If you are flying a plane, the autopilot is a great device to help keep you on course during the flight. However, when a pilot’s expertise is critical in performing certain tasks – such as takeoffs, landings, monitoring air traffic – an autopilot is never a substitute for human judgment. In the purchase, sale, and leasing of real property, the industry has created its own version of the autopilot: fill-in-the-blank forms prepared by non-legal real estate trade associations.

An important change in the criteria that the courts use to establish the date of separation, “the end of the community,” has far-reaching impacts for couples that intend to separate or have already separated.

In rentals that are governed by rent control, courts will not look favorably at a notice and later attempt to evict if the notice appears to be pretext to conceal the true purpose of the eviction.

To avoid the hefty corporate and shareholder federal tax on distributions, many corporations decide to switch from C to S corporation status. However, if a C corporation elects to switch to S status, the S corporation will be subject to the built-in capital gains (“BIG”) tax at the highest corporate rate (presently 35%) on all appreciation on its assets at the date of conversion if there is a triggering event—usually a sale—during the "recognition period." Good news: the recognition period has been cut in half—from ten to five years.

Though it may seem counter-intuitive, preparing a prenuptial agreement or “prenup” actually can be very good for a relationship. It can help to place a couple on the same page, forcing them to address the future, their attitudes towards money, and how their financial affairs are going to be managed.

A 50/50 shareholder in an S corporation comprised of several different entertainment businesses wanted a corporate divorce from his co-shareholder. Under the settlement, certain corporate assets were to be transferred to one of the shareholders in exchange for all of his stock. The assets in question were worth more than $2.5 million. What’s wrong with this arrangement?  The answer is EVERYTHING.!!!