Tag Archive for: family law

Could it Happen in Wisconsin? Gibson to pay $20k in Child Support

In a story that cannot escape from the headlines, Mel Gibson has been ordered to pay an increased amount of child support to Oksana Grigorieva. Previously, he had been required to pay $5,000 monthly to Ms. Grigorieva for the needs of their daughter, Lucia. Now he’ll need to pay $20,000 each month.

Ms. Grigorieva argued the previous amount of $5,000 was insufficient, because eleven-month-old Lucia required extensive security around the clock. Grigorieva apparently requested as much $60,000 per month. In this case, the family court judge did not give her everything she requested, but $20,000 is no small sum. If this was a Wisconsin child support case and not one coming from Hollywood, one would have to ask: Can a father be ordered to pay as much as $20,000 per month for only one child?

The state of Wisconsin has established a formula for determining the amount of child support to be paid. The most important factors are the gross income and assets of both parents. When it comes to couples who have a large disparity in net worth or earning power, large child support awards like the awards in the Gibson case are very possible.

It is important to note that family law judges have a significant amount of discretion when it comes to fixing an amount for child support. Judges can order a greater amount than the fixed percentage, or a lesser amount. The most important factor in this type of decision is the best interests of the child, and the state of Wisconsin has established procedures for judges to depart from the guidelines. Because judges have significant power in deciding how much support is to be paid, it is important to be fully prepared at child support hearings.

St. Petersburg Times: Oksana Grigorieva gets $20k in child support per month from Mel Gibson; Joshua Gillin, 10/1/2010

Child support enforcement proceedings delayed in Wisconsin

Child support payments are vitally important to provide for the well-being of children. When a child support payment is missed, it is usually the child who suffers most.

However, child support enforcement proceedings are mired in prolonged backlogs and delays in some areas of Wisconsin. In Lincoln County, the problem is being felt most acutely. Many residents have to wait through numerous delays as the Child Support Agency struggles with a growing caseload.

In September 2005, there were six Lincoln County caseworkers who managed 1,165 open child support cases. Then, each caseworker managed about 194 cases each. However, budget cutbacks led to the elimination of three caseworker positions. As of early this year, there were 1,622 open child support cases with the three remaining caseworkers managing an increased workload of about 540 cases each.

In the past, it was common for a child support case to be heard within two months after its filing date. Presently, many Lincoln County residents are waiting six months or more for a court hearing. Lincoln County is now in the process of training a fourth caseworker to help with the backlog and delays.

The problem is magnified by the high rate of unemployment in Lincoln County. As of February, the unemployment rate in Lincoln County was 11.8 percent. This causes more parents to fall behind in child support payments and child support payments are being withheld from unemployment benefits.

If you have questions about unpaid child support and child support enforcement, an experienced family law attorney can advise you of your legal rights and options.

Source: Wausau Daily Herald, “Child support cases explode in Lincoln County,” Karina Gonzalez, 4/2/2011

Married couples now lead fewer than half of Milwaukee households

Just as the face of the American family has changed, the way family law affects Wisconsin families has changed over the years. Just over 20 years ago, more than 60 percent of family households in Milwaukee were occupied by married couples.

In 2000, 55 percent of family homes in Milwaukee were occupied by a married couple. Today, only 49.5 percent of family homes are occupied by married people. Now, single parents lead the majority of family households in Milwaukee, according to the latest U.S. Census figures. The latest statistics say that women running households without husbands are four times more common than men without wives.

Roberta Coles, the chair of Marquette University social and cultural sciences department, says the trend is no surprise in a society where marriage has lost some of its charm. Coles also blames the economy. In some cases, Coles says, couples want to be married but just can’t afford it.

Even without the commitment of marriage, people are still in plenty of relationships and they are still having children. Some couples are waiting for the right financial moment to tie the knot, while others are completing education and career goals before marrying.

With poverty prevalent in Milwaukee, Coles says it’s likely that brides and grooms will continue to wait to walk down the aisle. The Marquette University chair said that poverty reduces the likelihood of marriage and increases cohabitation.

It is important to note that an increase in the number of children born to single parents has a significant impact on family law in Wisconsin. While a drop in marriage rates is likely to produce a drop in divorce rates, an increase in the rate of children born to single parents will make different types of family court proceedings more important. Without a divorce case that decides family issues, child support and child custody cases will be needed to determine both parents’ rights and obligations towards their children.

Source: Milwaukee Journal Sentinel, “Married couples dip below half of Milwaukee family households,” Georgia Pabst and Ben Poston, 5/11/2011

Wealthy socialite accused of child support fraud

Milwaukee residents may be interested to learn of a high-profile case involving a billionaire Wall Street financier and a well-known socialite. The couple has a five-year-old daughter. The mother is accused of conspiring with her boyfriend, a partial owner of the Tampa Bay Rays and a former executive at Goldman Sachs, to conceal her income in order to fraudulently obtain child support payments of approximately $50,000 per month from her former partner.

