Wednesday, October 29, 2008
How can you agree on a value for a business that you own together if you are divorcing?
How are personal care expenses addressed in child support and spousal support?
Are things like landscape services essential expenses?
Getting credit after divorce
Divorcing when you have no assets
What needs to happen to people’s food and entertainment budgets post-divorce in most cases?
Does the difference in the value of the cars matter in divorce?
Madonna and Guy Ritchie, part 1
Madonna and Guy Ritchie have been married for 7 ½ years. In Oregon, does it matter how long you’ve been married in terms of figuring out what happens with your divorce? Yes, it matters to a degree. Usually, regardless of how long your marriage is, you keep half of what you both accumulated during the marriage. The length of the marriage affects the things you brought into the marriage. In Oregon, a short-term marriage is one less than five years. In a short-term marriage, you generally take half of the accumulation during the marriage and all of whatever you personally came in with. In a long-term marriage of more than nine years, you generally take an equal share of whatever you currently have, regardless of whatever you came in with. A mid-term marriage is between five and nine years, as Madonna and Guy have, and a mid-term marriage can be characterized either as short-term or long-term depending on the circumstances.
Madonna and Guy Ritchie, part 2
In Madonna and Guy Ritchie’s family, they have one biological child, one adopted child, and one child from her previous relationship. Are stepchildren, biological children, and adopted children treated three different ways by the court system? Stepchildren, unless they are adopted by the new spouse and the other biological parent has either given up his rights or has died, are not the subject of custody in a divorce. They remain in the custody of their biological parents. Adopted children are treated the same as biological children in a custody proceeding. A parenting time schedule is established for adopted children just as it would be for biological children, and decision-making power is given to one parent or the other (or to both parents if they agree).
Madonna and Guy Ritchie, part 3
At the time of their marriage, Madonna was far wealthier than Guy Ritchie, and she probably has made more money during her marriage than he has. How do those factors affect their divorce? If their divorce were in Oregon, it would seem unlikely that he would walk away with as much money as she walked away with, as they did not have a long-term marriage and she came in with far more money than he did. Also, she made most of her money before she met him; a smaller portion of her fortune has been earned since their marriage date. However, he is probably entitled to some of the money she has made because in Oregon it would be presumed that he contributed equally to acquiring it, and because he has gotten used to a lifestyle based on her higher income.
Madonna and Guy Ritchie, part 4
Madonna and Guy Ritchie have homes in two countries that are separated by an ocean. Can you move or travel with the kids wherever you want during and after the divorce? In Oregon, if you want to move more than 60 miles further distant from the other parent, you must give notice in writing at least 30 days prior to the move. That means that you can move farther, but you just need to give notice. There have been cases where the non-moving parent has contested the other parent’s right to move far away, but those cases are more and more often resolved in favor of allowing the parent to move. There is even case law where an Oregon judge allowed a mother to move with the kids to New Zealand. You can’t get much farther away than that. It is always at the discretion of the court, and the best interests of the child are considered.
Madonna and Guy Ritchie, Part 5
What do you do if, as is true for Madonna and Guy Ritchie, the cost of affording your lifestyle is greater than the child support and spousal support payments that would be typical? Even for less wealthy couples, such as the vast majority of the population, child support is ridiculously low. You can submit a request to the court for a higher amount based on a budget that you also submit, showing your greater needs and the time you have enjoyed that lifestyle. The more common way to receive greater child support or spousal support is simply to agree to it privately and then write it into your agreement. You don’t need a judge to order it, but a court is one way to get to that outcome if private negotiations fail.
Madonna and Guy Ritchie, part 6
6) Would you expect that Guy Ritchie will receive spousal support from Madonna, and how is spousal support figured? No, I would not expect that he would. Even though he is not as high an income-earner as she is, he is still fully self-sufficient. Self-sufficiency is the standard for spousal support. Guy will be able to afford even a very affluent lifestyle on his own income and on the investment income from the lump sum he is likely to receive from Madonna. Also, he was wealthy before he met her and he enjoyed a high standard of living even before the marriage, so he likely does not need her to supplement him after the marriage in order to maintain the same lifestyle he enjoyed before and during the marriage.
If one parent has heightened medical, psychological, or financial needs, does that circumstance influence the payment of support?
What if one parent wants to move into a brand-new house and the other parent can only afford something smaller?
With that said, I still think it's important for both parents to live reasonably equally in the immediate aftermath of the divorce, so that the kids don't notice a disparity and so that they can continue their established lifestyle. If one parent has the resources to create a fabulous home that the kids gravitate toward, it may weaken the credibility of the other parent and place the kids in an awkward position.
