Category: Agreements

Israel’s Divorce Revolution

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Monday, July 25, 2016.

Israel passed a law that requires divorcing couples to first try to hammer out agreements through mediation before they can file divorce legal proceedings.

The new law is formally referred to as the “Resolution of Family Disputes Law”, and more commonly known as the “Divorce Revolution” and was enacted on Sunday.

Israel’s Justice Minister, Ayelet Shaked, pushed for the resolution, which aims to settle divorce cases in a peaceful and amicable manner. To this end, both parties will be given four mandatory mediation meetings free of charge.

I’ve written about foreign divorce dispute resolution attempts before. Mediation is another of the methods of alternative dispute resolution available to divorcing couples.

Mediation is essentially a negotiation facilitated by a neutral mediator, to resolve disputes. The mediator supervises, helps find common ground, deal with unrealistic expectations, and offer creative solutions.

Under Israel’s proposal, the first meeting will be held in a therapeutic environment without legal representation. The makeup of the remaining three meetings will be decided based on the initial meeting’s general atmosphere, in accordance with the mediation team’s assessment.

As long as the mediation meetings continue to be carried out amicably, the parties’ lawyers will not be asked to join in. If, however, legal matters arise or if either party requests their presence, they will be asked to take part in them. In cases of involving emergency relief, lawyers will be allowed to participate in all the mediation sessions.

Following the law’s enactment, Justice Minister Shaked issued a statement saying that:

“The new situation will offer an efficient alternative to litigation meetings over such sensitive and complex matters as family disputes. I am confident that this is what parents want most. At the end of the day, they continue to be their parents, even if they are no longer a couple.”

In Florida, most divorces are resolved through the mediation process, and it is usually ordered in most cases filed here. In some counties, it is required.

The Ynet article is available here.

Heat and Bull in Post-Judgment Agreements

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Monday, July 11, 2016.

Dwyane Wade’s ex-wife isn’t over the divorce. She wants to throw out the settlement agreement, and get part of his new Chicago Bull’s contract. When you pull more bull, you can catch more heat.

After the basketball superstar signed a two-year, $47 million deal with his hometown Chicago Bulls, Wade’s ex-wife reportedly said she wants to re-open her divorce settlement.

According to the Chicago Tribune, Siohvaughn Funches asked a judge to throw out her settlement agreement with Wade, and give her a larger portion of his basketball earnings, including part of his new contract.

I’ve written about post-judgment divorce issues in the past. Now that Dwyane Wade is newly remarried, there may be an opportunity for Funches to request financial information from the new spouse.

Funches and Wade settled their divorce back in 2013 with a settlement exceeding $5 million. Now she wants more after learning that Dwyane signed a $47 million deal with the Chicago Bulls.

The two married in 2002 when Wade filed for divorce in 2007 and the court made the split official in 2010. Wade, who grew up with Funches in south suburban Robbins, won sole custody of their two children, Zaire and Zion.

That 2011 custody decision upset Funches, who staged a bizarre sit-in protest in Daley Plaza claiming Wade had left her “homeless.” A non-disparagement clause in the settlement prevents both sides from trading further insults about each other.

According to Funches’ website, she recently completed a self-published autobiography that includes details of how she says she survived the “turmoils of injustice and corruption in the legal system in America.”

The Chicago WGNTV has the story here.

Is There a Trump-nup Prenup?

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Monday, July 4, 2016.

As a certain presidential candidate might say, “prenuptial agreements are yuuuuuuuuge”. If you’re marrying this summer, you should build a fantastic wall around your assets.

Many people don’t realize that prenuptial agreements serve many purposes; some of them are surprising. The New York Magazine reports on “lifestyle” clauses in prenups. Lifestyle provisions are clauses which can include things like:

– a “no-diaper” rule,

– a clause that specifies no children, or

– “fling fees” for infidelity.

But clauses can also get excruciatingly specific: whether the children will be raised vegetarian; how often a couple should have sex; how much time a couple will spend at their in-laws’ house; which nights a husband can watch football with his friends; how many hours a spouse will work during the week; how long a husband is expected to work before he retires; and, of course, how much weight a wife can gain.

You should know that these kinds of clauses are nearly impossible to enforce in court. They are added to prenuptial agreements to add an aspirational sense to the agreement; a sort of a declaration of what you expect in the marriage.

I’ve written about the need for prenups before. There are many other kinds of clauses in prenups that can be enforced. Prenuptial agreements are often used to limit or eliminate alimony and spousal maintenance awards, to protect assets that are titled in one spouse’s name, or protect you before premarital money becomes mixed.

