Ohio readers are familiar with the importance of prenuptial agreements and the tremendous benefits that such agreements can provide couples. In particular, a prenuptial agreement can protect assets during marriage dissolution as well as exponentially increase the speed of the property division stage of a divorce. A prenuptial agreement can also be used to, ensure a spouse that they will not be held liable for the bad financial decisions of the other spouse.
]]> While these are perfectly legitimate and valid provisions to include in a prenuptial, not every provision is considered valid in the eyes of the court. Some provisions that are looked down upon by the court include provisions which attempt to modify child support obligations, or any other provision that violates state or federal law. Rather than invalidating the entire prenuptial agreement, however, often times the court will simply sever the bad provisions while enforcing the rest of the agreement.While the validity of certain provisions are black and white, provisions concerning behavior are much more tentative. Whether or not a court will uphold a lifestyle clause may depend on a variety of factors, including the judge. To ensure that a prenuptial will hold up in court, and the interests of the parties will be protected, it is important that couples seek the assistance when preparing a prenuptial agreement.
Source: KTNV, "Lifestyle clauses gaining popularity in prenuptial agreements," Jessica Janner, May 1, 2013
]]>A woman in Virginia recently won physical and legal custody of her granddaughter following the murder of her daughter, the mother of the girl. According to news reports, the young girl's mother was shot and killed following a fight that occurred last September. The man who was accused of the crime was apparently the best friend of the girl's father. Although he was indicted on murder charges, he walked after witnesses in the case refused to testify.
]]> Following the murder of the girl's mother, a child custody dispute developed involving the grandmother and the father. The court granted the grandmother custody after the young father showed up to the child custody case high. According to reports, a drug test revealed that the father had cocaine in his system. The attorney for the grandmother believes that this revelation may have been what finally tipped the scale in favor of the grandmother.Courts are hesitant to take children away from their parents. In cases where the courts do intervene, there generally must be a showing that the parents are unfit to care for the child or the health and well being of the child are in jeopardy. Some reasons the court may intervene with parental rights and grant a grandparent legal and physical custody of a grandchild include substance abuse, mental illness, severe economic hardship or physical or mental abuse of the child.
Source: NBC12, "On Your Side: Grandmother wins custody of child," Diane Walker, April 30, 2013
]]>Ohioans have always been particularly sensitive to the issue of domestic violence. Each year for the last 10 years, residents have come together for the Evening of Hope. The annual fundraiser, which was organized to fight domestic violence, has raised more than $2 million to benefit the Center for Family Safety and Healing at Nationwide Children's Hospital. While the goal of ending domestic violence is still a ways off, it is good to know that people care.
]]> Domestic violence is a broad term referring to acts of violence that are typically committed by a family member, such as spousal abuse, or household member against another member of the household. While the term is commonly associated with physical abuse, domestic violence can also refer to sexual and emotional abuse. It can also involve other forms of harassment and intimidation such as online stalking, cyber harassment and cyber bullying.Due to the seriousness of the problem, the victims of domestic violence need to get help immediately. Fortunately, there are many resources available to the victims of domestic violence in Ohio. From government programs and non-profits to experienced family law attorneys, there are multiple professionals available to assist the victims of abuse file for divorce, obtain restraining orders, and, most importantly, protect the safety of children.
Source: The Columbus Dispatch, "Men take lead against domestic violence," April 15, 2013
]]>According to a recent research study on household finances, more women are out-earning their husbands than ever before in history. While the numbers may still be relatively small, in cases where a woman does out-earn her partner there can be significant economic consequences during a divorce. Like men in a traditional divorce, high-earner women may be order to pay alimony, be relegated to the role of non-custodial parent and more.
]]> One way for a high-earner spouse to protect themselves against some of these issues, particularly the financial issues, is to prepare a prenuptial agreement. The purpose of the prenuptial agreement is to establish clear rules concerning asset division and other estate planning issues should the couple end up in divorce court. In addition to providing some certainty regarding financial issues, a prenuptial agreement can also expedite the divorce.While prenuptial agreements are highly recommended for their ability to address many important financial issues ahead of time, there are also limits to what can be included in a prenuptial agreement. Understanding what can and cannot be included in a prenuptial agreement is essential to drafting a valid document that will hold up in a divorce. To learn more about this it is important to discuss your prenuptial agreement with an attorney.
