High Net Worth Divorce Married CoupleDivorces are never easy or pleasant.  The old saying “choose your battles” has never been more salient than in the context of a divorce proceeding. Therefore, the first consideration for any person going through a divorce, especially one in which substantial assets are involved, is the cost associated with achieving your legal objectives; both emotionally and financially.

Listed below are 5 of the more common mistakes that many High Net Worth Individuals make during a divorce.  They include:

Failure to Consider Tax Consequences:  Tax considerations are a critical component of a high net worth divorce.

When you divorce and you receive certain assets you could be taxed on distributions or you could agree on an alimony amount based on your budget without considering how much you will actually clear after taxes. Work with your attorney and a financial advisor to gain a clear picture of the true implications of distributions and alimony.

Hiding Assets:  Some spouses think that they can simply transfer their valuable assets to a third party such as a business partner or child from a former marriage.  These kinds of transfers can, and usually are, seen as fraudulent thus impacting one of the most important factors in a courtroom: trust and credibility.  Hiding any of your assets is not worth the short and long term potential impact.  When it’s apparent that you have transferred funds in an effort to hide them, you will be in a losing position for everything else related to a proper or reasonable divorce settlement. (more…)

Categories: Agreements, Divorce, Equitable Distribution, High Net Worth Divorce

No union is more profound than marriage, for it embodies the highest ideals of love, fidelity, devotion, sacrifice, and family. In forming a marital union, two people become something greater than once they were. As some of the petitioners in these cases demonstrate, marriage embodies a love that may endure even past death. It would misunderstand these men and women to say they disrespect the idea of marriage. Their plea is that they do respect it, respect it so deeply that they seek to find its fulfillment for themselves. Their hope is not to be condemned to live in loneliness, excluded from one of civilization’s oldest institutions. They ask for equal dignity in the eyes of the law. The Constitution grants them that right.

Source: http://www.supremecourt.gov/opinions/14pdf/14-556_3204.pdf

Categories: Same-Sex Marriage

OK, it might just be a bit too animal-centric and precious to refer to premarital contracts as “pre-pups,” as a recent media article does, but the term is purposefully stated and does make a very valid point.

That point is this: Pets are much beloved members in millions of families across the country, Pennsylvania homes not being excepted, and their well-being is a central consideration to the families in which they are cherished additions.

Reportedly, there are close to 180 million cats and dogs living in homes in the United States, and the humans with whom they interact view them as far more than personal property.

That, though, is how judges across the country have historically viewed them, especially in family law disputes where important aspects of their future are being determined.

Yes, that means that judges in many divorce cases haven’t looked upon the family dog or cat as being much different — at least legally — from a sofa or a refrigerator. In millions of cases, a “custody” outcome regarding a pet has hinged on a simple determinations concerning who paid for the animal and primarily provided for its upkeep.

Most Americans immediately dismiss notions of their loved animals as objects, and many of them just as quickly express repugnance over going to court to have an important pet-related matter pronounced upon by a judge who has no personal interest in the animal.

Thus the uptake in prenuptial agreements, with one commentator on the subject noting that important matters such as primary custody and visitation regarding a pet can be stressed in such contracts and held enforceable.

And, yes, litigation is an option, with it also being noted that some judges are changing their tune on how they oversee pet-related disputes before them. In one recently referenced case, a judge called for a one-day hearing based on a “best for all concerned” standard that considered the best interests of the pet and humans involved, respectively.

Such a judicial mindset seems respectful of a matter that litigants unquestionably take very seriously, as well as acknowledges the tremendous importance that pets have in millions of American families.

Source: USA TODAY, “Pets increasingly at center of divorce battles,” Cameron Saucier, Aug. 24, 2014

Categories: Prenuptial Agreements Tags:

While divorce among most demographic groups across the country seems to have tapered off or even declined in recent years, the same cannot be said for one population, namely, persons over 50.

In fact, a study from last year indicates that about 25 percent of all divorcing couples in the country are from the baby- boomer generation.

The underlying reasons that contribute materially to that reality are many and complex and certainly worthy of consideration. In fact, we might well delve into what family law commentators are duly noting about the catalysts in boomer divorces in a future blog post for our readers in Pennsylvania and elsewhere.

Today, though, we focus on more pointed subject matter, specifically the financial considerations that centrally attend divorce for more mature couples.

For obvious reasons, finances can rank high in importance for divorcing boomers, many of whom are close to — or already in — retirement. Living independently after years — sometimes decades — of married life can present new challenges.

