Year: 2019

International Child Custody just got Bigger in Japan

Posted by Ron Kauffman on

Japan’s legislature, the National Diet, just enacted a law to force parents to comply with child custody orders. Seems simple enough, but this is a game changer in Japan, as enforcement in Japan has been, and can be in other countries, one of the biggest obstacles to resolving international child custody cases.

International Child Custody

Lost in Translation

I’ve written about international child custody cases in Japan before, specifically Japan’s compliance with abducted children under the Hague Convention.

Many have found that international child custody cases in Japan was a Battle Royale. People have long suspected that Japan is not really compliant with The Hague. Although Japan signed the Convention in 2013, a lot of people thought Japan did so only because of international pressure.

For example, people have pointed out that Japan has expanded Hague Convention exceptions making some of them mandatory and requiring Japanese courts to consider more things when defenses are asserted.

There were many Tokyo Stories about Japanese courts considering if it was “difficult for parents to care for a child” – a factor outside the scope of the Convention – which allows Japanese parents to complain about the challenges of being away from home.

Enforcement was always a huge problem in international child custody cases in Japan. Japan cannot enforce their orders. The law Japan passed to implement The Hague forbids the use of force and says children must be retrieved from the premises of the parent who has taken them.

According to research, about 3 million children in Japan have lost access to one parent after divorce in the past 20 years – about 150,000 a year.

For foreign fathers fighting international child custody cases, “this poses major problems, because they have a different mentality and they can’t comprehend losing custody or the right to visit their child. So, even when foreign parents win their case in a Japanese court, enforcement is patchy.

The State Department’s 2018 report described “limitations” in Japanese law including requirements that “direct enforcement take place in the home and presence of the taking parent, that the child willingly leave with the taking parent, and that the child face no risk of psychological harm.”

Spirited Away

Before the revision, the civil implementation law had no clear stipulation regarding international child custody cases. Court officials had to rely on a clause related to asset seizures to enforce court orders, a tactic that was criticized for treating children as property.

The legislation originally required a parent living with a child to be present when the child was handed over to the other parent. With the revision, however, the law allows custody transfers to take place in the presence of just one parent, rather than both.

The revision removes this requirement to prevent parents without custody rights from thwarting child handovers by pretending they are not at home. In consideration of the children’s feelings, the revision requires in principle that parents with custody rights be present during handovers.

The amended law urges courts and enforcement officials to make sure handovers do not adversely affect children’s mental or physical well-being. The new rules will take effect within one year of promulgation.

Last Samurai

The National Diet also enacted an amendment specifically to its legislation implementing the 1980 Hague Convention on the Civil Aspects of International Child Abduction.

The new amendment was drafted in response to criticism about Japan’s international child custody cases, mentioned above: that handovers of children from Japan could not be carried out, even though Japan singed the Hague Convention designed to prevent parental abductions of children.

Historically, Japan maintained a system of sole custody. In a large majority of cases, when a dispute reaches court, mothers are typically awarded custody after divorce. It is not unusual for children to stop seeing their fathers when their parents break up.

The civil implementation law was also amended to allow Japanese courts to obtain information on debtors’ finances and property. The change is aimed at helping authorities seize money and property from parents who fail to meet their court-ordered child support obligations and from people who do not compensate victims of crime.

Ran

The U.S. Department of State ran to remove Japan from its list of countries said to be showing a pattern of noncompliance with the Hague Convention as a result of the Diet’s new laws. In its annual report, the department noted Japan’s legislative efforts to better enforce the Hague Convention on the Civil Aspects of International Child Abduction, which Japan joined in 2014.

But the department “remains highly concerned about both the lack of effective mechanisms for the enforcement of Convention orders and the sizable number of pre-Convention abduction cases”.

U.S. Rep. Chris Smith, a New Jersey Republican, criticized the department’s removal of Japan from the list:

“It cannot be denied that the Japanese government has done little to help reunite those American children who have been separated from their left-behind parents.”

The Japan Times article is available here.

