Most family law matters are resolved by agreement or through the court system. However, there are also alternative options, referred to as alternative dispute resolution, to settlement or court. Arbitration is one such option. If the parties agree to arbitrate their case, or a part of their case, they retain an arbitrator who they pay to hear and decide their case. The parties will still reach retain their own attorneys as the arbitrator acts as the decision maker and does not provide the parties with legal advice and guidance. The arbitrator is often an experienced family law attorney.
The parties’ sign an agreement with the arbitrator and through this agree that they will be bound by the arbitrator’s decision. The parties can determine if the arbitrator will decide all aspects of their case (such as equitable distribution, alimony and attorney’s fees) or more limited (such as division of personal property). The arbitrator is often involved in preliminary matters such as setting deadlines for discovery and a timeline for the arbitration process. Prior to the arbitration the parties, through their attorneys, provided detailed briefs to the arbitrator along with all of the documents that they want the arbitrator to consider. The arbitrator reviews everything in advance of the arbitration. At the arbitration the arbitrator has the opportunity to ask questions of the attorneys, parties and experts (if any) so that the arbitrator has all information to make a decision. The arbitrator, following the conclusion of the arbitration, issues a written decision which is often then entered by stipulation as an order of court.
Alimony is support payments made from one spouse to the other spouse after the entry of the Divorce Decree. If an award of alimony is to be entered, it must be entered prior to the Divorce Decree being signed by the Judge. Therefore, one party usually raises a claim for alimony when they file or answer the Divorce Complaint.
In determining if an award of alimony is appropriate, as well as the length of the award and the monthly amount, the court considers a list of factors which are in the Divorce Code. The factors are as follows:
• The relative earnings and earning capacities of the parties.
• The ages and the physical, mental and emotional conditions of the parties.
• The sources of income of both parties, including, but not limited to, medical, retirement, insurance or other benefits.
• The expectancies and inheritances of the parties.
• The duration of the marriage.
• The contribution by one party to the education, training or increased earning power of the other party.
• The extent to which the earning power, expenses or financial obligations of a party will be affected by reason of serving as the custodian of a minor child.
• The standard of living of the parties established during the marriage.
• The relative education of the parties and the time necessary to acquire sufficient education or training to enable the party seeking alimony to find appropriate employment.
• The relative assets and liabilities of the parties.
• The property brought to the marriage by either party.
• The contribution of a spouse as homemaker.
• The marital misconduct of either of the parties during the marriage. The marital misconduct of either of the parties from the date of final separation shall not be considered by the court in its determinations relative to alimony, except that the court shall consider the abuse of one party by the other party.
• Whether the party seeking alimony lacks sufficient property, including, but not limited to, property distributed under Chapter 35 (relating to property rights), to provide for the party's reasonable needs.
• Whether the party seeking alimony is incapable of self-support through appropriate employment.
While the court must consider all factors, it can weigh each factor differently. Alimony is intended as a secondary remedy if, in the court’s opinion, an equitable resolution cannot be reached through equitable distribution alone. If alimony is awarded, the court will determine how many years the alimony will be paid and the monthly alimony amount. Alimony is taxable to the recipient and tax deductible to the payor. This is because alimony is treated as an income stream to the recipient.
Jessica Pritchard & Lisa Gaier at the CBCC Red Ball Gala.
Jessica Pritchard and her husband, Mark, enjoyed a lovely evening at the CB Chamber of Commerce Red Ball Gala.
Ending a marriage is one of the most difficult things a person will experience. Decisions made during the divorce process can have long ranging consequences both emotionally and financially. Several complex issues must be evaluated and resolved, including child custody, support, and equitable distribution of marital property. It is important to remember that equitable does not mean equal and that is why it is important to consult a family law attorney before making any decisions. Our family law attorneys have the knowledge, understanding, and litigation experience to help you achieve the best possible outcome based upon the specific facts of your case. Many times this means amicably resolving the marital issues through a Marital Settlement Agreement. The Marital Settlement Agreement must address all potential issues that could arise as a result of the divorce process. For example, it should include specific details on the equitable distribution of marital property, such as distribution amounts from retirement accounts or whether one spouse will keep the marital home. Other issues that may be resolved using a Marital Settlement Agreement include alimony, attorney’s fees, costs and expenses, and how to handle marital liabilities such as car loans and credit card debt. A Marital Settlement Agreement can help avoid the expense of divorce litigation and our family law attorneys routinely negotiate “real-world” and equitable settlements. However, if litigation cannot be avoided, you can be assured that we are strong advocates who will work vigorously to protect your interests.
