Broward County Divorce Attorney Blog

Life insurance division may raise questions in divorce

2013-05-17T18:23:00Z

The division of life insurance is one area divorcing couples in Florida may not consider but which can lead to serious problems between partners. Normally, property division includes real estate, bank accounts and retirement funds, but life insurance can also be considered part of the marital estate. If a partner owns a valuable life insurance policy, it can be difficult to liquidate it in order to give half to the other spouse.

Life insurance typically has low cash value but high value in terms of eventual proceeds. Because life insurance is designed to pay out on the death of the owner, few couples have access to the cash represented by the payout when they divorce. However, if the owner intends to keep the policy, the other spouse may claim that these proceeds should be considered part of the marital estate and that he or she should be reimbursed accordingly.

]]> Once a divorce is final, partners have no control over life insurance policies they do not own. Therefore, the value of a policy must be considered prior to the divorce. Term policies usually have very low cash value and it may not be beneficial to surrender them in order to access a relatively small amount of money. On the other hand, once a divorce settlement has been made, the owner may transfer the beneficiary of a policy, leaving the former spouse without any proceeds in case of the death of the owner.

A family law attorney may advise clients in the details of property settlement. A fair and equitable distribution of marital property is the goal of any divorce settlement agreement, and this may include the division of the value of life insurance policies.

Source: Fox Business, "Don't I Get Half of My Ex's Life Insurance Policy? Read more: http://www.foxbusiness.com/personal-finance/2013/05/06/dont-get-half-my-ex-life-insurance-policy/#ixzz2TDl1PGJV", Jack Hungelmann, May 06, 2013

Controversial alimony bill vetoed by Governor

2013-05-10T17:52:02Z

A bill that would have drastically altered Florida alimony law was vetoed by Gov. Rick Scott. The bill would have changed alimony law by capping or eliminating some payments. The payments have been considered to be crucial to spouses in the process of rebuilding their lives in the aftermath of a divorce.

The proposed legislation, SB 718, would have capped alimony awards based on income and marriage length. The proposal would have made it easier for an ex-spouse to lower or terminate alimony payments at retirement. In addition, the proposal awarded equal custody to any children from the marriage.

]]> The governor's main objection to the bill was that it would have applied retroactively. The governor felt that this would have been disruptive to Florida residents whose divorces had already been settled.

Supporters of the proposed legislation wanted to update divorce laws that they say were written at a time when many women stayed at home. The current law has the power to grant lifetime alimony. Supporters argued that there should be tougher guidelines for the court.

Opponents of the bill felt that it left stay-at-home spouses vulnerable, particularly women in their 60s. They felt that these laws would unfairly target women who had given up careers to raise children. These women would be left destitute without monthly alimony, and, unable to support themselves, they may end up relying on welfare. Supporters have countered this argument by including alimony provisions for marriages that have lasted more than 21 years.

A person facing a divorce might benefit from a consultation with a divorce attorney. A divorce attorney may explain current divorce laws, including custody, child support and alimony.

Source: CBS 12 News, "Gov. Scott Vetoes Alimony Overhaul Bill", Donna Gehrke-White and Kathleen Haughney / Sun Sen, May 01, 2013

Prenuptial agreements can protect everyone

2013-05-03T22:30:49Z

Prenuptial agreements provide a practical solution to financial protection in the event divorce. They apply to people of all financial statures, not just the rich. All couples, including those living in Broward County, have certain assets to protect. When couples create a prenuptial agreement in advance of conflict, unnecessary difficulties can be avoided.

The most common protection that prenuptial agreements provide for is future earnings. The agreements also shield the parties from future debt, which is particularly attractive during difficult financial times. When children from previous relationships are involved, parents may be concerned that they will lose their rights to life insurance proceeds, IRA accounts or other financial benefits that they would stand to inherit. A solid prenuptial agreement can provide financial security to the children, not to mention peace of mind to the parent.

]]> Initiating a discussion about the need for a prenuptial agreement might imply that divorce is a possibility. Acknowledging the need for a plan in case the marriage does not work out is uncomfortable. Many couples shy away from creating a plan to protect their financial futures simply because of that.

