The impact of social media on Wisconsin family law disputes

Social media has changed the way we interact with our friends, family and acquaintances. Some individuals use venues like Facebook and Twitter to document every aspect of their lives. While staying connected with family and friends is generally a good thing, individuals who are in the middle of a divorce or custody dispute need to be aware that the words and images they post may be used against them in court.

Unfortunately, it’s not just vicious postings and photos of inappropriate behavior that can cause trouble. Even seemingly innocent postings or photos of family activities and vacations can be harmful. For instance, an argument by a spouse that they cannot afford to pay spousal support could be hindered by pictures of luxurious vacations or fancy cars. If one parent criticizes the other parent on social media it may be used to show that they are undermining the other parent’s relationship with the child. It’s not just a spouse’s postings that can cause trouble. If a minor child posts pictures of themselves engaged in a dangerous activity, it could reflect poorly on the parent who was caring for the child at that time.

Deleting these posts and pictures does not ensure that negative information will not surface in a divorce or custody proceeding. In some instances, these deletions can be construed as destroying evidence. The best advice is to consider how the posting or photo could be used by an estranged spouse prior to placing anything online.

Misuse of social media is just one of the many innocent mistakes made by individuals who are in the midst of divorce and custody proceedings. A divorce attorney may be able to help individuals avoid or lessen the impact of seemingly innocuous postings.

Source: The Huffington Post, “The Divorce Mistakes You Don’t Even Know You’re Making“, Taryn Hillin, March 18, 2014

Hidden assets in divorce proceedings

As many Wisconsin residents have discovered, any divorce has the potential to be a complicated affair. That being said, the diversity of possible complications often increases during a high asset divorce simply because of the range of assets these situations often involve. In these cases, one of the primary difficulties a divorcing party may encounter lies simply in the act of forcing a complete disclosure of the other’s assets and liabilities, particularly due to some people’s proclivity for hiding such things about themselves.

According to one divorce mediator from the Institute for Divorce Financial Analysts, complete disclosures are a necessary component in attaining an equitable settlement. Sometimes divorce members try to hide assets using offshore accounts or other such matters, but they can also be something as seemingly benign as a recent loan made to a family member. In addition, many assets can be hard to quantify – consider, for example, the difficulties posed by attempting to designate ownership of a stock that was jointly owned during marriage.

While such issues may seem irrelevant to some, they do not necessarily pertain only to high asset divorces; things like basic 401(k)s and individual retirement accounts can also be on the table in cases where both spouses contributed to their maintenance over time. If a former partner has failed to disclose the extent of his or her asset portfolio, it may do a disservice to the other and prevent them from receiving what is rightfully theirs.

Whether the divorce is high asset or not, someone involved in one who suspects that their spouse has not been entirely forthcoming about their financial situation may wish to have the matter investigated more thoroughly. A divorce attorney may help clients get their fair share of the marital property.

Source: Financial Planning, “Finding Hidden Assets: Digging Deep in HNW Divorce”, Andrew Pavia, March 24, 2014

Political power couple, art collectors’ divorce not so amicable

Wisconsin art aficionados may be familiar with the art-collecting Washington power couple Tony and Heather Podesta, if not for their valuable holdings then perhaps for their lobbying activities. It seems that the couple’s divorce, part of a split announced in 2013 and characterized as amicable, may not be as friendly as they had originally portrayed.

Tony Podesta filed for marital dissolution in April 2014, accusing Heather Podesta of misleading him about their chances for reconciliation when he provided half the down payment on her new mansion in March 2013. At the same time, he says, she had already started a new relationship unbeknownst to him. In addition, he claims that his wife had contacted prestigious museums requesting that they block him from donating art to them. She is also accused of changing the locks on their shared Italian apartment to keep her husband out. The filing claims that Heather Podesta had sought to harass and embarrass her husband in an effort to gain financial leverage over him.

The Podestas were a major power inside the Washington Beltway during the presidency of Bill Clinton. Tony Podesta’s brother was chief of staff for the White House and later served as a counselor to President Barack Obama. Heather Podesta was formerly a Capitol Hill staffer and started her own lobbying firm in 2007.

Power couples may face as many emotional challenges as those less influential when it comes to filing for divorce. Property division, child custody and spousal support are contentious legal issues that many face during the marital dissolution process. However, divorce attorneys can provide guidance so that their clients can keep control of the assets that really matter to them.

Source: The Washington Post, “Tony Podesta divorce filing: wife Heather Podesta tried to ‘embarrass and harass’“, Emily Heil, April 03, 2014

Divorce may have outsize impact on couples’ tax status, liability

Wisconsin couples both married and unmarried may know that marital status has an effect on the taxes they have to pay. A wedding means it’s time for a change in their tax situation, but so does a divorce. Filing status may be the first change that comes to mind when thinking about how life events affect one’s tax burden, but sharing expenses and income as a married couple can have a large impact at tax time.

