Tag: divorce lawyer

Straight Outta Court

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Dr Dre is wondering if his prenup will get him straight outta court. He announced that he and his wife Nicole Young are getting divorced after 24-years of marriage. Young filed for divorce from Dre, whose real name is Andre Romelle Young, citing irreconcilable differences. One of the interesting issues is whether Young signed a prenuptial agreement.

Compton

Straight Outta Compton

The couple, who married in May 1996, share two children together, son Truice, 23, and daughter Truly, 19. Dre also has four children from previous relationships, daughters Tyra Young and La Tanya Danielle Young, and sons Marcel and Curtis.

The music mogul, 55, and Young, 50, announced their split after 24 years of marriage in June, and Dre revealed that the couple, who wed in 1996, does have a prenuptial agreement, despite initial reports that indicated the two do not. Young is asking for spousal support and a division of property.

In 2019, Forbes estimated that Dre’s net worth was $800m, making him the second-wealthiest hip hop artist in the world that year. The rapper’s fortune is in part due to the success of his headphone line, Beats by Dre, which was acquired by Apple in 2014 for $3bn.

According to TMZ, Dre, who listed the date of their separation as March 27, 2020, and cited irreconcilable differences as the reason for their split, agreed to pay spousal support but says any distribution of property should be controlled by their prenuptial agreement. Young’s petition did not mention a prenup and the outlet reported that she has claimed she never signed one.

Florida Prenuptial Agreements

I’ve written about prenuptial agreements before. Prenuptial agreements are about more than just protecting yourself after your 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 for those who boldly go into fourth 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. Many couples divorcing would prefer not to spend too much time litigating in family court.

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.

There are many problems with prenuptial agreements too. If a prenuptial agreement includes any provisions that violate the law or public policy, it may automatically be deemed invalid.

Additionally, a prenuptial agreement cannot waive child support, and can’t set an amount for child support. Courts have plenary power over support issues, so child support amounts are determined by courts based on our child support guidelines.

Also, a premarital agreement may not be enforceable in a family court case, for instance, if it was not signed voluntarily; or if it was the product of fraud, duress, coercion, or overreaching.

Deez Prenups

The 55-year-old, who started his career as a member of the rap group NWA, also founded the record label Aftermath Entertainment, which previously signed Eminem and 50 Cent.

In 2015, Dre apologized to “the women I’ve hurt” following allegations of physical abuse against women, telling The New York Times:

Twenty-five years ago I was a young man drinking too much and in over my head with no real structure in my life. However, none of this is an excuse for what I did. I’ve been married for 19 years and every day I’m working to be a better man for my family, seeking guidance along the way. I’m doing everything I can so I never resemble that man again.

This divorce, given the stakes and the profiles of the parties, is expected to be completed relatively quickly and privately. Generally, anything he acquired before marriage would be his separate property, with or without a prenuptial agreement. Dre sold Beats during the marriage so there may not be a separate, or non-marital, component to it – meaning there is a very large sum of money that is at stake as marital property.

Young is going to get half of what he’s worth very likely, but while Dr. Dre has claimed he is willing to pay spousal support, Young probably won’t need spousal support after the marital estate is divided. She asked for temporary support and she may be able to get hundreds of thousands of dollars a month before the case is resolved. The couple was last seen together in public in February at the Tom Ford fashion show.

The Independent article is here.

 

Enforcing a Gusher of an Equitable Distribution Award

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After his divorce, Todd Kozel, a former oil executive, was ordered by a family court to transfer 23 million shares from his oil company to his wife as equitable distribution. When he didn’t, a $38 million judgment was entered against him. Why was that enforcement order overturned?

Equitable Distribution Oil

Striking Oil

Todd and Ashley married in 1992, and she filed for divorce in 2010. Todd is the chief executive officer of Gulf Keystone Petroleum, Ltd., an oil and gas exploration company.

When the parties divorced, much of their shared wealth consisted of Gulf Keystone stock, which is publicly traded in London. The parties settled after he agreed to transfer Gulf Keystone stock to Ashley as equitable distribution.

Under their Settlement Agreement, the husband was obligated to transfer twenty-three million shares of Gulf Keystone stock to his wife as equitable distribution on or before January 27, 2012. Upon delivery, the former wife would then be free to sell her stock to anyone at any time.

