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The ins and outs of prenuptial agreements

Some married couples in Wisconsin may not have prenuptial agreements. Given that nearly half of all marriages end in divorce, however, someone who is about to enter into matrimony may wish to consider getting one. Indeed, prenuptial agreements are becoming increasingly common, especially for people who are entering second marriages and for those who are getting married later in life.

A prenuptial agreement is a legal contract signed before marriage that sets out the future spouses’ understanding regarding which assets will become part of the marital estate and how property division will be handled in the event the couple later splits. When drafting a prenuptial agreement, one should keep in mind that full disclosure of all assets and liabilities is crucial to the agreement’s future enforceability. If one party to the agreement failed to disclose all of his or her assets or debts at the time the agreement was signed, a court later may refuse to enforce the agreement on the basis of fraud.

When drafting a prenuptial agreement, the parties may consider including a sunset clause. Such a clause provides that the agreement becomes void and no longer enforceable after a certain period of time or the occurrence of an event such as the birth of a child.

It is important for each party to a prenuptial agreement to have their own lawyer to negotiate on their behalf and to represent their separate interests. If a prenuptial agreement contains lopsided provisions that unfairly advantage one party over the other, it is vulnerable to subsequent challenge. A lawyer also can help ensure that the agreement meets the court’s standards. For example, celebrity couple Steven Spielberg and Amy Irving had a prenuptial agreement that was drafted on a napkin. When they divorced in 1989, the court ruled the agreement was invalid and awarded Irving $100 million. Had Spielberg consulted with an experienced family law attorney about the agreement, he may have obtained a better result.

Source: Huffington Post, “Prenup Tips: ‘Fox And Friends’ Tackles Prenuptial Agreements“, July 18, 2013

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Emotional issues can lead to unwise divorce settlements

Because even amicable divorces are wrought with a variety of issues, Milwaukee area couples who are soon-to-be ex-spouses often do not make wise decisions in their negotiations. The initial sensation of overwhelming emotion can be at fault during initial divorce negotiations, leading spouses to agree to terms with which they may be uncomfortable and often tend to change months or years later in agreement modification. Being aware of common mistakes that occur during divorce negotiations can help save time, money, effort and prevent frustration down the line.

Making decisions without fully understanding the implications is the number one problem. Although it is tempting to let an attorney handle everything, including financial decisions, spouses should get as much information as possible make sure they fully understand what may happen in five, 10 or more years from now. Losing control is another problem. Never let legal counsel make decisions without consultation. Acting out of anger is another hard-learned lesson. Staying away from court battles and sticking to the facts makes the process go more smoothly.

Although the divorce process is commonly called a settlement, ex-spouses shouldn’t settle for anything less than they feel they are worth. Couples need to be fair to themselves and their soon-to-be exes. Most importantly, divorcing spouses should not lose themselves. By taking a step back, planning and researching, couples can reach smart divorce decisions.

Experienced attorneys knowledgeable about Wisconsin divorce law may be able to help divorcing couples make the transition from married to single smooth in legal terms. Although ultimately no one except the individuals involved have the ultimate control on their emotions, professional divorce attorney can be expected to remain neutral and provide guidance in even the most difficult circumstances.

Source: Huffington Post, “The 5 Worst Mistakes People Make During Divorce“, Michelle Rozen, August 24, 2013

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Prepare financially for life after divorce

People in Wisconsin who have recently gotten a divorce might be wondering how they are supposed to readjust their finances to fit their new post-divorce lifestyles. There are numerous steps that individuals can take to prepare themselves for life after divorce financially. The first thing that they should do, however, is consider whether or not they will be getting any alimony in their divorce.

Alimony is extremely important to some people after they are divorced, especially if they didn’t work throughout their marriage. Alimony might be their primary support system after their divorce. However, they might want to consider planning for how they’re going to budget their finances if they don’t get lifelong alimony since many states are considering making reforms to do away with lifelong alimony and make payments last for a shorter duration.

People who do receive alimony payments might consider using those payments to subsidize their primary incomes. Additionally, they might use their alimony to fund additional education to get into a better career. People might also adjust their budgets by downsizing their homes; chances are that they don’t need as much room as they did before, and downsizing may help them cut utility and maintenance costs too. They should also consider adjusting their budget for their new lifestyle as their income might be less, and getting rid of any non-essential expenses could close the gap. Additionally, people should consider saving money to ensure that they are protected in the event of an emergency.

Family law attorneys may be able to help couples negotiate tough issues like alimony in their divorce proceedings. They might also help them figure out how to equitably divide up their marital assets and negotiate issues such as child custody and support.

Source: Fox Business, “How to Financially Readjust for Post-Divorce Life“, Andrea Murad, August 02, 2013

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Taking advantage of social media during divorce

Social media can help or hurt either party in a divorce in Wisconsin, especially if they air private matters that are best left out of the public eye. However, experts are finding that different social media sites can actually help people who are ending their marriages.

First, social media can help someone going through a divorce find quick access to a number of resources, ranging from an overview of ending a marriage, child custody issues and finding lawyers. People can also find information on talking to kids about divorce, handling health insurance and what properties count as marital assets in their jurisdiction. They can check out the reputation of those they plan to hire to navigate through the divorce, such as lawyers, counselors or financial planners. Family mediators also help clients save money when negotiating a variety of issues with their soon-to-be ex-spouse, which in turn leads to less overall stress.

Second, when a parent doesn’t see their children on a daily basis, they can contact them via social media. They can communicate regularly apart from scheduled visitation. This applies even more to someone who works in another state or nation, whether military personnel or at a corporate job. Parents can set up a family site specifically to communicate with their child or just “friend” them on social media. They can look at pictures, keep up with their child’s friends and keep tabs on daily thoughts and activities. Parents can even set up visitation via some social media sites and talk about their activities.

During the break-up of a marriage, people might wonder where to find reliable information on proceeding with a divorce. A family attorney might be able to help clients work out issues, such as alimony and child custody.

Source: Huffington Post, “Can Social Media Be Your Friend During a Divorce?“, August 20, 2013

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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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