How can I enter data from a K-1?
There are partnership K-1s (Form 1165) which are different than S Corporation K-1s (Form 1120). In both cases, typically, the most important numbers are on lines 1-3. You can enter ordinary income and guaranteed payments as Business income, and specify the type of business as partnership or S Corp as appropriate. You can enter rental […]
Is it possible to set an assumption that all net cash flow is spent rather than saved and invested?
We understand the motivation for this — a spendthrift spouse will spend all available cash in ways that cannot be forseen — but it is not possible to do that in the software. In a way, such an option would defeat the purpose of the software, which is to show where the parties will be […]
A third party (such as a grandparent) has custody of the child. How can I calculate the child support that each of the two parents owes to the third party?
We are not aware of any state in which there is a formula for this. One approach would be the following: 1. Enter the parent parties’ incomes and the children. 2. Set custody with the first party, with the actual # of overnights that the 2nd party has assigned to 2nd party. 3. This would […]
How should I enter restricted vs unrestricted stock options?
A stock option is a right in which the company gives the employee the right to buy a number of shares of the company’s stock, usually at the current price. Let’s say the price when the option is issued is $100 a share. If the stock price goes up by $10, say, the employee has […]
How do I show a retirement from a business, or sale of a business?
Go to the “more info” screen for the business. You will see a question about whether the business owner will retire or the business will be sold. the question is worded this way so it can cover both retirement and sale. This is where you enter a sale or retirement date. If the business has […]
Why are state taxes different for itemized deductions than for “actual” state taxes?
This is due to the software’s resolving of a bit of circular logic. Federal taxable income depends on the state tax, because state tax is an itemized deduction. But in some states, state tax depends on federal taxable income. So the computation is circular. Here’s how the software resolves this: For the calculation of the […]
I am going to be called as an expert witness. Is the software accepted in my court?
Family Law Software is the #1 selling financial software for divorce nationwide. It is used by more attorneys to calculate child support and prepare financial forms than any other software. It is also used by virtually every actively-practicing financial planner specializing in divorce nationwide. It is the only software endorsed by the non-profit Association of […]
How can I create different scenarios in the software?
You can use any of three approaches, depending on the nature of the differences among the scenarios. The paragraphs below discuss each of these three approaches. 1. Key Decision Factors. Are you interested in comparing different scenarios for the following key decision factors: child support, spousal support, key expense items, tax exemptions, filing status, or […]
How can I implement a spousal support lump sum payment in Family Law Software?
You can follow these steps to implement the alimony present value (lump sum) in a software scenario. 1. Save As. Save the file under a new name for this scenario. (In File Manager, click the 3-dots menu for the file and select the option to make a copy.) 2. Find the lump sum (present value) […]
How do I enter itemized deductions?
There is no separate grouping for Itemized Deductions. They are simply entered among the Living Expenses. When you enter property taxes, charitable contributions, etc., the software knows they are itemized deductions and treats them accordingly.