Robert A. Bonavito, CPA PC

RABCPA PC Blog

Case Information statement (CIS)

Case Information statement (CIS), New Jersey is an equitable division state Sometimes when we’re working on a divorce engagement, we seem to forget that this is only one part of a complex divorce. Of course, the finances for child support, alimony, business valuations and investment are an extremely large and complex area of divorce. But there’s more important things that attorneys are dealing with. For example, child custody, physical abuse in the household, lots of psychological issues. A lot of times psychologist are brought in and/or job specialist to evaluate the partner’s employability and also their psychological issues. All this stuff is really emotionally draining and cause a lot of problems. And we are usually not involved in any of that aspect of the divorce. The importance of the CIS statement cannot be overstated. Many times, when I’m in divorce engagements these documents are updated biweekly. This is the one of the things you really need to understand. Let’s go through a case information statement. Typically, attorney once a client comes in for consultation, they will be given a CIS statement and asked them to fill it out as best as possible. Utilize quicken and quick books to compile information We look at the CIS as financial stmt for the family, Balance sheet, Income Statement and Cashflow statement, they all need to balance

Posted November 7, 2019 by Robert A Bonavito in Matrimonial & Divorce

Divorce from the standpoint of The NJ Forensic Accountant

One of the things about dealing with matrimonial engagements is it’s important to understand the number of marriages, number divorce and number of divorce attorneys. If we look at the number of marriages based on the most recently available statistics, 48,000 marriages about half of those end up in divorce 23,000; but the number of attorneys is 41,000. So obviously there are plenty of attorneys to help with divorces. But the way it is calculated is its per 1000 people. Basically, for every thousand people in New Jersey about 4.8 get married in any given year and about 2.3 get divorced per thousand. And actually, the rate of divorce New Jersey’s lower than most other states and declining. But just remember sometimes the divorce engagement can last for one hour sometimes a divorce engagement can last for decades. It all depends on the complexity of the issues Why are divorces declining in NJ? Lowest marriage and divorce rate, horrendous cost of divorce, financially and emotionally 1/4 the size of Canada, bigger than half the countries in Europe, NJ population is still growing close to 9 million New Jersey Tax Guide on Divorce which is helpful because sometimes the laws change in New Jersey as far as how alimony, sale of house, responsibility for interest income and other investment income Name changes etc. is handled. New Jersey does not recognize innocent spouse or injured spouse relief The Internal Revenue Publication 504, which is excellent, and you should take a look and understand that as far as the tax credits, this addresses same-sex marriage filing jointly and separately head of household’s requirements custodial parents’ noncustodial parents. One thing that’s one thing that attorneys understand is how custodial parent works. By filling out this form it can allow one of the parties to qualify for the $2,000 tax credit per child. This form however does not need to head of household or earned income credit etc. But this could be very helpful to your attorney if this is filed properly. Alimony requirements, you have to meet the requirements in order to be deductible for pre-2018 divorce agreements. QDRO, qualified domestic relations order you want to get a good understanding in the layman’s terms of how a divorce works the Legal Services Of New Jersey has an excellent guide, this guide takes you through every aspect of divorce the filing complaint, legal procedures, case management conference etc. financial aspects of the divorce etc. and also utilize New Jersey courts.gov website overview of the divorce process types of custody for children written for the lay person form 8332, Revocation of Release of claim custodial parent Some rules Non-custodial parent is not entitled to head of house, earned income credit, based on regs if custodial parent violates the agreement noncustodial parent must go to the court for remedy not the IRS $2,000 tax credit Easily revoked

Posted October 25, 2019 by Robert A Bonavito in Matrimonial & Divorce

Divorce from the standpoint of The NJ Forensic Accountant

I’ve been working on matrimonial engagements for over 30 years and have handled thousands of cases Best practices tip for matrimonial engagements’ (Certified in Financial Forensics) Subject expert, designed and question writer and reviewer; CSO, content Specific Outline, discovery, Laws and courts, expert testimony Family Law) verified by Psychometrician That’s one reason I depicted the opening side with the battle of Balaclava, where the British Light Brigade was ordered to advance even though heavy canon was locating on both sides of the valley. Often in matrimonial engagements you are requested by attorneys and/or clients to handle incredibly complex task in very short time and then be confronted with depositions and trial testimony. Just like the light brigade we are often outgunned and outmanned, and sometimes are own attorneys and clients contribute to the confusion. I plan on giving you some pointers at least so you understand the basics. when you perform matrimonial engagements, I want you to remember Lord Tennyson’s poem In baseball you bat 300 you make it to the hall of fame; in matrimonial engagements you need to bat over 980.  

Posted October 17, 2019 by Robert A Bonavito in Matrimonial & Divorce