Donald Trump, reportedly says that his prenuptial agreement with Melania Knauss has made his marriage stronger.

“It’s a hard, painful, ugly tool. Believe me, there’s nothing fun about it. But there comes a time when you have to say, Darling, I think you’re magnificent, and I care for you deeply, but if things don’t work out, this is what you’re going to get.”

The New York magazine article is here.

More Mideast News: Saudi Marriage Contracts

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Monday, May 23, 2016.

Speeding into the 21st Century, Saudi Arabian brides will now get a copy of their prenuptial agreements, in the latest women’s rights breakthrough in the kingdom.

Another post from the Middle East. Women can now receive their marriage contracts. Saudi Arabian media is hailing this a “great step forward for women”! The disturbing reality is that Saudi women had no idea about their marriage rights before being wed.

This presented a problem, as women who married secretly have had to face frustrating legal wrangles with their husbands denying their formal relationships.

In some cases, wives have had trouble with the families of their husbands determined to deprive them of their inheritance and other rights following their husband’s death. The women had no formal evidence they got married since they did not have copies of their marriage.

Justice Minister Waleed Al Samaani said that the decision allows women to be fully aware of their rights and of the marriage contract conditions.

Under the minister’s decision, two copies of the contracts are given to the groom and the bride and each must sign to acknowledge they received it.

I’ve written about prenuptial agreements many times. Prenups can address many issues, including: Caring for a parent; Going back to school; Shopping habits; Credit card debt; Tax liabilities; Alimony and child support from previous relationships; and Death or disability.

In Saudi Arabia, the copy of the contract will also allow women to check all the details of the marriage contract, including the prenuptial agreement and the amount of money to be paid in case of divorce or the possibility for the wife to take up a job.

Last week, an Arab woman who got married with a rich Saudi businessman won a legal case against his family following his death after her lawyer successfully proved their formal marriage.

The wife had no copy of the contract and the husband’s family rejected her marriage claims. She eventually won the case when the lawyer was able to convince the two witnesses of the marriage to come forward and give their testimonies.

The 22-year-old woman, from an Arab country, was given SR67 million (about $17.9m) as her share of the inheritance. She and her husband were married for only one month when he had a heart attack and died.

The Gulf News article can be found here.

Florida Collaborative Family Law Process

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Monday, May 16, 2016.

Divorce is not easy. Fortunately, Florida has joined several other states adopting the Collaborative Law Process, an alternative to traditional notions that divorce must be a war. Here’s what is involved.

I’ve written about various types of alternatives to traditional divorce cases. Under the new collaborative law, the following issues are subject to resolution through the collaborative law process:

-Marriage, divorce, dissolution, annulment, and marital property distribution;

-Child custody, visitation, parenting plans, and parenting time;

-Alimony, maintenance, child support;

-Parental relocation with a child;

-Premarital, marital, and post-marital agreements; and

-Paternity.

There was a recent article in the Tampa Bay Times about the collaborative process and the new law. The Collaborative Law Process Act creates a pathway toward a more civil and less contentious way for couples to change the status of their relationships.

Essentially, each spouse retains a specially trained collaborative attorney. Then, both parties would hire a mental health professional – to guide both of them toward an emotional outcome – and an independent financial adviser.

Then, everyone – the spouses, their attorneys, and the retained professionals – sit down and examine all the relevant issues. Everyone shares documents and information.

This process is private and confidential in stark contrast to a litigated divorce, where testimony and evidence may be considered to be in the public domain.

It is a voluntary process, and all issues are explored and settled via negotiation. Either party can put an end to the collaborative process at any time, but there are consequences to that; if litigation follows a failed collaborative process, neither lawyer can represent their client in the litigation, and the professionals cannot be deposed or testify in that action.

Therefore, unlike any other alternative dispute resolution process, the lawyers “have skin” in working toward resolution versus conflict.

Collaborative law is a new way of doing business for everyone involved. But, there are a few steps that remain before the statutes created by the Collaborative Law Process Act become effective.

The Florida Bar must submit the collaborative rules of procedure and rules of professional conduct that lawyers in the state must follow in order to practice collaborative law, to the Florida Supreme Court for approval and implementation, making the collaborative process more accessible for Florida families.

The Tampa Bay Times article is here.

Florida Prenuptial Agreements

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Wednesday, May 11, 2016.

Here are some statistics: the average wedding costs $20,000; June has the most weddings; $8 billion is spent on honeymoons. Marriage is expensive, which is why you may need a prenuptial agreement.