But Todd didn’t deliver his twenty-three-million shares by January 27, 2012. Instead, he transferred the stock to her in four batches at later dates: (1) 2,034,447 shares on January 30, 2012; (2) 3,798,886 shares on February 3, 2012; (3) 5,666,667 shares on February 21, 2012; and (4) 11,600,000 shares on March 1, 2012.

Invoking the trial court’s continuing jurisdiction to enforce the agreement, Ashley filed papers with the family court. Although her filings were styled as petitions to enforce the agreement, they alleged what amounted to claims for money damages for alleged breaches of their agreement.

After granting partial summary judgment on liability and holding a trial on damages, the family court found Todd in breach and awarded her: $34,611,702 as damages for his failure to deliver the stock on time and another $3,850,500 as damages for the breach to provide tax information.

Florida Equitable Distribution

Why was Ashley awarded so much of Todd’s Gulf Keystone stock? I have written about equitable distribution before. Florida is an equitable distribution state when it comes to dividing business assets in divorce.

In a proceeding for dissolution of marriage, in addition to all other remedies available to a court to do equity between the parties, a court must set apart to each spouse that spouse’s non-marital assets and liabilities.

When distributing the marital assets between spouses, a family court must begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution based on all relevant factors.

When the Oil Runs Out

While Todd was in default for his failure to timely deliver the Gulf Keystone stock, he made all of the additional equitable distribution payments required. On November 28, 2012 — eight months after the final transfer of stock — Ashley argued that Todd’s breach of the agreement caused her to suffer substantial damages because it denied her an opportunity to sell the stock at a time when market conditions were favorable.

But Todd argued that a family court lacks jurisdiction to consider Ashley’s claim because what she was asking for amounted to a claim for general damages for breach of contract.

So, Ashley amended her petition, styling it as one to “enforce” the agreement. She alleged that the court had jurisdiction to enforce the agreement through an award of damages for losses that she allegedly incurred as a result of the failure to deliver the stock timely.

The family judge awarded her $34,611,702 and another for the tax basis dispute $3,850,500, to be placed in escrow (presumably pending the outcome of a refund request to the IRS).

The question in a case like this is whether and to what extent a family court’s continuing jurisdiction to enforce a final judgment extends to claims for money damages for breaches of a settlement agreement.

When a court orders compliance with the terms of a settlement agreement – when it requires a party to perform an obligation in the agreement — it is engaged in proper post-judgment enforcement over which it has continuing jurisdiction. But when a court awards damages as a substitute for a party’s performance, it is not engaging in legitimate post-judgment enforcement but a separate claim for breach.

The former wife sought and the family court awarded general, benefit-of-the-bargain damages for the breach of the agreement that was not specified in the agreement. In reversing the judgement, the appellate court ruled that “couching these remedies as “enforcement” of the [agreement] does not change what their substance is: general damages for breach.”

The opinion is here.

 

Happy Thanksgiving

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The divorce and family law offices of Ronald H. Kauffman, P.A. will close at 2:00 PM on Wednesday, November 27 for the Thanksgiving holiday. We will re-open at 9:00 AM on Monday, December 2, 2019. We wish you and your family a safe and happy Thanksgiving holiday.

Happy Thanksgiving

Before Thanksgiving’s arrival is the time to resolve child custody and timesharing problems so you can enjoy your turkey dinner with minimum stress for you and your children. Below are suggestions to make your Thanksgiving visitation issues a little easier:

Alternate. Some families alternate Thanksgiving every other year. If you get the kids for Thanksgiving 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 Thanksgiving 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 Thanksgiving dinner impossible. Set aside your differences until after the holiday season.

Pick your battles. Thanksgiving may 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 Thanksgiving should be about great food and family 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.

Thanksgiving can be stressful. But the weather has cooled and the kids are on vacation. Try to make the holidays the best time of year.

 

 

Five Ways to Improve Your Divorce

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While your performance never faltered before, after you enter into a divorce, you can become overwhelmed by the competition for your attention. Forbes magazine reports on five way to improve your divorce and maintain your productivity.

Improve Divorce

1. Build an emotional support network outside of the office. From both an emotional and a practical standpoint, keeping conversations about your divorce out of the workplace is smart. Of course, you need to talk with those involved in collecting the requisite documents—an HR representative, for example—but those discussions should be factual in nature. Talking about the personal and emotional aspects of your divorce should be reserved for close friends or family members outside of work.