 

This is your Religious Prenup

Posted by Ron Kauffman on

A Detroit-area man must pay his former wife $50,000 under the terms of their Islamic prenup. Not only are prenuptial agreements on the rise among all engaged couples, they are also becoming very popular for religious couples. But is a religious prenup enforceable in the U.S.?

muslim prenup

Mehr Agreements

A Michigan man argued that a family court judge exceeded her authority by trying to resolve a religious issue in a divorce. In 2012, the husband approached Mohammed Ali and asked permission to marry Mr. Ali’s daughter.

They negotiated the terms of the arranged marriage. Mr. Ali proposed that defendant could marry his daughter if defendant paid her $51,000, a payment the parties referred to as Mehr, a traditional component of Islamic marriages.

He agreed to the payment proposed by Mr. Ali. The Wife considered the offer of marriage, on the financial terms negotiated by her father, for approximately one year and ultimately decided to accept the marriage proposal and the parties married in 2013.

Florida Prenups

I’ve written about prenuptial agreements and even about a religious prenup. 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.

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. This can be especially important in second marriages.

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.”

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.

Religious Prenup

Back in the Michigan case, it was uncontested that the Husband and Wife had only a verbal agreement for payment of $51,000, in consideration of marriage, until the day of their marriage ceremony.

During that ceremony, the parties signed a document that placed the contract to marry in writing. The one-page document signed by the parties was titled “Marriage Certificate” which is the basis for the religious prenup dispute.

The document stated that the Groom solemnly proposes to marry the bride and take her as my wife and agree to pay Mehr of $51,000 Later. Furthermore, the document stated that the Bride solemnly accepted the proposal.

During the course of the marriage, the Husband made several payments, totaling $3,900, toward the $51,000 mehr. In 2016, the Wife filed an action for separate maintenance and the Husband filed a counterclaim for divorce.

During the divorce trial, plaintiff asked the trial court to enforce the contract to marry and award her $47,100, the unpaid amount of the mehr.

The trial court concluded that the parties executed a valid, simple contract and entered a judgment in plaintiff’s favor in the amount of $47,100. In addition, the trial court granted the parties a judgment of divorce, denied the request for spousal support, and divided the parties’ marital assets.

Does Shariah Law Apply?

The Husband actually argued that the contract states on its face that it was made under Shariah law and that it was not made under any state law. But did the Mehr merely provide for a religious obligation or was it an enforceable contractual obligation under Michigan law?

The trial court clearly stated that it was not applying Shariah law, but was applying Michigan law to the parties’ contract:

“We are not interpreting or applying the contract between the parties under Shariah law, but are applying Michigan law to the review of the parties’ contract and the judgment of divorce entered by the trial court.”

In this case, neither the trial court nor this Court is required to resolve ecclesiastical questions. The trial court did not claim any power to grant the parties a divorce under Islamic law, but only the power to grant the parties a civil divorce under Michigan law.

The trial court did not decide the parties’ respective religious obligations under the tenets of their faith tradition, but only decided the parties’ respective obligations under long-established principles of Michigan contract law. Because this case does not require the resolution of any ecclesiastical questions, we conclude that defendant’s argument is without merit.

U.S. courts don’t enforce religious laws, be they Christian, Jewish or Muslim. U.S. courts enforce American law. As long as a religious agreement can be enforced without resolving theological questions it may be enforceable.

The U.S. News article is here.

 

Strike!: Interstate Custody and Pro Sports

Posted by Ron Kauffman on

Chicago Cubs Ben “Zorilla” Zobrist and his wife, singer Julianna Zobrist, have each filed for divorce in separate states on the same day, according to court records. How is a court supposed to figure out which state you should file your divorce in is the place where interstate custody and pro sports collide.

Interstate Custody

Batter Up!

Ben Zobrist filed for legal separation Monday in Williamson County, Tenn., where the couple — married since December 2005 — keep an offseason home in a Nashville suburb.

But, Julianna Zobrist filed in Cook County, Illinois on the same Monday. Julianna, a 34-year-old Christian pop singer, did not provide a reason for seeking a divorce in her petition. She also recently deleted her Twitter account.

Zobrist is a baseball second baseman and outfielder for the Chicago Cubs. He is one of seven players in MLB history to have won back-to back World Series championships on different teams. But being on many teams in different states means that choosing jurisdiction isn’t always easy for professional athletes.

