Tag Archive for: marital property

Wisconsin man Suspected of Killing pet Cats During Divorce

Divorce is a very stressful experience and people going through a divorce can often do things that come back to haunt them. A Wisconsin man is now facing charges of felony mistreatment of animals after allegedly shooting the pet cats he shared with his ex-wife while their divorce was pending.

His ex-wife had filed for divorce in January 2009, but the couple continued to live together for about five more months. In June 2009 she moved away from the family residence when the home environment became hostile. According to the criminal complaint, when she returned to the marital home and asked about the pet cats, her ex-husband told her he shot the cats and buried them in a compost pile.

The couple’s divorce became final in December 2009. The ex-wife did not report the killings until March 2010. Even thought over a year has elapsed since the alleged cat shootings; the ex-husband is now facing charges that carry a maximum of three years, six months in prison and a $10,000 fine.

Divorce is a very trying time for all parties involved and emotions can get the best of any of us. In this case, the ex-husband had expressed doubt about paying the bills, and did not think he had money to pay for feeding the cats. He also stated he had problems sleeping because of the noise the cats were making. He was experiencing true problems in this divorce, but he reacted to the problems in a way that has caused serious legal consequences.

When a divorce is pending, everything that the couple does is eventually going to be viewed under the magnifying glass of the law. Couples should avoid impulsive and hasty actions like destroying something the other spouse wants in the divorce. When the parties have legitimate concerns while a divorce is pending, they are usually better served by bringing the issues to the attention of their attorneys and the family law court, not by taking matters into their own hands.

Source: The Janesville Gazette: Janesville man suspected of killing pet cats; Ted Sullivan, 10/26/2010

Real Estate Slump Presents Divorce Complications

When a married couple divorces, the property they own must be divided between the two spouses. Who gets the marital home has traditionally been one of the most contested property division issues in a divorce. Traditionally, the value of a home increases over time and therefore the home would have a large amount of equity that had been built up over the course of the marriage.

However, the economic downturn has had a profound impact on family law. Once robust retirement accounts are worth a fraction of their past value and many spouses have been laid off. Each change in the economy changes how couples need to structure divorce settlements, but the collapse of the real estate market has been an especially difficult issue.

The real-estate bubble has burst and this has changed the way many divorcing couples view their marital homes. With real estate inventory piling up on the market, there is no guarantee that a home would sell in a timely fashion or at a profit. Many homes are worth less than the amount owed on the mortgage and there is no guarantee that a short sale will be successful.

With many homes now seen as a liability instead of an asset, property division is becoming a more complex issue. Divorces that would have been uncontested divorces in the past are now turning into contested divorces. If you are considering or going through a divorce in these difficult economic times, it is important to consult with experienced family law attorney who takes a detailed approach regarding marital property division.

Source: The Star-Ledger, “Today’s real estate market calls for dire divorce decisions,” Sarah Portlock, 12/5/2010

Tiger Woods to pay $110 Million in Divorce Settlement

The Tiger Woods divorce is in the headlines again. CBS 4 in Miami is reporting that he has agreed to pay Elin Nordegren $110 million as part of a divorce settlement. It is estimated that Tiger Woods is worth close to $500 million in total, and many commentators believe Elin could have demanded even more than what she is reportedly receiving.

Generally when married couples divorce, the property they have must be divided between them. This process is called property division. It can often be very complex even when neither spouse is a millionaire. It works differently from state to state, but we’ll go into some detail on how it works in Wisconsin.

In Wisconsin, the law is presumes that all property of the spouses is marital property and is subject to division during a divorce. Each spouse is considered to have half interest in all marital property. However, not all property will end up being in the marital property category. Some property held by the spouses will be considered to be separate or individual property such as gifts and inherited assets. This separate property is generally not subject to division.

Family law judges do have some discretion in dividing marital property and the factors they may consider are misconduct; the property an individual spouse brought to the marriage; the contributions the spouse made to the marriage; how much separate property the spouses have; and many other factors.

