Divorcing couples go through a process of dividing marital assets and debts, including real estate, financial accounts, and more. If one partner tries to hide certain assets, it can cause significant legal problems for them and financial hardship for you.
A first step in uncovering hidden assets is when the finances of your marriage do not add up. Your current financial situation should make sense based on your joint income over the last several years. So, if over the last 10 years, you and your spouse have earned about $500,000 per year with living expenses of $10,000 per month, and you have zero investment and savings, we would ask where the money is.
If you think you should have significant savings and do not, then you might want to start tracing when the money was transferred and to where.
Uncovering Hidden Finances Starts With Looking in the Right Places
It’s expected that you’ll divide your assets and be fully transparent with your spouse amid the process. However, some sneaky spouses try to conceal assets and avoid a full financial disclosure. They might:
- Temporarily transfer funds to loved ones
- Create offshore bank accounts
- Alter information on tax returns
- Adjust business records
- Purchase property under a different name
If you believe your ex is hiding assets from you via property division fraud or offshore accounts, divorce lawyers can step in.
What Are the Consequences of Concealing Marital Assets?
One may think that concealing assets is a surefire way to dissolve a marriage with the upper hand. However, harsh penalties exist for those who try to cheat the system. The consequences of hiding assets during a divorce include:
- Fines
- Criminal sanctions for fraud
- Awarding the other spouse more assets in the proceedings
A paper trail always exists when it comes to real estate, investment accounts, and tax returns. If you want to uncover concealed assets, we can bring a professional and/or forensic accountant onto the team. Divorce proceedings can turn messy and expensive the longer they drag out, so let a trusted accountant scope out any concealed money or investments.
Cryptocurrency Raises Concerns
If your spouse invested in Bitcoin or other cryptocurrencies during your marriage, but now claims they have no investments during a divorce, are they telling the truth or trying to limit the amount of money you receive in your settlement?
Suspicious behavior calls for a thorough search of these accounts and questioning from legal counsel.
Monitor Hidden Debt and Act Accordingly
Hiding assets from a spouse presents problems, but hidden debt creates other financial hurdles for divorcing individuals. Never dissolve your marriage without confirming the unresolved debt in your name.
Request a credit report to see what outstanding debts are in your name. We can review the report to ensure you are familiar with each debt and then work with you to investigate others that you don’t think are yours. For example, if you’re responsible for a car loan that is not yours, we will need to do some investigating to clear the loan from your account.
Hire an Experienced Divorce Attorney To Guide You Through This Complex Process
Going through a straightforward divorce can be an emotional time, but dealing with divorce and hidden assets presents greater challenges. Turn to Karen Ann Ulmer, P.C., for assistance. Our knowledgeable attorneys will help you navigate the process and dissolve your marriage with a fair settlement.
Call (866) 261-9529 to request a consultation today.
Can You Terminate Alimony?
AlimonyBeing under legal obligation to pay alimony or spousal support can present financial challenges, especially when your circumstances change. You may wonder: Can you terminate alimony?
You may be able to seek an alimony modification or termination if you have a valid reason for doing so. Consult an experienced divorce attorney for assistance navigating this process.
Is Alimony Permanent?
Many alimony arrangements are temporary, not permanent. Often, the court awards alimony temporarily to give the receiving spouse time to resolve their financial hardship after the divorce. Consult your divorce attorney to understand the intended length of your alimony payments.
If your alimony is considered long-term or permanent and you can no longer reasonably afford these payments, you may be able to petition the court for a modification based on significant changes in your financial circumstances. Your attorney will help you understand spousal support termination laws and your potential eligibility to modify this agreement.
Common Grounds for Seeking Alimony Modification or Termination
The court may consider granting an alimony modification or termination for a few reasons.
What Factors Does the Court Consider in an Alimony Modification?
Modifying or terminating alimony requires you and your attorney to submit a court petition requesting a change to the existing alimony order, along with evidence of changes in your circumstances. These are a few factors the court considers when reviewing the petition:
Consult Karen Ann Ulmer, P.C., for Legal Guidance
Can you terminate alimony? Karen Ann Ulmer, P.C., can review your alimony agreement and help you understand whether a modification or termination may be appropriate. Request a confidential consultation today by calling (866) 349-4117.