The Zorilla used to play for the Tampa Bay Devil Rays/Rays, his first MLB club and where he spent most of his career. Then he briefly for the Oakland Athletics and Kansas City Royals.

Interstate Custody

I’ve written about interstate custody cases before. Generally, when two parents reside in Florida, Florida custody laws will apply. However, when one of the parents and the child move across state lines, you have an interstate custody problem.

But which law applies? Historically, family law is a matter of state rather than federal law. So, you would look to the state law of Florida, for example, in deciding an interstate case; not Federal law. As will be seen below, there are some conflicts with different state laws.

For various reasons, people travel more. As a result, family law has to take on an interstate, and international component. Accordingly, the conflicts between states can be amplified.

To help with confusion between different laws in different American states, the Uniform Law Commission is tasked with drafting laws on various subjects that attempt to bring uniformity across American state lines.

With respect to family law, different American states had adopted different approaches to issues related to interstate custody, visitation, and time-sharing. The results were that different states had conflicting resolutions to the same problems.

To seek harmony in this area, the Uniform Law Commission promulgated the Uniform Child Custody Jurisdiction and Enforcement Act (the UCCJEA), which Florida and almost all U.S. states passed into law.

The UCCJEA: Initial Actions

The most fundamental aspect of the UCCJEA is the approach to the jurisdiction needed to start a case. In part, the UCCJEA requires a court have some jurisdiction vis-a-vis the child.

That jurisdiction is based on where the child is, and the significant connections the child has with the forum state, let’s say Florida for this example.

The ultimate determining factor in a Florida case then, is what is the “home state” of the child.

There is a good reason for the ‘home state’ approach under the UCCJEA, which has been adopted by most state laws. That is that Florida – and the other states – all have a strong public policy interest in protecting children in their states.

Foul Ball!

According to the Tennessean, Ben Zobrist’s filing contends that his wife “has been guilty of inappropriate marital conduct which render further cohabitation impossible,” though the article didn’t elaborate.

“Husband is unsure if the marriage can be salvaged,” the filing says, according to the Tennessean.

When asked whether Julianna Zobrist would like to respond to her husband’s assertions, an assistant said, “Not at this time,” and added on behalf of her Chicago-based law firm, “We don’t have any information right now to release to the public.”

The Cubs granted Zobrist, 37, a leave of absence a week ago. Manager Joe Maddon, whose association with Zobrist dates to 2006 with the Rays, wasn’t sure when the valuable infielder-outfielder would return.

The Chicago Tribune article is here.

 

5 Essential Divorce Tips

Posted by Ron Kauffman on

USA Today reports the statistic that half of all marriages will end in divorce is not accurate. Divorce is declining, and a big reason is that marriage — with all of its advantages, from survivor benefits, healthier kids, and a lower risk of heart attack – is becoming more selective and the people getting married have more advantages. There are 5 essential tips if you are thinking about divorce.

divorce tips

Florida Divorce

I’ve written on many divorce issues. In Florida, a divorce is called a “dissolution of marriage.” Florida is one of the many states that have abolished fault as a ground for dissolution of marriage.

The only requirement to dissolve a marriage is for one of the parties to prove that the marriage is “irretrievably broken.” Either spouse can file for the dissolution of marriage.

You must prove that a marriage exists, one party has been a Florida resident for six months immediately preceding the filing of the petition, and the marriage is irretrievably broken.

The reason for the irretrievable breakdown, however, may be considered under certain limited circumstances in the determination of alimony, equitable distribution of marital assets and debts, and the development of the parenting plan.

The divorce process can be very emotional and traumatic for couples as well as their kids. Spouses often do not know their legal rights and obligations. Court clerks and judges can answer some basic questions but cannot give legal advice.

Only an attorney can provide legal advice. Statutory requirements and court rules must be strictly followed, or you may lose certain rights permanently.

It’s important to only take legal and financial advice from a lawyer and a trusted financial professional. They will be able to objectively help you through your particular situation with the most effective and beneficial advice and strategies.

