Category Archives: Blog posts

co-parenting check-in

Time for a co-parenting check-in

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Co-parenting? Midsummer is a great time for a co-parenting check-in.  Even while you and the kids are celebrating all the fun that summer brings, set aside a little time for keeping your co-parenting relationship running smoothly. This review is particularly critical if your child is moving to a new school or there are radical changes to the school schedule. Yet, even if all will remain much the same as last year, it is worth the time to touch base. This can also be an excellent time to review shared rules that evolve as a child grows older. When you talk together, you may find that your co-parent has changed circumstances and s/he may need some adjustments to the parenting plan.

Last minute surprises always put people in a bad mood. So do a little preventive maintenance for your co-parenting relationship.

Gather this information before you talk.

  • School and bus schedules
  • School holidays
  • List of sports and other activities
  • Significant new school events, such as graduations, prom, and other events both parents might want to take part in.
  • Review what worked well the past year and what problems you can prevent for the coming year.
  • Give some thought to rules changes if you have agreed to mutually enforced rules.

And don’t forget your personal schedule constraints.

  • Will there be a change in holiday plans this year such as a trip or visiting relatives that need schedule adjustments?
  • What about your work schedule? Are there times you know you will be out of town? Will it complicate the hand-off or maybe you’d like to offer extra time to the other parent?

What does your child know about the schedule that you don’t?

Your checklist is not complete until you sit down with your child and find out what they anticipate for the year.

  • Are there events not on the official schedule that they are looking forward to?
  • How about major parties?
  • What about activities? Do they want to drop an activity? Add one?

Do you need any help with getting an agreement for changes?

If your relationship with your ex or co-parent requires a more formal approach with an alteration to the parenting plan, David Jones and John Groseclose are happy to help you make those changes. They have a combined total of more than 40 years experience assisting parents to reach amicable agreements that work and going to court when necessary.

Share any other factors that co-parents need to consider before school begins in the comments below.

tax tips

2018 Tax Tips

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We’re Halfway Through 2018, Have You Adjusted Your Paycheck Withholding?

by Norman Short, Partner, GSJones Law Group, P.S.

For the majority of us who earn a paycheck, last year’s tax bill made significant changes. If you didn’t take the time to make necessary adjustments in February, now is a great time to adjust your withholding to conform to the 2018 tax regulations.

As you know, it’s best to apply the Goldilocks Principle to your withholding. If the government keeps too much of your money, you can’t invest that extra money throughout the year. On the other hand, not giving the government its due throughout the year could result in a nasty penalty. So, it’s best to withhold the amount from your check that is “just right.”

However, what is just right? To determine the answer ask your employer for both a copy of your old W-4 and a blank copy. Add the same information for your spouse. Then use the calculator created by IRS to determine the amount of over- or underpayment. Once you know that information, fill out a new W-4 with information that will result in a “just right” result at the end of 2018.

There were many changes to the tax code that affect people whose financial situations are more complicated. I’m always happy to do a 30-minute look at your tax situation for just $50. Call for an appointment to see if I can save you some trouble or some money. 360-876-9221.

Norman Short has 25 years experience helping individuals and businesses with your tax planning, pass-through income, back tax representation and other tax issues.

Meet Kimberly Hammit, our firm’s newest attorney

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Kim Hammit brings experience in business formation, estate planning, real estate law

Kimberly Hammit

“I am passionate about serving each client & love helping them overcome the challenges that bring them to see a lawyer.”

We are proud to welcome Kimberly Hammit to our firm. She comes to us from a solo practice in Port Orchard where she served small businesses and individuals in estate planning, business formation, and real estate law.

In addition, she looks forward to working with our personal injury and employment attorneys to add those foci to her practice.

Kim is a bit of a maverick. Instead of law school, she chose to study through the WSBA (Washington State Bar Association) APR 6 Law Clerk program. It is based on the venerable practice of reading for the law which predates law schools by centuries. She combined working as a law clerk and intern with studying on her own and with a tutor the same courses offered in law schools. The requirements included reading 12,000 pages of casebooks and 48 monthly exams, all overseen by the state bar association. She took the same bar exam as law school graduates.

