XDT 8/16
Marketing Letter on Divorce Planning
[Date]
[Attorney Name]
[Attorney Address]
[Attorney City, State, Zip]
Dear [Attorney Name]
We understand how couples going through a divorce or separation face many monetary and property issues in addition to the emotional aspects. How these matters are resolved generally has long-term implications and can dramatically impact the individuals’ financial well being.
This letter is being sent to let you know that our firm provides the following divorce-related services:
¯ Tax planning;
¯ Discovery assistance;
¯ Expert witness;
¯ Valuation of businesses and professional practices; and
¯ Assistance in finalizing property distributions and support agreements.
The tax issues of divorce can be complex. Without proper planning, a seemingly equitable property settlement can become a disaster due to the underlying tax consequences. For example, the division of retirement plan assets requires careful compliance with the tax rules to ensure the spouse receiving the retirement funds is taxed on the income. Furthermore, there are different rules depending on whether the retirement assets are in an employer plan or inside an IRA. Similarly, considering the tax bases of the spouses’ assets and the future tax consequences from the sale of those assets is critical to ensuring the most equitable property settlement possible. Additionally, a tax review of spousal and child support provisions will ensure that these are properly treated for tax purposes and that your intentions are carried out. There may also be planning opportunities that will provide you the most tax-advantageous means of paying or receiving support amounts.
Discovery assistance can be beneficial in a number of ways. Our understanding of how an asset’s and liability’s tax basis can affect how much an individual ultimately receives can help ensure that the alimony, child support, and property settlements negotiations result in the intended consequences to each spouse. We can provide expertise in (a) preparing schedules of disposable income and expenses, (b) preparing schedules of marital and separate assets and liabilities, (c) estimating the value of each asset and liability, and (d) performing forensic examination of assets or closely-held company information.
Valuing assets, liabilities, businesses, and professional practices is not always as simple as it may appear. Our divorce engagement team of professionals includes individuals who are certified by the AICPA as Accredited in Business Valuations, a highly-respected certification in business valuation circles. Additionally, our divorce engagement team includes individuals trained in performing forensic examinations. This expertise can assist in divorce situations where one or both spouses are suspected of not being completely truthful about their asset holdings.
We believe the many specialized divorce-related services that our firm offers could be of assistance in many of the divorce and separation legal actions your firm handles. I would like to meet with you to further discuss how our divorce expertise could add value to your divorce team of professionals. I’ll call you next week to arrange a convenient time.
Best Regards,
[Practitioner or client contact person]
Notes:
A copy of this letter can be downloaded from PPC’s website. You can then edit and distribute it to clients, potential clients, and referral sources as you see fit. However, please remember that the material is copyrighted. You may not use it for any other purposes, such as posting it in a website area available to the public or sharing it with another firm or association of firms of which you are a member. To download the letter, go to our website at ppcsrvcs.thomsonreuters.com/subscriptions/portfolios and choose the appropriate letter from the list.
Regs. 301.7216-1 through -3 impose stringent rules on disclosing and using tax return information on tax return preparers. If the client is a tax-only client (i.e., the practitioner has not been engaged to provide other services), the practitioner must obtain written consent prior to sending out materials discussing or promoting nontax services. See PPC’s Guide to Dealing with the IRS for further discussion of the penalty, disclosure requirements, and exceptions.