Should You Move Out of the Marital Home During a Divorce?
DivorceIf you and your spouse have begun the divorce process, you may be considering moving out of the marital home. This would give you space from each other and allow you to start building your new life.
But before moving out during divorce, consult an attorney about whether this makes sense for your case. These are a few potential repercussions to be aware of.
Moving Out Can Have Child Custody Implications
You may feel that moving out of the family home is a considerate step, giving you and your spouse space from each other. But in some cases, the court may view this as evidence that you are not involved in daily parenting responsibilities. It may even flag you for “spousal abandonment,” which means you left the marital home without your spouse’s consent.
You do not want the court to view you as the “non-custodial parent” from the beginning. Staying in the family home demonstrates that you contribute to your children’s upbringing, making it more likely that the court would award custody to you or shared custody to both parents. In contrast, the court may view you moving out as abandoning your parental obligations.
Paying Double Bills Can Impact Your Financial Position
As long as you are still on the lease or mortgage for your shared home, you are likely financially responsible for half of the monthly housing costs. Moving into a new apartment or home will require you to pay double housing costs during the divorce process. This can harm your financial position.
Your finances affect several aspects of the divorce process. The judge will scrutinize your transactions when considering child custody, spousal support obligations, division of assets, and more. Generally, you should avoid any behaviors that hurt your finances during this process.
Moving Out Might Make It More Challenging To Keep the Home
If you voluntarily move out of the marital home during the divorce process, you risk being unable to keep the home after the divorce.
The court may grant exclusive occupancy rights to your spouse, especially if they have primary custody of shared children. If you have already moved out voluntarily, the court may assume that you are in favor of these occupancy rights.
Carefully consider housing and custody before making any decisions early in the divorce process. While you may initially feel okay about your spouse keeping the family home, you may change your mind later. Moving out could influence how the court approaches decisions about property ownership or use during the divorce.
Consult Karen Ann Ulmer, P.C., Before Moving Out
Before moving out during divorce, consult an experienced attorney and create a detailed plan for custody and housing costs. In some instances, moving out is the right choice, such as if you feel unsafe in the home. However, it’s important to understand the potential repercussions and seek an attorney’s advice before doing so.
At Karen Ann Ulmer, P.C., we advise clients on how to protect their marital property rights. Schedule a confidential consultation with our divorce attorneys by calling (866) 349-4117.
Approaching Big Financial Decisions During Divorce
DivorceIf you and your spouse have decided to divorce, you might feel eager to begin moving forward and start your new life. However, caution is recommended when making big decisions, especially those involving finances. Here are a few reasons to consider postponing major financial changes until after the divorce is finalized.
Making Big Purchases Might Impact Your Eligibility for Refinancing the Mortgage
The property division process often requires couples to purchase new vehicles to replace the ones they previously shared. However, before you buy a new car, consider whether you will need to refinance your mortgage after the divorce.
For example, perhaps you and your spouse are both on the mortgage now, but you plan to keep the family home. You might refinance the mortgage to seek a better rate and account for your new sole ownership. Purchasing a vehicle immediately before applying for a mortgage can significantly impact your eligibility and rates.
Your lender determines your loan eligibility based on your current assets and income. If either of these changes, they may need to reconsider the loan, adding time to the refinancing process and potentially leaving you with worse interest rates.
Selling Assets Could Lead to Disputes During Property Division
Pennsylvania follows an equitable distribution policy for divorce, which means the court seeks to divide assets fairly between spouses. Selling assets or making major investments immediately before the divorce could lead to disputes during the property division process.
A judge may assume you were trying to devalue the estate or hide assets. It may be better to delay big financial decisions until after the divorce, when the property division is finalized.
The Court Could Impute Income for Alimony or Child Support
When a spouse is “underemployed” in a divorce, meaning they work below their skill level and potential earnings, the court may impute income. This means the court would base spousal support and child support on their earning potential rather than actual earnings.
If you are currently underemployed, consider exploring other employment opportunities to increase your income. Otherwise, the court may base support obligations on imputed income, which could lead to higher payments than you can reasonably afford.
Your Financial Habits Could Affect Child Custody Choices
Showing that you are financially responsible is important when navigating the child custody process. Remember, your financial decisions leading up to the divorce can affect your reputation in the eyes of the court.