Do you need a professional appraiser to value your items before you divorce?
If you do need a professional appraisal, my office supplies recommendations to appraisers whom I know and trust. An appraisal for a piece of residential real estate, for example, tends to cost about $350 to $450, depending on the complexity that you desire.
Is a house preferable to an apartment, post-divorce?
For a lot of reasons, having a house – whether it is rented or owned – is the preferred choice. Enjoying a yard, having the ability to keep pets, and being in somewhat more open quarters so as not to disturb your neighbors with your every sound are reasons that support living in a detached house instead of an apartment. However, the rent on an apartment is often lower than a house because most apartments are smaller than most houses.
Tuesday, October 28, 2008
Does the ability to take care of a pet factor into the amount of support or the type of residence where people live after the divorce?
How do you divide household goods, especially those with investment value or sentimental value?
What is the Disneyland Dad syndrome?
My solutions to this problem are to have as equal a parenting schedule as possible without damaging the kids' routines or the parents' need for stability and to earn their livings. Sometimes, it is also helpful to include in your divorce agreement how much you will be spending on the children for birthdays, holidays, and regular entertainment.
How is it appropriate to be involved with your ex’s family after the divorce?
How do you determine who is going to pay for what expenses if the kids spend equal or substantial time with each parent?
How do you handle the children’s toys that are too big to move from one house to each other routinely?
How do you handle improvements to your home before you sell, even if one parent has moved out?
What dirt can you dig up on your spouse or vice-versa?
How public are the records in your divorce?
This is our first set of holidays after our divorce. What can we expect our kids to be concerned about?
How do we divide the holidays fairly and with the most respect to our children?
Should we celebrate together the first year?
If we’ve been divorced for a while, is it bad to continue celebrating holidays together?
How is it best to handle buying gifts?
A few more health insurance and reimbursement questions answered
2) What if the health plan does not cover the types of services that I want or need? You will need an agreement in advance about the types of medical procedures that your policy allows, and the way that you will handle unreimbursed expenses. For example, does your plan cover acupuncture? If so, is it an in-network or out-of-network benefit? If not, what are the out-of-pocket costs for people without insurance? Are you comfortable sharing those costs in the same proportion that you share other unreimbursed medical expenses? You need to have this discussion for chiropractic, orthodontia, plastic surgery, vitamins, herbal supplements, natural medicine, and other special services before you just expect the other parent to understand that you require reimbursement. Sometimes, you will find that paying out-of-pocket for the occasional use of those services is more cost-effective than buying a more expensive plan that includes them as benefits.
A couple of frequently asked questions about adoption and divorce
2) Do adopted children tend to have a harder time adjusting to divorce? Some people would argue that adopted children are used to change, so this change is “par for the course.” I strongly disagree, although I can vaguely see the logic of that argument. I take the opposite view as a family and divorce mediator. I think that if a child has been put through enough traumatic changes already in his or her life, why add one more hardship? I work with my clients promote stability and permanency, so they can avoid any perception of abandonment.
Mediator Matthew's October Divorce Speech
Several big issues tend to come up at this time of year, particularly in families where there is a large disparity between the incomes of the husband and the wife. First, if the higher-income earner has had his or her income deductions figured throughout the year based on the assumption of filing jointly, his or her tax may be significantly higher at the end of the year when filing individually. Not enough tax may have been withheld throughout the year, and that higher income-earner may be hit with a big tax bill on April 15.
The second way that the higher income-earner may be affected adversely is if he or she has claimed the children as dependents for his or her withholdings throughout the year. If the lower income-earner has more parenting time than the higher-income earner, the lower income-earner will be the one who has a the legal right to claim the children as dependency exemptions unless both the husband and the wife make an agreement to the contrary. In that case, the proper amount of tax probably was not withheld throughout the year, and the higher income-earner will again face an increased tax bill.
Many of my clients choose to file jointly for the current year and finalize the divorce sometime the following year. What you do is up to you and your tax professional to figure out, and the comments I’ve made above may or may not apply to you, depending on the particular details of your situation.
Monday, October 6, 2008
"Visitation" and "parenting time" are the same thing, right?
Visitation is, as the name suggests, a "visit" with someone such as a grandparent or other relative, friend, or acquaintance. It is critical to use the proper wording because calling the parenting time a "visit" marginalizes the children's attachment to that parent and it gives the parents some license to push themselves away from each other.
TIP: Catch yourself when you refer to the time your children spend with you or your ex as a "visit." Your children visit with the dentist or a math tutor, not with their other parent.