Author: Ron Kauffman

A Prenup Guide Down the Amazon

Posted by Ron Kauffman on

Twenty-five years after marrying, Jeff Bezos announced he is filing for divorce from MacKenzie. Unless there is a prenuptial agreement to guide them, investors holding high-priced shares of Amazon will be wondering if they should proceed to checkout.

Prenup

Prime Divorce

According to CNN, the Bezos are the world’s richest couple, and they recently announced they are getting a divorce “after a long period of loving exploration and trial separation.”

The divorce could drastically reduce Bezos’ stake in Amazon and open the door for his wife to become one of its largest shareholders, with new leverage at the company.

Given that Amazon launched after the pair were married, virtually all of Jeff Bezos’ current $137 billion net worth could be considered community property and have to be equally divided.

But is there a prenup or post-nup agreement to guide them?

Florida Prenuptial Agreements

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

When a spouse is also the CEO of Amazon, they can be a guide past dangerous price swings. For example, when the CEO of Continental Resources was getting divorced, shares of his company dropped 2.9%. Conversely, when Rupert Murdoch announced his divorce, shares of News Corp gained 1.4%.

Why? Because in Rupert Murdoch’s case, the divorce announcement stressed the parties’ prenuptial agreement, that there would be no spin-offs, and a divorce would have “zero impact” on the company

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.

Proceed to Checkout?

It is not known whether the Bezos have a prenuptial agreement. It’s also unclear where they might file for divorce. Assuming there is no agreement, the Amazon CEO may need to either sell off or transfer half of his stake in the company to fulfill an equal split for the divorce.

Unlike other tech CEOs, Jeff Bezos’ control over Amazon doesn’t come from having a majority of voting power at the company, but rather from a strong leadership track record over two decades.

Divorce without a prenup can hit publicly traded companies hard. CEOs might be forced to sell or transfer shares as part of a property division. Selling shares can reduce a CEO’s influence and impact decisions regarding corporate strategy, asset ownership, and board composition. Divorce also impacts productivity, concentration, and energy levels because divorce is stress, and divorce can change appetite for risk.

The CNN article is here.

 

Divorce Surprise

Posted by Ron Kauffman on

In what is being hailed as another win for women’s rights, Saudi Arabian women who have been divorced by their husbands will now have to be notified they’ve been divorced via text message to avoid a nasty divorce surprise.

Divorce Surprise

Deserted

According to the Saudi Arabian Justice Ministry, Saudi courts have started notifying women of marital status updates via SMS and enabled them to view relevant probate certificates through the Ministry of Justice (MoJ) online portal.

Saudi courts have started to send such notifications starting on January 6, 2018, a step aimed at protecting the rights of female clients, and enhancing digital transformation with more services.

The courts notify women of probate certificates related to marital status — upon approval — through their Absher-registered mobile numbers,” the ministry explained. “The message includes the certificate number and the name of the relevant court.”

Female clients can also visit the court or the court president’s office in order to obtain a copy of the divorce certificate, if any.

Florida Due Process

I’ve written about many jurisdictional aspects on divorce in Florida and will be speaking at the Florida Bar Family Law Section and AAML Certification Review Course later this month in Orlando.

A divorce in Florida is a civil lawsuit, and basic Constitutional notions about Due Process require, at a minimum, that a party to a divorce be given notice of the proceedings and a real opportunity to be heard and defend themselves in an orderly procedure.

When courts violate Constitutional protections of due process rights, court commit fundamental error. This frequently happens when a court expands the scope of a hearing without proper notice.

For example, a court can violate due process by considering one motion at hearing that was scheduled and noticed for a different motion! Frequently trial courts will schedule a matter for a case management conference but turn the proceeding into a final evidentiary hearing. Family courts can be held to violate due process rights when that happens.

Exceptions

There are situations in family law in which notice may not be required. A good example of this is a temporary injunction.

Temporary injunctions may be granted without written or oral or even text notice if, immediate and irreparable injury, loss, or damage will result to the movant before the adverse party can be heard in opposition; and the movant’s attorney certifies any efforts to give notice and why notice should not be required.

It is important to keep in mind that a temporary injunction is an extraordinary remedy that is granted sparingly.

Just Desserts

What is happening in Saudi Arabia is a different matter entirely. The new notice move is designed to stop the practice of men ending marriages without telling their wives.

The Saudi courts started to send such notifications Sunday in:

a step aimed at protecting the rights of female clients, and enhancing digital transformation with more services.

