Archive for the ‘Divorce’ Category

Ways to Limit Divorce Costs

divorce costsAsk anybody who has been through a divorce themselves, or who has somebody close to them who has gone through the experience, and one of the first things they’re likely to comment on is the tremendous expense involved. Though your focus may be on the emotional and logistical impact of ending your marriage, the divorce process itself can be remarkably expensive. The good news is that there are several practical ways to limit divorce costs. Here are some helpful hints on how to minimize divorce’s financial impact.

  • Be cooperative with document requests. You may not want to supply the information that has been requested, and filling out forms is certainly frustrating, but remember that in the legal world time is money. The longer you delay or resist the process, the more requests your attorney needs to send you, and you’re going to be billed each and every time. Also, don’t rely on your attorney to gather the information or get it from an outside source – doing that will be much more expensive than providing it yourself.
  • Resist responding to every provocation with a phone call to your attorney’s office. It’s easy to get upset by something your spouse has said or done, and if it’s an emergency you should call right away. But if they’re just being irritating or immature, or if you receive a notification in the mail of a court date or filing, remember that calling your divorce lawyer sets the clock running, and you’ll be billed for their time. It’s much more cost effective to talk to an empathetic friend, or write down what happened in a journal. That way you’ll have a record, and when you have your next scheduled appointment or call with your lawyer you can review your journal and decide whether it was important enough to bring up with them then. In many cases, after the initial feeling of upset has passed you’ll realize that it was just an annoyance that wasn’t worth the billable hours.
  • Be willing to be reasonable. When you’re going through a divorce it is tempting to fight over every aspect and want to have your day in court, but mediation and negotiation is much less expensive and can help move your life forward with less pain and frustration.

If you are considering divorce, you need a compassionate legal advocate who will listen to your goals and help you move forward with as little frustration as possible. Call our office today to learn more about our divorce services.

What If Your Spouse Refuses to Sign the Divorce Papers?

divorceEven the most agreeable couples’ divorces can get contentious when it comes to discussions of money and child custody, but most divorces are uncontested. This means that both spouses agree to dissolve the marriage. But what happens if your spouse refuses to sign the divorce papers?

In New Jersey, if one spouse becomes nonresponsive and fails to answer the complaint or show up for court, the other can file for a default judgment of divorce. This means the spouse who wants the divorce follows a legal procedure for serving the divorce papers to their spouse, then waits a required period of 35 days, after which they have 60 days to ask the judge to give them a default divorce.

This process can be complicated. A hearing still needs to be held, and the spouse requesting the default process has to notify the noncompliant spouse of the hearing date and provide them with a proposal for the final terms of the divorce. They may also have to ask the court for input on child support, custody and equitable distribution of property. If the unresponsive souse doesn’t appear, the judge will usually grant the default, but if they do show up and object, the judge may vacate the default process and set a new date for the proceedings to continue.

This process is not just available for situations where one spouse is uncooperative: many use it in order to save money on court filings and attorney representation, though this is not recommended unless you already have a settlement agreement in place for which both spouses have had the benefit of legal advice.

If you’re divorcing in Pennsylvania, there’s a statutory period of separation that must elapse for a divorce to be complete. That period of separation was two years before December 2016, but for divorces filed after that date the period is now one year. All economic claims must be satisfied, and the period of separation must have passed, after which the filing spouse can send an Affidavit and Counter-Affidavit to the noncompliant spouse to give them the opportunity to object. Their objection can only be based on the statutory period not having been satisfied or economic claims not having been addressed. Without a Counter-Affidavit being filed within 20 days of service of the Affidavit, the divorce will be granted.

If you are facing a contentious divorce, and need legal help, contact our office today to set up an appointment with one of our understanding attorneys.

How are Debts Divided in the Event of a Contested Divorce?

contested divorceGoing through a divorce is rarely a “feel-good” process, but some situations are more challenging than others. When the two parties involved in a divorce are unable to reach an agreement about issues such as the division of assets, child support and custody, or even whether to get a divorce at all, it is referred to as a contested divorce. The points of contention in contested divorces generally require intervention through the court system.

The division of a couple’s debts is one of the most difficult discussions in a contested divorce. Money issues are frequently a contributing factor in a marriage dissolving, so it’s no wonder that outstanding bills are cause for disagreement. Much of the question about dividing up debt pursues an answer as to when the debt was incurred. If a debt existed in one of the partners’ names before the marriage took place, it will generally remain with that individual. By contrast, debts that are acquired after the marriage takes place is generally considered a shared debt, even if it is only in one of the spouse’s names. This means that it will need to be part of the equitable distribution process in which assets and liabilities are calculated and divided in half. One exception to this is when there is a prenuptial agreement in place that specifically addresses the issue of division of debt.

