Wednesday, March 15, 2017
Wednesday, March 8, 2017
WE’LL SEE
This is a GREAT story to feel
during your divorce. It is about a boy and a Zen master.
“On his
sixteenth birthday the boy gets a horse as a present. All of the people in the
village say, ‘Oh, how wonderful?’
The Zen
master says, ‘We’ll see.’
One day, the
boy is riding and gets thrown off the horse and hurts his leg. He is no longer
able to walk, so all of the villagers say, ‘How terrible!’
The Zen
master says, ‘We’ll see.’
Some time
passes and the village goes to war. All of the other young men get sent off to
fight, but this boy can’t fight because his leg is messed up. All of the
villagers say, ‘How wonderful!’
The Zen
master say, ‘We’ll see.’”
Stop
believing whether something is “good” or “bad.”
It is neither. Good/bad is merely a “spectrum.” Reality is your
perception. As the Buddha stated, “live joyfully in a world of sorrow!”
“WE’LL SEE”
Wednesday, February 1, 2017
ESCAPE
You have made your decision to separate (escape) from your
spouse or you have made your decision with your Attorney to file a Petition for
Dissolution of Marriage. Unfortunately,
based on economics today, many married couples must co-habitate in the same
residence during the divorce (and for reasons advised by their Attorney other
than economic) which I assure you is hell as a contested divorce, due to the
financial crisis in the Judiciary creating a shortage of judges, may take 3 to 36
months. However, if you are able to move out from the residence based on your
decision or the advice of your Attorney (because the other spouse is refusing
to vacate the residence and you do not have the ability to obtain an immediate
Court Order for their removal), PLEASE
be acutely aware as follows:
1. Until
you vacate the residence, your spouse
will search every square inch of the house, your personal belongings, your
automobile, your computer (beware of keystroke programs), your cell phone, your
social media (Facebook, etc.) to ascertain notes, messages, texts, emails,
money, etc. for many different reasons;
2. You
should obtain a replacement garage door opener and program it to the code of
your opener to have access through the garage door as future entry into the garage
and/or residence after you vacate. Your spouse may change the locks on the
residence but often he/she does not remember to change the code on the garage
door opener. If the residence is in joint names, you may obtain a locksmith to
let you in at any time, but this is usually childish and dangerous. If
possible, you should make copies of all keys to automobiles, residence, storage
units, locks, etc.
3. You should remove any item that is sentimental
to you, i.e., grandmother's dish, photographs, gold coin from father, etc., in
that any items that are sentimental that you leave behind may disappear and
your spouse will allege that you took them with you and that you are the one
who lost them. Because they are sentimental, your Attorney cannot obtain replacement
items or compensation for fair market value versus if a television is missing,
it is easy to ascertain the fair market value and obtain money for replacement.
There is no way to replace sentimental items;
4. You
should remove all small items of high value, i.e., jewelry, watches, coins,
stock certificates, bonds, etc. as again, if they disappear, your spouse will
state that you have them and at this time there is conflicting testimony and
the Court, unless the Judge makes a decision based on one person's credibility
substantially outweighing the other person's creditability, the assets may not
be distributed to either party;
5. You
should remove (or copy) all important documents, safe deposit key(s) and copy
or upload to a secure Cloud all important information contained on any
stationary computer hard drives (CPU) and any other music or social content;
6. You
should photograph or electronically record all items remaining in the residence
and garage and create a master index of all tangible property left at the
residence. Therefore, if any of the property is damaged or disappears, you may
seek replacement fair market value of the property. Furthermore, you will need
a master inventory for division of all tangible property during your
dissolution of marriage, and this is a perfect time to make the inventory, or
if you don't have time, you will have the pictures to prepare the inventory at
a later time;
7. If
you have decided to take bedroom furniture and other furniture, please be aware
the Judge will be reviewing the situation to determine if it was done in a fair
manner. If a Petition for Dissolution of
Marriage has been filed by you or your spouse, there is a Standing Family Law
Court Order and it more likely than not prevents you from removing property from
the house. Always discuss removal of furniture and other large items from the
house/garage with your Attorney before doing so. If you decide to do so either
on your own or per permission of your Attorney, please be extremely careful in
removing said items as if you are doing it without knowledge of your spouse and
your spouse returns home during your move, it is an extremely dangerous
situation. If you must move the items out without knowledge or notice to your
spouse, make sure you do it during a time when you know your spouse will not be
present for hours in the residence and that you have several adult witnesses
with you to observe the removal and moving of the items. You may also notify
your local police prior to the removal of items that you may need an officer to
do a "keep the peace" check. I do not advise removing any large items
that do not have sentimental value and have easy replacement value as the shock
and trauma alone of removal of property to your spouse may cause unforeseen
reactions from your spouse, as a spouse often reacts versus responds when
confronted with relationship issues. Therefore, please do not do so unless you
have discussed it with your Attorney and he/she has granted permission to do so
or if it is absolutely necessary for you to do so;
8. If
you have a child, before you vacate the marital residence (assuming with the
child) you must discuss the matter with your Attorney to make sure your moving
out of the residence with the child does not harm any of your goals with regard
to a proper parenting plan and time sharing schedule between you and your
spouse;
9. Removing
any pets (dog, cat, spider, lizard, fish, etc.) must be pre-planned with regard
to whether your landlord allows a pet. You will need the veterinarian records
for upcoming shots, etc. An appropriate
message must be left for your spouse notifying your spouse that the pet was
removed so that your spouse does not believe the pet has simply disappeared. Be
very careful which pet(s) to remove as if your spouse is emotionally dependent
on that pet, even though you are affectionate toward the pet, the pet should be
with the person who has a greater emotional dependence on the pet;
10. You
should discuss with your Attorney which financial accounts to remove and
transfer money. There are many reasons to remove sometimes less than one-half
and sometimes greater than one-half of the money in checking/savings accounts.