She was admitted to the Washington State Bar in 2013.  Using the skills she gained as a law clerk, she opened her own law firm that same year.

Kim loves challenges, maintaining high integrity and a sustainable lifestyle

Kim Hammit, Legal challenges“I decided to join forces with GSJones,” Kim said, “in order to devote more time to practicing law as opposed to managing a law firm and to further develop my skills with a highly-regarded and well-rounded practice.”

Kim, her husband, and three children enjoy the Peninsula outdoor lifestyle—camping, boating and gardening. Avid DIYers, Kim and her husband enjoy teaching sustainable living skills to their three children. The family raises livestock, gardens, hunts and fishes together. And most exciting of all, they are restoring a 1965 Chevy Bel Air. They love to tackle anything they can with their own hands, no matter how great the challenge.

 

 

Attorney-client privilege: Is everything I tell my lawyer secret?

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With the FBI raid on a high profile attorney in the news, you may wonder about your own attorney-client privilege.

attorney-client privilegeIs everything you share with your lawyer secret? Could she tell your family something she thinks they need to know about you? Could he be forced to testify against you or turn over your records to the authorities?

Almost always the answer is no. Laws and ethical rules protect the secrecy of your dealings with your lawyer. And, it’s very important to take advantage of those attorney-client protections to tell your attorney everything they need to know to represent you. There is nothing that will hurt your case more than allowing your attorney to be blindsided in court or negotiations by something you were too embarrassed to tell him.

And yet, sometimes the answer is yes. There are exceptions to the rule that your attorney cannot be forced to give testimony against you or cooperate with authorities.

Crime-fraud exception

You cannot expect secrecy when you consult an attorney with the intention of committing or covering up a crime or a fraud. For instance, sharing plans to take your children in contravention of a court order would lose the protection of secrecy.

Other exceptions

There are a few other situations that keep your conversation and documents from being protected. As an example, you aren’t protected if you walk up to a lawyer at a party and tell her about your case. First, talking with a lawyer with others present takes away the right to secrecy. Secondly, casual conversations are not legal consultations. Both the client and the lawyer must agree that they are in relationship.

Another example of communications that are not privileged would occur if you were consulting Norm Short about starting a new business. The discussion of the various options for business structures is privileged. The privilege ends, however, at the point where you start discussing practical tips that he’s learned over his more than two decades working with businesses. You are no longer discussing the law and its application to your business.

Ask your lawyer, if you have any question about whether a topic is privileged.

What about free consultations?

Movies often depict a lawyer who is taking on a client pro bono (at no charge) asking for a dollar to seal the deal. The implication is that money has to change hands before attorney-client privilege applies. That is not true. Feel free to discuss your case in detail during a free consultation. That is the only way that the lawyer can give you the best advice.

Violating confidentiality

The attorney-client privilege applies mainly to dealings with police, prosecutors, and courts. None of these institutions can compel your lawyer to tell them anything privileged. Yet, there are plenty of other situations in which you want your lawyer to keep your business secret. In general, your lawyer must keep your dealings confidential. The ethics rules governing this are complex, but here are some exceptions.

  • Unless you specifically forbid it, your lawyer may discuss your case with other lawyers in the firm. In law firms like ours with several lawyers with a variety of legal experience, you benefit from collaboration among our lawyers.
  • Your lawyer may reveal protected information to save you or others from death or great harm.
  • Likewise, your lawyer must reveal the fact that you are in the process of committing or about to commit a crime or fraud that will result in severe financial harm.
  • Your lawyer may consult a lawyer experienced in the rules of ethics about your case, if necessary. The consulting lawyer must also keep your information secret.
  • If your lawyer is charged with misconduct in representing you, she may reveal as much as is needed to defend herself.

Finally, if you have any concerns about confidentiality, talk frankly with your lawyer about them.

You have something in common with Stormy Daniels

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Surprised? You both have arbitration agreements. We all agree to arbitration as the means of resolving disagreements dozens of times. Arbitration agreements are standard to most agreements, including all those times you click “yes” before signing for a new app.

arbitration

Photo credit: © Glenn Francis, https://www.PacificProDigital.com

Why should I care?

