How to Preserve Premarital Assets without a Prenuptial

If you are getting married and the idea of a prenuptial agreement puts a distaste in your mouth or that of your spouse, but you are still concerned about losing your premarital assets, there are a few things that you should and should not do if you get married without a prenuptial. Never add your spouse’s name to the house or bank account you had prior to marriage unless you are willing to gift this asset to the marriage. This is not to say that the house you own prior to your marriage will not be distributed in a divorce, but you can minimize the amount by keeping it separately deeded. The equity that you have when you get married will remain your asset should you get divorced. You should know what this value is when you get married by having the house appraised and keeping documentation on your mortgage balance at the time of your marriage. Without a prenuptial agreement, the increase in value during the marriage will become marital, whether or not you add your spouse to the deed or title of your account. If you have a mortgage and pay it off during the marriage, you will be accumulating marital equity even if the house does not go up value. In addition, if you have any bank accounts, you will want to keep the funds that you had going into the marriage in your separate name.

Once you start putting your premarital assets into a joint account, they become a gift to a marriage. This means that if you get divorced and have no prenuptial agreement, the Court will have to decide how to distribute this asset if you cannot agree. If you are in Bucks County, the court will normally apply a diminishing credit value meaning for every year that it was transferred into joint names, 1/20 of the asset will be considered as marital and you can seek a credit for the balance. After 20 years, you will get no credit for the premarital asset you contributed to joint names. When you start gifting your premarital assets to the marriage without a prenuptial in place, you should be very careful to document both the amount of your contribution and the source of funds. This way, if you do end up in a divorce, you will be better prepared to argue for the diminishing credit if you are in Bucks County or a more equitable share of the asset.

For more information on prenuptials, see /Family-Law-Divorce/Prenuptial-Agreements/

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Disabled? Unemployed? When to Modify your Support Order

Whether you are receiving or support, it’s important that if you become disabled, or end up on unemployment, even temporarily, that you file to modify your support. Just because you are out of work, or undergo surgery, does not mean that you can explain it all later to the Court. Nor does it mean that your support will not be due. You need to file to either lower or stop your support if you are paying during the period of time you are disabled or out of work. Otherwise, if you do nothing, the amount you were ordered to pay will continue to charge against you and you could find yourself in contempt if it is not paid. If you are the one receiving support and you become disabled, or suddenly lose your job and are on unemployment, you need to file in order to see if you can get an increase in support temporarily while you are out. If you are unable to file yourself, it may be a good idea to give someone you trust a Power of Attorney to file on your behalf.
Support is modifiable whenever there is a change in circumstances. It does not always have to be due to a disability or unemployment. Whenever there is a change income or any of the factors that play into a support order such as child care expenses, health insurance expenses, etc. you may need to go back to court have your support order recalculated. If you think you may have a change in circumstance that warrants a modification, always consult with an attorney.

For more information, please see:/Family-Law-Divorce/Child-Support/

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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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Five Mistakes to Avoid in a Child Custody Case

1. Allowing your new spouse to act as the go-between with other the other parent. In a custody situation is it important that the parents communicate with each other. Your new spouse or significant other should not be the one to handle all the affairs of your child. It is important as a parent to show that you are involved with your child.

2. Withholding the children unless they are being seriously abused. It is always a bad idea to take unilateral action and instead allow the courts to decide what contact is necessary. Withholding children without a very valid reason will end up as a factor against that parent in a custody proceeding.

3. Making unilateral decisions about the child without the other parent. In most cases, parents have joint legal custody and both parents are entitled to attend doctor’s appointments, make health care decisions, decide on schooling for the child. Withdrawing a child from school without consent of the other parent will often result in contempt. Not working with the other parent to schedule doctor appointments they can both attend can also result in contempt and can harm a parent in a custody dispute.

4. Posting photos on Face book that can be used against you. Be careful what you post on the Internet as it can come into play in a custody case.

5. Keeping the children from grandparents. If you exclude grandparents completely, oftentimes you will end up with additional litigation. Grandparents have rights and can bring their own action for visitation.

For more information see: /Family-Law-Divorce/Child-Custody-Visitation/

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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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Remedies for the landlord

The most important thing that a landlord can get after an eviction hearing is the property itself. After a hearing, the tenant has 10 days to appeal, or else the landlord may request (and pay for) an Order for Possession. 10 days after that, the sheriff/constable will come and evict the tenant.

