October 2016

Why married women need to be ‘financial grown-ups’

In a new book written by a personal finance columnist for Reuters, people who have achieved considerable success in business and finance discuss when they first became “financial grownups” in their own lives. For one woman, Sallie Krawcheck, a former executive with Citigroup and Bank of America and founder of an investment website, it wasn’t until she and her husband divorced when she was 28. That’s not unusual. Many women, even today, don’t find themselves taking control of their own finances until they and their husband split up. Ellevest, the website founded by Krawcheck, provides a digital investment platform for low-cost investment in exchange-traded funds (commonly known as ETFs) to help them build wealth. Krawcheck noted that changes in a person’s life can happen without warning. Whether it’s the death of a spouse or (as in her case) learning that your spouse is cheating on you, women who haven’t been actively involved in the household finances can find themselves having to deal with issues they aren’t prepared to handle at one of the most emotionally-devastating periods of their lives. She says it’s a “recipe for financial disaster.” Krawcheck admits that even though she was building a successful financial career when she was married, she was “managing my own finances like a 1950s-era, stay-at-home housewife. He paid the bills, he made the financial decisions. I didn’t even know what our assets were.” She advises all women to take control of their finances and for married women to learn from her mistakes

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Parental alienation versus child abuse: Getting to the truth

In some contentious divorces, one or both spouses are so consumed with hate that they turn their child against the other parent by lying to the child about that parent, sometimes saying that the he or she doesn’t love them. In some cases, children are even convinced to say that a parent has abused them when they haven’t. This goes beyond saying unkind things about your ex in front of a child. It’s known as “parental alienation” because it turns children against a parent for no valid reason and destroys their relationship with a parent. Too often, that parent doesn’t understand the reason for the child’s animosity. Naturally, parental alienation can be highly damaging to a child well into adulthood. However, charges of parental alienation can also allow real child abuse to continue. Family court judges overseeing cases where one parent is alleging abuse and the other parent is claiming parental alienation have to determine who is telling the truth. One law professor notes that unfortunately, when one parent accuses the other of abuse, the parent bringing the charge can actually lose custody, leaving the child in the hands of an unfit or abusive parent because the judge believed that the accuser was guilty of parental alienation. That’s why it’s essential that if you accuse your co-parent of abuse, you have evidence to back it up. Psychologists may be called in to talk with the child. Witnesses may be brought in to testify on both sides. Some experts believe the

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Drug and alcohol testing requirements in child custody agreements

The 2013 National Survey on Drug Use and Health reported that over 24 million people are married to an alcoholic or drug addict. Many of these marriages, not surprisingly, cannot endure a spouse’s substance abuse. It’s estimated to be the cause of more than 7 percent of all divorces. When a couple has children, it’s essential to take steps during your divorce to ensure your children’s safety. Of course, in many cases, it’s preferable for children to maintain some type of relationship with the parent who’s an addict or alcoholic. Therefore, specific protections need to be included in the custody and visitation agreements to ensure that your children are not endangered emotionally or physically by that parent. A crucial element of any agreement involving an alcoholic or addict is mandated participation in a drug and alcohol testing program. A well-designed program can help reduce the chances of your ex drinking or using drugs when he or she is with the children. Companies like Health Street have testing programs specifically designed for custody and visitation agreements. The agreement can be written in any number of ways. It can mandate that the parent be tested prior to, during and/or after any visitations with the children. Results can be reported to the two parents, the attorneys, and/or the court. The agreement should also designate what can happen if a parent tests positive. He or she could lose visitation rights or potentially all parental rights if a pattern of continued use is found. Your

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Why you should hold off on romance until your divorce is final

Many people going through a divorce can’t even think about the possibility of dating again. However, what if you meet the person you truly believe could be the new love of your life? Even if you’re emotionally ready to become involved in a new relationship, doing so could harm your divorce and custody negotiations. If you begin a new relationship, your estranged spouse could become more difficult to deal with. Even if he or she too is seeing someone else, people’s feelings on these matters aren’t always rational. You’re risking making your negotiations regarding property division and spousal support more difficult. Speaking of spousal support, if you begin living with someone, you won’t be entitled to any. Even if you just have an occasional sleepover, why give your ex reason to argue that you and your new love are cohabitating? It’s important to know that Massachusetts maintains some of its puritanical laws from centuries past. Although it’s rarely prosecuted, adultery is considered a felony here. If you’re seeking a lump-sum settlement rather than payments over time, your spouse may be less willing to go along with that plan if he or she thinks that you’ll soon be cohabitating or remarrying. If you have kids, getting into a new relationship, or even casual dating, soon after a separation can be distressing and confusing for them. They need their parents now more than ever (even if they tell you otherwise). While it’s important to be personally happy and fulfilled, your focus should

