Archive for Shawn Weber

Seven Tips to Help Clients Prepare for Mediation

Hello I Am Prepared

Prepare for Mediation

So you have the big mediation date planned.  You hope the mediator will be able to work whatever magic she has so you can move the case to settlement and put the case to bed.  You’ve prepared yourself.  You know the law.  You have your arguments ready.  You’ve done your study of the facts.  But you forgot something crucial.  You forgot to prepare the most important person to your case—the person who actually has decision making power—your client!

Clients who prepare for mediation simply do better.  Client preparation significantly increases the chances of reaching a settlement.  Preparation is an often overlooked component of successful dispute resolution.  Importantly, clients are happier when they can settle outside of court.  So, here are seven tips to prepare your client for mediation.

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your clients for success in mediation.

#1: Make sure the client understands the mediation process.

To prepare your client for mediation, it’s important for them to be clear on what is expected of them in mediation, and what the role of the mediator will be.  Mediation is not court. It is not counseling or therapy.  It’s a negotiation facilitated by a third-party neutral.

The mediator is there to facilitate and to help people bridge their gaps from a neutral perspective. The mediator doesn’t give legal advice and doesn’t get a tie-breaking vote if the clients disagree.

All decisions are up to the parties to mutually agree.  Mediation does not require people to get along. A good mediator will facilitate the conversation and bring balance — even in cases where one party may be a better negotiator than the other.

#2: Educate your client on the relevant law.

It really helps if your client is prepared and armed with information.  This reduces the amount of time the mediator has to spend educating the client.  If they know what their rights are before they come, then they are more able to consider proposals for settlement.

Also, assure them no one will be expected to sign binding agreements without the advice of counsel. This goes a long way toward calming any fears of being “tricked” into an agreement.

#3: Prepare your client to manage emotional responses.

People come to their conflicts with a myriad of emotions.  Most of us, whether we admit are not, make most of our decisions through the lens of our emotions.  This is fine unless the emotions become so intense that we lose our ability to think rationally.  In divorce cases in particular, emotions affect almost all of the clients decisions.  Sometimes parties themselves in the difficult state of fight or flight and are unable to think clearly.  If left unmanaged, a negative emotion can make reaching accord much harder.

Consider mental health professionals to coach the client.

If you are like most attorneys, you have not been trained in psychology.  It’s good practice to know where your limitations are.  Why not involve a mental health professional to act as a divorce coach to prepare clients to prepare themselves emotionally for what might be a challenging meeting.

Help the client come up with strategies to stay calm to help with rational decision making.

Coach your clients on the importance of managing one’s own emotional responses.  It’s good to normalize coping tools such as taking a break or breathing.  If you are going to be there with your client during the mediation, come up with a signal, such as a keyword or a hand gesture, to indicate when a person is loosing it.  That way, when the signal is given, you can take your client outside to calm down.

A good mental health professional can even help the client come up with mindfulness tools to keep them grounded.  You want your client to bring his or her best self so that she or he can negotiate rationally.

#4: Make sure your client realistically understands their best alternative to alternative to a negotiated agreement (BATNA).

It’s common for a client to have unrealistic expectations about how good their case is.  They may believe that their case is a slam dunk and that all they need to do is get in front of a judge so that can explain their case.  Naturally, the judge will see it their way.

But we all know that such is not always the case.  In Roger Fisher and William Ury’s seminal work, Getting to Yes: Negotiating Without Giving In, Fisher and Ury coined the phrase of the “Best Alternative to a Negotiated Agreement”  (BATNA for short). This is basically your client’s best case scenario if they end up in front of a judge.   A strong BATNA can empower decision making.

A client with an overoptimistic BATNA will make choices that put them at risk.  If they have a more realistic BATNA, it’s an important tool in negotiating a mediated agreement.  If a proposal is superior to your BATNA, then should take it.  Having a proposal that is worse than your BATNA will result in a person being less like to accept a proposal.

