Why you need to know about your spouse’s business

Income is a key consideration in any divorce. Under Wisconsin law, both spouses’ incomes are factored into determining how much spousal maintenance or child support one spouse may be required to pay as it is a community property state wherein assets are divided equally. Substantial changes in income may warrant a post-divorce modification in alimony or child support. Given the key role income plays in family law considerations, it is important that anyone going through divorce has a good handle on what his or her spouse earns.

In most cases, a spouse’s income may be ascertained and easily determined by looking at W-2s and pay stubs. Determining income becomes trickier if the spouse is self-employed. When a spouse runs a home cleaning or maintenance business, a lawn service company, or even a bar or restaurant, much of the income will come in the form of cash, which is easily hidden and can be used to purchase a new luxury vehicle, a golf-course condo and other high-end items that significantly increase one’s net worth without ever making its way onto an income statement.

When a spouse runs a cash-based business, questions are likely to arise during divorce about how accurately the income has been reported. If one spouse knows the other spouse had underreported income in the past, there may be a presumption that current income also is being understated. If the other spouse does not have an adequate understanding of how the business operates and where to find the cash flows, the missing income may be hard to track. Options to locate income discrepancies during divorce include a lifestyle analysis tool and a forensic accountant.

An experienced family law attorney can help ensure that all income be accounted for during a divorce, and he or she may also assist in assembling a team of financial experts to track down hidden cash.

Source: Forbes, “What A Divorcing Woman Needs To Know About Her Husband’s Cash-Based Business,” Jeff Landers, Jan. 30, 2013

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Spouse may be entitled to keep life insurance

When couples divide property in the process of negotiating a divorce settlement, they may find that one or the other has a life insurance policy with no cash value. In cases in which the family law judge has ordered the couple to divide everything equally, it is often difficult to determine the true value of a life insurance policy.

In most cases, the owner of the policy is the person who pays the premiums. That person can designate any beneficiary he or she chooses. For example, if a husband has a policy on his own life and pays the premiums, he may designate one of his children or a subsequent spouse as the beneficiary, leaving the former wife with no proceeds from the policy.

In these cases, it is sometimes best for the partner who needs the life insurance proceeds to take over payments on the policy and name himself or herself as the beneficiary. If the owner agrees, this is an easy transfer in most cases. In other cases, such as when a former spouse is responsible for child support, the custodial parent may wish to have a life insurance policy on the paying spouse in case of his or her sudden death.

A family law attorney may be able to assist partners in making life insurance and other financial decisions pursuant to a divorce action. An individual facing divorce must make many decisions and some of them are about division of property. Obtaining a fair and equitable distribution of property is the most important goal for any couple who want to retain their financial independence and exit the divorce in the best possible financial position.

Source: Fox Business, “Don“, Jack Hungelmann, May 06, 2013

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Ways to improve communication with your ex

Newly divorced people in Wisconsin might be frustrated at having to keep up communication with their exes after they have dissolved their marriage. After all, that is part of the reason why some people choose to get a divorce, because they don’t want to be together anymore. However, if there are children or other affairs involved, it is sometimes necessary to try to communicate for the sake of the circumstances.

There are various ways that people can deal with communicating with their exes. Some of the biggest disputes in family law may be caused by lack of communication. Some Huffington Post divorce experts state that there are three ways to communicate better with exes. The first way is for people to change their situations. They can approach their ex as if they were a stranger and be pleasant to them in the same manner they would a cashier at the supermarket.

Another approach people can take is to eliminate their situations. They can choose to cut off all direct or verbal communication with their exes. They could choose to only communicate about important issues like visitation, school and activities and they could do so through text, email or through their attorneys if they don’t feel they can emotionally communicate directly with their ex just yet.

Another way that people can communicate better with their exes is to simply accept the situation for what it is. They can accept that their ex may not change, learn how to ignore any snide remarks, sarcasm and bad behavior. Acceptance may make dealing with the situation easier for everyone involved. Family law attorneys might be able to assist people who are going through divorces communicate with their exes. They might also be able to help them come to an agreeable divorce settlement.

Source: Huffington Post, “3 Ways to Communicate Better With Your Ex“, Honoree Corder, August 02, 2013

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Divorce can be more complex for gay couples

While most married couples in Wisconsin or elsewhere do not assume that their marriages will end in divorce, same-sex married couples are finding that there may be obstacles in obtaining one. As a result, same-sex couples currently divorce only half as often as do heterosexual couples, but that may change as such marriages become more common and as legal barriers get resolved.

