Mind of Money

Expert Financial Advice for Men Undergoing Divorce

Gavel on top of moneyDivorce is difficult for both parties. Men, too, deal with anger, depression and turmoil during divorce. One of the biggest worries they have in divorce is the financial issues connected to it, Feldman & Lee PS shares. Sound advice and legal aid on financial issues during divorce are essential.

Don’t take this advice from just any divorce lawyer, though. The best-placed expert to advise you on these issues is a defense lawyer in Kent who has specialized on issues concerning men in a divorce. Here are a few DOs and DON’Ts for men on the financial aspects of divorce.

Explore alternative child support solutions

It is natural to want evidence of how the other parent uses your child support. Unfortunately, statements, invoices and receipts cannot itemize every child care expense.

A hybrid solution is the best approach. This involves paying service providers directly where applicable instead of giving money to your ex. You could, for instance, pay your child’s tuition fee directly to providers. Be sure to document these, however.

Get current financial updates

Talk to your spouse and ensure you know your current financial standing. Ask for full disclosure of financial accounts and records and be ready to disclose your financial information fully.

Get the complete picture of your debts, taxes, credit card accounts and other items of your finances to avoid unpleasant surprises.

Establish individual accounts

To financially prepare yourself for divorce, start setting up separate accounts. These include savings, credit cards, retirement, paychecks, deposits and checking accounts. This is because you will split all assets and accounts held jointly with your spouse equally.

If you already have a will, adjust it after your divorce settlement. This will help you avoid gray areas in future and ensure your loved ones are well taken care of.

Proper financial planning averts future emotional and financial pain.

September 25, 2018 at 5:24 pmMind of Money

Trusts for Minors: Leaving Money and Property to Your Kids

a lawyer consulting a familyMinor’s trusts, trusts for minors, or trusts for children are particular kinds of trusts used for holding and distributing assets to minor kids. These typically dictate the property and money assets that would be held in a trust until the beneficiary is 18 or 21 years old. The settler, the one establishing the trust, might put conditions that should be satisfied for the beneficiary to claim assets in the trust. For instance, the beneficiary could only receive the assets once he or she graduates from college or marries.

Requirements for a Valid Trust for Minors

For a minor’s trust to be considered valid, it should meet basic qualifying requirements for trusts, according to a probate attorney in Denver.

  • The only beneficiary stated in the trust is the minor.
  • All original assets, as well as income generated by the trust, should be transferred to the beneficiary once they’re of the age of majority, which is 18 or 21 years old, depending on state law.
  • The beneficiary is allowed to distribute the assets held in trust if he or she passes away before reaching the age of majority. For example, he or she could state how assets in the trust could be distributed whether in a valid will or another valid, legal document.

Advantages of Setting Up a Trust for Minors

The most important benefit of leaving assets in a trust for your child is the tax exemptions. In general, parents are allowed to gift their children money without tax consequences, but only up to a set amount. This is called the gift tax exemption.

But for you to qualify for this tax exemption, your child should have immediate access and control over your money gift. This means that standard trusts don’t qualify for the gift tax exception because the beneficiaries don’t have immediate access and control over them.

Establishing a minor’s trust for your child is a complicated matter since you need to take into account various considerations because the trust won’t be claimed for many years to come. That said, consult a local attorney for help in drafting a trust for your child to ensure that it’s valid.

September 17, 2018 at 7:11 amMind of Money

How Does the New Subsidy Affect Child Care Providers?

Girl holding a teddy bearThe Australian government has implemented a new subsidy for families in July, replacing the Child Care Rebate and Child Care Benefit with the single Child Care Subsidy.

Under the new system, households with up to $66,958 of combined annual income will be eligible for subsidies equal to 85% of fees. With the new subsidy, better child care management solutions are now more necessary.

Subsidised Rates

Families with a combined annual income worth more than $66,958 and up to $171,958 will be subsidised by a stepped reduction of fees, which will be 50%. Any additional income worth $3,000 reduces the subsidy by 1% in this income bracket.

Those who earn between $251,248 and $341,248 per year could avail a stepped reduction to 20% of charges, while families with a higher income are eligible for 20% subsidies. There will be no subsidies for families with at least $351,248 of annual income or more.

Work Hours

The new subsidy also encourages parents to feel more comfortable about going to work and leaving their child to formal care. However, some parents are relying on their kids’ grandparents for informal child care. In Sydney, this trend manifested through seniors who reduce their time from work to take care of their grandchildren.

Still, the new subsidy provides up to 100 hours of subsidised care per child, depending on the number of hours rendered for work or an approved activity. The approved activities include college education, active job searching and volunteer work. The hourly subsidies are available per fortnight.

Child care providers in the country should have already familiarised themselves with the changes of the new subsidy system. While the cost of care for children has increased, companies should consider consulting with experts on how to maintain the continued relevance of their business.

September 6, 2018 at 7:12 pmMind of Money