Divorce in the Digital Age

Divorce in the digital age comes with a range of unique challenges compared to just 20 years ago. While your spouse may have physically moved out of the shared home, your online activities and assets remain intermingled.

You may be ready to move on from your spouse, yet they continue to use and monitor shared online accounts. Worse, you may be unaware of their behavior.

The right strategies can help protect your assets, privacy, and peace of mind. 

Change Passwords As Soon As Possible

You and your spouse probably learned each other’s passwords during the marriage. Even if you do not think your spouse knows your login information for online accounts, change all passwords as soon as possible. This prevents them from logging into accounts without your knowledge — or worse, stealing assets from financial accounts. 

Check all accounts for suspicious activity and change passwords promptly: 

  • Bank accounts
  • Social media accounts
  • Email accounts
  • Credit card accounts

Scan Your Computer for Keylogger Software

Online privacy protection proves crucial in a volatile divorce. Scan your devices for keylogger software, which could tell your spouse your new passwords and clue them into other sensitive information. Antivirus software can help you identify keyloggers. 

Additionally, clear your browsing history regularly in case your spouse gains access to your activity. 

Be Aware of Pennsylvania’s Digital Asset Division Protocols

Divorce in the digital age also requires you to separate digital assets. Any digital assets you and/or your spouse acquired during the marriage will be subject to equitable distribution, according to Pennsylvania’s marital property classification. These may include:

  • Cryptocurrency
  • Investment accounts
  • Online subscriptions (Netflix, Spotify, etc.)
  • Domain names
  • Assets owned in digital format (books, movies, music, TV shows, video games etc.) 
  • Online businesses

You may need to seek a cryptocurrency valuation or consult a professional to understand the value of certain digital assets. 

Digital photos and videos are part of the shared assets you and your spouse need to deal with during the divorce. In the meantime, turn off auto storage on photo apps to prevent new photos from uploading into a shared account. Your spouse could use photos as electronic evidence against you in the divorce. 

Create a New Email Address

One of the easiest digital security measures to take is creating a new email address to link to all important accounts — including social media. If your spouse still has access to your previous email account, they can use it to enter sensitive online accounts. Change your email and turn on two-factor authentication to further protect your online privacy.

Be Vigilant About Tracking Devices 

Finally, watch out for your spouse’s use of tracking devices such as Air Tags to follow your movements. Using these devices to stalk others is illegal, but you need to find them before any legal action can occur. 

Turn to Karen Ann Ulmer, P.C., for Divorce Assistance

A seasoned divorce attorney can help you navigate the complexities of divorce in the digital age while protecting your rights and privacy. Karen Ann Ulmer, P.C., is here for you; contact us today at (866) 311-6082 for a confidential consultation. 

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Navigating a High Assets Divorce

Fairly dividing assets and property can be one of the more emotionally and logistically challenging aspects of divorce. But the process becomes even more cumbersome when you and your spouse share significant, complex, high-value assets. 

Navigating a high assets divorce involves careful planning and the assistance of an experienced divorce attorney. 

Types of Assets To Consider in Your Divorce

When the average couple divorces, they may need to consider how they will split the family home, bank accounts, and shared vehicles. However, dividing assets in a high assets divorce adds another layer of complexity. You and your spouse may also need to divide any of the following:

  • Stocks and stock options
  • Complex investment portfolios
  • Vacation homes
  • Income properties
  • Delayed compensation, such as 401(k) plans, pension plans, stock plans, restricted stock units (RSUs)
  • Businesses

One of the first steps in the asset distribution process involves creating an inventory of all assets, both separate and marital. For items without clear value, such as artwork or jewelry, seek asset valuation to determine their worth. 

Understanding Pennsylvania’s Equitable Distribution Policy 

Pennsylvania, along with 41 other states, follows an equitable distribution policy for divorce. Rather than splitting assets exactly down the middle, the court attempts to divide marital assets in a method that would be reasonably fair. Many factors may impact how the court decides to divide your property, such as:

  • The length of the marriage
  • The age and overall health of both spouses
  • Any prenuptial agreements
  • Previous marriages
  • Child custody arrangements
  • The amount of marital and non-marital assets
  • The amount of debts 

Pennsylvania’s Marital Property Classification 

In Pennsylvania, all property acquired by either spouse during the marriage is considered marital property and subject to equitable distribution. Marital property also includes any increase in the value of non-marital property. 

Non-marital property includes assets acquired before the marriage and property excluded through a valid agreement of both parties. 

Avoiding Pitfalls in a High Assets Divorce

Be aware of a few potential pitfalls within your high assets divorce. 

First, you may face tax implications if you do not split assets according to equitable distribution procedures. These might include:

  • Capital gains taxes
  • Gift taxes
  • Penalties from early retirement account withdrawals

Financial professional involvement is key to reducing your tax burden when transferring assets. This is especially important for high-net-worth divorces involving complex assets and problems like business ownership division. 

Additionally, be wary of your spouse potentially hiding money or assets during the divorce process. Assets can easily become lost or overlooked in high-net-worth divorces. Do your due diligence to thoroughly inventory all property, accounts, and other assets, and alert your attorney if you think your spouse is hiding assets. 

Consult Karen Ann Ulmer, P.C., for High Assets Divorce

If you need help effectively navigating a high assets divorce in Pennsylvania, Karen Ann Ulmer, P.C., is here for you. Our compassionate, knowledgeable attorneys have helped countless high-net-worth clients protect their assets and avoid financial complications during divorce. 