Because of the delicate nature of discussions surrounding these agreements, it is recommended to leave the details to an attorney who will take charge of the discussion and lessen the awkwardness. An attorney may be able to help take the complicated emotions out of the negotiation process and attempt to make it as painless as possible. With legal guidance and some preparation, couples are more able to focus on the success of their marriage.

Source: Huffington Post, "Prenups: Not Just For The Wealthy," Jason Marks, May 3, 2013

First comes home, then comes marriage

2013-04-22T18:37:44Z

Did you know that budding couples of this generation are more likely to buy a home together before they marry than the previous generation?

According to a new Coldwell Banker Real Estate survey, almost 25 percent of married homeowners from ages 18 to 34 bought a home together prior to marriage. Conversely, only 14 percent of those aged 45 and higher purchased property before tying the knot.

]]> Every year, men and women are waiting longer and longer before they choose to marry. In 2012, the median age of first-time marrying men was 28.6. This is up from 26.1, which was reported in 1990. Women come in at 26.6 - up from 23.9. And because buying a home often follows marriage, the delay of marriage could mean a delay in homeownership. Therefore, then new trend is good news for the real estate market.

The statistics align with other trends. For example, two-thirds of couples live together before getting married. Therefore, scholars say that the new buying trend may be the new "engagement." As couples determine that they are ready to commit to each other, they are comfortable with the idea with buying a home. The financial step can also strengthen relationships.

The survey had other findings. For example, Southerners are more likely to take the traditional approach, marrying before purchasing real estate as a couple. Also, the research also found that only 16 percent of married American couples have not bought a house with their spouse.

Ultimately, as we uncover more statistics about relationships, we discover more information about matrimony and the potential for a lasting marriage.

Source: USA Today, "More Millennials get house before getting hitched," Haya El Nasser, April 17, 2013

Jane Seymour calls it quits with her long-term husband

2013-04-15T21:50:26Z

Just like your average Joe, even big-named celebrities get divorced. We have seen several celebrity couples have quick and dirty marriages. Kim Kardashian is infamous for her short-lived experience. But even marriages that have lasted for decades can come to an end. Sometimes, marriage commitments simply do not make it. That is the case for Jane Seymour and James Keach. According to sources, the couple is separated and have been apart for several months. At this time, the couple is settling several terms of their divorce.

The former pair is most notably known for their work together on "Dr. Quinn, Medicine Woman." Seymour and Keach were married in 1993. The couple has twin 17-year-old sons together.

]]> Sources report that the couple intends to continue their relationship as parents, business associates and partners. They also plan to continue their joint commitment to furthering charitable activities, which they have done throughout the course of their marriage together.

Divorce can be very complicated. The process often involves children, property and financial support issues. These are just a few of the matters that are common to the process. In this particular case, it appears that the Hollywood couple is trying to settle these issues in an amicable way; however, this is not always the way it works.

If you would like to learn more about divorce and the various elements to the process, you may benefit from speaking with a qualified family law attorney in your area. An attorney can help sort through the issue, which specifically affect you.

Source: People.com, "Jane Seymour and James Keach to Divorce," Sarah Michaud, April 13, 2013

Revisions to alimony laws approved by Florida Senate

2013-04-09T20:25:15Z

Last week, the Florida Senate voted to pass a new bill that would put an end to permanent alimony payments in Florida. The bill also includes making other changes in how alimony is calculated and awarded to ex-spouses.

Lawmakers and supporters of the bill argue that alimony is not awarded fairly in Florida, and as a result, those who have been ordered to pay permanent alimony and high monthly support payments have had to put off retirement or have had to make other sacrifices in order to continue paying alimony to ex-spouses who should be able to support themselves after divorce.

While many support-paying individuals, family law attorneys and lawmakers argue that the state's alimony laws are outdated, others also argue that revising alimony laws would significantly harm divorcees who are stay-at-home parents or who were stay-at-home parents for much of their lives.

]]> According to reports, the Senate voted 29-11 to approve the bill. The bill states that permanent alimony payments should no longer be awarded in Florida. If the bill is approved by the governor, folks who are currently ordered to pay lifetime alimony may request to have their payments terminated or lowered.

