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MLB pitcher Bartolo Colon in child support dispute

Baseball fans in Wisconsin may be familiar with New York Mets pitcher Bartolo Colon. The 42-year-old pitcher, who has been nicknamed ‘Big Sexy,” is involved in a child support dispute with the 38-year-old mother of his 7-year-old daughter and 8-year-old son. The children were reportedly born while Colon was married to the mother of his other four children.

After the report about Colon’s child support issue came out on May 18, an associate of Colon’s denied the allegations. The man was at Colon’s home when reporters came to his door of his New Jersey home hours before Colon was scheduled to play in a game against the Washington Nationals. Though Colon left without speaking to reporters, his associate stated that Colon never missed a child support payment.

Colon has been married to his wife for 21 years and first met her when he was 13. The two first started dating when Colon was 17. During the marriage, Colon allegedly fathered two children with another woman from Washington Heights, New York. According to court records from Manhattan Supreme Court, Colon has been representing himself in a dispute with the other woman. Colon is expected to earn more than $7 million this baseball season.

A lawyer may be able to help a divorced parent to prepare for a child support hearing. Before the court date, a lawyer may gather financial information that can help a judge gain an accurate picture of the parent’s monthly income and expenses. If a parent has already been ordered to make child support payments that can no longer be afforded due to an unexpected financial downturn, a lawyer might file a motion for a modification of the order.

Source: New York Daily News, “Bartolo Colon hasn’t failed to support his two secret love children, associate says,” Molly Crane-Newman, May 18, 2016

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Child support adjustments based on a job change

The conclusion of a divorce may not be the end of legal action related to child support. It might be necessary to return to the Wisconsin court system to seek a modification in certain situations. A parent needs to understand that the courts won’t typically get involved in such a matter unless there is a request for modification or a problem with child support compliance.

A couple of scenarios might occur in which a modification would be a priority. For example, if the non-custodial party loses a job or source of income, it would be prudent to ask for a reduction in child support payments to reflect the new financial situation. It could also be urgent for a parent who owes support to make a request for a temporary child support reduction if an urgent personal situation crops up and interferes with that party’s ability to work. Health emergencies, layoffs or other unplanned scenarios that reduce or completely halt one’s income temporarily could warrant such a request.

The custodial parent to whom child support is paid could also seek a modification in certain circumstances. If the party owing support experiences a positive financial change such as a raise or promotion, the custodial parent might ask the court to increase the required amount of child support. It is important to understand that a modification is not a retroactive action. This makes prompt attention to one’s concern a priority. Further, it is wise to have these matters finalized legally to avoid negative consequences such as wage garnishment for unpaid support.

An individual who is unsure of the process for seeking a modification in their support payments may find legal advice to be helpful and effective. It may be necessary to provide documentation of one’s financial changes to successfully demonstrate the need for a modification to the court.

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Millions More Demanded in Kelsey Grammer Divorce

Kelsey Grammer, the actor best known for his portrayal of Dr. Frasier Crane, has had a tremendously successful career in television. He played the role of Frasier Crane for 20 years, 11 of which were on the NBC sitcom “Frasier.” At the peak of his earning power on “Frasier,” Grammer earned $700,000 per episode. “Frasier” ran from 1993 to 2004 and Grammer married his third wife, Camille Donatacci in 1997.

Many people credit Donatacci with helping Grammer turn his acting earnings into an even larger fortune through strategic investments in real estate and establishing Grammnet, a television production company, which has produced several television shows including NBC’s “Medium.” It is estimated that Grammer’s net worth has expanded to between $100 and $120 million.

Grammer and Donatacci married in 1997 and have two children together. However, due to reports of an extra-marital affair, Donatacci filed for divorce from Grammer in July 2010. The couple did not sign a prenuptial agreement, which may prove very costly for Grammer.

Grammer is interested in settling this divorce quickly because he wishes to remarry as soon as he can. However, the issue of marital property division is proving to be an obstacle to settlement. Grammer had offered a settlement of $30 million.

Just before Christmas, Ms. Donatacci rejected that settlement offer because she believes community property law entitles her to $50 million of the estimated $100 million he earned during their 13-year marriage and that she is entitled to her fair share as a cofounder of Grammnet Productions. Additionally, Donatacci is requesting child support and spousal maintenance, which Grammer’s offer reportedly did not include.

Sources:

Huffington Post, “Camille Grammer Demands $50 Million In Divorce Settlement: Report,” 12/30/2010

The Telegraph, “Kelsey Grammer facing large divorce pay out,” Nick Allen, 12/29/2010

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The economy and timing affect financial goals in divorce

One of the primary steps in divorce negotiation is marital property division, and one of the main assets that typically needs to be divided is the marital home. If you have to sell your house during a divorce, the real estate market will determine whether you make or lose money by selling. During a down real estate market, like the one we’ve been seeing in Milwaukee, you could lose most of the equity you have built in the house. To avoid all of this, one party can keep the house and the other can take other assets in exchange for the value of the equity.

