One particular case in Texas brings up an issue that might not have been brought to public attention only a few years ago. According to a lesbian couple there, they are being unfairly discriminated against because they are unable to marry.
]]> The dispute is over the so-called morality clause that is present in some divorce cases where the parties have children. The clause states that while the children of one of the parents are under that parent's care, the parent may not have a romantic partner sleep over at the family's home.In theory, when the romantic partners are of opposite sexes, they could resolve the issue by getting married. However, in this case, the couple consists of two women; under Texas law, and under the laws of many other states, they are not legally allowed to be married.
This is just one more reason why it is important to have experienced legal advice when going through a divorce. There are many issues that a divorce attorney might have experience with that an average person might not think of.
Source: The Dallas Morning News, "Lesbian couple in Allen says morality clause in divorce equals discrimination," Valerie Wigglesworth, May 20, 2013
]]>In some divorces, one person will continue living in the home but the title -- and the mortgage -- won't change. Unless a home is refinanced, both names generally have to stay on and be responsible for payments.
]]> This creates an obvious problem: should the spouse in charge of making payments slip up, it can have a negative effect on the credit rating of the other spouse. This seems unfair, because the couple is no longer together and only one of the two people is causing the problems.If one name is to be taken off the mortgage, it has to be refinanced. However, unless one of the two people has a good enough credit score to do it, the new interest rate and payment might be untenable.
It is important to understand how credit scores are calculated. Just over one-third, or 35 percent, is tied to payment history. This is something that only time can take care of because it is a backward-looking component to the score.
However, 30 percent of a credit score is based on debt utilization. Paying down large credit card balances can go a long way toward improving a credit score and your debt-to-income ratio.
Source: The Huffington Post, "Should You Pay Off Your Ex's Credit Cards?" Adam Levin, May 16, 2013
]]>Four years and millions of dollars later, Rutherford's child custody struggles have resulted in a ruling by a family law judge that resulted in custody of the children being awarded to her husband, a German who lives in France. It was reported that the man's visa was revoked for unknown reasons, resulting in his deportation.
]]> At least one media outlet has called the judge's decision one of the worst child custody decisions in history. Rutherford is able to see her children periodically for visitation; however, she does not know when they will ever be permitted to return to the United States.Rutherford says she has depleted her savings as well as all the money she made on "Gossip Girl." It has all gone toward fighting for her children. As a result, she is unable to afford a home of her own. A friend has offered to provide a place for her to stay for now.
While most judges aim to award custody based on the best interests of the child, the process of a custody dispute is still a difficult time for everyone, especially the children. A hearing is planned for September in New York, where Rutherford hopes a judge will return her children to her.
Source: Business Insider, "'Gossip Girl' Star Kelly Rutherford On The Brink Of Bankruptcy After Bitter Custody Fight," Aly Weisman, April 30, 2013
]]>It might be tempting to think that people with gigantic incomes and assets don't have to endure the same kind of jockeying for position and squabbles like the rest of us might -- but a recent case among some of the nation's wealthiest people shows that this isn't necessarily so.
]]> A woman who is the daughter of the former chairman of the international financial company HSBC has been accused of shielding her assets via a lawsuit against her boyfriend, who is a part-owner of the Tampa Bay Rays baseball team. The father of the woman's child, a Wall Street financier, alleges that the two hid her assets in order to increase her monthly child support payments -- which total more than $50,000.The woman's family has homes in several countries on several continents and has climbed the highest mountain on each of the seven continents. However, according to the lawsuit by the father of her daughter, the woman's current boyfriend gave her large sums of money and homes but said they were actually loans rather than gifts -- exempting himself from expensive gift taxes in the process.
While the facts and figures in this case are rather astonishing, the lessons apply to people of all income levels. When child support is being requested or paid in an amount that seems inappropriate, an attorney can help to take action to remedy the situation.
Source: The New York Times, "Millionaires Clash Over Socialite's Child Support Claims," Peter Lattman, April 26, 2013
]]>Jamie McCourt settled in her divorce case for just over $131 million because, she says, his assets -- including the Dodgers -- were only worth about $300 million. Jamie McCourt now wants a new award of about $900 million and is suing her ex-husband for the difference -- a cool $770 million.
]]> According to Jamie McCourt, her then-husband had an idea that the sale of the team could fetch considerably more than what he was telling her, but kept that information from her. Apparently, Frank McCourt listed the value of the Dodgers at $294 million on a court form filed in the summer of 2011. However, that amount did not take into account the potential for new Dodgers ownership to launch a regional sports network, which increased the ultimate sale price of the franchise considerably.Frank McCourt's legal team says that it wouldn't have been possible to include that value at the time of the court filing because the network didn't exist then. Attorneys also contend that Jamie McCourt was given research that the network's value could be in the billions of dollars.
