Boulder Family Law Attorney Blog

Life insurance can cause conflict in divorce

2013-05-17T18:24:00Z

Colorado couples who are contemplating divorce often have many questions about property division and asset distribution. However, few of those thinking about a divorce consider one important part of the marital assets: life insurance policies. Dividing insurance policies can be difficult and time-consuming and may end up hurting both parties financially if the division is not done carefully.

Life insurance is purchased so that cash may be obtained in the future. Because of this, it is different from a home or other investments. There is usually no current value in a life insurance policy because it is designed to pay out on the death of the owner. Term policies in particular have very little cash value until the end of the policy, and even then the amount may be so small as to scarcely warrant consideration in property division. However, the proceeds of a life insurance policy may be very large and a divorcing spouse may be concerned that the owner of the policy will change the beneficiary and the proceeds will go elsewhere.

]]> In such a situation, it may be difficult to know what to do. One way to solve the problem is to surrender the policy and split the cash value. However, this may hurt both parties as no one gets access to the proceeds and the cash value may be very small. On the other hand, if one partner wants to keep a particularly valuable policy, financial consideration may be made to the other spouse.

A family law attorney may be able to assist an individual in answering financial division questions. The goal of any divorce is to fairly and equitably divide the assets so that both partners benefit if possible.

Source: Fox Business, "Don't I Get Half of My Ex's Life Insurance Policy?", Jack Hungelmann, May 06, 2013

Spouses not always liable for ex's credit card bills in CO

2013-05-13T15:22:04Z

Coloradans will be happy to hear that their state is not one in which creditors can pursue someone for their ex-spouse's debts. The division of assets during a divorce differs according to state law, and in Colorado, this means that no one has to pay their ex's credit card bills.

One woman wrote into an advice columnist with a story: a relative of hers is going through a divorce, and she discovered her husband had maxed out two credit cards. The husband spent until he hit their limits at $7,000 and $15,000 respectively, and then hid any evidence of this from his wife. Unfortunately, if she lives in a community property state, she may have to pay some of this debt even if she wasn't a joint account holder. She will have to prove that her husband did not spend the money in any way that benefited her.

]]> The state laws for marital property can be divided into two groups: community and non-community. Non-community property states are called equitable division or marital property states. In community property states, someone could be held responsible for an ex-spouse's credit card debt, even if only one name was on the card.

In a divorce, assets and liabilities are divvied up between the two spouses by a judge. Anyone who is going through the divorce process should run a credit check on themselves. It may be a good idea to close any joint savings or credit card accounts. Even if the debt is ruled to be entirely one party's liability, the other party may still get harassing phone calls from collection agencies. Division of property in divorce should be equitable and fair to all parties. It's important to make sure that you have a good representation in court, so that the divorce can end as well as it can for everybody involved.

Source: Fox Business, "Is Wife Liable for Ex's Card Debt?", Sally Herigstad, May 07, 2013

Wealthy or not, couples should have prenuptials

2013-05-03T22:12:40Z

In the past, the prenuptial agreement has been connected to society's wealthiest and famous as a tool to protect themselves during a high asset divorce. However, this document is not made for them alone. Whether you make a seven-figure salary or farm a small plot of land, a prenuptial agreement should be included as part of a marriage plan and premarriage counseling.

Besides dividing property, a prenuptial agreement offers many other advantages to make a divorce easier for both parties. One of the protections is for future earnings. While one partner may have few assets at the beginning of a marriage, a huge salary increase or revenue from a newly opened business can alter this situation in a matter of years. A detailed agreement can protect these earnings during a divorce proceeding.

]]> If a marrying spouse already has children, a prenuptial agreement can allow the other partner to financially provide for them in the event of divorce. Instead of having assets such as IRAs and life insurance policies left to the spouse at the time of death, the assets can be set to be passed along to the former spouse's children. In addition, living trusts can be set up within these agreements.

Whether preparing a prenuptial or invoking one, Colorado couples may wish to utilize legal firms specializing in family law. In addition to having a third-party available to discuss what should be placed in the prenup, these law firms will be available for the dissolution of the relationship and may resolve issues that arise within the agreement.

