We had 2.5 hours of mediation with both of our attorney's. I struggle to use the written word to explain how full of rage I am. It was 2.5 hours of me taking questions about my business. Her attorney, as expected, is going to go for way more than is reasonable - presumably with a hope of landing in the middle.
So here are some of the things I learned. If my business is worth $2mm - that is the value for the divorce. So I give my STBXW $1mm and then I own the entire business. If I sell the business then I owe $600k of taxes on the value - the court system does not take that embedded tax into account when they do the valuation. So effectively my wife gets $1mm and I get the tax, leaving me with $400k. Let me just say that is not fair.
AND If that weren't enough, her attorney is saying that my entire income is subject to support. So let's say I make $500k per year but I could pay someone $150k per year to do my job and the other $350k is profit.
The typical assumption would be that if I bought the business (see above) the the profit would not be subject to spousal support, because I bought it. Well, they are trying to say that I would need to pay support on the entire $500k. AND of course, alimony can no longer be written off.
And of course this does not account for all the other assets that are also getting cut in half.
I'll give it some time before I decide to do anything dramatic, but a scorched earth policy is beginning to feel appropriate.
Sell it, and look for new work.
It would save me several hundred thousand in capital gains taxes, it would drop me several tax brackets, and it would create a situation where I would owe no support. Net of all of it, I would end up in the same spot with arguably diminished future income potential; but I could figure that out.
Maybe I start another business once this is behind me.
I tried to warn you. But I am so happy you have an attorney. So many LBSs get sucked into the "let's keep this amicable" delusion.
Sorry man, I know this isn't what you wanted to hear. I think it stinks that she decides to walk AND is entitled to half + support. But welcome to the "no fault" divorce racket. Not sure who ever thought that was a good idea. But I digress.
Last edited by Steve85; 02/03/2108:57 PM.
M(53), W(54),D(19) M-23, T-25 Bomb Drop - Dec.23, 2017 Ring and Piecing since March 2018
