Gleichenhaus, Marchese & Weishaar, P.C. FindLaw IM Template 2026-04-07T16:39:10Z https://www.gmwlawyers.com/feed/atom/ WordPress /wp-content/uploads/sites/1101256/2019/03/cropped-site-icon-1-32x32.jpg On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[What is a “statement of net worth” in a New York divorce?]]> https://www.gmwlawyers.com/?p=51705 2026-04-07T16:39:10Z 2026-04-07T16:39:10Z Defining the statement's scope A statement of net worth is a sworn financial disclosure that requires you to report your total income from all sources, including employment, self-employment, rental income and investment returns. Because you sign this document under penalty of perjury, it must provide a complete view of your entire financial profile, encompassing both marital and separate property. The court expects different levels of detail depending on what you report. You may estimate everyday living expenses within reason, but you need exact numbers and supporting records for income, assets and debts. More complex holdings, such as trusts, stock options or closely held businesses, often require a professional valuation to determine their true worth.

Understanding its weight in your divorce

New York follows an equitable distribution system, which means that the court will divide your marital property fairly but not necessarily equally. Judges look at factors such as how long the marriage lasted, each spouse’s financial contributions and each person’s situation after the divorce. The statement of net worth serves as the starting point for that review. When you and your spouse submit your disclosures, the court reviews them side by side for comparison. In high-asset cases where wealth spreads across multiple businesses, accounts or even countries, the statement can reveal gaps or conflicts that draw close attention from attorneys and forensic accountants. Spousal maintenance also relies on this document. Courts examine both spouses’ reported income and expenses when assessing whether support is appropriate and at what level, making precision in those sections directly relevant to the outcome.

Avoiding the common filing mistakes

One of the most frequent errors is undervaluing or omitting assets. If a spouse intentionally conceals a cryptocurrency wallet, for example, a New York judge could penalize the offending spouse by awarding that entire hidden asset to the other party. Overstating expenses creates similar risks. Forensic accountants and opposing counsel routinely compare what you list on your form against your actual bank records, and figures that do not line up with your historical spending patterns tend to raise questions about the rest of your disclosure. There is also a procedural deadline to keep in mind. The state requires you to file and exchange your completed statement at least 10 days before your preliminary conference, and falling behind on that timeline can slow down the process.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[How New York farm tax debts work in a Chapter 12 plan]]> https://www.gmwlawyers.com/?p=51701 2025-12-26T15:20:39Z 2025-12-26T15:10:23Z When you consider Chapter 12 bankruptcy in New York, you may wonder how tax debts fit into the larger picture. Rather than focusing on what led to the filing, it often helps to understand how a confirmed Chapter 12 plan may handle tax obligations moving forward.

Why does tax treatment matter in a Chapter 12 plan?

A Chapter 12 plan typically organizes how you repay most debts over time. Tax debts often receive different treatment than everyday bills because state and federal rules apply special classifications. Understanding those differences may help you set more realistic expectations as your case moves toward confirmation. The way a plan handles taxes can affect both monthly payments and long term planning. For many farmers, that makes tax treatment a key part of the overall strategy.

How do priority and secured farm tax debts usually get paid?

Not all farm taxes receive the same treatment. Recent income taxes often fall into a priority category. In practical terms, that usually means you pay the full principal amount through the plan, although payments often spread out over several years. Property taxes work differently. Because they usually attach to land or buildings, the law generally treats them as secured debts. To keep the property, you typically need to pay the full amount owed. Chapter 12 often allows flexibility in timing, which may help you align payments with harvest seasons or other predictable income periods.

Will you have to pay interest and penalties on farm taxes?

Interest and penalties often cause concern. For secured debts such as property taxes, plans commonly include interest to account for delayed payment. That reflects the cost of paying over time rather than immediately. Priority income taxes often receive different treatment. In many cases, you pay only the principal amount during the plan, without added interest. Penalties may receive separate treatment. Depending on their nature and timing, the plan may treat penalties like general unsecured debts, which sometimes results in paying less than the full amount.

