Another Approach to Divorce – Collaborative Law

When getting divorced, there are several different approaches that a couple can choose. Some people opt for mediation to try to resolve their disputes and save them money. Others, take the traditional approach and opt for attorneys to handle everything. There is another approach that is less known but can be quite effective – collaborative law. Collaborative law, unlike mediation, involves two attorneys similar to the traditional approach. What makes collaborative law different, however, is that both spouses agree from day one that they want to settle everything out of court. They formalize this agreement in writing with their attorneys wherein they agree that they will make any and all efforts to resolve their issues involving divorce, custody, and support out of court. While they always reserve the option to go to court if they cannot reach an agreement, there is a hefty price to pay – loss of representation by both side’s attorneys. Even if one party is still willing to work it out of court, both spouse’s and their attorneys agree that if one of the parties decides to litigate, both attorneys will withdraw from the case and both parties will have to start over with new attorneys.

This option is a great option for parties who are both committed to settling their differences out of court but want the benefit of having legal advice that mediation does not provide. When hiring an attorney, you should ask if they are willing to handle collaborative law cases if this is an option that appeals to both you and your spouse.

 

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Dividing a Pension in Divorce and the Survivor Annuity

Oftentimes when parties get divorce, one of the biggest assets that they have accumulated is the pension of one or both of the spouses. In a Pennsylvania divorce, the pension portion that accumulates during the marriage is what is considered marital. There may also be a non-marital portion for the years of service prior to the marriage or the years of service after the marriage. When getting divorced, there are two methods of getting each spouse their share of that pension. One method is to do a percentage distribution of the marital years. When this method is use, the spouse receives a percentage multiplied by the number of years married that the pension accumulated divided by the total number of years that the pension accumulated. This is usually distributed by a separate document called a Qualified Domestic Relations Order which is often paid to and drafted by a company or firms that handles QDROs. The other method of distribution, and the preferred method by the Court (according to case law) is an offset. Under this method, the marital portion of the pension is assigned a dollar value based on a report prepared by a company who does pension valuations. This dollar value of the pension can then be swapped with other marital assets as an offset.

One often overlooked part of a pension is the survivor annuity. If a party has a pension, then the party who has the pension is given the option at retirement to select from several different options upon their death. This could include no survivor, a 75% survivor, 50% survivor, etc. This survivor benefit election is important in that if no survivor is elected, the one spouse will receive nothing upon death of the party who holds the pension. If a survivor benefit is elected, it reduces the monthly payment of both spouses when they receive the pension. Since only the spouse who will continue to receive the pension upon death of the pension holder will benefit, the surviving spouse has an asset known as the survivor benefit annuity which must be valued separate and apart from the principal of the pension. It is something that should be addressed at the time of divorce as once the pension is in pay status this election cannot be changed.

For additional information see: /Family-Law-Divorce/High-Income-Net-Worth-Divorce/Pensions-in-a-Divorce/

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Tips for Keeping Divorce Costs Down

1. Understand that family lawyers charge based on their time. This includes time reading emails, talking to you and anything else related to your case. Sending daily emails or calling constantly to talk about your case is a surefire way to escalate your bill. Instead, keep a journal of your thoughts and schedule one block of time to go over all your issues with your attorney and be sure to engage a private therapist or good friend if most of your conversation is related to emotional struggles instead of legal issues.

2. Weigh the cost of what you hope to gain against what you will have to spend to get that amount. Consider that in support matters, oftentimes, it may not make sense to hire a lawyer to fight over $ 100 difference between what you hope to get and what you spouse would agree to pay. You need to balance the cost of legal fees against the amount of money you hope to gain order to assess whether it is worth the litigation in the financial areas. This applies to support as well as the divorce issues.

3. Gather your own financial records and get organized. You can save money if you are organized and gather your own records that are needed for your divorce. Make sure you have current statements and statements from separation on all your accounts, including retirement accounts, contributions during separation, mortgage statements, credit card statements, etc. and present them to your lawyer in an orderly fashion and you will not only save the money having to have your lawyer gather this for you, but you will be in a better position to possibly settle your case out of court.

4. Consider Mediation. Even if you have an attorney, you are still able to mediate your conflicts if both parties agree. Even if you are unable to come to a global settlement, you can usually narrow down your issues in dispute which will in the long run save both time and money.

