Tag: Equitable Distribution

Divorce and the Engagement Ring

Posted by Ron Kauffman on

Kim Kardashian reportedly refused to give back her engagement ring to estranged husband, former basketball player, Kris Humphries. Is a spouse obligated to return an engagement ring after a divorce has been filed – whether the ring is worth $2mm or not?

engagement ring

Keeping Up with the Kardashians

A source close to the Kardashian situation reports that her husband Kris contends that the marriage was a total sham and that Kim only wed him for publicity so therefore she has no right to keep such an expensive gift.

This is the latest battle in the drawn-out Kardashian-Humphries divorce proceedings. The reality star filed for divorce from Humphries in October 2011 after just 72-days of marriage. He responded a month later by filing for an annulment on the basis of fraud and a legal separation.

Florida Engagement Rings

I’ve written about some of the history and law about engagement rings before. Until the 1930s, a woman jilted by her fiancé could sue for financial compensation for “damage” to her reputation under what was known as the “Breach of Promise to Marry” action.

As courts began to abolish such actions, diamond ring sales rose in response to a need for a symbol of financial commitment from the groom. Florida abolished the appropriately termed “heart balm statutes”. Heart balm statutes were laws allowing couples to sue each other to recover money for the alienation of affections and breaches of contract to marry.

As one court poetically noted:

[A] gift given by a man to a woman on condition that she embark on the sea of matrimony with him is no different from a gift based on the condition that the donee sail on any other sea. If, after receiving the provisional gift, the donee refuses to leave the harbor – if the anchor of contractual performance sticks in the sands of irresolution and procrastination – the gift must be restored to the donor. A fortiori would this be true when the donee not only refuses to sail with the donor, but, on the contrary, walks up the gangplank of another ship arm in arm with the donor’s rival?

After an engagement ring is given, and if the couple doesn’t marry, in New York the law deems a broken engagement as no one’s fault. Accordingly, the ring should be given back to the giver, with few exceptions. Most states have adopted that approach.

This is true in Florida. Lawsuits to recover an engagement ring by disappointed donors usually are resolved by courts looking to see if the engagement was terminated by the donee or by mutual consent of the parties. The rationale is that rings are given on the implied condition that a marriage ensue.

Once a marriage proposal is extended and accepted — once the promise is made — no matter what day of the year, that ring is no longer considered a gift. It’s a contract to enter into marriage.

The general rule in Florida is that an engagement ring given before the marriage, becomes a non-marital gift if the marriage is completed. If so, the ring becomes the non-marital property of the Wife.

If the engagement ring is viewed by the court as a non-marital asset, it is not subject to equitable distribution in divorce proceedings, and the spouse keeps it as their own.

Reality TV

Relying on real attorneys and not Judge Judy, both sides of the Kardashian case have accused each other in court and in the media of deliberately slowing down the divorce process, which has lasted five times longer than their marriage.

Recently, Kardashian’s attorney told the judge that her client is “handcuffed to Mr. Humphries” because his team is still not ready for trial. The estranged couple is set to return to court in mid-February to determine a trial date.

The Huffington Post article is here.

 

International Divorce Problems

Posted by Ron Kauffman on

The housewife in the middle of one of Britain’s biggest international divorce cases has finally succeeded in serving her billionaire ex-husband legal papers after an attempt to serve them via the messaging app WhatsApp failed, a British court has ruled.

international divorce

Russian Meddling

Tatiana Akhmedova, who is in her 40s, was awarded a 41.5 per cent share of Russian businessman Farkhad Akhmedov’s estate by a British divorce court judge in December 2016. His fortune is estimated to be worth more than £1bn and Mr Justice Haddon-Cave said Ms Akhmedova, who is British, should walk away with £453m.

However, Mrs. Justice Gwynneth Knowles, sitting in the High Court’s family division, said Mr Akhmedov, 64, had “regrettably” not “voluntarily paid a penny” of the money owed and that around £5m had been paid after enforcement.

The judge said she had been trying to serve the application by WhatsApp. That had not worked, ‘probably’ because Mr Akhmedov had blocked the number. An attempt at delivering documents to Mr Akhmedov’s office in Moscow had been ‘refused’.

Mrs. Justice Gwynneth Knowles says Ms Akhmedova has succeeded in serving legal papers relating to an application for asset freezing orders on Mr Akhmedov.

The judge heard that Farkhad Akhmedov had not voluntarily paid a penny to his ex-wife. The judge heard that Farkhad Akhmedov had not voluntarily paid a penny to his ex-wife. Mr Justice Haddon-Cave has ruled that Mr Akhmedov’s £346million yacht, the MV Luna, should be transferred into her name.