Source: The Huffington Post, "Prenups: Not Just for the Wealthy," Jason Marks, April 25, 2013

Divorcing your husband when you earn more than him

2013-04-26T06:17:18Z

Traditionally, the husband has the greater income in a marriage. Usually, it is the wife who negotiates for alimony in divorce proceedings, and there are many more ex-husbands paying spousal support than ex-wives.

However, according to USA Today, the gap in income between husbands and wives is straying from the traditional trend. A study revealed that in dual-income family households from 2006 to 2011, it is becoming less rare for the wife's income to exceed that of her husband. It is not prevalent for the wife's income to be greater, by no means, but it is not unheard of anymore. For those women who do earn more than their husbands, there are a few key factors they must keep in mind if they are thinking about a divorce.

]]> It is wise to have clear legal agreements like prenuptial agreements denoting who owns what. This prevents problems later on in the event of a divorce. While some people consider prenuptial agreements an insult, others view them as responsible moves that protect the spouse with greater assets from unfair allocation of those assets if a divorce occurs. It is also wise for spouses to keep some of their money separate, keep inheritance assets separate and take measures to protect their businesses if they own their own businesses.

Spouses attempting to get a divorce should consider seeking the counsel of divorce attorneys. Divorce attorneys might be able to help ensure that their clients receive the divorce settlements that are in their best interests. For example, divorce attorneys may be able to negotiate the division of assets and liabilities to ensure that property is divided fairly among spouses. The best interest of the children must also be considered in divorce cases where there are minor children involved.

Source: Forbes, "Divorcing women: when you earn more than your husband," Jeff Landers, Apr. 10, 2013

Couples thinking about a divorce should put children first

2013-04-20T11:29:38Z

It is not uncommon for Colorado residents in unhappy marriages to stay together out of concern for their children. However, it could be that staying together instead of getting a divorce ends up being worse for children involved. While couples may want positive role models for their children, a couple that is always arguing may end up providing their children with poor role models.

This is not to say that a couple should not attempt to work past their differences if they have children. That said, if a man and woman cannot get past their problems, they could end up creating an uncomfortable environment for their children, especially if they are fighting all the time. Children in this situation may end up believing that all marriages are filled with arguments and misery.

]]> Instead, couples may want to think about a divorce that puts their children first. This is a divorce that focuses on keeping children out of disagreements and not trying to pit them against each parent. In this type of divorce, parents work together in order to raise children in different households. While a divorce may not be preferable to a happy mom and dad living together, it may be much better than a mom and dad that are always squabbling.

Those considering a divorce may benefit from speaking with an attorney. A lawyer could help someone understand the legal process in their state and what options there are regarding child support, visitation rights and other issues related to children following a divorce.

Source: Huffington Post, "Divorce Or Stay? Parents Must Put Kids First Either Way," Rosalind Sedacca, April 3, 2013

Gift and income tax issues for the unmarried

2013-04-12T19:04:20Z

The debate in favor of gay marriage places some emphasis on financial rights, such as taxation issues. However, although a joint-tax return with a designation of "married" is important, it stands in stark contrast to what happens when married couples part ways. During a divorce, they can exchange money without any tax implications whatsoever. The same can't be said for same-sex partners who may not have the same rights as married couples.

The American tax code does not tax either spouse with either an income or a gift tax when a marriage ends. However, when an unmarried couple separates, the whole amount is taxed. Those who support the Defense of Marriage Act argue that those laws apply to any heterosexual or gay unmarried couple that splits.

]]> For people who aren't married, they might pay income taxes, gift taxes or both. While a person can gift another as much as $14,000 per year, that might not be enough during a separation. Individuals will pay gift taxes on higher amounts and possibly pay even more in income tax. For example, if an unmarried couple separates and owns property and assets together, they will probably exchange the property and assets. Half of the property will go to Partner A while half of the assets will go to Partner B. Even if they each break even, they still need to pay income tax by law. However, if they are married, they wouldn't need to pay that tax.

During a break-up and separation, financial matters become extremely important, whether the couple is married or not. A family lawyer might be able to help couples negotiate money-saving options to work out financial issues.