Can older farm tax debts receive different treatment?

Older income tax debts may qualify for more flexible treatment, depending on timing. If those taxes fall outside certain government lookback periods under the Bankruptcy Code, they may count as general unsecured debts. In that situation, the plan may require payment of only a portion of what you owe. Accurate filing and assessment dates matter here. Small timing differences can change how the plan treats older tax debts.

How do you pay farm taxes during the Chapter 12 plan?

Most Chapter 12 plans last three to five years. During that time, you make regular payments that cover older tax debts along with other obligations. Many farmers find that this steady structure provides breathing room. You usually must stay current on new taxes that come due after filing. Staying current often helps keep the plan moving forward and reduces the risk of dismissal.

Looking ahead with greater clarity

Every farm operation faces different challenges, and Chapter 12 plans vary widely. Understanding how income taxes, property taxes, interest and penalties may fit into a farm bankruptcy plan can help you evaluate your situation with greater clarity and fewer surprises.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[Does Chapter 12 stop farm foreclosure proceedings?]]> https://www.gmwlawyers.com/?p=51699 2025-09-30T11:49:04Z 2025-09-30T11:49:04Z What is Chapter 12 bankruptcy? Agricultural operations confront unique financial challenges tied to seasonal income, weather conditions and market fluctuations. This led to the creation of Chapter 12, specifically for family farmers and family fishermen, in 1986. If you qualify for Chapter 12, you can keep running the farm while you propose a plan to repay debts over three to five years.

How does Chapter 12 stop foreclosure proceedings?

Chapter 12 triggers an "automatic stay" the moment you file, stopping all collection actions, including foreclosure proceedings. This legal mechanism typically applies to:
  • Mortgage foreclosure sales
  • Equipment repossessions
  • Utility shutoffs
  • Wage garnishments
  • Creditor harassment and collection calls
In New York, this federal protection preempts state foreclosure laws. New York typically requires a judicial foreclosure process that can take several months, but Chapter 12 halts this process immediately upon filing. The stay remains in effect throughout your bankruptcy case, giving you time to propose and implement a repayment plan. This breathing room allows you to negotiate better terms and potentially save your farm.

Who is eligible for Chapter 12?

If you are a family farmer or family fisherman, or a corporation or partnership engaged in farming or fishing, you can qualify for Chapter 12 if you meet the criteria:
  • Debt composition: For farmers, at least 50% of fixed debt must be related to farming. For farmers, at least 80% must arise from the commercial fishing operation.
  • Income: More than 50% of gross income must come from the farming or fishing business. For farmers in particular, this requirement generally must be met during the applicable look‑back period for the preceding tax years.
  • Debt limit: Up to $11,097,350 for farmers, and up to $2,268,550 for fishermen.
Detailed financial documentation and proof of your farming income are key documents when filing. You must also demonstrate that you can make the proposed payment plan while maintaining your agricultural operations. Creditors then have the opportunity to object to the plan. If the court approves the plan, you make payments according to its terms, and upon successful completion, your eligible debts are discharged.

Protecting your farm’s future

For many family farms, Chapter 12 offers relief that ordinary workouts do not provide. The stay can stop a scheduled foreclosure sale, yet maintaining that safeguard depends on meeting deadlines, proposing a feasible plan and providing adequate protection to the lender. If you are weighing this step, consider how professional legal guidance can help you make informed decisions about your farm’s future. A tailored legal strategy can turn a temporary halt into a workable path forward.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[Spousal support rules every high earner should know during divorce]]> https://www.gmwlawyers.com/?p=51696 2025-07-23T13:15:07Z 2025-07-23T13:15:07Z How New York calculates spousal support New York uses a formula to calculate spousal support, but only up to a set income cap. As of March 1, 2025, the cap is up to $228,000 as outlined in the Maintenance Guidelines Act. The formula applies to:
  • The payor’s income up to the cap
  • The difference between payor and payee earnings
  • Both temporary and post-divorce support
But not every support decision fits neatly into the established formula.