The judge may scrutinize your transactions to look for signs that you are financially unstable or irresponsible. Even if you can justify the major purchases you made, a judge may not view them the same way you do.
Consult With Karen Ann Ulmer, P.C., Before You Make Big Divorce Decisions
Seeking counsel from an experienced divorce attorney can help you determine which financial decisions and transactions might impact your divorce process. Karen Ann Ulmer, P.C., advises clients throughout the asset protection process, divorce mediation, and child custody negotiations. Schedule a confidential phone consultation with our divorce attorneys by calling (866) 349-4117.
Divorcing With Young Children: What To Consider
DivorceDivorce can be especially complex when young children are involved. This process often significantly impacts child development. Navigating it successfully is important to your child’s well-being.
As you approach a divorce with young children, keeping a few considerations in mind can help you traverse this process more smoothly. You won’t be able to predict everything your child will need, but you can better anticipate the major concerns that may arise after the divorce.
Where Will They Attend School?
Divorce is a major change for children, and keeping as much of their lives the same as possible can help them better adapt to this new norm. Consider whether your child will be able to attend the same school, or whether child custody arrangements will move them into a different district during school days.
Then think about logistical details, such as:
How Will You Approach Extracurricular Activities?
Navigating extracurricular activities can be challenging when parenting time is shared and those activities overlap with both parents’ time with the child. Will you both be involved in these activities? Will one parent be responsible for taking them to all practices and games? How will you approach extracurricular activities that fall into the other parent’s parenting time?
How Will You Approach Future Educational Expenses?
Child support calculations are generally determined by state law, but it may be helpful to think long-term about future financial responsibilities, such as college. Will both parents contribute to the child’s college fund? Will neither? Have these discussions now to avoid disputes years down the line.
What Parenting Time Schedule Makes Sense?
The main goal of developing a parenting plan should be prioritizing the child’s best interests. With this in mind, what parenting schedule makes sense for your child? Some families split time between weekdays and weekends. Others divide time between the school year and summer.
How Will You Successfully Co-Parent?
Implementing effective co-parenting strategies can help you promote your child’s well-being. Think about strategies you can use to create consistency for your child, such as:
How Might Your Parenting Plan Change As Your Child Ages?
Going through a divorce with young children requires you to think long-term about what aspects of your parenting plan might change over time. As your child ages, their needs and routines will change. They will gain independence and spend less time with their parents in general. They may also have stronger opinions about which parent they want to live with and how they spend their time.
Consider how you will adapt to changes and the level of flexibility you want to maintain in your parenting plan.
Karen Ann Ulmer, P.C.: Protecting Your Parental Rights
Divorcing with young children can present complex challenges, but at Karen Ann Ulmer, P.C., we provide guidance to parents navigating this process. Contact us at (866) 349-4117 for a confidential consultation.
Divorce and Hidden Assets
Equitable DistributionDivorcing couples go through a process of dividing marital assets and debts, including real estate, financial accounts, and more. If one partner tries to hide certain assets, it can cause significant legal problems for them and financial hardship for you.
A first step in uncovering hidden assets is when the finances of your marriage do not add up. Your current financial situation should make sense based on your joint income over the last several years. So, if over the last 10 years, you and your spouse have earned about $500,000 per year with living expenses of $10,000 per month, and you have zero investment and savings, we would ask where the money is.
If you think you should have significant savings and do not, then you might want to start tracing when the money was transferred and to where.
Uncovering Hidden Finances Starts With Looking in the Right Places
It’s expected that you’ll divide your assets and be fully transparent with your spouse amid the process. However, some sneaky spouses try to conceal assets and avoid a full financial disclosure. They might:
If you believe your ex is hiding assets from you via property division fraud or offshore accounts, divorce lawyers can step in.
What Are the Consequences of Concealing Marital Assets?
One may think that concealing assets is a surefire way to dissolve a marriage with the upper hand. However, harsh penalties exist for those who try to cheat the system. The consequences of hiding assets during a divorce include:
A paper trail always exists when it comes to real estate, investment accounts, and tax returns. If you want to uncover concealed assets, we can bring a professional and/or forensic accountant onto the team. Divorce proceedings can turn messy and expensive the longer they drag out, so let a trusted accountant scope out any concealed money or investments.