Be careful, however, that you as the professional also have a realistic BATNA.  I can’t tell you how often I have seen attorneys poorly advise their client because of an unrealistic BATNA.  They then go to court and sometimes get an unpleasant surprise.  So make sure you are thinking things all the way through yourself!

#5: Make sure your client realistically understands their worst alternative to a negotiated agreement (WATNA).

Fisher and Ury also teach us the phrase “Worst Alternative to a Negotiated Agreement” (WATNA for short).  Basically, the WATNA is the worst case scenario if your client ends up in court.  Sometimes a proposal is worth taking simply because it could be so much worse.  It’s a strategy of minimizing risk.

If your client is unrealistic about the worst case scenario and therefore has an uninformed WATNA, that can be very dangerous.  Your client may walk away from a deal that minimizes risk because he or she doesn’t understand how bad it can be.  Just like with the BATNA, make sure you are being realistic too.

I’ve seen a lot of attorneys advise their client not to accept a reasonable proposal only to go to court and do worse.  Client’s don’t love it when that happens- especially if they acted on your advice.  So, make sure you’ve got the BATNA right and be ready to move your BATNA or your WATNA once you get into the negotiation and learn new information.

#6: Get the client away from a fixation on things being “fair.”

Fair is the “F” word. Instead, focus on making a “good business decision.”

In negotiations, “fair” is largely meaningless.  What one person may define as fair may be worlds apart from what the other party defines as fair.  I find it best not to got there.  Fair is the “F” word in my conference room.

Rather, I coach my clients to leave “fair” behind and stretch for a good business decision.  If everybody is giving something up and a little disappointed, that means we are compromising… and that is GOOD.

Help your clients look for an agreement they can live with rather than an agreement that will conform to a mythical understanding of fairness.  Sometimes, the deal won’t ever be perfect.  But if you want your client to stay out of court, it may just have to be good enough.

See also: Why “Fair” is the F-Word in Divorce Negotiations

#7: Teach your client how to make realistic proposals.

He or she isn’t negotiating to get a bargain on a used car. It is a waste of time to offer terms pushing the extremes with the sole intention of pushing the other party to come closer a desired result. It is the road to frustration, mediation breakdowns, and a date in court in front of a judge.

See also: Tips on Making and Receiving Proposals

Download our free tip sheet to
make sure you have prepared
your clients for success in mediation.

Ways to Avoid Mediation Mistakes Too Many Lawyers Make

Early intervention: Why mediation early in a family law case can save a fortune in fees and stress.

Neutral Private Settlement Conference

Back To School Shouldn’t Be A Battle in Divorced Families

Can you believe it's back to school time already? Divorced parents need to make some specific preparations for a successful school year. Photo Wokandpix/Creative Commons License

Can you believe it’s back to school time already? Divorced parents need to make some specific preparations for a successful school year. Photo Wokandpix/Creative Commons License

Can you believe it’s already time for 60 million American kids to go back to school? Didn’t we just start summer?

Mixed feelings are natural at this time of year for everyone. Kids are sad about summer being over so quickly. But they are likely to be excited and happy to see friends and get involved in favorite activities like athletics, music, or robotics.

But if you are a divorced parent navigating co-parenting, back to school is a little more complicated. Who pays for what? What activities will the child get to be involved in? Who does the school call if there is a problem? Who gets to chaperone the field trip?  What school will your child will attend, near Dad’s house or Mom’s house?

The phone starts ringing at Weber Dispute Resolution at this time of year. Parents having trouble solving these issues come to us for help mediating their conflicts. We are glad they do, instead of taking their problems to court. If you need the same help for yourself or your clients, we hope to hear from you.

We offer these tips to help you start working through problems and considering your options.

Get on the same page about routines.

Get on the same page about school routines. Photo: Luci/Creative Commons License

Don’t make school any more complicated than necessary. Kids do better if you and your co-parent agree on routines, and so will you. Meet before school starts without the kids in a neutral location to discuss the routine details first. Some areas for discussion:

  • Emergency contacts and emergency procedures
  • Instructions about academics and schoolwork
  • Disciplinary issues
  • Transportation and pick-up
  • After-school activities

Once you agree, write it all down and share the plan with your children.

