Marriage  Only one day a year matters  Common 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