DIVORCE RATE MAY NOT BE DECLINING AS MUCH AS EXPECTED

On behalf of Askvig & Johnson, PLLP

It has been the consensus among population experts that the divorce rate has been decreasing or stagnant in recent years. New research findings show that this may not actually be the case.

The past reports used US Census data and some other federal sources of information to conclude that, after a peak in the 1970s, the divorce rate has been on a steady decline. However, two demographers from the University of Minnesota are questioning this finding. Their report concludes that the rate of divorce in the United States has actually been on a steady increase over the past 30 years.

There have always been known problems in the data used to calculate divorce rates. The main problem is a flaw in the way that data has been collected which has led to a distorted divorce rate calculation.

In 2008, the US Census Bureau added questions about divorce to the American Community Survey. Along with this information, the demographers have used data that considers divorce patterns among different age groups. They determined that, although divorce rates are on the decline for young couples up to the age of 25, the rate of divorce has not been declining as rapidly for those couples over 35. This means that even couples that are well into their 60s are divorcing at a much higher rate than they have in the past.

After looking at this data from an age perspective, the demographers concluded that the rapidly increasing rate of divorce in older couples has actually caused the overall divorce rate among Americans to increase significantly since 1990; it is now at an all-time high.

If a couple was married a long time a divorce can become much more complicated. These couples often have more shared assets and there is a higher likelihood that children will be involved. This does not mean that a couple should not get divorced if their marriage isn't working. It does mean that they would likely benefit from the help of an experienced family law attorney who can help them work through this emotional time as quickly and efficiently as possible.

Source: Huffington Post, "Is the US Divorce Rate Going Up Rather Than Going Down?," Robert Hughes, Jr., Mar. 6, 2014

HOW CHILD SUPPORT AND ALIMONY IMPACT FEDERAL AND MN TAX RETURNS

On behalf of Askvig & Johnson, PLLP 

Many St. Paul residents who have undergone a significant change in 2011--such as a divorce--are likely beginning to find out some of the resulting tax implications.

A change in your legal relationship status can have several effects on your federal and state tax returns. Two of the major issues are whether you should file separately or with your ex-spouse, and how child support or alimony should be reported as income and deductions.

The first item is highly personal. Whether you should file jointly, as a single or as a married couple filing separately depends on where you are in your divorce proceedings and your own financial portfolio. This is a matter best decided with your personal finances in mind, and the guidance of your family law counsel and/or accountant.

The latter is simpler. Alimony is reported on the federal 1040 form as income for the recipient and as a deduction for the payer. However, there are many qualifications that spousal support must meet in order to be considered as alimony by the IRS. To include alimony on your tax return: you must be divorced or under a separation order; you must not be living with your ex while payments are being made, unless a court order says otherwise; you cannot claim alimony if you are filing a joint tax return with your ex; and you must have a legal agreement requiring the payment of spousal support, among other things. And, payments that could be considered as child support will not qualify as alimony to the IRS.

Child support is neutral for tax purposes. This means that it is neither to be claimed as income for the recipient nor as a deduction for the payer. It is also important to note that if any child support is past due, the IRS will then count alimony payments as child support for tax purposes. This means that the payer may lose the deduction.

Many Minnesota laws as well as federal Tax Code complexities can, of course, affect one's federal and state tax status. It is thus important to seek personal counsel about your unique tax issues.

Source: Forbes, "Taxes From A to Z: A Is For Alimony," Kelly Phillips Erb, March 3, 2012

ARE CHILD SUPPORT PAYMENTS FORCED FATHERHOOD?

On behalf of Askvig & Johnson, PLLP 

Many of the previous postings in this blog have discussed the issues that come up between married couples that decide they no longer wish to be married to each other. One of the issues that can become very emotionally charged and heated when children are involved is child support. However, child support is not only an issue for divorcing couples. Child support payments may become an issue for a couple with children, married or not.

Some have argued that making the father of a child make monthly payments for child support, even when they don't want to be actively involved in the child's life, is like forcing them into fatherhood. Those same individuals that make these arguments also often argue that men who accidentally get a woman pregnant have fewer rights than the mother-to-be. But is it fair to do away with mandatory child support payments therefore making child support optional?

On the other side of the argument, those in disagreement would state that making child support optional assumes that adoption and abortion are readily available and affordable for every individual that finds themselves dealing with an unwanted pregnancy. In reality, this is not the case. This side of the argument also states that it is false to equate child support payments with fatherhood. A man can opt out of fatherhood but still owes it to his child to make support payments to support the child's well being.

This issue is constantly up for debate, but in Minnesota parents are currently able to seek child support payments from the other parent of their child. The amount of these payments is determined by the child support formula. However, if couples are experiencing disagreements regarding child support payments it is always helpful to seek the assistance and guidance of an experienced family law attorney. An attorney will be well-versed in the laws regarding child support and help the parents resolve the issue as quickly as possible so that the child receives the support that they deserve.

Source: Salon, "No, child support can't be a choice," Carolyn Edgar, Nov. 7, 2013

HOW MINNESOTA DIVORCE PROCEEDINGS AFFECT MILITARY BENEFITS

On behalf of Askvig & Johnson, PLLP 

Divorce rates are consistently higher for military couples than for civilian couples, for one reason or another. Currently, the military divorce rate is about 3.7 percent, up from 2.6 percent 10 years ago. When we speak of military couples, we mean that either the husband or the wife is in the military, not necessarily both.

Military divorces involve a variety of difficult details that civilian divorces do not include. For this reason, it is important to work with Minnesota family law professionals who are experienced in military divorce. Complicated state and federal laws intersect in military divorces, making the process very difficult to navigate alone.

One issue that is unique to military divorces is that of the division of a military pension. Military pensions frequently value at more than $1 million, although they are not paid in lump sums. What else makes military pensions valuable is that there is no minimum wage for retirement.

The division of the military pension is guided by the Uniformed Services Former Spouses Protection Act, which gives the state courts jurisdiction to divide the pension as marital property for settlement purposes. In some states, this may entitle the former spouse to half, but in others this is not so. 

If the marriage lasted 10 years or more during the time of military service, the government may forward the awarded pension benefit to the ex-spouse. But, if the marriage did not coincide with the military service for at least 10 years, it is up to the former spouse to secure any benefits on his or her own. The military ex-spouse may voluntarily send the pension benefit, but if not the ex-spouse may need to go to court--in the state in which the military spouse resides.

Very simple mistakes can cause military benefits to be delayed or even denied after a divorce. For example, if one certain form is not filed within one year of divorce, the former spouse will not have access to the benefits after the military spouse dies. This can be remedied, but missed payments cannot be recouped.

Because of these and other risks, it is important for military couples to seek professional and experienced legal counsel for their divorce case.

Source: The Wall Street Journal, "Divorce: Splitting Up a Rich Military Pension," Ellen Schultz, March 9, 2012