July 2012

Recipients of alimony should pay attention to term life insurance

In many divorce agreements, one spouse is ordered to pay alimony to the other. When this is the case, the divorce agreement usually includes a provision that requires the spouse who is responsible for making the alimony payments to obtain and maintain a predetermined amount of life insurance that will protect the financial structure of their former spouse in the event of death. However, as is the case with so many portions of the divorce agreement, fulfillment of this provision extends far beyond the finalization of the Massachusetts divorce. When the dust of the divorce settles, some individuals find that their former spouse is unable to obtain the required level of insurance. This can come about due to health issues, or if the former spouse allowed his or her policy to lapse and is now unable to renew as a result. In such cases, it becomes difficult or even impossible to resolve the issue, which could have a big financial impact of the spouse who is receiving alimony. Financial advisors note that the time to address insurance issues is before the divorce is final, during the negotiation stage. The first step is determining the correct level of insurance needed, and then checking that your spouse’s current policy is sufficient to cover all of the obligations that would exist if he or she were to die before those obligations were satisfied. You can also ask the insurance provider to notify you if the premiums are not paid. Perhaps the best insurance

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Divorce over 50 — Division of marital property more complex

Although statistics suggest that the rate of divorce may be stabilizing across the US, one demographic is experiencing growing divorce rates. It appears that Americans aged 50 and older in Massachusetts and elsewhere are turning to divorce more now than ever before. A professor at a leading university asserts that in 1990, less than one out of every ten people who filed for divorce were age 50 or older; today, that number has skyrocketed to one in four. Although the reasons for filing for divorce at a later age may differ for each individual, older adults who are ending their marriages share some commonalities. One is a more complex division of marital property, as each partner may have accumulated a diverse set of assets over the course of their lives. Sociologists believe that there are many factors that lead older Americans to seek divorce. Many have stayed in lackluster marriages as their children grew up, believing that prolonging the split would be easier on their children. Another factor could be a new approach on aging, suggesting that 50 may in fact be the new 30. One researcher at East Longmeadow points out that Americans aged 50 and older are much more active than in previous generations. Additionally, more women are now engaged within the workforce, and are no longer financially dependent upon their husbands for financial stability. The American Association of Retired Persons supports this theory, pointing out that women over the age 50 initiate divorce more often than men.

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New law could restructure families; aid non-traditional couples

West coast lawmakers are currently considering a bill that would radically change the way that the American family is structured, at least in that state. a State Senator has proposed legislation that would allow courts in his state to recognize more than two people as the legal parents of a given child or children. This change could be applied to both non-traditional couples as well as other family units. The law has not yet made it to a vote, but the concept of augmenting the American family may be welcome news to many same-sex couples in Massachusetts and elsewhere. The bill is a reaction to a case that has made its way to a state appellate court. The case involved two women who were raising a child together. When one woman was incarcerated and the other hospitalized, their child entered the foster care system. The child’s biological father attempted to gain custody of the child, and was granted custody in a family court proceeding. That decision was overruled, however, when the appellate court ruled that California courts can only recognize two people as parents. Parental status can be gained through biological ties, adoption, or recognized legal contracts, such as in gay partnerships. However, when more than two persons fit the legal description of ‘parent,’ the courts are placed in a difficult position. Those in support of the new law claim that it would allow the courts to use common sense and to apply the best interests of the child approach

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High net-worth divorce may spell image trouble for Tom Cruise

Massachusetts readers may be aware that yet another movie star marriage has hit the rocks, though this one appears to have hit with a thud. While Cruise marked his 50th birthday on July 3, Holmes has apparently been occupied with putting the finishing touches on her divorce paperwork, which was filed on June 28. The meticulously chronicled union between Tom Cruise and Katie Holmes, cynically dubbed TomKat, has apparently come to an end. It was recently announced that Holmes has filed for divorce from Cruise, citing irreconcilable differences. In what surely will be a high net-worth divorce, the couple appears set to focus primarily on their 6-year-old daughter, Suri. The paperwork for the divorce was filed in New York. Some observers have speculated that her choice of jurisdiction may indicate that she intends to seek sole custody of their daughter. It is predicted by many that New York will lend Holmes a greater child custody advantage than by filing in California — another location where the couple owns residential property. In a high net-worth divorce between any high-powered couple, whether in Massachusetts or elsewhere, one important element for each party is their public image. Each will likely want to protect their personal brand at the same time that they are negotiating over issues important to them both, most probably child custody issues. Some believe that Cruise’s brand could take a hit because media reports about his personal life and religious views may run counter to the nice-guy/hero image typically portrayed

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