A current example is the upcoming divorce of the Princess Royal's former husband and current chef d'equipe of the U.S. Olympic equestrian eventing team, Captain Mark Phillips. Phillips is set to divorce his second wife after nearly 15 years of marriage to pursue a relationship with Lauren Hough, a 35-year-old Olympic bronze medalist and current Florida resident.
]]> Phillips's assets include a 1000-acre farm and proceeds from his books, columns and global equestrian consultations. Due to the size of the Phillips estate it should be expected that dividing the ex-couple's complex assets will be a significant part of the divorce.Property division can be a major source of controversy during a divorce. Florida law requires the courts to try and make an equitable distribution of marital assets, which involves four steps. The first step is to identify all the assets and liabilities. The second step is to classify those assets as either marital or non-marital assets. This step may require skilled legal acumen as there are many gray areas of the law.
Once the assets have been classified, the third step is to have those assets valued. This may be a very involved step of the process, depending on the type and complexity of the asset. The fourth and final step is the distribution of the assets. Because not every asset divides neatly, the distribution process can be a place for creative solutions between couples.
Source: Horsetalk.co.nz, "Mark Phillips finds new love, plans to divorce," May 9, 2012.
]]>A recently published study has found that men in the military are actually more likely to be married than similarly situated civilians. While this news is positive, the fact remains that many service members--just like civilians--will face a divorce at some point in their marriages. This is especially true for servicewomen, as they tend to divorce at double the rate of servicemen. Military divorce has gradually been on the rise since 2005. In fiscal year 2011, almost 30,000 service members got divorced--a slight increase from 2010 levels.
]]> Service members have some special considerations when it comes to divorce. A military divorce involves both state and federal laws, which affords it a special position in divorce law. Active duty service members, for example, cannot initiate a divorce while serving on active duty or for 60 days after returning from active duty.Service members also face unique issues in regards to what courts have legal authority to grant their divorce. The military has its own set of rules regarding spousal and child support which may differ from state laws. Federal laws such as the Uniformed Services Former Spouses' Protection Act give state courts the authority to determine if the service member's military pension is sole or community property.
Due to the complexity of a military divorce, any service member or spouse who is considering ending a marriage should consult an attorney who is experienced with this special area of divorce.
Source: Deseret News, "Military marriages are outlasting separation and war," Lois M. Collins, April 25, 2012.
Source: FindLaw.com, "Military Divorce."
]]>For couples who cannot come to an agreement on their own, a divorce mediator experienced in pet disputes may offer a lasting solution. A mediator works by listening to spouses express their thoughts, feelings and emotions, which can run high during a divorce. Working collaboratively, the mediator helps the spouses translate those emotions into a productive, rational dialogue that empowers them to make a mutual decision.
]]> In one mediated pet dispute, each spouse wanted an equal share of their terrier. The custody issue threatened to unravel the couple's divorce settlement. With the help of a mediator, however, they were able to reach a compromise. The husband realized that he would often be away from home, making it hard for him to have custody of the animal. The couple agreed that the wife should have the dog, with the husband taking care of it during the times when the wife was away from her home.Mediation can be a way to avoid litigation, and pet mediation can be especially valuable because courts usually do not entertain arguments over the custody of a divorcing couple's pets. Depending on how willing a couple is to compromise, pet custody disputes can be resolved in only a couple of hours.
Source: The Wall Street Journal, "A Dog's Bark Is Better Than Litigation's Bite," Veronica Dagher, April 30, 2012.
]]>The couple seemed destined for financial success when they earned degrees in business administration from Harvard University. The husband became an investment banker while the wife rose to president of Yahoo. Over the course of their relationship, they grew a portfolio of assets that totaled $71 million.
]]> When the couple filed for divorce in 2007, that portfolio included stock investments and an array of multi-million dollar real estate properties, all of which were free of any mortgage debt. The pair also had memberships at a variety of clubs and owned boats, motorcycles and other vehicles. According to court filings, the husband and wife had previously reached an agreement on the division of approximately $46 million of their property. The trial--now obviated by the settlement--was meant to determine the distribution of the rest.But the length of the divorce indicates that reaching a settlement was not always easy. During the divorce proceedings, each spouse accused the other of various acts of wrongdoing, which they have since declared "reckless and inaccurate" in a recently released combined statement. The couple also has three children, but has come to a child custody agreement.
