Reduce Taxes By Owning Property?

Many people erroneously view owning property as an increase to their tax burden. Measure 50, approved by Oregon voters in 1997, ties property taxes to assessed value instead of market value. This causes property taxes to increase only three percent per year, which means that your assessed value is most likely still below the market price.

Even despite property tax increases, there are still many tax advantages to owning a home. For example, a homeowner with a 30-year fixed rate mortgage of $200,000 could expect to pay about $10,000 in interest, with an additional $2,400 in property taxes. By itemizing these payments on their income taxes, they can reduce their taxable income by $12,400. The homeowner’s gain is even higher if appreciation on the property is added.

In the Housing and Economic Recovery Act, a first-time homebuyer is currently entitled to an $8,000 tax credit. This credit will reduce taxes or even provide a refund unless the home ceases to be the homeowner’s principal residence within three years from the date of purchase. In addition, a long-time homeowner may now qualify for a $6,500 credit if a replacement home is purchased after November 6th, 2009. This creates a credit for divorced individuals buying new homes.

If you are planning to buy a home in the near future, be sure to calculate the amount of appreciation and tax savings. Just remember that these examples are intended to provide a general idea of how home ownership might be applied to taxes and income. You should always consult with a tax advisor for information relating to your specific circumstances.

Expert Advice for Real Estate Transactions

Many clients own a primary residence, a vacation home, or a rental property which they wish to sell or refinance. In February 2010, Stahancyk, Kent & Hook presented “Crisis or Opportunity – Real Estate Perspective From the Professionals,” a continuing legal education program for members of the Washington County Bar Association.

The panel presented a wealth of information for those considering buying, selling, or refinancing a home, which we will now share with you. An important step in selling a home, especially in the course of divorce, is obtaining an appraisal. Because the market changes rapidly, it is important that appraisers rely on recent comparable sales. Sean Kelly of Par Appraisal Group advises that, if possible, no comparable sale older than three months be used. It is also important that you and your attorney communicate all litigation needs and concerns regarding the property early in order to obtain an accurate and helpful appraisal.

The housing crisis also affected the refinancing process. Rules for obtaining a loan are becoming more stringent. This problem is exacerbated by the fact that, while the applicant used to have ample opportunity to explain personal circumstances, loans are now approved by underwriters who strictly apply the rules. One important change to these rules is that you must now collect spousal support for three months before it will be considered as income on your loan application.

Finally, during the divorce process many clients wish to sell a residence through short sale. A short sale is when a property is sold with no expectation of getting any equity back, and can be very important if you owe more on your home than it is worth. Short sales can protect your credit and help in negotiating loan forgiveness. Both you and the bank must consent in order to sell a property under short sale.

For more information, contact your attorney or one of our panelists, Sean Kelly, Curtis Aimonetto, and James Rostel, may be contacted at:

Sean Kelly, Par Appraisals: sean@parappraisals.com
Curtis Aimonetto, Mortgage Advocates, Inc.: CurtisA@mtgadvocates.com
James Rostel, Orenco Realty: Jim@JimRostel.com

Cycling Safety

The Northwest has two natural phenomena that make this region a beautiful place to live: trees and rain, both of which create extra challenges for people who commute to work by bicycle. As the days get shorter, early sunsets make it hard to see and even harder to be seen. Wearing bright colors helps, however the use of lights and reflectors makes a drastic difference. Wearing two lights, one for the front and one for the back of your bike or coat, allows others to see you and judge their distance from you. Having lights is not only the smart choice, it can also be the only legal choice — many cities have laws that require lights when riding in the dark.

Autumn leaves turn beautiful colors then fall the ground, and wet leaves make for very slick riding conditions. When riding over leaves, never make sharp turns. Wet leaves can cause your tires to slip out from under you. A fall from a bike, especially in traffic, can leave you with broken bones or worse.

This brings us to another important point: safety equipment. Never ride without a helmet. It is proven that helmets can help save lives. Remember that with helmets size does matter; wear one that is the right fit for you and don’t forget to adjust the straps correctly. It can’t protect your head if it flops around.

When riding, take a proactive approach. You need to be aware of everything around you. Cars, people, dogs, trees and rocks are all possible safety hazards. Also, limit your distractions. Don’t use headphones while riding. If you get a phone call, pull over to the side and stop before answering. The more focused you are, the faster you can react.

You can’t be too safe when cycling out on the roads. Remember to take caution when it’s wet outside and even more when it’s dark. Wear the proper safety gear and limit you’re distractions. Cycling is fun; keep it fun by being safe.