Forbes, "Divorcing Women: When You Earn More Than Your Husband," Jeff Landers, April 10, 2013
]]>With more Americans divorcing later in life, it is important that family law attorneys have experience managing the unique divorce-related issues of this segment of society. Unlike younger couples with few assets, older couples are more likely to have large estates with complex property division needs. Dividing assets is a pain, and while the desire may be to do it quick and fast, this can actually result in significant and costly financial consequences.
]]> In order to get the most out of a divorce it is strongly recommended that couples seek the assistance of a professional. While the instinct to get it done quickly is understandable, it is important to remember that it takes years to build a life with someone, so it may be worth investing some time to take it apart. Hasty decisions to cash out investments or sell stock can have huge tax implications, something that can be avoided with a little forethought.In addition to preparing financially, it is also recommended that couples consider some form of counseling. While this may not be required, it is certainly something that many couples find beneficial. When two people have spent most of their lives together raising kids and building a home the emotional toll associated with divorce can be devastating. Taking some time to attend to those vital emotional needs is a good way to start a new chapter in life.
Source: Milwaukee-Wisconsin Journal Sentinel, "Tips for baby boomers seeking divorce," April 3, 2013
]]>While the story provides perfect fodder to lecture couples about the importance of estate planning and a well-drafted prenuptial agreement, it is an equally good time to discuss the tax consequences of asset division. With a potential settlement in excess of $5 billion, many commentators have speculated about the tax consequences of the Hamm's divorce. While it is impossible to avoid taxes forever, the couple may be able postpone an immediate bill.
]]> The federal tax code allows couples during marriage, and within certain limits after divorce, to avoid paying income tax on the transfer of property between spouses. This provision, found in Section 1041 of the tax code, was enacted in 1984 to overturn a previous Supreme Court ruling that found property division incident to divorce taxable. As the law sees it now, one spouse is not making a gift to another; they are giving the person back their property.Despite the fact that Section 1041 allows spouses to divide property without having to pay taxes incident to the transfer, this does not mean that there are no tax consequences. When the couple transfers the property the basis for tax purposes is transferred to the recipient. This means that when the property is ultimately sold or disposed of further down the road taxes will still have to be paid by the recipient based on the property's original tax basis.
Source: Forbes, "Tax Bite On Oil Billionaire Harold Hamm's Record $5B Divorce," Robert W. Wood, March 25, 2013
]]>Most Ohio readers will agree that divorce has a bad reputation. This is not just because divorce is emotionally exhausting, but to some the process makes relationships worse. In an attempt to alleviate some of the burdens created by the adversarial nature of a divorce proceeding, some attorney's offer a process commonly known as collaborative divorce.
]]> Collaborative divorce is a dispute resolution process that utilizes teamwork rather than conflict to resolve divorce related issues. To initiate the process, each spouse hires an attorney and all parties agree to abide by the collaborative approach. If the collaboration should break down, the spouses may turn to the court but they must hire different attorneys.Because the approach seeks to negotiate complex divorce settlement agreements through collaboration, lawyers act more like transactional attorneys negotiating a complex business agreement than as litigators. Furthermore, because the collaborative process is more fluid than a traditional divorce proceeding and the parties ultimately decide their own fate, the settlements can be much more creative and satisfying than court imposed agreements.
While collaborative law may not be right for every legal dispute, there are certainly benefits to using this approach. Those seeking a divorce should explore all their legal options prior to filing. For some families, collaborative law may be a quick, easy and better solution for them.
Source: WLTX, "Collaborative Divorce Offers Options To Court Battles," Maura Ammenheuser, March 21, 2013
]]>According to a recent research study, almost half of all first children born today are born to unmarried couples. The study revealed that while the average age for marriage among women is 26.5 years, the median age for having a first child is now 25.7. Among twenty-somethings in particular, the report showed that nearly 44 percent of U.S. women in their twenties have children by the age of 25 while only 38 percent of those woman are married.
]]> There are many views and opinions concerning couples who choose to have children outside of marriage. The world is a very different place than it was fifty years ago. Today it requires significantly more education to reach the American middle class. This means that many young adults are staying in school longer to pursue advanced degrees or additional training. Another factor is a change in views about the institution of marriage.The parental rights for unmarried couples are identical to those of married couples. If an unmarried couple breaks-up, like in a divorce, the couple will still need to resolve important child custody issues such as physical custody, legal custody and visitiation rights. Just like a married couple that is going through a divorce, if an unmarried couple is unable to reach an agreement in regards to custody outside of court, a family court judge will be part of the process to resolve these issues.