Contact us today at (866) 311-6082 to schedule a confidential consultation. 

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Filing Taxes After a Divorce

Going through a divorce is stressful for so many reasons. From figuring out how to divide marital assets to coming up with child custody agreements, divorcing couples face their fair share of stressors.

The stress doesn’t end once a divorce is final, either. Filing taxes after a divorce can create a new wave of stress and make you wonder, “Is this ever going to end?”

Discover more about this process to minimize your stress levels.

Choosing the Right Filing Status

When filing taxes after a divorce, one of the first things you must do is select your filing status. It can throw you for a loop immediately.

If you have finalized a divorce, you might automatically assume you should file taxes as a single person or a head of household if you qualify. However, this is only sometimes the case.

Your filing status on the last day of the previous year determines your status. So, if you were still legally married on December 31 of last year, you’ll have to set your filing status as:

  • Married filing jointly
  • Married filing separately

You might also be able to file as a head of household if you meet specific requirements.

Ideally, you and your ex-spouse should have a plan for filing taxes following your divorce if you must file them together. Include this plan in your divorce agreement to avoid miscommunications.

You should also remember to use the Internal Revenue Service’s Tax Withholding Estimator to change the amount of money you withhold from your paychecks to cover taxes. This will account for taxable income adjustments when filing taxes after a divorce.

Claiming Dependents Properly

When you and your former partner were married, you could both claim the children you share as dependents. Once you’re divorced, this isn’t an option.

In your divorce agreement, you and your ex hopefully decided who is going to claim each child for tax purposes. Sometimes the parent who has primary custody of the children will claim them as dependents, giving them access to the Child Tax Credit. In other instances, parents create complicated schedules that switch year to year, or sometimes, in cases of multiple children, each parent claims a child (or two). Whatever you decide, you must follow your agreements.  

In some rare instances, divorced parents might qualify for dependency exemptions that allow them both to claim children when filing taxes. Speak with a tax professional if this is a possibility.

Taking Other Factors Into Account

A couple will go their separate ways at the end of a divorce, but before doing so, they will divide their marital assets and iron out issues like child support and alimony. One spouse might also be required to provide a portion of their retirement plan balance to the other spouse under a qualified domestic relations order (QDRO).

In these cases, child support and alimony tax implications are usually present. Property division taxation issues might also pop up. Those who receive payments under a QDRO might also face substantial tax bills.

Enlist the services of a reputable divorce attorney to help you make sense of a stressful situation.

Still Confused About Filing Taxes After a Divorce? Give Us a Call

Filing taxes after a divorce might make you relive the stress of separating from your ex-spouse. If you have questions about proceeding, don’t hesitate to call Karen Ann Ulmer, P.C., for assistance.

Contact us at (866) 311-6082 today.

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Prenups and Alimony: What You Need To Know

More Americans are open to signing prenuptial agreements than ever before.

A 2023 Harris Poll revealed a surprising statistic: About half of adults would consider signing prenups if their partners asked.

Will you and your soon-to-be spouse sign one? Before you enter into an agreement, learn about some key factors pertaining to prenups and alimony here.

Featuring Alimony Provisions in Prenups

Technically, couples on the verge of marriage don’t have to include alimony provisions in their prenups. They can sign spousal support waivers that rule out the possibility of alimony if the couple divorces.

However, it is almost always a bad idea to do this. Even if you’re in a fantastic financial position right now, you can never know whether that will still be the case in the future.

You might decide to quit a well-paying job to become a stay-at-home parent. Or, your spouse may work their way up the ranks to become the CEO in a decade.

In these cases, you and/or your spouse might wish you had created a prenup that included alimony. Do it from the beginning to avoid regretting not doing it later.

Considering the Right Factors When Including Alimony Provisions in Prenups

Couples should not simply include standard alimony provisions in prenups. They should put serious thought into prenups and alimony and generate provisions customized for their relationships.

As you and your significant other put together a prenup, keep these factors in mind:

  • Your income and any income disparity that exists
  • Your current lifestyle, as well as any lifestyle changes you may see on the horizon
  • Your state law requirements regarding prenups

A prenup isn’t designed to put either spouse in poverty in the event of a divorce. Instead, it’s a tool couples can use to ensure they’re both still able to meet their financial obligations if they choose to go their separate ways.

Ensuring Prenups and Alimony Provisions Are Enforceable

Prenuptial agreement enforceability is another factor that should weigh heavily on your mind when creating a prenup. Make sure you create a legally binding document with assistance from an attorney with extensive experience developing prenups.

This lawyer can help cover all your bases while creating a prenup with alimony provisions. They can also explain other aspects outside of alimony provisions, such as marital property rights.

Contact Our Law Firm To Begin Piecing Together a Prenuptial Agreement

At Karen Ann Ulmer, P.C., we firmly believe prenups and alimony should go hand in hand. If you’re planning a wedding and open to piecing together a prenup, we would love to help you do it.

We can make the premarital agreement process more manageable and ensure your prenup is enforceable should you need to rely on it in divorce court. We can also clarify any confusion about prenups by discussing their purpose further and addressing pressing questions and concerns.

Call us at (866) 311-6082 today to speak with a trusted attorney.

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