The state of the overall economy definitely has an effect on how a divorce can affect you financially. You may have to move, apply for more credit, or even get a new job as a result of a divorce. All of these things are easier to do in a good economy.

If a couple has children under the age of 18, child custody and child support can complicate financial matters. If custody of the children is split between both parents, each one will have to pay living costs for each household, instead of combining their incomes for one household. If one parent has custody, it may become more stressful for the other parent who has to pay child support.

Getting a divorce during bad economic times requires careful consideration and planning. Thankfully, people faced with divorce in Wisconsin do not need to go through the process alone. Experienced family law attorneys are available to help people protect their financial interests through the course of the divorce process.

Source: MSNBC, “The best and worst times (financially) to get divorced?,” Angie Mohr, Aug. 8, 2011

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Spouse may be entitled to keep life insurance

When couples divide property in the process of negotiating a divorce settlement, they may find that one or the other has a life insurance policy with no cash value. In cases in which the family law judge has ordered the couple to divide everything equally, it is often difficult to determine the true value of a life insurance policy.

In most cases, the owner of the policy is the person who pays the premiums. That person can designate any beneficiary he or she chooses. For example, if a husband has a policy on his own life and pays the premiums, he may designate one of his children or a subsequent spouse as the beneficiary, leaving the former wife with no proceeds from the policy.

In these cases, it is sometimes best for the partner who needs the life insurance proceeds to take over payments on the policy and name himself or herself as the beneficiary. If the owner agrees, this is an easy transfer in most cases. In other cases, such as when a former spouse is responsible for child support, the custodial parent may wish to have a life insurance policy on the paying spouse in case of his or her sudden death.

A family law attorney may be able to assist partners in making life insurance and other financial decisions pursuant to a divorce action. An individual facing divorce must make many decisions and some of them are about division of property. Obtaining a fair and equitable distribution of property is the most important goal for any couple who want to retain their financial independence and exit the divorce in the best possible financial position.

Source: Fox Business, “Don“, Jack Hungelmann, May 06, 2013

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What is family support in Wisconsin divorce cases?

In Wisconsin, there are three different types of support that may be ordered in a divorce. Like other states, Wisconsin provides for child support and spousal maintenance payments. Unlike many other states, however, Wisconsin law also allows for a third, hybrid type of support called family support.

Family support is a hybrid type of support covering both child support and spousal maintenance components. Unlike child support, which is not deductible by the payor or taxed to the recipient, the payor is able to deduct family support payments. Recipients of family support are also taxed on the payments they receive on their income tax returns.

When someone is in arrears in owed family support, they are assessed interest on the arrears amount at a rate of 1 percent per month on the amount that is equal to or greater than any child support amount that is owed. The amount of interest will continue to accrue until the delinquent amount is paid.

Some people in Wisconsin may benefit by reaching a settlement agreement in which they agree to designate combined child support and maintenance payments together as family support. In some situations, such as when one spouse has significantly more income than the other, doing so may help the payor reduce his or her overall tax liability, allowing for more money to be dedicated to making support payments. In some cases, this can allow people to reduce the overall tax liabilities they may have, increasing the attractiveness of agreeing to family support payments. People who are interested in learning more about the availability of family support in lieu of potentially separate child support and maintenance awards may wish to consult with their family law attorney about designating expected support payments as family support.

Source: Wisconsin Legislature, “767.531 Family support. “, November 25, 2014

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Understanding child support: What does it cover?

Once a Wisconsin court establishes a child support order, support payments will be distributed via direct deposit or state-issued debit card. Under Wisconsin law, a parent must support his or her child until the child is 18, or until age 19 if the child is still in high school or a GED program. Thus, child support is a long-term financial arrangement; it is important that parents understand what it covers.

In general, child support covers a wide range of expenses that contribute to a child’s well-being. Those expenses can generally be divided into two categories: basic necessities and secondary necessities. Child support covers expenses in both categories, even if the recipient parent shares some of those expenses, such as housing, with the child. Food, medical care, shelter and clothing are considered basic necessities. Medical expenses include regular costs associated with insurance as well as extraordinary medical expenses such as surgery, deductibles, orthodontics and eyeglasses. Child support may be used to pay for both types of medical expenses.

