Year: 2018

Gray Divorce

Posted by Ron Kauffman on

It used to be unthinkable for couples to divorce after 50. Things have changed dramatically. These days more people over 50 are divorced than widowed. This age group now accounts for one-quarter of all divorces. This is a post about divorcing after age 50, otherwise known as the gray divorce.

Growing Apart: The New Trend

According to some reports, these so-called “gray divorces” have doubled since 1990 and, with half our married population being 50 or older, the rate is expected to grow, especially as more and more baby boomers become empty nesters.

Divorce is hard and complicated no matter what your age is. But divorce might be something to approach carefully if you’re over the age of 50. Here’s why.

Florida Gray Divorce

When couples choose to divorce in their 30s or 40s, they still have time to recover financially, because adults at that age have several years, if not decades, left in their careers.

But when divorce occurs when a couple is in their 50s or later, careers may either be coming to a close or are completed, and spouses are often living on fixed incomes provided through Social Security or retirement benefits.

I’ve written about this subject before. Here are some things to consider:

  • Valuing the Marital Estate – By the time a couple enters the golden years, they may have gold to divide, including businesses, retirement funds, and vacation homes. Valuing these assets can be difficult. The value of a business may not be apparent from balance sheets, and the sale or transfer of assets may have tax consequences. As a result, a financial advisor may be an important component in the divorce.
  • Medical Care – Health insurance is often tied to the employment of one spouse. With aging comes diminishing health, and declining cognitive ability. Courts may need to intervene if one party has dwindling capacity to handle their own affairs.
  • Long-Term Arrangements – Legal arrangements, such as wills and trusts, need to be reviewed to make sure they reflect post-divorce wishes. The same is true for long-term care, such as medical directives, living wills and trusts.
  • Retirement Plans – After 20 years of marriage, retirement plans can be substantial . . . and complex. Retirement plans vary in kind, and they all have different restrictions, tax consequences, distribution and vesting rules.
  • Lifestyle adjustment – Younger couples have time to re-accumulate wealth after divorce, but in Gray Divorces, the spouses have less time to re-establish themselves financially. One or both may be close to or in retirement, and face living on half of what they earmarked for retirement.

Why is it happening?

There are many explanations for the gray divorce phenomenon. Often, couples aren’t on the same timeline emotionally when it comes to divorcing, and that can make a gray divorce particularly painful.

People are surprised to be dealing with a spouse who wants out after many years of marriage. The “leavee” can’t imagine growing old alone. The “leaver”, may feel guilty for ending the marriage.

Two-thirds of gray divorces are initiated by women. Having put their needs aside to raise a family, and tired of a spouse who ignores their pleas for change, these women dread the years ahead in a “dead” marriage.

Once the kids are gone, these women choose to end the marriage, opting for a new, more rewarding life and relationships.

The Tweet on Gray Marriage is here.

 

Family Law is Moving!

Posted by Ron Kauffman on

We’re pleased to announce that, beginning Monday, May 7, 2018, one of Florida’s premier marital and family law firms, the Law Offices of Ronald H. Kauffman, P.A., will be starting the workday in our new offices at One Biscayne Tower.

One Biscayne Tower

That’s right, we’re moving around the corner, across the street from Bayfront Park and Biscayne Bay. The new office building is named One Biscayne Tower and the address is:

2 South Biscayne Boulevard

Suite 3400

Miami, FL 33131

One Biscayne Tower is an iconic skyscraper on Biscayne Boulevard across from Bayfront Park. It comprises “Class A” office space and has been a long-standing symbol of the City of Miami.

The building often appears on postcards of the Miami skyline and is a signature building of Miami. Our new offices provide sweeping views of beautiful Biscayne Bay, the park, and bustling downtown Miami.

One Biscayne Tower has won five Office Building of the Year (TOBY) Awards, including the 2007 Miami-Dade TOBY Award and the 2007 BOMA Southern Regional TOBY.

Ronald H. Kauffman, P.A

Specializing in all family law matters both domestically and abroad, our lawyers are experienced in sophisticated marital and family law cases and led by a lawyer who is board-certified in marital and family law by the Florida Bar Board of Legal Specialization and Education.