Source: Yakima Herald, "Right To Divorce? Just As Important As Right To Marry (No Kidding)," Robert W. Wood, March 27, 2013

U.S. Supreme Court ruling could impact Colorado laws

2013-04-04T14:53:24Z

The U.S. Supreme Court's ruling on a California gay marriage ban could seriously impact recently passed Colorado legislation that permits same-sex couples the legal right to form civil unions. The highest court in the land heard arguments on March 25 and 26 from supporters and opponents of Proposition 8 in California that prohibits the marriage of same-sex partners. A Colorado law has banned gay marriage since 2006 even as DOMA stops the federal government from recognizing gay marriage.

The state legislature navigated around the issue by voting in civil unions instead. While they admit that it is not the same as full acceptance of same-sex marriage, it gives same-sex couples some legal protection. However, the Supreme Court could decide that Colorado and eight other states that make a distinction between civil unions and marriage have unfair laws.

]]> A recent Colorado poll shows that more than 50 percent of voters approve of gay marriage in the state. In 2006, about 55 percent of voters in the state wanted to ban it. One man attributes the shift to more people knowing homosexuals personally. President Barack Obama has also changed his position on gay marriage in the last four years.

One lesbian woman who is a law professor emphasized her belief in the right of everyone to marry. She plans to marry her partner later this year in Massachusetts. In Colorado, their marital status will not be recognized.

The laws on civil unions and same-sex marriage continue to change, and they might have an in increase in public attention in the future. Nontraditonal family lawyers in Colorado may be able to provide counsel to same-sex partners who are dealing with legal matters.

Source: WLFI, "Gay marriage ruling could bolster Colorado's new civil-unions law," Allison Sherry, March 24, 2013

Recent Powerball winner raises questions about lotto jackpots and child support

2013-03-29T20:14:11Z

From nurses and mechanics to doctors and schoolteachers, everyone has dreams about winning the big lottery payday. Mortgages, student loans and everyday expenses would be a thing of the past while dream homes, luxury cars and fabulous vacations would be the new reality. However, it's important for people to realize that even in the off chance that they somehow manage to win some money in the lotto, they still cannot escape their court-ordered responsibilities, especially child support.

Consider the recent case of a New Jersey man, Pedro Q., who made headlines last weekend after he won $338 million in one of the largest Powerball jackpots ever. Earlier this week, state officials indicated that a routine debt check revealed that he owed $29,000 in back child support for his five children who range in age from five to 23.

Here, state officials indicated that the arrears will be deducted from his mega paycheck -- roughly $152 million after taxes -- along with nine percent annual interest that has been accruing since 2009.

]]> Interestingly, legal experts have indicated that the amount of back child support owed by Pedro Q. won't increase, and that if any of the children were to file a claim for back child support (via their mother), it wouldn't necessarily result in a significant amount of money.

The reason?

Simply put, none of the children have grown up in the lap of luxury.

"It depends on the lifestyle of the kids -- if they've grown up going to equestrian camps and insanely expensive private schools and summer camps, then the courts will go big and give them awards that allow them to keep that quality of life," said one legal expert.

However, it may be a different story concerning future payments. Legal experts indicate that many family courts typically utilize a formula in which they designate roughly 20 percent of half of a parent's annual income (up to $300,000) for child support.

In Pedro Q.'s case, they indicate that a court would likely just take the 20 percent off the cap of $300,000, meaning he could potentially be on the hook for $60,000 a year for each child.

Remember, if you have questions about child support, divorce or other complex family law issues, be certain to consider speaking with an experienced legal professional.

Source: The New York Daily News, "Powerball winner's riches will be cut down by $29,000 in past-due child support, and thousands more per year could be claimed," Vera Chase and Ginger Adams Otis, March 28, 2013

Alimony could reshape celebrity divorce settlement

2013-03-18T17:50:04Z

No matter how much savings, property holdings, or other financial assets are involved between a separating couple, one important question that should always be addressed is the possibility (or, in some cases, necessity) of alimony and other forms of spousal support.

Alimony has traditionally been included in a divorce settlement when it's clear that one spouse may be at a significant financial disadvantage following the separation. Both here in Colorado and across the nation, such a stipulation has become increasingly rare as income disparity between men and women continues to decrease.

