Rutherford, mostly known for her time spent on the hit television show "Gossip Girl," was married to a German man with whom she had two children. The children are still young, only ages 6 and 3, and Rutherford has indicated that she has expended an enormous amount of energy - and money - in the ongoing dispute. So much so that she recently said she has spent "every penny."
]]> The low-point in the proceedings for Rutherford was probably last year when a judge ruled that the two young children should reside with her ex-husband primarily. He lives in Monoco in Europe.As this case goes to show, a child custody dispute can leave the parties desperate and searching for answers. However, for many couples going through a divorce, and perhaps some of our Maryland readers, the proceedings do not need to be defined by tension and conflict. It is usually in the best interests of the child or children involved to attempt to work out a mutually agreeable arrangement, if at all possible. Joint custody is always an option, and creative arrangements for physical custody and legal custody are also usually encouraged, as long as the plan is satisfactory to both parents and prolonged litigation can be avoided.
Source: The Huffington Post, "Kelly Rutherford Custody Battle: Actress Say She's Spent 'Every Penny' On Custody Case," April 29, 2013
]]>There are many options for parents who are looking for smart ways to save money for a child's education. Specific types of accounts, like the popular 529 plan, are some of the most common methods of utilizing a long-term savings mechanism. In deciding the division of property in a divorce, these types of accounts will need to be addressed.
]]> These accounts, although always set up with the child's best interest in mind, can be subjected to a split in the divorce process. The judge orders the funds divided equally between the parents, and then it is up to each individual ex-spouse to decide how to move forward with college savings.However, the article indicates that the best idea is usually to attempt to come up with an agreement outside of court that will ensure that funds are available for the child's college education. This may sound like wishful thinking for those couples who can't agree on any issue in a divorce, but saving for college is an obvious choice for an issue to bridge the gap between bitter divorce participants because of the intention for those funds to help the child. Reaching an agreement that can be maintained post-divorce can leave both spouses with the feeling that at least one good thing has come out of a potentially negative situation.
Source: usnews.com, "Discuss College Savings During Divorce Process," Reyna Gobel, April 29, 2013
]]>A recent article pointed out some of the ways in which the division of property can impact certain financial bedrocks that many people depend on, such as retirement accounts and insurance. One way or another a retirement account will most likely to be considered part of the marital property, and therefore subject to equitable division. But, after the divorce is over and these assets have been divided, retirement planning can be altered going forward for the newly-single person. Contribution amounts may need to be increased, and distribution amounts may be lower for a single person.
]]> Insurance needs may change as well, including the possibility of finding new health insurance coverage or adding long-term care insurance. If a person isn't going to have a spouse to help care for them in the elder years, steps need to be taken to ensure a person can live in dignity.Asset division can be tough: there is no question about it. That is why it is usually best for a divorcing couple to come to an agreement on their own in order to avoid a protracted fight through litigation. However, this is not always possible. When a fight over property is brewing, knowing the options for the best strategy in court can make all the difference, perhaps even years down the line.
Source: The Seattle Times, "5 ways divorce could affect your finances," Stuart Pfeifer, April 20, 2013
]]>Although contentious divorce litigation is more and more commonly seen as something to avoid by divorcing couples and their attorneys alike, unfortunately litigation may be the only path for some people. Issues that inevitably come up in a divorce for many couples, such as deciding child custody, child support and asset division, all have the potential to inspire strong emotional reactions. And, for millions of married couples throughout the country, the most significant asset at issue is the family home.
]]> A house can be more than just a building on which someone pays a mortgage payment every month. There can be sentimental value as well, or perhaps the house has been the one and only home for the divorcing couple's children. When it comes to deciding the fate of the house, oftentimes there is more at stake than a simple valuation of it as an asset.A recent article pointed out an interesting fact when it comes to a mortgage which is signed by both of the divorcing individuals: just because a court awards the home to one over the other doesn't mean that only one name remains on the mortgage. Both individuals will still be responsible for the debt, unless an alternate solution is reached with the mortgage lender.
