It is now a week after and the wedding checklists are getting longer as more items are added to the "to-dos."A discussion with an attorney about whether a prenuptial agreement is right for you should be added to that list.
]]> But who is a prenup for if not for one significantly wealthy partner? More and more couples are waiting to get married or are on their second or third marriage. Couples who wait have already established their own financial life whether they consider themselves wealthy or not.Other couples may have expectations in the future such as a family inheritance. One partner may own real-estate that he or she wants to have a plan for. Drafting a prenuptial agreement not only helps plan for a divorce but shows intent in terms of estate planning.
Second marriages often involve children from a prior marriage that fathers and mothers want to make sure are protected in the event of a death or a second divorce.
Finances are more often than not a reason for divorce these days. In fact, financial infidelity is often a major trust issue in relationships. Drafting a prenup not only sets terms for monetary assets or investments, but provides for full financial disclosure before the "I do's" are said.
Source: Reuters, "When Valentines and prenups go together," Kathleen Kingsbury, Feb. 15, 2012
]]>The whirlwind of the evening still lingers for those couples, but now the wedding planning begins. When San Jose couples make their wedding checklists, they should seriously consider including a prenuptial agreement as one of those items.
]]> Prenuptial agreements carry with them as much of a stereotype as anything else, if not more. Many people assume that a prenup is only made as a way for a very wealthy individual as a weapon. There is an assumption that a prenup cannot be made with love in the heart.Those assumptions are entirely untrue. Society has changed in recent years, and many more men and women are carefully planning for their future. Whether it is through divorce or by the death of a spouse, a marriage will end. Prenuptial agreements simply set out intent for property and provide a plan for any event.
The terms of a prenup can cover almost anything a couple wants included. The most common terms cover real-estate, bank accounts and intent for asset control or alimony during estate planning or divorce. The two major topics that cannot be regulated by a prenuptial agreement are child support and child custody.
Source: Reuters, "When Valentines and prenups go together," Kathleen Kingsbury, Feb. 15, 2012
]]>Source: Digital Life on msn, "Divorce lawyers see more phone evidence, especially texts," Athima Chansanchai, Feb. 10, 2012
]]>The next step in the divorce process is the settlement negotiation between the parties. In California, you need to be knowledgeable and prepared for the settlement negotiation process. There are several ways you can prepare yourself for this negotiation process.
]]> If you are preparing for a settlement negotiation you can become better prepared by obtaining all of your relevant documents. These types of documents can include but are not limited to bank statements, taxes and property information. Having these types of documents will help you assess your future needs for support, maintaining your homestead and your retirement benefits. Part of the settlement negotiation process includes planning for child support, college funds and health insurance.During the divorce process you should begin to establish yourself as an individual. This can include establishing your own bank accounts and credit cards. Although you are establishing your individual accounts, ensure there is a plan in place for expenses during the divorce process.
Divorces involve negotiations, financial assessments and legal issues. Being able to navigate through divorce proceedings includes planning and often requires consulting with knowledgeable professionals to address all of the areas of your divorce to help you reach a beneficial result in the divorce process.
Source: The Huffington Post, "We're Getting A Divorce, Now What?" Linda Descano, Feb. 1, 2012
]]>Although a court set the child support payments ranging from $5,000 to $20,000 per month, per child based upon their determination of his ability to pay, it was clear that he had been unable to keep up. The athlete claimed that there had been a change in circumstances great enough that it required modification of child support obligations, and the court agreed.
]]> Owens argued in a support hearing that the original payment obligations had been based on his income that included a large NFL paycheck. Since that time, he has remained unemployed by any NFL team. Without that income, he said that the payments were "nearly impossible" to make.The court judge modified the support obligation and sealed the new child support order. Although access to the specific details is unavailable, sources reported that Owens is happy with the modification which "accurately reflects the amount of money [Owens] is making."
The modification request was not only granted in terms of support payments but also in terms of visitation. The athlete allegedly requested and was granted more visitation time with his children. A source close to him said that he "is in a good place and this is the best way to start off the new year."
Source: examiner.com, "Terrell Owens wins big in child support case," Kelly Cozzone, Feb. 6, 2012
]]>Only years ago it was fairly easy to sell your home and walk away without a loss or even with a profit. That is not as true today with more and more homes falling underwater - an owner owing more on their mortgage then the home is worth.
]]> Dividing a profit from a sale between divorcing couples can be difficult in itself. Both partners have their own idea about how much they are due. Dividing unwanted debt can be even more difficult. Although California's community property theory helps dividing debt equally between spouses, it does not solve the problem of what to do with the property.Many divorcing couples are finding that they do not want to or cannot sell their home. They struggle with whether to try to sell it for a loss and walk away with the debt or keep it and figure out a fair living situation.
Some lenders allow divorcing couples to modify their loan but this option is not available to everyone. Other options include a short sale or voluntarily deeding the home back to the lender.
