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

/by

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

/by

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.

/by

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

/by

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

/by

Avoiding credit mistakes in a divorce

Couples in Wisconsin who are divorcing may want to know how they can make sure their credit is protected. There are several steps that can be taken prior to and during divorce that will help.

It is important for those who are considering divorce to have a good understanding of their finances and their obligations. This includes knowing which accounts are joint and what kinds of debts they may share. Opening an individual account for depositing paychecks is a good idea if a divorce is likely. Many people may not realize that regardless of what a divorce decree says, they are responsible for any accounts that their name is on. That means that if the other spouse agrees to take on a debt but the debt remains in the name of both individuals, there may be an impact on both of their credit reports if the debt is unpaid. Collections agencies may also pursue either or both parties for jointly-held debts.

In addition to opening up a bank account, those who are contemplating a divorce should also consider obtaining their own credit cards. This will allow them to begin establishing credit in their own name. They should also make sure their information is kept confidential. This may include changing PINs and passwords.

Even if spouses go into a divorce with good intentions, there may be conflicts over money and debt. Protecting assets in these ways can help secure the financial situation for each spouse before moving ahead with negotiations. A lawyer may be able to help individuals understand their financial picture and how issues like property division might be resolved. Divorcing couples should also keep in mind that ensuring that the credit of both spouses remains healthy is in everyone’s best interests going forward.

Source: NerdWallet, “4 Ways to Protect Your Credit During and After a Divorce”, Anisha Sekar, Feb. 13, 2015

/by

Lower divorce rates for nurses, other health care professionals

Medical professionals in Wisconsin may be interested to learn that they might be less likely to get divorced than people who do not work in the health care field. According to a study published in February, while 35 percent of people working in fields other than health care are divorced, only 23 percent of pharmacists and 24 percent of doctors have seen their marriages end. Dentists, hospital administrators and nurses are also divorced at a lower rate ranging from 25 to 33 percent.

The study extended from 2008 to 2013 and involved over 240,000 medical professionals as well as people in other occupations. Researchers say they did find a disparity between men and women who were physicians. Women doctors had a divorce rate that was 1.5 times higher than that of male doctors. Furthermore, female doctors who worked in excess of 40 hours per week were more likely to be divorced than their counterparts who worked less. The opposite was true, however, for male doctors.

The study’s lead author reported that women struggle more with a balance between their personal life and their professional obligations and said that more research should be done to examine the issue more closely. However, the senior study author pointed out that overall, the research demonstrates that individuals who are interested in working in the medical field but are concerned that the profession might have a negative impact on their personal lives may have little cause for worry.

Medical professionals who are going through the divorce process may be dealing with issues that are common in their profession. For example, since some medical jobs pay high salaries, there may be many assets that need to be divided. One spouse may be a stay-at-home parent, and this might result in a child and spousal support order.

Source: U.S. News & World Report, “Doctors Less Likely to Divorce, Study Finds”, Robert Preidt, Feb. 19, 2015

/by

Valuing art as part of marital assets in divorce

Wisconsin artists who are getting a divorce should be aware that artwork created during the marriage counts as a joint marital asset. This could apply to writers and filmmakers as well as visual artists, as copyright is included in this assessment. Attempting to conceal these assets may lead to the other spouse being awarded anywhere from half to the full value of the art.

However, as with all marital assets, negotiation might be possible. One solution may be to work out arrangements that allow the artist to retain rights or decrease their payments to the other spouse over time. For example, one spouse could attempt to keep ownership of their work while giving their spouse a half-interest in royalties. Another example is giving one’s spouse a percentage of revenue and decreasing this percentage over time.

Unsold artwork may largely have speculative values, and in some cases, these pieces might have a higher value for the artist than for the artist’s spouse. In such a case, the other spouse could agree to exchange other assets for the artwork. For example, an aspiring artist who has only sold a few paintings and was only married for two years might be able to keep all rights to the work in exchange for the jointly owned car. On the other hand, a filmmaker married for a decade with children and a large body of work may have to deal with more complexities.

Artists and their spouses might want to work with attorneys to negotiate property distribution. There may be a great deal of variation in how this is handled, depending on the artist’s career and the length of the relationship. An attorney can examine a couple’s specific case and advise their client on the best course of action to take regarding property division and other divorce-related issues.

Source: The Huffington Post, “ For Artists, Divorce Means Splitting Up the (Art) Assets ,” Daniel Grant, March 3, 2015

/by

Divorce and Social Security benefits eligibility in Wisconsin

People who are either preparing to divorce or who have already divorced may wonder how their eligibility for Social Security benefits may be impacted. If a person has not contributed enough on their own for benefits eligibility, they may want to apply for either spousal or survivor’s benefits based on their former spouse’s contributions. In order to do so, however, the person must first be eligible.

People are eligible for spousal benefits if their marriage lasted at least 10 years and they have remained single. Remarriage prevents people from applying for spousal benefits based on their former spouse’s contributions, even if their marriage lasted 10 years. Instead, the person would be eligible for spousal benefits based upon their new spouse’s contributions.

The rules regarding survivor’s benefits are more generous. In the event a former spouse dies, the surviving spouse is not required to meet the 10-year requirement if they are caring for a child who is either a minor under the age of 16 or who is disabled. The remarriage rule does not apply for those who remarry after age 60. People in that age group may still be eligible to apply for survivor’s benefits based on their former spouse’s contributions.

There are many different factors to consider when preparing to divorce. Understanding how a divorce may affect future retirement is an important consideration, especially if a person will need to rely on their former spouse’s Social Security contributions for benefits eligibility. People may want to discuss how their retirement might be affected with their family law attorneys. An attorney might help their client by making certain they receive their fair share of assets in the division of the marital estate, including portions of any retirement accounts their client’s spouses might have. An attorney might also negotiate agreements designed to protect their client’s interests.

/by

Judges sometimes permit legal notice through social media sites

In some states, individuals have used Facebook as a means of serving a spouse with divorce papers. Wisconsin residents may be surprised to learn that judges have ruled that, under certain circumstances, service through a social media site complies with the law.

A state judge recently concluded that a woman could serve her spouse with notice of divorce via Facebook. The circumstances were unusual in that the woman had tried to locate him over a long period of time through a variety of contact methods. She even hired a private detective. When her spouse refused to reveal his location, she petitioned the court to allow her to serve him through Facebook, a site he frequented. After finding that the woman had tried all traditional means of giving notice, the court ruled that she could serve him in this manner.

This is not an isolated ruling. Other state court judges have also determined that electronic notice through social media may be appropriate when an individual cannot otherwise be located. Not all state laws are amenable to such a ruling. Before permitting electronic notice, a judge will examine state law to determine if the text of the law can support such an interpretation. If the state law governing notice is flexible, the court usually will require an individual to show that the petitioner has attempted to give notice in all traditional ways before it will allow electronic notice.

These rulings demonstrate that courts are not inclined to let individuals escape their obligations by hiding from personal service. It’s important to realize that an inability to locate a spouse or a former spouse does not mean that an individual cannot initiate divorce proceedings or modify a current divorce settlement. A family law attorney could help review the law to determine whether state law permits these types of creative solutions.

/by