermanMinion & Sherman2026-05-06T07:20:56Zhttps://www.minionsherman.com/feed/atom/WordPress/wp-content/uploads/sites/1103751/2019/08/cropped-ID-32x32.jpgOn Behalf of Minion & Sherman<![CDATA[What are tax implications of property division in a New Jersey divorce?]]>https://www.minionsherman.com/?p=513462024-12-19T17:09:02Z2024-12-19T17:06:19ZHow are assets divided?
New Jersey follows the equitable distribution model for dividing assets in a divorce. This means spouses divide their property fairly, though not necessarily equally, based on each party's contributions and needs.
Marital property consists of assets obtained during the marriage, whereas separate property pertains to assets owned individually before the marriage. It's important to note that some assets intended for one spouse can become marital property if used jointly or if their value appreciates.
For example, inheritances intended for one spouse are typically considered separate property, especially if received before the marriage. However, commingling inheritance with marital assets or using it for joint purposes can make it marital property. This means it could be subject to division during a divorce. It's important to keep inheritances separate to avoid division.
Understanding these distinctions can help in negotiating a fair settlement.
Retirement accounts: Withdrawals from non-Roth retirement accounts are taxable. Consider a qualified domestic relations order (QDRO) to split these accounts without penalty.
Real estate: The sale of a marital home may qualify for a capital gains exclusion under certain conditions.
Brokerage accounts: Long-term investments can be taxed at favorable capital gains rates. Review cost bases to minimize taxable gains.
Cash assets: These have no tax implications, making them favorable for immediate liquidity needs.
Stock options: These can be complex, with potential tax liabilities upon exercise or sale. Evaluate vesting schedules and consult with financial professionals.
Businesses: Valuing and dividing business interests can be challenging, with tax implications for both parties.
Some couples may specify asset distribution in pre or postnuptial agreements to avoid or reduce tax repercussions. Others must be aware of the possible consequences. That’s why seeking guidance from an experienced New Jersey divorce lawyer can be crucial for identifying and avoiding these financial liabilities.]]>On Behalf of Minion & Sherman<![CDATA[How can bankruptcy protect you from adverse actions?]]>https://www.minionsherman.com/?p=513422026-05-06T07:20:56Z2024-11-20T21:05:09Z1. Bankruptcy can stop harassment from creditors.
One of the immediate reliefs that bankruptcy offers is an automatic stay. This legal provision halts creditors from making direct contact with you or taking further collection actions. Whether you have experienced persistent phone calls, threatening letters or unwelcome home visits, the automatic stay puts a stop to them.
2. Bankruptcy can keep the utilities connected.
For many facing financial strain, the threat of utility disconnections is a real concern. If you’re at risk of having your electricity, water or gas cut off, filing for bankruptcy can provide a temporary safeguard against these actions.
3. Bankruptcy can keep people in their homes.
Home is where the heart is, and the threat of losing it can be emotionally and physically taxing. Bankruptcy can help protect your residence. For homeowners, filing can temporarily halt foreclosure processes, giving you time to catch up on overdue payments or restructure your mortgage. Renters also benefit, as bankruptcy can delay eviction proceedings initiated by landlords, offering a crucial window to find financial stability.
4. Bankruptcy can stop wage garnishment.
Wage garnishment — where creditors take a portion of your paycheck — can significantly impact your ability to manage daily expenses. By filing for bankruptcy, you can stop most garnishments. This protection ensures that you can use your full income to support yourself and your family during these challenging times, without the additional stress of reduced wages.
5. Bankruptcy can prevent repossession.
If you are behind on payments for your car or other important possessions, creditors may seek repossession. Filing for bankruptcy can halt this process, keeping essential assets in your hands. This is particularly important for maintaining employment, as having a vehicle is often necessary for commuting to work.
