Don't Forget the Tax Refund!

As family law attorneys, we often think of income taxes as a means to review income and available assets as we go through the case. It is only at this time of year where, for most (if not all) of our clients, we also need to think about the potential income tax return and refund.

It is important to note that if you are in a contested divorce situation, then your attorney should at least consider asking the court for a restraining order with regard to spending the 2011 refund. Specific options include restraining the parties from cashing the refund until further order of the court, or perhaps more commonly, asking the court to order that the funds be deposited into an "escrow account" so that those funds are not spent without an agreement of the parties or by further court order. A restraining order can also be useful in child support cases that have not been running through the Child Support System. (Those child support cases which are running through the system should be intercepted if someone owes money to the custodial parent automatically.)

Parties can be tempted to file together without speaking to their attorney because the case is in the early stages, there aren't any issues yet, or the promise of "quick cash" is alluring. However, doing so could be a mistake for tax reasons, as well as the fact that the funds could be easily deposited into a joint account, and then removed by one party. It is much easier to "hold" the funds, than it is to "chase" the funds.

If you have questions about your income tax refund and you are in the process of a divorce, contact your attorney and ask the question. If you are thinking about a divorce and are not sure what to do, call us at 401-841-5700 or go to www.CounselFirst.com.


***WE DO NOT GIVE TAX ADVICE, BUT WE CAN POINT OUT POTENTIAL PITFULLS AND NOTIFY YOU OF THE ISSUES SO YOU CAN ASK YOUR TAX EXPERT THE CORRECT QUESTIONS.***

Affordable Medical Membership Plan

I received this article as part of a monthly newsletter this week, and I thought it could be useful to our clients and friends. The contact person is Robin at Robin G Smith Consulting. Call her at 888-363-3914 or go to her website at is www.robingsmith.com for more information, or call us!

As 2012 begins, many people will find themselves with new health benefits and higher deductibles, or, increasingly, with no health insurance at all, particularly in the 50—64 year old age category. Additionally, the latest focus of healthcare reform has become prevention, or wellness, vs “sickness” care. Companies are struggling to find solutions to health cost inflation, and new paradigms are emerging that feature “worksite” clinics, and direct, affordable pre-paid primary care (another story here). I offer one such program, Medical Membership Plans (MMP).

A MMP is a prepaid primary care plan for companies and individuals ($84/month individual, $99/family), where care is delivered by a national network of urgent care centers. There are no co-pays, no deductibles, no pre-existing conditions, and care generally includes all services that can be delivered at the urgent care center (x-rays, injections, labs, etc.) This plan is open to all, and is a membership plan, not health insurance. Many clinics are available, al?though, geographically, some areas are better covered than others— e.g. Worcester and Boston area, MA, great, Cape Cod, not so good. RI has many clinics available, and CT has good coverage in the urban areas. Call me (Robin) for more information, or a list of participating providers in your area. The MMP model may help drive down health costs.

Unemployment Benefits Until March

The Temporary Payroll Tax Cut Continuation Act of 2011 was passed this month by Congress, and the Emergency federal benefits for the unemployed, which were scheduled to expire on December 31, were extended for two months.

The legislation will need to be revisited by March, but for those of you who received a notice and expected your benefits to end as of January 1, 2012, you now have a bit of a chance to re-group in the event the checks will stop coming as of March 1, 2012.