Most arbitration agreements you sign will have no effect on your life. Arbitration clauses in employment agreements, on the other hand, may cause you problems. Moreover, most financial agreements, including your bank accounts and credit card accounts, have arbitration clauses. Perhaps more ominous is the use of arbitration clauses in nursing homes. The recent growth of the use of arbitration clauses also degrades the quality of American justice.

What’s the problem with arbitration clauses?

Some lawyers refer to arbitration courts as “secret corporate courts” for several reasons.
  • Most arbitration clauses limit you to individual hearings. It puts the brakes on class actions. While they usually result in small individual settlements, they have a much stronger impact on the way businesses operate in the future. Studies show that few people pursue small violations through arbitration. When many small legal violations are combined in a class action lawsuit, the size of the settlement sends a strong message to the business. As a result, businesses are much more likely to abandon unfair and illegal practices.
  • Indeed, in 2014 attorneys general of 14 states sent a letter to the Consumer Financial Protection Bureau warning that “unlawful business practices” could flourish with the growth of arbitration clauses.
  • Arbitration essentially shields the wrongdoer from the public exposure that a trial in open court brings, hence the “secret corporate courts” designation. Many times the most potent tool the injured person has is the threat of exposure of the wrongdoer.
  • Arbitration rules favor businesses who can often steer cases to friendly arbitrators.

What can I do about the arbitration clauses in my life?

There are some situations in which you may be able to negotiate and different means of resolving contract issues. In addition, there are a few situations in which you can have your case heard in court. There are not many. If the money amount or the issue is significant, do explore the options with an experienced employment or personal injury attorney. At GSJones Law Group check out Chalmers Johnson and John Groseclose.

A few states are beginning to enact laws that limit the use of these clauses. If you are concerned about the creation of a separate legal system in the U.S. find out if your state has laws to address the issue and talk with your representatives about the issue.

Want to know more? Check out this excellent deep dive into what’s happening with arbitration clauses in the New York Times.

IRS tax

Time for Paycheck Checkup: IRS Calculator

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by Norman Short, Tax and Business Law Attorney

IRS Withholding Calculator

You can now check your IRS paycheck deduction, using the new IRS Withholding Calculator. The new tax law has several major changes and it has been implemented on an expedited schedule. It is possible that the IRS guidelines your employer uses to calculate your withholding don’t address how the new law applies to your individual situation.

So take a few minutes to do this paycheck checkup. It could save you the shock of a big tax bill next year. Or it could guide you to lower your withholding and have more money in the bank now.

Best IRS planning for business owners and complicated tax situations

Small business owners and those with complicated tax situations: I help people like you with tax and business decisions and representation regularly since 1995. If the new tax laws affect you, I’m happy to work with you to develop the best tax plan.

Settle Your IRS debt

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IRS debtIn the past several months three of my clients were able to settle their IRS debt through the Offer in Compromise program.  If you owe back taxes this is a good time to explore this option.

What is an Offer in Compromise?

An Offer in Compromise can allow a taxpayer with IRS debt to offer to pay what you can afford. Corporations, LLCs, and other entities can also take advantage of Offers in Compromise. If the IRS believes the Offer amount is equal to or more than what the Service could otherwise collect from the Taxpayer it will accept the offered amount to compromise the remaining tax liability. Last year we got an Offer through for a client who did not have any equity in his assets and did not have any income over and above his monthly necessary living expenses.  The IRS accepted a onetime payment of $300.00 to compromise over $80,000 in tax liabilities.  Tax liabilities that can be compromised include income taxes (1040), payroll taxes (941), trust fund recovery penalties, and more.

$281,000 IRS debt settle for $19,000.

Another example, one recent case involved a client who owned a business and had equity in his home.  He was able to demonstrate and the IRS agreed that his monthly necessary living expenses equaled or exceeded his monthly income.  In that case, the amount that the IRS determined was collectible was just over $19,000. The IRS accepted the client’s offer of $19,040.00 to compromise over $281,000 in taxes.