International Divorce Issues

Who sues whom, how do you sue for divorce, and in what country are problems in an international divorce? The answers are more difficult than people think. A British divorce might give more money because British courts can disregard prenuptial agreements, and the cost of living is high in London.

In France, things could be very different. Adultery can be penalized, but in the typical French divorce, any alimony could be less and for eight years at most; and prenuptial agreements are binding.

However, in Florida, the outcome could be different still. Under Florida law, alimony is constantly under threat of a major revision by the legislature, and child support is governed by a formula. Courts may award attorneys’ fees, and prenuptial agreements are generally enforceable.

Rules about children can differ too. I’ve written on international divorces, especially as they relate to child custody issues and The Hague Convention on abduction.

The Hague Abduction Convention is a multilateral treaty developed by The Hague Conference on Private International Law to provide for the prompt return of a child internationally abducted by a parent from one-member country to another.

There are three essential elements to every Hague Convention case:

  1. The child must be under the age of 16 years of age;
  2. The wrongful removal must be a violation of the left behind parent’s “rights of custody;”
  3. The left behind parent’s rights of custody “were actually being exercised or would have been exercised but for the removal.”

So, if a child under the age of sixteen has been wrongfully removed, the child must be promptly returned to the child’s country of habitual residence, unless certain exceptions apply. Even signatory countries may be bad at abiding by the convention, especially when it means enforcing the return of children to a parent alleged to have been abusive.

Hiding assets is a problem in every divorce, especially the British case. The problem of discovery of hidden wealth is even bigger in an international divorce because multiple countries, and multiple rules on discovery, can be involved. The problems in an international divorce are more complicated because hiding assets from a spouse is much easier in some countries than in others.

Florida, at one extreme, requires complete disclosure of assets and liabilities. In fact, in Florida certain financial disclosure is mandatory. At the other extreme, are countries which require very little disclosure from people going through divorce.

Choosing possible countries to file your divorce in can be construed as “forum shopping”. The European Union introduced a reform called Brussels II, which prevents “forum shopping”, with a rule that the first court to be approached decides the divorce. But the stakes are high: ending up in the wrong legal system, or with the wrong approach, may mean not just poverty but misery.

Back in Britain

Ms Akhmedova had begun legal action in Britain and abroad, taking steps to freeze his assets. Analyzing the latest stage of litigation, a judge said Ms Akhmedova has at last succeeded in serving legal papers to her ex-husband in relation to an application to freeze assets.

But the judge said the papers were successfully served on August 22 after an email was sent to Mr Akhmedov’s personal email address without a bounce back. The judge has given details of the hearing in a ruling summarizing the latest developments in the case. Neither of the respondents attended the hearing.

A spokesman for Mr Akhmedov has said his ex-wife’s attempts to seize his assets were “as misguided as the original English High Court” ruling.

The Telegraph article is here.

 

Divorce and Financial Infidelity

Posted by Ron Kauffman on

One in five people in a relationship say their partner is financially irresponsible, and that they’re 10 times more likely to divorce for financial reasons, according to a new survey released from insurance comparison website Policygenius. Will running up excessive debts and other forms of financial infidelity be an issue in your divorce?

Divorce and financial infidelity

Financial Survey

The survey polled 2,005 adults in relationships and asked them questions like “What financial information do you and your partner know about each other?” and how they deal with money as a couple. The findings revealed that only 50% of people know their partner’s credit score, and yet 78% of those surveyed manage joint finances.

“If you’re at all doubtful about transparency, get a credit check. If they don’t give you permission to get a credit check, you’re in trouble. Know everything about your own finances, your mate’s finances and have a plan for how you’re going to work together to budget effectively and save for the future.”

The reality is that most couples openly commit financial infidelity: 12% of people in a relationship have hidden a purchase from their partner; another 20% say they’d spend $500 without telling their significant other and what’s worse, 16% said they don’t know anything about their partner’s money situation, according to the survey.

Florida Divorce Debts

I have written about divorce debts and other forms of financial infidelity before. In Florida, liabilities such as credit card debts – even if it happened without your knowledge – may be treated as any other kind of debt.

Generally, in divorce proceedings the court has to set apart to each spouse that spouse’s nonmarital assets and debts, and in distributing the marital assets and liabilities between spouses, courts have to begin with the premise that the distribution should be equal, unless there is a justification for an unequal distribution.

Some of the relevant factors for justifying an unequal distribution include the economic circumstances of the parties, the duration of the marriage and the intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within 2 years prior to the filing of the petition.