In addition to the physical property, the landlord can get past-due rent, late fees, and other unpaid bills (such as utilities and water, if they are the tenant’s responsibilities). Furthermore, the landlord is entitled to filing fees as well as the fees paid for the Order for Possession. There may also be a provision in the lease that states that the tenant is responsible for rent for the entire duration of the lease.

If the lease permits, then the landlord is also entitled to reasonable legal fees. However, not all leases allow for this, so it is important to read the lease in its entirety.

The landlord may also sue the tenant for damages, other than normal wear and tear, caused to the premises during the tenancy. Make sure to take photos, obtain estimates for repairs, and keep receipts.

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Typical landlord/tenant fees

To file a landlord/tenant eviction, you must pay the court’s filing fees. The fees are based on several factors: the number of defendants, amount seeking in damages (i.e. unpaid rent, destruction of property, legal fees), where you are filing (i.e. Bucks County vs. Philadelphia county).

Many leases provide for the landlord to receive legal fees if successful. Unless the lease states this, each party will be responsible for their own legal fees even if they prevail. The legal fees awarded is at the judge’s discretion.

Some attorneys charge a flat fee for representation, while others charge per hour. The advantage to a flat rate is that the party knows the fee up-front, whereas the hourly charge could depend on the length of trial and amount of time needed for preparation. Court itself can be as short as 15 minutes to several hours. This is determined on the complexity of the issues and whether the tenants have any defenses.

Finally, if a landlord is successful in obtaining an eviction, they must pay for the sheriff/constable to serve the Order of Possession. This will then enable the sheriff to forcibly remove the tenant if he refuses to leave on his own.

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Should you have a will?

Many people ask me if a will is necessary for them. They believe that they’re too young, or they don’t have enough assets, or they can’t decide who gets their estate when they pass away. A will is important for anyone. I recommend setting up a will as early as possible. A will is always modifiable as long as you are competent to make changes so it’s not a problem if you change your mind. It is also recommended that you periodically review your wills to make sure that the terms have not changed. You should also modify your will whenever a significant event occurs in your life (i.e. marriage, divorce, birth of a child).

Wills give you the ability to determine your executor (the person handling the estate) as well as trustees and guardians of minors.

Without a will, your estate is divided pursuant to your state’s intestacy statutes. In Pennsylvania, if you have a spouse and children (all of whom are also the children of your spouse), then the spouse keeps the first $30,000 and then gets half of the remainder. If the children are not your spouse’s, then the spouse only gets half, with the children retaining the rest. The law is complex so it is best to consult with an attorney. With a will, you get to choose which beneficiaries will get to inherit, and what their respective shares are. Furthermore, you can give specific bequests, such as vehicles, jewelry, family heirlooms, and specific cash gifts to your heirs.

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Theories on Property Division

There are two different theories on how title to property may affect the division of the property at the time of divorce. The title theory looks at which spouse holds title to each asset. There are multiple forms of title. Sole title grants the unilateral power to control. Examples of assets that may be relevant in divorce that are solely titled include retirement accounts, individual bank accounts, and vehicles. The remaining forms of title often apply to real property. Tenancy in common is the co-possession of an entire asset where each party has a ½ interest. Joint tenancy with right of survivorship is also co-possession of an entire asset with the condition that the surviving party will receive sole possession upon death of the other party. Each party can potentially transfer their interest during their lifetime. Finally, tenancy by entireties is similar to joint tenancy with right of survivorship but can only exist between spouses and any transfer of the interest can only occur with consent of the other spouse. Most states prefer the title theory. Equitable distribution is the method for property division under this theory.

The other theory in property division is community property. Under this theory each spouse has a present, vested ½ interest in all property acquired during the marriage. This results in an equal distribution of the property and is the minority view. Regardless of the theory utilized, the process of dividing property involves three steps. First, all the assets must be identified and classified as either marital or separate. There is a presumption that if the asset was acquired during the marriage it is marital. Second, each marital asset should be valued. Finally, all assets should be distributed either equitably or equally, depending on the property division theory being utilized. Both Pennsylvania and New Jersey divide property by method of equitable distribution.

Click here to read more on equitable distribution.

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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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