Five Important Tax Tips in Divorce

1. Some attorney’s fees may be tax deductible, including, but not limited to, fees for tax planning and fees for generating taxable income.


2. The income tax exemption for minor children should be a subject of negotiation.  It has substantial ramifications to both parties.


3. Remember that maintenance is income to the recipient and a deduction to the payor.


4. Child support is not taxable to the recipient and is not a deduction to the payor.


5. When there are two or more children, both parents can be head of household under certain circumstances.

Five Important Tax Tips in Divorce

Qualified Tuition Programs - 529 Plans - EdVest

Wisconsin allows a subtraction of up to $3,000 per dependent child, spouse, taxpayer, grandchild, great-grandchild, niece or nephew for contributions made to the EdVest College Savings Program.  Special rules apply for formerly married parents.

Qualified Tuition Programs - 529 Plans - EdVest

If Your Teens Are Sexting, They May Be Charged Criminally!

Your image of a child pornographer is generally an older, unkempt man.  That is not always true.  As sexting becomes more prevalent, district attorneys sometimes seek to charge sexting teenagers with child pornography violations.  While teenagers may consider it harmless to exchange cell phone photos of their naked bodies, such conduct can have lasting negative ramifications.  Sexual exploitation is sometimes defined as a person who “records or displays in any way a child engaged in sexual explicit conduct,” or someone who persuades a child to engage in sexually explicit conduct for the purpose or recording or displaying the conduct.  The ramifications of sexting are yet unclear.  The ACLU is taking the position that sexting is free speech under the United States Constitution.   It is important to make your child aware of the potential negative impact on his or her life if involved with sexting.

If Your Teens Are Sexting, They May Be Charged Criminally!

Sexual Orientation and Custody

In Wisconsin whether a person is lesbian or gay is not a specific criteria for determination of custody and placement of a minor child.  However, it is fair to say that the issue of a parent’s sexual orientation may become a focus of the custody/support decision.  It is recognized that a parent’s sexual orientation alone does not necessarily affect the best interests of the children which is the broad-based criteria for custody/placement decisions.Organizations which provide insight into issues addressing gay and lesbian parents include:

Lambda Legal Defense and Education Fund:  www.lambdalegal.org

Gay & Lesbian Advocates & Defenders:  www.glad.org

National Center for Lesbian Rights:  www.nclrights.org

Sexual Orientation and Custody

Family Support - What is it?

Family support is a combination of child support and maintenance in a single order.  Unlike child support, family support may be taxable depending various factors.  You should discuss the tax ramifications of family support with your accountant.

Family Support - What is it?

Access to School Records in a Divorce with Sole Custody to One Parent

Even if one parent is awarded sole custody of the children, the other party, nevertheless, has access to medical, dental and school records.  Pursuant to Sec. 767.41(7(a) Wis. Stats., Except under par. (b) or unless otherwise ordered by the court, access to a childs medical, dental and school records is available to a parent regardless of whether the parent has legal custody of the child.

Access to School Records in a Divorce with Sole Custody to One Parent

American Opportunity Tax Credit

The American Opportunity tax credit lets families take a credit for the first $2000 in qualified education expenses and 25% of the next $2000, for a total potential credit of $2500.  This credit is good for 2009 and 2010.  Single filers are eligible for the full credit if their adjusted gross income is $80,000 or less.  Married couples can get full credit up to $160,000.  The credit applies to tuition, fees, books and supplies, not room and board.

American Opportunity Tax Credit

Are Automatic Custody Change Provisions Enforceable?

Generally, the parties cannot agree to an automatic custody change without addressing whether or not such a change is in the best interests of the minor child at the time the automatic custody change is scheduled to occur.

Are Automatic Custody Change Provisions Enforceable?

Auto Accident

If you have been in an auto accident, be sure to call the police and exchange information with all parties (including the name and contact information of each party’s insurance company).

Auto Accident

McDonald"s DUI Patrol: Drive-Thru Workers Report Offenders

DUI drivers may get hungry and want to stop through a fast food joint for a snack, but this could prove to lead to arrest, as is evidenced by a story that unfolded in Oak Creek, Wisconsin this week. According to TMJ4 News, a man who was intoxicated pulled up to a McDonald’s drive-thru early in the morning on Saturday.

The worker at the window immediately recognized that the customer was intoxicated, and called the police. The law enforcement officers arrived shortly afterwards and determined that they needed to catch the offender. Officers arrived shortly after the customer had pulled through the drive-thru, and one of the police walked up to the offender’s car when he took off.

Thus began a pursuit as the offender drove away. He was apprehended only a few minutes later, arrested, and taken to jail on charges of driving under the influence and eluding a police officer. When tested, the offender’s alcohol level registered at 0.18% and it was discovered that this was his second arrest for drunk driving. If you have been driving drunk, locals have the right to report your crime.