Cryptocurrency Raises Concerns
If your spouse invested in Bitcoin or other cryptocurrencies during your marriage, but now claims they have no investments during a divorce, are they telling the truth or trying to limit the amount of money you receive in your settlement?
Suspicious behavior calls for a thorough search of these accounts and questioning from legal counsel.
Monitor Hidden Debt and Act Accordingly
Hiding assets from a spouse presents problems, but hidden debt creates other financial hurdles for divorcing individuals. Never dissolve your marriage without confirming the unresolved debt in your name.
Request a credit report to see what outstanding debts are in your name. We can review the report to ensure you are familiar with each debt and then work with you to investigate others that you don’t think are yours. For example, if you’re responsible for a car loan that is not yours, we will need to do some investigating to clear the loan from your account.
Hire an Experienced Divorce Attorney To Guide You Through This Complex Process
Going through a straightforward divorce can be an emotional time, but dealing with divorce and hidden assets presents greater challenges. Turn to Karen Ann Ulmer, P.C., for assistance. Our knowledgeable attorneys will help you navigate the process and dissolve your marriage with a fair settlement.
Call (866) 261-9529 to request a consultation today.
What To Know About Tax Filing Before, During, and After Your Divorce
DivorceHow do I file my taxes if I am getting a divorce?
Going through a divorce can bring tax implications that you may not be aware of until long after you finalize the proceedings. What should you expect when it comes time for your first tax filing after your divorce? Our team will review the details based on your specific divorce. Here are some details to help answer your questions.
First and foremost, you file your taxes based on your status as of December 31st of the previous year. If you were officially divorced by December 31st of the previous year, then you are going to file on your own. If you were not divorced by the end of the year, then you have the option to file together or file separately. Each has advantages and disadvantages, which an accountant can review with you at tax time.
Understand the Long-Term Implications That Await
Dissolving your marriage means you’ll (more than likely) no longer share marital assets with your spouse and, instead, become the sole owner of various investments or properties. When you report your income to the IRS as an unmarried individual, the taxes owed can look quite different from when you were married.
Say you plan to stay in the home you shared with your spouse, which calls for them to receive more in retirement investments, so your division of assets remains equitable. You will be responsible for any capital gains tax when you eventually sell the home. Consult an accountant to learn about divorce and tax deductions that come with the assets you receive following a marriage.
Navigating Filing Status Changes Amid a Divorce
Your first tax filing after your divorce may not bring immediate changes, depending on the timing.
Remember, if you finalize your divorce in January of 2026, the IRS will recognize you as married for the 2025 tax year because your divorce was not finalized before the December 31 deadline. In this case, you could file your 2025 taxes jointly or as married filing separately.
Changes could be afoot when you have to file as a single individual. For example, you could claim head of household status if you meet the following criteria:
Are alimony and child support taxable income?
The simple answer here is usually not. However, if you were divorced long ago, you may be required to still count alimony as income for tax purposes.
Become Familiar With Alimony Tax Rules and Child Tax Credits
If you have young children, your divorce decree will name a custodial parent. The custodial parent is the person who has the children in their care for the majority of the year. This person can claim child tax credits.
Our Divorce Attorneys Are on Your Side – Contact Us Today
Don’t approach a tax filing after your divorce without proper knowledge. Team up with Karen Ann Ulmer, P.C., and let our resourceful attorneys prepare you for all aspects of a divorce. We have years of experience practicing family law and are ready to see you through this transition.
Call (866) 261-9529 or use our online booking tool to schedule a free legal consultation.
Post-Divorce Budget
DivorceTransitioning from a dual-income household to a single-income household after a divorce calls for accurate and detailed expense tracking. Figuring out your post-divorce budget is critical for living within your means and avoiding financial hardships.
Our team will work with you on your post-divorce budget. This budget will serve as a guidepost for when we negotiate alimony, child support, and the division of assets and debts.
How do you budget for your post-divorce life on a single income? Take these steps so you do not struggle financially.