The bill also states that alimony awards will be capped. The length of a couple's marriage and a spouse's income will determine what alimony awards will be capped at. The bill does provide room for some exceptions when awarding alimony, though, when judges determine that exceptions are necessary.

Alimony payments provide ex-spouses with financial support after divorce. Alimony may be awarded when one spouse has sacrificed a career in order to focus on raising a couple's children. The stay-at-home parent may need financial support after divorce while he or she continues to focus on raising children. Alimony payments may also be awarded when one spouse earns much less than the other spouse and needs financial support while he or she becomes self-sufficient after divorce.

There are many issues that must be considered and addressed when divorcing individuals negotiate alimony awards in Broward County. In order to make sure spouses' interests remain protected during negotiations or disputes regarding alimony, folks will want to consider consulting an attorney who understands alimony laws and the financial needs of divorcees.

Source: SunSentinel, "Senate passes bill ending permanent alimony," Kathleen Haughney, April 4, 2013

Convicted rapists may lose parental, custody rights in Florida

2013-04-02T19:20:41Z

In Broward County, there are a variety of reasons for unmarried couples to establish paternity when they have children together.

Establishing a biological relationship between a father and child may prevent fathers from losing their children to adoptions without their consent or knowledge. Establishing paternity is also important for fathers who want to have parental rights and child custody or visitation rights. When mothers make sure biological relationships are established between their partners and children, mothers may be able to secure their ability to receive child support in the future.

Establishing paternity may give fathers parental rights in many cases, but there are some situations in which fathers may not be granted parental rights or child custody rights after establishing paternity. For example, a parent's addiction to alcohol or drugs, or a parent's struggle with a mental health problem may jeopardize one's parental rights and custody rights. And if a newly proposed bill is approved by Florida lawmakers, convicted rapists may also lose parental rights and custody rights of their children that are conceived from rape.

]]> Nearly 20 states already have laws in place that allow states to take away convicted rapists' parental rights, custody rights and visitation rights of children that are fathered during acts of sexual assault or incest. Earlier this week, the Senate Criminal Justice committee voted to pass a similar law in Florida. The committee's vote was unanimous. The proposed bill will now move forward in the Florida Legislature.

If the bill is passed, women who conceive children from acts of sexual battery may be able to have their requests to terminate their rapists' parental rights approved with ease. However, fathers who are accused of rape must be convicted of the charges before their parental rights can be terminated.

Source: The Miami Herald, "Bill would prevent rapists having custody of kids," April 2, 2013

Oil mogul's wife may receive largest divorce settlement in U.S.

2013-03-26T18:59:17Z

Harold Hamm, who is currently estimated to be worth more than $11 billion, may end up losing about half of his assets after his divorce from his second wife is resolved. The couple's divorce may actually be the most expensive divorce ever recorded once the couple reaches agreements regarding the division of marital assets and other issues. Sue Ann Hamm filed for divorce in May 2012; however, the couple owns complex assets and has yet to reach property division agreements.

Harold Hamm founded Continental Resources, which is one of the top petroleum producers in the U.S., and he has served as the company's Chief Executive Officer since it was founded in 1967. However, when the pending Hamm divorce is settled, the oil mogul may no longer have control of his company. As part of the divorce settlement, the oil mogul's wife may be entitled to nearly 70 percent of her husband's ownership of the company. Once everything is said and done, Sue Ann Hamm may walk away with $5 billion after the divorce.

]]> The couple has been married for nearly 25 years, according to ABC News. It has been reported that Sue Ann filed for a divorce from her long-time husband after she discovered that her husband had an affair. Before the couple can settle their divorce, they must carefully identify all of their assets and determine which assets are considered to be marital and nonmarital property. Like other divorcing couples in Florida and throughout the U.S., the Hamm's will also need to make sure the value of their assets are properly estimated before they move forward with reaching a divorce settlement.

A contributor for Forbes has also pointed out that tax issues may also determine how the couple decides to divide their property. For example, the couple may not be forced to pay a significant amount in taxes on the division of their property shortly after divorce, but each spouse may see large tax bills in the future depending on what type of property both spouses keep or try to get rid of after divorce. When divorcing couples want to reduce their future tax burdens or equalize their future tax burdens, they may consider dividing a mixture of assets as equally as possible.