I have been doing Offers in Compromises for more than 24 years, essentially since the program first began. Without a doubt, this is one of the most favorable times to get an offer accepted that I have experienced. If you want to explore this option, give me a call.

by Norm Short, J.D., LL.M. Taxation

Is joint ownership a good substitute for a will?

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The short answer is probably not.joint ownership

 

Joint ownership is sometimes called the poor person’s will or the lazy will, although it is the most common form of estate planning. Its chief advantage is that it avoids probate. Yet, it brings with it a host of problems. Keep in mind that there are different kinds of joint ownership and all have their problems.

Here are the main ones:

1. The joint owners can be responsible for each other’s debt.

Creditors for your co-owners may attach your jointly owned property to satisfy their debts. Bankruptcy, a legal judgment against a co-owner, or a tax lien are most likely to cause problems. For example, suppose you add your daughter as a joint-owner of your home. If she defaults on a personal debt, your home could be sold to satisfy the debt. You will likely receive half the proceeds of the sale of the house, but you are out of a home with only half the funds you need to replace it. In some states tenancy by the entirety will protect each person from the debts of the other.

2. Your survivor is not bound by your wishes in passing on the joint property after your death.

Your survivor can do anything he wants to with the jointly-owned property he inherits. If you want to control how property is distributed to your children or charities, you need a will.

3. You may need approval from joint owners to sell or refinance the jointly-owned property, such as your home.

When you share ownership through a tenancy by the entirety, every joint owner you have must agree to major decisions. You may have been the sole decisionmaker of your business that you built from nothing. Yet, if you have made your children joint owners, major financial decisions will require their approval. Lines of credit increases and other routine matters can require a lot of discussion. These transactions can be further complicated if one of your co-owners becomes incapacitated or untrustworthy.

4. You co-owner may be able to make key decisions without your approval.

On the other hand, if you use a tenancy with right of survivorship, your co-owners can use or sell any part of the jointly owned property.

5. It can increase taxes.

Uh oh. You were hoping to save taxes through joint-ownership. To the contrary, you could incur additional taxes and even paperwork.

The gift tax

You can incur gift taxes and extra paperwork if you purchase a home with your money and put it in joint tenancy with a domestic partner. IRS rules consider that to be a gift whose value exceeds the gift limit.

Capital gains tax

IRS calculates capital gains on the sale of a home based on the increase in value from the date of purchase. If you sell a home which is jointly owned, all owners must pay taxes based on the total increase in value, regardless of when they became owners. On the other hand, capital gains accrue for heirs only based on the difference between the value when they inherited the home and the value at sale.

If joint ownership isn’t the answer, what is?

There are a number of options to ensure that your property reaches the people or causes you want with the least waste of time, effort and costs. Wills, trusts, and family-owned entities will serve you much better. Check with one of our estate planning attorneys today. A 30-minute consultation is free.

Norman Short, partner, 24 years experience in estate planning business and tax law

Robert Garrison, 38 years experience, including estate planning, consumer issues, and family law

Sylvia Seybold is often the choice of younger families. She combines estate planning experience with family law

Newlywed Tax Tips

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newlywed taxNewly married this summer?

by Norman Short, business and tax lawyer, GSJones Law Group, P.S.

You’re probably worn out from dealing with the myriad of details your wedding demanded.  The last thing you want is some more tasks. If, however, you take a little time now, you will save a lot of time in a few months when you file your first taxes together (or not).

Newlywed Tax Tip #1: Make official name and address changes

Yes, you’ve spent hours changing your relationship status and perhaps your name on social media. You’ve also spent hours making sure even great aunt Penelope that you haven’t seen since you were 11 knows about your marriage. Now it’s time to let your employer, the IRS, and Social Security know about changes in your name or address.

IRS: File their change of address form if one or both of you have moved.

Your employers: Tell your employers about any changes in name or address. Even if you are not changing the name you use at work, if you have a new legal name, the personnel department needs to know.

Social Security Administration: If one or both of your are changing your name, you will need a new Social Security card.