Source: San Jose Mercury News, "Ex-Yahoo president, husband settle bitter divorce case," Gary Klien, April 22, 2012.
]]>So, does a cohabitation "trial period" have the desired effect? Although approximately 7.5 million unmarried couples currently live together, and about 66 percent of people in their 20s believed that cohabitation can stave off divorce, the answer is a decided no. In fact, people who live together before marriage are more likely to get a divorce.
]]> Why does a plan with such well-meaning goals end up backfiring? Researchers attribute it in part to the dynamics of cohabitation itself. Many couples enter into cohabitation without creating a long-term plan, and once they share a living space and other resources, they find it harder to break up. And since most people say that they expect less out of a live-in boyfriend or girlfriend than they would out of a husband or wife, the implication is that cohabitation traps some people with spouses they would not marry otherwise.In addition, women typically see cohabitation as a prelude to marriage, whereas men often have no such expectation. This divergence of perspective can contribute to later relationship difficulties and divorce.
Cohabiting couples who marry and later divorce will have to face a number of legal issues, including division of marital property, spousal support and, if they are parents, child custody.
Source: The New York Times, "The Downside of Cohabiting Before Marriage," Meg Jay, April 14, 2012.
]]>The agreement provided that in the event of a divorce, Studdard would have no obligations to pay spousal support to his ex-wife. In terms of property division, Studdard received the overwhelming majority of the couple's possessions, including their house. In addition, he will not have to divide any song royalties with his former wife. By contrast, Studdard's ex-wife will receive $10,000, a car and a small number of personal possessions.
]]> The final terms of the divorce probably would have been vastly different if there had been no prenuptial agreement. Studdard likely came to the marriage with significant wealth accumulated through his recording career. From a practical perspective, he may have wanted to protect those assets in case the marriage did not last.Reports indicate that his ex-wife at first initiated a legal challenge against the prenuptial agreement's validity. She alleged that Studdard had asked her to sign it in the days prior to the wedding ceremony. But that fact alone did not persuade the judge in the case to invalidate the agreement. The court enforced the document and upheld the initial understanding reached between the parties.
A well-drafted prenuptial agreement can withstand potential challenges from unhappy spouses as long as it meets all the legal requirements.
Source: TMZ.com, "Ruben Studdard Divorces Like a CHAMP With Ironclad Prenup," April 8, 2012.
]]>It seems that we now have an initial glimpse into who will keep what piece of property. Like many powerful celebrities, Perry and Brand were a high net worth couple, therefore their divorce stood to involve complex property division. In addition, the pair declined to create a prenuptial agreement, which could have increased the difficulty of later parceling out their marital property.
]]> But according to reports, it appears that Perry and Brand have divided their significant assets amicably. The couple agreed to a property division settlement just over a month ago. Under the terms of that settlement, Brand has ceded his interest in the couple's $6.5 million mansion to Perry. In addition, he has declined to take his marital share of Perry's earnings, which was worth $20 million.The couple also had other assets and properties, including a multi-million dollar apartment, but details about their ownership are not forthcoming. High asset divorces can be complicated, but Perry and Brand demonstrate that they can also be relatively fast and without a lot of prolonged argument. The couple divorced after 14 months of marriage in December 2011.
Source: Us Weekly, "Russell Brand Gives Katy Perry Ownership of $6.5 Million Marital Home," Zach Johnson, April 3, 2012.
]]>Under current law, military personnel's deployment status can have a significant effect on how child custody is set up. If a service member is away from home on deployment, judges can use that person's absence to decide what custody arrangement would be in the best interests of the child.
]]> Federal legislation has attempted to change this during the past four years, but successive bills have been unable to receive the approval of both houses of Congress. One representative has submitted a new bill in the hopes that this time it will reach the President's desk.Under the proposed legislation, service members who are deployed away from their families for at least two months and up to a year and a half would no longer have to worry about judges taking their deployment into account when deciding child custody. Courts would be prohibited from considering it as a factor in the custody analysis. In addition, if a service member briefly gave up custody while deployed, the original custody arrangement would be reinstated when the person came home.
