“Gray divorce” is a term that has become much more prevalent in society over the last few years, though it still isn’t commonly known. Gray divorce refers to older couples getting a divorce. There’s no definitive age at which something becomes a “gray divorce” nor is the term “gray divorce” a legal term that offers special or unique benefits. It is merely a moniker for older couples getting a divorce.
Gray divorce has been on the rise for a while now. In 2008, about 1 percent of every 1,000 married people aged 50 or more went through a divorce that year. Though that’s only 10 people out of 1,000, it also reflects a doubling of the statistic when compared to 1980.
So older people are getting divorced at a higher rate, and the population has only grown since then. gray divorce is a significant part of the divorce world, and people need to be aware of what kind of issues and matters need to be dealt with when you get a divorce at an older age.
Asset management and division is crucial. With so many assets that have been built up over lifetimes, these things are far more valuable at an older age than when you are younger. 401(k) plans, retirement accounts, other financial entities: these become massive assets in a gray divorce.
At the same time, your estate plan is an important part of a gray divorce. The many aspects that make up your estate plan — such as wills, trusts and life insurance — need to be amended and prepared for your post-divorce life.
Source: Vanguard, “How to deal with the financial challenges of late-life divorce,” Susan Brown, Accessed Oct. 9, 2014
The pet custody problem, and how to solve it
When it comes to divorce, there are many major issues that come into play that the spouses are prepared for. There are also numerous major issues that spouses aren’t prepared for when they deal with a divorce. Somewhere in the middle of these two realms is pet custody, an increasingly prominent divorce issue that can often throw spouses for a loop when dealing with their divorce.
Pets usually fall under the distinction of property, which, right off the bat, makes the situation very complicated. Since a pet usually is considered property, it is not uncommon for the pet to be given to just one of the spouses in property division. Sometimes the spouses want it this way; other times they don’t.
A good way to avoid this dilemma is to agree to a pet custody agreement early in the divorce process. This nips the issue in the early portions of the divorce, saving you time, stress and anxiety, while also ensuring that you get to see your pet.
If a pet custody agreement can’t be reached, then a messy situation arises where the spouses may have to prove to a court why they deserve the “property” in dispute. The spouses would likely try to establish their case by showing receipts for pet supplies and training. They could also call on witnesses who have knowledge of the spouses’ relationship with their pet. Photos and other documentation can play a role as well.
Pet custody is a serious issue, and it really does behoove the splitting parties to consider a swift and amicable solution to the problem.
Source: USA Today, “Pets increasingly at center of divorce battles,” Cameron Saucier, Aug. 24, 2014
This is not a joke: ‘divorce hotels’ are a thing
Have you ever heard of a “divorce hotel?” It’s about as simple as it sounds: an unhappy couples checks into a hotel for a weekend and, during the course of that weekend, they are able to finalize their divorce with some advisers. All it will cost you is thousands of dollars just to stay at the hotel, and possibly your chance at the divorce that you want (or arguably deserve).
We bring up the divorce hotel because a current program is under way between a hotel in New York and a company in Netherlands that specializes in divorce hotels. They are working together to expand the idea here in the United States. Who knows — maybe divorce hotels really will help out people in need of ending their marriage.
But we have two issues with the divorce hotel. First, having to finalize every detail in a divorce over one weekend seems very difficult. Maybe the divorce hotel caters only to couples who have hammered out many of the more complex details in their divorce before staying at the hotel. If not, we would caution people from every considering these hotels. Child custody, prenuptial agreements, property division: these are all very complex matters that require attention, detail and time to ultimately solve.
The other issue here is that since there is not much time to complete your divorce at one of these hotels, this divorce process could create new issues — both legally and personally. If you do ever consider a divorce hotel, make sure you read the fine print, and make sure you are prepared for what’s ahead.
Source: Huffington Post, “‘Divorce Hotel’ Provides A Quick Getaway… From Your Awful Marriage,” Brittany Wong, Sept. 12, 2014
Husband claims that he and his wife of 20 years weren’t married
The world of divorce tends to bring out the weird and the bizarre. Stories usually center around celebrity couples that are going through outlandish divorces that soak up the headlines. They may also center on every day people doing extraordinary things. You can file the following story somewhere between these two areas of divorce stories.
The son of one of the Minnesota Vikings part-owners, Michael Mandelbaum, is going through a divorce right now, triggered by his wife of 20 years. It would seem to be a pretty clear road from here: deal with the divorce in the best way possible for the spouse involved and their three children. However, Mandelbaum is making a claim that sounds audacious at first, but technically, could be correct: he says that he and his wife were never actually married.
The Mandelbaums held a Jewish wedding ceremony in New Jersey, and when they had the ceremony in 1993, it was held 16 days prior to the couple obtaining a marriage license. According to New Jersey law, a couple must obtain a marriage license before they are married. Michael Mandelbaum is hoping that this technicality invalidates his wife’s divorce filing.