5. Understand that your emotional pain has no correlation to what you will receive. Unlike a personal injury claim where you are compensated for pain and suffering, the divorce laws are not structured to compensate you for you pain or hurt. Understanding the factors involved in dividing your assets are based on economic factors rather than emotional factors may help you set realistic expectations and help keep the costs down.

For more information, see: /Family-Law-Divorce/Bucks-County-Divorce/

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Changing the Locks during a divorce

Sometimes the first action in a separation or divorce is when a spouse moves out. When a spouse moves out of the house, oftentimes the spouse who remains changes the locks. This is something that you can do, however, it is not always assurance that they will not get back into the home unless their exit was the result of a Protection from Abuse. Until you have an exclusive possession order signed by a Judge during your divorce, a spouse could legally gain entry to the home by breaking a window or any other method. In order to get an exclusive possession order, you would have to file a Petition for Special Relief and ask that Court to enter an order while the divorce is pending to award you the home. If your spouse left and has another residence that he/she has established, it is very probable that the court will award you the right to live in the home and your spouse will not be allowed in at that point without your consent. Once you have that Order from the Court, you can be assured that a violation of that Order will result in Contempt of Court. If you are the spouse who left, until that Order is entered by the Court, you can usually move back into the house if you change your mind. Getting an Order in place is something to consider to eliminate unexpected surprises.

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My spouse left me, why do I now have to pay the mortgage?

If you are getting a divorce in Pennsylvania, oftentimes the court will require the occupant of the marital home to pay the mortgage. It does not matter whose name is on the mortgage. The theory behind requiring the occupant to pay the mortgage is that only that person is receiving a benefit for use of the home. Consider it fair rental value. The court will normally impose a support obligation on the spouse to pay you if they earn more and you have been married for at least a few years. If you have children with your spouse, you can seek a mortgage contribution as part of child support if they children remain the home with you. The mortgage contribution, however, is never going to be equal to the mortgage, nor is it even half of the mortgage. In some cases, you will not even get a mortgage contribution if your income and the child support amount do not mathematically warrant it. It is also in the discretion of the Judge whether to even award it. If you cannot afford to pay the mortgage between the income you have and the support you receive from your spouse, it may be time to consider selling the home. If you fail to pay the mortgage while living in the house during a divorce, the Court can intervene and order it sold. It is a good idea if you are separating to consult an attorney who can assist you by figuring out approximately how much you can expect to receive. This not only helps in deciding if you can afford to stay in your home during a divorce but will also help you decide how much you can afford to live elsewhere if you have to move. The attorney can also provide you with the documented expectation of support in order to help you secure a rental if your income does not support it alone.

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NJ Divorce on the Papers

Certain counties in New Jersey will now allow a divorce to go through without requiring appearance in court. This option is available if there are no issues raised other than the divorce. For example, there are no custody, support, or equitable distribution issues. Alternatively, if the parties reach an agreement on all outstanding issues, the agreement can be incorporated with the request for the divorce and the appearance requirement can still be waived. A final judgment of divorce will need to be prepared. The judgment should include whether an agreement is being included. The judgment should also cover the minimum requirements for divorce such as appropriate jurisdiction based on residency. Further, if wife intends to retake her maiden name, that should be included in the proposed final judgment.

In addition to preparing the judgment of divorce, both parties should submit supporting certifications. The certifications should go into further detail about the facts establishing the divorce action. The certification should set forth the marriage date of the parties and the period of residency. The cause of action should be stated (e.g. irreconcilable differences, separation, etc.). The certification should state if there are any children between the parties and if so, their names and date of birth. Again, if an agreement has been reached regarding ancillary issues, the agreement should also be referenced in the certification. Finally, the parties should indicate they are waiving their right to trial in favor of having the divorce granted without personal appearance.

Click here to read more on divorce in New Jersey.

