Divorce and financial issues

When a divorce action is filed, most women in Wisconsin and elsewhere are initially concerned with how they will pay for living expenses until their situation is finalized. Even affluent women sometimes have difficulty determining how they will pay for a competent legal team to secure their divorce settlement because they do not know how much money they have or where it is invested. Women who are unaware of their complete financial situation can end up victims of husbands who may play dirty tricks during the divorce process.

When a divorce is filed, withdrawals from joint banking accounts may be restricted through an Automatic Temporary Restraining Order, a court order that restricts either party in a divorce from making certain financial decisions when the process begins. Thus, women thinking of divorce should withdraw money from their accounts beforehand and set it aside for their needs. However, just how much should they set aside, and when should they do so?

Answers to these questions are difficult to answer and depend on each couple’s particular financial situation. When divorce is imminent in a woman’s future, her best course of action may be able to sit down with a divorce and family law attorney to go over the legal implications of each option.

Women about to divorce may do well to take every option that they can to protect themselves. Experienced family law attorneys may be able to guide women through financial considerations prior to filing for divorce. During the divorce process, family law attorneys may be able to give advice on financial and legal considerations that women need to make to make to give themselves a secure start in a new life.

Source: Forbes, “When Can You Withdraw Funds From Joint Accounts?“, Jeff Landers, September 17, 2013

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Infidelity and divorce

Allegations of infidelity have sounded the death knell for many Wisconsin marriages. While some spouses may be willing to forgive an indiscretion, others are unable to move beyond the negative emotions and hurt caused by a spouse’s unfaithful behavior. In those cases, divorce may be the only option. However, infidelity may not play any role in a divorce proceeding depending upon state law.

Many states have no-fault divorce laws, and a spouse who is seeking a divorce need not prove that the other spouse did anything wrong to cause the marriage to end. In most such states the court will not consider a history of infidelity or other bad behavior by one or both spouses in determining issues such as property division, child support or alimony.

In many no-fault states the court will base child support on statutory guidelines that consider the parties’ incomes and the children’s physical placement, not who was to blame for the marriage’s demise. In determining whether to award spousal support, the court will look at factors such as the length of the marriage and earning capacity of the parties, not whether one party was unfaithful. However, if a spouse’s bad behavior affects or endangers the well-being of the children, the court may factor it into its consideration of a child custody dispute.

Someone contemplating a divorce may wish to speak with an attorney that is experienced in family law matters. The attorney may be able to negotiate and prepare agreements relating to such matters as property division and spousal support. If there are children from the marriage, the attorney may be able to provide advice and counsel on such issues as child support and visitation rights.

Source: HuffingtonPost, “A Cheating Heart and Its Role in Divorce“, Caroline Choi, October 01, 2013

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New study of old data indicates divorce is contagious

Recently-released results of a study reveal that the marriages of couples in Wisconsin and elsewhere may possibly be affected by divorces of friends or close family members. Researchers at Brown University have found that when a family member or close friend gets divorced, study participants were 75 percent more likely to get a divorce, and 33 percent more likely to end a marriage if a friend of a friend was divorced.

The study of residents of Framingham, Massachusetts, commenced in 1948 and was initially designed to examine risk factors associated with heart disease. It was subsequently expanded to include close friends and family members, with the participants being periodically re-interviewed. The divorce results are attributable to a phenomenon that sociologists have termed “social contagion”, defined as the spread of behavior and attitudes among friends, family members and social networks. It has been found to be present in studies dealing with subjects as varied as childhood obesity and the spread of imaginary workplace diseases.

Study results also showed that a divorced person is more likely to remarry another divorced person, especially if the remarriage occurs shortly after the breakup of the previous ones. Participants who divorced often felt that they were less popular, losing the connections to friends that had been part of the other spouse’s social network.

When marriages cannot be repaired, sometimes a divorce may be the way for spouses to get a new start on their individual lives. An attorney who has experience in family law may be able to assist someone contemplating the termination of a marriage by helping to negotiate and prepare agreements covering issues such as property division and spousal support.

Source: Pew Research Center, “Is divorce contagious?“, Rich Morin, October 21, 2013

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Prenups becoming more popular

According to U.S. census data, as many as 50 percent of marriages end in divorce. An increasing number of couples in Wisconsin and across the country are turning to prenuptial agreements as a way to resolve issues ahead of time should their marriages end in a divorce.

The American Academy of Matrimonial Lawyers reports that more than 60 percent of divorce attorneys who responded said that they have seen an increase in prenuptial agreements during the last three years. Additionally, 46 percent of these attorneys said that they have seen a significant increase in women requesting these types of agreements. Historically, men were more likely to be the ones requesting these agreements as they tended to have more assets to protect. However, as an increasing number of women enter the workforce they have more property than before. Additionally, people are likely to be more aware of the financial complications of death and divorce, making them more likely to enter into these agreements.