Below are USA Today’s 5 essential tips for divorcing from their recent report:

Focus on finances

A lawyer can help you through the legalities of things like separation agreements and child visitation, but when it comes to finances and managing joint debts, it’s best to work with someone who specializes in finances.

If you don’t know where to start, ask your divorce lawyer or mediator to recommend a financial planner they trust or have worked with in the past.

Close joint credit accounts

Once you have filed for divorce, it’s important to cease accruing debt in both of your names. By continuing to rack up joint debt you could end up doing more damage to your credit scores and credit reports and subsequently complicating the divorce process.

Keep track of income and expenses

This is always a smart idea, but particularly during the stress and chaos of a divorce, it can be helpful to track and document financial details including child support and alimony payments, and shared medical and other expenses.

There are many personal finance apps available that can help you keep track of these details.

Create a budget

Going from a two-income household to a single income is a major transition. If you haven’t adhered to a budget in the past, a divorce is a compelling reason to start doing so immediately.

Make sure to outline everything, including both daily and monthly expenses (groceries, utilities, mortgage and car payments, scheduled maintenance on appliances and vehicles), and long-term expenses including retirement and tuition funds. This will help you avoid overspending as you adjust to your new financial norm.

Update your records

Once your divorce is final you will need to change your marital status on things including tax records, utility bills, health insurance, and property titles (homes and cars, etc.).

Non-essential Tip

How about a non-essential tip? The satirical website, The Onion, has its own take on divorce tips. Fans of Dennis Quaid in the movie “The Parent Trap” will appreciate this advice:

“Keep the lines of communication between you and your ex open in order to avoid your twin daughters reconnecting at sleepaway camp and hatching a plan to make you two fall in love all over again.”

The USA Today money article on divorce is here.

 

Child Custody and Punishment

Posted by Ron Kauffman on

Years of research has shown that spanking children is ineffective and may be harmful. The American Academy of Pediatrics just announced a new policy that parents not spank, hit or slap their children. With all the new research out there, people are discovery that there is a connection between child custody and punishment.

custody and punishment

New Corporal Punishment Policy

The new AAP policy against spanking reflects decades of critical new research on the effects of corporal punishment and because parents and educators put enormous trust in pediatricians for discipline advice.

When your pediatrician says not to spank, there is a very good chance that parents will listen. The other good news is that it is becoming unacceptable to use corporal punishment.

Some hospitals have a “no hit zone” policy that do not allow hitting of any kind, including parents spanking children. City leaders in Stoughton, Wisconsin made their whole cities into “no hit zones” – similar to no smoking zones.

Florida Custody and Punishment

I’ve written about child custody and punishment before. Florida does not use the term “custody” anymore, we have the parenting plan concept. For purposes of establishing a parenting plan, the best interest of the child is the primary consideration.

The best interests of the child are determined by evaluating all of the factors affecting the welfare and interests of the particular minor child and the circumstances of that family, including evidence of domestic violence, child abuse, child abandonment, or child neglect.

Historically, parents have always had a right to discipline their child in a ‘reasonable manner.’ So, our laws recognize that corporal discipline of a child by a parent for disciplinary purposes does not in itself constitute abuse when it does not result in harm to the child.

Harm, by the way, does not mean just bruises or welts for instance. Harm also means that the discipline is likely to result in physical injury, mental injury, or emotional injury. Even if you don’t physically harm a child, your actions could be criminal.

Florida’s parental privilege to use corporal discipline does not give absolute immunity either. Your run-of-the-mill spanking may be protected from charges of child abuse, but punching your child, pushing him onto the floor and kicking him is not.

Keep in mind that lawyers, guardians and judges are watching you, and you don’t want your punishment methods to become an issue in your custody case. While there are some limited privileges for discipline, there are major risks to your custody case, and most importantly, to your children.

Spanking Doesn’t Work

There are practical reasons to stop spanking besides custody. The main one is that it does not work. Numerous studies show that spanking does not make children better behaved in the long run, and in fact makes their behavior worse.

Spanking also teaches children that it is acceptable to use physical force to get what you want. It is thus no surprise that the more children are spanked, the more aggressive or to engage in delinquent behaviors like stealing they may be.