Newlywed Tax Tip #2: Decide on how to handle your finances

Whether or not to combine bank accounts and other finances is a very personal choice. If, however, you plan to file your taxes separately, it is much better to keep your finances separate. In most cases, it is better to file jointly and how you handle your finances will not make a difference. Other than only having to file one return (a major plus), when you file jointly you qualify for a higher standard deduction and more tax credits.

In general, filing separately only makes sense when there is a significant difference in income level between you. If you are in doubt, a quick consultation with your accountant or a tax attorney will resolve the matter.

Newlywed Tax Tip #3: Estimate your new taxes

If you plan to file jointly, it’s important to avoid an ugly surprise at tax time. Use a simple tax calculator, such as the one at 1040.com. There are a variety of steps you can take before January 1 to lessen the tax time ouch. Others, such as contributions to IRAs, can be started at the time you file your taxes. Make plans now, however.

Newlywed Tax Tip #4: Adjust your W-4

Whether you have found that you will owe IRS more or your tax calculation reveals yet another benefit of marriage, adjust your W-4. Increasing your withholding will take some of the bite out of tax filing. If on the other hand, you project a refund, take it now. IRS will not pay you interest on the extra money it is taking now. Invest your refund now by decreasing your withholding now. You may want to invest in mutual funds for the future. Or you may want to invest in your new home or memorable experiences with your new spouse. It’s up to you.

Business owners

Of course, if one of you is self-employed or a partner in a business you will need to consult your accountant or an attorney about what changes need to be made.

 

books on divorce

Books on divorce

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A good divorce lawyer is essential; good books on divorce are vital

Divorce is tough. Our five divorce attorneys know that well. Nothing is more important than family and friends that can listen and offer practical support. On the other hand, there are many aspects of divorce where specific expertise can help. At GSJones Law Group we have five divorce lawyers who guide you steadily and empathetically through the legal process. We are not, however, child development experts. Or couples counselors, although we often can do a lot to help you and your spouse separate with less rancor.

Here are a few books on divorce that others who have gone through divorce found helpful.

Your emotions

You can choose from a vast number of books to help you deal with your emotions, both old and new. Here are a few to get you started.

Making the decision to divorce

Let’s start with a book to help you decide whether or not to divorce, Too Good to Leave to Bad to Stay, A Step-by-Step Guide to Helping You Decide Whether to Stay in or Get Out of Your Relationship, Mira Kirshenbaum. Use the 36 diagnostic questions to help you make the fateful decision. The author is the clinical director of Chestnut Hill Institute, a psychotherapy clinic that uses the latest research.

Another research-based book, What Makes Love Last?: How to Build Trust and Avoid Betrayal, John Gottman and Nan Silver, lays out the elements of lasting love and shows you how to identify signs, behaviors, and attitudes that indicate a fraying relationship. It also provides strategies for repairing what may seem lost or broken.

Books on divorce

In print for 35 years, you may want to start with this classic in its 35th-anniversary edition: Rebuilding: When Your Relationship Ends, Bruce Fisher, Robert Alberti, and Virginia Satir. It provides a 19-step process for rebuilding your life after divorce. From amazon.com: “…this book offers just the right balance of shoulder-to-cry-on and kick-in-the-pants self-help!”

The aptly named Crazy Time: Surviving Divorce and Building a New Life, Abigail Trafford,  helps you understand your experiences as you weather the turmoil. The latest edition contains the most up-to-date research on the personal and economic effects of divorce. The new edition also adds a section on becoming single again in the age of the Internet.

Spiritual Divorce: Divorce as a catalyst for an extraordinary life, Debbie Ford, offers Seven Spiritual Laws: acceptance, surrender, divine guidance, responsibility, choice, forgiveness and creation. Based in Jungian psychology, you may find this book most helpful if you use a 12-step program or are familiar with A Course in Miracles.

How to Survive the Loss of a Love, Peter McWilliams, Harold H. Bloomfield, & Melba Colgrove, has stood the test of time. It provides comfort and recommendations in an easy-to-read format.

