Things to know while handling sexual assault settlement
The mental, as well as the emotional scar caused by any kind of sexual abuse, can last for a lifetime and haunt the survivor for ages. Despite multiple efforts, the sexual abuse rate has been increasing constantly. This totally unacceptable scenario is a shame not only for a particular society but for the whole country as well. The number of female victims is clearly higher than the number of men facing these abuses. More effective ways need to be developed for empowering the victims and making legal help much more accessible to them.
Legal sexual assault charges:
Sexual abuse can take place in any form be it rape, attempted rape, unwanted sexual contacts or any kind of sexual threat. Seeking legal help from a sexual assault attorney in Toronto is highly recommended no matter how inconsequential you think the assault is. While specific laws can vary from state to state, it is advised to gather all the necessary information about law and punishments through your legal advisor. If found guilty, the punishment ordered by the judge mostly includes fines, other penalties and imprisonment where the prison term depends upon the degree of assault.
Tax planning tips for Attorney:
While representing your client’s case of sexual assault and approaching a settlement it is important to understand how things can turn for the settlement as well as your fee during the tax season. Generally, after receiving a settlement in the lawsuit, the client needs to pay a certain amount of tax, as the money received is counted as income. To avoid any unwanted surprises it is recommended to consult with tax professionals and lighten your tax burden.
In cases of sexual assault, before 2018 companies, attorney or plaintiff in court cases could take a tax deduction on the settlements, as it was counted as expenses. But with the new tax bill, any kind of dedications are now denied in confidential sexual assault settlements. The plaintiff now can’t receive a tax deduction on the settlement; even the attorney and the defendant can not receive any kind of tax deduction on legal fees and the payment to settle the case, respectively. The defendant now has to pay the settlement money, the legal fees and then the taxes on top of all this.
How can you reduce the tax burden?
With the new changing laws, along with a sexual assault lawyer it is recommended to hire a tax professional and deal conservatively with your settlement funds and analyze the situation to work out the best possible solution to lessen the tax blow. Establishing a qualified settlement fund can help you buy extra time to work with your representative and determine the tax expectations. It is advised to spread the settlement over manageable tax years in the form of the periodic payment. By this, the tax burden can be distributed over time and offer other benefits as well.
Overall, a proper analysis of tax season and division of settlement money for tackling any unwanted taxes is never a bad idea.