Divorce can be a trying time for couples, and emotions can run high when it comes to deciding how children should divide their time between parents. The new legislation, if it becomes law, would provide some stability to what can be a destabilizing time.
Source: The Washington Post, "Proposal would protect custody rights during deployments," Timothy R. Smith, Mar. 19, 2012.
]]>This does not mean that people are not forming relationships, however. More people are simply deciding to live together, to have children together and to share finances together without walking down the aisle. But just because such couples are not bound together by a band of gold does not mean that they are immune from some of the troubles that can befall married couples. Some married couples enter into prenuptial agreements to decide how debts, assets and other aspects of their lives will be divided in the event of a divorce. And there is an equivalent for non-married couples as well.
]]> They are called "cohabitation agreements," and they perform many of the functions of a prenuptial agreement. According to a survey conducted by the American Academy of Matrimonial Lawyers, a number of attorneys reported that cohabitation agreements were increasing in frequency.This may be the result of rising tension between unmarried couples who are living together. Unmarried couples may bring certain debts and liabilities to a relationship, just as married couples do. Matters can become more complex if they decide to purchase a home or have children. But if they later decide to separate, a legal contract embodied in a cohabitation agreement can provide a clear resolution to any issues that might arise in the separation.
Source: CNN.com, "Prenups aren't just for married couples anymore," Jessica Dickler, Mar. 20, 2012.
]]>Couples with at least one spouse in the military are more likely to file for divorce than civilian couples. This makes the issue of dividing a pension all the more important. In general, a military pension will be divided equally between divorcing spouses, as long as they were married during the entire time of its accrual. If a service member's pension began before marriage, only the pension funds that accumulated while the couple was married will be divided.
]]> But getting the funds disbursed can be another matter. The government sends pension checks to military members, but will not send them to a service member's former spouse if the couple's marriage did not coincide with the member's military service time for at least 10 years. The former spouse may have to resort to legal action if the military spouse does not abide by the divorce order to divide pension payments.In addition, a military member's death can signal the end of pension payments to a former spouse unless the former spouse applied for a "survivor benefit." Failing to apply for the benefit is not unusual, but can be avoided with proper prior planning.
Dividing a military pension in a divorce presents challenges and involves rules not present in other divorces. Couples going through a divorce may benefit from the services of an experienced family law attorney.
Source: The Wall Street Journal, "Divorce: Splitting Up a Rich Military Pension," Ellen E. Schultz, Mar. 9, 2012.
]]>Federal tax regulations regarding alimony payments have been relatively consistent over the last several decades. In general, those individuals making alimony payments can list them as a deduction and those receiving payments claim alimony as income. This is a federal deduction for anyone who pays alimony, even if you do not itemize your deductions.
]]> There are, however, some basic guidelines to follow when including alimony payments in your federal tax filing. Though it may be obvious, couples must first be divorced or legally separated and have a formal alimony agreement in order to include alimony as a deduction. In addition, you can only include alimony payments if you file separately and are not living in the same home as your ex-spouse. This is why these tax regulations are of concern not only to people who have been divorced for a number of years, but they are also important for those in the middle of a divorce.Of course, every divorce case is unique and divorce laws can vary from region to region, so it may be useful to contact a knowledgeable family law professional to get the exact details as to how your divorce settlement will affect your income tax filings. This may particularly relevant if Florida's alimony laws are reformed, as current legislative proposals suggest. The most important thing to remember is that divorce and spousal support payments can affect your federal income tax return, regardless of whether you are disbursing or receiving payments.
Source: Forbes, "Taxes From A to Z: A Is For Alimony," Kelly Phillips Erb, Mar. 3, 2012
]]>Couples going through a divorce should be aware of what Internet communications can be considered private and which cannot. There can be a distinction between social media sites and emails. In the former, a person's communication may be made for many people to see. For example, a person may tweet a message or update a Facebook status. Some courts are allowing information relevant to the couple's relationship posted on such sites to be used as evidence in certain circumstances.
]]> By contrast, email communications are generally regarded as private. But there are exceptions. If one spouse knows the other's password, logging into the other's account and reading emails may not be illegal. One attorney compared giving a spouse your email password equivalent to sharing the keys to a house.Other couples' conduct goes even further. One man discovered that his ex-wife had gained access to his email account through the use of monitoring software. Such conduct is generally illegal under wiretapping laws.