Many think prenuptial agreements are for the wealthy. But, you don’t always enter a marriage with riches, or guarantees that the bliss will last. It might not be a bad idea to have a plan in place.

Prenuptial agreements, or “prenups,” are contracts entered into before marriage that outline the division of assets in case of divorce or death.

They resolve things like alimony, ownership of businesses, title of properties, and even each spouse’s financial responsibilities during the marriage.

There are many other concerns that can be addressed in the contract:

– Caring for a parent

– Going back to school;

– Shopping habits

– Credit card debt;

– Tax liabilities;

– Alimony and child support from previous relationships; and

– Death or disability.

I’ve written about the need for prenups before. There are times when a prenup is a “must-have”:

1. When one person enters the marriage with significantly more money or assets than the other

2. When one or both future spouses have family money or inheritances,

3. When you want to keep parts of your finances separate: such as separate bank accounts, and a joint account for paying household bills.

One of the points of a prenup, is that if money in the bank becomes mixed, accounting for any increase or loss becomes very difficult to trace and unwind if you end up in divorce court.

Avoiding Future Arguments

Arguments about money are a known predictor of divorce. In order to avoid that, it is better to discuss with each other the terms of a prenuptial agreement when times are good. Difficult talks about money can uncover things that could be disastrous if put off until several years into the marriage.

The wedding and honeymoon will be expensive, and the courtship phase can conceal potential problems. Discussing financial issues can bring couples closer together when it matters most, and reduce the chance of a bitter financial argument later.

The wedding statistics article is here.

Religious Prenups

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Thursday, April 21, 2016.

Not only are prenuptial agreements on the rise among all engaged couples, they are also becoming very popular for religious couples. What is the intersection of prenups and religion?

Prenuptial agreements, or “prenups,” are contracts entered into before marriage that outline the division of assets in case of divorce. They may touch on things like spousal support (alimony), title or ownership of businesses and properties, and even financial duties and responsibilities during the marriage.

While most people think prenuptial agreements deal with assets and alimony, there are a lot of other concerns that can be handled:

– Will you have to care for an older parent

– Who pays or supports the house when going back to school

– Agreeing to spending habits

– Who pays for what credit card debt

– Who handles the costs of a business

– Who pays the taxes

– What happens if someone dies or becomes disabled

Now there is something new to consider: your religion. I’ve written before about religious marriage contracts, especially Muslim Mehr agreements.

Currently in Florida, the issue of whether a Muslim prenuptial agreement is enforceable depends on whether it complies with Florida’s secular contract law. If so, secular terms may be enforceable as any contractual obligation.

What about Jewish Prenups? The halachic prenup, as it is called, is a document binding under Jewish law that helps to ensure that a woman, would be able to obtain a religious divorce from her husband.

The reason, as many young couples are discovering:

“Part of going into a relationship with someone is making sure that you trust each other,” said Mr. Morrison. “We care enough about each other now to be protected in the unlikely event something were to change.”

The halachic prenup – which dates back decades and has been championed by the Beth Din of America, the U.S.’s biggest rabbinical court – has gone mainstream in some circles as a mechanism to avoid the messy, sometimes abusive situations that advocates say can arise as divorce becomes more common in the Orthodox Jewish community.

The Catholic Church does not have a blanket prohibition of prenups. In certain cases, they can be quite valid and helpful. When a widow marries a widower, for example, and they both have children from their previous marriages, a prenup is a legitimate way of determining what is marital property and what is non-marital as a basis for determining the inheritance rights of each spouse’s children.

Postnuptial Agreements are on the Rise

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Monday, April 4, 2016.

Like prenups, postnups are contracts that spell out how assets and debts should be split. Divorce lawyers are citing an increase in spouses asking for postnuptial agreements in the last three years.

The Wall Street Journal ran an article last month on some of the common reasons for a postnup:

Sometimes, it is to punish a spouse for bad behavior, such as infidelity. Other times it is for the opposite reason: to show commitment by guaranteeing a richer settlement if things don’t work out.

I’ve written about postnuptial agreements in the past. They are also used when, for other reasons, spouses want to change the financial agreements set in a prenup.

Postnups allow you to change the law. Right now in Florida, there has been a bill passed to modify the alimony law. The bill is waiting the Governor’s signature.

Through an agreement you can modify Florida’s legal standards for awarding alimony, in addition to modifying what the current law says about the amount of support and the duration of the alimony period.

The probability of divorce is around 50% for first marriages. For second marriages, it’s more like 70%. What some people don’t realize is that going through a second, third, or fourth divorce can be more complicated than first-time divorces.