Deal with school expenses up front.

Custodial parents usually find themselves paying up front for back-to-school wardrobes and school supplies and then ask for half of the expenses. But even when parents agree to split the cost, sometimes one parent has very different ideas about how much to spend on things like clothes. Set a budget up front you can both live with. Keep copies of the receipts so you have a record of what you’re owed.

Share school supplies information.

You may be the parent in charge of school shopping, but your ex might want to be involved. It’s not uncommon for a divorced dad to take his child out and buy a hot pair of sneakers, backpack, or electronic device. Make sure you have talked in advance about whether Jim or Jane gets a cellphone or iPod. Purchases like this on a whim rarely end up without an argument and upset parents and kids.

Figure out what extra-curricular activities will be added – and paid for.

Are your kids into sports? Drama? Robotics? After school activities take time and money. Be sure you agree which parent is contributing both. Photo: KeithJJ/Creative Commons

Outside of the classroom, many kids want to participate in sports, music, drama, debate, student government, robotics or other science competitions. These activities can build valuable skills and develop passions your kids may follow into careers. But they also put a strain on your schedule and your budget. When time and money aren’t unlimited, you and your co-parent have to decide up front what’s realistic for your child and what’s not. Who is going to provide the transportation, and pay the fees?   

Coordinate everyone’s calendars.

There are going to be lots of events when school starts: sports and music practices, meets, science fairs, concerts, etc. And you think your workday is busy! Coordinate the school calendar with your parenting schedule. You want to make sure your child is able to attend important events. Have calendars in each house, one in your child’s backpack and give one to teachers or coaches to show which parent he will be with.

Negotiate attendance at school events.

Agree in advance to be courteous to one another at school events so you can attend at the same time. You can suck it up for the hour it takes every few months. If this is really, truly not possible, arrange to attend on different nights or at different times.

Meet the new teacher.

Meet your child’s teacher and stay in communication. Photo: Kevin Lopez/Creative Commons License

Divorced or not, it is always good to meet with your child’s new teacher. Let her or him know your child comes from a divorced home or a shared custody home. Children of divorce and separation often act out at school, have emotional moments, or just a bad day. Your child’s teacher should know what’s going on. But keep teachers and school personnel out of any conflicts between you and your former spouse.

Share information about your child’s education and progress.

Don’t play games or create obstacles for the noncustodial parent to get information. Unless you have a protective order, give permission to the children’s teachers, counselors, and medical professionals to share school information with both parents.

Arrange for duplicate notifications.

Information should be shared with both parents. It can be useful to arrange for separate, duplicate notifications about academic progress and school activities so one parent is not responsible for copying and sending information to the other, including anything like schoolwork or forms your child brings home; Do NOT make your child the responsible party.

A written record can help keep legal issues straight and problems from escalating. If you have a contentious relationship with your co-parent, why fan the flames at all? Arrange up front for a neutral third party like a mediator to be the point of mutual contact between you to ensure civility and cooperation.

Remember who school is for. It’s not a battleground to establish who is the better parent.

Remember, school is for your kids – not a battleground for you and your ex. Photo: Ernesto Silva/Creative Commons License

It’s great for you to be involved with your children, but don’t get into a competition with your former spouse. Your child is still dealing with your divorce no matter how long ago it happened while juggling the demands of school. Let school be your kid’s refuge, a place for him or her to have fun, learn, achieve and excel, and forget about difficult family issues.

No matter what, you can’t go wrong making a decision if you stop and ask yourself this: what’s in the best interest of my child? You get an A-plus.

READ MORE: Is Your Child College Bound? Who’s Paying For It?

 

Tips on Making and Receiving Proposals

If your family law case is at a crossroads, consider mediation to take it from conflict to quick conclusion. Photo: Geralt/Pixabay proposals

If your family law case is at a crossroads, consider mediation to take it from conflict to quick conclusion. Photo: Geralt/Pixabay

At times during your family law or divorce case, you will have the opportunity to make and receive proposals. Whether large or small, proposals are the backbone of negotiation.