The message will include the divorce certificate number and the name of the relevant court where the women can pick up the documentation.

The government move comes as part of social and economic reforms known as Vision 2030 being promoted by Crown Prince Mohammed bin Salman. The reforms have included women being given the right to drive.

The Saudi Ministry statement is here.

 

New Year Divorce

Posted by Ron Kauffman on

You are not alone. Divorce filings surge in January as people decide to start their New Year with a clean slate, helped by a stressful holiday period and, perhaps, even more stressful family members. What should you do if you’re considering a new year divorce?

new year divorce

New Year Resolutions

I’ve written about divorce issues and their causes before. As Market Place reports, being cooped up in a house during the holidays when a marriage is experiencing serious problems – while dealing with the pressure to put on a happy face for the kids and visiting relatives – takes its toll on the most stoic of couples.

People want to wait until after the holidays – especially if they have younger children at home. They think:

Let’s not ruin the holidays and their memories with a divorce. Let’s wait and talk about how we want to move things along in the new year.

And after seeing other families at their best on Facebook and Instagram – the idea of perfect looking families haunts many couples who wonder why their lives don’t look as happy.

That’s probably because people don’t post bad selfies with their families or write about how awful things are on social media. So, people’s perception of what other people are thinking about during high stress times like the holidays is misleading.

Another word of caution, due to the new tax code changes, the recipient of spousal support will not have to claim it as income and the payor will not be able to use alimony as a deduction any longer.

What should you do? Whatever the reason for your problems, there are a few things that anyone looking into divorce for the first time needs to know to help them through the process.

Prioritize

Line up your priorities for life after the divorce. Is it finding a home? Is it retiring? Getting a job? Managing your special-needs child? Consider writing down your most important goals.

Consult

Even if you aren’t certain you need to hire an attorney, or filing for divorce at all, it is a good idea to meet with an expert in Florida’s divorce and family laws. Who better than someone certified by Florida as an expert in marital and family law?

Alternatives

Litigation is something to avoid. It’s time-consuming, contentious and expensive. The majority of divorces end up settling. There are many forms of alternative dispute resolution out there, including collaborative divorce, mediation, and informal settlement conferences.

Have a Happy New Year

As Market Watch further reports, there is good reason for treating a divorce like a calm business deal. Don’t rush to file. Think about your end game. Many people file quickly out of anger perhaps after learning of a spouse’s misconduct. But it’s better to be strategic.

Divorces are up there with a major investment like buying a home. There’s one big difference with divorces though: They can be devastating for your finances, especially if your partner earned more money and the couple are forced to sell their home.

The Market Watch article is here.

 

Divorce in a Fortnite

Posted by Ron Kauffman on

Are too many pro athletes playing Fortnite? Is Fortnite addictive? Has Fortnite caused hundreds to divorce? This Christmas, many people are asking those very questions as everyone settles into play their holiday gifts.

Divorce Fortnite

Launch Pad

According to the Independent, numerous reports – published by just about every news major news organization – have recently claimed that some 5% of divorces are being caused by the online game.

The sources can all be traced back to one website called Divorce Online, which provides tools to people who are splitting up and need legal advice. And that pointed to some numbers that make clear that the story might not be all that it seems.

In fact, what actually happened is just a standard and depressing break down of relationships because of an addiction to online games. And the recent reports about Fortnite appear to be just a consequence of something being too good – or bad – to check.

All of the reports originated with that post on Divorce Online. Its headline read “Is Fortnite becoming a relationship wrecker?” and it went on to say that the site had dug into data generated about the people who were using its services.

“The company has done some data mining after seeing an increase in enquiries where Fortnite has been mentioned as part of the reason someone wanted to file a divorce”.

“It has received 200 divorce petitions since January 1st 2018 where addiction to Fortnite and other online games has been cited as one of the reasons for divorce.”

Many took that sentence and wrote stories suggesting that 200 divorces this year had been caused by Fortnite. But if that seems like a high number, it’s because it probably is: that “and other online games” is doing a lot of work, allowing the site to tie the news to a game that is famous but which might not have been cited in those divorces, which were actually about games in general.

Florida No Fault Divorce

Whether Fortnite is the reason for a marriage going bad or not, is largely irrelevant in getting a divorce in Florida. That’s because Florida has enacted a “no-fault divorce” law.

