Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, August 28, 1995 TAG: 9508280115
SECTION: MONEY PAGE: 6 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
We have bank CDs, IRAs and retirement accounts with each other's names on everything. Just last night I realized he has removed money from the bank, taken it to another bank, opened a lock box, put all the money in his name and not told me. I found this out through my bank statement.
I'm scared to death. What about my rights? My health is fair to poor, and I have one-quarter the earning power that he has. However, he is back home and trying to make a go of our marriage, of course with the other woman wanting him to come on and join her.
A: If your husband has been moving money into his name by stealth, time is not on your side.
Cheryl W. Smith, a domestic relations law specialist with the Roanoke law firm of Mundy, Rogers & Frith, said you must face the basic decision of whether you want a divorce.
If your husband is trying to make a go of the marriage, she suggested that both of you see a marriage counselor. One of the stipulations for reconciliation should be that your husband return the money to your joint accounts.
You should definitely save the last bank statement, along with the prior statement, to show that your husband has secretly moved money out of your joint accounts. Secure these records, perhaps in a bank lock box.
Smith said you should see a lawyer quickly if your husband refuses to move the money back to the joint account. If you let your husband continue to move assets without taking action to stop it, she warned, you may never see the money again.
If you decide on a divorce, Smith said, your lawyer should obtain an injunction to prevent your husband from stealing your joint assets. This should be done quickly.
Virginia is not a so-called "title" state where the money belongs to the person in whose name it is held, Smith said. Your danger is, rather, that your husband could hide the money, then claim such assets do not (or no longer) exist.
A court would decide how the marital assets would be split. Smith said the court would take into consideration the fact that you have worked throughout the marriage. The judge would also look at such in-kind contributions as your sewing, canning and other housework that was of financial benefit to the marriage.
The court would also weigh the evidence of your husband's deceit in moving the marital assets to his own name. The long length of your marriage would be taken into consideration as well, along with the fact that you helped to put him through school.
You are also entitled to a share of your husband's retirement money - as he is entitled to a share of yours. Presumably, however, your husband has the higher retirement package.
The decision about whether you want a divorce is entirely up to you and does not concern money. But, from a financial point of view, you cannot allow your husband to take and hide the assets earned during your marriage without taking action. This should be done whether through reconciliation or a divorce.
Q: I am a 37-year-old single male. My salary is $13,500 per year. I work with a girl, age 25, who is married. We have the same wages.
Her taxes allow her to take home $40 more per week than I do. This is $2,080 more per year. Her husband makes an estimated $16,500 a year. They get an estimated $2,100 back in refunds while I got only $458.
Why do all taxes favor married couples and nothing for singles? They had kids by choice. Why are we singles discriminated against?
A: As a general proposition, the so-called marriage penalty actually discriminates against couples. A husband and wife who each earn about the same amount of money generally pay more in taxes because more of their joint income falls into a higher bracket. If one partner earns a great deal more than the other, however, they benefit from this division of the higher income. In some cases, a single individual would pay more.
In your case, as you point out, your co-worker and her husband have two children. This means that four people are living from the income, so they have more tax exemptions. A single parent would get the same number of exemptions if he or she had children to support.
Taxes are also highly individual. You have no way of knowing whether she tithes for her church or otherwise qualifies for deductions. Perhaps her medical bills are higher than yours are. You have no way of judging her tax return.
by CNB