Though asset and property division can be complicated and hard to define at times, an experienced lawyer could be the answer for those in need of assistance. This may be especially true when a couple must split complex debts or assets.
]]> Like assets, credit card debt may end up being split between couples who are divorcing. In most cases, however, only the account holder, not the authorized user of a credit card, will be responsible for the debt put upon it. The company who provided the card will be seeking payment from the ex-spouse who acquired the debt.If both spouses are credit card account holders, it may be necessary to pay off the debt together and close the account before going through the divorce process. However, protecting both spouses' credit history could be a third option. To do this, all credit cards should be decoupled during the divorce process.
Couples should keep in mind a divorce decree has no hold with credit card company contracts, so if both spouses are on the account, both are responsible. If a decree states one spouse is to pay, it would be beneficial to also make a statement in the divorce agreement requiring the paying spouse to alert the other if he or she will miss a payment.
Though the situation can be tricky, it is important for one going through a divorce to keep debts low and try to make prompt debt repayments so credit remains intact. If it is accomplished, one has a better chance of starting fresh and stable after the divorce is final.
Source: Fox Business, "Does Wife Owe Ex-Hubby's Credit Card Debt?" Janna Herron, May 9, 2012
]]>Although the father has asserted that the requested amount is outrageous, he is a French billionaire who is the CEO of a company that owns several elite fashion lines. Evangelista argued that it is only fair that her son be provided for in the same manner as the billionaire provides for his daughter with his famous actress wife, Salma Hayek. The daughter was born in 2007; a year after the son was born.
]]> Evangelista testified in court that she can earn up to $100,000 for a publicity appearance. She is infamous for a magazine interview in which she stated that models like her don't even "wake up" for less than $10,000 daily. This has led some to question whether the requested high child support would be going solely to its intended beneficiary, the son, or also benefiting the mother.Although an agreement has been reached, the details of it have not been released. Even though this case involves excessive amounts of money, it may be similar to more traditional situations in Illinois. Parents want to make sure that the money they pay for child support actually goes to the support of a child. Determining proper payment amounts may require parents to detail finances and expenditures that involve the child. In most cases, a judge will determine what is financially appropriate.
Source: Chicago Sun-Times, "Linda Evangelista cuts a child support deal with billionaire," Jennifer Peltz, May 7, 2012
]]>Living together is becoming so common that only a thin majority of 51 percent of all people in the U.S. are now getting married. There are few, if any, formal legal mechanisms to protect the rights of couples living together without the formality of marriage. In the absence of a formal cohabitation agreement, this type of breakup can frequently lead to lawsuits between the former couple.
]]> It may be essential that such an agreement be drafted by an experienced attorney in order to cover all bases and be enforceable. It is also advisable that each person have their own independent lawyer to assist in reaching the agreement in order to avoid any conflict of interest. It is generally a major mistake for a couple to attempt to draft their own agreement without assistance, since they are unlikely to have any expertise in doing so.Some couples may find the subject initially to be one difficult or awkward to discuss, but the potential benefits outweigh any difficulties. Even though a couple may never split up, knowing that each party is protected should it ever happen is very important.
Source: hometownlife.com, "Moving in together can create risks for both parties," Rick Bloom, April 22, 2012
]]>Fights over every possible issue benefits no one and winds up being both expensive and time consuming, as well as aggravating. Focusing on the big picture, on the other hand, can result in maintaining a positive relationship. This is especially important when children are involved and the ex-spouses will necessarily have to work together on various issues concerning the children for several years.
]]> When it comes to the divorce settlement, it may be best to approach the process with an educated and detailed view of the future separate economic circumstances of the couple. Tax, financial, and legal professionals can assist in this process and help make sure that decisions are made in the most rational and beneficial manner.It is to be expected that divorcing spouses will experience strong emotions. Rather than taking it out on each other in the courtroom, people may want to consider other options. Support groups, divorce coaches, or therapists can help a divorcing individual best cope with anger, guilt, disappointment, grief, or feelings of betrayal that are often present.
Mediation can often be helpful in achieving a collaborative end to a marriage and resolving disputed issues in a non-antagonistic, non-adversarial way. An experienced and qualified mediator is essential. There will be costs, but they can be manageable. Each party needs to have competent legal representation by an attorney committed to a more collaborative approach to resolving disputed issues.
Source: The Huffington Post, "8 Secrets to a Good Divorce," Eileen Barker, April 11, 2012
]]>It later turned out that the investment was worth nothing and amounted to a fraud perpetrated by the notorious financial scam artist Bernard Madoff, now serving a prison sentence. Illinois residents involved in a high asset divorce may find the resolution of the case instructive.