A proposal is defined as a plan or suggestion, especially a formal or written one, put forward for consideration or discussion by others. During your negotiation, you will need to look at many different options and ideas for how to settle issues in your case. Proposals, even imperfect ones, serve an important role in moving the negotiation process forward.

If you are the party making a proposal, keep the following goals in mind:

Make It Specific. The proposal should be specific in its scope. A proposal is specific if it can answer the questions of “who, what, where, when and how.” Including as much detail as possible helps reduce ambiguity.

Less specific: “The children will be with Mother on every Tuesday.” Is less specific.

More specific: “Mother will pick up the children from Father’s house every Tuesday at 3 pm and will return the children to Father’s house on Wednesday at 3 pm.”

Specificity reduces miscommunication and misunderstandings.

Make It Realistic. The proposal should be realistic. Don’t make a proposal you know the other party won’t or can’t accept. You want to make proposals with a chance of being accepted.

Make It Possible. Be sure your proposal is something possible to do in the real world you live in. A proposal physically, intellectually, or emotionally impossible to perform really is a non-starter.

Based on Rational Evaluation. Especially in family law, it’s tempting to make a proposal based purely on emotional needs without rational evaluation. While your emotions are important, it is important your decisions are based on a rational evaluation of the facts.

Steps For Reviewing and Responding To A Proposal

If you are the party receiving a proposal, you should take the following steps:

Ask Questions. Make sure you understand the proposal before reacting. This is your opportunity to ask any clarifying questions before you decide whether or not to accept. If there is specific information you need before you can decide on the proposal, please be specific in letting your mediation team know what information you still need. It’s not helpful to simply accept or reject a proposal you may not understand. Take the time you need to be sure.

Respond. After you are sure you understand the proposal, there are three ways to respond:

  1. “I accept the proposal.” If you agree with the proposal, you accept and everyone moves forward to memorialize your agreement.
  2. “I do not accept your proposal, but here is my counterproposal.” If you do not accept the proposal, it becomes your responsibility to provide a counterproposal. If you would like to brainstorm ideas for a counterproposal, let your mediator help.
  3. “I need to think about it.” If you are not prepared to make a decision yet, that is perfectly understandable. You need not be rushed into a decision. You are encouraged to confer with counsel before agreeing to anything. If you need some time to consider the proposal, please provide your best estimate for your response whether you accept or offer a counterproposal.

Failure is Not An Option

You may notice “rejection” is NOT on the list. A blanket rejection without a counterproposal will simply halt negotiations. If a person rejects a proposal, that person has a responsibility to make a counterproposal.

Remember, there is no such thing as impasse in mediation! When you are stuck, it doesn’t mean you storm away from the table and declare a failure. It just means you and your mediation team haven’t found the right proposal yet.

But we will! Keep at it and be persistent and creative. You’ll get there. You might be surprised where you ultimately land if you keep an open mind to the possibilities.

Download our helpful “Summary for Accepting and Receiving Proposals”.

For further reading on proposals, see:

So, What’s Your Proposal?: Shifting High-Conflict People from Blaming to Problem-Solving in 30 Seconds! by Bill Eddy, JD, LCSW

Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William Ury

 

New Case – Watch out if asking question in a deposition about a custody evaluation

New Appellate Case: Anke v. Yeager

There is a new appellate which came down from the Second Appellate District of the California Court of Appeal on February 4, 2019.  The case is Anka v. Yeager and can be found here https://law.justia.com/cases/california/court-of-appeal/2019/b281760.html.

You know it’s going to go badly for the attorney in the case when you read this in the opening paragraphs quoting the oath of admission required to practice law described in California Rules of Court, rule 9.7:

“These cautions are designed to remind counsel that when in the heat of a contentious trial, counsel’s zeal to protect and advance the interest of the client must be tempered by the professional and ethical constraints the legal profession demands. Unfortunately, that did not happen here.”  [Emphasis added.]