Don’t neglect your need for emotional comfort during this time. Divorce is stressful. In addition to having a strong support network, make sure you hire a lawyer who makes you feel empowered and comfortable, who helps you understand the divorce process and is accessible when you need counsel.

2. Be cooperative and realistic in your efforts to work with the other side. If you or your spouse take positions in your divorce that lead to additional court appearances, your productivity will be affected, because those appearances will take you away from your office. In fact, even preparing the paperwork with your lawyer can take you away from your job for hours at a time. You can minimize this time away by approaching your divorce pragmatically, organizing as much as you can in your off-hours, and being as straightforward and transparent as you can be in terms of the documents and information you produce. If everything becomes a tug of war, with subpoenas being issued and every aspect of the divorce litigated, you will be diverting precious time and energy from your career.

3. Allocate a certain amount of time each day to addressing divorce-related communications. As much as you might like to wait until you get home at night to handle divorce matters, reality sometimes dictates speedier replies. Divorce matters are generally handled during working hours, and if your lawyer has a question or information to share, your delayed response could mean a slowdown in the process. Set aside a block of time during the day when you can read and respond to related emails and place necessary phone calls. Keep a running list of to-do items and questions for your lawyer so that you can jot them down when they occur to you throughout the day and then put them out of your mind until later. Sending your lawyer just one comprehensive email a day with all of your questions and concerns will improve your productivity as well as your lawyer’s (which can also save you money!).

Florida Divorce

I’ve written on various divorce issues. In Florida, a divorce is called a “dissolution of marriage.” Florida is also 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.

Although no-fault divorce is Florida law, the process of going through a divorce can be grueling, and will eat into your productive time. Part of the stress comes from the fact that the divorce process can be very emotional and traumatic for couples as well as their kids.

4. Have separate work and personal email accounts. This is, of course, good advice whether you’re going through a divorce or not. Nothing can distract you faster than seeing personal emails popping into your inbox all day long. In fact, you may even want to create a new account specifically dedicated to divorce correspondence. Then, when “Divorce Management” pops up on your calendar, you can get straight to all divorce-related matters and take care of them during your allotted time slot.

Likewise, keep any divorce-related documents in their own secure folder on your computer so you can access them at a moment’s notice rather than having to spend time hunting them down.

5. Keep your lawyer apprised of any blackout dates on your calendar. If you travel for work or have certain must-attend meetings or events, make sure your lawyer is aware of these as soon as they are scheduled so you can avoid conflicts with any necessary court appearances or other important meetings related to your divorce. Being unable to meet key business obligations can not only set back your productivity but also damage your standing in the eyes of clients, your manager or your peers.

The Forbes article is here.

 

Divorce and Infidelity in Congress

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Rep. Ilhan Omar is divorcing her husband. The Minnesota Democrat filed for divorce from Ahmed Hirsi last week. This news follows earlier reports that the Representative’s political consultant is facing his own divorce because of his infidelity with Rep. Omar.

Sex and No Fault Divorce

The Candidate

Omar and Hirsi became engaged in 2002 but never legally married. The pair had two children together before separating in 2008. Omar married Ahmed Nur Said Elmi in 2009 and later said the two obtained a divorce in their Muslim faith tradition — albeit not a legal one — in 2011.

Beth Mynett, wife of Omar’s political consultant, alleged in court documents that her husband, Tim Mynett, confessed his “devastating and shocking declaration of love” for Omar this past April, which led to the divorce.

Tim Mynett’s company, the political consulting firm E Street Group, has worked with Omar’s campaign. Federal campaign finance records show that Omar’s campaign paid Tim Mynett $7,000 in July 2018 and E Street Group roughly $222,000 from 2018 to 2019.

The E Street Group and lawyers issue a statement saying “E Street Group does not comment on the personal life of either our staff or clients. As with all marriages, this is intensely personal and a difficult time for their family.

Florida Divorce and Infidelity

I’ve written about the impact of cheating and divorce before. In practical terms, adultery as a crime poses very little threat of prosecution, but it could have other consequences.

Cheating on your spouse can even be grounds for losing your job. This is particularly true in the military, where adultery has a maximum punishment of a dishonorable discharge.