Domestic Partnership

Many people wonder what would happen if they simply do not marry their partners. By avoiding marriage, can one avoid the hassle of a divorce? While this may seem like a tempting proposition, there are legal implications you should consider.

Even if a couple never marries, either person may seek help from the state in dissolving the relationship. The person must show the intent of the couple, express or implied, to share assets or offer continued support. This is sometimes referred to as an “unregistered domestic partnership.” Oregon law allows same-sex couples to register domestic partnerships, and a registered domestic partnership comes with most of the same rights as marriage. Unlike a registered domestic partnership, an unregistered domestic partnership provides only the rights the couple expressly or implicitly agreed to provide.

An unregistered domestic partnership is by no means the same thing as a marriage. For marriages the court presumes property acquired during the marriage is joint; conversely, in an unregistered domestic partnership the court begins with the assumption that all property is separate. A partner must then prove the intent was to share property. For example, the partner might produce a written agreement between parties or show that the couple treated a house as joint property by both paying towards the mortgage.

Therefore, while a few marriage-like rights can be applied to unregistered domestic partnerships, be aware that there are many important rights that come only with marriage. For example, marriage gives partners the right to file joint federal taxes, collect a spouse’s social security under certain conditions, and receive continued support from a spouse in the case of unemployment or disability, among many others.

Your lawyer can help you foresee and avoid other pitfalls specific to your situation and discuss other options, such as executing a prenuptial agreement.

Search Engines

The Internet has become a vital part of our daily lives. For many people, Google is nearly synonymous with the Web, and it’s easy to see why. Google has a clean, clear design and seems supernaturally able to find what you’re looking for. However, while Google is a great search engine, it’s not the only one, and sometimes others may be better.

All search engines automatically browse the Web and create an index of the text. When you search, the engine checks the index for pages with the text of your search. Part of Google’s strength is that it indexes more pages,but this “data harvesting” is the easy part. The real key is sorting the thousands of results. Google’s algorithms are clever enough to make good guesses about which pages you actually want, and which ones have just the right words. They also have millions of previous searches and know which results were most popular.

Because of its strength, many of Google’s competitors have fallen by the wayside, but not all. Yahoo! is still operating, and Microsoft recently entered the search engine market with Bing. Microsoft claims that Bing is better at finding the results you actually want, even suggesting sites that aren’t exact matches. You may find that Bing delivers results similar to Google, so the most interesting search may be Bing Vs. Google (www.bing-vs-google.com). This site presents results from both Bing and Google in a split screen. You can decide for yourself which one is best.

Another good approach for searching the Web is to use the search function of an individual site. Google and Bing searches often take you to Amazon or Wikipedia, but you can search those sites by themselves. The Mozilla Firefox browser can even add site searches to the search bar, so you don’t need to load the site first. Searching for a topic within a specific site, rather than the entire Web, will narrow your search, targeting the results to exactly what you need.

Stepparents’ Rights Upon Divorce

For many years stepparents suffered from near non-recognition in the eyes of the law. A non-adoptive stepparent facing divorce had no legal right to maintain their relationship with their stepchild post-judgment, at least not without the goodwill of the legal parent (a scarcity in the midst of divorce, perhaps). In many states, that is still the law today, despite a rise in second and third marriages.

In Oregon, however, the law recognizes a non-adoptive stepparent’s right to continue their relationships with their stepchildren irrespective of subsequent divorce. Oregon Revised Statute 109.119(5) gives stepparents in the midst of a divorce proceeding the power to petition the court for custody or visitation rights with their stepchildren. The statute even allows stepparents to file post- judgment modifications for child custody.
To exercise the right, stepparents must demonstrate a “child-parent relationship.” A “child-parent relationship” is a relationship within the preceding six months in which the stepparent has had physical custody of the child (or resided in the same household) and also provided necessities such as food and shelter on a day-to-day basis. Stepparents seeking only visitation rights (not custody) can petition the court through ORS 109.119(1) and need only demonstrate that they enjoy an “on-going relationship” with the child.

The catch is that the court applies a so-called “rebuttable presumption” that the legal parent “acts in the best interests of the child.” This means that the legal parent can cut all ties between the child and the stepparent and the court will assume that such action is in the child’s best interest. To rebut the presumption, the stepparent must show, by at least a preponderance of the evidence, that the legal parent is not acting in the child’s best interest. Examples of successful rebuttals typically involve legal parents who are incapable parents and/or have cut ties between the stepparent and child out of spite or selfishness.

