However, people do often attempt to hide assets when they don’t want to divide them. For example, perhaps you recently filed for divorce from your spouse and they are angry about it. Since they do not want to end the marriage anyway, they may attempt to hide assets from you to keep you from getting what you truly deserve. There are four main ways that they may do this.
In some situations, people will simply make up false debt. Your spouse may say that they had to give $10,000 to their brother for an old debt that they had forgotten about, for example. Or, if they are a business owner, that may give them different ways to create phony debt and a paper trail.
In other cases, it’s as simple as a spouse just saying that a valuable item was lost. Maybe they have an extensive art collection. It would be suspicious if one of the most valuable pieces turned up missing.
It’s very common for people to just give assets away. They’ll choose someone that they trust to give the asset back after the divorce. This artificially lowers the amount of assets they own as they go through that divorce and allows them to avoid disclosure. In the example above, with someone transferring $10,000 to a family member, they could have an unwritten agreement in place to transfer that money back post-divorce.
Finally, some people say that an asset doesn’t exist. If they’re asked about overseas investments, for instance, they’ll say they don’t have any, even though they have accounts where they are storing money. This violates the requirement for full disclosure. They’re just hoping no one uncovers those assets.
Are you worried that your spouse is going to try to hide assets in one of these ways during your divorce? Be sure you know what legal steps you can take at this time by seeking legal guidance proactively.
]]>There’s clearly a divide between older and younger Americans. What is it that is causing older couples to split up at a higher rate when the exact opposite is happening to everyone else? These are a few common reasons why gray divorces may be on the rise.
One thing to consider is that many older couples may have had different views on marriage when they got married. Divorce was considered to be more taboo, and it was less common. There are some couples who may have wanted to get divorced even decades ago, but these social taboos may have dissuaded them.
Not only do young people not view divorce the same way, but they also don’t view marriage the same way. They are getting married later and cohabitating more often. This could lead to a decrease in divorce rates because a couple that breaks up without getting married doesn’t count as a divorce and because those who get married young don’t feel like they have to stay trapped in a marriage that they would like to leave.
It’s also worth considering that couples in this age group may be experiencing major life changes. One of the biggest ones involves sending children to college and suddenly becoming empty-nesters. When the children were in the home, they may have provided enough of a distraction that the couple didn’t worry about their own relational issues and may not have even realized that they were drifting apart. But those issues may have become much bigger once they began living alone, and they realized that their own relationship had changed over time.
Are you in this age group and considering a divorce? It can be complicated, especially when considering things like retirement and the division of assets. Make sure you know exactly what legal steps to take by seeking legal guidance as proactively as possible.
]]>They will also have to pay for filing fees and the services of their lawyer. The divorce process can cost tens of thousands of dollars, especially if spouses don’t agree on major issues. Litigation in family court tends to significantly increase the final cost for divorce proceedings. Therefore, contested divorces are usually more costly than uncontested proceedings.
Although it may seem counterintuitive at first, many divorcing couples in Texas find that bringing in a secondary outside professional can both speed up their divorce process and reduce how much it costs.
Couples preparing for divorce are often intensely emotional and have a hard time putting their long-term needs ahead of their short-term emotional struggles. The more that they fight with one another, the more they will typically have to pay. If they cannot resolve their major issues directly, then they will likely end up in family court, asking a judge to set all the major terms for their divorce.
A mediator does add to the total cost for the divorce by bringing in another service provider. However, when mediation is successful, it can significantly reduce how much the spouses pay for their divorce. Successful mediation results in a signed agreement outlining how they will resolve their existing disputes. That agreement leads to an uncontested divorce filing where the spouses have already set the terms for property division and custody matters.
Although they will still need to go to court, the amount of time that they require in front of a judge will be minimal, thus effectively limiting their cost as well. Mediators help facilitate earnest communication about what is necessary for a divorce and can sometimes help people compromise and worth together to resolve their disputes. Mediation can be especially useful for those with children who would like to shield their younger family members from the tension between their parents. Learning more about mediation and other tools can help those preparing for divorce use the best approach for their situation.