The three primary reasons that individuals enter into prenuptial agreements are the protection of separate property, spousal maintenance and property division. Many advisers recommend talking about a prenuptial agreement early in the relationship rather than bringing up the idea right before the wedding. It is suggested that couples discuss whether they will maintain joint or separate bank accounts, how expenses will be divided and paid for and who will stay in the marital home in the event of a divorce.

Couples going through a divorce often have disputes about the valuation or ownership of assets that may hinder reaching a property division settlement. A prenuptial agreement may be a possible way to help resolve this type of issue in advance.

Source: Pittsburgh Post-Gazette, “More couples saying ‘I do’ to prenups“, Time Grant, October 31, 2013

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Who gets custody of pets in a divorce?

Many people in Wisconsin and all across the nation consider their pets to be members of their families. Some couples, especially those without children of their own, may view their pets like children. Therefore, when they go to get a divorce, questions might arise over who gets custody of the pets.

Although individuals may view their pets as family members, the courts do not. For property division purposes, pets are viewed as marital assets. Therefore, judges will follow the same guidelines when deciding who gets to keep the pets as they do with who gets other marital assets like furniture, vehicles and other possessions.

More divorce lawyers have reported an increase in the number of pet custody cases being filed in court. Consequently, more judges are beginning to take a more open-minded approach to deciding who gets to retain custody of the pets after a divorce. One factor that a judge might consider when determining who gets to keep pets is who will be able to offer the pet the most love, time and attention and what will be in the long-term best interest of the pet.

Just like child support cases, individuals can present evidence and testimony to prove to the court why it is best for the pet to remain in their custody. Issues that they might address are whether they have the financial means to support the pet, whether their ex has ever been neglectful of or abusive towards the pet, whether their work schedule is flexible enough to accommodate the pet’s emotional and physical needs and whether they retain custody of children who are emotionally attached to the pet. In some pet custody cases, visitation, shared custody and pet support payments are established by the courts.

Source: The Huffington Post, “Who Gets the Family Dog After Divorce?“, Nancy Kay, November 10, 2013

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Determining who gets the home in a divorce case

Couples in Wisconsin who have made the decision to divorce may find that a variety of other choices now must be made. Those ending their marriage must figure out asset division of everything from household furnishings to the family home itself. As a community property state, Wisconsin courts attempt to divide property acquired during the marriage as equally as possible in most divorce cases, leaving both parties with a comparable share of assets and liabilities.

Lawyers acknowledge that the couple’s home may be one of the more difficult assets to divide, simply due to the high value of a home. Dividing a home equally typically means that the home will need to be sold, with each spouse getting half of the equity. If the home is being lived in during the divorce, the expenses that occur, including monthly bills and maintenance or repairs performed, will usually be split equally as well.

If one individual wishes to keep the house, courts will determine if it is a viable choice by evaluating the budget of the spouse to ensure that they can afford the home and by making sure that the other spouse receives an equal amount of marital assets. Getting an appraisal of the home may be an ideal choice so that both parties agree about the value of the home.

Divorcing couples may be able to agree on property division during a divorce. If couples do not, their attorneys may be able to negotiate an arrangement regarding marital property in order to avoid a trial. Prenuptial agreements are also taken into account when dividing property in Wisconsin.

Source: The Huffington Post, “What to Do With Your House in a Divorce Case “, Christian Denmon, Denmon & Denmon Trial Attorneys, December 09, 2013

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Preparing for divorce

While some Wisconsin spouses may decide to get a divorce in the heat of the moment, many spouses reach this decision after careful consideration. For these spouses, there are several steps that they can take to protect themselves before they start the process of filing for divorce.

One step is to prepare important financial records. They should have copies of important financial data for the last three to five years, and these copies should be secured in a safe location that the other spouse does not have access to. The information may include mortgage documents, income tax returns, bank account statements, information about investments and statements for retirement accounts and credit cards. This information can be used to help prepare a financial statement for the court. Once the divorce is imminent, a spouse should establish a separate checking and savings account. Joint accounts should be closed, and the spouse should also establish his or her own line of credit. These steps are necessary to establish one’s financial independence. A spouse who is considering divorce may also want to make copies of his or her spouse’s financial records so that this information will not be hidden once the divorce is impending.

At the same time, a spouse should also identify items that personally belong to him or her. These might be items that the spouse had before the marriage or gifts or inheritances. Preparing a list of these items and photographing them is helpful during the process. Getting evidence that these are personal items is also helpful. Also, the spouse might choose to move these items to a safe location to which the other spouse does not have access.

Another important step to take during this time is to contact an attorney. An attorney might be able to help the spouse achieve his or her goals, as well as advise when it is best to compromise.