If you are contemplating divorce but fear that an underwater mortgage could complicate the process, have this conversation with an experienced divorce attorney who can find solutions that will work for you.
Source: Fox Reno, "Divorcing couples struggle with negative equity in their homes," John Seelmeyer, Jan. 31, 2012
]]>Child support covers the cost of a kid's education from preschool to high school, but what about college? Most state laws end the obligation to pay child support when the child reaches the age of 18 and without a court order, one parent cannot force their ex-spouse to pay. Is there an easier option?
]]> When contemplating divorce and drafting a custody agreement for the children, parents should consider including terms for higher education even when a child is only a toddler. You do not have to name the school or know the future cost of tuition to draft terms that will help effectively resolve the tuition situation.The sky is the limit when deciding the terms. The terms could divide tuition by percentage: Parent A pays 60 percent, Parent B pays 40 percent. The cost can be divided by type of expense: tuition, books or room and board. There can be a limit on the dollar amount spent by each parent and can include costs associated with traveling to and from the college.
The agreement can go further than cost and include restrictions or requirements for the type of school. If religion is an issue, parents can include terms that would either require a college of a certain religion or prevent a child from attending others. Terms can include distance or cost requirements, private or public and whether they are allowed to live on or off campus.
If you have any concerns about how you will pay for your child's tuition, you should have a conversation with an experienced family law attorney. They will inform you of your options under California state law and what solutions may be available.
Source: Forbes, "Who Pays for College Tuition? Top Factors for Divorcing Women to Consider," Jeff Landers, Jan. 24, 2012
]]>When McCourt and his then wife bought the Los Angeles Dodgers in 2004, they sought out legal counsel to protect their marital assets. The acquisition was heavily financed with debt, and the McCourts wanted to structure the deal in a way that would insulate them from financial liabilities and the risks of owning a baseball team.
]]> The couple executed a marital property agreement stating that McCourt would own the Dodgers while his ex-wife would own the rest. But things went horribly awry. The McCourts signed copies of the agreement in Massachusetts and California, but the California copies appear to have provided the opposite of what the Massachusetts copies provided. This error proved costly in the McCourts' divorce, where the judge ruled that the couple had not reached an agreement on who owned the Dodgers. The judge therefore declared them co-owners.McCourt's quandary brings into sharp relief the necessity of hiring precise and experienced legal counsel when executing post- and prenuptial agreements. Married couples may wish to execute such agreements for a variety of reasons. But whatever the motivation, the parties involved must be sure that the agreements conform to state law and that they are executed properly. Although most people do not have as much money at stake in divorce proceedings as the McCourts do, the issue of who gets what is of no less importance.
Source: ESPN.com, "A silver lining for Frank McCourt?" Lester Munson, Jan. 20, 2012.
]]>As the years go by, it is inevitable that people change. Even the most in love couples can grow apart and find that divorce is really what they want. According to the California couple, this is exactly what happened to them.
]]> The pair confirmed their intention to separate in a cooperative statement to the press in which they said that "after much soul-searching" they decided to end their relationship. "We have had the deepest respect for one another throughout our relationship and continue to love each other very much, but we have grown apart. This is an amicable process and protecting the well-being of our children remains our top priority," they said in the statement.An uncontested divorce is a route that many couples choose. A couple can come to a settlement agreement with attorney assistance instead of leaving the many decisions to be determined in court. One major benefit of an amicable divorce for celebrities is that they can keep the details of the separation private and out of the public eye.
The couple has three children together and has amassed a large amount of wealth over the seven years in which they were married. It is unclear whether a prenuptial agreement is in existence which many high-asset couples such as this one often have.
Source: Chicago Sun-Times, "Heidi Klum, Seal ready to say 'Auf Wiedersehen,'" Bill Zwecker, Jan. 22, 2012
]]>An attorney can assist a couple who wish to remain legally married but do not want to continue the personal side of the marriage. Simply separating as mentioned in the prior post is a risky option. Even when a couple verbally commits to terms for a separation, there is no guarantee that they will be followed. A legal separation can help set out terms much like a divorce settlement, but allow the couple to remain married. The simple piece of paper is a contract that holds both spouses responsible and gives both spouses recourse if the terms are not followed.
]]> A legal separation is a contract that sets out terms for the division of assets, payment of outstanding debts, possible alimony or spousal support and even child support or visitation agreements. It can ensure access to certain funds in the instance that intended cooperation falls apart. It acts much like a divorce settlement but allows the pair to remain legally married under the eyes of the law.The agreement is a legally binding agreement that is important in protecting each spouse and their financial picture. When a couple informally separates, they remain liable for one another's debts and have no right to alimony payments or child support. Technically, the assets and liabilities and income all remain marital property. A legal separation defines the obligations of each spouse.
It is important to note that requirements vary from state to state. An experienced family law attorney can discuss options available to you and any questions or concerns that you may have.