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What courts consider marital property

Massachusetts law provides some specific guidelines for the court’s consideration regarding property division in a divorce proceeding. Since Massachusetts is an equitable distribution state, the court is charged with facilitating a settlement that is deemed fair to both parties. This approach differs from a community property division in that “fair” may not necessarily mean “equal.” When a mutually satisfactory division of assets cannot be reached in a divorce proceeding, the court first must determine what assets and debts are to be considered marital property. It must then proceed with an appropriate valuation of that property. Once the property is valued, the court then issues a ruling setting forth a division of property deemed to be equitable. Several factors must be considered by the court in its decision. These factors are defined by Massachusetts statutes, including the length of the marriage, the conduct of the parties during the marriage, the age, health, station and occupation of the parties, the amounts and sources of income, vocational skills and future earning capacities, employability, estate, the liabilities and needs of each party and the amount and duration of any alimony awarded. Additionally, the present and future needs of dependent children must be considered. The court may also consider each party’s contributions with regard to the respective estates, the contributions of each party as homemaker and other specific considerations such as health coverage. The stress of a divorce proceeding can be considerable. Seeking the advice of family law attorney, David M. Gabriel and Associates may

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Social media rants may affect alimony and child support

Social media, Facebook in particular, has become an integrated part of the lives of many Massachusetts residents. Some of us have become so accustomed to sharing our lives online that we update and post almost automatically, with very little thought given to what could happen to that information once it is out of our hands. However, when it comes to issues surrounding one’s divorce, posting is not the best policy, and can actually have serious ramifications for issues such as child support and alimony. Even if you think that your former partner does not or cannot see your Facebook activity, this is not the place to air your grievances about the marriage or divorce. If you make comments online that can be proven false, such as claiming that your ex is not meeting his or her child support obligations, the other party can sue you for libel. Also consider the long-term ramifications; if you post negative things about the other spouse and he or she loses a job because of it, their ability to pay child support or alimony could be severely limited, and they could approach the court to ask for a reduced amount. Another thing to remember is that Facebook is forever. What you write, can almost always be recovered and brought to the attention of a court, even if you have erased it from your news feed. That heightens the risk that a child may one day read the negative things you said about the other parent.

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Divorcing individuals in Massachusetts should examine their finances

Because couples in Massachusetts are not immune to potentially going through divorce, it is important to understand what separation could mean if such a decision is made. Financial needs will differ after a couple separates, and there will be many agreements that will need to be made in terms of alimony and other aspects. As a result, it is important for parties to understand their financial situation before divorce takes place. Bank accounts are one area that should be noted before separation. This examination will allow a party to understand how much money is in those accounts and what division of those funds could mean for their situation. If divorce has been decided upon, opening a bank account that is not shared with the other party is a wise step. Examining the debt that could be taken on after divorce is also an action that an individual may wish to carry out. Attempting to diffuse any accumulated debt before the separation would be ideal. However, many individuals know that it is not always easy to repay balances quickly, and therefore, preparing a payment plan for after divorce could be beneficial. Financial needs are important to assess at any time, but it can make a considerable difference when divorce is on the horizon. Understanding the current state of finances will help prepare for the future and how those funds will be impacted by alimony, child support and property division. Having the right information on such issues can play a role in

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Complex asset distribution in a divorce

If you have brought considerable assets into your marriage, or your marriage has lasted long enough for you to accumulate substantial wealth and material possessions, the ending of the marriage by divorce can be an even more stress-filled endeavor than it is ordinarily. It is not just accurately assessing the dollar value that can be problematic; you can also have a contentious experience with your soon-to-be ex-spouse as to who is entitled to what. You may have a nice home, considerable liquid assets in a variety of accounts, a substantial investment portfolio, real estate holdings other than your home, pensions and other retirement accounts, and so on. If you have worked closely with an accountant to protect your assets, you might also have structured your holdings to minimize your tax consequences, but in an asset division this can add to your potential headaches. Helping our clients to understand equitable distribution in Massachusetts, particularly with high-value assets on the line, is something that we at David M. Gabriel & Associates have extensive experience with. We can help you to carefully assess each asset’s actual value, and to navigate specific circumstances like assets connected to a business or properly determining whether an asset is a marital or a separate one. Your divorce may be amicable, but complex asset division can still become a source of friction when it comes to reaching a fair settlement. You will want a law firm to represent you that diligently represents your interests. To learn more about

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