How Uncle Sam Gets Involved In Your Settlement
Play episode · 36 min

Today’s topic is very important and one that a lot of us avoid as much as possible.W e’re talking about taxes - and specifically, the tax law changes that you absolutely need to know. This is going to be interesting, and important. We promise! Stacy Francis talks with Matthew Feigin, a Matrimonial Law group partner at Katsky Korins, who used to work for the Mayor of NYC Michael Bloomberg. Matthew is, as his son describes: “A lawyer who helps people share things.”Matthew shares the rather surprising story of how he came to be practicing the specific type of tax law that he does, and how he ended up in the Mayor's Office. [2:12]When a family with children is separating, it’s important to make sure there is consistency between the different homes that children will be living in. Tax plays an interesting role in making this possible, and recent changes in the tax law mean that the obligations different parties have changed. [4:00]The new laws sound really good on their face, but the upshot of the change in who pays what kind of taxes is that the payers of alimony are now incentivized to provide less money. Matthew and Stacy discuss the new complexities (and political implications!) divorced families find themselves dealing with. [08:00]Stacy mentions that even financial planning softwares don't account for all of these complexities. Matthew provides some insight into how lawyers are handling the implications of different tax brackets. Because it’s a new framework, both the legal and financial services professions are having to adapt - and the news isn’t traveling as fast as anyone would like!  [12:25]Settlement agreements can be unwieldy documents, where a dollar doesn’t always equal a dollar. Matthew talks about some of the situations where what is on paper doesn’t match up with what is in your bank account, and how to navigate these differences. [17:20]Stacy brings up some of the practical implications of varying tax situations, and how the different rates at which your assets are taxed have a major impact on your planning for your future. It’s important to look carefully at the vehicles your assets are stored in, so if you do have to split savings and assets, you know the implications of how that division will work in the future. [20:00]There are tax issues to consider when you’re thinking about how to take care of your children during and especially after a divorce. Matthew explains the specific taxes that will affect them and provides some pointers on the kinds of situations that can cause problems. [25:00]Matthew describes the unique elements of his practice, where he practices something called ConsensUS Mediation. This is a powerful, efficient and compassionate way of developing settlement agreements. These agreements often have more power than the courts when it comes to making provisions for your children. [28:00]

Contact Stacy Francis

212-374-9008Matthew Feigin Katskykorins.com212-716-3259 

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