Millions of parents have raised well-adjusted children without spanking. Nothing is perfect, but telling children clearly what you expect from them and then praising them when they do it is the best approach to discipline.

The CNN article is here.

 

Divorce Tax Strategies

Posted by Ron Kauffman on

As the New York Times reports, divorce can be a business negotiation. Harsh as that may sound — especially if there are children being fought over — when a couple gets to a final hearing or mediation, numbers matter. There are some divorce tax strategies you should know about involving the home, alimony, and even the time allotted with children.

divorce tax strategies

New Tax Code

Divorce negotiations are never easy, but they became even more complicated this year after the sweeping overhaul of our tax code changed many of the calculations that factor into the logistics of divorce.

The most sweeping tax legislation since 1986 was signed into law in 2017 and are only now taking effect. The Tax Cuts and Jobs Act makes reductions to income tax rates, reduces the income tax rate for corporations and pass-through entities like Sub-S corps and LLCs.

The revised tax code has brought some surprises to couples going through a divorce too, and many lawyers are suggesting that clients bring accountants into the divorce team to lay out the tax implications of age-old strategies.

Nothing is Certain: Divorce and Taxes

I’ve written about divorce and taxes before. The new tax code changes will impact your divorce, but the alimony deduction change may not be the only tax change which you should take into consideration in your divorce.

Many people are criticizing the new tax law in general. For example the decision to end the alimony deduction receives a lot of criticism. Many are saying it made divorce worse.

People won’t be willing to pay as much in alimony, which will disproportionately hurt women who tend to earn less and are more likely to be on the receiving end of alimony payments.

On the other hand, the alimony deduction itself has also been criticized. For example, the government argues the deduction is a burden on the IRS because, if the alimony amounts ex-spouses report paying and receiving don’t match, it can force the agency to audit two people who may already be feuding.

So, what are some of the new divorce ax strategies to consider with the changes to the tax code?

Alimony

Everyone involved in divorce has been talking about what happened to alimony and taxes. Last year I was warning clients in the midst of their divorces to hurry things up because of the new tax law changes which made alimony not deductible anymore. But like love, divorce cannot be rushed.

For divorces completed this year, and in the future, the spouse paying alimony can no longer deduct the alimony from taxes while the spouse receiving the money no longer has to claim it as income.

The loss has made alimony payments more costly to the paying spouse because it eliminated a tax break that often served as a reason to bring about an agreement by taking off the sting of alimony payments.

Family Home

The new tax law’s restrictions on deducting state and local taxes (the so-called “SALT” deductions) surprised many who saw their tax bill go up. When it comes to divorce, that limitation on deducting your real estate taxes can turn your home into a hot potato.

Usually, the spouse with less money would often want to keep the marital home for the children, but doing so now has become more costly.

In high-property-tax states, some divorcing couples are looking to get rid of second homes as well. Some states further complicate the process by having a set of standards that were created when alimony and state and local taxes were deductible on federal tax returns. While the SALT deductions have changed, the standards have not.

Dependents

The tax value of children in a divorce was also changed in the tax overhaul. In financial terms, children have become a smaller deduction.

The exemption for each dependent — $4,050 per person — was eliminated, but the child tax credit was increased to $2,000.

That credit starts to phase out at $200,000 of income for an individual and disappears at $240,000. This can impact you because the credit can be given to the spouse with lower income in exchange for a break elsewhere in the negotiations.

The New York Times article is here.

 

Child Custody and Technology

Posted by Ron Kauffman on

As the Wall Street Journal reports, divorce brings out the worst in parents already bickering with each other. Even an argument about where a kid is dropped off can end up in court. New high-tech tools to ease this stress is where child custody and technology meet.

child custody and technology

There’s an App for that!

Created by divorced parents, divorce and family law attorneys and judges who saw a need to create a better way for families to communicate, these new apps link child custody and technology, and allow parents to document their compliance with the parenting plan.

Some have a check-in feature so parents can prove that they picked up or dropped off their children when and where they were supposed to. Others use artificial intelligence to flag messages written in an aggressive tone, reminding parents to keep their communications civil.