Perhaps the biggest pitfall to same-sex divorce occurs when couples are legally married but now reside in a state that does not recognize those marriages. Courts in those states will not grant a divorce for a marriage that under their laws never occurred. One solution would be to try to establish residency in a recognition state in order to qualify for a divorce, but this can be costly and time-consuming. A prenuptial agreement will not legally terminate a marriage, but it can provide for a division of property and help couples move on with their financial lives if they decided to split up.

Another issue can arise when a couple cannot agree to a custody arrangement. When a non-biological parent wants to share custody with a biological parent, problems can arise in the event of a disagreement. The best way to avoid such an issue in the future is for the non-biological parent to legally adopt the child at the time of birth. Even states that do not allow same-sex divorce will be required to recognize the adoption.

Same-sex couples who have questions or concerns about their marital or parental rights may wish to speak with an attorney who has experience in family law. The attorney may be able to give them advice and counsel concerning such matters as divorce and child custody.

Source: CNBC, “Gay couples find divorcing has traps“, Judith Messina, October 16, 2013

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Law seeks to improve accuracy of adoptees’ birth dates

Wisconsin readers may be surprised to learn that some parents of adopted children born internationally are given inaccurate birth dates for their children. In some cases, the dates are off by a number of years. Parents with children that are found to be a different age than the date listed on their birth certificates may encounter a host of complications including confusion over which grade to place them in school. As children grow older, conflicting birth dates can create significant problems for adoptees including allegations of identity fraud and issues with school placement.

It can be difficult to resolve the issue because, although there is a state court process in place that will allow a family to request an amended birth date, federal agencies currently do not accept the changes. Adoptive parents can present state courts with educational dental and medical evidence to support the amended dates request, but this leaves the children with conflicting federal and state records.

The Accuracy for Adoptees Act, which is currently awaiting a signature from President Barack Obama, seeks to require federal agencies to accept state-court determined birth dates. The act was introduced into legislation in October and received support from both Republican and Democratic lawmakers. Congress approved the bill just in time for the holiday break.

The process of adopting a child internationally can be very complex as it is subject to state and federal laws and regulations as well as the laws and regulations in the child’s birth country. An attorney with experience in family law may be able to assist prospective adoptive parents to avoid legal entanglements and help ensure a smooth and accurate adoption process.

Source: USA Today, “Law aims to address adoptees’ birth date problems“, Kim Mulford, January 14, 2014

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More grandparents have custody of grandchildren than ever before

Many Wisconsin residents may be interested to learn that, according to a report published on Aug. 5, more grandparents have custody of their grandchildren than ever before. Across the nation, the number of children who are in the care of their grandparents has doubled from 2.4 million in 2000 to 4.9 million in 2010.

In some cases, children may often be placed with their grandparents if their biological parents can no longer take care of them. This is because individuals who are responsible with placing children into different homes usually attempt to place the child with relatives or close acquaintances who know the child before resorting to other options. Grandparents are often preferred because, in most cases, they can provide a stable, caring home for the child when the biological parents are simply unable to.

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End of the line for Cannon and Carey? Separation fuels rumors

There are many married couples out there that, when rough times become too much to handle, they jump straight to a divorce proceeding. While this is an understandable action to take, sometimes it behooves a spouse who is going through some marital troubles to take a step back and think through what their next course of action should be. In situations like these, legal separation can be a very helpful tool.

In some ways, legal separation is like a divorce. Many of the same issues are at play, and the spouses can talk through some crucial elements of their marriage. However, unlike divorce, legal separation doesn’t actually end the marriage in a legal sense. It gives the two spouses some time apart (even if that is only in namesake) to consider the prospects of permanently ending their marriage and what that would mean for their lives.

Legal separation can still be a complex process, so you need to consult with an attorney before making such a move.

We bring all of this up in light of some rumors surrounding the marriage of Nick Cannon and Mariah Carey. The celebrity couple is apparently going through a tough time, but they have not officially divorced. Cannon recently said that the couple had not been living together for a few months. Whether they filed for legal separation or not is unclear.

They have two children together and would certainly have significant assets to divide during the divorce process, should they ultimately choose to go that route.