A “Super Lawyer”, accomplished writer and speaker, Executive Council of the Florida Bar’s Family Law Section, our attorneys and firm have been professionally admired for serving our clients with the utmost skill, discretion and confidentiality in divorces, alimony, child custody and relocation cases, as well as prenuptial and postnuptial agreements.

Our firm website is here.

 

Prenuptial Agreements: Can you bust a prenup?

Posted by Ron Kauffman on

Prenuptial and postnuptial agreements protect your wealth by setting out what property stays yours, what property does not, and ensuring that your assets stay in your family line. Prenups can even be used to limit your exposure to paying alimony. But can you get out of a prenuptial agreement?

What are Prenups?

A prenuptial agreement (or “prenup” for short) is a contract between people intending to marry. A prenup determines spousal rights when the marriage ends by death or divorce.

If you divorce without a prenup, your property rights are determined under state law, and a spouse may have a claim to alimony while the suit for divorce is pending and after entry of a judgment.

Without a prenup, if your spouse dies, you will have statutory rights under state law to a share of your deceased spouse’s estate, and may also have a right to lump sum death benefits, or a survivor annuity under a retirement plan.

That’s where prenups come in. Prospective spouses may limit or expand these rights by an agreement. Prenups are also used to protect the interests of children from a prior marriage, and to avoid a contested divorce. Prenups can be very worthwhile provided they’re done right.”

When Prenups are done wrong

It is important to realize that the courts will not likely enforce prenuptial agreements (prenups) in certain cases. Forbes magazine recently ran an interesting article listing some of the common problems with do-it-yourself, cheap, or downloaded prenups:

  • It is not a formal legal document. Only well-drafted agreements can override states that have community property laws or equitable distribution requirements.
  • It is a “shotgun” agreement. If there is any form of coercing a person to sign the agreement, it can turn out to be unenforceable.
  • One person failed to read the agreement. When there is proof that one or both of the spouses did not read the prenup, it might not be enforceable.
  • One party is hiding or just not sharing knowledge of all assets and liabilities. Full transparency between the prospective partners is mandatory.
  • It includes invalid provisions. These are terms that are illegal or against public policy. For example, the courts will not enforce prenups if they stray into areas such as waiving child support.
  • Each partner does not have separate legal counsel.Both parties should – and in some states, it is a requirement – have their own legal counsel so that their separate interests are promoted.
  • The agreement is unconscionable. If the prenup is so completely unfair that it puts one partner in a horrible financial situation and sets up things so the other partner is solidly financially positioned, the courts will very likely not enforce it. Unconscionable agreements are “extreme.”

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just resolving uncertainty in a marriage. Any couple who brings any personal or business assets to the union can benefit from one. They are also important to have in place before a couple starts investing in businesses, properties and other investments.

The most basic of prenups should list an inventory of premarital assets that would stay with the original owner in case of a divorce. Florida has both case law and a statute to help lawyers, judges and the parties determine if a prenuptial agreement is enforceable.

For example, Florida courts must consider things such as fraud, duress, coercion, in addition to the unfairness of the agreement, and whether there was any financial disclosure.

According to the Forbes article:

It’s not all that uncommon for mistakes to be made when putting a prenup in place. . . high-quality legal work is based in expertise and precision, which is why we diligently do everything possible to make sure our clients’ prenups do not get ‘busted.’

The Forbes article is here.

 

Alimony and The Parent Trap

Posted by Ron Kauffman on

Actor Dennis Quaid and his former wife Kimberly Buffington-Quaid are Breaking Away and are officially divorced. However, reports show that the multi-millionaire actor may not be paying alimony to his former Enemy Mine. Why not?

The Big Easy

According to People, Buffington-Quaid, who filed for divorce in 2016, will receive $2 million in a lump sum payment, another million for property settlements, and $13,750 a month in child support.

According to further reports, her child support payment could increase if Quaid pulls in more than $1.3 million in a year. However, there are no reports that he is paying alimony, other than the cryptic reference to a “lump sum payment”.

The Quaids case may be one in which alimony is not needed.

Florida Alimony

I’ve written about alimony and alimony reform in Florida often. In every dissolution of marriage case, the court can grant alimony to either party – husband or wife.