How courts handle incomes above the cap

If your income exceeds the cap, the court may go beyond the formula. Judges have discretion to decide whether more support is justified. At that point, decisions rely less on numbers and more on the story your financial life tells. They may consider:
  • Length of the marriage
  • Standard of living during the marriage
  • Contributions to your spouse’s career
  • Tax consequences of support
  • Health and earning capacity of both spouses
These factors help the court assess fairness. The goal isn’t to penalize you for success – it’s to reflect the financial realities shaped during the marriage. Depending on your case, obligations may extend beyond what the formula suggests.

Negotiate without losing ground

Divorce can shake what once felt secure – especially when finances are involved. But behind the numbers lies a chance to reclaim balance. Spousal support isn’t about losing money or your ground. It’s about navigating a system that doesn’t always account for the full picture. Courts weigh subjective factors, and what’s “fair” becomes open to interpretation. That’s where legal guidance becomes critical. You need someone who understands how to frame your financial story, challenge assumptions and protect what you’ve built.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[Can unpaid taxes trigger bankruptcy?]]> https://www.gmwlawyers.com/?p=51693 2025-04-23T15:39:03Z 2025-04-23T15:39:03Z Falling behind on taxes can cause serious financial stress, especially for farmers. Unpaid taxes often push small farms into considering bankruptcy. Chapter 12 bankruptcy offers a way for eligible family farmers to reorganize their debt and keep their operations going.

How tax debt affects family farms

Farms run on tight margins. One bad season, unexpected repair, or dip in crop prices can lead to missed tax payments. The IRS or New York State can place liens on farm property or start collection actions. These actions may include seizing assets or garnishing income, putting your livelihood at risk. Chapter 12 bankruptcy gives you breathing room. It stops collection actions immediately and lets you propose a repayment plan. The plan spreads payments over three to five years, allowing you to catch up while continuing to farm.

Why Chapter 12 works for farmers

Chapter 12 is designed specifically for family farmers and fishermen. It’s more flexible than other chapters. You don’t need to sell off land or livestock to qualify. It allows you to restructure both secured and unsecured debt, including certain tax obligations. New York farmers often benefit from this option because it’s tailored to the seasonality and unpredictability of agricultural work. As long as more than 50% of your income comes from farming, and your debts are below the legal limit, Chapter 12 could help you keep your land and stay operational.

Taxes and bankruptcy discharge rules

Not all taxes go away in bankruptcy. But Chapter 12 allows for repayment under manageable terms. Older income taxes—if filed on time and meeting specific criteria—may be dischargeable. Payroll taxes and recent returns usually aren't. You can still propose a plan that pays them off gradually, without pressure from tax agencies.

Get ahead of tax trouble

If tax debt is growing and your farm is feeling the strain, you have options. Bankruptcy isn't the end—it's a financial tool. Chapter 12 provides a way to reset, protect your land, and continue farming while addressing tax issues.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[How can prenuptial agreements protect family farms in a divorce?]]> https://www.gmwlawyers.com/?p=51682 2025-01-16T16:26:34Z 2025-01-16T16:26:34Z Prenuptial agreements safeguard valuable assets, including family farms, in the event of a divorce. They can play a key role in preserving a farm's legacy and functionality across generations.

Protecting farm assets

Family farms often consist of significant resources, such as land, equipment, and livestock. Without proper legal protections, these assets can be divided during divorce proceedings. A prenuptial agreement specifies which assets remain non-marital property. By clearly defining ownership of the farm and its components, a prenup minimizes disputes over asset division.

Preserving family legacy

Farms passed down through generations hold sentimental and financial value. A prenuptial agreement can help ensure the farm stays within the family, protecting it from division or sale. For example, the agreement might state that the farm remains the property of one spouse, regardless of marital status.