]]>Often, retirement savings are among the most valuable shared property couples have after a lengthy marriage. Retirement savings may add up to seven figures or more when people are close to retirement age. Even if they still have a decade or more to go before retirement, the balance in their account that could be close to the value of their marital home.
Not only do people worry about needing to divide those savings with their spouse when they divorce, but they will also often worry about losing some of those funds to penalties. Will the early withdrawal of funds from a retirement savings account during a divorce trigger penalties that will reduce the total value of the account?
The good news for those preparing for a divorce and expecting to divide their retirement savings is that if they have to actually split the retirement account, they can do so without triggering penalties and taxes that could consume a substantial amount of those savings. One of the lawyers assisting with the divorce can draft a qualified domestic relations order (QDRO) that reflects the terms set by the couple or the judge presiding over their case.
They then submit that documents to the courts for review and approval and will send the approved documents to the company or professional managing the retirement account. Even if it is many years before someone is eligible to retire, they can avoid penalties provided that the division of the account simply serves to transfer some of its balance into a newly formed retirement account in the other spouse’s name with a QDRO.
If either spouse actually liquidates those resources and pulls them out of savings to use, then taxes and penalties may affect how much they receive. Seeking legal guidance and knowing how to divide valuable assets effectively can help people reduce how much they’ll lose in their upcoming divorce.
]]>As a result, you’re considering a prenuptial agreement. You want to make sure that it’s very clear who owns which assets and how they should be divided. Just in case a divorce happens, you know that you’ll be ready. You may also be thinking about adding provisions to your prenup to ensure that you get custody of your children. For better and for worse, you’re going to need to adjust that particular approach though.
You cannot actually add child custody provisions to your prenup, even if you want to protect that time with your children and even if your spouse agrees to your wishes. You’re not allowed to address either child support or child custody in a prenup. This legal resource is just for financial decisions and other such issues that you and your new spouse agree on together.
The problem with adding child custody rights to a prenup is that they could be unfair to a future child. The court, after all, is concerned with the child’s best interests. Most of the time, these best interests mean they should have a relationship with both of their parents – and they should get proper parental support, if necessary. Therefore, waving the right to either one of those in a prenup could potentially have a negative impact on a child – as could agreeing to joint custody only to discover that one parent is unfit.
This doesn’t mean that prenuptial agreements are not beneficial. They certainly can be helpful, giving you security and protecting the assets that you own and setting expectations for your marriage. It’s simply important to understand exactly what legal options you have and what steps to take in order to make the most of your prenup without crossing any lines that could render it unenforceable.
]]>However, it can be a real challenge to actually determine what would be a fair solution for the division of community property. Spouses may disagree about the factors that should influence the decision, and sometimes they may even try to manipulate court proceedings.
One spouse hiding assets from the other is a prime example of manipulative tactics. This is a somewhat rare but consequential practice that involves actively hiding or underreporting personal holdings to avoid sharing them during a divorce. These are some of the ways that hidden assets can potentially affect the outcome of a couple’s divorce.
The unfortunate truth about hidden assets is that they can alter the outcome of negotiations or mediation between spouses. One spouse might agree to accept a very unfavorable property division settlement because they don’t understand the true scope of their marital estate.
A court order could also end up unfairly imbalanced if someone lies to the courts about what assets they have or the fair market value of their holdings. Those who don’t uncover the warning signs of hidden assets may end up struggling more than they should to rebuild financially after a divorce.
When either spouse notices warning signs that the other may have failed to report certain property or misrepresented the value of their assets, they may take extra steps to evaluate financial records. Those that uncover evidence of hidden assets and financial misrepresentation could potentially leverage that misconduct in court.
Typically, misconduct doesn’t influence property division in any significant way, but intentionally hiding assets does often trigger a penalty. The courts may alter how they divide the resources that belong to the spouses as a way of punishing the spouse that hid assets from the other spouse and the courts.
Understanding the unique challenges that may arise during high-asset divorces can help people more effectively prepare for divorce negotiations and court hearings with the assistance of a legal professional.