Courts are still sorting out how to deal with potentially relevant evidence obtained through social media sites and emails. Some courts, uncomfortable with certain methods used to obtain evidence, have ruled that it is not admissible in divorce proceedings. The Internet's ability to reveal once hidden aspects of our lives is powerful, but in the coming years, courts will have to define what evidence should see the light of the courtroom in divorce cases.
Source: USA Today, "Cyber-snoops often cross legal line in divorce wars," Brian Haas, Feb. 23, 2012.
]]>Hollywood celebrity Kim Kardashian has reportedly requested mediation in her divorce from her husband, basketball player Kris Humphries. Kardashian's aim is to keep the divorce as far from the public eye as possible. She does not want the proceeding to occur in court, where the press would be able to record every detail.
]]> Humphries, however, does not appear to want to pursue mediation. Sources suggest that he instead wants to televise the divorce trial so that the public can understand the details of his marriage to Kardashian. Humphries appears to believe that Kardashian's marriage to him was a pretext to boost her show's television ratings. The couple married last fall, and Kardashian filed for divorce only 72 days later.Mediation can provide privacy if couples desire that. It also has a number of other benefits, including avoiding the expense of divorce litigation. In addition, the compromise that comes from a mediated agreement can reduce a couple's animosity. But for mediation to work effectively, the spouses must be willing to work together. Since the mediator is impartial, the decisions about child custody, support and division of property are ultimately in the hands of the divorcing partners.
Source: CBSNews.com, "Kris Humphries wants to televise divorce: Report," Lauren Moraski, Feb. 8, 2012.
]]>Both chambers of the Legislature have taken up the issue and have drafted bills that would reshape our state's divorce laws. The initial drafts of the bills in the House and Senate created hard-and-fast rules that would have decreased how long an ex-spouse would have to pay alimony as well as diminished the total amount of alimony paid. The bills would also have facilitated the termination of alimony when the paying ex-spouse retired or when the receiving ex-spouse began a new relationship.
]]> Last week, however, the Senate Judiciary Committee tempered the original version of its chamber's bill. The revised bill that came through the committee removed the strict rules and replaced them with flexible guidelines that would give judges discretion to create alimony according to the facts of each case. For example, according to the rewritten bill, judges will consider an ex-spouse's retirement as a factor in their decision to award, alter or eliminate alimony payments, but they will not be bound by that fact.Some couples are waiting to see what the final version of the law will be before getting married. One man, who currently pays alimony to his ex-wife, is concerned that if he gets married to his fiancée, current law might take his new wife's income into account if his ex-wife requests an increase in alimony payments.
The House bill remains unchanged and would bar a court from considering the new wife's income in the husband's alimony payments to his ex-wife. The new Senate bill has no such provision.
A change to alimony laws could have far-reaching consequences, so we will monitor the progress of the bills through the Florida Legislature.
Source: Orlando Sentinel, "Senate committee waters down divorce-law rewrite," Kathleen Haughney, Feb. 9, 2012.
]]>You do not have to be in the media spotlight or walk the red carpet, however, to have your divorce involve complex property division. Divorcing couples with significant assets will have to have their property examined to determine a host of issues, including its value, whether it is part of the marital estate, and how it will be divided.
]]> Kobe Bryant's divorce from his wife of 10 years highlights the potential difficulties that high-asset divorces can present. Bryant is worth an estimated $150 million, which includes trusts and ownership of multiple pieces of real property. Recently, Bryant has transferred ownership of 3 properties to his wife. The combined value of the properties is estimated at $18.8 million. But the houses are only one part of a larger divorce settlement.Reports indicate that the couple did not have a prenuptial agreement, which means that Bryant's wife stands to get $75 million in the divorce, plus support payments for herself and the couple's children. Bryant and his wife appear to be settling their divorce out of court, avoiding the expense of taking the divorce to trial. But even in such cases, the assistance of experienced divorce counsel is essential to ensure an orderly and equitable division of the couple's many assets.
Source: Los Angeles Times, "Kobe Bryant divorce: Three homes to Vanessa probably just a start," Michael Reicher, Jan. 23, 2012.
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