Addressing debts and liabilities

Divorces can complicate financial obligations tied to the farm, such as loans or other debts. A prenuptial agreement can outline how to handle liabilities, preventing the farm from being at risk due to shared debts. This clarity protects the business and ensures smooth operations during a challenging time.

Customizing terms for farm operations

Farming operations often involve intricate details, such as income streams, partnerships, and day-to-day responsibilities. A prenup can include specific terms that address how these aspects will be managed or divided if the marriage ends. This ensures continuity for the farm and provides a clear framework for handling future disputes.

Strengthening farm security

Prenuptial agreements assure families that their farm will remain protected, even during unforeseen challenges, such as divorce. They offer a way to safeguard livelihoods and legacies while minimizing conflict. Families with valuable assets, like farms, benefit from taking proactive legal steps to maintain what they have worked hard to build.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[Signs your farm might benefit from Chapter 12 bankruptcy]]> https://www.gmwlawyers.com/?p=51680 2024-10-08T18:02:45Z 2024-10-14T18:02:34Z From unpredictable weather to fluctuating market prices, many factors can impact your farm's financial health. If you're struggling to keep up with debts and facing the possibility of foreclosure, Chapter 12 bankruptcy might be a viable option to help you regain control of your finances.  Consider some signs that your farm might benefit from this legal process for debt relief. 

You're falling behind on loan payments

Chapter 12 is a specialized form of bankruptcy specifically for family farmers and fishermen, offering a way to restructure debts while continuing operations. One of the clearest indicators that your farm might need Chapter 12 bankruptcy is if you're consistently missing loan payments. This could include falling behind on equipment loans, struggling to make mortgage payments on farmland, or being unable to pay off operating loans for seeds, fertilizer, or other supplies. If you find yourself in this situation, figure out if Chapter 12 can help by allowing you to create a repayment plan that better aligns with your income cycle. This means you can make payments when you have money coming in from harvests, rather than staying locked into a rigid monthly schedule. Likewise, if you're facing the threat of foreclosure on your farm property or equipment, farm bankruptcy can:
  • Halt foreclosure proceedings, giving you time to reorganize your debts
  • Allow you to keep your essential farming equipment and land
  • Provide an opportunity to "cram down" secured debts to the current market value of the collateral
This protection can help you maintain your livelihood and preserve your family's farming legacy.

You're considering selling off assets to pay debts

If you're thinking about selling off parts of your farm or equipment just to keep up with debt payments, it might be time to consider Chapter 12. This type of bankruptcy can help you avoid selling off vital assets needed for farm operations that could help you restabilize financially. You may also be able to discharge some unsecured debts at the end of your repayment plan. Restructuring your debts can also make them more manageable. Remember, Chapter 12 bankruptcy is a tool to help family farmers weather financial storms and emerge stronger. If you're experiencing any of the preceding challenges, it is worth exploring this option to protect your farm and your future in agriculture.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[Best strategies for valuing a business for a divorce settlement]]> https://www.gmwlawyers.com/?p=51678 2024-07-18T16:18:06Z 2024-07-18T16:18:06Z Divorce is complex, and valuing a business for a divorce settlement can be difficult. It's essential to use accurate and fair methods to determine the value. Here are some of the best strategies to consider.

Professional business valuation

Hiring a professional business valuator is one of the most reliable ways to determine a business's value. These experts use various methods to assess the company's worth, including analyzing financial statements, market conditions, and future earning potential. A professional valuation provides an unbiased and thorough analysis, which can be crucial in reaching a fair settlement.

Earnings multiplier method

The earnings multiplier method calculates a business's value based on its earnings and an industry-specific multiplier. This method considers the company's profitability and growth potential. The multiplier varies depending on the industry and market conditions. By multiplying the business's earnings by this figure, you can estimate its value.