Financial institutions may need to be notified to put a "hold" on the
account so your spouse cannot take any additional funds. Any cash should be
removed from the residence, as again, if it disappears, your spouse will allege
that you have it;
11. You
should discuss with your Attorney which credit cards, equityline and other debt
accounts to cease your spouse's authorized use of or to terminate if in joint
names, or if in joint names and you cannot terminate, a decision must be made
whether to withdraw the remaining funds available to safeguard during the
dissolution process. Generally, if your
spouse is not financially responsible you should remove your spouse as an
authorized user on all your credit cards and notify the financial institution with
an equityline, whether secured to real property or not, to "freeze"
the equityline so that it is not maxed out by your spouse. This is a delicate
decision as your spouse may be dependent upon certain credit cards and if their
dependence on the credit cards is of essence for the day to day survival or
raising of your child, then it may be wise not to cancel those credit cards;
12. After
you have vacated the residence, you should notify your neighbors that you trust
(be very careful who you trust) that you are no longer living in the
neighborhood and you would appreciate if they would keep an eye out on the
residence as that way you will be able to receive updates on what is going on
at your residence. If the residence is in joint names, you are welcome to stop
by any time to review the caretaking of the residence as long as you are
confident there will not be any domestic violence with your spouse when you are
in the process of a "walk-through".
13. You
may want to install a "GPS" tracker on the automobile of your spouse if
it is titled in your name, or your name and your spouse's name (joint names).
Contact a private detective / "Spy" store or review the internet for
devices and information. Tracking your spouse reveals many salient facts with
regard to potential paramours, entertainment, etc.
These are several matters to consider when vacating
your marital residence, but of course, these suggestions should be reviewed in
detail with your Attorney as there are probably other issues to consider based
on your particular facts of your marriage.
I wish you great adventure in your new experience, and
I say
Namaste'
Wednesday, October 26, 2016
Tuesday, July 5, 2016
COMMUNICATING WITH THE JUDGE
Parties involved in a high conflict divorce/paternity case
quite often believe that if they could just talk to the Judge privately and
explain to the Judge how they feel and how evil the other parent truly is, then
the Judge would give them what they want.
Some misguided parties actually call the Judge's office and
ask to speak with the Judge about their case, and they are surprised to find
out that the Judge's assistant will not connect them with the Judge because the
Judge does not communicate with parties except in a courtroom with both parties
present.
Other parties will try to send the Judge a letter hoping to
secretly tell the Judge their version of the case without the other parent
knowing. The letter will be sent back unread by the Judge or the Judge will
file it with the Clerk of Court without reading it, and take note of the parent
who tried to have an improper ex-parte communication.
If the Judge does communicate with a party or both parties
in writing, it is always with a Court Order.
If a Judge ever sent a letter to the parties (this will
never happen), the letter would look something like this:
Dear Parents:
I am the Judge assigned to your divorce / paternity case.
I hope to never meet you.
I assure you I will never meet your children.
The only reason I have been assigned to your case is in the
event that you cannot make your own decisions together or in the event that one
or both of you act inappropriately by violating the law. In those cases, I have
the authority to issue Orders telling each of you when you are allowed to see
your children, dictating the terms of child support, property division, etc.
If my Orders are not obeyed, I may hold you in Contempt of
Court and you may be sent to jail.
I am surprised every day by parents who proclaim to love
their children and who insist they are only trying to do what is in the
children's best interest but then they allow me, a total stranger, to set the
rules of life for themselves and their children because they are too angry or
stubborn to work together with the co-parent to finalize an agreement so that
the parents make all the decisions and I make none.