Chapter 61 discusses the “the moral fitness of the parents” as one of the factors the court considers in determining the best interests of a child. Adultery may impact the division of property. Proof that one spouse intentionally wasted marital assets could be seen as dissipation of assets. Adultery of either spouse could be a factor in determining the amount of alimony, if any, to be awarded.

There are times when evidence of adultery comes into evidence. Most often it doesn’t. In 2003, the U.S. Supreme Court ruled in Lawrence v. Texas that sexual activity between consenting adults is legal.

Ms. Omar Goes to Washington

Omar and Hirsi reconciled after that and had a third child together in 2012. The lawmaker officially filed to divorce Elmi in 2017, and legally married Hirsi in 2018.

Earlier this year, a Minnesota campaign finance board’s investigation found that the 38-year-old freshman congresswoman and Hirsi filed joint tax returns in 2014 and 2015, while she was still legally married to Elmi.

“For years, Ilhan and Ahmed have been the object of speculation and innuendo from political opponents and the media. This has taken a significant toll on Ilhan, Ahmed, and their three children.”

The divorce documents allege there has been an irretrievable breakdown of the marriage relationship. Omar said neither partner is seeking an order of protection and she asks the court to grant them “joint legal and physical custody” of their three minor children. She also asked the court to determine child support to “serve the minor children’s best interest” and award the “marital property” as the court “may deem just and equitable.”

The Hill article is here.

 

American Academy of Matrimonial Lawyers

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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.

 

5 Essential Divorce Tips

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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.

 

Dividing the Iron Throne: Divorce and Streaming Services

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With the start of the final season of Game of Thrones, everyone wants to “borrow” passwords to HBO. Who will take the Iron Throne is almost as tough a question as how a divorce court handles streaming services like HBO, Netflix, Hulu and others.

Game of Groans

As the Wall Street Journal recently reported, when Aimee Custis and Kian McKellar broke up after four years, the couple divvied up their books, photography equipment and cookware.

Left undivided was their Netflix, Hulu and Pandora accounts. They didn’t discuss separating the subscriptions when one of them moved out of their shared Washington, D.C., apartment. They just continued paying their respective bills—hers, Hulu, and his, Netflix and Pandora.

Two-and-a-half years later, they still share those services. In the so-called sharing economy, even when love is no longer mutual, bills for entertainment and communication often are.

Streaming music and video services that permit multiple users, plus the proliferation of family cellphone plans in recent years that are cheaper than individual accounts, have created ties that bind long after a breakup or even divorce.

Florida Divorce and Streaming Services

I’ve written about property division before. Property division, or equitable distribution as it is called in Florida, is governed by statute and case law.

Generally, courts set apart to each spouse their non-marital assets and debts, and then distribute the marital assets and debts between the parties.

Marital assets and liabilities include, in part, assets acquired and liabilities incurred during the marriage, individually by either spouse or jointly by them.

Streaming services, such as HBO, Netflix and Hulu however are not marital assets per se. They are merely expenses, much like your cell phone plan. Cell phone plans typically require a contract for two years and you can face fees if you break your contract early.

There are not many options: break the plan and pay the fees and penalty or coming to an agreement with your spouse about who pays for what during the remainder of the contract.

No Battle for Winterfell?

Do you have to leave your Netflix and HBO access with your soon to be ex? No always. Interestingly, not everyone going through divorce and separation get dropped from the account.

Sometimes people do not realize that their password is shared and their spouse is still watching. But other times people purposefully keep their spouse or ex on the account because sentimentality intrudes.

A consultant in his 30s says he was puzzled by his parents’ decision to pay for his brother’s ex-girlfriend’s cellphone plan long after their breakup. The $30-per-month cost was minimal, they told him, and their memories of her were fond.

The Wall Street Journal article is here (subscription required).

Divorce Infidelity and Gender

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With one in five British adults admitting to cheating on their partners, monogamy is clearly not as straightforward a concept for some as it is for others. Could the impact of an affair differ based on your sex? Divorce, infidelity and gender is the topic of a recent report from England.

divorce infidelity and gender

Seven Year Itch

As the Independent reports, divorce, infidelity and gender studies have revealed that men may have a greater tendency than women to go ahead with or contemplate committing adultery in heterosexual relationships.