So while Oregonian stepparents in the midst of divorce still face an uphill battle in maintaining their parental rights, they at least have the ability to make their case. It may not be much, but it’s better than nothing — and much better than most states.

Text Messages In The Family Law Setting

These days text messaging is often at the forefront of communication between family members. Like e-mail, text messaging provides a quick and convenient avenue for non-spoken communication between parties. Text messaging can be especially valuable in contentious co- parenting situations where one or both of the parents may not feel comfortable speaking with the other parent. Depending on the type of cellular telephone or service options, text messages may also be sent to a party’s e-mail account in order to keep a written record of text messages that have been sent and received.

It is common in family law situations for clients to request text message records. The availability of text message content (obtainable pursuant to subpoena) varies depending on cellular service provider. For example, both Sprint and AT&T will answer subpoenas for text message records with information regarding the number of text messages sent from an account and will provide the telephone number the text messages were sent to. However, through conversations with Sprint and AT&T representatives, we have learned that each company has a different policy regarding the retention of text message content (whereas AT&T does not retain any text message content in a readily available format, Sprint will retain some content, but only for a very limited number of days after the text messages were sent). Additionally, representatives from both Sprint and AT&T mentioned that retrieval of text messages content is typically reserved for law enforcement purposes due to extremely prohibitive cost associated with text message content retrieval. But remember, a party’s cellular telephone itself could possibly be subpoenaed for the text message content stored on it.

The bottom line is that while text messaging can be a highly effective and useful tool communication tool, remember that, like any other communication, text messaging can be over-used or abused and it is not a panacea for communication difficulties between family members or ex-spouses. Even though a cellular provider may not retain content in accessible form, a party may have already have sent the content of a text message to their e-mail account for future reference. One should assume that any electronic communication could be preserved somewhere. Even innocuous statements can be construed negatively by future readers without the proper context, so it is very important to carefully consider the content of any electronic communication that comes from your e-mail account, cellular telephone or a social networking account (such as Facebook). Use these wonderful communication tools, but use them wisely.

Dr. Michael Donner to present "Tearing the Child Apart"

Dr. Donner -- a California-licensed psychologist, family therapist and Chair of the California Psychological Association's Ethics Committee -- will describe and discuss parents who act against their children's best interests. Understanding why high-conflict parents persist in destructive behavior can assist courts and treatment providers in minimizing the harm to children. The afternoon panel will bring distinct perspectives on the real ethical dilemmas that all professionals face.

CCS is streaming "Tearing the Child Apart" live to the law offices of Stahancyk, Kent & Hook PC in Bend, OR. Participants can follow along with the presentation, ask questions to the speakers at appropriate times and are eligible for the same CLE / CE credits as those attending in person. To register for the conference in Central Oregon, visit this sister page.

Lawyers who passed the bar exam in 2009 or 2010 can attend this CLE for a discounted admission price of $60. To receive this discount, purchase the $60 ticket, check the box that asks if you passed the exam in 2009 or 2010 and submit your bar number. Students currently attending law school can also attend for just $60.

Registration opens at 8:30 AM. The seminar begins at 9:00 AM and ends at 4:00 PM.

To register visit Child Centered Solutions 

Note: A DVD recording of the program and copies of the printed materials will be available for purchase after the seminar. We are accepting pre-orders for these items now.

Dr. Michael Donner Presents: Tearing the Child Apart

"Tearing the Child Apart"

Friday, November 05, 2010 9:00 AM

Lincoln High School - 1600 SW Salmon St. Portland, OR 97205

Struggling with Child Support?

In these times of economic upheaval, individuals are seeking to cut any corner that can possibly save some cash. Many parents who owe child support are finding themselves tempted to skip a payment or two, or more.

The misconception that not paying child support one month “just adds on to the bill”
to pay later without ramifications is a dangerous path to tread and can have farther reaching, and far more costly, consequences than one would imagine.

Despite the obvious moral obligations to support one’s children, failure to pay child support can result in not only a loss of income, but a loss of freedoms. Oregon has many tools available for collecting of child support, including: wage withholdings of up to 50% of net earnings (yes, 50%!), seizure of federal and state tax refunds, garnishment of bank account balances, and placing liens on valuable property. As if these weren’t enough, the state also has authority to revoke your driver’s license, your occupational license, and even freeze your passport, should you owe more than $2500 in back child support. Owing back child support will damage your credit score and, more often than you may think, it can even land you in jail if you are found in contempt of the court order.

