Author: Ron Kauffman

Can a Prenup Protect De Niro’s Dinero

Posted by Ron Kauffman on

Robert De Niro’s estranged wife, Grace Hightower, is demanding half of the actor’s half-billion dollar fortune, despite signing a prenuptial agreement in 2004. Feeling the ‘Heat’, De Niro is wondering whether his prenup is valid and will survive court scrutiny.

Void Prenup

Analyze This

According to the New York Daily News, details about the Hollywood star’s finances emerged during a hearing in Manhattan Supreme Court that revealed the two are battling over how to interpret a 2004 pre-nuptial agreement signed after a previous divorce.

De Niro attorney Krauss-Browne said that under the terms of the pre-nup Hightower was entitled to a $6 million apartment, $500,000 cash, $1 million each year and half the value of their marital residence.

“Nope, I’m entitled to 50%.”

Hightower, 64, is arguing she is entitled to much more — and that De Niro, 75, has kept her in the dark about their money since 2008. She believes she is entitled to a cut of 38 movies and 35 new business ventures since 2004 that involved the Oscar-winning actor.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just resolving the ‘Casino’ like uncertainty in a marriage.

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.

That’s where prenups come in. Prospective spouses may limit or expand state laws 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 a reliable guide down rough rivers if they’re done right.

Great Expectations

Hightower attorney Allan Mantel put the couple’s revenue since their prenup at $300 million — $250 million of which came from movies. He estimated that De Niro’s net worth was $500 million.

In addition to De Niro’s work in Hollywood, much of their earnings came from his ownership of the Nobu chain of restaurants and Greenwich Hotel.

Hightower’s frustration that she was not considered an equal led to their previous divorce in 1999, Mantel said.

“That’s what caused the first divorce — we want a partnership. She enhances his goodwill. She enhances his career. I agree you’re going to be my 50% partner’ — it’s in the agreement.”

Hightower says that part of the deal is void due to De Niro’s alleged shady accounting practices. The judge then joked:

“His income will fall now that Special Counsel Robert Mueller is out of the picture — less ‘Saturday Night Live,’” the judge remarked, referencing De Niro’s appearances on the sketch show.”

De Niro sat stone-faced.

The judge made a more serious observation as the hearing concluded.

After the hearing, De Niro, as is his custom, held a newspaper over, his face and became aggravated while struggling to find his driver waiting for him outside the courthouse.

Meet the Parents

De Niro filed for divorce from Hightower in December. They are also battling over custody of their 7-year-old daughter, who they had through a surrogate. They also have a 21-year-old son.

The New York Daily News article is here.

*Photo courtesy Georges Baird

 

Borat and No-Fault Divorce

Posted by Ron Kauffman on

The official term for divorce in Florida is “dissolution of marriage”, and you don’t need to prove fault. Instead, you need to state under oath that your marriage is “irretrievably broken.” According to CNN, Sacha Baron Cohen learned the true meaning of no-fault divorce after discovering Pamela Anderson’s divorce may have been caused by his movie Borat.

Borat No Fault Divorce

High Five!

As CNN reports, the movie Borat was a huge success, earning $262 million against a modest $18 million budget, and worked its way deep into American culture. Unfortunately, the film’s success came at a price, as it may have cost Kid Rock his wife.

Sacha Baron Cohen, recently told The Daily Beast’s The Last Laugh podcast that Pamela Anderson was in on the joke for the scene in which Borat kidnaps her, Cohen and that her then husband, Kid Rock, hated the movie.

Cohen says that the scene in which his fictional character Borat approaches Anderson and carries her out of a book signing caused the split:

“We did that scene twice, actually. The first time we did it at a book signing and I grabbed her over my shoulder and ran out with her and no one did anything. I was like, what kind of fans are these?”

Kid Rock was briefly married to Pamela Anderson in 2006. Cohen said that, following a screening of the finished film with Anderson and Kid Rock, he called Anderson to find out what her new husband thought of the film.

“Kid Rock saw the movie, and I texted Pamela Anderson and asked, ‘How did it go? What did he think?’” said Cohen. “And she texted back, ‘He’s getting divorced.’”

Florida No-Fault Divorce

I’ve written about no fault divorce before. No-fault laws are the result of trying to change the way divorces played out in court. In Florida no fault laws have reduced the number of feuding couples who felt the need to resort to distorted facts, lies, and the need to focus the trial on who did what to whom.

Florida abolished fault as grounds for filing a divorce. Gone are the days when you had to prove adultery, desertion or unreasonable behavior as in England.

The only ground you need to file for divorce in Florida is to prove your marriage is “irretrievably broken.” Additionally, the mental incapacity of one of the parties, where the party was adjudged incapacitated for the prior three year, is another avenue.

Adultery can be the cause of a divorce, but can it impact the outcome? Since Florida became a no-fault state, the fact that, “she (or he) is sleeping with a co-worker” doesn’t hold much traction in court any more.

Some people think no fault divorce is one of the main reasons for a high divorce rate. Despite the recent legislative moves in the UK, there is a movement here to return to the old “fault” system to promote families.

Not in Kazakhstan Anymore

Cohen said Anderson told him that Kid Rock wanted the divorce specifically because of the movie, which he naturally assumed was a joke:

“I thought it was a joke,” Said Cohen. “But then a few weeks later they got divorced and they put as a reason for divorce: ‘Borat.’ So, it had some casualties.”