Financial planning experts frequently offer tips to taxpayers trying to figure out their new obligations to the Internal Revenue Service. They suggest what some may already know: Filing status is important for figuring one’s tax burden, possible exemptions and credits such as the one for earned income. Whatever a taxpayer’s marital status is at 11:59 p.m. on Dec. 31 of the year for which the return is being filed is that person’s status for the entire year. Until a divorce is final, each spouse still falls into the “married” column.

Being married or single isn’t the only filing status; should a household include a qualifying dependent, a single person can file as the “head of household.” When it comes to married couples, choosing to file a joint return means that each spouse shares equally in any tax liability imposed by the IRS. Married people can choose to file as “married filing separately” to avoid this commingling, but doing so may take away eligibility for certain credits as well as expose each spouse to higher tax rates.

Filing for divorce is just the first official step in dissolving a marriage. Important divorce legal issues such as property division, alimony and child support may still need resolution. Family law attorneys may be able to help divorcing spouses access resources that could contribute to an outcome agreeable to all parties as well as represent divorcing spouses in court proceedings as needed.

Source: Yuma News Now, “How Marriage And Divorce Can Impact Your Taxes”, April 05, 2014

Pets a new bargaining chip in divorce

Children are not the only possible bargaining chip in a Wisconsin divorce. Sometimes, pets also become a pawn in the game of deciding who keeps what assets after a couple dissolves their marriage.

After all, most people become emotionally attached to their dogs, cats or other animal companions. In fact, a soon-to-be ex-husband or ex-wife might use the pet as a tool for extortion. For instance, he or she might try to fight for a furry friend they may not even want. Sometimes, they do this just so a spouse gives up some other valuable item, but how does this happen?

Well, spouses often negotiate possession of pets the same way they discuss ownership of a table, chairs, sofas, beds, coins or other objects. After all, the law usually considers animals pieces of personal property. Unlike in child custody cases, where the law requires that the best interests of the child be considered, the best interests of the pet may be ignored.

In most cases, the court probably would rule in favor of the original pet owner. However, the person who takes care of the animal and brings it to the vet for checkups might have some say in the matter. Otherwise, placement of the pet might depend on where the kids will live.

Another factor to consider is lifestyle. For instance, a person who travels all the time for business may have time for a dog, cat or other pet. Likewise, anyone who frequently reports to work on a moment’s notice might also not have the time to feed, groom or wash an animal. Therefore, the court may rule in favor of another person who stays home and has a more predictable work schedule.

Source: Forbes, “How Are Pets Handled In Divorce?“, Jeff Landers, April 17, 2014

Identifying all assets can be challenging during a divorce

Some of the most contentious disagreements that arise during a divorce revolve around the division of marital property. It is not uncommon in Wisconsin for individuals involved in a divorce to attempt to conceal assets from their spouse. Because finding hidden assets could significantly impact the size and scope of the final settlement, it is important to do everything possible to discover all marital assets before the proceedings are finalized.

Making a formal legal request for a complete report of all financial accounts and outstanding debts can be an important way to begin a search for hidden assets. Issuing a subpoena for financial documents could provide a reluctant spouse with an extra incentive to be more complete in their disclosures. Loan applications are another type of financial document that could provide important clues about a spouse’s assets, since the loan application process often requires significant and detailed documentation of assets.

Examining tax returns is another way to identify clues that could lead to assets that an individual may have been unaware during the course of their marriage. Tax returns can provide clues to taxes paid on previously hidden real estate, investments, or even employees. Whether an asset was hidden or not, it is also important to obtain documentation establishing when the item was purchased. This information can provide a clearer picture of who actually is entitled to maintain ownership of an asset after the divorce.

An individual going through a divorce could benefit from a consultation with an attorney who has experience in this area. Assistance in obtaining an accurate inventory of marital assets can be invaluable in subsequent negotiations of a property division agreement.

Source: NJBIZ, “Industry Insights: Discovering hidden assets in divorce“, Angela Scafuri, April 21, 2014

Baby boomers’ finances during divorce

Wisconsin individuals who are going through divorce may have concerns regarding their finances after the split. However, this concern is even more acute for older couples. These individuals might worry about their ability to retire after their funds are divided during the divorce process. Another valid concern is how a person will be able to acquire employment later in life if he or she has spent decades out of the workforce to care for the couple’s children, for example.

One way that baby boomers can protect themselves during the divorce process is to learn about their finances. One spouse may often defer to the other spouse to handle finances. This is why it is important to pull credit reports for both spouses, as one spouse may discover that the other has developed credit in their own name only. Therefore, one spouse may not have the same development to their credit, affecting their future credit card and loan applications.

