Creative customizable stable income solutions to help bridge financial gaps in divorce settlements and to secure payment of spousal and child support payments
Black Voices carries the dissipation story of Eddie Murphy's ex wife Nicole who has allegedly blown through close to $15 million in 4 years having elected a lump sum payout in lieu of monthly alimony payments.
The tale of the tape:
Invested in an Internet jewelry business, a venture that qucikly spiralled downward.
5 IRS tax liens totaling almost $850,000
Owed to a legal firm $600,000
Owed on Los Angeles area home $5,000,000
Up for sale Calabasas, CA home $7,000,000 estimated value.
Anyone can make bad investments, but dissipation always seems more wasteful when a celebrity or some associated with a celebrity drains assets, in part because usually bigger numbers involved.
In "Breaking Up Is Harder To Do", a story written by Patricia Hurtado and Laurel Brubaker Calkins appearing in the January 25, 2009 New York Post, Irene Georgakis found her husband "is balking at paying support and using the recession to claim poverty after making millions during the marriage".
The report states that math has to be redone when assets proved less than they counted on when they split up.
At a January 12, 2009 hearing in Stamford CT a former Bear Stearns executive who WAS making $1,000,000+ annually petitioned to cancel a court order increasing alimony to his ex wife from $25,000 to $87,000, including retroactive payments. The executive's lawyer stated he lost his fortune, the equity in Bear Streans and that he cannot suport his present family in any way.
Divorce lawyers and battling spouses may wish to consider another option when negotiating a divorce settlement...the Divorce Structured Settlement. The above case is a dramatic example of where a divorce structured settlement might have saved a lot of heartache. When the going is good the parties agree to a fixed stream of payments, the paying spouse pays a sum of money to a non qualified assignee which takes on the obligation to make the negotiated fixed payments and purchases an annuity to fund the obligation. Instead of a couple of million dollar him or her, you can rely on a $70B-150B it!
Worried about whether or not you (or your client, if are attorney) are going to receive child support payments? Now there IS a solution- a Divorce Structured Settlement for Child Support
Obligations for child support in a
divorce settlements can be assigned to Pruco Assignment Corporation as long as the Settlement Agreement
delineates the child support payments as specific periodic payments;
The payments for the child will not be tax
reported, however, the interest accrued on the annuity (purchased from Prudential Insurance Company of America) will be reported
annually. The interest can be reported to either the assignor (payor spouse) or
the payee, depending on the language in the Settlement Agreement.
-Pruco requires the following
documents for Divorce Structured Settlements – Child
Support assignments:
Non-Qualified Assignment and Release
(NQAR)
IRS W-9 for either the annuitant or the assignor,
depending on the language in the Settlement
Agreement.
Stable cash flow is important to payee spouses in divorce. Continually writing out checks by a paying spouse can also be a constant reminder of failure. A divorce non qualified structured settlement can be an alternative solution to these problems.
Did you know that obligations resulting from the
division of property in a divorce settlements can be assigned to Pruco Assignment Corporation once the
Settlement Agreement delineates an obligation to make periodic
payments?
The annual payments to the receiving spouse will not be
tax reported, however, the interest accrued on the annuity is reported
annually. The interest can be reported to either the assignor (payor spouse) or
the payee spouse, depending on the language in the Settlement Agreement.
The following
are documents needed for Divorce Settlements –
Division of Property non qualified assignments:
Non-qualified Assignment and Release
(NQA)
IRS W-9 for either the annuitant (payee spouse) or the assignor (payor spouse),
depending on the language in the Settlement
Agreement.
Application (submitted by 4structures.com, LLC)
Court approval of settlement
For further details call John Darer at 888-325-8640
I've heard countless stories of the payor ex spouse not paying the payee ex spouse and the extraordinary amount of aggravation, not to mention the extraordinary cost in time and money to all parties. There has to be a better way and I aim to find it. The application of periodic payment settlement vehicles in divorce has significant social merit and is relatively untapped. I have a number of topics in mind and will explore these issues in future posts and hope to bring in guest authors as well.
Jay J. Sangerman, PLLC A New York and Florida based AV rated estate planning law practice with an emphasis in Supplemental Needs Trusts, which assists attorneys in efficient case settlement though the use of Supplemental Needs Trusts and Special Needs Trusts; and Elder Law
Day Pitney LLP - People - Keith Bradoc Gallant Brad's practice includes traditional trust and estate planning and administration, special needs and disabilities planning, planning for same-sex couples and their families, planning for incapacity, and all types of probate litigation.