Even though this may seem like a lousy response to a divorce filing, this is what divorce law — and really, much of law in general — is about. Technicalities are a huge part of the law. When something isn’t done the way the law says it should be done, then it can (and probably will) lead to consequences. In this case, it could lead to a dismissed divorce claim.
Source: Wall Street Journal, “Son of Minnesota Vikings Part-Owner Says He Wasn’t Legally Married to His Wife,” Yoni Bashan and Heather Haddon, Sept. 18, 2014
If you are considering divorce, we can help you
Let’s say that a couple that you know is going through some marital problems, and the couple admits to you that not only is this ongoing, but that they are considering filing for divorce. You gut reaction may be that the couple should try to do everything they can to fix their relationship, and indeed, this may be the right course of action. Every couple is different, and therapy or legal separation may help the couple realize that they should stay together.
However, the other side of the coin could also be true. Maybe divorce really is the best thing for this couple. Maybe moving on past this trying time in their life and starting new is just what they need.
We bring this up because someone people are repulsed by the idea of divorce, and there’s nothing wrong with that. But we should clarify something about divorce: it isn’t the “problem” that it is made out to be. Actually, divorce is a solution to a problem, with the problem being an unhappy marriage. If a couple is so upset with each other that it is affecting all aspect of each spouse’s life, then why stay together just because the stigma of divorce is that it is a “problem”?
It may be weird to think of it that way, but divorce truly is a solution for most couples who are considering it. And at Magner, Hueneke & Borda, we can help you get through this problematic time in your marriage by supporting you while you work towards the ultimate solution.
‘Gray divorce’ brings many unique issues to the table
“Gray divorce” is a term that has become much more prevalent in society over the last few years, though it still isn’t commonly known. Gray divorce refers to older couples getting a divorce. There’s no definitive age at which something becomes a “gray divorce” nor is the term “gray divorce” a legal term that offers special or unique benefits. It is merely a moniker for older couples getting a divorce.
Gray divorce has been on the rise for a while now. In 2008, about 1 percent of every 1,000 married people aged 50 or more went through a divorce that year. Though that’s only 10 people out of 1,000, it also reflects a doubling of the statistic when compared to 1980.
So older people are getting divorced at a higher rate, and the population has only grown since then. gray divorce is a significant part of the divorce world, and people need to be aware of what kind of issues and matters need to be dealt with when you get a divorce at an older age.
Asset management and division is crucial. With so many assets that have been built up over lifetimes, these things are far more valuable at an older age than when you are younger. 401(k) plans, retirement accounts, other financial entities: these become massive assets in a gray divorce.
At the same time, your estate plan is an important part of a gray divorce. The many aspects that make up your estate plan — such as wills, trusts and life insurance — need to be amended and prepared for your post-divorce life.
Source: Vanguard, “How to deal with the financial challenges of late-life divorce,” Susan Brown, Accessed Oct. 9, 2014
Property division tips for Wisconsin divorces
Where divorce is concerned, one of the most pressing property division concerns often has to do with real estate property, especially the marital residence. Both parties will have claim to this property, but one party will invariably get the house. The other party must be bought out in some way in order to release his or her claim on the property. Likewise, where mortgage loans are concerned, one party may bear the burden of a hefty loan even if he or she doesn’t live in the house, which may be a problem for future home purchases.
There are a number of options available for Wisconsin divorcees to address property division. Chief among these is refinancing to buy out an ex-spouse. If an ex-spouse contributed a certain amount of money or non-monetary benefits, a refinance could enable the staying spouse to cash out the dollar amount contributed by the ex-spouse and then directly pay the leaving spouse.
If this sort of agreement is not possible due to being underwater on a mortgage, it is also an option to receive gift money from a blood relative or immediate family member in order to buy out the leaving spouse. This can also help to offset any present gains in the home’s value that funds from a refinance would not be able to cover.
A divorce lawyer may be a valued partner in divorce proceedings where property division is a major issue. A lawyer may give advice regarding strategy before, during and after divorce proceedings. There are also several different types of agreements that may be negotiated to avoid having to refinance or sell a house, but these largely depend on airtight contracts. A lawyer may help to draft a divorce agreement that will stand up in court and is beneficial to a client’s financial future.
Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon, December 04, 2014
Divorce rate may be lower than previous estimates
Wisconsin residents may have heard that the divorce rate in the United States is as high as 50 percent. However, statisticians have noted in recent years that the rate of divorce is not as high as popular media suggests and that it may actually be dropping. Couples who got married in the 1990s reached their 15th anniversaries at a rate of about 70 percent, a landmark that only 65 percent of couples who married in the 1970s and 1980s reached. A New York Times report identified several possible reasons for the declining divorce rate.
Economists cited in the report suggested that the women’s movement of the 1970s changed the circumstances under which people marry, which may have had an effect on the divorce rate. Reasons for marrying now typically include love and common interests and passions. Many households have two incomes, and couples frequently share housekeeping and childcare duties. This is a shift from earlier decades when people more frequently married for economic reasons, and women typically did not work outside the home.