Source: Los Angeles Times, "Frank McCourt attorney: Judge should have no patience with Jamie," Bill Shaikin, April 24, 2013
For people who were fortunate enough to come away with a large divorce settlement, decisions will have to be made about what to do with the windfall. For some people, they may be presented with a choice between putting money away for retirement and immediately paying off a mortgage.
]]> Of course, everyone's situation is different, but it likely will come down to timing. People approaching retirement age may find it advantageous to have a paid-off mortgage by the time they are retired, for obvious reasons: People who are retired and on a fixed income may not be able to comfortably pay toward a mortgage that was geared toward payment amounts when they were working.However, paying off the mortgage is not automatically the best choice. Some of this calculation comes down to interest rates. If investments are earning a higher rate of return than what the mortgage interest rate is, it may not make sense to pay the mortgage off.
Additionally, people with large amounts of credit card debt may want to examine what is the most profitable way to spend their money. For example, someone paying 6 percent interest on a mortgage but 18 percent interest on credit card debt may want to take care of that obligation first.
Source: Fox Business, "Best Use of Divorce Cash Before Retirement?" Don Taylor, April 8, 2013
]]>However, there are some concepts that are common to many divorces. It can be easy to fall prey to many ideas that might seem like conventional thinking but might actually be rather counterproductive.
]]> Some of these instincts might include:Source: The Huffington Post, "5 common divorce mistakes," Allison Pescosolido, April 8, 2013
One of the other versions of the show, from Atlanta, has made household names out of its stars, including Porsha Stewart, who is married to former NFL quarterback Kordell "Slash" Stewart. It was reported recently that Kordell Stewart filed for divorce recently, which could throw a wrench into the plotting of the show -- let alone the lives of the two people involved.
]]> According to the filing, Kordell Stewart requested that he not be required to pay any amount of spousal support because Porsha Stewart is capable of earning a living for herself. It remains to be seen if this will hold up; while Kordell Stewart made millions of dollars during his pro football career, that career had ended by the time he and Porsha were married. Their wedding took place in May 2011, meaning they have only been married for less than two years.Two items that will not be discussed in the divorce case are child custody and child support. While Kordell Stewart has a son from a prior relationship, he and Porsha Stewart have no kids of their own. Only time will tell if the upcoming divorce will figure as a plotline of the TV show -- which, unlike the marriage, will keep going.
Source: The Huffington Post, "Kordell Stewart Divorce? 'Real Housewives Of Atlanta' Star Porsha Stewart, NFL Player Reportedly Split," March 26, 2013
]]>However, in some cases, things just aren't going to work out in the end. In many cases, one spouse will realize this and file for divorce unexpectedly -- or what seems to be unexpectedly, at least to the other partner.
]]> Quite often, this then puts the second partner at a disadvantage. The partner who files first has a chance to get his or her affairs in order -- including figuring out a budget and setting up separate accounts if necessary.Another advantage to filing first is that generally speaking, the divorce will be decided where it is filed. If a couple has a residence in more than one state, the person who files for divorce can do so in the state that is most advantageous for them. This could include considerations such as child custody, spousal support and even division of property.
Additionally, and of crucial importance, the person who files first can already be a few steps ahead by working with an attorney in advance of the time the other spouse knows there is going to be a filing. This means one party can get a head start and be proactive about the future rather than reacting to a decision made by someone else.
Source: Forbes, "What Are The Financial And Legal Advantages Of Being First To File For Divorce?" Jeff Landers, March 26, 2013
]]>One judge has decided that someone who has failed to pay child support will have to wear a sign telling people this fact -- until he pays the $13,000 in back payments he owes to the mother of his child. The judge's ruling says that the man must wear the sign -- that lets anyone and everyone know that he is in contempt of court and owes child support -- outside the courthouse for three hours a day, three days a week.
]]> As many people have pointed out, though, there are some issues with this unusual type of sentence. While it may serve to embarrass the man, it doesn't help the mother of his child get any closer to receiving the delinquent payments. It also may hinder the man from finding work -- if he has to appear at the courthouse three days a week to wear the sign, he will have less time to earn money. And if he was looking for a job, the publicity generated from the case might make it hard for someone to hire him.The man's mother wonders if the punishment isn't cruel and unusual. She says he has cancer and that having him stand outside for so long might make his health even worse.
Source: Jackson Clarion-Ledger, "Child support sign: Punishment applauded, questioned," Dustin Barnes, March 21, 2013
]]>One man from Australia saw an opportunity for situations such as this. He moved to New York and started what is believed to be the first lending operation aimed at people who are going through a divorce. Essentially the concept is similar to any other organization handing out loans: the company fronts the consumer the money at a relatively high interest rate; when the divorce settlement is finalized, the company is paid back with interest.
