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Jon Gosselin attempting to change custody order

Wisconsin reality television fans may have been following the story involving Jon Gosselin and his quest to get custody of his 11-year-old daughter. Reports indicate that the girl told her father that her mother was being cruel toward her and that she was being forced to continue to appear on television although she didn’t want to. Jon and his ex-wife Kate Gosselin were said to be on bad terms prior to their divorce and do not have a relationship currently.

However, whether or not a judge will modify an existing custody order depends on whether or not there has been a change in circumstances. It will be up to Jon Gosselin as the non-custodial parent to prove that such a change has taken place. It is unlikely that he will get custody of the child, as changing the custody order could have an impact on the other children.

If the two parents desire, they may be able to reach a compromise in a situation such as this one. Reaching a middle ground will allow the girl to spend more time with her father without having to take her away from her brothers and sisters. This may be seen as in the best interest of the child, which would be the top priority of any ruling that a judge may make.

Parents who wish to modify an existing child custody order may wish to talk to the custodial parent before taking legal action. It may be possible to come to an agreement that is in the best interest of the children without the need to go to court. However, if no agreement can be reached, it may be worthwhile to consult an attorney to determine how a parent may gain sole custody or additional parental rights to a child.

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Wisconsin Researchers Study Divorce’s Impact on College Education

Divorce can have long-term financial consequences for both the spouses and the children of divorce. Recently, researchers from the University of Wisconsin and Rice University compared how much divorced parents contributed to the college education with the amount contributed by parents who remained married. They found that divorce significantly influences how much parents are able to contribute to their children’s college education.

The study published in the December issue of the Journal of Family Issues analyzed a sample of 2,400 parent and student interviews from the National Postsecondary Student Aid Study. It analyzed the financial contributions made to a college education by three groups of parents: parents who were married, divorced parents, and parents who had divorced and remarried.

According to the study, married parents contributed about eight percent of their income to their children’s college education and met 77 percent of their children’s college-related financial needs. Divorced parents, on average, contributed about 6 percent of their income and met only 42 percent of their children’s financial needs. Remarried parents contributed 5 percent of their income and met 53 percent of their children’s needs.

The researchers pointed out that the income of divorced parents was substantially lower on average than parents who remain married. Furthermore, parents who remarried had similar incomes to parents who never divorced. However, remarried parents contributed a small percentage of their income to their children’s college education. The researchers believe that remarried parents contribute less than parents who remained married due to additional obligations, such as the costs of contributing to a second family.

This study is one of the first of its kind in that it analyzed the way divorce effects the way a parent can contribute to college education. From a family law perspective, it highlights an often-overlooked aspect of divorce. Who pays for the college education for the kids?

Many divorcing couples do not reach an agreement on how their children’s higher education will be financed. Although a Wisconsin court typically cannot extend child support beyond the age of 19, there are options available to provide for higher education. Divorcing parents can elect to include college tuition in their divorce decree or marital settlement agreement.

Sources:

The New York Times, “The Financial Impact of Divorce on College Students,” Jennifer Saranow Schultz, 12/15/2010

Rice University, Journal of Family Issues, “Contributions to College Costs by Married, Divorced, and Remarried Parents,” Ruth Lopez Turley and Matthew Desmond, 12/2010

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Should child support awards account for growing expenses?

Child support is typically awarded to the parent who does not have primary custody of a couple’s children. Child support is supposed to represent the amount of money that will be necessary to pay for the expenses related to caring for the child. Such expenses include the cost of housing, food and clothing.

Typically, once a child support award is set, then the amount stays the same, regardless of additional expenses that arise subsequent to a divorce. Unfortunately, circumstances often change after divorce, so it is important to consider the future when determining child support arrangements.

Failing to recognize that small children will one day turn into teenagers who will require additional money to feed them and meet their financial needs can leave the child and custodial parent with inadequate funds, or in the alternative, with the child support bearing parent spending more money than was required by the court.

In many cases, parents may simply agree to divide additional expenses that were not originally contemplated, such as those for sports or tuition. When things do not go smoothly, however, one or both parents, may petition the court to attempt to modify the court order. Child support modifications can be particularly helpful when circumstances have changed such that the original award is no longer appropriate.

Things tend to get even more confusing when a parent remarries. New step-parents may not understand the terms of the child support arrangement or the way additional expenses had historically been handled between the divorced parents.

Clear communication among adults can go a long way in helping to meet the financial needs of children. Respecting that Wisconsin child support awards are necessary for the children’s welfare, and that as kids turn into teenagers they cost more, can put a child support award in its proper perspective.

