NJSBA Family Law Section

What's the current presumed return rate for calculating the imputation of income from a lump sum?

Party is to receive roughly $1,000,000 from a PI settlement.  For purposes of imputing interest income, what's the % return that a court should apply?  3.5%?  (I.e., $1,000,000 if invested would produce $35,000 per year?)

Source?   (Rule, case, statute)?

Thanks....

------------------------------
David Perry Davis, Esq.
112 West Franklin Avenue
Pennington, NJ 08534
Voice: 609-737-2222
Fax: 609-737-3222
http://www.FamilyLawNJ.pro
------------------------------

They might use the post-judgment interest allowed under 4:42-11.

Robert E. Goldstein, Esq.
Drescher & Cheslow, P.A.

610 Bridge Plaza Drive

Manalapan, NJ 07726

(732) 972-1600
Fax (732) 972-0038
E-mail: [email protected]


Visit my personal website: www.mydivorcelawyernj.com
<http: www.mydivorcelawyernj.com/="">

http://www.superlawyers.com/new-jersey/lawyer/Robert-E-Goldstein/b2c01d60-2a
6b-44b7-a5d7-dfb35f503e18.html

Member, Middlesex County Bar Association, Monmouth Bar Association, New
Jersey Association for Justice and New Jersey State Bar Association





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Original Message------

What's the current presumed return rate for calculating the imputation of income from a lump sum?

Party is to receive roughly $1,000,000 from a PI settlement.  For purposes of imputing interest income, what's the % return that a court should apply?  3.5%?  (I.e., $1,000,000 if invested would produce $35,000 per year?)

Source?   (Rule, case, statute)?

Thanks....

------------------------------
David Perry Davis, Esq.
112 West Franklin Avenue
Pennington, NJ 08534
Voice: 609-737-2222
Fax: 609-737-3222
http://www.FamilyLawNJ.pro
------------------------------

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Bob, I loved your speech congrats for the Schoifet award , well deserved

Sent from my iPhone


Original Message------

They might use the post-judgment interest allowed under 4:42-11.

Robert E. Goldstein, Esq.
Drescher & Cheslow, P.A.

610 Bridge Plaza Drive

Manalapan, NJ 07726

(732) 972-1600
Fax (732) 972-0038
E-mail: [email protected]


Visit my personal website: www.mydivorcelawyernj.com
<http: www.mydivorcelawyernj.com/="">

http://www.superlawyers.com/new-jersey/lawyer/Robert-E-Goldstein/b2c01d60-2a
6b-44b7-a5d7-dfb35f503e18.html

Member, Middlesex County Bar Association, Monmouth Bar Association, New
Jersey Association for Justice and New Jersey State Bar Association





IRS Circular 230 Notice: To ensure compliance with certain regulations
promulgated by the U.S. Internal Revenue Service, we inform you that any
federal tax advice contained in this communication (including any
attachments) is not intended or written to be used, and cannot be used, by
any taxpayer for the purpose of (1) avoiding tax-related penalties under the
U.S. Internal Revenue Code, or (2) promoting, marketing or recommending to
another party any tax-related matters addressed herein, unless expressly
stated otherwise.

This E-Mail message and any documents accompanying this E-Mail transmission
contain information from the law firm of Drescher & Cheslow, P.A. which is
"Privileged and confidential attorney-client communication and/or work
product of counsel." If you are not the intended recipient, you are hereby
notified that any disclosure, copying, distribution and/or the taking of or
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being instituted against you. Please reply to the sender advising of the
error in transmission and delete the message and any accompanying documents
from your system immediately. Thank you





</http:>

Thanks, Dave.

I followed in some very good and deep footsteps!

Robert E. Goldstein, Esq.
Drescher & Cheslow, P.A.

610 Bridge Plaza Drive

Manalapan, NJ 07726

(732) 972-1600
Fax (732) 972-0038
E-mail: [email protected]


Visit my personal website: www.mydivorcelawyernj.com
<http: www.mydivorcelawyernj.com/="">

http://www.superlawyers.com/new-jersey/lawyer/Robert-E-Goldstein/b2c01d60-2a
6b-44b7-a5d7-dfb35f503e18.html

Member, Middlesex County Bar Association, Monmouth Bar Association, New
Jersey Association for Justice and New Jersey State Bar Association





IRS Circular 230 Notice: To ensure compliance with certain regulations
promulgated by the U.S. Internal Revenue Service, we inform you that any
federal tax advice contained in this communication (including any
attachments) is not intended or written to be used, and cannot be used, by
any taxpayer for the purpose of (1) avoiding tax-related penalties under the
U.S. Internal Revenue Code, or (2) promoting, marketing or recommending to
another party any tax-related matters addressed herein, unless expressly
stated otherwise.