The suit was filed in a U.S. federal district court. Court documents allege that she fraudulently obtained the support payments to “improve upon her already extraordinary life of luxury, privilege and modest fame.” The 43-year-old mother is wealthy in her own right as the daughter of the former chairman of HSBC. She travels the world as an athlete and mountain climber.

The mother is accused of conspiring with her current partner to fraudulently classify millions of dollars in gifts as loans in order to avoid having those amounts considered in a child support determination. Classifying the cash payments as loans also allows the man to avoid paying IRS gift taxes on the money. Neither the mother nor her partner responded to several requests that they comment on the situation.

When a parent lies about income in order to affect the amount of child support paid or received, that may be considered fraud. A family law attorney may be able to help the other parent bring an action to have fraudulent child support awards set aside and to ensure the appropriate amount of support is paid. An attorney may also be able to negotiate a settlement to allow the parties to avoid going back to court.

Source: CNBC, “Millionares Clash Over Socialite’s Child Support Claims,” Peter Lattman, April 26, 2013

Don’t forget about IRS when deciding divorce agreement

The IRS has some very interesting rules when it comes to reporting the income and assets of divorcing couples. To make it even more complicated, those rules are different in community property states like Wisconsin.

The first thing to know before you check the “married” or “single” box on your tax return is that the IRS wants to know what your marriage status was on Dec. 31. If your divorce became final on Jan. 1, you must check the married box. If you live in Wisconsin, the state treats both incomes as community property and you may have to include part of your spouse’s income as your own for the part of the year you were still married.

You and your ex-spouse must also decide who is going to claim head of household – and take advantage of the greater deductions – for the part of the year that you were married. Generally speaking, if you paid for more than half of the housing costs for the year, and/or lived on your own for more than six months, and/or the children lived with you for more than six months, you can claim head of household.

You must also decide who is going to claim the tax write-off for the children. Usually the parent with whom the children live with the majority of the time will take the write-off. If there is shared parenting time and joint custody, some couples take turns claiming the children every other year.

Keep in mind when determining and agreeing to alimony and child support payments that alimony is deductible by the payer and must be claimed as income by the payee. Child support is neither of those things so you must be careful how you describe certain payments in the divorce decree.

When dividing assets and property, the IRS can hit you unexpectedly. If you are awarded part of your former spouse’s retirement account or 401(k) it’s a good idea to roll over that money into a retirement account of your own so you do not have to pay penalties or fees on that money.

To avoid paying capital gains or losses on a property transfer you must complete the deal within a year of the divorce date unless the event is specifically detailed in the divorce agreement. In that which case you have up to six years for any property transfers.

Source: dailyfinance.com, “Don’t Let Divorce Destroy You at Tax Time,” Dan Caplinger, July 23, 2012

Parents sometimes use children as pawns in disagreements

Many of the decisions and protocol parents need to follow regarding their children are addressed in the divorce decree and child custody/support orders. But there are certainly some events that no one can prepare for. Anger, bitterness, pride and different belief systems often get in the way of sound decisions when divorced parents have arguments about what is best for their children.

Such is the case of a 4-year-old girl that made national news recently when her father did not allow her to accept a trip to Disney World from the Make-A-Wish Foundation. She recently completed her chemotherapy treatments for leukemia that she’s been fighting for the last two years. The Foundation granted her wish to take her Mom, sister and grandparents with her to the Magic Kingdom. But, she needed signed permission from both her parents, and her father refused.

The girl’s mother feels that her father was retaliating because he was only recently granted visitation rights to see his daughter earlier this year. She felt he was using this occurrence as a way to get back at the mother.

He argued that only children who were terminally ill and only had six months left to live should be awarded grants for the foundation. His daughter was declared cancer free. He was also embittered because neither he nor the girl’s other siblings were invited to participate in the trip.

The Foundation argued that it does not focus on terminally-ill children, but provides hope and strength to youngsters undergoing difficult medical procedures.

In the end, the little girl’s maternal family raised enough money for the trip by placing jars at local Haskins businesses and with donations that poured in from around the country through an online account.

Our firm can help you resolved conflicts like the one discussed in this article. Learn more by visiting our Milwaukee, Wisconsin, Family Law web page.

