News

PMK Partner R. Laree McGuire spoke with host Raelene Tenno on ThinkTech Hawaii’s Condo Insider on Thursday, February 24, 2022. McGuire discussed SB 2876 De Minimis Violations and HB 1784 Building Inspections and how these changes will impact condominiums and planned community associations in the State of Hawaii.

SB 2876 prohibits planned community associations, condominium associations, or their boards of directors from expending association funds to enforce de minimis violations of association rules or regulations that do not pose risks to the health and safety of other members, units, or unit owners and do not decrease their value.  HB 1784 will require periodic inspections of certain walls and appurtenances of buildings five or more stories in height. It requires the state building code council to review the periodic inspection reports.

Tax season is upon us, so now is the time to begin thinking about how financial aspects of your life, such as child-related expenses, can impact your taxes.  

 Here are some general rules of thumb when it comes to taxes and dependent expenses and benefits: 

• Government Economic Stimulus Payments – These are not taxable. The government pays the stimulus to the parent who claims the child as a dependent for their taxes. However, both parents may choose to share it, especially if they have joint custody. 

• Child Support – Child support is not taxable. The tax is paid when it is initially received by the party who earned the income. The support payment is not taxed and is not reported on tax returns as taxable income.  

• Claiming a Child as a Dependent – The parent who has primary custody of the child usually claims them as a dependent on their taxes. There are exceptions, such as if the parents agree to a different arrangement or if a judge orders an alternative situation. In those cases, the IRS usually requires the custodial parent to sign a waiver recognizing that the other parent is claiming the child. 

• Tax Deductions for Educational Expenses – There are potential tax credits and/or deductions for some education expenses and for contributing to college savings plans, such as a 529 college savings plan.  

Some child-related tax benefits are capped or reduced for higher-income earners. In those cases, a parent may be able to use those benefits as an additional value to allocate in a divorce or custody proceeding to assist with a settlement.  

Seth Harris, a senior associate at the PMK family law division, is available to help you work through any issues related to divorce and child custody, as well as all family law needs. For more information, go to https://www.hawaiilegal.com/practice-areas/family-law-2/. 

Note: The attorneys of PMK do not provide tax advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax advice. You should consult your own tax advisors before engaging in any action. 

The Family Court is seeing an increased backlog of unresolved cases, especially because of the complications created by the COVID-19 pandemic. Hearings – even those deemed urgent – are being scheduled months out. Even more so than in the past, the court is encouraging people to seek alternative dispute resolution (ADR) to avoid what can be a months-long wait for a hearing. Alternative dispute resolution can also be less expensive than going through the Family Court.  

Parents or spouses can use alternative dispute resolution to navigate divorces, and custody or child support disputes.  

Forms of alternative dispute resolution include:  

• Mediation – The parties work together with a trained mediator to facilitate conversation and resolution.  
• Arbitration – The parties hire a family law attorney or expert who acts as a private judge to resolve the remaining disputes.   
• Custody Issues – Third-party evaluators, such as a Family Court-approved, licensed,  trained custody evaluator, can determine what arrangement is in the best interest of the child. 

 Seth Harris, senior associate at the PMK family law division, can help determine if alternative dispute resolution is a good option for you. For more information, go to https://www.hawaiilegal.com/practice-areas/family-law-2/. 

PMK partnered with HUGS to sponsor a Dad’s Night Out on December 15th.  HUGS is an organization that helps strengthen Hawaii’s families and improve their quality of life as they face the emotional and financial hardships of caring for a seriously ill child.

The dads enjoyed a virtual night of fun playing “Are You Smarter Than a Fifth Grader?” The teams and had fun testing their trivia skills with a little friendly competition and enjoyed a takeout meal from Zippy’s. They were thankful to have a night with others in similar situations and some much-needed social time.

To learn more about HUGS, visit https://www.hugshawaii.org/

As in year’s past, PMK has elected to close our office from December 24th – January 2nd to allow our staff and associates to spend time with their families. We wish you a very happy holiday and look forward to working with you in 2022. Mele Kalikimaka and Hau’oli Makahiki Hou!