Patty Collins, a Partner with Antheil, Maslow & MacMinn, will be joined by Cindy Bergvall, CPA, of Bee, Bergvall & Co. for a panel discussion on new Department of Labor overtime regulations and their impact on employers. This informative breakfast seminar is hosted by The Catalyst Center for Nonprofit Management on October 7th at Aldie Mansion in Doylestown. There is no charge for this event, but registration is required.
These new regulations will require action from almost every for-profit and not-for-profit organization with employees earning less than $47, 476 per year. Participants will learn about the changes in the law and what organizations will need to do when the law goes into effect on December 1, 2016.
Sunday September 11th was our 6th annual Client Appreciation BBQ. It was a beautiful day in Doylestown, and many of our clients and friends enjoyed a fresh grilled lunch and a front row seat to the Thompson Bucks County Classic bike race.
Pennsylvania Sales Tax Now Applies to Support, Maintenance and Updates of Canned Computer Software
Written by Joanne Murray
The Pennsylvania legislature recently enacted changes to the state sales tax code that affect computer software providers and their customers. These changes went into effect on August 1, 2016.
Under the Pennsylvania Tax Reform Code of 1971, a tax is imposed on the sale of “tangible personal property”, which is defined generally as “corporeal personal property” along with a non-exclusive list of various types of property. In 2010, the Pennsylvania Supreme Court held that the term “tangible personal property" includes canned computer software and that the licensing of such software is subject to the tax. In so holding, the Court rejected the argument made by the taxpayer (Philadelphia-based law firm Dechert LLP) that canned computer software consists of intangible intellectual property rights that are not subject to the tax. The Court noted, however, that fees paid by Dechert for software maintenance and support services did not represent the payment for the transfer of tangible personal property and were likely not taxable (though for whatever reason Dechert did not make the distinction and so it was not part of the Court’s holding).
The Pennsylvania General Assembly apparently disagreed with the Court’s categorization of maintenance and support. While the amendment in question was ostensibly intended to just capture digital downloads of property already subject to the tax (e.g., games, apps, video streaming, canned software, etc.), the language adopted by the legislature arguably broadens the scope of the tax. The definition of “tangible personal property” was modified to include video, books, apps, music, games, canned software, and other items “whether electronically or digitally delivered, streamed or accessed, whether purchased singly, by subscription or in any other manner, including maintenance, updates and support”. The highlighted language contradicts the Supreme Court’s commentary in Dechert that software maintenance and support, as services, are not subject to the tax. Nevertheless, the General Assembly has spoken and prudent software vendors should collect sales tax not only on the price of the canned software package itself, but also on digitally or electronically delivered maintenance, update and support services, at least until the interpretation of this provision is clarified by the Department or through the courts.
The Pennsylvania Department of Revenue has published a summary of this and other changes that are part of the recent amendment to the Pennsylvania tax code: http://www.revenue.pa.gov/GeneralTaxInformation/TaxLawPoliciesBulletinsNotices/Documents/State%20Tax%20Summary/2016_tax_summary.pdf
Marrying again? Is a prenuptial agreement right for you?
Written by Jessica A. Pritchard
The decision to remarry is not made lightly. Marrying a second time is oftentimes very different from a first marriage. Parties involved in a second marriage are likely to have assets and children from a prior relationship. Recalling the time, money and emotional energy spent during a divorce, friends and advisors might mention a prenuptial agreement. A well-drafted prenuptial agreement can protect these hard-earned valuables.
Is a prenuptial agreement right for you? It is if you want to avoid the aggravation and expense of litigating your future. Protect yourself.
A prenuptial agreement is a contract between persons who plan to marry. The agreement addresses how property is to be divided or the terms of support/alimony in the event of a divorce or the death of one of the parties. Executing an agreement before being married in order to address what will occur in the event of divorce is not romantic, but it is smart.
What can be expected? What needs to be done?
Once it is decided that a prenuptial agreement is appropriate, the first step is to contact an attorney well in advance of a wedding date. Presenting a prenuptial agreement to one’s fiancée on the eve of a wedding adds unnecessary pressure to an already stressful time.
Anticipate providing your attorney documentation of current assets, liabilities and sources of income. To ensure that an agreement's validity cannot be challenged at later date, the parties must disclose their current financial status. Prepare an outline of assets and liabilities and bring recent tax returns to your meeting to help make the process easier.
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215-230-7500, ext. 150
gmontemuro@ammlaw.com
CONTACT CARDPractice Groups:
Bar Admissions:
- Pennsylvania, New Jersey, U.S. District Court for the Eastern District of Pennsylvania
Education:
- Villanova University School of Law, J.D., 2015
- Saint Joseph’s University, B.A. 2012