When the court makes a decision about dividing marital debt, there are many aspects of the situation that need to be considered. For example, if a debt is in one person’s name and legally needs to remain that way but is considered marital, there will likely be an offset of property to make up for the debt remaining in that individual’s name. Other considerations include earnings capacity and the financial status of each partner both before and during the marriage, who is responsible for incurring the debt and whether that individual gained more benefit than the other, whether the debt was incurred with the other spouse’s knowledge, and more.

If you are approaching a divorce, it is best to eliminate debt before the process, but that’s not always possible. If you need assistance in reaching an agreement with your spouse or need representation in a divorce proceeding, contact Reinherz Law to set up a convenient time to meet.

How to Protect Your Business Assets During a Divorce

preparations for divorceMany happily married people will shake their head in wonder at the notion of working with their spouse, but there are many who have successfully pursued that type of partnership – and of course, there are others for whom the shared interest in a business was the final nail in the coffin of their marriage. Whether your business dealings contributed to a divorce decision or not, you still need to protect your business assets as you dissolve your marriage. Here are some important things you need to know.

Your Business May or May Not Be a Marital Asset

An important question is whether you owned your business before you got married or not. If you started your business before the marriage, then it will likely be considered individual property rather than a marital asset. If this is the case, then the question becomes whether it has the same value as it did before the marriage, and whether or not it contributed money to household income. An increase in value will be subject to equitable distribution and will not be protected unless it was specifically addressed in a separate agreement. It is also important to recognize that even in situations where a business was owned before the marriage, if your spouse contributed significantly to the business since the marriage, then the business will likely be considered marital property and will need to be divided equitably.

Protecting the Business Before A Divorce

Smart business owners take certain steps to guard against the impact of a divorce long before trouble arises. The best way to do this is to follow these steps:

  • Keep family finances separate from the business
  • Make sure that you are being paid a reasonable salary from the business rather than simply funding the family from profits
  • Do not employ your spouse in the business

Where A Business Is A Marital Asset

If the business is a marital asset and you want to protect it and keep it for yourself in the divorce, then you will likely need to provide something of equivalent value to your spouse in exchange for their share of the business. This may represent their share of a marital home, stock, or other assets. To make sure that you are treated fairly, and the business survives, get a good appraisal of the business’ value, and arrange for payments over time to prevent a cash flow problem.

If you are in the process of getting a divorce or want to take proactive steps to preserve your business in case of divorce, contact our office today to set up a time to discuss your needs.

How is a 401(k) Account Divided in a Divorce?

Reinherz Bankruptcy Lawyer Philadelphia South JerseyWhen a couple makes the decision to end their marriage, there are a number of steps that must be taken. If the couple has children, then issues of custody need to be addressed, and so does the matter of child support. In all cases, couples need to go through the steps of dividing their marital property equitably or in adherence to a prenuptial agreement. One of the more intricate processes involved in this equitable distribution involves splitting a 401(k) retirement account.

A 401(k) is a specific type of employer-sponsored retirement savings plan. It provides an employee with the ability to set aside a percentage of their wages before taxes are deducted in a special account, and the funds held are not taxed until they are withdrawn. Many employers offer a matching program as a benefit, depositing a certain amount for every dollar that the employee saves in the account. Though the funds in a 401(k) account are saved and deposited in a single person’s name, if they were earned during the course of the marriage then they are a marital asset that needs to be divided in the same way that a home or other possession does. Unfortunately, that is more easily said than done and requires the involvement of the 401(k) plan’s administrator.

The 401(k) division is a multistep process that begins with the divorce decree and another legal document called a qualified domestic relations order. Upon receipt of these two documents, the plan’s administrator follows federal laws by which the other spouse’s funds are dispersed. There are generally three options available, including rolling the funds into another retirement plan, leaving the shares intact until such time as the owner spouse retires, or taking the distribution in cash. The last option would incur a 10 percent penalty unless the spouse receiving the distribution is over 59 ½ years old. The income would also be taxed.

The other option for splitting a 401(k) is to use its value as an offset against other marital property. To learn about which option would be best for your financial needs, contact the attorneys at Reinherz Law to set up a consultation with one of our compassionate attorneys.