There are several types of alimony in Florida: bridge-the-gap, rehabilitative, durational, or permanent alimony. The court can also award a combination of alimony types.

Alimony awards are normally paid in periodic payments, but sometimes the payments of alimony can be in a lump sum or both lump sum and periodic payments.

In determining whether to award alimony or not, the court has to first make a determination as to whether a party, like Buffington-Quaid, has an actual need for alimony, and whether the other party has the ability to pay alimony.

Once a court determines there is a need and ability to pay alimony, it has to decide the proper type and amount of alimony. In doing so, the court considers several factors, some of which can include:

  • The standard of living established during the marriage.
  • The duration of the marriage.
  • The age and the physical and emotional condition of each party.
  • The financial resources of each party, including the nonmarital and the marital assets and liabilities distributed to each.
  • The earning capacities, educational levels, vocational skills, and employability of the parties and, when applicable, the time necessary for either party to acquire sufficient education or training to enable such party to find appropriate employment.

In the Quaid case, Buffington-Quaid seems to have been awarded a very handsome property settlement, in addition to over $13,000 per month in child support payments.

The Right Stuff

While the Quaids are sharing joint physical custody of their children, Buffington-Quaid was awarded 75% of their time.

From Quaid’s Vantage Point, he made out ok, and is reportedly keeping most of the cars — a 2007 Land Rover, 2012 Mercedes and 2013 Honda.

His ex-wife will also have Something to Talk About, she will keep her 2014 Mercedes. Additionally, the actor will keep their home in Austin, Texas, and they’ll split the sale price of their family home.

The People article is here.

 

Property Division is Not Half Bad

Posted by Ron Kauffman on

They say a guy knows he’s in love when he loses interest in his car. A Kansas man is showing the reverse is also true. Alternatively, that would explain why the Kansas man still clings to his half-of-a-car long after his love ended. At the very least,his half-a-car is physical proof that a property division means equal halves.

The Better Half

According to the Kansas City Star, the late-Edgerton Mayor, Ray Braun, used to own the gas station where the front half of his 1987 Chevrolet Citation is parked, a testament to a successful property division.

On the side of the car is a sign which reads:

“Divorced. She got ½.”

The former mayor is the culprit who put his half of the equitable distribution – the half-car – in front of the gas station.

Some view his half a car as a landmark. If you go to Kansas City, or anywhere around, and ask about this town, they have no clue where it’s at. But if you ask them, ‘You remember that little half-car that’s off 56?’ ‘Yeah!’ ‘Well, that’s that little town.

But at a special morning meeting, the three council members in attendance decided unanimously for the city attorney to draft a resolution to finally be rid of the half car.

Florida Property Division

I’ve written about property division in Florida many times 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 nonmarital assets and debts, and then distribute the marital assets and debts between the parties. In dividing the marital assets and debts though, the court must begin with the premise that the distribution should be equal.

However, if there is a justification for an unequal distribution, the court can give less than equal.

When a court orders an unequal distribution, it must base the decision on certain factors, including some of the following:

  • The contribution to the marriage by each spouse.
  • The economic circumstances of the parties.
  • The duration of the marriage.
  • Any interruption of personal careers or educational opportunities.
  • The contribution to the personal career or educational opportunity of the other spouse.
  • The desirability of retaining any asset.
  • The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within 2 years prior to the filing of the petition.
  • Any other factors necessary to do equity and justice between the parties.

The courts don’t even have to wait for the end of the case to distribute property. Florida law allows courts, if they find good cause that there should be an interim partial distribution during a divorce action, to equitably distribute property sooner.

You Don’t Know the Half of It

Braun fitted his half-car with rear caster wheels and used to drive it in parades. But City Council President Clay Longanecker says the car has become “an eyesore” and the Edgerton codes department has ruled it has to be disposed of.

To some Edgerton residents however, the half-car has for years been seen as a welcoming post, a kind of unofficial eyesore monument. and some may fight to keep it.

The biggest joke of all? Braun was never divorced.

The Kansas City Star article is here.

 

Injunctions: Property Division on Ice

Posted by Ron Kauffman on

Rapper Vanilla Ice’s divorce is getting hot! His wife’s lawyers filed court papers trying to stop him from selling marital property by asking for a court injunction. You can’t have a property division if your spouse gets rid of the assets first. Here’s how to protect yourself.

