Monday, January 7, 2013

Yours, Mine and Ours

One of the most popular misconceptions I hear is about separate accounts. Many people seem to believe that by simply placing an account in their own name, it is non-marital property. I also hear the same rationale for debts, especially credit card debts. Many people seem to believe that, if a credit card is in the name of one spouse only, that debt belongs to that spouse. This is not always the case.

Under Florida law, a marital asset is anything acquired or enhanced during the marriage regardless of how it is titled. Basically, every dollar earned during a marriage belongs equally to both parties. If one spouse has a separate account and deposits his/her paycheck that was earned while the parties are married into that account, the account now has marital funds. Even if the account was opened prior to the marriage and was, at one time, a non marital asset, there is now an issue with commingling of the funds in that account. The same may be true for retirement accounts.

When it comes to credit card debt, just as money earned during the marriage belongs to both parties equally, debts that were acquired during the marriage are the equal burden of the parties. At least, this is the starting presumption. There are several factors that can affect whether the debt is marital and how it should be divided, and paid for, especially when it is in the name of one party and not both. And it is also important to keep in mind that, even if a Court Order or settlement agreement states that a party is responsible for a debt, this will not stop a creditor or collection agency from collecting from the party whose name is attached to the debt. If the debt cannot be transferred to the party who will be responsible for it, there must be some safeguard in place to protect the party holding the debt in case the other party does not pay.

Florida family law attorneys can help guide clients about how to divide assets and debts. Anyone facing a divorce should seek the consultation and advice of an attorney before signing any agreement or proceeding with divorce.

The above is intended for general information purposes only and should not be considered legal advice. It is highly recommended to consult with an attorney before making any decisions or signing any settlement regarding the division of assets or liabilities.

State Sues Sperm Donor For Child Support


A Kansas who man donated sperm to a lesbian couple is now faced with a child support action from the state. The man and the couple signed an agreement that the man would not be responsible for child support. The state, who has paid out benefits to the couple, is now seeking to be reimbursed and is seeking child support from the man.

      Generally, sperm donors have neither legal rights nor support obligations to a future child. In this case, the donor responded to a Craigslist ad and decided to make a voluntary donation to the couple. According to the article, the man and his wife have no biological children, but have a foster child. He is quoted as saying that he simply wanted to help a couple have a child. Had he donated sperm through a physician or agency, he would likely not have received child support and paternity papers from the state.

      This may seem to many to be a case of no good deed going unpunished. But we need to keep in mind that it is the rights of the child that the state seeks to protect. It would seem to me that, if the man is forced to pay child support, he would have cause to seek reimbursement from the couple to whom he donated. But, since they appear to be collecting state benefits, it is likely that they do not have the resources to reimburse the donor.

      One thing is clear: anyone seeking to participate in the fertility process through donation or surrogacy should consult with a family law attorney. A Florida family law attorney can guide you to the appropriate agency and help you take the proper steps to make sure that the selfless act of helping a couple conceive a child does not result in an unexpected burden.

http://news.msn.com/us/child-support-claim-rankles-sperm-donor-to-lesbian-couple-1

Thursday, January 3, 2013

Florida Alimony Reform: The End of Permanent Alimony in Florida


Last year, a bill was introduced to make sweeping changes to Florida’s alimony laws. The proposed new law would have done away with permanent alimony, and substituted it with “long term alimony”. The original form of the proposed law changed the definition of long term marriage to 20 years, as opposed to the current definition, which is 17 years. The original form of the bill provided that an award of long term alimony could not exceed 60% of the length of the marriage.  In other words, if the marriage lasted 20 years, the long term alimony could last no longer than 12, unless there were special circumstances. This bill did not become law.  A subsequent bill was introduced which was far less restrictive, but did provide that retirement was a change in circumstances which could justify modifying or terminating alimony.  This, too, did not become law.

      But the calls for reform continue, from groups who view the current alimony laws as unfair. The Florida Second Wives Club and the Florida Alimony Reform Movement, which are working hard to get their message across. According to the group’s website, Florida Representative Rich Workman and Florida Senator Kelli Stargel are sponsoring bills in the House and Senate, respectively. Senator Stargel’s bill is aimed at the concerns of the Second Wives Club- to prevent an alimony recipient from, in their words, “going after” the income of the new spouse. In less emotional language, this means that, if a alimony paying former spouse remarries, and the new spouse contributes to household expenses, a Judge can take into consideration the reduced expenses of the paying spouse when deciding whether alimony should be modified.

      It is difficult to predict whether 2013 will bring any attempts to change Florida’s alimony laws. But this is definitely an issue worth watching. Floridafamily law attorneys should be aware of these potential changes so they can help guide their divorce clients through the process.

Wednesday, January 2, 2013

Avoiding the fiscal cliff in divorce


There has been much talk about the fiscal cliff and how to resolve it. The basic formula seems pretty simple- spend less and earn more. Anyone following the news lately knows that this was anything but simple for Congress. When it comes to divorce, many people face a similar fiscal cliff issues- do I increase my “debt ceiling”? And, what do I do when there’s not enough money to go around? Unfortunately for divorcing couples, you can’t just raise more money in the form of taxes (and there is no government fund for alimony. Yes, I have been asked that question). So that brings us to the common dilemma of the recently separated and newly divorced: How do you avoid going over the fiscal cliff? Much like our government, the formula is often the same.

 

  1. Cutting spending: The unfortunate reality of divorce and separation is that each party has less money and more expenses. The family’s income now has to pay for two places to live and all the bills that come with two households. One person may be paying child support and/or spousal support to the other. Since each side has less money and more bills, the short term solution is either to raise the debt ceiling (take on more credit card debt of loans, which is not a good idea) or to cut expenses. Cutting down on spending is painful, especially when you are dealing with the loss and adjusting to the changes of divorce and separation. But it will be much easier to find things to go without in the short term that to pay off the excess spending in the long term.

 

  1. Increasing revenue: Yes, the economy is still tough, but finding an additional source of income will help pay those additional expenses both parties now have (let’s not forget the cost of moving, buying new furniture, setting up all of those utility accounts, etc. And, yes, there are probably those lawyer fees too). In many divorces, after the combined income has been split in whatever way was agreed upon or ordered by a Judge, both parties often feel the loss of the additional income. Even if there is enough money to pay the expenses, there is less to put into savings and less for life’s little or not so little luxuries. Since you can’t increase taxes like Congress did, finding a way to earn a little more will help ease the transition from married to separated or divorced.

 

As we learned this week, there is no perfect formula for avoiding a fiscal cliff. But there are steps you can take to prevent your own fiscal and emotional crisis down the road.