In fact, recent research has shown that they can be less forgiving than their female counterparts when considering divorce on account of infidelity. New research conducted into behavioral patterns that can lead to divorce, coming to illuminating conclusions about the impact of adulterous conduct on marital bliss.

According to the findings, almost a third of divorces occur when men and women have forgiven past wrongdoings but have finally “run out of patience.”

This bad behavior refers to a number of issues, including adultery, financial problems and substance abuse. Interestingly, some people are finding that women are more likely than men to try to salvage a broken marriage, despite their partner’s unfaithfulness.

Florida Divorce and Infidelity

I’ve written about divorce infidelity and gender issues before, but not specifically how men and women differ in the impact of an affair. One reason is that in Florida, we have no-fault divorce laws. No-fault divorce 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.

Indecent Proposal

Adultery can be the cause of a divorce, but can divorce, infidelity and gender 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.

When is adultery relevant in divorce in Florida? Although we are a no-fault state, there is still a statutory basis for infidelity to be an issue in your divorce proceedings, but not as a reason for divorce.

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.

Unfaithful

According to the Independent, researchers were surprised time and again by the ability of some men and women to almost turn a blind eye to their partner’s misbehavior.

However, the cases show how many people in such a situation find their patience ultimately exhausted, usually when the misconduct becomes too difficult for themselves and others to ignore.

“In some cases, that means being told by friends and relatives about extra-marital affairs which they were already aware of or discovering the true extent of a spouse’s financial difficulties and learning that they impact on a business as well as at home.”

On the other hand, the odds of men tolerating their wives’ dishonesty are far lower than the other way around.

Fatal Attraction

In Britain last year, the Office of National Statistics stated that the number of women petitioning for divorce against their husbands as a consequence of their spouses’ misconduct had decreased by 43 percent since 1996.

Meanwhile the number of men divorcing their wives for the same reason had increased by approximately by a third.

Some speculate that the main reason why men and women are willing to give their marriages another go is due to the negative effect separating will have on their children.

Divorce, infidelity and gender studies are surprising people in how different genders react. Arguably the principal factor in staying together is a desire to remain married for the sake of their children. Once those children have left home, a number of unhappy parents decide to take advantage of what they regard as an opportunity to leave a troubled marriage.

The Independent article is here.

 

Set Up a Divorce Plan

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USA Today reports that few people marry and then plan for divorce or death. But based on recent statistics, that is precisely what we should do. What are some things you should do to set up a divorce plan?

Set Up a Divorce Plan

The Statistics

Consider this: The average age of a widow in the U.S. is 59 and women divorce for the first time at age 30 (on average). Add to those statistics the fact that men tend to die five years before their spouses (76 for men versus 81 for women).

Most people have heard the statistic that “50 percent of marriages end in divorce.” That statistic seems to have originated in the 1980’s. Today, it is thought approximately 42-45% of marriages in the United States end in divorce (this does not include legal separations).

But when you break that down by number of marriages, you get some interesting additional facts. For example, while 42-45% percent of first marriages end in divorce, for second marriages around 60% end in divorce. Third marriages? Roughly 73% of third marriages end in divorce.

Planning

I’ve written about things to consider when planning for divorce before. The divorce statistics mentioned above really call for you to set up a divorce plan. A divorce plan should reflect goals, and the USA Today article has some excellent things to consider.

Get a planner

While most people run to a marriage counselor, what you may really need is a financial planner. Research shows that when the “money spouse” dies (typically the male partner), the “non-money spouse” ends up firing her investment manager over two-thirds of the time.

Review your Documents

Review your trust agreement every few years; if you don’t have a trust, get one. You may quickly realize your trust is outdated and go through a costly revision at just the time when you don’t need the added headache and hassle.

Keep 401(k) and IRA beneficiary forms. The bank may lose your beneficiary forms through the passage of time and through mergers and acquisitions.

Use a virtual binder

Consolidate your financial life on an aggregator.  Think of an aggregator as a virtual binder with a vault. All of your assets and liabilities feed into this software, and you have a real-time picture of your net worth and income from all sources.

Get a Postnup

These days, the postnup has become more important than ever. People are marrying when they are older, and better informed about the implications of marriage. Many people have married before. Because the divorce statistics for second and third marriages shown above are so high, more people are looking to sign postnuptial agreements.

The USA Today article on how to set up a divorce plan is here.