If you insist upon me making decisions for you after a trial,
I assure you that both parties will probably be disappointed because the
reality is that parents together will make much better decisions for their
children than a total stranger.
I will not allow you to use me to punish the other parent,
and I promise you, I will NOT be fair. A Judge's oath requires them to follow
the law, not be "fair" to a party.
Do not make the mistake of calling the children as witnesses
to testify against the other parent or to tell me what a great parent you are.
Do not put the children in the middle of your war.
Many parents make the mistake of insisting upon a trial so
they can tell me how they "feel". They seem to think it important
that the Judge understand their perspective. Believe me, I already know and
understand your perspective if you are working hard to minimize the time the
children spend with the other parent. You are emotionally in pain. Your dreams of
happily ever after have been crushed. Your vision of the future has been
altered by your co-parent and your need to hurt your co-parent has overwhelmed
your good judgment.
·
You are hurt when the children spend time with
your co-parent because you suffer separation anxiety and you fear the children
will love the co-parent more than you if they spend too much time with them.
·
You are overlooking the fact that children need
and love both parents and, unlike the romantic love once shared by their
parents, the children's love will not fade or disappear over time. The romantic
love that did not endure was destroyed by incompatibility and the children's
love is not dependent upon that factor.
·
You will claim that your motives are pure and
you are only thinking about what is in the best interests of the children, but
you are forgetting the fact that I will be enforcing the right of the children
to spend time with their parents - not the right of the parents to spend time
with their children.
·
Your anger and pain and the need to strike back
will inspire you to try to convince me that your co-parent is unworthy of
spending as much time with the children as you, but the Judge does not punish a
parent because of their failures as a spouse.
The litigation process ending with a trial will leave
scars on both parents and add to any hostility that already exists. You and
your children will pay a heavy price if you go down that road. And be aware
that a trial and Final Judgment is not even final. There can be rehearings and
it can be appealed and later modified under certain circumstances. So if you
are looking for "Justice" and "Fairness" and "Finality",
you will not find it in my courtroom. I look forward to receiving a signed agreement rather than a request for trial.
Sincerely,
Your
Circuit Judge
(This article was recently written by retired Attorney David Thomas.)
Friday, April 1, 2016
ALIMONY REFORM
The intent of the new alimony
statute is to create guidance to Circuit Court Judges for consistent spousal
support rulings. It abolishes all types
of alimony but for temporary alimony and final alimony. There is no longer bridge-the-gap,
rehabilitative, durational or permanent periodic alimony. It does not address the availability of lump
sum alimony.
The statute considers both
ability to pay and need for alimony. It creates a low range for amount and
duration and a high range for amount and duration, and it is presumed any Judgment
within that range is proper. To decide where the Order should fall in that
range, there are alimony factors for review (very similar to the existing
alimony factors). To deviate outside of that range, the Judge must explain why the
guidelines are "inappropriate or inequitable" and she must do so in
writing. It is very important to note that this law applies to all matters
pending as of October 1, 2016, and therefore if you have a trial in August,
2016 but is not ruled upon until October 2, 2016, this new statute would apply.
My initial calculations conclude it
will save the payor money for a lower end long term marriage (17 years or
less) with gross income differential between the payor and payee of $150,000.00
or less. On the other hand, it seems, but for the time duration, if the parties
lived a semi-reasonable standard of living, the payor would pay more
money in alimony (but not duration) for long term marriages of 25 years or
longer, with gross income differential of $200, 000.00 or more. I suggest you perform your own calculations
(per the below formula) and apply the results to your opinion of average
Circuit Court rulings.
The formula to determine the low
end of duration is multiplication of .25 x number of years of marriage and .75
x number of years of marriage for the high end.
To determine the amount of
alimony, the low end is determined by multiplying .015 times the number of
years married (not to exceed the number of 20 years married, even if married
longer than 20 years), multiplied by the difference in gross income of the
divorcing couple (either per month or per year, and if per year, divide by 12).
To determine the high end, the multiplier number rises to .020, again with the
maximum number of years for the multiplier at 20, unless if the Court
establishes duration of the alimony award at 50% or less than the length of
marriage, then the Court shall use the actual number of years of marriage up to
a maximum of 25 years to calculate the high end of the presumptive alimony
amount range. Therefore, if the duration
of the marriage is greater than 20 years, there is a possibility the
"amount" multiplier for the high end range may increase to 25 years.
Two examples:
1. The Parties have been married for 18
years and have standard W-2 income. The wife makes $50,000.00 per year and the
husband makes $150,000.00 per year. Therefore the low end amount / duration is
$2,250.00 / 4½ years and the high end amount / duration is $3,000.00 / 13½
years.