This E-Mail message and any documents accompanying this E-Mail transmission
contain information from the law firm of Drescher & Cheslow, P.A. which is
"Privileged and confidential attorney-client communication and/or work
product of counsel." If you are not the intended recipient, you are hereby
notified that any disclosure, copying, distribution and/or the taking of or
refraining from taking of any action in reliance on the contents of this
E-Mail information is strictly prohibited and may result in legal action
being instituted against you. Please reply to the sender advising of the
error in transmission and delete the message and any accompanying documents
from your system immediately. Thank you






Original Message------

Bob, I loved your speech congrats for the Schoifet award , well deserved

Sent from my iPhone

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Miller v. Miller :  Moody's Composite Index on A-Rated Corporate Bonds, for the last  5  calendar years, straight line average? weighted average?  

------------------------------
Charles Abut Esq.
Hackensack NJ
(201)342-0404
------------------------------


Original Message:
Sent: 01-22-2015 19:18
From: David Perry Davis
Subject: Quick one? Current presumed return rate and source?

What's the current presumed return rate for calculating the imputation of income from a lump sum?

Party is to receive roughly $1,000,000 from a PI settlement.  For purposes of imputing interest income, what's the % return that a court should apply?  3.5%?  (I.e., $1,000,000 if invested would produce $35,000 per year?)

Source?   (Rule, case, statute)?

Thanks....

------------------------------
David Perry Davis, Esq.
112 West Franklin Avenue
Pennington, NJ 08534
Voice: 609-737-2222
Fax: 609-737-3222
http://www.FamilyLawNJ.pro
------------------------------

But, also see Overbay, 376 N.J. Super. 99

"The lesson to be learned from Miller is that when a spouse with underearning investments has the ability to generate additional earnings - without risk of loss or depletion of principal - but fails to do so, it is fair for a court to impute a more reasonable rate of return to the underearning assets, comparable to a prudent use of investment capital. In Miller, the Court took note of the difference between legitimate investment strategies, specifically, between investing "designed to produce [future] income through appreciation in stock values" and investing for present income. Miller, supra, 160 N.J. at 421, 734 A.2d 752<http: scholar.google.com/scholar_case?case="6119816865765718806&q=overbay+imputation&hl=en&as_sdt=4,31">. In imputing additional income to Mr. Miller, id. at 423-24, 734 A.2d 752,<http: scholar.google.com/scholar_case?case="6119816865765718806&q=overbay+imputation&hl=en&as_sdt=4,31"> the Court recognized that it would be unfair to allow one spouse to maximize future income through anticipated asset appreciation for his or her own benefit, while limiting present income that would enter into the alimony calculation for the benefit of the other spouse. That distinction between a "growth" strategy and an "income" strategy applies equally to a supporting and a supported spouse in the context of imputing income to either spouse for purposes of calculating alimony. Mrs. Overbay's investment strategy here bears no similarity to Mr. Miller's. There is no suggestion that she has reduced her current income in the pursuit of future asset appreciation. Thus, the trial judge initially erred when he failed to explain why it was appropriate to impute additional earnings to defendant's inheritance, and he subsequently erred when he used an unrealistic rate of return to impute additional investment income to defendant."

James A. Vigliotti
Ventura, Miesowitz, Keough & Warner, PC
783 Springfield Avenue
Summit, New Jersey 07901
908-277-2410, ext. 24
Fax: 908-277-1374
Email: [email protected]
Website: www.summitlawyers.net


Original Message------

Miller v. Miller :  Moody's Composite Index on A-Rated Corporate Bonds, for the last  5  calendar years, straight line average? weighted average?  

------------------------------
Charles Abut Esq.
Hackensack NJ
(201)342-0404
------------------------------


Original Message:
Sent: 01-22-2015 19:18
From: David Perry Davis
Subject: Quick one? Current presumed return rate and source?

What's the current presumed return rate for calculating the imputation of income from a lump sum?

Party is to receive roughly $1,000,000 from a PI settlement.  For purposes of imputing interest income, what's the % return that a court should apply?  3.5%?  (I.e., $1,000,000 if invested would produce $35,000 per year?)

Source?   (Rule, case, statute)?

Thanks....

------------------------------
David Perry Davis, Esq.
112 West Franklin Avenue
Pennington, NJ 08534
Voice: 609-737-2222
Fax: 609-737-3222
http://www.FamilyLawNJ.pro
------------------------------

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