Yikes!

Sanctions for revealing the contents of a custody evaluation in deposition questions

In Anka v. Yeager, an attorney asked a question during a deposition as part of a child custody dispute about the contents of a custody evaluation.  The displeased trial court ordered $50,000 in sanctions against the attorney and party under Family Code sections 3025.5 and 3111.  The trial court found that the attorney’s asking questions about the custody evaluation in the presence of the court reporter and videographer at the deposition constituted an unjustified, malicious and reckless disclosure of the contents of the custody evaluation.

When the sanctioned attorney appealed.  She argued that the court reporter and videographer were “officers of the court” and were, therefore, exempt under 3025.5.  However, the appellate court held the court reporter and videographer were not employees of the court and were therefore not exempt.  The trial court did not abuse its discretion by imposing the sanctions on the attorney.  The attorney by asking deposition questions referencing the custody evaluation disclosed highly personal information about the child and family.  Moreover, disclosure in the form of questions in the presence of a court reporter was malicious and reckless.  The court affirmed the sanction of $50,000 against the attorney but reversed the sanction against the attorney’s client.

Be careful about asking questions in a deposition about a custody evaluation!

So, what is the lesson here? In a custody cases, do not ask questions about the custody evaluation in a deposition without court clearance.  If you screw this up, you may be paying a lot of money in sanctions and could even face discipline.

Big Change Coming in California Mediation Law in 2019 You Need to Know About

New Form Required by California Evidence Code § 1129

A SMART Agreement for Holiday Co-Parenting

SMART parenting agreements can ensure happy holidays even when you’re divorced.

At Weber Dispute Resolution, we believe in crafting SMART agreements.  SMART stands for Specific, Measurable, Attainable, Relevant and Time-Bound. SMART agreements help with enforcement, and make it clear to both parties what is required for them to stay within the boundaries of their agreement.

Here’s why a SMART agreement makes things so much easier:

  • When an agreement isn’t SPECIFIC, parties become confused over exactly what they agreed on
  • Unless performance can be MEASURED in some way, it is difficult to determine where the boundaries are, and when they’ve been broken.
  • Any agreement must be ATTAINABLE – something you can easily comply with. People can’t be expected to do the impossible – it’s setting them up to fail.
  • Agreements require RELEVANCE to make sense in any particular circumstance.
  • Finally, linking the provisions to TIME-BOUND deadlines lets people know when things should happen.

So, unless your agreement is a SMART agreement, there is a good chance you will be facing problems down the road.

This is especially true when we are talking about holiday co-parenting.  People can become emotional during the holiday season. It’s understandable and predictable. Holidays are all about family.  Not having your children with you and with your extended family during the holidays can be hard to cope with.

Because people are so emotional about the holidays, parenting decisions about holiday traditions and practices can become a significant source of conflict.  When I used to litigate family law cases in courtrooms, unfortunately for my clients, they paid me a good amount of money to sort out holiday schedules and last-minute misunderstandings.

With a SMART holiday co-parenting agreement, you can avoid big emotional blowouts AND writing big checks to lawyers. Here’s how.

SMART – Specific

When crafting holiday orders and agreements, make sure you are very specific about what the schedule is.  Just saying that the

Put your mediated agreement in writing if you intend it to be legally binding. Photo: Antonio Litterio/Wikimedia

SMART agreements are specific. Photo: Antonio Litterio/Wikimedia

kids are with mom on Christmas in even-numbered years and Dad in odd-numbered years is a start.  But it is not very specific.  Get into the weeds about when exactly Christmas starts and ends.  Where will the kids be delivered or picked-up.  I have even seen people get specific about whether a joint present opening time would happen and how it would go.  The more specific your agreement is, the less likely there will be misunderstandings.

Another example is with New Year’s Eve and Day.  When talking about New Year’s Eve and Day and odd years versus even years, which year counts for odd or even?  Is it New Years Eve, which falls in one year, or New Years Day, which falls in the following year?  This kind of lack of specificity can lead to confusion.