Books on domestic violence and other high conflict divorces

Lundy Bancroft, who counsels abusive men, offers insight into the thinking and emotions of abusers in Why Does He Do That?: Inside the Minds of Angry and Controlling Men. He also gives advice on how to safely escape from abusive relationships.

Personal accounts of divorce

Hollywood screenwriter Chris Easterly’s account of his divorce in Falling Forward: A Man’s Memoir of Divorce explores his emotional journey from discovering his wife’s affair to eventual healing. It helps affirm the fact that you will survive.

Another professional writer offers a women’s account in Split: A Memoir of Divorce by Suzanne Finnamore. Goodreads: “Prescriptive yet full of pragmatic advice, insight and black humor, Split is a finely wrought tourniquet for a broken union and its attendant trauma.”

Your children and divorce

Parents

The Co-Parents’ Handbook: Raising Well-Adjusted, Resilient, and Resourceful Kids in a Two-Home Family from Little Ones to Young Adults, Karen Bonnell, takes a how-to approach to guiding you and your ex-spouse through the challenges of co-parenting.

If co-parenting isn’t working, check out Joint Custody with a Jerk: Raising a Child with an Uncooperative Ex- A Hands-on, Practical Guide to Communicating with a Difficult Ex-Spouse, Julie Ross, M.A., & Julie Corcoran. It offers easy-to-use communication techniques for dealing with difficult exes in parenting.

When Dad Hurts Mom: Helping Your Children Heal the Wounds of Witnessing Abuse, Lundy Bancroft, provides advice for abused parents on protecting their children, as well as helping them heal and feel good about themselves. In addition, it provides tips about custody. 

Young children

It’s Not Your Fault, Koko Bear: A Read-Together Book for Parents and Young Children During Divorce, Vicki Lansky, is designed for children who have both parents active in their lives. In addition to a read aloud story, it also offers advice to parents on being a successful co-parent.

Two Homes, Claire Masurel is for very young children. Here’s a sample: “At Mommy’s house, Alex has a soft chair. At Daddy’s house, Alex has a rocking chair. In each home, Alex also has a special bedroom and lots of friends to play with.”

On the same topic as Two Homes for a slightly older child, Standing on My Own Two Feet: A Child’s Affirmation of Love in the Midst of Divorce, Tamara Schmitz

By the estimable Fred Rogers Let’s Talk About It: Divorce (Mr. Rogers) helps children through the third grade identify and talk about their feelings.

Tweens

It’s Not the End of the World by Judy Blume – a classic yet still relevant novel that follows 11-year-old Karen as her parents’ divorce.

Your spirits

Sixteenth on amazon.com’s list of most popular books on divorce is Revelations of Divine Love by the 14th-century Christian mystic Julian of Norwich. What could an old hermit know about going through a divorce? Why would she speak to the hearts of people going through one of the saddest, toughest periods of their lives? Well, it takes spiritual grounding to be strong and resilient. And nothing demands strength and resiliency like divorce.

Maybe 600-year-old Christian mysticism isn’t your cup of tea. How about modern Buddhist lovingkindness meditation? One of the foremost American Buddhist teachers, Sharon Salzberg, recently released a book, called Real Love. Real Love is a creative toolkit of mindfulness exercises and meditation techniques that help you to truly engage with your present experience and create deeper love relationships with yourself, friends and family, and with life itself.

Even older than Julian of Norwich is the Sufi poet Jalāl ad-Dīn Muhammad Rūmī. His 800th birth anniversary was celebrated all over the world. While not a book on divorce, love is a frequent topic of his religious poetry. The Essential Rumi, translated by Coleman Barks, is a great way to start. It is full of both the ecstasy and the agony of human and spiritual love. Or perhaps, you want to steer away from love and concentrate on your own inner life. Rumi’s Little Book of Life might be just what you need.

Most Christian denominations have daily devotion guides. If you have not been using one, now might be a good time to start. Your pastor will be happy to help you find the right one.

If you’re looking for a good divorce lawyer in Port Orchard and Kitsap County, check out our Divorce and Family Law Attorney page.