]]>That’s made negotiating an end to your relationship particularly difficult, if not impossible. You’ve been stuck at a stalemate for months now, with no sign of moving forward. Is there anything you can do? Here are some options:
Divorces are said to be “uncontested” when both parties are willing to sit down and work out the terms of their split on their own. When they can settle all major issues regarding the division of debts and property, issues of support and any surrounding possession of and access to the children, no drawn-out litigation is necessary.
If your spouse keeps making agreements only to break them or rescind their consent to some terms of the divorce hours after they give it, you may simply have to ask the court to intervene.
What if your spouse simply acts as if the divorce isn’t happening? Whether they’re just being stubborn or they genuinely believe that you can’t get a divorce if they refuse to respond to your petition, that’s no barrier.
You can ask the court to issue a default divorce judgment. This may slow your divorce down a little as the court makes certain that your spouse has been given a fair opportunity to respond, but a default judgment will generally be everything you ask for in your petition.
Maybe your spouse is purposefully “hiding out,” so that they cannot be served with your divorce petition. Again, they may think that you cannot get a divorce (nor get support from them) until you find them – but that simply isn’t so.
If all other attempts to serve your spouse with the divorce petition the normal way have failed, you may be able to ask the court for permission to use an alternative method of delivery, including through social media or publication.
People often try to play mind games when they’re unhappy about a spouse’s decision to seek a divorce, but you don’t have to let that stop you. Experienced legal guidance can help you find a way through.
]]>Some parents in Texas who are trying to make their shared custody arrangements work will find themselves facing what seems like an insurmountable challenge. When one of the parents wants to leave Texas, possibly for a new romantic relationship or a job offer, the other may worry about what that move would mean for their relationship with their children.
Can one parent pack up and leave Texas with the children when there is a shared custody order in place and the family currently lives in Texas?
Those subject to a custody order cannot simply do whatever they want in life. They have to abide by that custody order or obtain permission for any significant deviations from it. A parent intending to move far enough away from the other parent or their current residence that the relocation would affect custody exchanges will typically need to notify both the courts and the other parent of their intention to relocate.
Sometimes, both parents agree that the opportunity would be worthwhile and beneficial for the children. They can potentially rework the custody arrangement to accommodate the significant distance between households. Perhaps the children will spend summer vacation with one parent to make up for spending the school year elsewhere. When the parents are in agreement, they can submit paperwork for an uncontested custody modification.
When the parents disagree about whether the move is appropriate or how they would adjust custody to accommodate the relocation, they may need to go to court to litigate their custody arrangements. A judge hearing a relocation request will consider what they think would be best for the children.
While the courts cannot technically prevent one parent from relocating, they can drastically alter the custody arrangement so that the children will not leave the state with them. The outcome of litigated move-away cases depends on the judge’s perspective.
Those preparing to go to court to litigate a custody modification should keep in mind that the judge will always care more about what is best for the children than what the parents wish. Understanding the rules that apply to changing custody orders will benefit those who are trying to co-parent in Texas and who may be currently grappling with some tough decisions.
]]>It isn’t always easy to co-parent, but it’s usually a good arrangement for the children. Both parents will have to take steps to make the situation as easy as possible. These five tips may help to take some of the stress out of co-parenting.
You and your ex need to remain flexible so the children can get what they need. It might be necessary to switch parenting time or to make certain changes. Working as a team can make this easier.
Encourage your children to have relationships with people on both sides of the family. They might be worried that you won’t like them enjoying your ex or that side of the family, but you have to squash that fear by showing them you support those relationships.
Direct, respectful communication between you and your ex is important when you’re co-parenting. Never try to use the children as messengers because messages may be misconstrued.
You can’t live in the past when you co-parent, so leave the issues that ended the marriage alone. Instead, focus on helping your kids adjust to the new way of life. It may help you to remember that even a terrible spouse can make a fantastic parent.
Resist the urge to try to find out what’s going on with your ex’s love life. Instead, focus on building your own future. The only time you should worry about your ex’s love life is if it’s putting the children in danger.
Parents should do what they can to help their children thrive despite the major life upheaval that comes with divorce. The parenting plan is one way they can do this. Remember to set this based on what the kids need right now. As time progresses, you can modify the plan to meet their new needs.
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