Source: Toledoblade.com, “Help goes national as cancer survivor, 4, will get her wish,” Mel Flanagan, July 20, 2012

Milwaukee woman entitled to interest from ex-husband’s benefits

A Wisconsin court recently decided that the ex-wife of a former Milwaukee fireman is entitled to 40 percent of his retirement pension beginning in 2001. The couple divorced after 24 years of marriage back in 1993. During that time, they worked with family law attorneys to draft a marriage settlement agreement. The agreement determined that the ex-wife would receive 40 percent of her former husband’s pension that he would begin to receive in 2001 when he turned 57.

Instead of receiving his pension in 2001 as planned, the fireman decided to join litigation concerning the duty disability benefits he had been receiving since 1985. The results of the litigation determined that the fireman would receive nontaxable disability benefits for life instead of the pension. He did not inform his ex-wife that he decided to take the disability option instead of the pension. When his wife learned through a family friend of this decision in 2009, she assumed that he had done this hoping that she would receive not receive any spousal support because of his decision.

The ex-wife decided to dispute her ex-husband’s decision, and a circuit court ruled in her favor. The former firefighter was ordered to pay his ex-wife the past-due payments that she should have received back in 2001 plus 3 percent interest. Her ex-husband was ordered to pay more than $160,000. The court also ruled that if he did not pay the past-due amount within one month and two weeks from the judgement, he would have to pay 12 percent interest on the amount owed. The ex-husband tried to appeal the decision, but the appeals court upheld the circuit court’s decision. Family law attorneys can be valuable advocates for people struggling with family law issues.

Source: State Bar of Wisconsin, “Court Sides With Ex-Wife in Pension Fight, Applies New Judgment Interest Rule,” Joe Forward, Sept. 13, 2012

‘Grand families’ face unique legal issues

Society’s view of the “traditional” family — that is, father, mother, children — is of course a hot topic these days in family law, especially in wake of more and more states legalizing same-sex marriages. But another type of nontraditional family is often overlooked: the so-called grand family.

More and more children these days are being raised by their grandparents; in fact, this is the fastest-growing type of family in the United States. In Wisconsin, more than 70,000 children live in homes where the primary person in charge of the child’s well-being is one or both of the grandparents.

The reasons behind the increase of grand families are many and include everything from parental incarceration, drug abuse and divorce. Often, an endangered child’s biological grandparents will step in and adopt the child in lieu of getting protective services involved or dealing with a foster family. Besides the usual day-to-day challenges of parenting, grandparents may also face unexpected legal issues when it comes to their status as caregivers, which can also affect their grandchildren.

The law depends on family classification more than most people would assume. Grandparents who find themselves raising their grandchildren face a potential storm of legal issues. Family attorneys can work to prevent these legal problems from happening in the first place. For families, planning is one of the best ways to protect against future unforeseen circumstances.

For example, grandparents can use family attorneys to ensure that their grandchildren are legally tied to them and that this has occurred through the correct legal channels. Dealing with the challenges of parenthood is stressful enough, but having to worry about what might happen to your child just because the law doesn’t technically recognize your unique family can be staggering. A simple consultation with a family attorney could save hours and hours of emotional and financial headaches later on.

Source: Green Bay Press Gazette, “‘Grand families’ support group starting,” Sept. 27, 2012

Wisconsin domestic partnership law upheld

The Wisconsin domestic partnership law has survived a constitutional challenge, at least for now. The law, passed in 2009, allows same-sex couples who share the same residence to register as domestic partners. Shortly after the law took effect, Family Action Wisconsin filed a lawsuit seeking to have domestic partnerships declared unconstitutional. The group argued the law violated a 2006 Wisconsin constitutional amendment that declares marriage in the state to be between one man and one woman. The amendment denies state recognition of any legal status that purports to confer rights and benefits substantially similar to marriage.

Defendants in the lawsuit, who include a former Wisconsin governor, argued the domestic partnership law did not grant substantially similar rights. They pointed to 33 specific differences between domestic partnerships and marriage, including differences in how domestic partnerships are treated under existing family law. For example, the law makes no provision for property division when a same-sex partnership ends. The Wisconsin Court of Appeals agreed with the defendants. The plaintiffs have vowed to appeal to the state’s Supreme Court.

While registered domestic partners in Wisconsin do not have all the rights of married couples, there are some benefits. Registering as a domestic partnership allows a couple to own property as joint tenants, inherit property through the laws of intestacy, and take leave under the state’s Family and Medical Leave Act when one partner is ill.

Because domestic partners are not treated the same as married couples, individuals wishing to register a domestic partnership are advised to consult with a knowledgeable family law attorney first. The attorney can help by drafting a domestic partnership agreement to address issues not covered by the law, like how property division will be handled if the relationship ends.

Source: State Bar of Wisconsin, “Wisconsin’s Domestic Partnership Law Survives Constitutional Challenge,” Joe Forward, Jan. 2, 2013

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