Source: Huffington Post, “Nick Cannon Confirms Separation From Wife Mariah Carey,” Lauren Zupkus, Aug. 21, 2014

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The prenup question: is a prenup right for you and your spouse?

Imagine that you are your significant other are engaged and your wedding day is only a few months away. You are thinking about talking to your significant other about a prenuptial agreement, but you are afraid of the ramifications — or even what you’re supposed to say. You fear that merely saying the word “prenup” could spell trouble for your marriage before it even begins.

The stigma of prenuptial agreements is very strong, and what many married couples need to realize is that a prenup isn’t anything more than a contract. It doesn’t have to be the be-all-and-end-all of the status of your marriage. In fact, discussing a prenuptial agreement and eventually having one can be good for the marriage.

It creates a platform for the spouses to voice their concerns about certain elements of the marriage, and it could even bring up topics that the spouses never even thought to confront. And then, they can address these issues in the prenup, thus sparing them stress and anger should the issue arise later in the marriage, or, hopefully not, in a divorce.

So should you get a prenup, or should you avoid the topic altogether and hope for the best? It’s entirely up to you, but remember that the contract is meant to protect you and your spouse — not to be a hindrance to your marriage. If you have questions about prenups or if you’re unsure as to what you can put in a prenuptial agreement, consult an experienced family law attorney.

Source: credit.com, “Should You Get a Prenup?,” AJ Smith, Aug. 29, 2014

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What is family support in Wisconsin divorce cases?

In Wisconsin, there are three different types of support that may be ordered in a divorce. Like other states, Wisconsin provides for child support and spousal maintenance payments. Unlike many other states, however, Wisconsin law also allows for a third, hybrid type of support called family support.

Family support is a hybrid type of support covering both child support and spousal maintenance components. Unlike child support, which is not deductible by the payor or taxed to the recipient, the payor is able to deduct family support payments. Recipients of family support are also taxed on the payments they receive on their income tax returns.

When someone is in arrears in owed family support, they are assessed interest on the arrears amount at a rate of 1 percent per month on the amount that is equal to or greater than any child support amount that is owed. The amount of interest will continue to accrue until the delinquent amount is paid.

Some people in Wisconsin may benefit by reaching a settlement agreement in which they agree to designate combined child support and maintenance payments together as family support. In some situations, such as when one spouse has significantly more income than the other, doing so may help the payor reduce his or her overall tax liability, allowing for more money to be dedicated to making support payments. In some cases, this can allow people to reduce the overall tax liabilities they may have, increasing the attractiveness of agreeing to family support payments. People who are interested in learning more about the availability of family support in lieu of potentially separate child support and maintenance awards may wish to consult with their family law attorney about designating expected support payments as family support.

Source: Wisconsin Legislature, “767.531 Family support. “, November 25, 2014

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Understanding child support: What does it cover?

Once a Wisconsin court establishes a child support order, support payments will be distributed via direct deposit or state-issued debit card. Under Wisconsin law, a parent must support his or her child until the child is 18, or until age 19 if the child is still in high school or a GED program. Thus, child support is a long-term financial arrangement; it is important that parents understand what it covers.

In general, child support covers a wide range of expenses that contribute to a child’s well-being. Those expenses can generally be divided into two categories: basic necessities and secondary necessities. Child support covers expenses in both categories, even if the recipient parent shares some of those expenses, such as housing, with the child. Food, medical care, shelter and clothing are considered basic necessities. Medical expenses include regular costs associated with insurance as well as extraordinary medical expenses such as surgery, deductibles, orthodontics and eyeglasses. Child support may be used to pay for both types of medical expenses.

Child support may also be used for secondary necessities, including child care, educational expenses such as school supplies and tuition, extracurricular activities such as sports and music lessons, transportation and travel for school and extracurricular activities, and basic entertainment. Child support orders may contain specific guidance for sharing the cost of these expenses, but a parent also usually has the option of using child support payments for these secondary necessities.

If a parent has questions about how to use child support payments or about how the other parent is spending child support payments, a family law attorney may be able to provide guidance on Wisconsin child support law. Family law attorneys can also identify appropriate justifications for modifying existing child support orders when the established amount is too low or too high.

Source: Findlaw, “What Does Child Support Cover?“, December 24, 2014

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