Most have calendars that help both parents keep track of their children’s activities and appointments—no matter whose day it is.

Florida Child Custody

I’ve written on Florida’s child custody issues before. In Florida, a Parenting Plan is required in all cases involving time-sharing with minor children, even when timesharing is not in dispute.

A “Parenting plan” is a document created by Florida statute to govern the relationship between parents relating to all of the decisions that need to be made about their children.

Parenting plans must contain a time-sharing schedule for the parents and kids. But there are more issues concerning minor children besides who they spend time with. For example, issue about a child’s education, health care, and physical, social, and emotional well-being are also included in the plan.

If the parties cannot agree to a Parenting Plan, a plan will be established by the court. If the plan is approved by the court, it must, at a minimum, describe in adequate detail the methods and technologies to communicate with the child.

Because of Florida’s express embrace of technology in parenting plans, it is no surprise these child custody and technology apps for parents are increasingly included. So, what are they?

Talking Parents

Candis Lewis, a mother of three who lives on a military said the Talking Parents app she was ordered to use eliminated the stress of arguing over whether a text message or email was received. All messages in the app are time-stamped and show exactly when the other parent read them.

Cozi

When they were married, Amy and Jason Cooper began using a family-management app called Cozi, which features a calendar and shopping lists. They stuck with it after they began divorce proceedings, finding it aided their ability to manage their two children.

coParenter

Yaquiline Zarate has been using the coParenter app to improve communication with the father of her son. The app allows them to seek real-time professional mediation when parenting conflicts arise.

The app, co-created by a retired judge, allows parents to text family-law professionals to mediate conflicts, rather than go to court. Earlier this year, when it was her ex-boyfriend’s night to take their son out for a visit, she urged him to let the boy stay home with her because he was sick and it was cold. The father didn’t agree, she said, so he tapped the “get help” button in the app. A mediator convinced him that it was in the boy’s best interest to stay put that night.

High Tech Problems & Solutions

Some parents like the fact that they can silo all communications with their ex. It’s better than having a message pop up in their regular inbox when they’re unprepared to deal with it.

When you get an email from the other side, you want to throw up. Whenever I get an email from my ex I assume the worst and this way I can leave it in the app and look at it when I’m ready. If it comes to my inbox, it can ruin my day.

The apps aren’t a panacea. Stephen admits he doesn’t always respond to the messages his ex sends him in the app. “The court order says we have to use OurFamilyWizard to communicate, but it doesn’t say we have to communicate.”

Whatever the drawbacks, there’s evidence that these apps connecting child custody and technology help the people who need it most: the children themselves.

The Wall Street Journal article is here.

 

Keep Divorce Costs Down

Posted by Ron Kauffman on

Divorce can be costly. The bulk of expenses are for professional fees like lawyers, accountants and psychologists. The New York Times recently reported on different ways to keep divorce costs down, and maybe minimize your heartache, too. Here are some of those tips, free of charge.

divorce costs

Learn the Alternatives to Court

Opting for arbitration, collaboration or mediation may help you avoid the costs of a lengthy court battle, but each of these paths has its pros and cons. A lawyer can point you in the right direction but be sure you agree on the path.

In a collaborative divorce, both parties commit to creating a shared agreement. They may share a financial expert (called a financial neutral) or a divorce coach in the collaborative process.

This approach comes with an effective incentive, but also a harsh penalty for failure. If you get stuck, the case restarts but with new representation and it can be a costly do-over.

Talk for free . . . to others

I’ve written about divorce tips and advice before. Speaking to a divorce lawyer is a good use of your time, but speaking to them about non-legal matters is not. Lawyers are not therapists and way more expensive.

A therapist’s hourly fee typically is between $120 and $250, yet many people use their lawyer, who may charge twice that amount, to complain and lay blame.

Therapy can help the legal process run more smoothly. But often the conflicts in divorce proceedings — money, children — are not the real issues. Anger, resentment, or even fantasies of revenge, often come into play.

Disclose

As the New York Times article reports:

If there’s even a tiny question of whether you will ‘get away’ with hiding something, think again. There are very high penalties for hiding assets, and if you don’t disclose up front, you’re buying problems down the road.