Can You Afford to Get a Divorce?

divorceIt is one of the greatest frustrations unhappy spouses can face. The absolute knowledge that their marriage is not a good situation for them, combined with the financial uncertainty of what a divorce will cost them, and whether they’ll be economically secure after their marriage has ended.

The truth is that there’s no amount of money that makes it worthwhile to stay inside of a toxic marriage. The longer you stay in an unhappy situation, the worse it is likely to get. The risk of domestic violence increases, the impact of depression becomes more significant, and the marital assets are likely to grow – making the equitable division of assets more adversarial. In almost all cases it is better to leave when you know that the marriage is irreparable rather than waiting, and you can make the process less costly by taking advantage of creative divorce solutions offered by the experienced family law attorneys at Reinherz Law.

There are a number of ways to minimize the costs of getting a divorce. These include:

  • Gathering your financial information ahead of time instead of making it your attorney’s responsibility. Any time your attorney has to ask your spouse, opposing counsel or a financial institution for documents, it’s going to cost you money. If you take the initiative to gather your documents and financial statements yourself, you will save yourself money, and probably get the job done faster too.
  • Avoid calling your attorney at every turn. It is tempting to contact them to complain about every grievance or report every conversation or wrongdoing from your spouse, but each time you do it, you’re costing yourself money. Keep a list of things you want to tell your lawyer, then email them all at once. This also gives you time to cool down, letting you reconsider whether you want your attorney to spend billable hours on every slight or disagreement.
  • When you have a question on a non-legal issue, see if you can find the answer yourself, or ask your attorney’s assistant.
  • Try speaking directly to your spouse on small issues. Anything that you can resolve for yourself will save you money.

There’s no doubt that a divorce can be expensive, but nobody should stay in a marriage that makes them unhappy. If you’re smart in your approach to your divorce, you can minimize unnecessary litigation and animosity with your spouse. For information on the divorce solutions available to you, contact Reinherz Law today to set up a consultation.

Do Divorce Rates Really Go Up After the Holidays?

With the holiday season ending and the start of a New Year, many family law practices are readying themselves for a strange phenomenon that occurs every year in March, and again in August. As strange as it may sound, there is an obvious increase in the number of divorces that are filed during those months, immediately after the winter holidays and summer vacation seasons.

Though there are some who believe that it’s a myth, there is scientific evidence that more people divorce after the holidays than at any other time of year. A study conducted at the University of Washington was recently highlighted at the Annual Meeting of the American Sociological Association, where researchers Julie Brines and Brian Serafini presented their evidence based on the state of Washington, where they are located, as well as data from the states of Ohio, Minnesota, Florida and Arizona. Though the scientists weren’t sure what to expect and wondered if it was a myth that divorce rates spike after vacation time, Ms. Brines said that what they found was unmistakable. “It was very robust from year to year, and very robust across all counties.”

In analyzing the evidence, the researchers have advanced a theory that makes a lot of sense. They believe that when families go on vacation or celebrate the holidays, it can bring into sharp focus the various conflicts and tensions that are present throughout the year. Couples anticipate going on vacation or celebrating with family as a time to mend relationships and smooth over problems that have been brewing. Instead of finding that their problems are solved, the added stress of being together for more extended periods, holiday and vacation expenses and other conflicts become even more pronounced. When you combine these factors with the heightened expectations and hopes of resolution, the letdown and disappointment can lead to giving up and filing for divorce.

Speaking of this dynamic, Brines says, “People tend to face the holidays with rising expectations, despite what disappointments they might have had in years past. They represent periods in the year when there’s the anticipation or the opportunity for a new beginning, a new start, something different, a transition into a new period of life.”

If the holidays have found you ready to file for divorce, or facing a request for a divorce from your spouse, you need compassionate legal representation. Contact the professionals at Reinherz Law to learn more about how we can help.

Unexpected and Rarely Spoken of “Benefits” of Divorce

While it is not often spoken of, there are perks or benefits to divorce when you have been unhappily married for some time. Although divorce is certainly never easy, even when both parties decide to amicably split, there are unexpected positives that come out of the experience that many don’t see due to the overwhelming feelings of sadness and regret that often come with divorce proceedings.

For each individual person, the unexpected upside will be its own unique journey. However, the following are a few common perks to getting through a divorce.

Better Understand of Appealing (and Unappealing) Attributes

While things not working out is generally seen as a negative, having a marriage that ultimately ended can be a lesson in disguise. The factors that led to the end of the marriage can be enlightening when it comes to choosing your next partner. With the wisdom you have gained from your divorce, you can now make better decisions in the future.