Today, the median ages at which people get married are 26 for women and 27 for men. In the 1950s, the median ages were 20 for women and 23 for men. This delay in marriage often allows couples to complete their educations and become more financially stable individually.
Though the divorce rate seems to be on a decline, many couples still seek divorces. The fact that both partners in many marriages contribute to their households financially means that couples tend to have more assets than couples in previous decades. Property division may be difficult if both people involved in a divorce have a stake in homes, vehicles and other assets. Family law attorneys may be able to help people come to equitable solutions regarding the division of assets during their divorces.
Source: The Huffington Post, “The Truth About The Divorce Rate Is Surprisingly Optimistic“, Brittany Wong, December 08, 2014
Ironing out tax deductions in a divorce agreement
As divorcing Wisconsin parents may know, making sure children feel secure and maintain a relationship with both parents is an important consideration. Sometimes, parents forget they will once again be paying taxes as a person who is single. Deciding which parent takes deductions for the dependent children may be decided before the divorce decree is finalized. Becoming acquainted with what the deductions are is important.
Child custody usually places the child in one household with visitation, or the parents may share physical custody equally. If one parent holds primary custody, that parent is the head of the household. However, it is possible for the custodial parent to allow the non-custodial parent to claim a child for tax purposes, and a waiver is used to accomplish this. In the latter case, the child’s time may be divided equally for six months with each parent. Parents cannot each share head of the household status for the purpose of dependent child tax deductions.
Deciding which parent claims a child as a tax dependent may set the stage for additional deductions. This may be worked out in the divorce agreement. Some parents alternate years by taking the $3,950 deduction per child or work out another plan. The IRS has its own requirements for claiming a dependent, and checking with an accountant may be a good idea.
Other credits are now possible. A single parent who earns up to $75,000 in adjusted gross income may take a $1,000 tax deduction per dependent child. If the parent uses childcare, he or she may deduct a certain amount.
An attorney may offer guidance concerning tax issues while a divorce agreement is being negotiated. An attorney might help by planning for future financial considerations such as tax deductions for dependents and making it part of the divorce arrangement.
Keeping the costs of a divorce down
Divorce can be an expensive endeavor for many Wisconsin couples whose marriages are ending, but there are ways to keep the costs under control. While individuals often do not have much control over their attorney’s average hourly rates, they can control how much work they ask the attorney to do. Keeping the billable hours down will result in a more affordable divorce. The key is learning what to have the lawyer handle and when to let things go.
One of the biggest mistakes made by individuals is getting caught up in the tiny details and trying to micromanage the parenting decisions made by the ex-spouse. Arguing over minor details like exact soccer time practices will only lead to a higher divorce bill. When a couple is able to come to agreements on these minor details on their own, then the overall cost will fall.
As individuals treat other with honesty and fairness, the amount of items that must be discussed in court and reviewed by attorneys decreases. In one reported case, a man’s attempt to avoid paying his wife spousal support resulted in roughly $300,000 in legal fees, and the wife was still eventually granted alimony. Agreeing to spousal support from the outset could have saved the man a great deal of time and money.
When dealing with such matters as property division, child custody and support arrangements, an attorney can help a client in negotiating an agreement with which both parties are in accord. Legal counsel can provide valuable guidance throughout the process and help clients avoid mistakes. The clients can in turn keep costs down by being more flexible and reasonable when working through the divorce process.
Source: CNBC, “How to get divorced without breaking the bank”, Susan Caminiti, Feb. 9, 2015
The factors that influence spousal maintenance in divorce
In many divorces, spousal maintenance is a major issue. Very often, one spouse has greater financial stability and earning capacity than the other spouse. In those instances, a court may find that it’s appropriate for the wealthier spouse to make regular maintenance payments to the other spouse. These payments can be either indefinite or for a limited period of time. In Wisconsin, there’s no standard formula for calculating spousal maintenance. Rather, there a number of factors that a court can consider.
One of the biggest factors is the length of the marriage. Generally, the longer the marriage, the more likely it is that maintenance may be appropriate. The age and physical health of both spouses is also considered. Specifically, a court may look at whether each spouse is physically able to work and generate income. Another important factor is the property division under the divorce agreement. If the less financially secure spouse is receiving a substantial amount of assets, that may mitigate the need for further maintenance.
Finally, the court will consider a number of factors to determine whether a spouse is capable of producing income and, if so, when he or she may be able to do so. The court may look at whether a spouse sacrificed his or her career for the benefit of the other spouse. An example would be a spouse who stayed at home to watch children so the other spouse could work. Another example may be a spouse who sacrificed his or her own education for the benefit of the other’s education or career.
In many cases, a couple can reach an agreement on maintenance before the issue even makes it to court. In other situations, though, a couple may need a court to decide on the issue. In either scenario, an individual may benefit from consulting with an experienced divorce attorney.
Source: Wisconsin State Legislature, “CHAPTER 767: ACTIONS AFFECTING THE FAMILY”, accessed on Feb. 17, 2015