Contact a Washington County criminal defense lawyer today for more information and about DUI defense. If you have been accused of driving under the influence then you deserve the best defense there to help you. If you are a Washington County resident, then you can gain the representation that you deserve by hiring a seasoned attorney at Vanden Heuvel & Dineen. This firm is AV® Rated by Martindale-Hubbell, which means that they have been recognized as a successful firm that cares about their clients.

At Vanden Heuvel & Dineen you won’t be treated like just another case, you will be valued as an individual who has a future at stake in your case. This Better Business Bureau accredited business is here to help you, so contact the firm for more information today!

McDonald"s DUI Patrol: Drive-Thru Workers Report Offenders

Bad Faith - Insurance Company

Every insurance contract has an implied covenant of good faith and fair dealing.  An insurance company must act honestly and fairly in handling your claim.  If you are involved in a dispute with your insurance company over an unpaid claim, please call Vanden Heuvel & Dineen, S.C.

Bad Faith - Insurance Company

Basic child support guidelines

The basic child support guidelines are used when one parent cares for the child for more than 75% of the time (274 or more days per year).  The other parent will pay support based on his or her income.  The basic support guidelines are: 17% of gross income for 1 child, 25% of gross income for 2 children, 29% of gross income for 3 children, and 31% of gross income for 4 children.

Basic child support guidelines

Benefits to foster parenting

Foster parents are able to provide children with a safe and loving place to live when parents are unable to provide that. Foster children come from a wide variety of backgrounds and situations. They are children of all ages and races. The children in the most need of homes are children with special needs, including teenagers, siblings and children with physical, emotional or behavioral disabilities.  Often, these are children that just need a place to call home.

Benefits to foster parenting

Can a birth mother choose the adoptive parents for her child?

In Wisconsin, a birth mother can select an adoptive family for a child or she can allow an adoption agency to select a family on her behalf. Wisconsin Statute Sections 48.833-837 may apply.

Can a birth mother choose the adoptive parents for her child?

Can my rights be protected between the start of a divorce action and the final hearing?

Can my rights be protected between the start of a divorce action and the final hearing?

Can my child"s mother consent to terminate her parental rights for our child?

The parent of a child can consent to terminate their parental rights. However, the Court generally will not grant the request unless another person (i.e. a step-parent) is there to take the place of the birth parent. For example, if you have a spouse, that individual would petition the Court for a step-parent adoption to take the place of the birth mother

Can my child"s mother consent to terminate her parental rights for our child?

Can my rights be protected between the start of a divorce action and the final hearing?

Yes. Every divorce includes an order that neither spouse can harass, intimidate, physically abuse, or impose restraints on the personal liberty of the other spouse or minor children (under age 18) of either spouse. In addition, neither spouse can encumber, conceal, destroy, damage, transfer, or otherwise dispose of property owned by either or both of the spouses, without the other spouse’s consent or a prior order of the court or family court commissioner. There are exceptions for actions taken in the usual course of business, in order to buy necessities, or to pay reasonable divorce expenses, including attorney fees.In addition, the judge or family court commissioner may issue other temporary orders that protect your rights during the divorce process. For example, temporary orders may determine child custody and physical placement, who lives in the family home, payment of maintenance and child support, and payment of debts.

Can my rights be protected between the start of a divorce action and the final hearing?

Cash for Appliances Begins

The taxpayer funded Energy Efficient Appliance Rebate Program has begun.  The appliance rebates funded by the Federal Stimulus Package include the following rebates for energy-efficient appliances only:  dishwasher $25; freezer $50; refrigerator $75; clothes washer $100; water heater $150 (or $50 for electric heat-pump water heater); furnace, oil and gas $200; boiler $200; central air conditioner $75; air-source heating pump $75; geothermal heat pump $75; and solar hot water system $2,000.Find details about the program and list of appliances that qualify at www.focusonenergy.com/recovery.

Cash for Appliances Begins

Child labor laws

In Wisconsin, there are restrictions on when minors can work. The time of day when they may be employed, including how early and how late, and the number of hours which they may work per day and per week are all regulated. These restrictions depend on the age of the minor and whether or not school is in session during the period they are employed. Only high school graduates and other minors who are exempt from school attendance may be employed the same hours as an adult

Child labor laws

Common Deductible Medical Expenses

Accupuncture, ambulance, annual physical exam, artificial teeth, bandages, chiropractor, dental treatment (teeth whitening is not deductible), diagnostic devices, hearing aids and batteries, medical services, medicines, insulin, oxygen, pregnancy test kit, transportation expenses (must be primarily for and essential to medical care), nursing services, etc.

Common Deductible Medical Expenses

Common law marriage

Some states recognize couples as married after they agree to marry and live together for a specified time, even though they never formally marry.  Wisconsin requires a marriage license and an official ceremony.

