How does the software show compounding of reinvested income?
The way the software shows compounding of reinvested income is as follows: At the end of the year, any positive after-tax cash (the last column on the Net After-Tax Cash Flow Spreadsheet) is moved into an account called the “Accumulated Savings” account. Our goal with this Accumulated Savings account is to mimic the performance of […]
How do I change the first year (current year) for child support calculations, cash flow, taxes, etc.?
In the Cloud, click the Settings tab > Assumptions, and change the Start Year. In the desktop software, click Files & Settings > Assumptions, and change the Start Year.
How do I handle reimbursement from marital property for payment by one party of the other party’s separate debt?
Just specify that the debt is a separate debt of the Party A, and that Party B will pay it, and then reach a 50/50 division in the Property Division worksheet as you normally would. Let’s explore how this works. To clarify, this is a situation where the Party B is paying Party A’s separate […]
How do I handle reimbursement from marital property for the expenditure of separate assets for marital purposes (Epstein credits)?
This covers the situation where a party has spent separate funds for marital purposes. And now that party is being reimbursed from the marital assets for that expenditure. This can happen if, for example, post-separation income is used to pay marital debts. In California, this reimbursement is known as “Epstein Credits.” If the property division […]
How do I handle reimbursement from marital property for the expenditure of marital assets for separate purposes?
This is the situation where a party has spent marital funds for separate purposes. The classic example involves a spouse who spends money on a party outside the marriage. The other spouse wants to be reimbursed for that expenditure. If the marital property division is 50/50, the amount to be reimbursed is half of the […]
How can I enter deferred compensation?
With respect to deferred compensation, you have two choices: 1. Income only. Enter deferred compensation on the screen where you enter income, on the Deferred Compensation line. If you wish, you may click “more info,” and override the amounts in the specific payout dates at the bottom of the screen with the payouts anticipated to […]
How do I enter a business buyout note?
Here are the steps to take to enter a business buyout, where assets or income of the business itself are being used to buy out a party: 1. On the “more info” screen for the business, scroll down to the section on business buy-out. There are two yes/no questions. The first question asks if there […]
How can I change the order (sequence) in which assets are listed?
You can change the sequence in which assets and debts are listed. If there is more than one item in an asset group, then, next to the name of the group, you will see a button, as illustrated below: Click that button, and a dialog box will pop up that allows you to change the […]
How do I specify self-employment income?
1. Wage Income If you click the “self-employment” box for Wage income, that specifies that Wages are “self-employment income.” In that case, we will automatically calculate the Self-Employment Tax instead of the employee Social Security and Medicare taxes. The Self-Employment Tax appears as a line item in the calculation of Federal Taxes. You can see […]
How can I change the state where a party lives?
This is in the Enter Data section on the Parties & Children screen. Open the section for the party, and you will see the entry for the state where the party lives.