Employment Taxes and Stock Options
More than 2 years ago, the Internal Revenue Service published Revenue Ruling 2002-22, 2002-19 I.R.B. 849, in which it held that section 1041 of the Internal Revenue Code governed the transfer of stock options and interests in certain unfunded deferred compensation arrangements to the employee's spouse under a marital property settlement. As a result, the employee spouse was not taxable on the transfer. Instead, the spread on the options (the difference between the value of the employer 's stock at the time of exercise and the striking price) and the amount received as deferred compensation under unfunded arrangements were taxable to the nonemployee spouse in the same way and to the same extent as it would have been taxed to the employee. The ruling interpreted section 1041 to have established the rule that property transfers in divorce should be taxed as if the property conveyed were community property that had been transferred in settlement of the transferee's community property rights. As community property, stock options and interests in unfunded deferred compensation arrangements constituted "property" for section 1041 purposes, and the amounts received by the nonemployee spouse would be ordinary income to her (or him), taxable as compensation under IRC '83 and would be "wages" subject to employment taxes and withholding by the employer.
No Removal of Children Who Witness Abuse
New York's highest court, the Court of Appeals, recently issued a ground-breaking opinion, holding that a battered woman's failure to prevent her children from witnessing her own abuse does not automatically give protective agencies license to remove the child. <i>Nicholson v. Scoppetta</i>, 113, Oct. 26, 2004.
How To Empower Your Client
Most divorce clients initially feel "powerless" about the events of their lives and their potential divorce litigation. With some creativity, attorneys can encourage their clients to take affirmative steps from the onset, and permit them to feel proactive instead of reactive to the circumstances in which they find themselves. This initial interview with a client carries significant weight and sets the tone for the attorney-client relationship. Attorneys can impress a potential client with their experience in dealing with these issues and solidify the client's trust in their expertise. The creation of trust in the relationship must occur. To accomplish this goal, the attorney must listen to the potential client's facts. Depending on the circumstances, the attorney analyzes the information presented, counsels the client on what facts are important to prove the case and informs the individual how to obtain them. The "empowered client" now has a sense of direction and actually may uncover significant information that might resolve or alter the final result of the case.
Psychological Assessment: Evaluating the Evaluations
In an article scheduled for publication in the April, 2005 edition of the <i>Journal of Child Custody</i> (in press), Gould-Saltman, an experienced family law attorney, opines that attorneys like tests because they "break things down to numbers, and we understand numbers." She adds: "Tests give the sense [emphasis added] of objectivity to counterbalance the much more subjective clinical portion of a custody evaluation." In commenting on the MMPI-2 in particular, Gould-Saltman expresses the view that it is "probably the most well-liked test among lawyers because it offers 'hard numbers' rather than ephemeral concepts." If only it were this simple.
Litigation
Recent rulings of importance to you and your practice.
Leveraging Specialty Libraries
Like many firms, our law library collection and the prime real estate space it consumed at our offices in Chicago were realistic targets for cost-cutting consideration. The challenge for many law librarians has been to reduce costs while still ensuring their firms' attorneys and research staff have access to the right information they need when they need it.
Peachtree Software Review
Peachtree software has been on the market for more than 25 years, and while in recent times it has played second string to QuickBooks, it doesn't have to anymore. Since this product line was acquired by Best Software, the maker of Timeslips, Peachtree has been transformed from the ugly duckling to the beautiful swan.
Chronology Best Practices
A fact chronology can be a tremendous asset as you prepare a case for trial. Yet, the majority of chronologies fail to live up to their full potential. Here are some simple steps that will help you get the most out of yours.
Practice Tip: 'It's NOT Electronic Paper'
As the courts and clients struggle with the growing complexities of electronic information, the federal judiciary has begun exploring proposals aimed at addressing the challenges of electronic discovery. While several of the current federal proposals are still open for comment, it is worth taking a moment to consider the fundamental properties of electronic data and how conventional thoughts on evidence do or do not apply. As comforting as it would be to think of electronic evidence as just digital paper, the reality is that there are some inherent properties of electronic evidence that make it fundamentally different from conventional evidence.
Challenges And Adjustments In A Merger
There is a drama that is acted out every day on the stages of hundreds of law firms throughout the world. Firm A, which may have been a local, regional or even national firm, has recently merged into (read "acquired by") Firm B, a larger national or international firm, and the partners from Firm A are adjusting to being part of such a huge firm. <br>There are many pluses to becoming part of a much larger firm ' but there are also many differences and challenges. If the merger is to be successful, the partners in Firm A must anticipate the differences and challenges and Firm B must recognize them.