Ice Ice Baby

According to TMZ, Vanilla Ice’s Wife wants to prevent a fire sale in the wake of their impending divorce, which has already gotten underway with him allegedly unloading their jet skis.

He’s a gentleman, he’s not hiding anything”

said a source in Ice’s entourage who asked to remain anonymous because there’s a gag order in the case.

Vanilla Ice’s estranged wife, Laura Van Winkle, filed a motion for an injunction to prevent her husband from selling marital property earlier this month to stop any more sales.

Freezing Assets

I’ve written about property division before, but a property division does you no good if the assets are long gone. How exactly do you avoid getting frozen out of your fair share of the property if your spouse is getting rid of it before a court can divide it? One way is an injunction.

Our divorce statute has a provision which specifically allows a court to freeze assets when either party is about to remove his or her property out of the state, or fraudulently convey or conceal it.

Florida courts can enter an injunction against the party or the property and make such orders as will secure alimony or support to the party who should receive it. A temporary injunction is an extraordinary remedy which are granted sparingly. The requirement to even be entitled to a temporary injunction, are tough.

In conclusion, Mrs. Ice must show that she will suffer irreparable harm unless the status quo is maintained; she has no adequate remedy at law; she has a clear legal right to the relief requested; and, the temporary injunction will serve the public interest.

There are plenty of examples of injunctions being used to prevent the waste of property. For example, they can be used to prevent both the sale of a home and prohibit you from going into further debt through a mortgage or line of credit.

Jet Skis on Ice

According to the article, Mrs. Ice claims Vanilla is in possession of nearly all of the couple’s marital assets, and she can’t stop him from doing what he wants with their property without a court injunction.

Mrs. Ice filed her original divorce petition in 2016. She asked to be allowed to stay in the family house, child support for the ice, ice baby, alimony, and attorney’s fees.

The TMZ article is here.

 

Celebrity Prenuptial Agreements

Posted by Ron Kauffman on

Prince Harry said he knew Meghan Markle was the one the first time they met. Now he’s showing his confidence in their union by rejecting a prenuptial agreement, reports the Daily Mail. What are prenuptial agreements and why does Meghan Markle want one?

The Royal Prenup

According to the article:

“There was never any question in Harry’s mind that he would sign a prenup,” one of his friends said. “He’s determined that his marriage will be a lasting one, so there’s no need for him to sign anything.”

Okay, but real talk: For one, prenups aren’t legally enforceable in the UK, although they are taken under consideration in divorce cases.

And, Harry isn’t the only royal who has shunned prenuptial agreements. Prince William and Kate Middleton reportedly didn’t sign one before their wedding, and neither did their mother, Princess Diana.

Florida Prenups

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just uncertainty in a marriage. Any couple who brings any personal or business assets to the union can benefit from one.

The most basic of these prenups lists an inventory of premarital assets that would stay with the original owner in case of a divorce.

The agreement can also include monetary support during and after a marriage, child support, and how future income or additional assets like inheritance will be shared (or not shared) if the couple splits.

Many think prenuptial agreements are for the wealthy or famous, like Prince Harry. But, you don’t always enter a marriage with riches, or guarantees that the bliss will last. It might not be a bad idea to have a plan in place – in case of intrigue at the palace.

Prenuptial agreements, typically resolve things like alimony, ownership of businesses, title of properties, in addition to the lifestyle clauses of celebrities.

There are many other, more mundane, concerns that can be addressed in the prenup:

  • Caring for a parent
  • Going back to school;
  • Shopping habits
  • Credit card debt;
  • Tax liabilities;
  • Alimony and child support from previous relationships; and
  • Death or disability.

Celebrity Prenups

Many celebrities have prenuptial agreements which can have unique clauses too. For example:

Jay-Z and Beyoncé

If this couple ever find themselves not-so “crazy in love,” the couple reportedly signed a prenuptial agreement that gives Beyoncé $5 million for each child they have together, and that Beyoncé would earn $10 million if the marriage ended before two years, and $1 million each year that they remained married, up to 15 years.