A colleague of mine recalled a poll on a local list serve account for family law attorneys.  She learned that when confronted with the question of which day, New Year’s Eve or New Year’s Day, counts for purposes of even and odd, roughly half of the respondents thought it was New Years Eve while the other half thought it was New Years Day.  Get clear, and you can avoid trouble.

SMART agreements are timebound.

 

SMART – Measurable and Time-Bound

When talking about parenting schedules, measurable and time-bound tend to go together. It’s good practice to have a clear start and end time when describing holiday periods. A common provision is  “The child shall spend Father’s Day with the father every year.” This is too vague.

Much better and a more effective provision: “The child shall be with father on Father’s Day every year from 8 a.m. the morning of the holiday until 8 a.m. the day after the holiday.”

SMART – Attainable

It seems like a no brainer an agreement or order should be attainable. But sometimes, people don’t realize a provision is unattainable. In a recent case, the court order described as written the children would be with Mom on Christmas Day at 10:00 a.m. and returned to Dad at 10:00 a.m. the next morning. However, the parties lived more than 3,000 miles apart! These parents could not possibly make this work from any practical standpoint.

In another case, the children were to alternate between mom’s house and dad’s house during the holidays for overnight visits in an even and odd patterned schedule. The problem? One of the parents was incarcerated.

So it’s important to avoid these kinds of attainability problems by making sure the agreement’s boilerplate language is customized to you and written to fit your unique circumstances.

SMART – Relevant

SMART agreements must be relevant to your circumstances.

Holiday co-parenting orders should be relevant to your situation. In one of my cases, Family Court Services made Christmas co-parenting recommendations. The parties only celebrated Jewish holidays. Clearly, something lost in translation was missed.

As practitioners, it’s tempting to fit people neatly into nice little boxes. But it makes little sense to force parents to observe a holiday schedule for holidays the parties don’t even celebrate. In another case, attorneys included a provision for Fourth of July. The parties didn’t celebrate Fourth of July and weren’t concerned about having the kids on Fourth of July.

The SMART Approach to Happy Holidays When You’re Divorced

 Filling a holiday co-parenting agreement with irrelevant provisions does nothing but confuse things, and clutter up your case with unhelpful rules. To say nothing of having an agreement that falls into the “TL; DR” category (that’s Tool Long, Didn’t Read).

Your agreement should be meaningful, with SMART rules that make sense for you and your family alone. Work with someone who will listen to your needs and get you know you, your co-parent, and your kids, and create something that fits. You won’t be fighting against it and arguing about it, which doesn’t help anyone.

Want to clean up your holiday co-parenting schedule BEFORE the holidays get here? Would you like to avoid those frantic last minute calls to a lawyer to fix your holiday parenting schedule? Contact Weber Dispute Resolution now, and you can have truly happy holidays without a care. Isn’t that the holiday gift all families wish for?

 

 

 

Why Waiting Can Cost You: Racing the Clock to Keep Your Alimony Tax Deduction

The deadline to preserve your alimony tax deduction in California before the end of 2018 is fast approaching.

by Mark Hill, CFP, CDFA and Shawn Weber, CLS-F

With the passage of the Tax Cuts and Jobs Act of 2017 (TCJA), the deductibility of alimony or spousal support on federal taxes is set to sunset on December 31, 2018. If you plan to divorce or are in the process of a divorce that will not be completed before the end of 2018, this could cost you a lot of money.

Spousal support used to be deductible under previous law

Under the previous law, spousal support (or alimony) is deductible from income for the support payor and taxable to the support recipient.  This let parties save money on Uncle Sam’s dime. Typically, the support payor would be taxed at a higher rate than the support recipient because of the disparity of income. By transferring the tax burden from the support payor to the support recipient, the support payor had higher net spendable income and could afford to pay more. This usually ended up in a win-win circumstance for the parties.