If you are considering filing for bankruptcy and want to know more about how it can protect you from adverse creditor actions, consider reaching out to a West Caldwell bankruptcy lawyer. They can help you understand the ways that bankruptcy can address the adverse actions creditors have taken against you.
Bankruptcy offers people in Essex County and beyond a way to take control of their finances, starting with the day they file. Understanding the protections bankruptcy provides can help you approach the bankruptcy process with greater confidence.]]>On Behalf of Minion & Sherman<![CDATA[How could bankruptcy impact your divorce?]]>https://www.minionsherman.com/?p=513432026-05-06T07:18:20Z2024-11-19T21:08:01ZWhen financial struggles and family law collide
When one or both spouses file for bankruptcy in New Jersey during or after a divorce, several legal and financial considerations come into play.
In a divorce, dividing the couple’s assets between the spouses can be one of the most complex issues to resolve. When bankruptcy is involved, this already contentious process can become even more challenging. The automatic stay that halts collections could pause the process of dividing the couple’s property until after the courts finalize the bankruptcy.
Bankruptcy does not discharge obligations like spousal or child support, and people must still pay these debts despite bankruptcy proceedings. However, the financial restructuring that occurs in bankruptcy might affect the ability to pay or receive these supports. For example, if the paying spouse files for bankruptcy, they might seek to adjust the support payments to reflect their restructured finances. This can mean that they pay less support as they work to pay off their debts.
The right representation is key
Given the complexities involved in handling both bankruptcy and divorce, it is crucial to have the right support. A family lawyer with experience in both areas of law can provide crucial support and guidance, helping to secure a stable financial and personal future post-divorce. They can also use their knowledge of both legal processes to help you create a strategy that protects your interests and gives you a stronger foundation for the next chapter of your life.
The interplay between bankruptcy and divorce requires careful consideration and strategic planning. Understanding how bankruptcy could impact your divorce can help you make informed decisions that protect your finances as you end your marriage.]]>On Behalf of Minion & Sherman<![CDATA[Can you keep cryptocurrency when filing bankruptcy?]]>https://www.minionsherman.com/?p=513372024-07-01T18:23:06Z2024-07-01T18:21:01ZChapter 7 bankruptcy likely means liquidation
In a Chapter 7 bankruptcy, the bankruptcy trustee liquidates non-exempt assets to pay off creditors. Cryptocurrency could be considered an asset. If any applicable exemptions do not cover the cryptocurrency, it likely needs to be accurately valued and liquidated.
Chapter 13 may allow you to keep it
In a Chapter 13 bankruptcy, debtors create a repayment plan to repay creditors over three to five years. Debtors may be able to keep their assets, including cryptocurrency, as long as they can make the payments required under the plan. If they pay debts in cryptocurrency, the debtor will need to determine the cryptocurrency's value accurately when repaying creditors.
Each case’s details are different
The circumstances of each case are different, so it's essential to consult with an experienced bankruptcy attorney to understand what exemptions might be available in your specific situation under New Jersey bankruptcy law. It is advisable to consult with a qualified bankruptcy attorney who can provide guidance based on the specific details of your situation and the applicable laws.]]>On Behalf of Minion & Sherman<![CDATA[What is parental alienation and are there legal implications?]]>https://www.minionsherman.com/?p=512842024-05-30T14:59:03Z2024-05-16T19:23:42ZWhat is parental alienation?
Parental alienation involves one parent constantly trying to make the other parent look bad to the child. This might include talking poorly about the other parent in front of the child or keeping the child from seeing the other parent. Often, the child starts to fear or dislike the other parent without a real reason.
Are there legal implications of parental alienation?
Courts take this problem seriously because they want to do what is best for the child. If a judge thinks parental alienation is happening, it could affect who gets custody of the child. Judges might think that a parent causing alienation can't support a good relationship between the child and the other parent.
How do courts handle parental alienation?