Michael Douglas and Catherine Zeta-Jones

The couple has been married since 2000, but if they divorce, Catherine would reportedly receive $2.8 million for each year of marriage, according to New York Daily News. (So, if they split today, that would add up to over $50 million.) And if Michael cheated, she would also get a $5 million bonus.

Mark Zuckerberg and Priscilla Chan

There’s no word on if the couple signed an official prenuptial agreement, but the book Once You’re Lucky, Twice You’re Good reportedly revealed that Priscilla had Mark sign a relationship agreement when she moved in with him after graduating from Harvard.

Their purported agreement required the couple to have a date night once a week and spend 100 minutes of alone time together weekly outside of the office or their home.

The Women’s Health Magazine article is here.

 

Ocean’s 492 Million: Divorce Fraud

Posted by Ron Kauffman on

A London court ordered the seizure of a $492 million yacht in Dubai, to enforce one of the largest divorce property divisions in history. The reason for the large payout? The family law judge found that the husband tried to hide his assets.

© A.Savin, Wikimedia Commons

Cruisin’ for a Bruisin’

The British court ruled that Farkhad Akhmedov should transfer ownership of the 380-foot boat MV Luna, currently impounded in a dry dock in Dubai, to his wife, Tatiana Akhmedova. The judge granted the order to uphold his earlier $646 million judgment.

Judge Charles Haddon-Cave said that Akhmedov tried to hide his ownership of the Luna behind a group of companies and moved the ship to Dubai on the belief that it was “well beyond the reach of an English court judgment.”

Fraud and Unequal Distribution

I’ve written about property division in Florida many times 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 nonmarital assets and debts, and then distribute the marital assets and debts between the parties.

In dividing the marital assets and debts though, the court must begin with the premise that the distribution should be equal. However, if there is a justification for an unequal distribution, as in the Akhmedov divorce, the court has the authority.

However, the court must base an unequal distribution on certain factors, including: the contribution to the marriage by each spouse; the economic circumstances of the parties, the duration of the marriage, or any interrupting of personal careers or education.

It has been a long-standing rule in Florida that an unequal distribution of marital assets may be justified to compensate for one spouse’s “intentional dissipation, waste, depletion or destruction of marital assets after filing of the petition….” For example, hiding your $492m yacht in the Middle East.

High Seas Adventure

In the final days of the divorce, the billionaire changed his ownership of the yacht to another of his companies. The transactions form part of the billionaire’s “continuing campaign to defeat Akhmedova by concealing his assets in a web of offshore companies.

The Luna, which boasts a 20-meter outdoor swimming pool and eight smaller boats, also has a mini-submarine.

Akhmedov said he had supported his wife after their marriage was dissolved in Russia. He blamed cynical lawyers for later filing for divorce in London, and U.K. politics for the court’s decision.

The couple met in 1989, marrying four years later and moved to London where the wife has lived with the children ever since. The marriage ended in late 2014.

Akhmedov, who refused to take part in the U.K. trial and moved back to Russia, has allegedly moved his substantial modern art collection, valued at 90.5 million pounds, to Lichtenstein, his wife said in the court documents in January.

The judge said that they needed to move quickly to enforce the order over the boat. Akhmedov “has over the past 18 months repeatedly demonstrated a willingness to take rapid and multifarious steps to evade enforcement at every turn.”

The Bloomberg article is here.

 

Fast Break Alimony

Posted by Ron Kauffman on

According to various reports, former NBA lottery pick, Shelden Williams, may get a massive, lump sum, $400,000 alimony check from his WNBA star wife, Candace Parker. This post is about lump sum alimony.

Slam Dunk

That is the reported marital settlement agreement between Williams, and his wife, WNBA Los Angeles Sparks star, Candace Parker. Parker, one of the biggest stars in WNBA history, married Williams two years after he was selected 5th overall in the 2006 NBA Draft.

Despite the fact that her husband reportedly made more than $12m during his 6-year NBA career, Parker has apparently done better, and agreed to shell out the $400,000 alimony payment. In exchange, she won’t have to pay ongoing spousal support.

Florida Lump Sum Alimony

Lump sum alimony is not a form of alimony, but really a method of payment of alimony or equitable distribution.