A common complaint in divorce is that someone will steal or destroy assets once they learn that a divorce has been filed, or run up huge credit card bills. This could be found to be dissipation or waste.

Other forms of dissipation include:

  • Incurring major gambling losses;
  • Excessive spending on alcohol or drugs;
  • Conveying marital property to family members or friends below cost with the intent to reacquire the undervalued asset post-divorce;
  • Destroying big-ticket personal property; and
  • sustaining losses concerning a sham investment.

If a judge determines there was an intentional dissipation, waste, depletion, or destruction of marital assets, the court can divide the remaining marital property and credit or debit accordingly.

Husband and Wife Money Summits

Financial infidelity and fights about them are increasingly a pain point in relationships, particularly when one person is tight with money and the other spends more liberally. People are twice as likely to describe themselves as savers and their partners as spenders, according to separate data from SunTrust Bank.

Because of these woes, some couples are enrolling in financial therapy to get on the same page about finances. Money summits have sprouted up around the country to help couples talk about daily budgets, divvying up financial responsibilities, debt and financial goals, like saving up for a baby, a new home, retirement or for vacation.

There are little things couples can do every day to maintain a financially healthy relationship, whether it’s carving out hour-long money dates to talk openly about what you’ve spent that week and why, or to plan ahead for future expenses.

“Decide in advance how you will handle major purchase decisions together,” said Brittney Castro, a certified financial planner. “For example, some couples agree to discuss every purchase over a certain amount of money. Hurt feelings may arise from the surprise of an expenditure, rather than simply that the money was spent,”

The Fox Business article is here.

 

Dividing the Iron Throne: Divorce and Streaming Services

Posted by Ron Kauffman on

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).

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.

 

Can your Spouse Secretly Sell your House?

Posted by Ron Kauffman on

Real Housewives of New Jersey star Danielle Staub is claiming her estranged husband Marty Caffrey listed their Englewood, N.J. home for sale without telling her. Can that happen in an equitable distribution state?

equitable distribution

Real Listing?

According to People:

“Danielle did not know her home, where she lives, was listed for sale until she saw a story about it online,” the rep says. “This is yet another example of the blatant disrespect and emotional abuse she has endured in this relationship.”

Caffrey, 66, filed for divorce from the reality star in August—just four months after their wedding, and Staub, 56, has been vocal about how hurt she was by how public their split was.

In July, Caffrey posted a negative rant about Staub on social media. The pair took out restraining orders against each other that same month following a domestic dispute at the New Jersey home that is now on the market. The restraining orders were both later dropped.

The six-bedroom, seven-bathroom house features a gourmet kitchen, high ceilings, a media room, and a sauna. The property is listed for $2.195 million with Frances Aaron and Miriam Finkel of Prominent Properties Sotheby’s International Realty.

When asked about the sale of their home, Caffrey tells People, “Danielle’s version is untrue and other than that I have no comment.”

Real Equitable Distribution

I’ve written about the equitable distribution of houses before. New Jersey, like Florida, is an equitable distribution state. California, and many other western states, are community property states.

In Florida, in every divorce the family court will set apart to each spouse that spouse’s nonmarital assets and liabilities, and in distributing the marital assets and liabilities between the parties, the court must begin with the premise that the distribution should be equal.

All real property held by the parties as tenants by the entireties, whether acquired prior to or during the marriage, is presumed to be a marital asset in Florida. If a spouse makes a claim to the contrary, the burden of proof shall be on the party asserting the claim that the property is nonmarital.

It is unclear whether Staub and Caffrey have joint title to the New Jersey house, or it is titled in one of their names alone, or even a holding company. Generally, it’s a good idea to have all title owners sign a contract, or it may not be enforceable against the owner who did not sign.

Real Troubles

Back in New Jersey, although Staub claims she was unaware of her home being put on the market, she recently told People that she considers herself a “warrior,” and her experience with this divorce has been no different.

Prior to their public problems, the two had trouble agreeing over many things in their relationship, Staub said. Tense dynamics with their blended family (Caffrey has three adult children from a previous relationship) also came into play.

“He doesn’t like me and he doesn’t like my children,” Staub claimed. “My kids have never been anything but respectful and lovely towards him even though he hasn’t been the same towards their mom.

Caffrey, in a statement to People at the time, said, “This is not my world nor do I have any further interest in it. These are manufactured celebrities in manufactured lives who manufacture their own truths. I look forward to getting back to my reality among real people. My loving family and vast amount of friends.”

The People article is here.