Because property division is so complex, it is sometimes difficult to predict what a judge will decide. When possible, the parties will agree to a marital property settlement which allows them to agree on the division of the marital assets. Given the news reports, it appears Tiger Woods and Elin Nordegren chose this option.

Source: CBS4.com: Tiger Woods Divorce A Multi-Million Dollar Affair; 10/19/10

Jamie McCourt wins Ruling in Dodgers Divorce

Previously, we posted about the divorce between Frank and Jamie McCourt that will determine who owns the Los Angeles Dodgers. Frank and Jamie participated in mediation in an attempt to reach a property division settlement, however their mediation failed. Without a settlement in place, it was up to Judge Scott Gordon to rule on the issue of who owns the Dodgers and whether a post-nuptial agreement between the McCourts was binding.

If valid, the agreement would give Frank McCourt sole ownership of the Dodgers. Tuesday, Judge Gordon threw out the post-nuptial property division agreement, a decision that could make Jamie McCourt part owner of the team and could result in protracted property division litigation.

Judge Gordon found the post-nuptial agreement invalid based on errors occurring when the McCourts signed the agreement. During the trial, the attorneys for both sides reviewed the documents and found that the McCourts signed six copies of the agreement. Three of the copies listed the Dodgers as Frank’s sole property, but three copies did not.

Frank McCourt could decide to appeal Judge Gordon’s ruling, but he is already employing another legal strategy. Frank has informed the court that he is claiming sole ownership of the Dodgers on the theory he bought the franchise using the assets of a company he established before he married Jamie.

The parties disagree on how long it would take to resolve this new claim. Frank’s attorneys believe this new property division claim could be resolved in a one-day trial based upon evidence that has already been introduced into the record. Jamie’s attorneys believe the trial could require up to 60 days and months to collect new evidence.

As an alternative to further court proceedings, this ruling may bring the McCourts back to the negotiation table to settle their property division contest. Past negotiations focused on Jamie giving up her interest in the Dodgers and Frank compensating her, but they could never come to terms on a deal. During the past negotiations, the post-nuptial agreement was an unknown variable. Now that there has been a ruling on the issue, the McCourts may now feel they have a better understanding of their rights and be able to reach a compromise.

Source: Los Angeles Times, “Dodgers’ ownership in limbo after judge throws out McCourt property agreement,” Bill Shaikin and Carla Hall, 12/7/2010

Survey Indicates Financial Dishonesty Common Among Married People

There are many reasons why a marriage might fall apart, but many causes of divorce share the common theme of dishonesty. Trust in a marriage is important, and dishonesty can deeply damage the trust shared between spouses. A new survey by Forbes.com and the National Endowment for Financial Education has found that dishonesty about finances is becoming increasingly common among married people, with more than 30 percent of respondents indicating some form of “financial infidelity.”

The survey question 2,019 adult respondents and found that 31 percent of American couples who have combined finances were not always truthful about financial issues. The most common financial lie involved hiding cash or assets, followed by hiding a minor purchase, hiding a bill, hiding a major purchase, hiding a bank account and distorting debt or earnings.

When it occurred, the effects of financial dishonesty were very pronounced. Of those respondents who indicated they had experienced financial dishonesty in their marriage, 16 percent said the dishonesty led to a divorce, 11 percent said it caused a separation, 67 percent said it led to an argument and 42 percent believed it lead to a loss of trust in a relationship.

When divorce does result from financial dishonesty, marital property division will often be an important contested aspect of the divorce. In order to have a fair division of marital assets, it is important to have a clear picture of a family’s financial situation. Having a clear understanding of the marital debts and assets can be complicated when a spouse is hiding assets. Experienced divorce attorneys understand the importance of a thorough investigation into marital assets and will often collaborate with financial professionals, including forensic accountants, when it appears one spouse may be concealing marital property.