Whatever the property involved, reaching an equitable division is sometimes easier said than done. Staying in the right frame of mind, as well as knowing all of the options to press your case, can be the best approach to this difficult issue.
Source: SummitDaily.com, "Financial Facts: How divorce affects your mortgage," Bob Kieber, April 13, 2013
]]>According to a recent article, thinking about your financial situation should be a primary concern. This is especially true if the split is going to end up being a high asset divorce. After all, while many divorces will include disputes over issues such as child custody, child support and alimony, it is inevitable that all divorces must address asset division. When it comes to this issue, the recent article listed a few suggestions to help an individual come out of a divorce on a sound financial footing.
]]> The primary suggestion in the article is that, if a person has decided that divorce is the only option, there are certain advantages to being the first to file. Among the reasons is the preparation that a person can put into the filing, gathering all necessary documents and taking stock of all of the couple's assets while they are still mutually accessible. This will help to avoid disclosure issues during the actual divorce process.But, even before the divorce filing is made, the article suggests that money needs to be saved to fund the split. Most people probably hope that their divorce can go smoothly and avoid expensive litigation, but in a high asset divorce there can be a significant amount of assets at stake, and the other party may not be so amenable to dividing property interests, retirement plans or business assets.
Source: The Week, "Making money: Planning for divorce, and more," Sergio Hernandez, April 8, 2013
]]>If a state allows same-sex marriage, that state must also allow same-sex divorce. Any type of divorce has the potential to involve all sorts of complicated issues, but a same-sex divorce could get especially complicated in one particular area: child custody.
]]> As a recent article pointed out, it is impossible for both members of a same-sex couple to be a child's biological parent. Either one member is and the other isn't, or they both aren't because the child was adopted. Same-sex couples who want their own biological children employ a variety of methods, including surrogacy, artificial insemination or even insemination by a close friend who agrees to give up his parental rights. All of these issues are relatively new to family law courts, and the decisions in many of these cases will be heavily scrutinized in the coming years.A child custody dispute doesn't have to lead to animosity and prolonged litigation. Oftentimes, the best solution for a couple, even a same-sex couple, is to reach an agreement outside of court based on the best interests of the child. Doing so can ensure that a child feels loved and welcomed in all circumstances, regardless of whether the child is the product of a traditional or same-sex marriage.
Source: ydr.com, "Same-sex marriage can cause legal issues," Teresa McMinn, March 31, 2013
]]>Many divorces center on important assets such as real estate and retirement accounts, but Hamm's divorce will seemingly be focused primarily on his most precious possessions: his business assets. According to the reports, Hamm owns 68 percent of a company known as Continental Resources - a company his wife was apparently instrumental in helping him build.
]]> Hamm's wife filed for a divorce back in May of last year. The filing was allegedly initiated due to her discovery that Hamm had been unfaithful. The initial reports covering the couple could not determine whether or not the high-profile couple had signed a prenuptial agreement prior to their wedding, which took place almost 25 years ago.Divorces involving complex asset division are often in a league of their own. Almost anyone going through a divorce, no matter what the worth of their assets and marital property, will have to deal with the issue of asset division. But the more there is to divide the harder the decisions can get. This is especially true if the assets involved are worth billions of dollars and a company's future hangs in the balance.
Source: abc News, "Hamm Divorce Could Be Most Expensive of All Time," March 24, 2013
]]>Many of our Maryland readers may not know that there are many different ways that a divorce can have an adverse effect on a person's financial situation. High asset divorces can include disputes over retirement plans, business assets, pensions and property interests. However, a recent article highlighted a few other areas that may also see a financial impact.
]]> First, the article mentions legal fees and child support. Both could be new expenditures for a divorced spouse to begin to accommodate into their financial plans. While legal fees may be paid off quickly in some case, child support is often an ongoing, year-after-year commitment that could have result in a serious change in a person's lifestyle.Next, the article mentions tax and retirement planning. A single person may be in a different tax bracket than a married couple filing jointly. And, if 401(k)'s or pensions are part of a property division settlement, most people will need to reconfigure their retirement plans. This could include an emphasis on placing more funds in an account on a monthly basis, or even delaying retirement altogether.