Asset-based approach

The asset-based approach focuses on the business's total assets and liabilities. This method involves listing all the company's assets, such as equipment, inventory, and real estate, and subtracting any liabilities, like debts and obligations. The resulting figure represents the business's net worth. This approach is beneficial for companies with significant tangible assets.

Market comparison

The market comparison method involves comparing the business to similar companies recently sold. You can estimate your company's value by analyzing the sale prices of comparable businesses. This method requires access to accurate and relevant market data, making it essential to research thoroughly.

Navigate your options

Valuing a business for a divorce settlement requires careful consideration of various strategies. Knowing effective ways to determine a fair and accurate value is essential. These strategies can help ensure a fair division of assets during a divorce.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[FAQs about Chapter 12 bankruptcy]]> https://www.gmwlawyers.com/?p=51673 2024-04-16T23:22:11Z 2024-04-16T23:22:11Z Who qualifies for Chapter 12 bankruptcy? To qualify for Chapter 12 bankruptcy, individuals or married couples must engage in a commercial farming or fishing operation. The debtor's total debts must not exceed certain limits, and at least 50% of their gross income must come from farming or fishing activities. This ensures that the relief provided by Chapter 12 is available only to those who primarily depend on farming or fishing for their income.

What makes Chapter 12 different from other types of bankruptcy?

Chapter 12 is similar to Chapter 13 bankruptcy in that it allows debtors to keep their properties and pay off debts over a period of time. However, it has higher debt limits and more flexible payment terms tailored to the seasonal nature of farming and fishing income. This flexibility makes it a suitable option for debtors whose income streams are not consistent throughout the year.

How does the Chapter 12 process work?

When a debtor files for Chapter 12 bankruptcy, they must propose a repayment plan to make installments to creditors over three to five years. This plan must demonstrate how creditors will receive at least as much as they would under a Chapter 7 liquidation. The plan's feasibility depends on the debtor's seasonal income, so it must align with their earning patterns.

What are the benefits of filing for Chapter 12?

The primary benefit of Chapter 12 bankruptcy is that it helps family farmers and fishermen continue their operations while managing their debts. It prevents the forced sale of assets by allowing debtors to reorganize their finances in a way that accommodates their unique financial challenges. Additionally, filing for Chapter 12 can halt foreclosure proceedings on their properties, providing much-needed relief during financial distress. Chapter 12 bankruptcy offers an important lifeline for family farmers and fishermen, helping them navigate through financial turmoil while sustaining their livelihoods. Understanding these basics can help those in the agricultural and fishing industries determine if this type of bankruptcy might be right for them as they seek to restore and maintain financial stability.]]> On Behalf of Gleichenhaus, Marchese & Weishaar, P.C. <![CDATA[4 ways to protect your small business during divorce]]> https://www.gmwlawyers.com/?p=51642 2024-01-18T19:21:21Z 2024-01-18T19:21:21Z 1. Clear business ownership structure Establishing a transparent business ownership structure is necessary to protect your small business. Clearly define each spouse's role and responsibilities within the company. This clarity ensures that the division of assets during a divorce is more straightforward, minimizing potential disputes.

2. Accurate financial documentation

Maintaining accurate financial records is important for protecting your small business. Clearly document business income, expenses and assets. This not only aids in the equitable division of assets but also ensures transparency during divorce negotiations. Accurate financial documentation is a valuable resource for both spouses and can expedite the legal process.

3. Business valuation

Conducting a thorough business valuation helps determine the true worth of your venture. A professional business valuation helps avoid disputes over the business's value during divorce proceedings. It provides a fair and objective assessment, guiding the equitable division of assets.

4. Succession planning

Develop a succession plan for your small business to address what happens in the event of a divorce. Define who will take over the business or its management if one spouse exits. A well-thought-out succession plan ensures the continuity of the business and minimizes disruptions in operations. Even though New York had a divorce rate below the national average in 2021, at 2.2 divorces per 1,000 population, people grow apart. For business owners, strategic planning can help them navigate divorce proceedings with greater confidence and protect their ventures.]]>