I’ve written about the no-fault concept before. The official term for divorce in Florida is “dissolution of marriage”, and you don’t need to prove some kind of fault as grounds for divorce. Florida abolished fault as a ground for divorce.

In Florida, 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 before filing the petition, and the marriage is irretrievably broken.

However, fault may be considered under certain circumstances in the award of alimony, equitable distribution of marital assets and liabilities, and determination of parental responsibility.

Battle Royale

Digging into the numbers, Divorce Online gave absolutely no indication how many of those divorces were caused by Fortnite itself. So possibly fewer than 200 divorces were caused by the game. Possibly, the other divorces were caused by other games.

More likely, the numbers reflect digital addiction in general. “These now include online pornography, online gaming and social media, so it is no surprise to us that more and more people are having relationship problems because of our digital addictions,” the site wrote in quotation attributed to a spokesperson.

“Fortnite is all over the news right now as one of the most addictive digital games ever played”.

The Independent article is here.

 

Merry Christmas

Posted by Ron Kauffman on

The divorce and family law offices of Ronald H. Kauffman, P.A. will close at 2 PM on Monday, December 24 for the Christmas holiday. We will re-open at 9AM on Wednesday December 26. We wish you and your family a Merry Christmas.

divorce holidays

Before the arrival of Christmas is the time to resolve child custody and timesharing problems so you can enjoy your family on the holidays with minimum stress.

Below are suggestions to make your holiday timesharing issues a little easier:

  • Alternate. Some families alternate the holiday every other year. If you get the kids this year, next year will be the other parent’s turn. Having a regular plan to fall back on can eliminate the potential for what is fair.
  • Be flexible. An easy holiday schedule for everyone may require some changes from the normal visitation schedule.
  • Be respectful. You may not want to be friends anymore, but you need to figure out how to communicate with your ex without all the emotional baggage.
  • Don’t mix issues. Do not bring up unrelated issues which could make a problem free Christmas dinner impossible. Set aside your differences until after the holiday season.
  • Pick your battles. Christmas may even be more important to you than Easter is to your ex-spouse. Don’t fight just for the sake of fighting.
  • Protect the children. Your children’s memories of Christmas morning should be about family, food and fun. They should not be forced to witness you and another parent arguing.
  • Plan. Start talking about the holiday visitation schedule sooner rather than later, the longer you wait the harder it can be.

Going through a divorce during the holidays is always stressful. But the weather has cooled and the kids are on vacation. Try to make the holidays the best time of year.

 

Upcoming Speaking Engagement

Posted by Ron Kauffman on

I will be speaking at the prestigious Marital & Family Law Review Course in Orlando from January 25th to January 26th. I will be discussing interstate child custody, interstate family support, and The Hague Convention on international child abductions. The event is co-sponsored by the Florida Bar Family Law Section and the American Academy of Matrimonial Lawyers.

Speaking Engagement

Interstate Custody

Parents move from state to state for various reasons. It is a subject matter I have written and spoken about many times. Whether children are moved by parents wrongfully or not, moving your children creates interstate custody and support and problems.

The Uniform Child Custody Jurisdiction and Enforcement Act, and The Uniform Interstate Family Support Act, can be critical laws to know in those cases.

International Child Abductions

What happens if your children are wrongfully abducted or retained overseas? If that happens, you must become familiar with the Convention on the Civil Aspects of International Child Abduction, also known as The Hague Convention.

This international treaty exists to protect children from international abductions by requiring the prompt return to their habitual residence.

The Hague Convention applies only in jurisdictions that have signed the convention, and its reach is limited to children ages 16 and under. Essentially, The Hague Convention helps families more quickly revert back to the “status quo” child custody arrangement before an unlawful child abduction.

If your children are wrongfully taken out of the country or wrongfully retained after the time for returning them passed, the Hague Convention can help you get them back.

Interstate Family Support

The Uniform Interstate Family Support Act is one of the uniform acts drafted by the Uniform Law Commission. First developed in 1992, the UIFSA resolves interstate jurisdictional disputes about which states can properly establish and modify child support and spousal support orders.

The UIFSA also controls the issue of enforcement of family support obligations within the United States.

In 1996, Congress passed the Personal Responsibility and Work Opportunity Act, which required all U.S. states adopt UIFSA, or face loss of federal funding for child support enforcement.

Every U.S. state has adopted some version of UIFSA to resolve interstate disputes about support.

Certification Review

It is a privilege to be invited to speak on interstate custody and international child abductions at the annual Family Law Board Certification Review Seminar again.

