Marriage

Only one day a year mattersCommon law marriage?Separated?

Marriage Penalty Standard deduction: no penalty Tax rates: penalty: top brackets not twice

as wide Dependent exemptions: penalty: phase

out not twice as high Child tax credit: penalty: phase out not

twice as high Itemized deductions: penalty: phase out

not twice as high

Marriage Penalty

Brittany Tears / FIN 3300 student Britany Tears / Tony Nogo

Married Filing Seperate

Generally tax much higher Avoid joint liability Innocent spouse

Divorce Property division

Not taxable Marital property Separate property

Prior to marriage – pre-nup? Gifts Inheritance

Alimony Can’t pay larger amounts in initial years Must end after death of payee

Life insurance on payor??? Child support

Typically will end when a child reaches a certain age College expenses?

Divorce Home

Keep it? Or not? Property taxes???

Qualify for exclusion? Retirement plans – remember to change

beneficiaries!!! QDRO

Defined benefit Valuation

Defined contribution