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Interesting C/P BARF issues
Just had a consult that raised a lot of questions that I didn't have definite answers to, so I am going to run this by the group to see if anyone has thoughts. If this sounds like a bar exam question, I'm sorry, but this raises a lot of questions under BARF.
H&W separated (not legally, if that makes any difference) about 3 months ago. They've always maintained separate bank accounts, but incurred debts and purchased assets during their 10 year marriage.
W wants to file a Ch. 7.
Among the assets is a residence that is presently only in H's name due to a recent refinance, but W lives in the property with their 2 children. H continues to make the monthly mortgage payments, but that is his only contribution to W or the children. There is about $100,000 of equity in the property, after costs of sale, but before homestead exemptions or apportionment among the spouses.
Questions:
1. For means test purposes: Must the income H received during the portion of the past 6 months PRIOR to separation be included in the CMI?
2. For purposes of Ch. 7 liquidation: What amount of the equity in the real property is at risk? (or, to put it another way, what is the estate's interest in the RP)? Is it only 50% for the wife's interest (and I'm assuming for purposes of this that the fact she's not on title is of no effect) or is it still 100% and the husband would just get a 50% apportionment after sale and the $75,000 homestead exemption would be applied to W's portion)?
______________________
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency
___________
NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
Just had a consult that raised a lot of questions
that I didn't have definite answers to, so I am going to run this by the group
to see if anyone has thoughts. If this sounds like a bar exam question,
I'm sorry, but this raises a lot of questions under BARF.
H&W separated (not legally, if that makes any
difference) about 3 months ago. They've always maintained separate
bank accounts, but incurred debts and purchased assets during their 10 yearmarriage.
W wants to file a Ch. 7.
Among the assets is a residence that is presently
only in H's name due to a recent refinance, but W lives in the property with
their 2 children. H continues to make the monthly mortgage payments, but
that is his only contribution to W or the children. There is about
$100,000 of equity in the property, after costs of sale, but before homestead
exemptions or apportionment among the spouses.
Questions:
1. For means test purposes: Must the
income H received during the portion of the past 6 months PRIOR to separation be
included in the CMI?
2. For purposes of Ch. 7 liquidation:
What amount of the equity in the real property is at risk? (or, to put it
another way, what is the estate's interest in the RP)? Is it only 50% for
the wife's interest (and I'm assuming for purposes of this that the fact she's
not on title is of no effect) or is it still 100% and the husband would just get
a 50% apportionment after sale and the $75,000 homestead exemption would beapplied to W's portion)?
______________________Mark J. MarkusLaw
Office of Mark J. Markus11684 Ventura Blvd. PMB #403Studio City, CA91604-2652(818)509-1173 (818)509-1460 (fax)web: http://www.bklaw.com/This Firm is aQualified Federal Debt Relief Agency___________NOTICE: This Electronic
Message contains information from the law office of Mark J. Markus that may be
privileged. The information is intended for the use of the addresseeonly. If you are not the addressee, note that any disclosure, copy,
distribution or use of the contents of this message is prohibited.IRS
CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS,
we inform you that any U.S. tax advice contained in this communication (or in
any attachment) is not intended or written to be used, and cannot be used, for
the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii)
promoting, marketing or recommending to another party any transaction or
matter addressed in this communication (or in any attachment).
The post was migrated from Yahoo.