]]> The husband asserted the argument that he should be given back the $2.7 million he had previously transferred to his wife as her supposed half of the investment, while he retained the holdings in the fund itself.The court rejected this argument. At the time of the settlement and transfer, they ruled, the husband could actually have redeemed his holdings in the fund for its then apparent value, as the fraudulent Ponzi scheme concocted by Madoff had not yet been revealed. Because he chose not to do so is not the fault of his former spouse, in the eyes of the court.
The ruling not to alter the settlement is based on the principle that, just as his ex-wife would not be able to profit from any investment of his which increased in value after the divorce, he similarly should not be able to recoup his millions in investment losses following the divorce at his ex-wife's expense.
A divorce settlement ordinarily will not be restructured after the fact by a court, unless there was a mutual mistake by both of the spouses and certain exceptional circumstances exist. In this case, the loss from the investment did not occur until years later, and therefore the settlement was not altered.
Source: Wall Street Journal, "NY's top court refuses to undo divorce settlement," April 3, 2012
]]>A Russian billionaire can now attest to this fact following a recent divorce with his wife. The billionaire is best known as the owner of the two most expensive properties ever purchased in the United States - one located in Palm Beach, Florida and the other in Manhattan, New York. To acquire the two properties, the man shelled out a whopping $180 million dollars.
Ownership of the lavish properties will likely be affected by the divorce.
]]> The property in Manhattan, a 6,744-square-foot penthouse located on 15 Central Park West was actually purchased by the billionaire's daughter, who is not living in it at the time. In fact, the apartment is sitting empty. The daughter does plan to live in it later this year. The Palm Beach mansion, purchased from the infamous Donald Trump, also sits empty. The billionaire's lawyer said the house was in unlivable condition when they bought it and they tempted plans of demolishing and rebuilding it. However, they will not act until the fate of the property is settled in the divorce.The billionaire's ex-wife argued she should have the rights to the Palm Beach pad, even though her former husband only listed his daughters as beneficiaries of the trust. The wife called that measure a scam. Last month, she also filed a claim for the Manhattan apartment saying that he purposely tried to create a limited partnership and trust that benefited solely his older daughter and her heirs.
While this is a rare case because the properties at stake are quite substantial, other people facing a divorce likely have to go through the division of their property and assets as well. The process can be very complex, so having the help of an attorney may be necessary.
Source: The New York Times, "Divorce, Oligarch Style," Alexei Barrionuevo, April 5, 2012
]]>Illinois residents who might be thinking about putting off making these important payments might want to heed this ongoing case.
]]> Rodman's ex-wife made the claims through court papers that the ex-Chicago Bulls star owes a whopping $808,935 in unpaid child support. He is making these payments for 9- and 10-year-old children that he fathered with the woman. These payments are also important because the money is used to cover expenses for children.It does not end at child support, either. Rodman is also behind on spousal support, otherwise known as alimony. He is in the hole for $51,441.
This does not mean that Rodman is not at least trying to make payments. While he has come far from making the full payments, an attorney for Rodman's wife conceded that he has issued small payments.
Rodman's own lawyer said he cannot afford to make the full payment. Right now, the only income he makes is based off of nightclub appearances, autograph signings and he's also establishing a topless women's basketball team.
Rodman's attorney argued that the amount of money his wife thinks he owes is disproportionate to the former basketball player's income. It is likely based on the huge income he was bringing in during his days of playing and high-paying endorsements. Rodman, and others in his position, can always look into a modification of child support payments to make them more reasonable.
Source: Chicago Sun-Times, "Dennis Rodman's ex-wife claims he owes $808,935 in child support," Stefano Esposito, March 27, 2012
]]>Although same-sex couples in Illinois cannot yet legally marry, they can participate in civil unions, which are legally binding, albeit to a lesser extent.
Many same-sex couples say they have been involved in a previous breakup that left them with financial woes, according to marriage counselors throughout the nation. That is why an increasing number are turning to the prenuptial agreement. They want to protect financial holdings and family heirlooms now that the stakes are admittedly higher. Some same-sex couples admit that they have been duped in relationships before, and the prenuptial agreement adds a considerable peace of mind.
]]> Same-sex couples are faced with specific difficulties when they choose to draft a prenup, however, because same-sex marriages are not recognized by the federal government. Alimony, compensation for staying at home with children and the distribution of retirement accounts can all become tricky because the courts cannot intervene with the same standard reserved for traditional marriages. Each state follows different rules regarding same-sex unions, which can strengthen or weaken the legal significance of a prenuptial agreement, depending upon location.In situations when a long-term couple finally has the opportunity to get married, the last thing they may want to think about is preparing for a divorce. Admittedly, prenuptial agreements are not necessarily the most romantic topic for a couple to discuss. However, the importance of having one in place, especially when health or financial situations are very different between partners, can be very comforting.