Lastly, the article mentions insurance coverage. While the article focuses mostly on long-term insurance and the changes a divorce would bring about, health insurance is another consideration for divorcing couples. This is especially true when the couple has health insurance solely through one spouse's employer and the other spouse has no coverage options as a single person.
Deciding to file for divorce can be a heartbreaking experience. But, when the decision is made it needs to be accompanied by a good, solid financial plan on how to move forward in the aftermath.
Source: Forbes, "5 Ways Divorce Takes Your Money," Kenneth Rapoza, March 12, 2013
]]>Millions of Maryland residents depend on child support. The financial needs of a child, which can include every day expenses, medical needs and extracurricular expenses, are meant to be satisfied by both parents - regardless of the relationship between the two of them. Child support guidelines help courts decide how much the non-custodial parents should pay, and failure to pay child support can put the receiving party in an awkward position. Not only that, but the non-paying parent could face penalties as well.
]]> With the needs of Maryland parents in mind, the Department of Human Resources - as part of the department's improvements - has made a sizeable effort to increase the amount of child support collected in the state. According to a recent report, the result has been a record high in the collections amount.Despite the department's improvements, some state funds originally earmarked for the department will not be disbursed. Legislators have informed the head of the department that all of the recommendations detailed in the previous audit must be satisfied before the full amount of funds will be transferred for the department's budget. However, the legislators did recognize the positive improvements that have been completed thus far.
There are probably many parents in Maryland who are monitoring the progress made by the Department of Human Resources. When a parent depends on child support, every bit of progress can be important.
Source: The Daily Record, "Child support agency makes progress on reforms," Llana Kowarski, March 6, 2013
]]>This issue can be extremely complex or relatively easy. If the divorced spouses agreed to a child custody plan during the divorce process, perhaps the goodwill exists for them to agree to a custody modification. However, if the custody arrangement was the result of protracted fighting and litigation, a child custody dispute could play out all over again.
]]> When a Maryland court needs to make a decision on child custody, whether regarding physical custody or legal custody, that court will do so under the standard of "best interests of the child." This is admittedly a subjective standard, but with so many factors to consider it does provide a broad perspective from which to view each situation.When one parent wants to relocate some issues in the existing agreement will probably need to be modified. If this can be done without a custody dispute, both parties will be better off, as will their children. However, for either the parent trying to move or the parent trying to stay, knowing your rights and options in this situation could make a big difference in reaching a favorable resolution to the issue.
Source: WRAL Techwire, "Child custody in today's mobile society," William S. Durr, Feb. 27, 2013
]]>Maryland courts are almost certainly paying more attention to these issues. Why is that? Well, when a court is reviewing a matter that is novel and an analogous issue has not been presented in the state before, one of the first steps is to review the decisions made in other states with the same or similar laws. In doing so, a judge in Maryland could rely on the reasoning of a judge from another state to come to a decision on a tough issue. In the case of child custody, Maryland courts may soon be reviewing a recent decision by the Kansas Supreme Court.
]]> In the case at issue, two same-sex parents were embroiled in a child custody dispute. The problem was that one of the partners was artificially inseminated and was the biological mother of the child, while the other partner was a parent under a co-parenting plan. After the couple broke up, the non-biological parent was awarded parenting time and visitation rights. The biological parent argued that this violated her constitutional rights.The court sided with the non-biological parent, ruling that the co-parenting arrangement that they had previously agreed to was indeed valid. However, the court ordered the original court to hear additional evidence on what arrangement would ultimately be in the best interests of the child.
Cases like this will be noted by many in Maryland, especially in light of the recent change in the law. These unique circumstances will begin to pop up eventually, and those who find themselves in a unique situation would be wise to get all of the best information about the legal options.
Source: cjonline.com, "Parental rights upheld for same-sex partner," Feb. 22, 2013
]]>According to the report, people who have gone through a divorce are more likely to have less money to retire on than those who do not divorce. The reason? It can cost more for a newly single person to carry on with the same standard of living as they enjoyed during a marriage, therefore reducing the amount of money they can sock away in bank accounts for retirement.
