

What can we learn from celebrity break-ups, billionaire settlements, straying husbands, downright daunting divorce laws, or scandalous politicians? PLENTY! Meet our contributing writers and professional advisors who are tickled pink to ponder all of the news, views, gossip and buzz that we love to hear!

Christina Rowe opted for her ex-husband’s share in their house instead of alimony after he spent a month in jail for skipping child support. Rowe figures that, over time, the move saved her about $20,000 in taxes.
Tax tips aren’t thrown around a lot during divorces, when emotional grenades are more likely to be tossed. But estranged spouses can save a lot by working together calmly on alimony, the sale of the house, income-tax filing status and timing of the divorce.
“Smart people say ‘I hate you, but I hate the Internal Revenue Service more,’ ” says Diana L. Mercer, an attorney and divorce mediator at Peace Talks Mediation Services in Playa del Ray, Calif., and co-author of the book Your Divorce Advisor.
Every divorce is different, so ignore anything that seems like blanket tax advice. It’s important to consult a good advisor, perhaps a lawyer or CPA, for the best approach.
In the case of Rowe, the trade-off between alimony and the house worked out. She would have had to pay tax on alimony because it is considered taxable income, but she didn't owe anything on the share of the house because property can be transferred tax-free in a divorce settlement. What saved taxes in her circumstances might not apply to others, however.
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Chances are you’ve read about people trapped in unhappy marriages
because they couldn’t sell their home, or couples whose lifestyles took
a nosedive when they divorced.
Well, this weekend The New York Times ran an interesting story about real estate facilitating divorce!
For a number of years, Michele Kleier, a realtor on the Upper East Side
of Manhattan, had a client who called her regularly to check on the
price she could list her 9-room co-op for.
When the market was at its peak, the woman planned to divorce her husband, sell the apartment and live on her share of the profits.
This client
went through with her plan, and now lives in a California condo, where
she raves about the weather and revels in the distance she put between
herself and her ex. “The real estate market allowed her to buy her
freedom,” says Kleier.
Brokers and attorneys alike agree that the red-hot New York City real
estate market has opened up a world of possibilities for unhappy
couples. Up until 2006, it wasn’t that unusual to see home prices rise
20 or 30 percent a year, and though appreciation has slowed down, sales
and market value haven’t. The price of the average Manhattan apartment
this summer was $1.3 million. And the $3 million apartment is now the
$7 million apartment. Half of that is a lot.
Gary Becker, an economist at the University of Chicago, has studied
survey data and concludes that any couple who see a drastic rise (or
drop) in net worth is at risk of divorce.