 

Divorce Fraud: Student Loans

Posted by Ron Kauffman on

This is kind of scary for Halloween. Market Watch has an interesting article about a husband who paid off his wife’s student loans during their very short marriage, and his wife thanked him by filing for divorce after a mere 24 months of marriage. Was the husband the victim of divorce fraud, and tricked into paying off his wife’s student loans?

divorce fraud

Tricked or Treated?

As the Market Watch article reports: “[b]efore I married my wife two years ago, she had huge amounts of debt to her name, including large amounts of student loans. After we married, we diligently almost paid everything off, helped by my salary being three times that of my wife.”

She recently asked for a divorce, saying she was taking the house and my retirement. My question is: Does the fact we paid off her debts she held before get spread evenly? Had I not paid all of her debts our net worth would be near the same with a better outcome for me.

We’ve only been married a few years, and frankly I can’t help feeling taken advantage of. The only advice I can find discusses whose responsibility the student loans would be, but now it just seems that she got me to pay all of her debts, and got some new stuff, while I threw away years of my life.

Please tell me there’s hope.

Florida Divorce and Student Loans

Is there hope for Market Watch’s husband?

I’ve written about student loans in the past. Florida is an equitable distribution state. The initial premise behind an equitable distribution of marital assets and liabilities – such as student loans – is equal distribution.

However, when proper justification is shown, a family court judge may make an unequal distribution.  The burden is difficult. A distribution of marital debts, whether equal or unequal, must be supported by factual findings and based on substantial competent evidence. The rationale for the distribution also has to be disclosed by the judge.

As a general proposition, student loan debt incurred during the marriage is a marital liability. So, in the absence of findings supporting the unequal distribution of a student loan debt, marital student loan debts must be equitably distributed between the parties.

The fact that the husband will not receive any benefit from his ex-wife’s education because of the divorce is not a factor to be considered when allocating a marital debt for student loans.

In sum, absent some other justification for an unequal distribution, controlling case law in Florida will usually prohibit a family court judge from awarding student loan debt incurred during the marriage solely to one party or the other.

Out of Luck?

As Market Watch reports, divorce after two years is a tough break, “especially given all the help you gave your wife with her student debt. That’s a particularly unusual kind of debt, in that it’s virtually impossible to discharge.”

The article concludes by noting that “[t]he best thing you have going for you right now is your honest intentions going into this marriage and your (good) behavior throughout. Having examined all the details, the judge may not be able to say the same thing about your wife.

The Market Watch article is here.

 

Divorce and Student Loans

Posted by Ron Kauffman on

According to a recent survey, borrowers with student loans have been found to take on more debt, are more likely to divorce, and that just holding student loans can be a contributing factor in some divorces.

divorce student loans

Recent Study

Money problems are usually an indicator of divorce. Since student debt can constitute a major financial strain, it can impact a marriage. This new survey underscores the importance of minimizing your debt.

The survey showed that:

  • The average Class of 2017 graduate walked away with a diploma and $39,400 in debt; and
  • The 2017 graduate’s debt represents a 6% increase from the previous year; and
  • Americans owe $1.48 trillion in loans.

It’s clearly taking a toll – not just on finances – but on marriages. This new survey reveals that these loans could increase your likelihood of getting divorced. According to a new study, 58% of divorcees with student loans took on debt to help pay for attorney fees and other related costs during their divorce proceedings. Compare that with 48% percent of all divorcees who borrowed money to pay for a divorce.

Couples with student loan debt are more likely to delay divorce because of cost. More than a third of respondents with student loans (35%) delayed their divorce because they couldn’t afford it, compared with 24% of couples without student debt.

Florida Divorce and Student Loans

I’ve written about equitable distribution and divorce debt before. While the initial premise behind an equitable distribution of marital assets and liabilities is equal distribution, if there is a proper justification, a family court judge may make an unequal distribution.

As a general proposition, student loans incurred during the marriage are marital debts. And, unless there is a proper justification supporting an unequal distribution of student loans, they must be equitably distributed between the parties.

Sometimes people argue that a spouse won’t receive any benefit from the other spouse’s law school or medical school degree. However, the benefit of an education is not considered a factor the court should consider when allocating a marital debt for student loans.

Survey Says . . .

The survey also had some other sobering results:

  • 13% of respondents who had student loan debt going into their marriage claim that it eventually led to the end of their marriage.
  • Almost 7 in 10 divorcees have changed how they manage their money after their divorce.
  • 36% of borrowers with student loan report they lied to a partner about money.
  • Roughly one third respondents claimed a decreased sex drive because of their student loans.

