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Attorney's and Accountant Fees Incurred in Divorce Proceedings: Consumer Debt?
Posted: Mon Nov 07, 2011 9:16 am
by Yahoo Bot
I have a discharged ch7 case where the divorce attorney for ex-W keeps on writing that his pre-petition fees that the court had ordered the former H (my client) to pay was not discharged. My understanding is that unless the court order was a part of spousal support the fee is dischargeable, and has been discharged as the attorney has not filed adv. case. Will any one give me more definite answer?
The post was migrated from Yahoo.
Attorney's and Accountant Fees Incurred in Divorce Proceedings: Consumer Debt?
Posted: Sat Nov 05, 2011 3:04 pm
by Yahoo Bot
The Code defines consumer debt as debts incurred by an individual primarily
for a personal, family, or household purpose. There is nothing quite as
personal a nasty divorce and it has everything to do with family and
household. Even if the battle was over characterization of business assets,
it doesn't smell like, walk like or talk like anything but personal.
BTW and rhetorically: in retrospect, does she think she got her monies
worth?
If you have any questions or concerns please contact me.
Pat
Patrick T. Green
Attorney at Law
1010 E. Union St. Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
Email:
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
Attorney's and Accountant Fees Incurred in Divorce Proceedings: Consumer Debt?
Posted: Sat Nov 05, 2011 12:47 am
by Yahoo Bot
I don't know if there is a hard and fast prior case on this, but given how creative some people are in terms of the means test, if there is no absolute case on this I'd start by looking at tax deductibility.
In general legal expenses for divorce are non-deductible (Reg sec. 1.262-1(b)(7)) except for two areas:
(1)divorce and tax research and advice relating to a divorce and property settlement given to the client taxpayer/debtor, and
(2) legal fees attributable to production, or collection of taxable alimony.(Reg sec. 1.262-1)
An analysis of the billing needs to be done to characterize an allocation.
After that, you still have the other debts to add up and balance.
If there is a hard overriding case on divorce expenditure causing it to be lumped together I would like to learn of it.
Curt Harrington
http://patentax.com
ote:
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> PC owes $475,000 to her Family law counsel and the cpas relating to her divorce. Consumer debt regarding the Means Test?
>
The post was migrated from Yahoo.
Attorney's and Accountant Fees Incurred in Divorce Proceedings: Consumer Debt?
Posted: Thu Nov 03, 2011 5:16 pm
by Yahoo Bot
PC owes $475,000 to her Family law counsel and the cpas relating to her divorce. Consumer debt regarding the Means Test?
The post was migrated from Yahoo.