After you've done your divorce planning, attempted to make some decisions with your spouse, and then begin the divorce process begins, it is not unusual for one - or both parties to a divorce action, by the fifth or sixth month, to become impatient. Quite often, when settlement proposals begin, litigants become tempted to just sign the agreement in order to get the divorce over with.

While some lawyers may consider this "stall, and wear out the other side" tactic a secret, but for the spouse being taken advantage of, it's a big mistake. Think about it: even if everything looks fair and equitable on the face, you may not really be getting a good deal. It's understandable that most people don't have an understanding about divorce finances, so consider these tips:

1. Don't disregard how inflation can impact your divorce settlement. Consider the cost of a child's college education - or even retirement - 15 or 20 years down the road.

2. Remember to update your estate planning documents. After a divorce battle, it's easy to forget details like changing the beneficiaries on your life insurance policy or will.

3. You must insure what you've agreed to in your settlement. In Massachusetts, support terminates at death; accordingly, make sure that life insurance is an issue covered in your agreement.

4. Understand the difference between survival and merger when it comes to support. Simply stated, some portions of a divorce agreement can be changed later, others cannot.

Provisions of an agreement that "survive" have an independent life of their own; they cannot be modified later - even if there is a change in circumstances.

Alternatively, a provision that merges has the ability to be modified at any point when the moving party can demonstrate a change in circumstances. The only requirement is one must file a Complaint for Modification.

5. Hidden Assets: Don't forget to have your attorney or financial analyst assess the issue of whether assets may be under-reported or missing - especially if there's the element of a family business involved. You may consider engaging the services of a private investigator or forensic accountant.

Finally, make certain that you educate yourself on those tax ramifications relating to a divorce settlement, retirement accounts, and those involving stock options. Taking these extra precautionary steps will ensure that you're setting yourself up for a secure future post-divorce. Contact us for a no-obligation consultation.

Posted by Joseph Mullin, Esquire at 12:40 PM | Permalink | TrackBacks (0) | Comments (0)

Once you understand the concept of the equitable distribution statute in Massachusetts, there are two different types of property that you need to divide with your spouse - real property and personal property.

When it comes to real property (real estate), it comes down to you thinking about the pros and cons of keeping the marital home.

Personal property is the harder of the two, and if you and your spouse are having trouble reaching agreement about how to divide what you've accumulated over the years, here are the latest tips from our divorce lawyers and family law attorneys:

1. Realize early-on that you're not going to get everything (or leave your spouse without anything). The best thing you can do is list everything that you and your spouse own - individually or jointly - from either before marriage or among those assets that you've accumulated during your marriage. Next to each item, assign a dollar value. This value should represent the current value, and not the replacement value. Think about it: one spouse keeps the television, and the other will have to purchase a new one.

Once you're done with the list, add-up the total value of all your items, divide the total in half, and decide what's on your priority list and what may be on your spouse's list. Do your best to make it a best-scenario, all things considered!
Courts appreciate when couples can decide amongst themselves the division of all personal property. Judges would rather not get involved in arguments over the hammock, the couch, or grandma's antique china.

2. Choose items alternatively. Go to the list you made in #1, then each of you take turns selecting items from the list without regard for the value of items selected.

3. You and your spouse list all of your property (as outlined in #1 above), and then one spouse divides this "master list" into two lists (as evenly as possible), and the other chooses which list he or she wants.

4. Consider selling everything, and then divide the proceeds evenly.

5. Consider conducting a private auction whereas each of you bid against the other on any property that you cannot agree on. From there, payment can be made from one to the other in order to equalize the division of property.

Posted by Irwin M. Pollack, Esq. at 8:13 AM | Permalink | TrackBacks (0) | Comments (0)

Earlier this week, a client had been referred to my office seeking representation for an imminent divorce matter. As I asked a few preliminary questions, he stopped me. "I'm the sole proprietor of a hardware chain and I've done a tremendous job hiding assets," he said. "I know all about the financial statement and based on the numbers I can report, I've got my child custody figures down to the penny," he added.

Now he wanted a divorce and was interested in only one thing: finding out what I would do to ensure that his wife got as little as possible in the settlement.

Imagine his surprise when I pointed out that if he had hidden assets from his wife, that he had also likely done the same with Uncle Sam. He was going to have to file amended returns. Since the couple jointly owned the business, she would have to sign the amended returns and therefore would learn of the assets.

There was a dead silence. He suggested that he might be best-suited to stay married for a few more years until he cleared up his mistake in judgment.

This illustrates how assets often determine if a couple can divorce, despite their emotional problems. Doing your pre-divorce planning early in the process and calling us well in advance of your imminent split won't lessen your emotional suffering but it will help minimize your pocketbook pain - particularly if your lawyer is given decent notice of the upcoming split.

Posted by Irwin M. Pollack, Esq. at 10:32 AM | Permalink | TrackBacks (0) | Comments (0)