Judges use information from experts like psychologists and sometimes a special lawyer for the child, called a guardian ad litem, to see if parental alienation is happening. If it is, the judge might change who the child lives with or how often they see each parent. In extreme cases, the parent causing the problem might be awarded less time with the child.
What can parents involved in parental alienation do?
If you think the other parent is turning your child against you, write down everything that happens that might show this. Conversely, parents accused of alienation should provide evidence of their positive relationship with their child and their support for the child's relationship with the other parent. Stay open and honest and work with the court.
Parental alienation is a serious issue that can influence custody decisions. Understanding the laws and getting the right help is very important for parents dealing with these tough situations.]]>On Behalf of Minion & Sherman<![CDATA[How should you treat credit cards after bankruptcy?]]>https://www.minionsherman.com/?p=504932024-01-27T20:02:58Z2024-01-27T20:02:58ZUnderstanding the post-bankruptcy landscape
After successfully navigating the complex process of bankruptcy, it is important to assess the financial terrain. Bankruptcy provides a fresh start, but it also requires a strategic approach to rebuilding credit. Credit cards, often considered both a lifeline and a potential source of problems, play a big role in this recovery process.
Choosing the right credit card
Not all credit cards are equal, and this holds especially true if you have a bankruptcy history. Opting for a secured credit card can be a prudent choice.
These cards require a security deposit but offer a controlled spending limit, minimizing the risk of accumulating unmanageable debt. You may want to select a card with reasonable fees and interest rates to ensure a smooth and cost-effective rebuilding process.
Managing credit responsibly
The key to successful credit card usage post-bankruptcy lies in responsible management. Timely payments are non-negotiable. Set up automatic payments to avoid missing due dates, preventing further damage to your credit score.
Maintaining a low credit utilization ratio demonstrates fiscal responsibility and positively influences creditworthiness. This means keeping balances well below the credit limit.
Building a positive credit history
Credit cards, when used wisely, serve as powerful tools for reconstructing credit history. Consistency is important.
Establish a routine of making on-time payments and gradually increase your credit limit as financial stability improves. Demonstrating responsible credit behavior over time will contribute positively to your credit report, showcasing your commitment to financial recovery.
Remaining cautious of temptations
While credit cards are important to rebuild credit, they also present the temptation to overspend and get that hit of instant gratification. Use these cards for emergencies only. Be mindful of the potential pitfalls of accumulating debt so that you protect the progress made on the path to financial recovery.
Navigating credit cards after bankruptcy requires a thoughtful and strategic approach. With the right mindset, individuals can leverage credit cards as effective tools for rebuilding their financial standing.]]>On Behalf of Minion & Sherman<![CDATA[5 ways to help your children through your divorce]]>https://www.minionsherman.com/?p=504912023-10-30T19:29:57Z2023-10-30T19:29:57Z1. Open and honest communication
Maintaining unwavering and candid communication with your children is important. Be upfront about the divorce in a gentle and age-appropriate manner. Encourage them to ask questions and express their feelings. Reassure them that your love for them remains unwavering, and the divorce is not their fault.
2. Consistency and routine
Amid the upheaval of a divorce, children thrive on consistency and routine. Strive diligently to preserve equilibrium in their daily lives. Keep consistent schedules for meals, bedtime and school activities. This predictability can provide a sense of security during a tumultuous time.
3. Co-parenting cooperation
In the spirit of harmony, collaborate with your ex-spouse to establish consistent rules, expectations and disciplinary measures. Aim to present a united front in your parenting approach, even if you have differences. This consistency can help your children feel secure in both households.
4. Emotional support
Your children may experience a wide range of emotions, such as sadness, anger, confusion, anxiety or even happiness. For example, about 2.7 million children in the United States have a diagnosis of depression, and the prevalence has gone up over time. Divorce can make a child's depression worse.
Be there to offer emotional support and comfort. Let your children know it is okay to feel these emotions and provide outlets for them to express themselves, such as talking to a trusted adult or therapist.