Changes to spousal support deductions under the new 2019 law

Commencing on January 1, 2019, spousal support paid under new orders will not be deductible to the support payor and will not be taxable to the support recipient. This rule will apply to alimony payments required by “divorce or separation instruments” executed after December 31, 2018.

A “divorce or separation instrument” as defined by 26 U.S. Code § 71(b)(2) “means –

(A) a decree of divorce or separate maintenance or a written instrument incident to such a decree,

(B) a written separation agreement, or

(C) a decree (not described in subparagraph (A)) requiring a spouse to make payments for the support or maintenance of the other spouse.”

Example from a higher income case

In negotiations husband and wife had agreed that spousaI support would be set at $12,000 a month. Because husband will be in the combined 46.3% tax bracket post-divorce, the after-tax cost to him will be $6,444. However because wife will be in the combined 34.3% bracket she will net $7,884 after tax.  When the new law is in force and husband can no longer deduct his payment it would cost him $1440 more to get her the same amount of spendable money. The differential will be even greater if wife goes ahead with her plan to buy a condo next year and thus receive the deductions for mortgage interest and property taxes.

Of course the reality of divorce is that there is rarely enough money to go around and the result of this change is going to be that payors will end up paying more and payees will end up receiving less.

An additional impact of this change that we believe is not well understood is that because in California the software that calculates child support uses after-tax income as the input number used for income available for support, child support numbers will also be reduced.

Is your divorce grandfathered into the new 2019 rule? Maybe not!

However, a divorce or separation instruments in place before January 1, 2019, but modified after this date, will remain under the current rules allowing for deductibility.  They would only be subject to the TCJA, if the modification expressly provides for the TCJA to apply.

What does this mean for people in the midst of a divorce today?  To preserve the possibility of the alimony payment tax deduction, you MUST have a divorce instrument entered by a court before the end of 2018.

Your judgment MUST be entered in 2018 to be deductible.

Although it is unclear exactly how the IRS will interpret this rule, we believe it is crucial that the divorce instrument be entered before the end of the year to preserve deductibility forever (or at least until the rule is changed again).

A huge concern is that the courts are very much behind in the processing of judgments of divorce or legal separation.  Time is of the essence.  If a couple does not have a completed judgment to submit prior to middle of November 2018, there is a very strong likelihood that it will not be accepted by the court in time.  Thus, the parties would lose the benefit of deductibility because there divorce or separation instrument would not be enterd before 2019.

Let Weber Dispute Resolution and Pacific Divorce Management help you keep your alimony tax deduction into 2019,

To help parties maximize what they have to spend for themselves and their kids after divorce, Weber Dispute Resolution is teaming up with Pacific Divorce Management to offer an expedited to process.

Pacific Divorce Management, one of the premier advising firms in San Diego for financial issues in divorce, will work with parties to gather financial data to complete the State mandated Declaration of Disclosure Forms.

Weber Dispute Resolution, a leader in divorce mediation and legal dispute resolution, will prepare the necessary forms to open a divorce case and will work hand in glove with Pacific Divorce Management to prepare the necessary divorce or separation instrument necessary to satisfy the IRS requirements for deductibility.

If it is impossible to conclude the entire divorce prior to 2019, the parties could enter into a partial stipulated Judgment for spousal support that would meet the requirements for the alimony deduction.  The couple would then have the following options:

  1. Work with Pacific Divorce Management and Weber Dispute Resolution in an out-of-court alternative dispute resolution setting to complete their divorce or legal separation (for example, mediation or collaborative practice).
  2. Work with other professionals in an out-of-court alternative dispute resolution setting to complete their case.
  3. Litigate their divorce or legal separation with other professionals.

Whether you choose to complete your divorce with us or choose to go another way, we want to help all parties involved in a late 2018 divorce be aware of this change, and take advantage of the tax laws for deductibility of spousal support payments before it goes away forever.

Don’t delay – contact us today to save your alimony tax deduction:

Weber Dispute Resolution: 858-410-0144

Pacific Divorce Management: 858-509-2330