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Social Security Benefits when Divorced

When you get divorced in PA, social security is not considered as an asset in divorce. It may be considered as income for purposes of alimony but not as an asset.  If you were a spouse who did not work and did not contribute to Social Security or if you worked part-time and your benefit is not very much, you should inquire as to whether you are eligible for spousal benefits.  If your ex-spouse worked and contributed to Social Security, you may be eligible for Social Security.  In order to be eligible, you must be unmarried at the time you apply for benefits. Even if you are divorced in between marriages from someone else, you may still be eligible to collect on the first spouse if you meet the requirements.  You must be at least 62 years.  You must have been married to the spouse for at least ten years to collect.  If your spouse is not yet collecting, you can still collect as long as you have been divorced for at least two years.  If you wait until full retirement, you will receive half of what your ex-spouse’s full retirement benefit is.  Your collection of the half of their benefit does not reduce their full benefit.  They will still be eligible for their full retirement benefit.  Social security no longer sends statements out in the mail of your earning history but they are easily accessible online at www.ssa.gov and you should set up an account for yourself to view online.  To learn more about your rights if you are divorced visit: 

http://www.socialsecurity.gov/retire2/divspouse.htm.

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Date of Separation in a Divorce

When you get divorced in PA, the date of your separation is no later than the date that a divorce is filed. It can be earlier but the burden will upon the party seeking an earlier date to establish it with evidence should the other spouse contest it. The date of separation is an important date when it comes to determining what is an asset and what is a debt. Assets and debts accumulated up until the date are marital. This means if you file for divorce or separate you will want to know what the balances are on your debt at that time. It does not matter whose name the debt or asset is in. If your spouse has credit cards, even if you did not know about them during the marriage and they can produce statements showing a credit card balance on the date of separation, it gets included. If you think your retirement is your own, again you will be mistaken. Retirement assets up until the date of separation are marital assets even if they are only in one person’s name. There are exceptions on some assets that are passive such as a house where the value is determined as of the date of distribution. Much money and time is spent in a divorce figuring out what the assets and debts are and what the balances are. It is a good idea to keep records, when you marry, when you separate and each month after you separate. It will save much time and much money to stay organized.

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Putative Spouse Doctrine

The putative spouse doctrine provides an equitable remedy where one or both spouses believed in good faith they were married and subsequently discovered the marriage wasn’t valid. The spouse that is unaware of any impediment to the marriage is the putative spouse. The equitable remedy provided more or less mirrors the relief that would be available if the parties were divorcing from a valid marriage. The purpose of the doctrine is to protect those who have an honest belief that they are married from being denied the economic and/or status related benefits of marriage including potential property division and support.

The doctrine is recognized in many states across the country as long as the key elements are met. First, there must be a proper marriage ceremony. Second, one or both parties must have a good faith belief the marriage is valid. Good faith is defined as an honest and reasonable belief. If either spouse receives information concerning the validity of the marriage, they have a duty to investigate further.

Click here to read more on division of property.

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Affidavit of Consent

Under Section 3301(c) of the Divorce Code, one way to obtain a no-fault divorce is by mutual consent of the parties ninety (90) days after filing and service of the divorce complaint. This is often the quicker option for a no-fault divorce however it is contingent on both parties signing the consent. Case law provides that a party cannot be forced to consent. This is true even if the party previously entered an agreement indicating they would timely consent to the divorce. The court has stated “[a] person has an unqualified right to change his or her mind and refuse to consent to be divorced, at least, as here, where the consent, though signed, has not been delivered or filed.” Berman v. Berman, 33 Pa. D. & C.3d 134 (1983). This position supports the Divorce Code policy of preservation of marriages wherever possible.

There is also the potential that an affidavit of consent could be withdrawn even after having been filed with the court. This is only possible if the court grants the request for withdrawal. The courts have previously referred to Rule 1920.42(c) as granting the power to deny a petition to withdraw consent. The rationale being that an affidavit of consent could always be withdrawn and there would be no reason to seek the court’s permission if withdrawals were automatic. Instead, the court laid out a standard to be used when determining whether to allow withdrawal which examines whether the affidavit was signed under duress, fraud or undue influence. Duress would include threats of physical harm or actual harm. Fraud, which must be established by clear and convincing evidence, would demonstrate a misrepresentation with the intent to induce signature to an affidavit of consent. Finally, undue influence is influence obtained by excessive persuasion or other means such that the other party lacks free will and is unable to refuse. In addition to the above factors, the court should also look at the totality of the circumstances in order to effectuate justice among the parties and fulfill the intent and purposes of the Divorce Code.

Click here to read more about grounds for divorce.

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