Is there a Divorce Fiscal Cliff?

There has been much talk lately about a potential national "fiscal cliff" -- i.e. changes in various statuses that can have a significant economic impact.  A different kind of fiscal cliff can also exist for folks upon the finalization of their divorce.  Economically, the parties have either reached a financial agreement or a Court has made a determination about how financial assets and liabilities will be divided.  Knowing the potential cliff consequences while negotiating or while preparing to present evidence to a Court is important.  For example, the marital residence being sold can have different impacts depending on how long it has been owned whether it has positive or negative equity, whether either party can qualify for a new mortgage or lease.  Another example is the tax implications that come from being divorced and no longer being able to file jointly depending on whether spousal support is being paid or requested, depending on who is claiming the children, etc.   These are just a few limited examples.  Be sure when you are contemplating a separation or divorce that you are working with your attorney and any additional financial professionals to understand all components of assets and other finances pertaining to you and your family to seek as much protection as possible.

Gift giving

The holidays are upon and the season of gift giving can  pose challenges, new stresses and anxiety to separated parents.  Getting in a good frame of mind is important before you start making those shopping lists.  Too often parents are worried that the other parent is going to out-do them, one-up them, etc. on buying the best present or giving the present that the kids wanted the most.  Remember, holidays don't have to be about the tangible gifts.  How will you spend the season with your children so that they have great memories?  How will you give your children more of your own time and attention whether it's baking cookies, volunteering for a charitable organization, ice skating, going to the movies?  How will you make sure that any tension between you and the other parent is minimal so that the kids can enjoy being with family to share the spirit of the season?  These things could matter more than who gave the most expensive toy.

Giving Thanks

This time of year, the entire holiday season, can be very difficult for folks going through a divorce or separation, for families trying to adjust to sharing holiday time apart.  New traditions have to be formed.  New perspectives on how to celebrate have to handled.  Children will look to their parents to see that this new normal is ok; children will want to be sure that it is ok for them to smile and enjoy the wonders of the next few months.  Although it may be hard, we encourage each of you to take time and find 5 things for which you are thankful and share them with others.

We are thankful for the opportunity to help people who are facing a significant life transition and for the chance to help make a difference.  Happy Thanksgiving.

Interesting piece on military marriages from NPR this morning

http://www.npr.org/2012/11/19/165454211/military-moral-code

James Bond in your divorce or custody case

Interesting article on the use of technology by spouses and parents involved in family law disputes.  It is extremely important to note that anyone even considering such things tread very carefully.  There are significant criminal and civil sanctions in Virginia and prohibitions on what you and your lawyer may or may not use from a legal and ethical standpoint.  Often the use of some of these spy devices is not worth the potential consequences you could face for violating laws.  In trying to achieve that sense of "Gotcha!", you may be the one who is more seriously penalized.
http://professional.wsj.com/article/SB10000872396390443995604578002751421246848.html?mg=reno64-wsj

Protecting our service members

Happy Veterans Day and thank you for your service!

We thought it would be appropriate with this blog to highlight one way that Virginia has stepped up to help military parents.

In 2008, the General Assembly passed into law the Virginia Military Parents Equal Protection Act.  This law is designed to address issues for parents who are deployed including mechanisms to obtain changes to a custody order when the deploying parent returns and provisions for how the non-deploying parent is to foster visitation with the deploying parent.

The Virginia law supplements relief provided in the Servicemembers Civil Relief Act.

Serving our country is an important duty; it also provides complex procedural and substantive issues for members facing separation and divorce.  This law is just a sample of what is available when military issues arise.

Marital property - Myth 1

The misconception that we often hear in divorce matters is that the law says "what's mine is mine, what's yours is yours and what's joint is divided."  In the world of marriage, divorce and family law, it is more like the following:  what's yours is marital, what's theirs is marital and what's joint is marital.  That's right.  Anything that was acquired during the marriage (with some limited exceptions) up to the date of separation is considered to be part of the marital estate and therefore subject to division as part of a divorce.  Your retirement that you earned during the marriage... marital.  The other spouse's savings account that was saved during the marriage... marital.  The equity in the house that was earned in part by one party's payment of the mortgage during the marriage... marital.  Again, there are some exceptions to this general rule, but the important thing to remember is that title of an asset alone does not determine whether it is subject to division or not.

Following orders for child support payments

Parents who are separated and/or divorced or never married who cooperate regarding their children should be commended.  Parents working together for the best interests of children is what helps our young people get through difficult situations in their lives.  When cooperation begins to happen regarding child support payments, it is important to keep in mind certain things.  If there is a support order in effect, the support order must be followed.  Even good faith deviations can have potentially significant consequences in the future.  For example, Parent A is ordered to pay Parent B $500 per month for child support.  School fees and soccer registration are due and Parent A pays $250; Parent B says thanks and you only owe me $250 for support this month.  And so the cooperation goes, on and on, for months and years... until according to the Court order, Parent A is now $5000 in arrears to Parent B.  Parent A says "I'm not behind, I've been paying $250 per month to soccer and $250 to Parent B per month."  The Court will not be able to recognize the non-conforming payments (i.e. the payments to soccer); Parent A will be expected to come up with the additional funds; and the cooperation that once existed will deteriorate.  If your cooperation results in deviations to existing child support orders, talk to an attorney about how to get a new support order in effect and minimize your risks of future unintended arrears and maximize the ongoing cooperation for the sake of your children.