Source: KFLX, "Almost half of first babies in U.S. born to unwed mothers," Michelle Castillo, March 16, 2013
]]>The long divorce battle between Deion and Pilar Sanders seemed to be heating up the other week when it was reported that the couple would go to trial over their custody dispute. The purpose of the proceeding was to hash out child custody arrangements. In a rather quick deliberation, lasting only one hour and 44 minutes, the jury decided in an 11 to one decision that Deion and Pilar would share the custody of their only daughter and that their two sons would stay in the custody of their father.
]]> While the decision came as a happy surprise to the former Dallas Cowboys superstar, Pilar Sanders was openly disappointed by the jury's decision. Her disappointment, however, was not a surprise. Whenever a couple is unable to establish child custody arrangments on their own, it becomes the duty of the court to make those arrangements. In such cases, parties rarely get exactly what they want, which can be very difficult and emotional for the parents.In Ohio, like many states, the court uses the "best interest of the child" standard in order to allocate parental rights in a divorce proceeding. Typically, physical custody of the child is assigned to one parent. In Ohio, however, if one parent requests shared parenting and files a plan that demonstrates the request is in the child's best interests, and that plan is approved, the court may allocate full legal and physical parental rights to both of the parents, also known as joint custody.
Source: WFAA-TV, "Jury decides custody of Deion Sanders' children," Marcus Moore and Jason Whitely, March 12, 2013
]]>When divorcing couples first approach counsel about divorce, they often want to know how long the process will take and how much it will cost. The answer, of course, is that it depends. When couples know little to nothing about the estate, the process can be long and drawn out. To begin, an accurate accounting of the estate needs to occur before negotiations can even begin. To make the process less costly, it is good for both parties to stay up to date about the family budget and estate.
]]> In addition to remaining knowledgeable about the family estate, it is also very helpful if a couple has a prenuptial agreement. Often times people view prenuptial agreements as tools just for the wealthy. This, however, could not be further from the truth. A prenuptial agreement is key to a happy divorce. The reason: not only does a prenuptial agreement allow the couple to make important estate planning decisions and asset division decisions ahead of time, it also allows them to do it when they are not bitter.Armed with adequate financial knowledge and a game plan for dissolution is the very best way to approach a divorce. While the idea may seem unromantic to some, it is actually just one more way to protect your loved ones. In addition to giving both parties a sense of certainty at a very uncertain time, it also allows the couple to avoid a lot of the bickering and resentment that can occur when tempers are short and emotions are high. Family law is complex, but it does not have to be drawn out and costly.
Source: Huffington Post, "Divorce Finances: How To Stress Less About Your Finances Post-Split," March 6, 2013
]]>While everyone filing for divorce must address certain divorce-related issues, age can serve as a predictor. For instance, while younger couples tend to face custody issues, older couples tend to face estate issues. That is, in the case of couples over 50, the children tend to be grown and moved out, so the focuse of the divorce will not revolve around the children, rather, it will revolve around more immediate needs, such as retirement.
]]> According to an author of the study, divorce can be economically devastating, especially for people who have stayed out of the labor force for years. In addition, older divorcees tend to have additional financial concerns, such as health care needs. While the news may seem dire, it is not all doom and gloom. In fact, with proper planning there are many ways to manage a divorce later in life.From alimony and spousal benefits to property division and QDROs, there are a number of options for older divorcees attempting to soften some of the financial impact of a divorce on their retirement. While there is really no way to avoid every additional costs associated with maintaining two separate households, with proper planning, and everyone can receive what they deserve.
Source: USA Today, "Boomer divorce: A costly retirement roadblock," Rodney Brooks, Feb. 26, 2013
]]>On the first of the year the American Taxpayer Relief Act went into effect. The new tax law was implemented to avoid a tax increase for the majority of citizens, but taxes still did rise on incomes over $400,000 for individuals and on incomes over $450,000 for couples. Because of the new tax rate, which increased from 35 percent to 39.6 percent, couples filing for divorce in 2013 may choose to structure their divorce agreements differently.