In multiple divorces, couples are older, and have less time to make up for losses. Also, couples are competing for dwindling resources. Child-support, alimony, and dividing up of the retirement accounts may still be pending, and there can be little left to divide in a second divorce.

Postnuptial agreements are similar to prenuptial agreements, but are entered into after a marriage. Postnups can cover everything from how to divide financial assets in divorce to limits on partners’ weight gain – just as prenups can.

Prenuptial agreements and Postnuptial agreements can be extremely important if you are thinking of marrying. They are not just for the ultra-rich, but are an important part of every healthy marriage decision.

The Wall Street Journal article is here. Thanks to Thomas Sasser for the pointer.

Divorce Tips: After the Case is Over

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Monday, March 14, 2016.

Forbes magazine has an article about some important things to immediately implement your marital settlement agreement to make it work.

I’ve written about practical tips for divorce before. Consider that once the lawyers are gone, all you have to show is a piece of paper. Putting that final judgment aside could be a mistake.

There are some immediate steps to take to ensure your interests are protected – and your financial documents reflect your new marital status.

As Forbes magazine asked: What should you change? In two words, almost everything.

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

Trusts

Powers of Attorney (property, healthcare, HIPAA, etc)

Will

Life insurance policies

Retirement accounts

What can happen if you don’t?

One example is common. If your ex-spouse remains the beneficiary of your life insurance policy and you pass away, the proceeds will go to your ex-spouse instead your children. That may be what you intend, but probably not.

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

In one Florida Supreme Court case, a life insurer sued to determine whether a former wife or the former husband’s sister was entitled to proceeds of his life insurance policy. The Florida Supreme Court held that the former wife of the insured remained primary beneficiary on his life insurance policy.

Also, consider your retirement accounts. After a divorce, you may revise your Will to reflect your desire that your 401(k) goes to your children, but if your wife remains the beneficiary of the plan, she will receive those funds.

Retirement plan designations can trump estate plan stipulations. The same is true for life insurance; proceeds will go to the named beneficiaries of those policies and not to persons named in a Will or other estate plan document.

A divorce judgment is legally binding. If, as a part of your divorce, you agreed that your ex-spouse would remain the beneficiary of a life insurance policy, don’t change the beneficiary designation on the policy itself. But, if that was not your intention, and the agreement is clear, unless you implement your marital settlement agreement, you could be in for a surprise.

The Forbes magazine article is here.

Collaborative Divorce: Florida Law Update

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Agreements on Thursday, March 10, 2016.

If you wish you could collaborate to reach agreement in parenting and financial issues, now you can. Florida just passed the Collaborative Law Bill. What’s the collaborative process all about?

I’ve written extensively on all types of alternatives to court to end your divorce and paternity disputes. The Collaborative Law Process is a voluntary way to resolve your case by agreement – and without the threat of litigation.

It starts when both sides and their lawyers sign a “collaborative participation agreement,” committing to a cooperative process.

The lawyers must withdraw if the process fails, so lawyers are motivated to resolve your case. It also costs less, takes less time, causes less stress, opens up new possibilities and should be considered by every couple separating.

Last week, the Florida Legislature passed the Collaborative Law Bill. The bill created Florida’s new Collaborative Law Process Act. The Act is based on the Uniform Collaborative Law Rules, which were created by the by the Uniform Law Commission in 2009.

The rules have already been adopted in 12 states, the District of Columbia and three sections of the American Bar Association. Passage of the Collaborative Law Bill puts Florida at the forefront of family law again.

The new law will provide much needed law for beginning, concluding, and terminating a collaborative law process. It also provides statutory privileges and confidentiality of communications to facilitate the process.

The collaborative law movement started in 1990. Today, collaborative law lawyers like myself are helping resolve disputes in every state of the United States, and in every English-speaking country.

Under the new law, the following issues are subject to resolution through the collaborative law process:

-Marriage, divorce, dissolution, annulment, and marital property distribution;

-Child custody, visitation, parenting plans, and parenting time;

-Alimony, maintenance, child support;

-Parental relocation with a child;

-Premarital, marital, and post-marital agreements; and

-Paternity.

In the collaborative process, the spouses and lawyers meet in a series of sessions at one location which is attended, if necessary, by a forensic accountant and mental health professional who are mutually chosen by the lawyers.

Everyone is tasked with discussing a wide range of possible resolutions for both parties; much more than are ever available in litigation.

Because you are designing your own solution, parties to the collaborative process are more pleased with the results and future compliance than those who have to litigate.

Collaborative Law has been available in Florida for years, and now it will be protected by statute. The Effective Date of the new law will be July 1, 2016, but you can start your Collaborative case right now.