Child support may also be used for secondary necessities, including child care, educational expenses such as school supplies and tuition, extracurricular activities such as sports and music lessons, transportation and travel for school and extracurricular activities, and basic entertainment. Child support orders may contain specific guidance for sharing the cost of these expenses, but a parent also usually has the option of using child support payments for these secondary necessities.

If a parent has questions about how to use child support payments or about how the other parent is spending child support payments, a family law attorney may be able to provide guidance on Wisconsin child support law. Family law attorneys can also identify appropriate justifications for modifying existing child support orders when the established amount is too low or too high.

Source: Findlaw, “What Does Child Support Cover?“, December 24, 2014

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Changing a minor’s name in Wisconsin

Depending on the facts in the case, it may be possible to change a minor’s name to the mother’s maiden name after a divorce. A judge will have to determine that ordering such a change is in the best interest of the child. The court will look at how long the child has had the name and whether the change could cause harm to the child in the future.

While children have typically kept their father’s name in the past, courts do not always side with tradition. If the child has a stronger relationship with the mother than with the father, it may be better to allow the child to use the mother’s maiden name. However, a court may also rule that the child keeps the father’s last name as long as he performs his duties as a parent.

If the mother gets remarried, the child’s stepfather may ask that the entire family take the new father’s last name. It may also be possible for the children to revert back to the mother’s maiden name as part of the adoption process. Regardless of what name the child takes, it does not change child support, visitation or custody rights and obligations previously ordered by the court.

Consulting with a family law attorney may be worthwhile whenever a dispute arises during or after a divorce. It may be possible to get the parents together to resolve issues such as what name the child will take through mediation instead of going to court. However, an attorney may be available to represent a parent in court if necessary.

Source: Findlaw, ‘Changing Your Name After Divorce”, Accessed on Jan. 16, 2015

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Tax Considerations When Preparing for Divorce

Although taxes may not be the first thing on the minds of many people going through a divorce, divorce has significant tax consequences that are worth considering.

Firstly, your marital status on December 31 determines a taxpayers filing status for the year. If you are divorced as of December 31, then you will generally be considered single for that year for tax purposes. If you are married as of the end of the year, you either will be considered as married filing jointly or married filing separately. Generally, the most beneficial classification is married filing jointly. Because of the way the tax code operates, it can often be financially beneficial to wait until the new year to seek a divorce.

Secondly, children are another important tax consideration. In order to determine child tax credits, tax forms ask about the number of children who lived with you during and after a divorce or separation. Most of the time, the custodial parent is entitled to child tax credits. However, divorce decrees can specify that a noncustodial parent can claim the tax deduction for the children. Depending on the income of the spouses, this can be beneficial for both divorcing parents.

Lastly but importantly, the tax code treats alimony and child support very differently and it is important to consider the distinction between the two when structuring a divorce settlement. Generally, child support is not considered to be taxable income nor is it a deductible expense. This means the spouse who pays child support cannot deduct this from his or her income, and the receiving spouse does not pay taxes on child support received. Alimony is deductible for the paying spouse, and the spouse who receives it will be taxed on the amount received.

Source: Personal Finance Bulletin, “Divorce and Income Tax: Untying the Knot and Counting the Cost,” Susie Bayer, 1/6/2011

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Divorce and income taxes in Wisconsin

We are all used to tax day being April 15. But this year, the federal tax day is April 18 because a Washington D.C. holiday will many keep government offices closed on April 15. Even with tax day delayed three days, many of our readers have questions about how divorce can affect their income taxes.

Divorce can have a tremendous effect on income taxes, and some of the most impactful items in a divorce may not be obvious to the untrained eye. Because of this, it is very important to work with an experienced family law attorney who can tailor divorce documents to your specific situation. However, there are some tax and divorce basics we would like to share with you.

In many of the divorces we handle, the issues of child support and alimony come up. Many divorcing spouses understand that child support is a payment from one spouse to the other meant to pay for the costs of raising a child. Similarly, alimony is payment from one spouse to the other to help the receiving spouse maintain his or her standard of living after the divorce. In some people’s minds, this might make alimony and child support relatively interchangeable.

Nothing could be further from the truth, especially from a tax perspective. This is because of the way the tax code treats alimony and child support. Child support is considered tax neutral. This means that the spouse who pays child support cannot take the amount paid for child support as a deduction. On the other side of that coin, the spouse receiving child support will generally not be required to pay income taxes on it.

Alimony is different. If certain conditions are met, alimony is deductible for the spouse who pays and the spouse who receives will generally pay taxes on it. In a high assets divorce, the difference between child support and alimony could amount to thousands of dollars at tax time.

Source: Time Magazine, “Divorce and Taxes: Five Things You Need to Know,” Kelly Phillips Erb, 4/6/2011

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