Safe Harbor 401(k) – A safe harbor 401(k) is similar to a traditional 401(k) plan, but the employer
is required to make contributions for each employee. The employer contributions in Safe Harbor
401(k) plans are immediately 100 percent vested. The Safe Harbor 401(k) eases administrative
burdens on employers by eliminating some of the complex tax rules ordinarily applied to traditional
Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) – A plan in which
a small business with 100 or fewer employees can offer retirement benefits through employee
salary reductions and matching contributions (similar to those found in a 401(k) plan). It can be
either a SIMPLE IRA or a SIMPLE 401(k). SIMPLE IRA plans impose few administrative burdens on
employers because IRAs are owned by the employees and the bank or financial institution
receiving the funds does most of the paperwork. While each has some different features, including
contribution limits and the availability of loans, required employer contributions are immediately 100
percent vested in both.
Section 71 Payments – Section 71 is a Section of the IRS Code, which states that alimony, and
separate maintenance payments generally are taxable to the recipient and deductible from gross
income by the payor. These payments can be treated as alimony for tax purposes if;
Additionally, Section 71 requires that if the payor of alimony want to deduct alimony payments over
$15,000 per year, payment must last for at least three years. If this requirement is not met,
payments are subject to recapture rules.
Separate Property – Generally considered any property owned before marriage (earned or
acquired by gift or inheritance), acquired during the marriage by one partner using only that
partner’s separate property, or earned after a formalized agreement.
Separation – where the parties “live separate and apart” and has important consequences for
support and the characterization of property. Property acquired after the date of separation is
Service – Providing a copy of the papers being filed to the opposing party.
Simplified Employee Pension Plan (SEP) – A plan in which the employer makes contributions on
a tax-favored basis to individual retirement accounts (IRAs) owned by the employees. If certain
conditions are met, the employer is not subject to the reporting and disclosure requirements of
most retirement plans. Under a SEP, an IRA is set up by or for an employee to accept the employer’
Sole Custody – In Sole custody the custodial parent has the power to make all decisions, both
day-to-day and major decisions concerning the child’s health, education and welfare without
consulting or notifying the non-custodial parent.
Spousal Support (in other jurisdictions referred to as Alimony or Maintenance – Periodic
payments (not child support) to a former spouse for support at the former marital standard of living.
The paying spouse may deduct these payments, and the receiving spouse must declare them as
income if they are “periodic” (payable over a definite period) and meet the criteria outlined under
IRS Code Section 71.
Once an underlying action for dissolution of marriage or legal separation has been filed, the Court
can address the issue of spousal support in the underlying action. There is no legal obligation to
pay spousal support by one parent to another other until there is a Court order. In limited
situations, the Court can order spousal support in a nullity action. A Court order is obtained by
filing a hearing.
The judge will consider many things when deciding what spousal support to order. Examples of
some things the judge may consider are:
Either spouse can later ask the judge to change the support amount if the situation changes.
Spouse – Husband or wife.
Stipulation – An agreement between the parties or their counsel, usually related to matters of
Subpoena – A court order requiring a person’s appearance in court or depositions as a witness or
to present documents or other evidence for a case.
Summary Dissolution of Marriage - This action can be used by a married couple to end the
marriage. This action is very limited and can only be used by a married couple which meets the
The parties have been married less than five (5) years as of the date the action is filed.
There are no children together born before or during the marriage, including by adoption, and the
Wife, to her knowledge, is not pregnant as of the date the action is filed.
Neither party has any interest/ownership in real estate.
The married couple jointly signs the necessary paperwork and the originals are filed with the Court.
After waiting six (6) months, either party can file the document requesting that the marriage be
Summary Plan Description – A document provided by the plan administrator that includes a plain
language description of important features of the plan, e.g., when employees begin to participate in
the plan, how service and benefits are calculated, when benefits become vested, when payment is
received and in what form, and how to file a claim for benefits. Participants must be informed of
material changes either through a revised Summary Plan Description or in a separate document
called a Summary of Material Modifications.
Summons – A Summons notifies a spouse of his/her rights and obligations in responding to the
Complaint for Divorce.
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