When a significant amount of marital assets are at stake during a high net worth divorce, reducing future taxes may be an important goal to consider during the divorce process in order to avoid harming one's financial situation after divorce.

Source: Forbes, "Tax bite on oil billionaire Harold Hamm's record $5B divorce," Robert W. Wood, March 25, 2013

Court says millionaire's prenup cannot be enforced due to fraud

2013-03-19T17:22:16Z

Agreeing to sign a prenuptial agreement may not be a romantic event for Florida couples, but it may be a very wise decision in the long run.

A prenuptial agreement may help to ensure one's wealth in the event of a divorce, and it may also help couples to address current financial concerns or issues before getting married. Although prenuptial agreements are legal contracts that determine how finances and property will be addressed and handled during divorce, there are some circumstances in which these contracts may not be enforced during divorce proceedings.

A prenup may be broken when one spouse can prove that the agreement was signed under illegal conditions. In some cases, prenups may not be enforced due to filing errors or other mistakes. And in a recent court decision, a prenup may also not be upheld in court during divorce proceedings when a spouse can prove that he or she was "fraudulently induced" to sign a prenup.

]]> The case was recently heard in an appellate court in New York. The case involved a woman who argued that the prenuptial agreement she had signed with her ex-husband was no longer valid because her ex-husband had made a verbal promise to tear up the legal document if the couple ever had children. But even after the couple had a third child together, the woman's husband refused to destroy the document. The woman argued that this put a strain on their relationship and marriage, and she eventually filed for a divorce.

The prenup stated that the woman would only be entitled to $25,000 for every year of marriage and nothing more if she ever divorced her millionaire husband. She argued, though, that this agreement was no longer valid since her husband had promised her the agreement would no longer exist when the couple had children. Last month, the case went before an appellate court and the court concluded that the prenup was no longer valid because the woman's husband had lied to her in order to get her to sign the agreement.

When drafting a prenuptial agreement and agreeing to sign a prenuptial agreement, both parties will want to make sure that their interests remain protected by the agreement and that the agreement is also drafted under legal circumstances. In order to avoid signing an agreement that may not be fair, accurate or lawful, individuals will want to make sure they consult an attorney who can guide them through the process of drafting and filing a sound agreement before saying "I do."

Source: ABC News, "Long Island woman wins 'groundbreaking' prenup battle," Joanna Suarez, March 11, 2013

Deion Sanders wins sole custody of two of his children

2013-03-13T14:18:54Z

Divorcing couples who have young children need to remember that even though a divorce is to dissolve a marriage, divorce also changes the way in which families function.

Parents need to be sensitive to their children's needs, and when it comes to resolving child custody issues in Florida, parents should make sure their children's best interests come first. When parents cannot reach agreements on their own about visitation schedules and child custody, the court will get involved to ensure children's best interests remain protected.

]]> The court understands that children in Broward County need both their mothers and fathers, but in some cases, the court may decide that children will be better off spending more time with one parent instead of an equal amount of time with both parents. Earlier this week, a court in Texas decided that Deion Sanders, who has three children with his estranged wife, should have the responsibility of having sole custody of his two older children. The court decided that the former NFL player and his estranged wife should share custody of their youngest child.

Sanders and his wife have both been arguing to have sole custody of their children while they have been proceeding with their divorce, which was first filed in 2011. The couple's custody case recently went to trial, and both sides argued that the other parent was not fit to have sole custody. The former NFL player claimed that his wife is not a trustworthy person. His wife argued that Sanders is often absent when he should be spending time with his children. Both sides claimed that the other parent is selfish and does not put the children first.

After hearing testimonies in the child custody dispute, a jury concluded that Sanders will have sole custody of the couple's two boys who are 13 and 11. This means that the former NFL player will get to make decisions about the boys' education, health and other issues. Sanders and his wife will both be allowed to make these decisions for their 9-year-old daughter. The former NFL player also gets to decide where the couple's three children will live.