However, alimony may, in some cases, be sought for reasons other than financial security. One celebrity divorce case that has been well-storied in both tabloids and online gossip sites may showcase this very situation. Demi Moore has, according to recent reports, requested spousal support from her estranged husband Ashton Kutcher as a part of the couple's current divorce settlement.

]]> Those close with Moore have intimated that the actress may be seeking support as a measured financial revenge for Kutcher's infidelities during their marriage. The likelihood of a judge's approving the measure has been cast into doubt, however, given that Moore's current fortune far eclipses her husband's.

Kutcher was caught cheating on Moore with a 23-year-old co-star last year and has since moved on to a very public romance with actress Mila Kunis. These actions may have a very real bearing on the outcome of his divorce litigations with Moore, who has already had past success in securing favorable divorce terms.

In spite of conventional wisdom and past precedent, each divorce case is different with its own unique terms and objectives. Those who believe they deserve spousal support for any reason should, at the very least, discuss the prospect with an experienced family law attorney.

Source: The Huffington Post, "Demi Moore 'Really Hurt': Is Ashton Kutcher Spousal Support Request An Act of Revenge? (Report)," Cavan Sieczkowski, Mar. 9, 2013

• Spousal support has the potential to change everything about life following a divorce, for both persons involved. For information on how alimony can have an impact, contact our Boulder family law page.

State lawmakers approve same-sex civil unions

2013-03-14T21:36:06Z

When the Colorado voted to ban same-sex marriage in 2006, many involved were dismayed; in Denver, Colorado Springs, Boulder, and across the entire state gay and lesbian couples in a committed, healthy relationship were denied the right to legal recognition of their partnership, and thus, the formal benefits and privileges that heterosexual couples enjoy.

This inequity in family law appears to be shifting in the state's current legislative session. Led by strong push by Democratic representatives, lawmakers voted to approve the allowance of civil unions for same-sex couples in Colorado. All that remains is for Governor Hickenlooper to sign the bill, which would allow for civil unions to begin as soon as May 1^st.

]]> The measure will set Colorado within the ranks of a dozen other states that have civil union laws on the books. Currently six states nationwide allow for full-fledged gay marriage, while numerous others are currently debating bills that would extend marriage rights to same-sex couples.

Reacting to the bill's passing, some house Republicans protested that civil unions would undermine traditional, heterosexual marriage in Colorado, claiming that unions were too practically similar to marriage.

For the moment, the 2006 marriage ban still remains firmly in place across the state; civil unions are as close as lawmakers could come in opening up equitable partnership recognition for same-sex couples. However, the U.S. Supreme Court stands poised to rule on the banning of gay marriage in the coming months. Such a decision could overrule specific state measures and, potentially, legalize gay marriage in all 50 states.

Some may argue that the civil union measure goes too far, others not far enough. However, as Colorado legislators and voters begin to acknowledge and respect same-sex families, it will only become more and more clear that critical issues of family law including child custody agreements, possible asset division in the case of separation, and even child support and alimony are real issues for gay and straight couples alike. For those who find themselves in one of these situations, contacting a family law attorney should be an immediate priority.

Source: Fox News, "Colorado lawmakers approve civil unions for gay couples," March 12, 2013

Common mistakes still dog many a divorce pt. II

2013-03-07T18:43:52Z

Last week on this blog we offered up some tips on how to avoid common divorce mistakes in times of separation. Two more important and potentially problematic mistakes still need to be directly addressed, and Colorado couples or families who are either contemplating or already in the middle of a divorce, child support, or child custody case should avail themselves of these pointers.

]]> •Making kids choose: Some divorces can make it seem as if a person's family is being taken away from them, leaving them alone and without the support structure they once enjoyed and relied upon in hard times. For any number of reasons, divorcing parents frequently attempt to use their children against their ex-spouse, dragging them into the conflict and making them play favorites. Not only does such a situation make it even more difficult for kids to cope with the effects of a divorce-leading to possible depression and anger, but such tactics can actually harm a parent's chances of securing a favorable child custody agreement.

• Refusing to seek help: Although society's take on divorce divorcees has markedly evolved over more recent decades, many still worry that they will be seen as fickle or wounded by the friends, family, and coworkers they relied upon for support during their marriage. This is hardly the case, however, and opening up to a trusted friend or loved one who is removed from a person's separating household can help to both alleviate stress and offer up a fresh, supportive perspective on this chapter of life.