Despite the challenges, many attorneys report that couples become closer while they draft the prenuptial agreement. Qualified family law attorneys can help same-sex couples navigate the confusing processes.
Source: The New York Times, "If 'Forever' Doesn't Work Out; The Same-Sex Prenup," Louise Rafkin, March 23, 2012
]]>In a legal separation, couples must live apart but are still legally married. Couples who have a hard time living together or dislike the thought of divorce due to religious morals benefit from a legal separation because the only thing different from a divorce are signed court papers. The spouses are only married in the eyes of the law.
]]> Legally separated spouses may still share tax returns, health insurance and Social Security benefits. In most cases, a divorce would end these joint efforts, but in many cases, a legally separated couple can still share them.Increasingly, couples are looking for alternatives to the bitter, drawn out battles that some divorces may come with. People no longer have the time or money to spend on a divorce, so in some instances a legal separation is an excellent alternative. There are also ways of working towards a collaborate divorce, which essentially favors mediation over court orders. In both alternatives, child support, child custody, spousal support and property division can be dealt with.
State rules vary when it comes to divorce and separation, so Illinois couples may want to seek advice from an attorney before diving into a legal separation, divorce or mediation. Depending on the people involved in the marriage, one of these solutions may work much better than the others. Determining what is best can go a long way in protecting each spouse's future.
Source: Reuters, "3 Reasons to Get a Separation Instead of Divorce," Andrew Chow, March 1, 2012
]]>Similarly, high-asset divorces among celebrities can be very complex. Recently, actor Dennis Quaid's wife filed for divorce after eight years of marriage, saying that she and the movie superstar have too many personality conflicts.
]]> The woman, Kimberly Buffington-Quaid, has asked that the couple's marital assets be equally divided in the divorce, although the actor has told the court his ex-wife should get nothing. The woman has also asked for spousal support and assistance with attorneys' fees.A temporary agreement has been issued and has awarded Quaid's wife possession of their main residence and one vehicle, while Quaid is using the couple's SUV and condominium. The temporary court order also prevents the couple from disparaging each other in the tabloids, according to official reports. This is not an uncommon request in celebrity divorces.
Also common are issues surrounding child custody and child support. These factors both typically affect financial decisions, but parents are typically very concerned about the custody until final decisions have been made.
Child custody is a particularly salient issue in the Quaid divorce case. The couple's twin children experienced a high-profile medical error at the Cedars-Sinai Medical Center in Los Angeles when medical professionals gave them an overdose of a blood-thinning agent. Both of the children, who are now four years old, have fully recovered from the mistake. Both parents are currently able to visit their children thanks to the temporary custody agreement.
In any divorce with significant assets, making sure that a person's family, future and best interests are protected is very important.
Source: Fox News, "Dennis Quaid's wife files for divorce, report says," March 9, 2012
]]>Referred to as "gray divorce," divorces in couples over the age of 50 are more common than ever. Still, there are many common details that must be acknowledged. Like all divorces, there are likely matters of property division, child care and marital assets to discuss. For baby boomers, however, there may be decades of a marriage to dissolve.
]]> The rate at which couples over 50 are divorcing has doubled in the last 20 years. A number of factors are given for the trend, but basically experts say that couples have raised their children and now are looking at the next chapter of their lives. It just may not include their spouse. Because some marriages have been emotionally over for several years by the time a divorce is considered, couples want the process to be quick.Unfortunately, it might be a little difficult for some couples. In recent history, the housing market has collapsed. In many typical divorces, a shared family home would typically be awarded to an ex-wife. But is that a good thing in this economy? Additionally, couples who share grown children may have college and wedding decisions to make. Financially, who would cover these things?
With legal guidance, however, a couple of any age can develop a fair and balanced divorce plan. From dividing assets to planning for the future of the children, agreements can be made. As the focus of a couple shifts from "we" to "me," preserving the future of each member is increasingly important.
Source: Wall Street Journal, "The Gray Divorcés," Susan Gregory Thomas, March 3, 2012
]]>Currently, people who receive federal benefits can choose to receive their payments in the form of a check or an electronic transfer. When a check is mailed out, a state can take up to 65 percent of those funds for child support payments. However, when a person chooses to have funds transferred directly into a bank account, state child support agencies can confiscate 100 percent of those payments if necessary.
]]> The policy change would completely eliminate the paper check option. Those who collect disability benefits, Social Security or veterans' benefits will be affected by the change. For any parent who lives off these payments and still owes child support, it is possible that they will be left with no money.Reports suggest that many of the people who will be in this situation are only paying interest on previous child support payments. The children who once benefitted from the money are now adults and no longer receive child support. The money that is being seized from electronically transferred federal benefits is going to the state, not a child.