2. The Parties have been married six years,
and the wife has small business income of $75,000.00 per year and the husband
has W-2 income of $60,000.00 per year. Therefore the low end amount / duration
is $112.50/1½ years and the high end amount / duration is $150.00/4½ years.
Please note the definition
section has been completely reworked for gross income, potential income,
underemployed, and many other definitions.
There is a presumption that if your marriage is two years or less, there
shall be no Order of Final Alimony.
Also, imputation of income has been redefined along with the ability to
order nominal alimony. The taxability
and deductibility of alimony has also been redefined, as has termination,
modification and payment of the award.
It is important to compare this
alimony statute with the child support statute, as the child support does have
a mechanism for deviation, as does this statute. However, experience concludes
that Judges rarely deviate and apply the mathematical formula (either out of
convenience or the Attorneys do not present sufficient requests and facts to
the Court for deviation). I would expect
the same potential application of the alimony guidelines with a high end
duration / amount based upon children and whether the payee is a stay-at-home
parent/spouse, and toward the lower end if there are not children and both
parties are actively employed. Therefore, a rule of thumb / mid-range
computation would be 0.0175 x the number of years of marriage (not to exceed 20
years) x the difference in gross income of the Parties, and I would expect
negotiation to proceed above and below this rule of thumb amount.
One final note, although
unrelated to alimony, it is important to note that the Statute has also entered
a presumption that the Court shall begin with a premise that a minor child
should spend approximately equal amounts of time with each parent, and
to use this premise as a starting point subject to the Parenting Plan Factors.
Thursday, March 10, 2016
OUR BUSINESS IS WORTH ??
The good or bad news is the value of your business is different for valuation in your divorce than if you and your spouse were happily married and selling it during your marriage. If you are happily married and selling your business, you would sell it at an arm's length transaction (meaning no "hanky panky") and the price would be what you as a willing Seller accept from a willing Buyer. For example: your name is Mr. and Mrs. Joe and Jane Smith and you may own a restaurant known as Smith's Food and Grille, which you own the real estate of your restaurant. You have a vibrant business and your husband is the main chef and he is known for his special recipes, and the manager/hostess is your husband's sister, who greets every customer when they come in the door, and therefore your restaurant is known for "personal" food because of your husband, and it's a customer's favorite restaurant because it is where they are known by the owner and his family. You have agreed to sell the restaurant to another couple who will be taking over with the same plan, except that the wife will be the chef and the husband will be the host. Your husband and his sister have agreed to work in the restaurant for six months during the transition so all the regular customers get to know the new owner at the door, and the new chef understands the recipes 100% so the food tastes exactly the same. Therefore, because the building is worth $500,000.00 and based on the profit of the business, you have decided to sell the business for $1,000,000.00. Let's assume you sell the business for $1,000,000.00, you put it in a bank account, a year after that you get divorced, and assuming no "boutique" facts in your divorce case, the $1,000,000.00 is divided 50/50 between the two of you. Your husband received $500,000.00 and you received $500,000.00. HOWEVER, if you are the wife and divorcing with the business intact, you would think that the value of the business would still be $1,000,000.00 and you would think you're entitled to $500,000.00. This is INCORRECT. The reason why is "divorce world" is much different from the "real world", either to your benefit or detriment depending on the particulars of the facts in your case; and based on the facts in this case that "personal" goodwill is what is deemed a non-marital asset (meaning you are not entitled to any of the value of the business related to your husband's personal goodwill versus "enterprise" goodwill, which is a marital asset, (meaning you are entitled to a presumptive one-half of that value). Because the business is directly related to your husband's personal skill in the kitchen, and his sister would not continue working with any potential new owners (as the sister testified at her deposition) and your husband and sister have stated they would refuse to sign a "non-compete" agreement if the business was ordered for sale. Further note, it is likely an expert would determine the real property value worth $500,000.00, but the value of the business is worth only the assets themselves (often referred to as "liquidation" value) versus "capitalization" income approach value, and therefore, the operating account, food in the freezer and miscellaneous equipment which is not fixtures, tables, chairs, etc., value at $50,000.00, then the value of the business is $550,000.00 and you would receive only $275,000.00 as the wife versus $500,000.00 if sold and then divorced. Your husband has received a windfall of $225,000.00.
This is a perfect example of how facts are different in "divorce world" versus "real world" and how it can be of the utmost importance to seek consultation with a divorce attorney if you feel a divorce may be on the horizon in order to understand what potential future fact pattern is in your best interest (and of course the best interest of your children) at the first sign of marital discord.
Namaste'
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