Common law marriage

Common law marriage

Some states recognize couples as married after they agree to marry and live together for a specified time, even though they never formally marry.  Wisconsin requires a marriage license and an official ceremony.

Common law marriage

Credit Card Act of 2009

The following rules go into effect on February 22, 2010, with just a few applicable in August 2010.  The following are the primary provisions of the Credit Card Act:1.  Interest rates cannot be raised during the first year of an account.

2.  Issuers cannot impose a processing fee for online or phone payments.

3.  Issuers cannot charge fees if you go over your credit limit without your authorization.

4.  Customers must be more than 60 days late on payments before their interest rates can be raised on prior balances.

5.  If the rate goes up, the interest rate must go back to the lower rate if the cardholder makes payments on time for six months in a row.

6.  If your card has more than one interest rate on balances, payments must be applied to the highest rate balance first.

7.  Credit card issuers will still be able to lower your borrowing limit, cancel your account without notice and raise your monthly payment.

Credit Card Act of 2009

Jurisdiction for a Divorce

In the State of Wisconsin, a divorce action must be filed in the county where the person resides.  The person filing for divorce must be a resident of the State of Wisconsin for more than six months immediately proceeding the filing, and a resident of the county where the divorce will be filed for more than 30 days prior to the filing of the action.

Jurisdiction for a Divorce

Labor Standards Retaliation Law

Under Wisconsin Statutes Section 111, an employer is prohibited from retaliating against any employee who files a complaint, attempts to enforce a right permitted by statute, or testifies in a case, or assists in a case under the state’s labor standards laws such as child labor, minimum wage, hours of work and overtime, wage payment and collection, and prevailing wage rate laws.The recourse for employees who believe that their rights have been violated is to file a Complaint with the Civil Rights Bureau.  Those forms can be found here: http://www.dwd.state.wi.us/er/discrimination_civil_rights/how_to_file_cr_retaliation.htm

Labor Standards Retaliation Law

Life Insurance for New Spouse

My Judgment of Divorce orders me to maintain life insurance with my exwife as sole and exclusive beneficiary.  I now intend to remarry and have a new family to support.  Am I able to substitute my new wife as beneficiary of my life insurance policy?

The answer is no.  Unless you obtain a new Court Order allowing you to do so, you will be required to obtain an additional life insurance policy with your new wife and family as beneficiaries

Life Insurance for New Spouse

Maintenance - What is it?

Maintenance is financial support paid to an ex-spouse after a divorce.  The amount and duration of maintenance is determined by the factors in Wis. Stat. Sec. 767.56.

Maintenance - What is it?

Medicare Drug Program Prescription Assistance for Extra Help

There is a new addition to the Medicare Drug Program.  Effective January 1, 2010, more than 1 million low-income seniors are no eligible for better prescription drug benefits under the “extra help program.”  Benefiting from the new law are those with life insurance policies and those who obtain assistance from relatives to help pay household expenses but were previously disqualified because of too many assets or too much income.  Income limits are $16,245 a year for singles and $21,855 for married couples living together.  Assets such as stock, bonds and bank accounts must be limited to $12,510 for singles and $25,010 for couples.  The value of homes and autos is excluded.  Under teh old law, applicants had to include the value of life insurance policies and income received on a regular basis from relatives and friends to help pay household expenses.  Seniors can apply for the program at socialsecurity.gov, your local social security office or by calling 1-800-772-1213.

Medicare Drug Program Prescription Assistance for Extra Help

Name Change for Children

In Wisconsin, a minor or adult who is a residence of the state may on petition to the circuit court of the county where he or she resides and on filing a copy of appropriate notice, with proof of publication, if no sufficient cause is shown to the contrary, shall have his or her name changed.  If the person is under the age of 14, the petition may be made by both parents or the guardian or person having legal custody of the minor if both parents are dead or the parental rights of both parents have been terminated or the minor’s mother if the minor is a nonmarital child and is not adopted or his parents do not subsequently marry each other or if paternity of the minor has not been established.

Name Change for Children

New Insurance Law Takes Affect in Wisconsin January 1, 2010

Adult children up to the age of 27 will be able to stay on their parent’s health insurance under a new law that went into affect January 1, 2010.  Additional changes to health insurance coverage in Wisconsin, include the necessity to cover birth control costs for those looking to avoid having children.  The new law also mandates that insurance plans cover autism when group policies are renewed.

New Insurance Law Takes Affect in Wisconsin January 1, 2010

New Rules for Tax Preparers

The IRS has announced plans to impose mandatory registration, competency exams and ethical guidelines on independent tax return preparers.  The rules go into effect in time for next year’s filing season.

New Rules for Tax Preparers

No Minimum Support Requirement for Income Tax Exemption

There is no minimum support requirement for the non-custodial parent.  Even if the non-custodial parent pays no child support, that parent may claim the exemption if the custodial parent releases it.

No Minimum Support Requirement for Income Tax Exemption