Divorce is rarely easy, no matter how amicable a couple's situation may be. However, avoiding commonplace mistakes such as these and working diligently with a family law attorney can help to keep the process as simple and agreeable as possible, which will undoubtedly lead to a happier, more successful life post-separation.

Source: The Huffington Post, "The 5 Worst Mistakes We Make During a Divorce," Jeff Gardere, Feb. 18, 2013

• For advice, counsel, and a clear start to a favorable settlement contact our Boulder family law page.

Common mistakes still dog many a divorce pt. I

2013-02-26T17:57:51Z

Conventional wisdom, clichés, and wide-reaching platitudes can sometimes seem to inundate a married couple's life. From quips like "never go to bed angry," to ideas of a "seven year itch," it can be hard to escape these predictable little ideas that are often problematic in real life.

However, it's not unheard of, or even uncommon, for many a predictable and surprisingly common mistake to be made in times of separation, when it has become clear that remaining married is neither possible nor healthy. Couples at all stages of the divorce process and in all parts of the country, Colorado included, can make the mistake of acting out in pain, anger, or a craving for revenge against their former spouse and the events that have brought them to court.

]]> A few mistakes frequently made during a divorce can be directly pointed to. When one or more of these blunders are committed as a couple splits, even the best of intentions can be undone:

• Refusing to throw in the towel: While many will do all they can to save their marriage, couples should be honest with each other and themselves about when a relationship has been damaged beyond repair. In many cases, both must learn to let go and move on.

• Feeding the habit: Having a partner to be with day after day can often create a sort of addition to support. As a result, some husbands and wives who are in the midst of a divorce will send their ex constant emails, text messages, or even persistent phone calls. Not only can this mistake make the separation process more difficult, but could qualify as harassment in divorce court.

•Dating too soon: Dating too quickly after a divorce can upset an ex-spouse who may then decide to fight more viciously for assets, property, and even custody rights. Doing so, however, can lead to added emotional distress and even potential questions of infidelity during legal mediations.

Any of these mistakes can make what may have been a smooth and relatively quick divorce settlement become a drawn-out and fierce fight. Even if a couple does everything right and acts both responsibly and amicably through a divorce, the help of a family law attorney is essential for securing a proper and just settlement.

Source: The Huffington Post, "The 5 Worst Mistakes We Make During a Divorce," Jeff Gardere, Feb. 18, 2013

Game on: date set for Kardashian and Humphries's divorce

2013-02-20T18:21:44Z

In most cases, it is not only less stressful but less costly to reach a finalized divorce agreement as quickly as possible. Whatever the reasons may be: children, especially high tensions between spouses, or important matters of personal careers at stake, the faster a legal separation is established, the sooner both parties can begin to carry on with their own lives.

One high-profile celebrity split that seems to have so far belied these ideas of expediency has been that of starlet Kim Kardiashian and her estranged husband, NBA player Kris Humphries. While the two have been living separate lives for years now and only remained together as a wedded couple for 72 days, the two have failed to come to legal terms that would declare them formally divorced. As Americans both across the country and right here in Colorado have tracked their predicament with both fixation and disgust, it now appears that a full and final split is soon-approaching.

]]> A Superior Court Judge presiding over the couple's case has determined that May 6^th will mark the beginning of their legal divorce trial. The decision appears to be a clear victory for Kardashian, She, now paired with hip hop superstar Kanye West and expecting their first child, had hoped to finalize a separation from Humphries before her expected July due date.

Humphries attorney reportedly objected over the setting of a specific date; the Brooklyn Nets star and his legal team had been hoping to gather enough evidence to prove the marriage a fraud, thus opening up the possibility of an annulment rather than divorce. The Superior Court Judge declared that enough time had passed without the forwarding of this evidence, and that Humphries's commitment to NBA games through June held no sway over when the trial should begin.

The stakes, both personal and financial, appear to be very high for all parties involved in this divorce case. As property and assets are divided, and potential alimony payments are established, the terms of the final divorce could shape the lives of both Humphries and Kardashian for decades to come. With so much on the line, those entering the divorce process should contact a skilled family law attorney as quickly as possible.