Source: Go Banking Rates, “How to Perfectly Plan Your Divorce to Protect Your Assets“, Amanda Garcia, January 08, 2014

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Divorce settlement means hard work for John Cleese

Wisconsin residents who follow celebrity divorces may be interested in John Cleese’s divorce settlement with his third wife. In 2008, Mr. Cleese and his wife, Alyce Faye Eichelberger, divorced. The couple agreed to the terms of their divorce settlement in 2009 that allegedly specified that his wife would receive $13 million in marital assets and cash as well as almost $1 million a year until 2016. The 16-year marriage between John Cleese and his wife, who is a psychotherapist, was childless.

Mr. Cleese, who has since remarried a woman 31 years younger than himself in August 2012, spoke about the financial difficulty a divorce may precipitate. Mr. Cleese, 74, said a great deal of hard work was necessary for him to meet the demands of spousal support obligations. He states that his choice of projects is dependent, in part, on earning enough to pay alimony, and he even named one project “The Alimony Tour.” He also suggested that his income from past projects, such as his time with “Monty Python,” was not sufficient to meet these current obligations. Cleese said that selling property was necessary and now owns just one from the original five owned during his marriage.

In Wisconsin, spousal maintenance may be required temporarily or permanently, depending on the differing circumstances of each couple. Determinations regarding such payments include factors such as the length of the marriage, the income of the involved parties and the earning capacity of the parties.

When couples divorce, alimony considerations are just one of many issues that parties may face. As Mr. Cleese’s case shows, the effects of divorce agreements may affect the long-term financial futures of both individuals. A family law attorney may be able to help couples reach an agreement that is equitable and provides support for all the parties involved.

Source: The Huffington Post, “John Cleese’s Alimony Payments Are No Laughing Matter“, January 31, 2014

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Rise in disputes over pet ownership in divorces

Wisconsin residents may be interested in an article discussing the rise in a certain type of custody battle during divorces. Attorneys are noticing that couples are fighting over who gets to keep the pets more and more.

In a recent survey of family law attorneys, 27 percent stated that they have seen an increase in the number of couples who are battling over ownership of pets during a divorce. Under the law, courts regard a pet as an item of personal property. In that way, pets are no different than other pieces of property, such as furniture and jewelry. Most often it is a dog that is at issue in the split, comprising 88 percent of animal disputes. The second most frequent animals fought over in divorces are cats, at merely five percent, followed by horses and “other.”

In some cases, ownership of the pet is used as a hardball negotiating tactic during divorce proceedings. Due to the emotional attachment that many owners have to their pets, this makes dealing with pet custody more akin to child custody than property ownership. Upkeep costs are also similar, as pets often have expenses associated with their care. As with child custody issues, it is probably best for couples to deal with who retains ownership of the pet on their own, rather than leaving it up to a judge.

Even though courts are becoming more accepting of pets as assets in property division during divorce, it can be helpful to negotiate an agreement regarding future ownership outside of a judge’s chambers. An attorney who is experienced in a property division issues may be helpful in negotiating a fair custody agreement for pets and other marital assets.

Source: Mainstreet, “Pet Custody Battles on the Rise in Divorce Court”, Juliette Fairley , February 21, 2014

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Divorce settlement conditions may be prudent

A recent divorce settlement dispute may be instructive for Wisconsin residents. A father of two emancipated children divorced, and the father’s relationship with the daughter had become strained. She had graduated from Rutgers University and been accepted at Cornell Law School. The father had agreed to a divorce settlement that required him to pay 50 percent of his daughter’s postgraduate education. The cost of Cornell was $74,580 per year for room and board, tuition, books and fees.

The father objected, arguing in court that he should not be obligated to pay citing personal financial difficulties, the availability of less expensive schools, his poor relationship with his daughter and his understanding that the mother had inherited money for the daughter’s education. The trial court disagreed, finding no language in the divorce settlement that supported the father’s argument. The New Jersey Appellate Court upheld the decision.

The courts generally consider a divorce settlement agreement to be contracts that have already been sanctioned by the divorce court. Unless significant changes in circumstances or issues about the legality of the contract itself can be proven, the courts will usually not rewrite or alter the terms of the contract. The settlement wording made no condition upon which the father would pay half the costs. The father was ordered to pay $112,500 as his portion of the Cornell education.

Divorce may become a complicated and emotional process. Arriving at an equitable settlement may be difficult, especially in cases of high-asset divorce or when complex assets such as stock options, business interests or investment vehicles are involved. An attorney experienced in settlement strategies, asset valuation, tax law and property division may help prevent any unexpected negative consequences of a broadly written settlement.

Source: The Huffington Post, “Divorce Settlements and Higher Education“, Brad Reid, March 13, 2014

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