While the final version of the policy change is still being developed, reports state that the government plans to save nearly $1 billion by discontinuing the paper check option. It costs about $1 to mail out a check and only about 10 cents to transfer the money electronically.
In typical child support arrangements, a parent must make the payments in full and on time or they may face serious consequences. Child support is designed to protect the well-being of children who have unmarried or divorced parents. However, when a child is grown and no longer receives the money, any further payments are typically just going to the state for interest on previous payments. Continued collection on past due orders should not impoverish the parent.
Source: Newsday, "Child support plan would seize checks," Daniel Wagner, Feb. 26, 2012
]]>Half of all marriages in the U.S. end in divorce, and even a lifelong marriage will eventually end with the death of a spouse. A prenuptial agreement can help make sure that each person's assets go where he or she wants them to when either occurs.
]]> Prenuptial agreements may be especially useful for people who are entering into a second or subsequent marriage, or getting married after being single for a significant amount of time. Other traditional circumstances that may merit a prenup include marriages between older and younger spouses and those in which the two spouses have greatly unequal financial assets prior to the marriage.When one or both spouses have children from a previous marriage or relationship, a prenuptial agreement may be a critical element of making sure that those children are adequately provided for in all eventualities, including the death of a parent. Prenuptial agreements can also come in handy when one of the spouses expects to receive a large inheritance from their side of the family, and wishes to earmark some, or all, of that for a specific purpose.
Prenuptial agreements have grown in popularity in recent years. Any lingering idea that they are only for the unromantic and very wealthy has been dispelled by the attitude that it is best for a couple embarking on a life together to plan ahead. Couples must candidly discuss the financial aspects of their union and fully disclose their financial assets and prospects to each other. With one of these agreements in place, both spouses can be sure that they, their assets and their futures are protected.
Source: Reuters, "When Valentines and prenups go together," Kathleen Kingsbury, Feb. 15, 2012
]]>Taking this approach means attempting to negotiate the terms of a divorce settlement agreement in a more amicable way. This may especially be beneficial when there are children involved. People these days live very public lives on social networking sites, and bitter and angry messages splashed across Facebook or email can end up hurting both the parents and the children. Choosing how to announce a divorce can be tricky if a couple is trying to work together.
]]> In one instance, a couple recently announced their impending divorce to their extended network of family, friends, and acquaintances with an emailed announcement. It stated, among other things, that they would remain friends, and would, of course, still be dedicated parents to their children. They also asked everyone to feel free to raise issues with them that might arise concerning how their children were reacting to and adjusting to their new family situation.An extended network of social contacts surrounding a family in difficult situations can provide a valuable amount of support, understanding and encouragement. Getting through what might otherwise be a rockier transition may be easier when a couple is open with their loved ones. Announcing an impending divorce in an open and personal way to loved ones may be more comfortable than the alternative.
If a couple has agreed to focus on separating in an amicable and agreeable way, sharing the information with loved ones may be the best way to keep the peace. When feelings are hurt or liberties are taken with the truth, the process of divorce can be much more difficult.
Source: The Huffington Post, "E-nnouncing Divorce," Abby Tolchinsky, Feb. 10, 2012
]]>High asset divorces may necessitate a deeper exploration of all assets. Because Illinois is an equitable distribution state, there is no insistence on strictly equal division of martial property. Understanding the size and extent of a marital state is typically the first step in dividing assets.
]]> In preparation for this discussion, a person may want to take a few steps before the negotiations begin. First, having all important paperwork in order is helpful. This may include bank records, securities acquisitions records, trust agreements, records of gifts from the other spouse, and retirement plan records.Once all the paperwork is compiled, establishing an individual credit card or savings account is recommended. Contact the bank to prevent future charges on a joint or shared account in order to keep funds secure.
During the divorce process, retaining professional guidance could prove to be quite helpful. By seeking advice for both legal and financial reasons, a person can avoid irreparable damage to his or her rights, property and future.
Divorcing parents will want to focus on establishing the parenting plan. Set up child support payments, make a financial plan for the child's college and make sure that the kids have suitable health insurance coverage.
In terms of the future, a couple will want to address the future of their house. Determining whether to sell or keep it will be very important in asset division discussions. Looking even further into the future, a couple will want to determine what will happen with any retirement funds a couple accrued. The valuation of retirement savings is quite complex and should be handled accordingly.
Generally, couples who have more assets to split can have a more complex divorce financially. However, by being prepared, seeking support and planning for the future a couple can successfully navigate a high asset divorce.
Source: The Huffington Post, "We're Getting A Divorce, Now What?" Linda Descano, Feb. 1, 2012
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