Month: April 2018

Jump Street

So much for The Vow. Channing Tatum and his wife came out Fighting, announcing their divorce. The appreciation of their properties and investment makes their property division quite The Dilemma – even if they don’t become Public Enemies.

This is the End

The former couple, Channing Tatum and Jenna Dewan, both 37, announced their separation on Monday after almost nine years of marriage and after welcoming their daughter in 2013.

We have lovingly chosen to separate…love is a beautiful adventure that is taking us on different paths for now [who writes these? ed.].

According to People, it’s estimated that Tatum made $60 million in 2013 for movies like The Vow, 21 Jump Street, Magic Mike and G.I. Joe: Retaliation. He also launched his own vodka line during the marriage.

Property Division

I’ve written extensively about property divisions. Equitable distribution, as property division is called in Florida, requires courts to set aside each spouse’s non-marital assets and debts, and then distribute the marital assets and debts.

Marital assets and liabilities include, in part, assets acquired and liabilities incurred during the marriage, individually by either spouse or jointly by them.

Marital property then, could include Tatum’s vodka business and other valuable assets purchased during the marriage.

Step Up

Complicating matters is that Tatum was not as well-known when he married. After their marriage both of their careers grew, the stock market rebounded, and home values rocketed.

The Tatum divorce shows how stakes can rise during a marriage, and how improvements to marital – and even non-marital or premarital assets – can come into play.

Florida recently amended a law dealing with whether there is a marital portion of a nonmarital house with a mortgage paid down by marital money, and if so, how to divide the marital portion.

The issue of the appreciation of non-marital property paid with marital funds includes two components:

  1.  a portion of the enhanced value of the marital asset resulting from the contributions of the nonowner spouse and
  2.  a portion of the value of the passive appreciation of that asset that accrued during the marriage.

The new law amends our statute, and establishes a new statutory formula.

Haywire

The best way to avoid the process of an expensive property division case is to have a prenuptial agreement and a post-nuptial agreement to discuss these issues before the divorce.

Alternatively, the issues can be taken care of in a private mediation. As a last resort, they will have to fight the case in court, and have a judge decide the issues.

As a general rule, divorce litigation is something that should be avoided because things go haywire. Court battles are long, painful and expensive.

One of the other Side Effects, is that divorce also bleeds into every aspect of a person’s professional and personal life.

The People article is here.

 

New Property Division Law

Kaaa! That’s not a scream, it’s a Hawaiian name pronounced “Ka-ah-ah”. Florida divorce lawyers know Kaaa as a famous Florida Supreme Court case which changed equitable distribution here. Kaaa had its faults, but recently the Governor signed a bill to fix it.

Florida Property Divisions

I’ve written about property division before. Property division, or equitable distribution as it is called in Florida, is governed by statute and case law.

Generally, courts set apart to each spouse their non-marital assets and debts, and then distribute the marital assets and debts between the parties.

Marital assets and liabilities include, in part, assets acquired and liabilities incurred during the marriage, individually by either spouse or jointly by them.

Passive appreciation of a nonmarital asset, a house for example, encumbered with a mortgage paid down with marital funds, may be a marital asset the court must equitably distribute.

Can You Split Nonmarital Property?

Passive appreciation of a house without a mortgage, for example, is not subject to division in a divorce. But what about the passive appreciation of a house with a mortgage, where the principal balance of the mortgage has been paid with marital funds?

In 2010, the Florida Supreme Court held that “passive appreciation of a nonmarital asset … is properly considered a marital asset where marital funds or the efforts of either party contributed to the appreciation.”

The Kaaa court recognized that the marital portion of nonmarital house encumbered by a mortgage paid down with marital funds includes two components:

(1) a portion of the enhanced value of the marital asset resulting from the contributions of the nonowner spouse and

(2) a portion of the value of the passive appreciation of that asset that accrued during the marriage.

The Kaaa Problem

The Supreme Court created a formula for courts to use in determining the value of the passive appreciation of nonmarital real property for equitable distribution.

But the Kaaa formula was flawed because there is no relationship between the amount of marital funds used to pay down a mortgage during a marriage, and the passive appreciation of the property.

Also, the Kaaa case required a nonowner spouse to have made contributions to the property as a prerequisite to sharing in the passive appreciation of the property.

A lot of people argued that Kaaa conflicted with our equitable distribution statute, which said marital assets include the enhancement in value and appreciation of nonmarital assets resulting from the use of marital funds.

The Fix Bill

The Family Law Section of the Florida Bar helps create legislation, and also monitors proposals in the Florida Legislature. Members of the Section advise legislators and staff and even testify before the Legislature.

Governor Scott signed a bill to fix Kaaa. The bill amends our equitable distribution statute and establishes a statutory formula for courts to use.

The new statutory formula does not require the nonowner spouse to have made contributions to the property, as required under the Kaaa calculation.

The fix bill also bars the marital portion of nonmarital real property from exceeding the total net equity of the property on the valuation date in the divorce action, and even allows a party to argue that the formula shouldn’t apply.

The new law takes effect July 1, 2018.

The Kaaa fix bill is available here.

 

Danish Divorce

As one of the most wired countries in the world, Denmark offers hospital records, tax returns, and divorces online. But the skyrocketing divorce rate has caused the country to limit the ease of divorce. What are drawbacks to a quick, online divorce?

Quickie Divorces

The New York Times reports that a Danish divorce can be obtained in less than a week with only a short online form and a $60 fee. But the government has decided that breaking up should be a little a harder to do.

Under new rules set to go into effect next year, couples who have children and who decide to dissolve their marriage will be required to observe a three-month “reflection period” before the divorce takes effect, during which they will be offered free counseling.

The idea is to provide protection for children, who will also receive counseling during the waiting period. (The quick divorce is still available for childless couples and in cases of abuse.)

Florida Divorce

I’ve written frequently about divorce issues, especially the differences between international and Florida divorces.  Florida, like Denmark, has its own restrictions on divorcing, even if not everything is available online.

For instance, you have to be a resident of the state of Florida for at least six months before filing. Additionally, you must file a Petition for Dissolution of Marriage with the circuit court and the Respondent files an Answer and/or counter petition.

A final judgment ending the marriage may not be entered until at least 20 days after the date the Petition was filed, unless the court finds that an injustice would result from this delay.

This is Your Danish Divorce

The current Danish laws give divorcing parents only a few days to decide on arrangements for their children online, increasing the potential for conflict. Denmark wants to give parents space and not make decisions right away.

The changes are a rare step back in a country that has moved aggressively to move official interactions online.

More than 90% of Danes between 16 and 89 can use a government-issued digital ID to gain access to personal records or to communicate with the authorities.

The system is often efficient: 1.3 million people logged on to see their annual tax return within 24 hours of release this month. But the push to digitalize Denmark may have gone too far and doesn’t work in divorce and death.

Digital death certificates, required in Denmark since 2007, lead to the immediate cancellation of passports, driver’s licenses and digital IDs to prevent fraud.

Kirsten Margrethe Kristensen was mistakenly declared dead by a doctor this month. “Making mistakes is human,” she told DR, the national broadcaster. “It’s more that one, just by a click, is out of the system and gone.”

The quick divorce presents a similar problem, some officials said — particularly when children are involved.

Soren Sander, a psychologist who has studied the effects of divorce, said that children and adults alike suffer psychologically and physically from a breakup:

“There are indications that with intervention their well-being increases.”

That’s not to say that divorces in Denmark are leaving the internet behind: While some counseling during the three-month reflection period takes place face to face, a mandatory course on the typical challenges of a divorce is available online and through an app.

The New York Times article is here.