After-Tax Property Division

As you know, a 50/50 division of assets may NOT be fair, because the after-tax picture can be very different. Family Law Software i...

Monday, May 4, 2020

New Update - Cares Act, Negotiate Tools, etc

CARES Act, New Negotiate Tools, and More.

We have released a software update with several improvements, including:
  • CARES Act tax and child support update.
  • Improved Negotiate tab and tools.
  • New "Alimony Needed" calculators.
  • Separate "Support to Use" and "Maintenance to Use" sections.
  • Improved Real Estate expense questions.
  • Pension table updated.

The Cloud software already has these updates.

Desktop users may update here:

Please forward this e-mail to everyone in your office who uses Family Law Software.

Cares Act Updates

In this release, we have made the following updates for the Coronavirus response legislation known as the CARES Act.

  • Rebate. We automatically calculate and apply the rebate that is coming to most Americans (typically $1,200 + $500 per child). You can see the calculated amount in the Wage-Like Income section.
  • Child support. In today's release, the CARES Act rebate is NOT counting as income for the calculation of child support. But we have made it easy to count it and see what support would be. In the "Wage-Like Income" section, there is a checkbox option to include or exclude the CARES Act rebate for child support purposes.
  • Required Minimum Distributions. For 2020, you will have the option to elect a $0 required minimum distribution from IRA/401k plans. You will find this option on the "more info" page for the plan, in the Distributions section.
  • Penalty-free Withdrawals. For current-year withdrawals, you may include CARES Act withdrawals in the write-in line at the bottom of the "more info" screen for current-year distributions that are penalty-free.

Improved Negotiate Tab

The Negotiate tab now has a different organization and fewer entries, thus making the most important ones easier to find.

Take a look at the new menu, shown below.

It is now organized by task -- What If, Spousal Maintenance, Property Division, Arrears -- rather than by source of income. It should now be faster and easier to find what you want.

if you have not used these tools, give them a try! They are now easier to use, and they can really help you in your practice.

New "Alimony Needed" Calculators

The old "Alimony Needed" page is gone, and there are now two new calculators in its place.

  • Balance Incomes
  • Recipient Income

"Balance Incomes" lets you see how much alimony you need in order to reach a 50/50 after-tax allocation of incomes. (You can also aim for 55/45 or any other combination.)

"Recipient income" lets you see how much alimony you need in order for the recipient to reach an after-tax income you specify.

The functionality is the same as it was before, but the pages have been redesigned to be clearer and easier to use.

"Support to Use" and "Maintenance to Use"

Until now, there was a single section at the bottom of the child support data entry screen where you would enter information for both child support and spousal maintenance to be used in the program's cash flow calculations.

Now, that single section has been broken out into two sections, for easy reference, as shown below (the image is from the Cloud version).

You will also see, at the bottom of the screen, new links to "what if" screens, to help you negotiate child support and maintenance.

Real Estate Questions

We have changed a few of the questions on the Real Estate "more info" screen, in the Real Estate Expenses section, to make them more clear.

Instead of just asking the percent being paid by Party A, we now offer a choice, as shown below:

Also, if this is rental real estate, the question where these expenses should flow is clarified, as shown below.

The real estate expenses you enter here may be considered as:

  • Associated with the Rental Property; or
  • Personal.

The checkboxes now make that more clear than it was before.

Pension Table Updated

We have updated the generational adjustment table of the RP-2014 table to use the Mortality Improvement Scale 2018.

Our observation is that pension values calculated using the RP-2014 table are now slightly lower than before.

Presumably, this reflects the widely-documented decline in life expectancy in recent years.

No comments:

Post a Comment