The couple will now need to agree on a visitation schedule. They have yet to resolve other issues including child support and other financial concerns related to the divorce.

Source: The Dallas Morning News, "Deion Sanders claims court victory in child custody battle with estranged wife," Christina Rosales, March 12, 2013

Fairness of permanent alimony payments questioned in Florida

2013-03-05T16:31:55Z

Wealthy, married couples in South Florida may be comfortable with their current lifestyles. Couples may be able to afford going out to eat on a regular basis and participating in a variety of activities when both spouses are earning high incomes. Other couples may be able to afford living off of one income so that one spouse can stay home with the children. These are lifestyles that couples become accustomed to, but when married couples divorce, these types of lifestyles may be threatened.

Although divorce does require spouses to make some significant changes, spouses still need to make sure they protect their finances and lifestyles during the divorce process. One way to do this is to negotiate alimony or spousal support payments. If one spouse has sacrificed a career to stay home with the children or has a significantly lower income compared to the other spouse, alimony will be an important issue to address during divorce.

To determine how much a spouse should be entitled to receive in alimony, judges will review a couple's standard of living and award alimony based on what is reasonable for an ex-spouse to receive in order to maintain his or her lifestyle after divorce. Although alimony payments and terms are supposed to be determined in a fair manner, some divorcees and lawmakers believe that Florida's alimony laws are not fair and need to be changed.

]]> Currently, alimony may be awarded in several different ways. Alimony may offer ex-spouses temporary financial help as ex-spouses get used to their new financial situations after divorce. Alimony payments may be calculated based on the duration of a couple's marriage. And in some cases, ex-spouses may be awarded alimony for the rest of their lives. Some believe that lifetime alimony payments are not fair, and now Florida lawmakers are pushing to put an end to lifetime or permanent alimony payments.

Another change lawmakers are proposing is calculating alimony payments based on both spouses' incomes. Currently, there is no specific formula that is used to calculate alimony payments.

What do you think about this issue? Are current alimony laws unfair in Florida? Are you worried about what will happen if you divorce and need to receive or pay alimony? To learn more about protecting your finances and lifestyle after divorce, you may want to consider the benefits of working with a knowledgeable divorce attorney.

Source: Crestview News Bulletin, "Alimony reform bills propose relief from lifelong payments," Brian Hughes, Feb. 25, 2013

Will a divorce affect your retirement plans in Broward County?

2013-02-27T18:38:34Z

Residents in Broward County may already be aware that the U.S. has a high divorce rate, and some folks may not be as surprised now as they might have been in the past to learn that a couple who has been married for 30 years is now planning to divorce. While the divorce rate remains high, more and more couples who have been married for several decades are now choosing to divorce. USA Today reported earlier this week that twice as many people who are 50 or older are now choosing to get divorced compared to 20 years ago.

Although this tidbit of information regarding divorce in the U.S. may not be all that troubling to some, what is troubling is that divorce may have far more serious financial consequences for older folks compared to younger folks. According to one financial planner, the cost of retirement may increase by up to 50 percent for Baby Boomers who divorce. It is important for anyone who is seeking a divorce in Florida to consult an attorney who will know how to protect their interests and finances, but it may be especially important for older individuals who are nearing retirement or face additional financial risks when going through a high net worth divorce to seek counsel from a divorce attorney.

]]> When a couple divorces in Florida, the couple's marital assets will be divided equitably between both spouses. In order to make sure assets are divided in a fair manner, though, each spouse will want to make sure they have accounted for all assets and that all assets have been properly valued. In addition to making sure spouses protect their finances during divorce or a high net worth divorce, older folks will also want to make sure they work with their divorce team to create a solid post divorce plan that will help them ease into retirement.

Divorce may affect one's retirement plans, but it does not mean that older divorcees will not be able to retire when they would like to. In order to maintain financial stability after divorce, folks will need to make sure they reach divorce settlements that are fair. They will also need to make sure they understand how living as a single person will affect their finances and how they can change their saving and spending habits in order to retire when they want to.

Source: USA Today, "Boomer divorce: A costly retirement roadblock," Rodney Brooks, Feb. 26, 2013