It’s best to be ready for them, to the fullest extent possible. Enlisting timely and proven input from an experienced divorce attorney with a demonstrated record of advocacy on behalf of older divorcing clients can help ensure that important financial considerations are identified prior to divorce and conscientiously attended to during the divorce process.

Those considerations can be many. They range from ultimate decisions regarding the family home and assets within it to the disposition of retirement accounts, pensions, stock options and other savings vehicles.

Tax implications can also surface during and after a divorce. A proven family law attorney can work with an older client to fully identify financial-related issues that need resolving in a dissolution proceeding, so that post-divorce life can be devoid of money-related concerns as much as possible.

Source: Investopedia, “Divorce over 50: Seven mistakes to avoid,” Catherine Fredman, Aug. 4, 2014

Categories: Divorce, Uncategorized Tags:

You may be making spousal maintenance payments to a soon-to-be former spouse or already divorced partner. Did you know that such payments can be claimed as a deduction on income in your income tax return?

Alternatively, you might perhaps be receiving pre-divorce spousal support or alimony following your marital dissolution. Were you aware that incoming money earmarked for that purpose is regarded by the Internal Revenue Service as taxable income?

There is a lot to learn about alimony, which many currently married or ex-spouses find out when it is sought to be applied to their personal situation.

For instance, many Pennsylvania residents might not know that relevant state statutory law provides for multiple types of spousal support, with special parameters applicable to specific situations. Spousal support applies to payments following marital separation but prior to divorce. Alimony pendent lite covers a temporary payment arrangement following a divorce filing but preceding a final dissolution decree.

And then, of course, there is alimony, which applies post-divorce. As noted in an article discussing this legal remedy in Pennsylvania, a state judge must consider a number of enumerated factors pursuant to reaching a decision on alimony payments and duration.

Modifying an alimony order can also entail some complexities, including judicial consideration of the relative significance — or lack thereof — of one or more changes in either a payer’s or recipient’s life.

The close and studied input of a proven family law attorney well-versed in support matters can be instrumental in an alimony outcome, across a wide spectrum of considerations that include support type, payment amounts, duration and modified circumstances.

Source: DivorceNet.com, “Understanding and calculating alimony in Pennsylvania,” Melissa  Tapply, accessed Aug. 5, 2014

Categories: Family Law Tags: , ,

In most instances, and for obvious reasons, divorce in Pennsylvania or anywhere else is a weighty matter.

That is really not surprising, given the number of considerations that can arise when a couple seeks to legally dissolve a marital union. Although every divorce brings its own set of circumstances that need to be considered and resolved, certain matters tend to feature recurrently in many divorce proceedings.

Child custody (including, centrally, parenting plans and visitation) is naturally of core importance in many divorce negotiations. Given the close focus on children that attaches in family law cases, child support considerations also loom large in many judicial determinations. The same can be true regarding property-related matters, chiefly the identification, valuation and equitable distribution of assets.

In what it terms “a public service,” the Pennsylvania Bar Association touches on some of these and additional matters in a divorce pamphlet that is available for public scrutiny on its website.

Even a quick scan of the information that has been set forth reveals its utility in providing basic knowledge regarding the divorce process in Pennsylvania.

The document can never replace the counsel of a seasoned family law attorney, of course, which is something the brochure explicitly states.

In fact, state bar authorities expressly recommend that any Pennsylvania resident served with a divorce complaint “consult an attorney immediately.”

The reasons for doing so are many, and they are enumerated with some detail in the bar association’s pamphlet. A proven family law lawyer can provide further information and diligent representation in any divorce-related matter.

Categories: Divorce, Uncategorized Tags: , ,

Marital contracts entered into both before and during marriage are becoming increasingly common in Pennsylvania and everywhere else across the country.

Of course, popularity was about the last thing associated with such agreements in past decades, when a stigma regarding them unquestionably attached in the minds of many people. A prenuptial agreement or postnuptial contract spelling out in detail how certain things would unfold in the event of a failed marriage struck many people as more than a bit unseemly.

That is far from true these days, as more couples are appreciating these agreements for what they simply are, and for what they can do in eminently effective fashion. Above all else, they are planning devices that can help couples openly discuss and define before or during the early years of marriage what is most important to them. A prenup or postnup (to use their short forms) can clarify uncertainties and promote predictability in outcomes regarding matters deemed important to spouses.

Such agreements come with the caveat, of course, that they must be enforceable in a court of law. Certain factors can certainly militate against that, which is why the timely and close involvement of a proven family law attorney experienced in drafting such contracts is of critical importance in virtually all instances.

