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Thinking About Settlements
Discounting retirement plans for taxes is a tricky business and can sometimes lead to problematic or inequitable settlements. Although methodologies exist for valuing such plans, these methodologies do not involve tax impacting ' and for good reason. The problem is twofold: 1) The true after-tax value of retirement assets is context-driven and thus varies with the rate at which each of the parties will be taxed when distributions are taken; and 2) Although often ignored, these plans often involve tax-deferred compounding, which can dramatically enhance their value over time.
Effect of Tax-Deferred Compounding
Figure 1 compares the effect of tax-deferred compounding at 9%, on $10,000, with an after-tax value calculated using a combined Federal and state tax rate of 35%. As shown, the difference between the tax-deferred and after-tax values increases exponentially. By the 24th year, the tax-deferred value is more than double the after-tax value. To illustrate the magnitude of this difference, assuming that the owner begins drawing income only at the end of the 24th year, the tax-deferred account generates $7120 annually versus $3522 from the after-tax account.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.