Source: The Pioneer Press, “Ex-Etiquette: Discuss money issues with parents, not kids,” Jann Blackstone-Ford and Sharyl Jupe, 29 June 2011

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Tiger Woods to pay $110 Million in Divorce Settlement

The Tiger Woods divorce is in the headlines again. CBS 4 in Miami is reporting that he has agreed to pay Elin Nordegren $110 million as part of a divorce settlement. It is estimated that Tiger Woods is worth close to $500 million in total, and many commentators believe Elin could have demanded even more than what she is reportedly receiving.

Generally when married couples divorce, the property they have must be divided between them. This process is called property division. It can often be very complex even when neither spouse is a millionaire. It works differently from state to state, but we’ll go into some detail on how it works in Wisconsin.

In Wisconsin, the law is presumes that all property of the spouses is marital property and is subject to division during a divorce. Each spouse is considered to have half interest in all marital property. However, not all property will end up being in the marital property category. Some property held by the spouses will be considered to be separate or individual property such as gifts and inherited assets. This separate property is generally not subject to division.

Family law judges do have some discretion in dividing marital property and the factors they may consider are misconduct; the property an individual spouse brought to the marriage; the contributions the spouse made to the marriage; how much separate property the spouses have; and many other factors.

Because property division is so complex, it is sometimes difficult to predict what a judge will decide. When possible, the parties will agree to a marital property settlement which allows them to agree on the division of the marital assets. Given the news reports, it appears Tiger Woods and Elin Nordegren chose this option.

Source: CBS4.com: Tiger Woods Divorce A Multi-Million Dollar Affair; 10/19/10

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Prenuptial Agreements Rising in Popularity

In a recent study by the American Academy of Matrimonial Lawyers (AAML), 73 percent of attorneys reported an increase in prenuptial agreements over the past 5 years. Of those surveyed, 52 percent also reported an increase in women requesting the agreements.

Prenuptial agreements, sometimes referred to as antenuptial agreements or as “prenups”, are pre-marriage contracts that specify how property would be divided in the event that the couple divorce. Some may think that these agreements are only for the rich and famous. However, the major increase in prenuptial agreements is coming from everyday people.

One major source of the increase in prenuptial agreements comes from couples entering a second marriage. Many people who have been through a contested divorce want to limit the possibilities of going through a second contested divorce. Having a prenuptial agreement is a good way to avoid extensive property fights in another contested divorce.

However, prenups are not just people entering a second marriage. Over the past 30 years, we have seen a trend towards people marrying later in life. Since 1980, the average age for a man getting married for the first time has gone up two years and is now at 26.8 years of age. For women, the average age has gone up nearly 3 years, and is now at 25.1 years of age.

Many people are no longer getting married right after school and are working for a few years before marriage. This gives people more opportunity to work and therefore people are bringing more assets to a marriage. We are seeing that prenuptial agreements are not just for the very wealthy; rather prenups are for any person who wants to protect the assets he or she brings to a marriage in the event of a divorce.

Source: Minneapolis Star Tribune: More couples saying ‘I do’ to prenups; Jeff Strickler, 10/27/2010

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Jamie McCourt wins Ruling in Dodgers Divorce

Previously, we posted about the divorce between Frank and Jamie McCourt that will determine who owns the Los Angeles Dodgers. Frank and Jamie participated in mediation in an attempt to reach a property division settlement, however their mediation failed. Without a settlement in place, it was up to Judge Scott Gordon to rule on the issue of who owns the Dodgers and whether a post-nuptial agreement between the McCourts was binding.

If valid, the agreement would give Frank McCourt sole ownership of the Dodgers. Tuesday, Judge Gordon threw out the post-nuptial property division agreement, a decision that could make Jamie McCourt part owner of the team and could result in protracted property division litigation.

Judge Gordon found the post-nuptial agreement invalid based on errors occurring when the McCourts signed the agreement. During the trial, the attorneys for both sides reviewed the documents and found that the McCourts signed six copies of the agreement. Three of the copies listed the Dodgers as Frank’s sole property, but three copies did not.

Frank McCourt could decide to appeal Judge Gordon’s ruling, but he is already employing another legal strategy. Frank has informed the court that he is claiming sole ownership of the Dodgers on the theory he bought the franchise using the assets of a company he established before he married Jamie.

The parties disagree on how long it would take to resolve this new claim. Frank’s attorneys believe this new property division claim could be resolved in a one-day trial based upon evidence that has already been introduced into the record. Jamie’s attorneys believe the trial could require up to 60 days and months to collect new evidence.

As an alternative to further court proceedings, this ruling may bring the McCourts back to the negotiation table to settle their property division contest. Past negotiations focused on Jamie giving up her interest in the Dodgers and Frank compensating her, but they could never come to terms on a deal. During the past negotiations, the post-nuptial agreement was an unknown variable. Now that there has been a ruling on the issue, the McCourts may now feel they have a better understanding of their rights and be able to reach a compromise.