Gather Accurate Information Regarding Monthly Income and Expenses
As we prepare a strategy to negotiate, we will ask for ALL of the details of your anticipated post-divorce budget, including a detailed breakdown of your monthly income and expenses. We will use pay stubs, investment income, and any other incoming cash you receive. If you do not regularly track your expenses, then we will ask you to track receipts and go through credit card statements. Typical expenses can include:
Sometimes we talk about adjusting lifestyle expenses so you live within your means, possibly just in the short term, so you can reach your post-divorce financial goals.
Consider Your Children’s Expenses
When you share children with your ex, the cost of caring for them becomes vital for determining alimony and budgeting properly. You and your spouse will both share financial responsibility for your children based on the number of overnights the children stay with each of you. Think about how much you spend on your children each month. These costs may include:
Your lawyer can negotiate a settlement based on your custody agreement so your children are cared for in a way that is financially reasonable for both parents.
Plan for Educational Costs
No matter how old they are at the time of your divorce, it’s important to include college tuition agreements for your kids in your settlement. Figuring out a plan for your child’s education in advance can save you and your co-parent financial headaches down the road and ultimately set your child up for a successful future.
It’s not just children’s educational costs that come into play. Do you anticipate taking some courses or earning a degree so you can bring new skills into the workforce? Research the cost of advancing your education and account for this in your post-divorce budget.
Set Aside Emergency Funds
An important part of financial planning after divorce is preparing for the unexpected. What would you do if your car suddenly broke down and you had to pay thousands for a new one? Would an urgent medical crisis put you into debt?
Establish an emergency savings account and commit to putting a little bit in it each month. This account will build over time, so you eventually accrue enough to cover six months of your living expenses. Having this safety net will give you peace of mind should you lose your job or face some other financial hardship.
Team Up With a Trusted Divorce Attorney
Creating a post-divorce budget will help you move on from your marriage and be financially independent. Approach this process with the help of Karen Ann Ulmer, P.C. Contact our family law firm at (866) 261-9529 or submit our online form to schedule a consultation.
Divorce and Your Credit Score
DivorceSimply ending your Bucks County marriage cannot cause your credit score to drop. The actions you and your spouse take before, during, and after your divorce can cause credit problems in the short term and long into the future. You can mitigate credit damage by reassessing your financial obligations during proceedings, ensuring bills are paid, and separating your financials as soon as possible.
Below, we discuss the connection between divorce and your credit score, as well as tips to limit the fallout.
Be Strategic About Paying Bills
Your credit score after divorce can remain the same as during your marriage as long as you pay your bills on time. Financial separation is crucial during this period, so you (and you alone) are responsible for your bills.
Think about the bills in your name and who pays for them. For example, paying off your credit card each month will remain your responsibility if the account belongs to you alone. Joint assets can create problems for divorcing spouses, especially if they default on a loan.
Say you and your spouse share a home, and both of your names appear on the deed and mortgage. If you move out and don’t pay your share of the mortgage, your credit can suffer because your name is still attached to the loan.
The connection between divorce and lower credit scores often has to do with not paying bills. Whether this is due to stress or lifestyle changes, your credit score might take a hit.
Don’t Take On New Debt
Lawyers often guide couples through the complex process of divorce and debt division. Legal professionals strongly advise against taking on new debt, especially if the asset doesn’t belong to you. This includes:
You could be on the hook for payments that you agreed to during your marriage, especially if you signed as a primary or co-signer for your spouse. For example, if a husband has student loan debt and the wife was a co-signer on that loan, she could become liable for future payments despite a divorce. If she stops paying amid a separation and the husband is not able to pay, then the wife’s credit score could be impacted.
Avoid Joint Account Liability
Perhaps the biggest credit impact of divorce boils down to keeping joint accounts when you’re no longer legally married. Start over by closing these accounts and only using bank or credit card accounts solely in your name. I recommend this step because it helps alleviate certain financial obligations tied to your ex once you officially end the marriage.
Changing your existing account numbers in case your former spouse still has access to them is a good idea. For example, your computer may save one of your credit cards and allow your ex to make purchases on your dime. Changing your account information prevents this, helping you achieve an independent financial future.
Prepare for Your Future With a Professional Divorce Attorney
Mitigate the impact of divorce and your credit score with the help of Karen Ann Ulmer, P.C. Our knowledgeable family lawyers can guide you through proceedings and assist with child custody agreements, alimony, and more.
Call (866) 261-9529 or submit our online booking form to request a consultation – we’re standing by and ready to help.