The annual seminar is the largest, and most prestigious advanced family law course in the state. Last year’s audience included over 1,600 attorneys and judges from around the state.

The review course is co-presented by the Family Law Section of The Florida Bar, and the American Academy of Matrimonial Lawyers.

Registration information is available here.

 

The Art of Property Division

Posted by Ron Kauffman on

Developer Harry Macklowe and his wife, Linda, were ordered to split their “internationally renowned collection” of modern art from the likes of Andy Warhol and Alberto Giacometti in a property division case involving hundreds of millions of dollars.

property division

Who Needs Nine Marilyn Monroes?

A New York court in Manhattan ruled that the Macklowe art trove amassed during 59 years of marriage should be sold and the profits shared.

In a sign of the acrimony that fueled a prolonged legal dispute, the couple couldn’t agree on what the collection was worth — Harry’s expert said $788 million, while Linda’s said $625 million.

Their collection, which encompasses some 165 pieces of art, among them Andy Warhol’s Nine Marilyns which is estimated to be worth $50 million, Le Nez by Alberto Giacometti, worth up to $35 million, Jeff Koons Vest with Aqualung for $10-11 million, and Jackson Pollock, Number 17, valued at up to $35 million..

Florida Property Division

I’ve written about property division in Florida. 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.
  • intentional dissipation, waste, depletion, or destruction of marital assets.
  • 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 start a property division. 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.

The Nose Knows

After a 14-week trial last year, the divorce judge determined in a 65-page opinion how to split all the assets held by the 81-year-old developer and his wife, who is on the board of the Metropolitan Museum of Art.

Linda will get to keep $40 million in art but will have to pay half of that to Harry, she’ll get to keep their 14,000-square-foot apartment at the Plaza Hotel valued at $72 million but have to pay her estranged spouse $36 million for his share. Harry will retain ownership of $82 million in commercial real estate — including 737 Park Ave. — but pay Linda $41 million.

The couple will split the $62 million they have in cash, the judge said.

Linda Macklowe gets to keep another $40 million of art — including works by Koons and Picasso, but must pay Harry $20 million in credit, the judge said.

The couple were married Jan. 4, 1959, when he was a 21-year-old ad salesman for Parents Magazine and she was 20, working as a receptionist. They had no prenuptial agreement.

The Bloomberg article is here.

 

Divorce and Short Term Marriages

Posted by Ron Kauffman on

Baretta action star, Robert Blake, has filed for divorce from his third wife, Pamela Hudak, just a year after the two strolled into Beverly Hills City Hall to obtain their marriage license. What is the impact of such a short-term marriage on divorce?

divorce alimony

And that’s the name of that tune!

According TMZ, actor Robert Blake filed docs in Los Angeles Friday to call the relationship quits. The 85-year-old married Pamela Hudak in Spring of 2017. The couple had known each other for decades and even dated years ago. Blake was previously married to Sondra Kerry from 1961 to 1983.

Florida Divorce

I’ve written about divorce and the length of a marriage before. Florida Statutes actually define what the length of your marriage means. 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.

The Length of your 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.

Don’t do the crime if you can’t do the time.

Blake was accused of murdering his second wife, Bonnie Lee Bakley. Blake was her tenth husband. Bakley was fatally shot while sitting in Blake’s parked car outside a Los Angeles-area restaurant in May 2001.

In 2002, Robert Blake was charged with Bakley’s murder, solicitation of murder, conspiracy and special circumstance of lying in wait. In March 2005, a jury found Blake not guilty of the crimes.

Seven months later, Blake was found liable in a wrongful death lawsuit brought against him by Bakley’s children. Officially, Bakley’s murder remains unsolved.

The TMZ article is here.

 

Alimony and Cohabitation

Posted by Ron Kauffman on

Actress, Alicia Silverstone, is on the hook for large monthly alimony payments following the finalization of her divorce from ex-husband Christopher Jarecki. What’s different is that alimony can end if he cohabitates with someone. What is Florida law on alimony and cohabitation?

Alimony cohabitation

The Wonder Years

According to media sources, the Clueless star is responsible for paying $12,000 per month in spousal support until Jan. 31, 2024, with the due date being the first of every month, according to court documents obtained by ET.

While the 42-year-old actress is required to pay the substantial spousal support sum for the next five years, the agreement provides that if Jarecki, also 42, lives with a “romantic partner” for at least five months out of a 12-month period, Silverstone’s financial obligation “shall immediately terminate.”