5. Reduced conflict
One of the most damaging things parents can do during a divorce is involve their children in conflicts or disagreements. Avoid speaking negatively about your ex-spouse in front of your children, and refrain from using them as messengers. Shield them from the adult aspects of the divorce and focus on maintaining a positive environment.
Your children's well-being should remain a top priority throughout the divorce. By providing a stable and loving environment, you can help your children adapt and thrive.]]>On Behalf of Minion & Sherman<![CDATA[How Chapter 7 and Chapter 13 bankruptcies differ]]>https://www.minionsherman.com/?p=504902023-07-27T00:45:35Z2023-08-01T00:45:27Zimportant differences between the two types of filings.
Chapter 7 bankruptcies
You have to have limited income and pass a means test proving as much before you may file for Chapter 7. Sometimes called “liquidation” bankruptcies, Chapter 7 filings sometimes involve surrendering certain assets to pay back your debts. A Chapter 7 bankruptcy filing typically impacts your credit score for up to 10 years.
Chapter 13 bankruptcies
If you do not pass the means test needed to qualify for Chapter 7, or if you are fearful about potentially losing your home, you may want to consider filing for Chapter 13. Doing so involves restructuring your debts and coming up with a new payback plan that is more manageable for you. If you stick to the terms of the plan and do not miss mortgage payments, you may typically keep your home when filing for Chapter 13.
Whether filing for bankruptcy is the right move depends on several factors. If there is no reasonable way to pay back your outstanding debts within the next five years, bankruptcy may be well worth considering.]]>On Behalf of Minion & Sherman<![CDATA[Can I get child support for my disabled adult child?]]>https://www.minionsherman.com/?p=502182023-04-29T00:38:16Z2023-04-29T00:38:16ZUnderstanding the law
In New Jersey, child support generally ends when the child turns 19. Support may end sooner if the child dies, marries or enlists in the military. Child support might continue through the child's post-secondary education or until another date specified in the court order, but generally, a child support order can not extend beyond the child's 23rd birthday.
However, New Jersey child support laws allow some exceptions to this rule. A 2020 amendment to the law allows for the continuation of child support or conversion to another form of financial support after the child's 23rd birthday. The court will only allow this in special circumstances, such as a severe mental or physical disability.
Requesting continuation of support
If your child's disability requires him or her to be financially dependent on you, you might be able to continue receiving financial support from your child's other parent after your child turns 23.
Before your child support order ends, both parents will receive a notice in the mail. This notice should include instructions for filing a written request for continuation. Your child can also petition the court for financial maintenance from a parent if he or she is over 23. To qualify, your child's disability must have existed before he or she turned 23.
When caring for a dependent adult, it is important to know your rights and the resources available to you.]]>On Behalf of Minion & Sherman<![CDATA[What happens to my credit card debt during bankruptcy?]]>https://www.minionsherman.com/?p=502172023-02-02T19:17:38Z2023-02-02T19:17:38ZUnited States Courts.
Will bankruptcy discharge my credit card debts?
Most credit card debts are unsecured, meaning that the bankruptcy court will automatically discharge them unless a creditor proves a discharge to be invalid. In the case of Chapter 7 liquidation bankruptcy, the discharge typically occurs within four months of the first creditor meeting. For other types of bankruptcy, such as Chapter 13, credit card debts may undergo discharge immediately after the completion of all payments in their established repayment plan.
Which credit card debts does bankruptcy not discharge?
Debts incurred through the use of a secured credit card may not be eligible for discharge through bankruptcy. You will also continue to be liable for any credit card debts that are the result of fraud or other wrongful actions.
Going through the bankruptcy process means that you may have to significantly alter your lifestyle by way of liquidating many of your nonexempt assets or by adhering to a strict repayment plan. Bankruptcy can be an effective way to get your back on your feet, though, especially when you consider that many of your credit card debts may be eligible for discharge.]]>