Divorcing? Get Your Credit Report
DivorceStarting the initial steps of a divorce can feel overwhelming. You may be unsure what processes to prioritize or how to set yourself up for success. One step you can take now is requesting a copy of your credit report.
This can aid you in your next steps as you start to move forward financially after the property division process.
Why Do You Need Your Credit Report?
Your credit report offers a summary of your credit activity, including loans and other debts. It includes information such as your:
When you apply for loans or other financial opportunities, the financial institution will view your report to determine your trustworthiness and eligibility. If you have a significant amount of debt or a history of late payments, it may deny your application.
Requesting a copy of your report can help you prepare for certain financial processes in your divorce, such as refinancing your mortgage or applying for an apartment rental. If this report paints a negative picture of your finances, you can start taking steps now to improve your credit or explore other opportunities that won’t hinge on your creditworthiness.
You can also identify any hidden debts or assets that will eventually come to light during the marital dissolution process. If you find any discrepancies in your report, potentially indicating malicious behavior from your spouse, you can address them now.
Protecting Your Credit During and After Divorce
Divorce can have indirect consequences on your credit score, which could limit future financial opportunities. Years of marriage and combined finances can be challenging to untangle. These tips may help you protect your credit during the divorce process:
If your score is on the lower side, take steps now to begin building credit. You might apply for a secured credit card, practice making bill payments on time, and reach out to a credit counselor for help.
How To Request a Copy of Your Credit Report
You should never need to pay for a copy of your credit report. You can request a free report as often as once per week through AnnualCreditReport.com, a service authorized by federal law.
You will need to answer a few personal questions before you can see your reports. This ensures that no one else can access your information aside from you.
Let Karen Ann Ulmer, P.C., Help You Protect Your Finances During Divorce
Legal separation and divorce can strain your finances. At Karen Ann Ulmer, P.C., we help clients protect their rights while divorcing. Let us guide you through the settlement agreement, divorce petition, alimony discussions, and more. Call (866) 349-4149 to schedule a general consultation.
What You Need To Know About Lengthy Court Battles in Divorce
DivorceIf you and your soon-to-be-ex-spouse cannot reach agreements about issues like asset division, child custody, or spousal support on your own, you may need to go to trial. A judge will decide these issues for you based on Pennsylvania’s laws, attempting to reach a fair decision. We understand if you fear the lengthy court battles and stressful debates that can be part of this process.
Here is what you need to know about going to court in a divorce.
How Long Is the Divorce Court Process?
If you and your spouse must use litigation to decide on divorce issues, you can generally expect the process to take about a year. It may be faster or slower, depending on court delays and how long you spend negotiating.
The process generally follows these steps:
Downsides of Going to Court
For some divorcing couples, going to trial is inevitable. They have tried to settle relevant matters on their own but cannot reach an agreement. Still, it’s worth exploring the potential downsides of going to trial as you and your soon-to-be-ex-spouse attempt to reach a resolution.
Legal fees, court costs, and other expenses often make going to trial expensive. This process also takes more time than reaching a divorce agreement on your own.
During negotiations with your spouse, they can claim rights to any new money you earn. These claims can cost you more time and money, even if they are unfounded. Your finances may not truly be separate from theirs until the divorce is finalized.
Above all, going to trial means you permit a judge to make all decisions about the divorce for you, and you and your spouse must abide by them. While you can attempt to prove your side with evidence and an attorney’s assistance, you won’t have any say in the judge’s final decision, and it may not adequately reflect your wishes or situation.
Mediation May Help You Avoid Court
Divorce attorneys typically advise couples to try mediation before enduring lengthy court battles. This process involves meeting with a trained mediator who can help you resolve your dispute. You and your spouse will each have an opportunity to present your case and negotiate a mutually beneficial solution.
Finding out the downsides of going to court may prompt you and your spouse to be willing to compromise on issues to avoid this process. Mediation is worth a try, as it could save you a significant amount of time and money.
Let Karen Ann Ulmer, P.C., Guide Your Divorce Process
Whether you want to try mediation or need an experienced attorney to help you through a lengthy court battle, Karen Ann Ulmer, P.C., is here for you. Call (866) 349-4149 to schedule a general consultation.
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