Source: Forbes, "Legal Separation or Divorce: Which is Better Financially?" Jeff Landers, Jan. 10, 2012
]]>But what if a full divorce is not right at the moment? Some couples may decide that their emotional and physical relationship is over, but know that officially ending their relationship would mean financial consequences that they do not want. Some may decide to leave things as is and simply live apart. This can be a risky option, but what other choice do they have?
]]> There are many reasons why a couple may want to remain legally married even though they no longer want to continue their personal relationship. For some, social security benefits are a vital part of their future but there is a 10-year marriage requirement for sharing a spouse's benefits. Couples only a year or two away from that benchmark may choose to temporarily remain married to ensure that they have those benefits.Other couples remain married for health care benefits. Often a spouse who does not have health care through their job or because they were a stay-at-home parent need to remain under their spouse's health insurance benefits. However, most employer-provided health care requires that the other beneficiary is a spouse, not a former spouse.
Other reasons include religions that do not honor divorce, tax benefits that result from filing jointly or even for alimony purposes when a couple cannot afford to sell their homestead or keep up two separate residences.
Divorce is not the only way to end a relationship. A family law attorney can discuss other options; in this case another option would be a legal separation which we will elaborate on in our next post.
Source: Forbes, "Legal Separation or Divorce: Which is Better Financially?" Jeff Landers, Jan. 10, 2012
]]>This was the gist of a recent ruling from a California Court of Appeals. In that case, an ex-wife sought a modification of a child support award that had been based on a child support agreement entered into seven years prior.
]]> Based on the financial situation of her ex-husband, a trial court agreed that the child support award should be modified. The amount of the award thus increased from $8,500 to $18,000 per month.However, the trial court also imposed sanctions on the father for failure to disclose the changes in his financial status. He appealed both the modification of the child support award, along with the penalties imposed for failure to disclose.
While the court did affirm the modification of the child support award, it disagreed that parents owing child support have a continuing duty to present financial information whenever their status changes.
This is an important result for those California parents who are obligated to make child support payments, but whose financial situation may have changed, either for the better or for the worse. This means that because there is no obligation to make a disclosure, unless a modification suit is brought, then a child support or alimony order will remain intact.
Source: Metropolitan News-Enterprise, "C.A. Limits Duration of Duty to Disclose in Child Support Cases," Kenneth Ofgang, Jan. 6, 2012
]]>Source: abc news, "Russell Brand Might Get $20 Million in Divorce From Katy Perry," Jan. 2, 2011
]]>Religion is often a contentious issue during and -- even more often -- after a marriage has ended. Many couples these days have very different views on religion and just how it should play a role in their children's lives. When a couple gets divorced, without a legal agreement covering the subject, there is really no way to know what influences your child experiences while at the other parent's home.
]]> More and more custody arrangements are becoming quite specific in terms of the when, where, why, how and what questions that could come up. Religion is one of those issues that are becoming even more defined in many agreements.Traditionally, many agreements only included the time sharing aspect of religion when it comes to holidays. Many only stipulated where each child would spend Christmas, Easter, Hanukah or any other holiday. The details may have been more about when the transfers would take place, on what years each spouse would have custody.
Now, the agreements are including much more details. Questions are answered all the way from what denomination the children will be raised under to who will pay for the bar mitzvah. Terms can be set out that include whether a child will go to Sunday school until they are confirmed.
Not only can requirements be decided and defined, but prohibitions can be declared as well. If you want your child to refrain from being taught certain religions or from having to go to church, you can include those details too. Either way, it is best to have a clear and definite agreement to avoid possible chaos. If you change your mind, you can modify the agreement down the road.
Source: The Washington Post, "Divorce's details: Custody agreements are getting more complex," Michelle Boorstein, Dec. 26, 2011
]]>Another story recently broke that also relates to the time factor for divorce in California or anywhere. Sinead O'Connor not only got married in December of 2011, but came to the conclusion that the marriage would not work and filed for divorce that same month.
]]> The singer and her boyfriend traveled out to Las Vegas - the city known for spur-of-the-moment marriages - and said their "I Do's" at a little chapel aptly named the Little White Chapel. The marriage took place on Dec. 8, 2011 in a pink Cadillac, an adventure that the singer described as "Rock n Roll."Only three short hours after they walked down the aisle, the singer saw behavior from "certain people in [her husband's] life" that made her question the decision to wed. The 45-year-old singer later announced her decision to file for divorce on her website.
The singer is familiar with the requirement of a court decree to end her short marriage as this will be her fourth divorce.
Short divorces like O'Connor's are not going to be very complicated to end. The couple probably did not gain many assets during the short period or earn significant income. However, they still do need to end the marriage in a court of law either through divorce or an annulment.
Source: Long Island Press, "Sinead O'Connor: Divorce After 18 Days," Jessica Sinclair, Dec. 28, 2011
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