Large debts and monthly payments can make it difficult to buy a home, save for retirement, or make it from paycheck to paycheck. Worse still, you’re probably stuck with your student loan whether you can afford it or not.

The Survey is here.

 

Today’s Property Division

Posted by Ron Kauffman on

According to People, former Today Show anchor, Matt Lauer, is finalizing his divorce with Annette Roque. The settlement is rumored to involve him paying his wife up to $20 million. The details of the property division however is unknown, but is a reminder that divorce property division laws in Florida recently changed in a big way.

Property Division

Good Morning Property Divisions

According to People, the couple, who wed 20 years ago in 1998, has agreed to share custody of their children. He is rumored to have a lot of guilt and wants to make sure Annette is taken care of.

Reportedly:

They seem happier and their family and friends are thrilled to see they are both moving forward.”

Left unsaid in the article is what happens to the $7 million coop in New York City, the Hamptons beachfront estate he bought for $36 million from actor Richard Gere, his Sag Harbor home, and other properties.

Florida Property Division . . . and Friends

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.

Passive Appreciation and Morning Joe

Passive appreciation of a nonmarital asset may also be a marital asset the court must equitably distribute. For example, Lauer bought his upper East Side apartment for roughly $6 million, but has it listed for over $7 million.

In 2010, the Florida Supreme Court held that “passive appreciation of a nonmarital asset … is properly considered a marital asset where marital funds or the efforts of either party contributed to the appreciation.”

The Florida Supreme Court created a formula for courts to use in determining the value of the passive appreciation of nonmarital real property for equitable distribution.

But the formula was flawed because there is no relationship between the amount of marital funds used to pay down a mortgage during a marriage, and the passive appreciation of the property.

Also, the case requires a nonowner spouse to have made contributions to the property as a prerequisite to sharing in the passive appreciation of the property.

Live with Kaaa

Recently, Governor Scott signed a bill to fix the problem. The bill amends our equitable distribution statute and establishes a statutory formula for courts to use.

The new statutory formula does not require the nonowner spouse to have made contributions to the property, and also bars the marital portion of nonmarital real property from exceeding the total net equity of the property on the valuation date in the divorce action.

The People article is available here.

 

Real Ex-Housewives of OC

Posted by Ron Kauffman on

Gina Kirschenheiter, one of two new cast members this season on “The Real Housewives of Orange County,” and her husband, Matthew, have decided to divorce, and sell their Coto de Caza house. What goes into the decision to sell the marital home?

Divorce House

Real Trouble in OC

They may live in the lap of luxury, but life isn’t always perfect for the women who reside in one of the wealthiest enclaves of the U.S. The real housewives of OC may continue to focus on living large; plastic surgery, working out, shopping, drinking, and dancing, but real life sometimes intrudes.

The Bravo TV personality filed for divorce from Matthew Kirschenheiter claiming irreconcilable differences. She’s seeking sole physical custody and joint legal custody of their three children, ages 2-5, as well as spousal support.

Once you’ve decided to divorce, new decisions need to be made: who is going to move out of the house, and are you going to sell the house – or not. Florida’s property division statute requires distributing the marital property but is not exactly a how-to guide.

Deciding Whether to Sell

There’s really no right or wrong answer to whether you should sell or keep a house. Your decision will depend on various factors.

Some of the factors influencing the decision to sell are things like your personality, is the house titled in both of your names, are there children, if so, where are the best schools, and how far away are the two parents’ homes.

Equitable Distribution

I’ve written about houses and property divisions before. In every Florida divorce proceeding the court has to set apart nonmarital property and distribute the marital property.

Florida judges always begin with the premise that the property distribution should be equal, unless there is a reason for an unequal distribution based on several factors.

One of the factors the court has to consider is the desirability of keeping the home for the kids or a spouse, if it’s equitable to do so, if it’s in the best interest of the child, and financially feasible.

The Sale

There are problems with keeping a house in which your name is still on title. If your real ex-spouse doesn’t pay the mortgage timely, your credit will suffer. And, if someone invited to your old home is hurt, the injured person will sue the record title owners for damages. If your name is on title as an owner, that’s you! Making sure you keep insurance on the house may be required.

A fresh start and new beginning after a complete division of all of the assets tying you together with your Ex is the best way to go forward for some people.

The Real Housewives couple bought the house in 24-hour, guard-gated Coto de Caza in April 2016 for $840,000, property records show. The gourmet kitchen includes Viking appliances, wooden cabinets and a breakfast nook. There’s also a landscaped backyard with a lawn and barbecue area. The house has a three-car garage and is within walking distance of a community park.

The Mercury News article is here.