Source: KOAA, "Judge sets trial date for Kardashian divorce case," Alyse Rzemek, Feb. 15, 2013

• Divorce terms can change not only the fate of thousands or even millions of dollars, but can crucially impact both partners' future families To begin the process of coming to a favorable settlement, contact our Boulder family law page.

Heavy drinking can be a fast-track to divorce

2013-02-12T17:27:22Z

When a couple typically recites their wedding vows, a promise often made to one another between husband and wife-to be is to remain at each others' side until "death do us part." That promise, however, can become strained to its breaking point by a number of factors that are entirely invisible on one's wedding day.

According to new research published in a forthcoming issue of the journal Alcoholism: Clinical & Experimental Research, marriages in which one or both spouses suffer from a severe drinking problem are fraught with an especially heightened risk of divorce. Alcoholism is a serious health issue that haunts married couples across all of America, Colorado included.

]]> A marriage in which both partners have drinking problems runs a raised risk of divorce, but according to the study, which will be published in May, situations involving one heavy drinker and one relatively sober spouse are at the greatest risk of ending in premature separation.

The study reached these and other conclusions about alcohol's effect on a marriage using data from nearly 20,000 married couples. Surprisingly, the study noted that couples in which the wife suffered from alcoholism were most likely to end up filing for divorce. The correlation may suggest a double standard under which heavy drinking on a man's part is more often tolerated than amongst wives.

Alcoholism is a marriage is linked to spousal abuse and domestic violence, both of which are firm grounds for seeking separation. Additional scientific research has revealed that regular alcohol abuse may make it more difficult for the brain to recover from trauma, only exasperating the conduct and communication problems a couple may be facing.

Although couples should always try to be as cognizant as possible of their partner's drinking habits before tying the knot, sometimes it is impossible to know that a drinking problem will develop, or already exists. If a spouse's alcohol abuse has become pronounced, it may be time to explore the process of a divorce.

Source: Fox News, "Heavy drinking raises risk of divorce," Stephanie Pappas, Feb. 6, 2013

• Watching a loved one struggle with alcohol issues can be heartbreaking. It can also be dangerous for the rest of a household. To explore the options available to married couples in need to separation, contact our Boulder family law page.

Pot-using parents may pay high price of divorce

2013-02-05T19:13:51Z

With the recent legalization of small amounts of recreational marijuana in Colorado, there's hardly a legal situation or relationship that won't in some way be reformed by the increasing presence of the drug in everyday life. Divorce, and other matters of family law, are destined to be directly impacted by marijuana's partial legalization; those who are considering getting a divorce or are currently unsure of their marriage will want to take heed of pot's new role in court proceedings.

Although the drug has become legalized in small quantities, spouses and parents are sure to have a variety of disparate opinions on the proper way to approach marijuana. A parent who approaches the drug as being no different than the occasional (or even regular) after-dinner drink may meet strong opposition from the rest of the family.

]]> For many decades a parent's use of drugs has had a strong bearing on the determination of fault, child custody, and asset division during divorce. Now, however, the legal status of marijuana may frustrate the status quo image of drug use impairing one's ability to provide and parent in a responsible manner.

If a parent is a regular marijuana user but can demonstrate that he or she can keep the drug away from the presence of children, spouses, attorneys, and judges alike may have no choice but to view getting high now and then as akin to the tempered, recreational drinking that is commonplace in many Colorado homes.

Custody agreements of the future may include intermittent drug testing to police a mother or father's use of marijuana while children are being cared for, and a profitable, legal growing operation in a family's basement may become contested property during separation negotiations.

Simply put, it is still unclear just how wide and potent of an impact legal marijuana, its use, and its growing will have on future Colorado divorces.

In such a situation, however, the last thing a parent and/or spouse should do is rely on hearsay or assumptions when considering or confronted with a divorce. Working closely with a family law attorney can clear up any questions about what role legal drug can play in the courtroom, as well as improve the overall likelihood of a favorable settlement.

Source: Denverpost, "Parenting and pot: Colorado divorce lawyers' perspective on marijuana legalization," Alexandra White and Carolyn Witkus," Jan. 27, 2013