Recreate Your Own Image

When you have been married for a long time, chances are your sense of self has molded with your spouse. Further, with the routine of marriage, often people lose themselves in getting through the repetitive nature of domestic life. Now that your marriage has ended, you can reinvent yourself by picking up new hobbies or even as simple as once a week ordering in when you would have cooked, or picking up cooking since you have more time.

Better Health

There has been research that shows married people live longer but that only applies to those that are part of a happy marriage, not simply married. In fact, the stress that comes with an unhappy marriage can lead to compromised health. There has been research that has shown a link between heightened stress and an increase of health-related ailments. This may be why so many divorcees focus on their health after a divorce.

Increased Autonomy

From finances to how you spend your time, there is an increased sense of autonomy that comes from divorce. Whether you want to splurge on a gallon of ice cream that previously didn’t fit your agreed upon budget or decide to go out on a Sunday night that was always spent on television with your spouse, your life becomes your own again after divorce in both positive and negative ways.

If you are considering divorce, you could experience some of the positives but only if you have the right legal representation to make the divorce process easier. Contact our team today to find out how we can lessen the burden of the process off your shoulders.

How Divorce is Different in Your 30s

Divorce is difficult at any age. Whether you are still newlyweds or have seen your marriage through the decades, deciding to call it quits can be the hardest decision a person faces. However, it seems that getting divorced in your thirties is among the worst times to get divorced for those going through it and in some ways, they are correct in their feeling.

Compared to the decade of life prior, those in their 30s often have a family but their children are not grown. This means they have younger children or slightly older children with a lot of questions and a lot of impact that they will soon face. Unlike couples in their older years, the kids cannot be as easily spared from the ramifications. After all, if your child is a teenager or older, there are only logistics that will be affected as compared to their childhood.

Additionally, those in their 20s either don’t yet have children or have young children. The much younger children are often much easier to transition through the process as they haven’t lived with both parents quite as long. Additionally, they haven’t yet set the same amount of habits nor are they are in the routine for family traditions. This makes it easier to reset and start anew. After all, if you only have had one or two Christmases that you will likely forget with both parents, having a new tradition with one and then the other is not quite as challenging.

Even further, those in their 30s have their own habits established. When you divorce in your 20s, there are plenty of single people and your life has not yet fallen into a routine. Once you hit 30, you have become used to a certain way of living. Upsetting that way of living can be challenging at best and can lead to a lost sense of self at worst. But there are times when divorce at this age is not avoidable.

When this is the case, be sure to identify separate assets to ensure you can restart your life with what you have. Further, be sure to set a budget before the divorce is finalized to better transition into your new life. When possible, look into paying off all debts so both spouses can leave and start a new life rather than deal with the one that ended.

Contact our team today for a free consultation. We have experience with divorce at all ages and can lend our experience to this difficult time in your life.

Keeping Your Family Together During Divorce

Your marriage might be ending but your family is not. While you and your spouse decide how to separate, the family itself should not be parting ways. Instead, there should be a new solution that works better for your family dynamic that considers the needs of each family member. Feeling isolated, unheard or that everything is changing too quickly can lead to a lot of anxiety for children and parents alike.

Assuring your children that not much will change won’t help in the long run. After all, everything certainly will change in their lives. However, having an honest dialogue about what they can expect and how things will move forward can help establish a routine that will help everyone adjust and stay together, even as things change.

Routine

Setting up a routine for each day, week and month will help you and your ex-spouse keep things going. If your child has a lot of extracurricular activities, it should be discussed how they will be paid for and how rides to and from those activities will be handled. Additionally, setting up who will attend different events can help children feel they are still being supported, even as things get more hectic.

Set Boundaries

While you may have angry feelings toward your ex, your child should not be affected. Unless the spouse has been abusive toward you or your child, be sure to help the relationship stay strong. This means not saying negative things about the other parent or trying to diminish them in the child’s life. Even further, it means setting boundaries with your co-parent and communicating on what will be said to and in front of the child to maintain healthy family ties.

Staying Together

If your spouse won’t be living with your child, make sure there is an opportunity for them to see the child regularly and be part of more everyday activities. While you may not want to see them regularly, feeling as though they are losing a parent will likely make a child resentful and affect their mental health. Even though a lot will change for your child, keeping the family together by regularly having contact and activities can lead to a healthier childhood.

If you are considering divorce, contact us today. Not only do we handle divorce cases with the professionalism that leads to better outcomes for our clients, we understand how to make the process easier on the children involved.

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