The current assignment I am working on is a research project and I am having trouble getting started. I am to prepare a tax memo and and I am looking for issues and scenarios I could research in the given situation:

John and Carrie Smith have been married for 20 years and have three children, Sandra, age 18, and twin boys, Mark and Joe, age 12. Carrie has an undergraduate degree in accounting and worked in public accounting while Harry was obtaining his law degree. Five years ago, they quit their jobs and started BusTech, a C corporation that develops legal, and tax software specifically for accountants and lawyers with high-tech clients. John and Carrie work more than full time at BusTech and have received only modest salaries. No dividends have been paid. The business has finally started to make substantial profits, but success, unfortunately, has brought problems. John and Carrie have very different opinions regarding BusTechs future. Harry would like to continue to reinvest most of the profits for the development of software for other specialties, whereas Carrie would like to focus on the lines they have and enjoy their success by distributing some of the profits. Since they cannot come to an agreement, the earnings are being retained, and no new software is being developed.

These business disagreements are having a disastrous effect on their marriage. The only solution John and Carrie see is to divorce. As might be expected, John and Carrie cannot decide how to separate their ownership interests in BusTech. Some options they are considering include redeeming Carrie's stock, having John and/or the children buy the stock, or dividing the business in some manner between John and Carrie.

One thing Carrie has decided is to fulfill a lifelong dream of obtaining a doctoral degree in accounting. She will be entering a Ph.D program in the fall, by which time the divorce should be final. Since Sandra also will be attending college, she will have in an apartment with her mother. John will keep the house, and the boys will have with him. John will pay Carrie alimony and child support while she and Sandra are in school. The terms and amounts of these payments will be determined at the time the divorce is final.