The law is the law, and it’s not always fair. If you want to complain about spousal support or child support guidelines, take it up with the legislature.

Don’t Rush

In cases where there have been cheating or deceit and emotions are high, find a way to slow the process.

By slowing the process and letting time do its job of healing the wounds by, for example, pacing discovery or using the court’s calendar wisely. Resolving smaller issues as they arise can also help.

Personal property can be a money drain. Hold your power for the valuable and irreplaceable. Judges hate personal property issues and will likely assign most low-monetary value items randomly if there is disagreement.

Assemble a Team

Life after divorce is going to be different and knowing what that looks like often requires additional people and resources. Financial planners, divorce coaches and other professionals can help fill out your team of professionals.

Avoid Court

To avoid costly subpoenas and depositions, clients should provide complete records of all financial dealings, including tax returns, real estate documents and even handshake deals like consulting gigs.

Since you never know what is going to happen and no one is completely satisfied with the results that come down in a courtroom it can be crazy to put your life in the hands of someone who only has a snapshot of your story.

Get a Prenuptial Agreement

Another helpful tip is the use of prenuptial agreements and post-nuptial agreements.

A sound prenuptial agreement may be the best cost-saving measure in divorcing, said Barry Wayne, a partner in Bluestein and Wayne of Coral Gables, Fla. Often a prenuptial is prepared as the wedding planning is ongoing, and many times at the behest of wealthy relatives.

Consulting with an estate planning lawyer can help draft a prenuptial and also work to protect and assure assets for surviving spouses in the event of death.

The New York Times article on how to keep divorce costs down is here.

 

This is your Medicaid Divorce

Posted by Ron Kauffman on

Sometimes more income isn’t good news. People suffering from major illness worry they could lose their Medicaid eligibility because of changes to Medicaid rules. More and more people are discussing the “Medicaid divorce” as a planning tool, but is it something to consider?

Medicaid Divorce

To Your Health!

Medicaid provides health coverage to millions of Americans, including eligible low-income adults, children, pregnant women, elderly adults and people with disabilities. Medicaid is administered by states, according to federal requirements. The program is funded jointly by states and the federal government.

According to online media company Ozy, Susan was diagnosed with rheumatoid arthritis at age 4, and has lived with chronic pain. She didn’t have private insurance at the time of her diagnosis, so Medicaid was critical to manage her disability.

Susan’s husband’s seasonal income fluctuated, leaving Susan hovering near the Medicaid eligibility cap. She had briefly lost coverage during their marriage because her eligibility was based on household income.

Since Susan’s husband’s pay increase Susan worried she could lose Medicaid eligibility again, just when her medical bills were about to skyrocket. Divorce, they decided, would eliminate the month-to-month possibility of losing coverage — and the fear that came with it.

Florida Divorce

I’ve written about divorce planning before. For example, there is a marriage penalty which people have planned for to avoid the situation where a married couple pays higher income taxes than they would pay if they were un-married and filed individual tax returns.

Medicaid divorces are similar but a rarely talked about type of divorce planning. Some people are forced to think about divorcing when the medical costs for their spouse can lead a couple to deplete their assets, leaving the healthy spouse impoverished.

Medicaid is a federal needs-based assistance program and your eligibility is determined by the total income and assets of you and your spouse which are pooled and totaled and may require that assets are spent down to qualify for Medicaid.

In a Medicaid divorce the goal is to transfer assets to the healthy spouse to minimize the spend-down requirement, maintain the quality of life while qualifying the Medicaid spouse for assistance so that the couple’s assets won’t be depleted.

The Risky Medicaid Divorce

There are huge risks involved in divorce planning for taxes and Medicaid issues. First, there is the impact on your relationship. There is no fake divorce. Once the court signs the final judgment of divorce, you are divorced.

Florida, like all no-fault states, have minimum requirements for getting a divorce. In Florida, for instance, we require that at a minimum your marriage be irretrievably broken before you can get a divorce.

Be aware that the divorce itself could have an impact on other benefits that you or an individual spouse may already be receiving or expect to receive in the future.

Divorce can impact the amount of supplemental security income, Social Security retirement benefits and survivor’s benefits and veteran’s benefits.