Once a baby boomer takes stock of his or her financial picture based on credit scores and balances in financial accounts, he or she can begin considering a divorce settlement. While the marital home is often a point of contention, it may not be worth fighting over. After evaluating the costs associated with maintaining the property and the income level that a baby boomer might have after the divorce, the best option may be to have the other spouse buy out his or her share. Then, they should make sure to take their name off the mortgage.

Individuals who are going through divorce may have a chance to negotiate a divorce settlement that is favorable to him or her. This settlement may take the form of asking for each spouse to retain his or her own retirement account and asking the other spouse to refinance the mortgage in a single name, among other possible courses of action.

Source: Fox Business, “Divorcing Baby Boomers: How to Get a Financial Grip“, Donna Fuscaldo, April 30, 2014

Financial steps to take when going through a divorce

Wisconsin residents who are about to embark on a divorce may not realize how many financial considerations need to be taken into account in the family law proceedings. Wisconsin is a community property state, meaning that assets acquired during marriage must be equally divided between divorcing spouses. These assets may include income that is not yet in liquid form, such as an IRA or a retirement account. A transfer of retirement funds from one spouse to another could result in unfavorable consequences if not done correctly.

Spouses may use a Qualified Domestic Relations Order to transfer a portion of IRA and other plans to another party without facing negative tax consequences. Individuals may also need to revisit retirement plans and life insurance policies to change the beneficiary designation, and they may also need to change the calculations previously made in their retirement planning.

Another tax consideration presents itself when property is transferred from one spouse to the other. Parties to a divorce should consider their estimated future marginal tax rates as they will stand after a property division is effectuated, since one spouse may have a higher capital gains tax on a future disposition than the other. In addition to separating community property, spouses will also need to separate their finances and the money they hold in joint accounts. Parties should be careful to close all joint accounts and to open separate accounts in order to establish their own line of credit. Parties should also rewrite a mortgage in the sole name of the party who keeps the home.

An attorney may help individuals assess their business cash flow and their personal budget. Individuals may also want to review their estate planning documents and consider them as they relate to a property settlement. Family law attorneys may help individuals conduct discovery to uncover the assets that should be taken into account when negotiating a settlement.

Source: Dentistry IQ, “Important considerations for the couple going through a divorce: Part 2“, Theodore C. Schumann, May 18, 2014

Dealing with the financial details of divorce

Wisconsin residents may be interested in a recent article that discusses how an individual’s finances are impacted during a divorce. There are many important issues to discuss with an attorney or finance professional when filing for a divorce, and many couples do not consider all of the variables without guidance.

One of the most important aspects of any divorce is property division. Absent an agreement between the spouses, courts in Wisconsin will use equitable distribution principles in dividing up marital assets. This does not always mean that the division is necessarily equal. Tax is an important consideration during property division, and it is something that many couples overlook. Income and expenditures can change dramatically after a divorce, and if one spouse is a much lower income earner, it may be advantageous for that spouse to get assets that will have a lower tax associated with them. If a spouse with a lower income ends up with the large family house, for example, they may end up with a tax burden on that property that they cannot afford.

Retirement accounts are also important to keep in mind during a divorce. These accounts are usually factored as part of the property to be divided when the court issues a qualified domestic relations order. Taxation is again a factor here. If one spouse is awarded part of the other spouse’s retirement benefits then they can withdraw that money from the account and roll it over into a new account without the normal early withdrawal penalty that would be applied.

A couple can continue to file their taxes using the joint return status until the actual divorce papers are signed and the order is issued. This can allow both spouses one final term of lower tax before they must file as single.

Source: Nerd Wallet, “Divorce: Making Sense of the Confusion“, J. Kevin Stophel, June 03, 2014

Director deals with major divorce

Wisconsin movie fans may be familiar with director Michael Moore and his current divorce, which one source has characterized as “vicious.” Moore and his wife of 23 years, Kathleen Glynn, are undergoing a split. Sources did not name a specific reason for the divorce, but a major point of contention will be Glynn’s use of marital funds to build an expensive vacation mansion on a lake in the couple’s native Michigan.

Moore’s attorneys are alleging that the building of the house has done considerable damage to his reputation. To back up their assertion, his lawyers have called in two of Moore’s agents, one of whom is the book agent who secured several of Moore’s successful book deals. The agents will attest to Moore’s niche role in Hollywood and how having ownership of the luxurious house has impacted his image as a man of the people.

The attorneys will also be introducing into evidence various news articles about the house, including one that describes it as a sign that Moore is hypocritical. The couple also owns eight other properties in various locations. The divorce proceedings will deal with this aspect of property division, as well as a decision on how to split the millions of dollars earned during the couple’s time together.

For those who are about to undergo divorce for the first time, it may be extremely difficult to determine what to expect. For these people, it may be helpful to talk to a lawyer who has experience in divorce law. The attorney may be able to explain what to expect and help guide the client through the process.

Source: Fox News, “Director Michael Moore enmeshed in vicious divorce“, June 08, 2014