So, anyone considering blowing off a child support obligation this month should stop for a moment and think... is it really worth it? If you have had a substantial change in your income, ask your attorney whether you would qualify for a child support modification.

Modern Lingo

Language is a growing, organic entity that evolves over time, and we can expect to see the changes in our culture reflected back in how we speak and write. Terms like “wonk,” “frenemy,” and “staycation” came into existence only within the last few years. Yet these words, and hundreds of others, have been incorporated into our lives, vocabularies, and even dictionaries.

Words can also take on new meaning as society changes. For instance, a “gamer” was once someone who was always ready to play football no matter the conditions, while now it refers to a person who plays videogames all day. It is now also commonplace to use websites as verbs. For instance, instead of saying, “I will look that up on Google,” people now simply say “I’ll Google it.” And that search engine has long eclipsed the original definition of the word “google” - a mathematical term for a number that is a one followed by a hundred zeros.

Using a broad vocabulary can make your speech and your writing more expressive and interesting. With many readers, modern lingo is going to be more accessible than using words they haven’t seen since they took the SAT. But be cautious becoming too casual, especially in a professional setting. Incorporating terms like “bromance” and “vuvuzela” into an email may give readers the impression that you are hip and worldly, but telling your co-workers that you are “gonna send a msg” will make you seem uneducated or worse. Always consider your audience and the message you’re trying to send. Unless your business demands being cool and hip, it’s usually more important to appear professional and competent. The rules of grammar may be bent for artistic license, but disregarding them entirely will only leave the impression of ignorance.

Adjustable Rate Mortgages

Adjustable Rate Mortgages (ARMs) have a bad reputation these days. During the recent housing boom, the promise of low monthly payments offered by many ARMs, at least initially, enticed many people into obtaining ARMs to finance their homes. For many consumers, the low initial payments promised by ARMs proved too good to be true, as the “initial interest rate” (the interest rate paid at the beginning of an ARM) period came to a close for many consumers and interest rates in the broader economy shot up.

To better understand the potential problems with ARMs, it helps to contrast them with fixed-rate mortgages. A fixed-rate mortgage is one in which the payments remain constant over a fixed period of time (often 30 years). ARMs, like their title suggests, do not remain fixed – the interest rates on ARMs adjust after a certain period of time –and this is where the pitfall lies for ARM holders.

For homebuyers and owners, the devil is in the details of the ARM. Some have longer periods of fixed payments (called the “adjustment period”) before their interest rates change. ARM interest rates are usually pegged to various economic indexes, so the rates will not always rise and may even drop, depending on economic conditions. Some economic indexes are more stable over time than others. However, recent years have seen a perfect storm of declining economy and ending adjustment periods that have combined to create volatile interest rates leading to skyrocketing mortgage payments.

The implications of ARMs for family law are significant. Often, one party is awarded real property, generally a home, that is subject to a mortgage. It is important for the party assuming the home to know if they have an ARM or a fixed-rate mortgage because the interest rates could rise at the end of the adjustment period and a party must be prepared financially to absorb the future increased payment. Given the prevalence of ARMs in recent years, a careful review of mortgage documents is in order for anyone thinking of assuming a mortgage liability.

What is a Carbon Footprint?

Many individuals and businesses concerned about global warming have decided to take action by reducing their “carbon footprint.” While these measures get publicity and media coverage, such coverage often fails to explain what a carbon footprint actually is and what steps you can take to do your part.

When people refer to reducing carbon or a carbon footprint, they really mean carbon dioxide. Carbon dioxide is a primary greenhouse gas and the biggest threat for global warming. All animals breathe out carbon

dioxide, but that is miniscule compared with the carbon dioxide produced by burning fossil fuels, such as coal or petroleum. “Carbon footprint” refers to the impact one’s lifestyle or business has on the amount of carbon dioxide in the atmosphere. The overall carbon footprint includes driving and heating, as well as secondary sources like the carbon dioxide from coal burned for electricity or diesel burned in trucks delivering food to the supermarket.

Reducing a carbon footprint can take many forms, but it is often about making sure energy is used efficiently. You can keep you home toasty with less energy if you have proper insulation and newer windows. You can also buy carbon “offsets” to make up for the carbon dioxide you can’t avoid. The offsets may buy credits in foreign carbon markets or be used for re-foresting efforts, since trees and plants convert carbon dioxide into oxygen. Even if you’re a skeptic of global warming, many of the actions taken to reduce a carbon footprint are worthwhile. Energy efficiency doesn’t just help reduce carbon dioxide, it also lowers your utility bills.