Source: Reuters, “Three in 10 Americans commit financial infidelity?,” Daniel Trotta, 1/13/2011

Understanding debt and divorce in Wisconsin

Most people understand that marital property is divided in a Wisconsin divorce. However, the other side of that coin includes the division of marital debt. The division of debt can be as important, and in some cases more important, than dividing marital property.

All debt that is accumulated over the course of a marriage, for homes and cars, is categorized as community debt. After divorce, both parties are equally responsible to pay back this debt. For example, if you and your former spouse purchased a car for $30,000 and paid off half of it, you will both share equal responsibility in paying back the remaining $15,000.

The situation can be more complicated, however. If your spouse purchased that vehicle without your knowledge, even when using a credit card that was in his or her name only, you will still owe the same share of the money if you live in Wisconsin or other community property states.

Other forms of debt include living expenses. Living expenses typically include the money you pay for utility bills, groceries, gasoline, cell phone and cable bills, and rent or mortgage payments. Items like appliances, including refrigerators, TVs and gym equipment, are considered to be community property.

However, it becomes very difficult to properly assign debt when one spouse had existing debt before the marriage and both parties add to that debt during the marriage. This type of situation often requires a detailed accounting and investigation of expenses.

If you have questions about marital debt or property division in Wisconsin, an experienced family law attorney can help you understand your rights and obligations under the law.

Source: Wallet Pop, “Divorce and Debt: What You Owe and What You Don’t,” Geoff Williams, 2/25/2011

Considerations for divorce over the age of 50

Divorce is never an easy thing. There are many issues that must be sorted out, both emotional and financial. Those issues are compounded even further if the parties are divorcing later on in life. Individuals who divorce over the age of 50 can face very complicated issues in their divorces, especially when it comes to the division of marital property in Wisconsin.

A couple divorcing after 50, in all likelihood, has had a long history together and sorting through decades’ worth of mutually owned property can be a daunting task. However, considering some issues common to divorce later in life can help make the process simpler.

The value of retirement funds can be deceptive. Many people might assume that $250,000 in a 401(k) is roughly equivalent to a marital home worth $250,000. That assumption is wrong because the money in the 401(k) is going to be reduced by income taxes when it is withdrawn. It is imperative that both parties fully understand the true value of those retirement funds in order to have an equitable division of assets. If that’s not the case, then there is a chance that one of the parties may get short-changed.

The next mistake that people make during a divorce is putting too much stock in alimony payments and not enough stock in Social Security. Alimony is great while the former spouse is alive and working, however individuals who divorce later on in life are at greater risk of passing away shortly after a divorce, thus depriving the other party of alimony. Some divorcing spouses focus on establishing a life insurance policy with a former spouse and negotiating for their Social Security benefits. That way, when they leave workforce or pass away, they will still have assets that can be assigned.

Finally, many people do not consider their adult children when they divorce. Parties should consider how their divided assets pass down to their adult children. There have been instances of children being accidentally disinherited because divorcing parents did not consider their adult children in the divorce settlement. A solid divorce agreement can ensure that not only mutually owned property will be properly divided, but also that it will be properly inherited.

Divorce and marital property division can be complex issues and the way to best structure a divorce varies on an individual’s circumstances. If you have questions about divorce, an experienced family law attorney can help.

Source: SmartMoney.com, “Divorce Over 50: 3 Mistakes to Avoid,” Catey Hill, 3/23/2011

Husband solves a community property puzzle

The Wheel of Fortune spun and a divorced husband and wife are going to share the prize. Scott Dole will need to share the $51,600 jackpot he won on the popular game show with his ex-wife Carrie Dole.

The question before family court Judge James Rulli involved whether or not Scott’s Wheel of Fortune winnings constituted community property that needed to be shared equally between husband and wife or if the money belonged solely to Scott. Like Wisconsin, the law of the Doles’ home state provides for an equal distribution of assets in a divorce.