Cohen’s version of this story also lines up with and seems to confirm reports, which claimed that Universal Studio chief Ron Meyer held a screening of the movie at his home and that the Kid Rock became angry and ruined the night because he hated the movie.

This revelation raises a number of questions. Was Kid Rock, like so many people, unable to tell if his wife’s involvement in the film was real? Did he believe that his wife did not fight back strongly enough against the seductive, amorous advances of Borat Sagdiyev?

CNN reports that Anderson and Rock did get divorced the same month as the film came out, but the comedy film may be an unlikely cause of the divorce.

The CNN article is here.

Photo courtesy of Michael Bulcik / SKS Soft GmbH Düsseldorf

 

American Academy of Matrimonial Lawyers

Posted by Ron Kauffman on

I am honored to announce my admission as a Fellow in the American Academy of Matrimonial Lawyers. Among divorce and family law practitioners, Academy Fellows represent highly skilled negotiators and litigators who represent individuals in all facets of family law.

AAML

The areas of representation include divorce, annulment, prenuptial agreements, marital settlement agreements, child custody and visitation, business valuations, property valuations and division, alimony, child support and other family law issues.

There are currently more than 1650 Fellows in 50 states. To be represented by a Fellow of the American Academy of Matrimonial Lawyers is to be represented by a leading practitioner in the field of family law.

The 1650 AAML Fellows across the United States are generally recognized by judges and attorneys as preeminent family law practitioners with a high level of knowledge, skill and integrity. Academy Fellows enjoy a reputation for professionalism, competence and integrity.

From my professional and personal experience, I’ve discovered that members of the AAML represent some of the finest attorneys I’ve worked with. I look forward to being active in this prestigious group.

Information about the Academy’s annual Institute, webinars, and the Marital and Family Law Review Course is available at the Florida Chapter’s website here.

The history and more information about the AAML is available on the national site here.

 

New Divorce Expert Witness Rule

Posted by Ron Kauffman on

Many people know that in 2013 Florida passed a law which changed the divorce expert witness rule and how experts could testify in family law cases. A few people warned that the new law may be unconstitutional because of the way it passed. Fewer people know that in 2018 the Florida Supreme Court threw out the new rule. Even fewer people know that last week the court changed it all back.

Divorce Expert

The Frye Pan

People rely on all sorts of expert witnesses in divorce and family law cases, maybe more than most areas of law. Routinely, people will come to trial with accountants, psychologists, and other experts in tow.

Since 1923 courts have relied on the Frye Rule, which states that expert opinion based on a scientific technique is only admissible where the technique is generally accepted as reliable in the scientific community.

In 1993, the U.S. Supreme Court adopted a new standard which requires trial judges to screen expert testimony for relevance and reliability. The “Daubert test” developed in three product liabilities cases. The plaintiffs tried to introduce expert testimony to prove products caused their damages. The U.S. Supreme Court ultimately tightened the rules for admitting expert testimony

Too Many Cooks in the Kitchen

In 2013, the Florida Legislature amended the Florida Evidence Code to start following the U.S. Supreme Court’s Daubert standard for the admission of expert testimony and the basis for an expert’s opinion.

I’ve written about the Constitutional problem with the way the legislature created the new law. When the legislature passes a law encroaching on courtroom practice and procedure, the laws are unconstitutional. However, the Legislature can enact substantive laws.

When one branch of government encroaches on another branch, Florida traditionally applies a “strict separation of powers doctrine.” Given that the Evidence Code contains both substantive and procedural provisions, there is a question whether the Legislature violated the separation of powers doctrine.

The Florida Evidence Code contains both substantive and procedural provisions, so there was a suspicion that the Legislature violated the separation of powers doctrine when it amended the code this way. At the time however, that issue has not been accepted by the Florida Supreme Court to date. The latest decision corrected that.

Frying Frye

The Florida Supreme Court, as part of its Constitutional rule-making authority has the power to adopt Legislative changes to the Evidence Code. As we saw before, the Court previously refused to adopt the Daubert amendments, to the extent that they are procedural, solely:

“due to the constitutional concerns raised” by the Committee members and people who opposed the amendments.”

This year, without re-addressing the correctness of the Florida Supreme Court’s ruling in DeLisle v. Crane Co, and after noting that DeLisle did not address the amendment to section 90.704 made by section 2 of chapter 2013-107, the Court chose to recede from its prior decision not to adopt the Legislature’s Daubert amendments.

The Court remarked that the Daubert standard has been routinely applied in federal courts since 1993, a majority of states adhere to Daubert, and caselaw after Daubert shows that the rejection of expert testimony is the exception rather than the rule.

Citing to Animal House, one of the dissenters to the majority opinion, newly appointed Justice, Robert J. Luck, poked fun at the High Court’s swift rule change:

Like the little-known codicil in the Faber College constitution, the concurring opinion cites section II.G.1. of our internal operating procedures, which provides that “the Court, on its own motion, may adopt or amend rules.” Id. (quoting Fla. S. Ct. Internal Op. Proc. II.G.1.). According to Westlaw, no court, including ours, has ever cited this language or any part of section II. Ever.

Effective immediately, the Florida Supreme Court adopted the amendments to section 90.702 as procedural rules of evidence, and adopted the amendment to section 90.704 to the extent it is procedural.

The Supreme Court opinion is available here.

 

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.