]]> The two areas that require special attention deal with changes to income incident to divorce and property division. One important consideration for couples involves spousal support or alimony. Unlike child support, which is neither deductible by the person paying it, nor taxable to the person receiving it, spousal maintenance is deductible. In situations where alimony pushes a person over the new tax threshold, it may best to consider an alternative arrangement.Whether you are dealing with spousal maintenance or asset division there are multiple ways to structure divorce settlement agreements in order to achieve the best tax consequences. A common way to avoid the tax consequences of spousal support is to choose a one-time lump sum payment in lieu of alimony. Lump sum payments during a divorce are neither taxable to the recipient nor deductible, which may be very beneficial for the couple.
Source: Forbes, "Divorcing Women: Will The New Tax Laws Impact Your Divorce Settlement?" Jeff Landers, February 20, 2013
]]>While the issue of father's rights certainly affects Ohio residents, the issue is national in scope. Throughout the country fathers are beginning to fight to enforce and secure their place in the lives of their children. Because of this, some states have begun introducing legislation that is intended to better ensure a father's rights during the custody stage of a divorce proceeding. This includes everything from visitation to physical custody of the child.
]]> One recent example involves two bills that were recently introduced in Nebraska. The first bill, which was modeled after a bill that was recently enacted in Minnesota, creates a legal presumption that both parents are entitled to a minimum of 45 percent parenting time. If the parents disagree, the parent challenging the presumption carries the burden of proof to show why the court should alter the parenting time in favor of one parent over the other.The second proposed bill, which attempts to carry out the same effect as the first, seeks to change the Nebraska Parenting Act to state that it is in the best interest of the child to have substantial parenting time with both their parents. This bill was modeled after a bill that went into effect last year in Arizona. For those fathers currently living in states that do not have such presumptions, getting the right information during a child custody dispute could be the key to ensure your parental rights are enforced.
Source: Seattle Pi, "Divorced dads ask lawmakers t pass custody bill," Alissa Skelton, Feb. 6, 2013
]]>For Ohio residents unfamiliar with the term "collaborative divorce," it is a process of dispute resolution used in lieu of the more common adversarial processes for which courts are known. Many couples prefer collaborative divorce because of its non-combative style, and its tendency to reduce post-divorce animosity and tension. The process, however, depends on the cooperation of both parties and their willingness to pursue an amicable divorce.
]]> The way collaborative divorce works is that both parties hire attorneys who are made aware that the couple is choosing the collaborative divorce method. The parties then enter into an agreement that they will not go to court to resolve their divorce. Then, after each spouse meets privately with their attorney to discuss what they want to get out of the divorce, the couple and their attorneys negotiate together all of the applicable divorce-related issues.In some collaborative divorces couples choose to utilize additional support, often referred to as the collaborative divorce team. This may include a financial specialist, a divorce coach or even a therapist. In any case, the goal is to allow the couple the freedom to construct their own agreement with the assistance of an experience family law attorney. The process not only reduces the emotional toll of divorce, but in many cases it can also save money and frustration.
Source: Washington Times, "Do you need a lawyer to get divorced? Yes, and don't stop there," Myra Fleischer, February 5, 2013
]]>Whenever a couple file for divorce, there are a number of issues that must be addressed. From property division to child custody, these issues can be complicated. However, one issue is somewhat more controversial than others: alimony. Alimony, also known as spousal maintenance or spousal support, is usually paid to the spouse with less or no income. A recent article mentioned several areas for Ohio couples to consider when a divorce involves paying spousal support.
Alimony is a financial payment that is made by one spouse, usually the higher-wage earner, to another spouse, the lesser or non-wage earner, in accordance with a divorce agreement. The purpose of alimony, or spousal maintenance, is to protect spouses from the sometimes-unfair economic effects of a divorce. This is particularly true when one spouse chooses to stay at home to care for the children while the other spouse pursues a career.
]]>Spousal maintenance can be either temporary, or "rehabilitative" -- or it can even be permanent. The purpose of temporary spousal maintenance is to provide a former spouse with the means necessary to support themselves post-divorce while they gain the skills or ability to reenter the workforce. In cases where the court orders permanent spousal maintenance, the spouse is typically unable to reenter the workforce. This is more common for older couples.
Alimony can have a significant financial consequence on both spouses. For instance, there are tax consequences for the spouse receiving the payment. It is important for anyone receiving spousal maintenance or alimony to discuss what these payments mean.
Source: US News and World Report, "Taking the 'Permanent' Out of Permanent Alimony," Geoff Williams, Jan. 23, 2013
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