The couple also agreed to share joint physical custody of their 7-year old sone, with an equal and fair custody schedule to be agreed upon by both parents.

Florida Alimony & Cohabitation

I’ve written about alimony issues before. An early end to alimony because of cohabitation can be a clause anyone who pays alimony would want. As Silverstone’s divorce shows, very often it can be women paying alimony to men.

In Florida, cohabitation is referred to as a “supportive relationship.” In Florida, our statute allows a court to reduce or terminate an award of alimony if a supportive relationship exists between the recipient of alimony and the person the alimony recipient resides with.

The Crush

In determining whether a supportive relationship exists, the court considers the following:

  • The period of time that the obligee has resided with the other person in a permanent place of abode.
  • The extent to which the obligee or the other person has supported the other, in whole or in part.
  • The extent to which the obligee or the other person has performed valuable services for the other.
  • Whether the obligee and the other person have jointly contributed to the purchase of any real or personal property.
  • Evidence in support of a claim that the obligee and the other person have an express agreement regarding property sharing or support.
  • Whether the obligee and the other person have provided support to the children of one another, regardless of any legal duty to do so.

But simply proving a supportive relationship is not enough. Also, people can waive their right to seek modification of alimony in a settlement agreement. Cohabitation is not as easy to prove as you might think. Even if you can prove a supportive relationship, you must check your agreement to see if you can even modify alimony.

Clueless

The Silverstone agreement also has a clause stating that if his “housing costs” are reduced by at least 50 percent as a result of sharing a residence with any unrelated adult for five months out of a 12-month span, Silverstone would also be free from her support payments.

The pair started dating in 1997 and tied the knot in 2005. They later welcomed their son in May 2011. When Silverstone filed for divorce earlier this year, the actress’ rep released a statement to ET addressing the nature of their split.

According to court documents obtained by ET at the time, Silverstone cited “irreconcilable differences” as the grounds for the termination of their 13-year marriage.

The ET article is available here.

 

Happy “Good Divorce Week”?

Posted by Ron Kauffman on

Well it is the holiday season. According to the Financial Times, it’s “Good Divorce Week” (that’s really a thing). In Britain the aim is to help resolve a divorce in a constructive way and minimize the impact on children. The idea may work well here too.

Divorce

The Long and Winding Road

For most people — especially those going through a separation — a “good divorce” sounds like an oxymoron. Contentious splits are common, and likely to involve a lot of wasted time, anger and money.

But going to court is not the best way to resolve family issues. Mediation and negotiation can be cheaper, quicker and less stressful.

Increasingly, the collaborative process is becoming more widely requested by clients and helps keep costs and anger down.

Why do people in the UK divorce? According to the article, unreasonable behavior is the most common basis for divorce — accounting for 52% of divorce petitions brought by women, and 37% of those by men. However, research says adultery is the most common reason for divorce, followed by couples growing apart, struggling with money issues, abuse and addiction.

Let it Be: Florida Divorce

I’ve written about divorces before, and the “good divorce” too. Historically in Florida, in order to obtain a divorce, one had to prove the existence of legal grounds such as adultery. This often-required additional expenses on behalf of the aggrieved party, only serving to make the divorce process more expensive and cumbersome than it already was.

Florida Statutes actually still provide that these things may be considered under certain circumstances in the award of alimony, equitable distribution of marital assets and liabilities, and determination of parental responsibility. However, case authority shows little consideration from a legal perspective, relegating them to more of an emotional appeal.

In the years leading up to the enactment of “no-fault” divorce, courts often granted divorces on bases that were easier to prove, the most common being “mental cruelty.”

In Florida, 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 before filing the petition, and the marriage is irretrievably broken.

Back in the UK

Sarah Coles, has been researching the costs of divorce in the UK, and how a good divorce can reduce these. For starters, fighting in court can be expensive, so you need to ask yourself whether you really need to fight over who gets the pots and pans.

Mediation can dramatically cut costs of a divorce. If you have a reasonably good and equal relationship with your ex, this brings you together in a room with a single lawyer to hammer out the details.

To enable this, separating couples need to keep the channels of communication open.

Unsurprisingly, it is the financial settlement that causes huge stress. The article advises couples to decide their priorities when it comes to finances and matters relating to their children.

Remember that a bad credit record can affect you both, and that if you move out of the family home, but are still named on the mortgage, you are still jointly liable for the monthly repayments.

The Financial Times article is here.