Before you even consider a Medicaid Divorce, if you are dealing with a sick spouse, know that there are many planning strategies to help spouses get their loved ones onto Medicaid that do not include divorce.

Susan recalls listening to a doctor tell her parents when she was 15 that she’d never marry or give them grandchildren. She knows that her partner’s income and assets mean she could lose Medicaid and SSI, but her health had felt manageable back then. Cancer, however, changed the equation,

The Ozy article is here.

 

Short Term Alimony Face Off

Posted by Ron Kauffman on

According to TMZ, actor Nicolas Cage’s estranged wife, Erika Koike, doesn’t care their Las Vegas marriage only lasted for four days before Cage filed for an annulment. Koike says her marriage is valid, wants ‘the rock’ on her finger, and short term alimony.

‘Leaving Las Vegas’

The actor, 55 and his new bride, 34, a makeup artist, had been dating for over a year when ‘the Family Man’ filed for a marriage license in Las Vegas on March 23.

There was no ‘honeymoon in Las Vegas’, and now their ‘face off’ in a Clark County, Nevada court will be about the validity of their short-term marriage.

‘Seeking justice’, Cage filed for the annulment four days later in claiming that he was too drunk to comprehend what he was doing when they were married — and that he was unaware of Koike’s criminal record at the time.

Erika Koike then filed an answer to the complaint for annulment and a Counterclaim for divorce in court a few weeks after the petition was filed – which Cage filed just four-days after they were married in Las Vegas.

In the pleadings, Cage claims he “reacted on impulse and without the ability to recognize or understand the full impact of his actions,” and also says the marriage was based on fraud.

Florida Short-Term Alimony

I’ve recently written about Cage’s divorce and annulment petition. On the topic of alimony and spousal support, the length of a marriage is important. Florida Statutes actually define what the length of your marriage means.

Length of a Marriage

For example, in order to determine alimony, there is a rebuttable presumption in Florida that a short-term marriage is a marriage having a duration of less than 7 years.

Florida Statutes define a moderate-term marriage as a marriage having a duration of greater than 7 years but less than 17 years. And, a long-term marriage is a marriage having a duration of 17 years or greater.

How do you measure the marriage term? In Florida, the length of your marriage is the period of time measured from the date of your marriage until the date of filing of an action to dissolve your marriage.

In Nicolas Cage’s case, a four-day marriage would be considered “short-term” under Florida law. Is there short-term alimony for a short-term marriage?

Types of Alimony

The Length of the marriage is very important when it comes to determining the kind of duration of alimony payments.

For example, permanent alimony is generally for longer term marriages if the statutory criteria are met. In shorter term marriages and for moderate term marriages, permanent alimony may be considered, but the burden of proof is much higher.

Conversely, bridge-the-gap alimony is generally awarded to allow a person to transition from being married to being single. So, bridge-the-gap alimony is designed for short-term needs. In fact, the length of an award bridge-the-gap alimony may not exceed 2 years.

Durational alimony helps provide a person with economic help for a set period of time after short or moderate length marriages or following a marriage of long duration if there is no ongoing need for support on a permanent basis.

The length of your marriage also factors in to property divisions. When a court divides the marital assets and debts, the court begin with the premise that the distribution should be equal. One of the factors a court can look to in justifying an unequal distribution includes the duration of the marriage.

‘National Treasure’ Hunter

Koike claims Cage’s impulsive actions don’t qualify for an annulment. As for the alleged fraud, she argues Cage asked her to start again “in the right way” just 12 days after filing for an annulment … proving their relationship’s legitimate.

If Cage can successfully prove a case for annulment, Koike would not be eligible for spousal support as she would not be his spouse.

However, if Cage fails, and the court finds he had the capacity to marry and wasn’t defrauded, Koike would be entitled to spousal support.

According to TMZ, Koike argues she lost career opportunities during her long relationship with Cage and her reputation’s been damaged by his allegations. She’s also asking him to pay for her legal fees.

Cage has been married three previous times. Cabe was married to Alice Kim, Lisa Marie Presley, and Patricia Arguette.

The TMZ article is here.