Carrie Dole had filed for divorce long before the game show appearance by her husband, but the couple had reconciled their differences at the time the show was filmed. Carrie Dole was living with her husband as a married couple and even traveled with him, staying in the same hotel room during the Wheel of Fortune taping.

Judge Rulli found that the prize money was community property subject to the 50-50 community property law and ordered the winnings to be split equally between the two, saying that it appeared the couple really wanted to be together before and after the prize was won.

At the trial, Scott Dole insisted that he should be allowed to keep the entire jackpot because his wife owed him for her share of an inheritance left to Scott by his late father. The money eventually went toward the purchase of a home.

A film segment showed the couple hugging enthusiastically on camera after the winning appearance. At the time, Carrie Dole testified that she had requested her attorney withdraw the divorce petition.

The $46,988 after-tax final amount was placed in an escrow account pending the outcome of the judge’s decision.

Source: The Seattle Times, “‘Wheel of Fortune’ jackpot split 50-50 in divorce,” Laura McVicker, 5/26/2011

Baby boomer divorce rates are climbing

A recent study completed by the National Center for Family and Marriage Research shows that divorce rates are climbing up among the baby boom generation in Wisconsin and across the nation.

While most divorce numbers have declined over the past 20 years, the study shows that the divorce rate among people aged 50 and over has doubled.

Some experts suggest that the causes for the increase can be found within the attitudes and abilities of the generation itself. Baby boomers are more likely to have enough money to manage after a divorce. There tends to be less squabbling over dividing the assets because there is usually more than enough to go around. On the other side of the coin, financially strapped marriages can bring about tension that can lead to a divorce.

Infidelity has been identified as a reason that pushes couples apart. Some research suggests that infidelity is the catalyst that pushes marriages to the end in nearly two-thirds of cases.

Children getting older and leaving home also tends to be a major driving factor behind older couples divorcing.

Some experts believe the trend will continue to rise among adults in the 40 to 65-year-old range. Rates, however, are expected to decline as boomers get older.

Baby boomers considering divorce need to evaluate what is going to happen with their assets. Once the assets have had a value placed on them, decisions on marital property division can take place. If you have questions about divorce or property division in Wisconsin, an experienced family law attorney can help.

Source: Fox Business, “Why So Many Baby Boomers are Getting Divorced,” Casey Dowd, 6/23/2011

Mel Gibson and wife reach deal to end two-year divorce case

Over the course of his 28-year marriage, Mel Gibson has accumulated a significant amount of assets. In addition to his wildly successful acting career, Gibson has also pioneered several successful projects as a director. He won a pair of Oscars for his famed 1995 film Braveheart, in which he both starred and directed.

Now, the two-year divorce case between actor Mel Gibson and his wife, Robyn, has finally ended. The former husband and wife reached a deal, which included a marital property settlement dividing the assets the couple shared together.

The divorce proceedings won’t be complete until a family court judge finalizes the agreement, which is expected to happen sometime in August. Details of the settlement between the 55-year-old Gibson, who is estimated to be worth somewhere around $900 million, were not released to the public.

The divorce was initially filed by Gibson’s wife and mother of seven kids back in 2009, following 28 years of marriage. Robyn’s divorce petition cited irreconcilable differences as the reason for the divorce. This all occurred after Gibson’s infamous drunken driving arrest in 2006 in which he exploded into a controversial rant in front of law enforcement.

Gibson continued to be a lightning rod for controversy and legal woes after a 2010 altercation with his then-girlfriend Oksana Grigorieva nearly landed him in hot water. Gibson pleaded no contest to battery charges, received three years on probation and was ordered to receive domestic violence and mental health counseling.

Along with the couples’ seven children, Gibson also has a 20-month-old daughter with Grigorieva who has been the subject of an ongoing child custody and child support dispute.

Source: Australian Broadcasting Corporation News, “Mel Gibson reaches divorce deal,” 6/29/2011