]]> The loans are risky for the company -- which is why it charges up to 20 percent interest. People who fail to get the settlement they expect might not be able to pay back the loan in a timely manner, if at all. And many people might choose to get cash from family members or by selling off assets instead.While these are extreme circumstances, it is likely that many people will have questions or concerns when it comes to making sure they can cover all their expenses in a divorce. An experienced divorce attorney can help guide people in these situations and offer suggestions about how to allocate their resources in order to ensure their security.
Source: The Wall Street Journal, "Dialing Up Dollars For Divorce," Anne Kadet, Feb. 15, 2013
]]>As one divorce expert explains, emotion is stronger than thought. Even if we know we should have a measured response to something -- particularly when it could affect other people such as our children -- we sometimes are more or less overcome by feelings. It all comes down to brain activity and what areas of our minds are activated at various times.
]]> The emotional response someone might feel comes from the amygdalae, which generates a sort of primitive fight-or-flight instinct from deep within the brain. By contrast, the prefrontal cortex is the area that generally holds behavior management and logic. The problem is that when the amygdalae activate, the prefrontal cortex can get essentially shouted down. The divorce expert shared a few tips to keep things in check:In addition, consulting with an experienced divorce attorney -- who can be a stabilizing force when you feel overcome with feelings -- can make a big difference in your emotional health and ultimate success with a post-divorce life.
Source: The Huffington Post, "Your Brain On Divorce," Michelle Crosby, March 4, 2013
]]>In particular, this often means people who are over 50. In the United States between 1990 and 2010, divorces among people in this age group doubled. For an idea of how many people that involves, about 25 percent of all divorces in 2010 were among people age 50 and older.
]]> In many cases, these late-in-life splits -- sometimes called gray divorces -- disproportionately affect women. For mothers who have devoted their lives to raising their children and were thus out of the workforce for extended periods of time, a divorce can throw their lives into tumult.Even in marriages where both spouses work and can support themselves, what were once pooled retirement assets become split -- and without shared expenses, that money doesn't go as far. People may have to postpone their retirements longer than they had anticipated.
For some people who find themselves in this situation, difficult decisions will have to be made. While savings and investments can be rebuilt -- even for those starting fresh in their 50s -- some cutbacks may be necessary: cheaper vacations, smaller homes, even less money left to children and grandchildren.
In any case, experts recommend that people who are getting divorced at any age make sure their financial affairs are in order. Addressing these issues later in life is better than not addressing them until it's too late.
Source: USA Today, "Boomer divorce: A costly retirement roadblock," Rodney Brooks, Feb. 26, 2013
Dividing property and assets can be extremely difficult, especially if the couple has a difficult time remembering whether certain pieces of property or assets were acquired before or after they married.
]]> There are ways for couples to avoid some of these difficult scenarios, though. Prenuptial agreements can be very helpful for couples who end up divorcing. Instead of debating or arguing over how property or assets will be divided in the midst of a divorce, the couple and their attorneys can reference the prenuptial or postnuptial agreement that was made before conflict arose in the relationship.If couples agree on how they would divide property when they are in a solid place as a couple, they may be less harsh towards their partner than if the decisions take place during the divorce.
While prenuptial and postnuptial agreements can be very helpful when dividing property and assets, they cannot dictate any legal decisions relating to children. So, couples will still need to work through child custody arrangements and child support agreements during their divorce.
When couples are about to marry or divorce, family law attorneys can be very helpful. Creating a prenuptial or postnuptial agreement and settling a divorce are both important decisions. Working with an experienced attorney is critical to ensure these arrangements and settlements are prepared correctly.
Source: Fox Business, "Why you should consider a prenup," Andrea Murad, Feb. 4, 2013
]]>An upcoming study in a public health journal examines the role of drinking in a marriage and how the dynamics of how people drink can lead to divorce. While it's no secret that people who drink a lot may not be in healthy relationships, the study shows just how heavy alcohol use appears to be correlated with divorces.
]]> Researchers found that the highest risk for divorce in terms of alcohol use occurred when the wife drinks heavily and the husband drinks little. In fact, the study revealed that the divorce rates for couples in this situation were three times higher than for couples made up of people who each drink lightly.The incidence of divorce was also elevated when both parties were heavy drinkers, though not as much as when only either the husband or the wife drank a lot.
The reasons for this may be due to the fact that excessive alcohol use has been tied to violence in relationships. Some studies have also shown that alcohol can have a permanent effect on the brain, making it more difficult to recover from trauma -- emotional or physical. Researchers suggest that couples have a frank conversation about alcohol use if it appears that one member of the couple has a tendency toward alcohol abuse in order to prevent marital problems down the road.
Source: Fox News, "Heavy drinking raises risk of divorce," Stephanie Pappas, Feb. 6, 2013
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