Source: Los Angeles Times, “Dodgers’ ownership in limbo after judge throws out McCourt property agreement,” Bill Shaikin and Carla Hall, 12/7/2010

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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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Survey Indicates Financial Dishonesty Common Among Married People

There are many reasons why a marriage might fall apart, but many causes of divorce share the common theme of dishonesty. Trust in a marriage is important, and dishonesty can deeply damage the trust shared between spouses. A new survey by Forbes.com and the National Endowment for Financial Education has found that dishonesty about finances is becoming increasingly common among married people, with more than 30 percent of respondents indicating some form of “financial infidelity.”

The survey question 2,019 adult respondents and found that 31 percent of American couples who have combined finances were not always truthful about financial issues. The most common financial lie involved hiding cash or assets, followed by hiding a minor purchase, hiding a bill, hiding a major purchase, hiding a bank account and distorting debt or earnings.

When it occurred, the effects of financial dishonesty were very pronounced. Of those respondents who indicated they had experienced financial dishonesty in their marriage, 16 percent said the dishonesty led to a divorce, 11 percent said it caused a separation, 67 percent said it led to an argument and 42 percent believed it lead to a loss of trust in a relationship.

When divorce does result from financial dishonesty, marital property division will often be an important contested aspect of the divorce. In order to have a fair division of marital assets, it is important to have a clear picture of a family’s financial situation. Having a clear understanding of the marital debts and assets can be complicated when a spouse is hiding assets. Experienced divorce attorneys understand the importance of a thorough investigation into marital assets and will often collaborate with financial professionals, including forensic accountants, when it appears one spouse may be concealing marital property.

Source: Reuters, “Three in 10 Americans commit financial infidelity?,” Daniel Trotta, 1/13/2011

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Kelsey and Camille Grammer settle divorce dispute

In January, we wrote that Kelsey Grammer was having difficulties finalizing his divorce. According to celebrity news outlet TMZ, Kelsey Grammer’s divorce from his wife Camille Grammer is currently being finalized. The news comes only days after reports that the two had struck a preliminary deal ending their marriage.

Although the precise details of the deal have yet to be revealed, it is widely believed that Kelsey and Camille’s disagreements regarding the divorce were mainly related to property division. Camille reportedly demanded $50 million, and Kelsey originally offered $30 million. The pair had not signed a prenuptial agreement when they were first married.

Kelsey and Camille Grammer’s divorce has been heavily publicized for months, primarily through interviews, released court documents and Camille’s appearances on the reality TV show “The Real Housewives of Beverly Hills.” During these appearances, Camille revealed that the pair had had difficulties with intimacy and that she begged Kelsey not to leave.

As for the divorcing couple’s future plans, Camille has announced that she never plans to remarry. Kelsey, however, will only be single for two weeks. He plans to marry Kayte Walsh, a former flight attendant, on February 25 in New York City in a lavish wedding celebration. Camille was invited to the wedding but she has declined to attend. Kayte and Camille met previously in a situation that Camille described as “uncomfortable.”

Kelsey Grammer is best known for his starring role as Frasier Crane in the hit show “Frasier,” as well as his appearances as the same character in a supporting role on “Cheers.”

Source: Huffington Post, “Kelsey, Camille Grammer Divorced,” 2/10/2011

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Understanding debt and divorce in Wisconsin

Most people understand that marital property is divided in a Wisconsin divorce. However, the other side of that coin includes the division of marital debt. The division of debt can be as important, and in some cases more important, than dividing marital property.

All debt that is accumulated over the course of a marriage, for homes and cars, is categorized as community debt. After divorce, both parties are equally responsible to pay back this debt. For example, if you and your former spouse purchased a car for $30,000 and paid off half of it, you will both share equal responsibility in paying back the remaining $15,000.

The situation can be more complicated, however. If your spouse purchased that vehicle without your knowledge, even when using a credit card that was in his or her name only, you will still owe the same share of the money if you live in Wisconsin or other community property states.

Other forms of debt include living expenses. Living expenses typically include the money you pay for utility bills, groceries, gasoline, cell phone and cable bills, and rent or mortgage payments. Items like appliances, including refrigerators, TVs and gym equipment, are considered to be community property.

However, it becomes very difficult to properly assign debt when one spouse had existing debt before the marriage and both parties add to that debt during the marriage. This type of situation often requires a detailed accounting and investigation of expenses.

If you have questions about marital debt or property division in Wisconsin, an experienced family law attorney can help you understand your rights and obligations under the law.

Source: Wallet Pop, “Divorce and Debt: What You Owe and What You Don’t,” Geoff Williams, 2/25/2011

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