]]> The article goes on to suggest that making retirement accounts a priority during asset division negotiations - even above and beyond the home - can ultimately be the best strategy for long-term financial security. And, if a re-marriage comes along down the line, it can be wise to have a prenuptial agreement which specifically states that those accounts will remain in separate hands.Property division always has the potential to be contentious during divorce proceedings. This is even more likely to be the case in complex property division, which involves things like artwork, business assets or retirement accounts. Almost no one goes into a divorce hoping the process will be drawn out and result in lengthy - and expensive - litigation. For most couples, a negotiated settlement is the best way to resolve the end of a marriage. The tip from the article can be important though - a spouse may want to make the retirement account their first pick in the asset division negotiations.
Source: CNNMoney, "Rebuild your nest egg after divorce or widowhood," Beth Braverman, Donna Rosato and Penelope Wang, Feb. 18, 2013
]]>Actor Brendan Fraser has found himself in an alimony dispute, as he has recently sought to reduce the payments he was ordered to make in his divorce from his wife in 2009. At that time, Fraser was a bit more well-known than he is today, having starred in the popular "Mummy" movie franchise. Now, however, Fraser is arguing that he is not making the income he used to, and as such would like an alimony modification.
]]> Many times a divorcing couple will arrive at an alimony agreement on their own, but other times the orders come from the court. Like child support orders, an alimony order is usually open to modification under certain circumstances, but the bar to be met to get a modification can be quite high. Fraser was originally ordered to pay $900,000 per year in alimony.As is the case in most family laws problems, the most desirable outcome is for the parties to work out an agreement outside of court. But that is not always possible. While most people with an alimony order don't have to make annual payments of $900,000, in today's economy every dollar counts. Before pursuing an alimony modification, however, it is wise to review all of the options, as well as the factors the court will consider in making the decision.
Source: contactmusic.com, "Brendan Fraser - Broke Brendan Fraser Wants Alimony Payments Reduced," Feb. 11, 2013
]]>According to a recent article, these new laws may even have affected couples who had already decided to split last year, but held off until the beginning of this year so that they could file a joint tax return. The top income tax bracket was increased as part of the "fiscal cliff" deal, and many couples may have wanted to avoid an increase in the personal income tax.
]]> Beyond taxes, bank accounts, business assets or even artwork can either increase or decrease in value over time, and many couples may have found it advantageous to put off a divorce filing until this year. Of course, even if there was an agreement to put of the filing, that doesn't necessarily mean that there has been an agreement on the division of property.Going through a divorce is usually a highly emotional and stressful time for all parties involved. When a couple can't agree on certain issues, like asset division, the likelihood of contentious litigation increases. For most couples, the best result in a divorce can usually be obtained through negotiation and give-and-take - compromise, in other words. Coming to an out-of-court agreement on the issues, including property division, can save all of the parties involved a great deal of stress, heartache and money.
Source: The Wall Street Journal, "New Tax Rules Complicate Divorce," Arden Dale, Jan. 31, 2013
]]>Alimony, commonly referred to as "spousal support" in legal circles, is an agreement by which one divorcing spouse pays a set monthly payment to the other, usually for a set amount of time. But, as one recent article pointed out, there are a variety of factors for the court to consider when determining both the amount to be paid and the length of time the payment will be required.
]]> However, even after an initial order of alimony, changes in income or living expenses can factor into a subsequent request for a spousal support modification. It is much like child support in that sense, although the difference is that while most child support orders expire once the child reaches a certain adult age, alimony orders can last much longer.Because there are many valid reasons why one former spouse should receive spousal maintenance from the other, particular when one is better suited to make more money after sacrifices made by the other, it is usually best for the parties to reach an alimony agreement with which both are comfortable. Although this may be a tall order, doing so can alleviate concerns about future problems, including the failure to pay alimony.
Source: Business Insider, "It's Sad How Many Divorcees Are Sentenced To A Lifetime Of Alimony Payments," Geoff Williams, Jan. 28, 2013
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