I’ve written about various types of alimony before. Any form of alimony, durational, bridge the gap, etc., may be paid as lump sum alimony. Lump sum alimony can also be paid in installments.

Lump sum alimony is available where special circumstances exist to pay other forms of alimony in a lump sum. It may be comprised of real property too. A lump sum payment establishes a fixed monetary obligation which vests immediately, is non-modifiable, and does not terminate upon death or remarriage.

So, if the need for alimony exists, there must be some special circumstances to explain why non-modifiable award is appropriate.

Special circumstances may include a payor who has a history of non-payments. It may also be appropriate if the parties are of advanced age and close to retirement.

Full Court Press

Drafted No. 1 overall by the Sparks in 2008, Parker led the franchise to a championship during the 2016 season and was named MVP of the WNBA Finals. She has also played overseas for professional teams in Europe and China.

Williams was the fifth overall pick in the 2006 NBA draft by the Atlanta Hawks. The former Duke star played six seasons in the NBA before playing in France and China until 2015.

Parker and Williams married in 2008. They also have an 8-year-old daughter. According to reports, the couple agreed to joint legal and physical custody over their daughter. Child support is also interesting. According to reports, neither party will pay child support to the other. Instead, they both agreed to equally fund her education and split any major costs associated with her care.

The Bleacher Report article is here.

 

Avoid the American Hustle

Posted by Ron Kauffman on

As if divorce wasn’t bad enough, the FBI warns the most common targets of dating scams are divorced women over 40. Women are courted online, and after weeks of intimacy, money is missing. This post contains a few post-divorce tips to protect yourself

Dirty Rotten Scoundrels

According to an Atlantic magazine article, scams are abundant, and Derek Alldred seems to have scammed at least a dozen women out of about $1 million since 2010.

He used different names and occupations, but the identities he took on always had an element of financial prestige or manly valor: decorated veteran, surgeon, air marshal, investment banker.

Con artists have long known that a uniform bolsters an illusion, and Derek was fond of dressing up in scrubs and military fatigues. He tended to look for women in their 40s or 50s, preferably divorced, preferably with a couple of kids and a dog or two.

The age of the internet, with its infinitude of strangers and swiftly evolving social mores, has also been good for con men. The FBI’s Internet Crime Complaint Center, which tracks internet-facilitated criminal activity, received nearly 300,000 complaints in 2016.

Of those scams, more than 14,500 were for relationship fraud, a number that has more than doubled since 2011.

Divorce Tips

I’ve written about practical tips after your divorce before. Consider that once the lawyers, are gone, who is there to guide you on the many questions? There are some immediate steps to take to ensure your hard-fought interests are protected – and your financial documents reflect your new marital status.

Once your divorce is final – meaning a final judgment is entered – you should review and revise, if necessary, the following legal and estate planning documents:

  • Trusts
  • Powers of Attorney (property, healthcare, HIPAA, etc.)
  • Will
  • Life insurance policies
  • Retirement accounts

What can happen if you don’t?

One example is common. If your ex-spouse remains the beneficiary of your life insurance policy and you pass away, the proceeds will go to your ex-spouse instead your children.

The opposite can also be true. In Florida, the plain language of the documents controls. To the extent your or your former spouse claimed a right to remain as the beneficiary under a life insurance policy – as a condition of the dissolution of marriage – your rights can be waived.

The Sting

The FBI warns that in many scams, women are courted online by men who claim to be deployed in Afghanistan or tending an offshore oil rig in Qatar. After weeks or months of intimate emails, texts, and phone calls, the putative boyfriend will urgently need money to replace a broken laptop or buy a plane ticket home.

According to the Justice Department, only 15% of fraud victims report the crimes to law enforcement, largely due to shame, guilt, embarrassment, and disbelief:

You feel really crappy about yourself,” Missi told me, then slipped into a tone that sounded like the mean voice that lives inside her head: “I’m a stupid woman; I’m a dumb, dumb, dumbass.

One excellent way to dispel yourself of any con-man fantasies, however, is to spend some time with the people they’ve hurt. Their victims are negotiating ruined credit scores and calls from collection agencies.

Several were so flattened by the experience, they’ve had old medical problems flare up or have struggled to go back to work.

The Atlantic magazine article is here.