Divorce Mediation and Tax Code Changes

There’s an old saying that goes “when the only tool you have is a hammer, the whole world looks like a nail” and that holds true when it comes to divorce.  Unlike using an attorney to handle your divorce who most likely only focuses on the legal ramifications of the proceedings, divorce mediation from Equitable Mediation Services can help you understand all facets surrounding your divorce by offering guidance on topics that while not specifically related to martial law, will impact your settlement.

Take for example the issue of taxation.  As an NJ divorce mediator, it is my job to ensure that you not only get a proper divorce settlement by crafting a Memorandum of Understanding that outlines all the agreements reached during divorce mediation sessions, but also to advise you when a potential issue raised during our mediation sessions may have tax ramifications.  I view it as my role to either offer you information to help you make an informed decision or advise you when such a decision may be too complex to be handled in mediation sessions and guide you to professionals who can assist you.   A common issue we see today is with that of the martial residence which is discussed during the equitable distribution of martial assets and liabilities.  With today’s real estate market, values of homes are down across the board and many couples going through a divorce are choosing not to sell their home as it is “underwater” (that is – worth less than what they owe on it).  So what do they do?  Perhaps an attorney wouldn’t think about this point, but divorce mediators do.

Did you know there are certain guidelines you need to adhere to in order to benefit from the capital gains exemption when you actually do sell you house?  Did you know we can craft agreements that allow one of you to still live in the house post-divorce but allow both of you to benefit financially when you actually do sell the house?  These and other pressing issues of taxation are all in the realm of divorce mediation and something I as your divorce mediator think about when working with you.

You see in addition to staying up on changes in marital law, I also study changes in taxation, child custody issues, trends in Parenting Plans, changes in Equitable Distribution laws, NJ Child Support Guidelines and Spousal Support / Alimony.  All of these things (and many others) that go into your settlement each play a small but critical role in determining the shape of your future and your relationship with your children and ex-spouse for years to come.  I hope you will take a little time to learn more about divorce mediation and the many benefits of mediation and see how it can help you.

As always, if we can be of any assistance, please feel free to contact us and schedule a free, no-obligation consultation in one of our six central NJ office locations or if you’re more comfortable, we can come to your martial home. We know that once you learn more about divorce mediation, you’ll agree it truly is the smarter way to divorce and will be there every step of the way to guide both of you to work to an agreement you both can live with.