Provisions that are flatly so unreasonable that they raise questions concerning public policy will raise the eyebrows of a judge. So, too, will evidence that a party’s signature was induced by coercion, duress or fraud.

As a recent article on marital contracts notes, soliciting assistance from “the best divorce lawyer you can find” is the preferable course of action for any person wishing to challenge a marital contract on grounds of unenforceability.

Source: Huffington Post, “When a prenup gets thrown out,” Stann Givens, July 1, 2014

Categories: Prenuptial Agreements Tags: ,

“Having a really good attorney and fighting for your fair share” is critically important to an equitable property division outcome in many so-called “gray” divorces in Pennsylvania and nationally, says an executive with a national family research organization.

It’s not hard to see why.

Gray divorce — another description for marital dissolution among comparatively older baby boomer couples — is a hot-button topic in family law these days. It is certainly understandable why that is the case, given the reported doubling of the divorce rate over the past quarter century for persons 50 and older.

What comes to the fore in many such separations are considerations regarding the equitable distribution of marital property. As noted in a recent New York Times article, that is often of central importance in gray divorces, owing to the fact that post-divorce life for many baby boomers begins during post-career years and after prime money-making decades have passed.

In Pennsylvania, a proven family law attorney with long-term experience dealing with property division matters can help a client determine, in the first instance, what qualifies as marital property subject to an equitable distribution between divorcing spouses. Following that determination, it is of highest importance that all such property be properly valuated.

As the Times article states, there are a number of asset sources that a divorcing spouse might overlook during the divorce process. That can be a costly mistake.

Such sources include things like deferred-compensation plans, company pensions, stock options and Social Security benefits.

Finding, valuing and fairly allocating all such assets is critical to an equitable divorce result. A central role of an experienced divorce attorney is helping to ensure that a property division outcome fully promotes a client’s best interests.

 

Source: The New York Times, “Retirement plans thrown into disarray by a divorce,” Constance Gustke, June 27, 2014

Categories: Divorce, Uncategorized Tags: ,

In Whitewood v. Wolf, 2014 WL 2058105 (M.D.Pa. 2014), the Federal District Court for the Middle District of Pennsylvania held that Pennsylvania’s ban on same-sex marriages was unconstitutional, thus same-sex marriage is now legal in Pennsylvania. One area of the law that will be greatly impacted by this decision is paternity; however, it remains to be seen what effect the holding will have. Many would argue that the “presumption of paternity” will apply to same-sex couples, and for policy reasons, it should. The presumption holds that a child born to a married woman is a child of the marriage; the presumption “is an extremely strong one, and can only be overcome by clear and convincing evidence to the contrary.” John M. v. Paula T., 524 Pa. 306, 314, 571 A.2d 1380, 1384 (1990). The purpose of the presumption is to protect and preserve the family unit and to promote the best interests of the child. See Brinkley v. King, 549 Pa. 241, 701 A. 2d 176 (1997). If the sex of the couple no longer matters regarding the protection of the marital unit, the same purpose of protecting the family obtains in same-sex settings. However, historically, the presumption couldonly be overcome

by proof of physical impossibility of the impregnation of the wife by the husband. See John M. In the same-sex context, such evidence is of course facially present: the child could not have been a biological product of the parties. Thus the obvious physical evidence would refute the presumption, but the presumption should still apply for policy reasons.

The doctrine of “paternity by estoppel” applies where one person holds a child out to be his own and provides support. Fish v. Behers, 559 Pa. 523, 741 A. 2d 721 (1999). In the estoppel case, physical evidence of parentage is not relevant, and the controlling issue, as recently announced by the Pennsylvania Supreme Court, is the best interests of the child. See K.E.M. v. P.C.S., 38 A.3d 798, 809 (Pa. 2012). Accordingly, the sex of the parents should never have been, and should remain, of no moment. The Whitewood ruling is congruent with “paternity by estoppel.”

Categories: Same-Sex Marriage Tags: , ,

In Pennsylvania, the legislature’s attempt to limit marriage to the traditional model, by defining it as a “civil contract by which one man and one woman take each other for husband and wife,” has been found unconstitutional. The legislature, in the wake of the federal Defense of Marriage Act (DOMA), had passed a law limiting marriage to persons of the opposite sex, and barring recognition of same-sex marriages from other states. The Federal District Court for the Middle District of Pennsylvania has now found the law to be unconstitutional. See ACLU article

Categories: Same-Sex Marriage Tags: , , ,