Insurance matters play into property division during divorce

David M. Gabriel & Associates

During the midst of a Massachusetts divorce, there are a multitude of issues that must be addressed. Primary concerns are usually child custody arrangements as well as property division. However, taking the time to ensure that one’s insurance needs are adequately addressed can save a great deal of time, money and stress once the divorce papers are signed. One major concern involves health insurance. Making changes to existing health insurance policies can have a negative effect on both sides. If one spouse is no longer required to keep their ex on their policy, failure to remove them in a timely manner can equate to insurance fraud. On the other hand, someone who did not expect to be dropped from an existing policy could be in store for a nasty surprise at their next medical appointment. These issues should be detailed within the divorce settlement or decree. Another concern is life insurance. Many divorce agreements specify which party is required to maintain coverage, in what amount and for how long. Often this type of arrangement is made to ensure that alimony or child support obligations are covered in the event of death. However, it is important to keep an eye on these policies to make sure that the premiums remain paid and that the coverage is adjusted as needed (such as in the case of children who cross into adulthood.) Even auto insurance can be addressed during the process of property division. It is important to remember that while insurance may

Postnuptial agreements may ease property division upon divorce

David M. Gabriel & Associates

During the rush of excitement and anticipation that accompanies an engagement, many Massachusetts couples neglect to have a serious discussion about finances. Even fewer sit down and draft a prenuptial agreement. While the reluctance to address these issues at the onset of a marriage is understandable, it is not a wise financial move. There can be serious ramifications if the relationship ends in divorce and property division becomes an issue. Luckily, the exchange of vows does not mean that a couple has lost their chance to address their financial future. Many couples are turning to postnuptial agreements, which are a form of contract that addresses the same range of issues as a prenuptial agreement, but is drafted after a couple is married. Some couples choose to sign a postnup to avoid the repetition of financial problems they experienced during a previous divorce. Others simply want a measure of security as they move forward in their new relationship. The terms of a postnuptial agreement can vary between couples, but one common stipulation is that both parties are able to leave a marriage with the assets that they brought into the partnership. Just as with a prenuptial agreement, the drafting of a postnup forces the full disclosure of each partner’s financial standing, including assets and debts. This disclosure protects the validity of the agreement. However, it can also serve as a valuable tool to prompt a discussion about investment goals, debt management and retirement planning. One couple who opted for a postnuptial

Collaboration during divorce may ease property division strife

David M. Gabriel & Associates

When it comes to divorce, many Massachusetts residents think of it as a stressful, contentious and expensive prospect. We all have friends or family members who have gone through long and difficult divorce proceedings that ended with neither party truly happy with the outcome. However, there is another way to approach divorce that may eliminate many of the negative aspects of the process, and can result in a child custody or property division agreement that both parties can feel good about. The concept, known as collaborative divorce, began in 1990 with a family law attorney who had grown weary of the battles that couples wage at the end of their marriage. He wondered what would happen if attorneys and clients worked together to find a mutually agreeable settlement, rather than simply preparing for an ugly courtroom battle. The movement caught on, and there are now an estimated 22,000 lawyers across the country that are trained in collaborative divorce. The process aims to focus on the common goal of dissolving the marriage and allowing both spouses the ability to move on with their lives. Issues such as child custody and support, alimony and division of marital property are dealt with in a straightforward manner. In some cases, the parties and their attorneys meet together, which can make these negotiations much simpler and faster than a traditional approach, which requires a great deal of phone tag and relay of messages. In addition to a faster dissolution of the marriage, cost is another

Property division can be more complicated the second time around

David M. Gabriel & Associates

When a Massachusetts couple is engaged, the last thing on their minds is how their property would be divided in the event of a divorce. No one want to start a marriage by planning for the details of property division in the event that the union does not last. However, statistics show that one out of every two first marriages will not last. For couples walking down the aisle a second or third time, that number swells to 67 percent. Making matters worse, spouses who face a second divorce are more likely to take a greater financial hit the second time around. One reason that a second or later divorce is potentially more financially damaging is simple: there is often less to be divided. One or both spouses may still be paying alimony or child support from a previous marriage. In addition, many people see a decline in their financial stability when a prior divorce forces the sale of assets such as a home or investments. There could also be tax implications as a result of selling off assets to settle a divorce. Factor in a lethargic economy, a slow job market and a persistent decline in home values, and it becomes easy to see how a second divorce can cause more financial damage than the first. The end of a second or third marriage may also come at a stage in life where retirement is on the horizon. Other spouses may be beginning to experience increased costs associated with

Divorce over 50 — Division of marital property more complex

David M. Gabriel & Associates

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.

Property division now; division of college tuition bills later

David M. Gabriel & Associates

Children from divorced parents face a number of challenges when their parents split. In fact, in addition to property division, most divorcing couples in Massachusetts spend time working out issues concerning their children. How custody will be divided, what child support is appropriate, even where the kids will spend holidays. However, many divorcing parents neglect to plan for their kids’ college educations, which can lead to frustration, argument and disappointment down the road. The US News and World Report cites the cost of a college education as $35,000 and above at a private school, and $20,000 or above at a public school. And those are current numbers; kids who are young will likely face higher costs when they are ready to start college. The cost of a college education is difficult for most families to manage, and when the parents are divorced, some students find themselves unable to attend at all. In one unusual case, a college student sued her father when he failed to pay her tuition. Suspecting her dad might not follow through on his promise to pay for college, she had him sign a contract specifying that he agree to pay for her education until she was 25, as long as she made a serious effort to apply for scholarships and financial aid. When he stopped paying during her senior year, she took him to court. The judge ruled in her favor, awarding her a $47,000 judgment plus attorney fees. The case made national headlines, but the

Will property division tarnish amicable celebrity divorce?

David M. Gabriel & Associates

Celebrity couple Courtney Cox and Davis Arquette has filed for divorce. The couple has been married since 1999, but separated two years ago. Despite at least one attempt to reconcile, the marriage seems destined to dissolve through the requisite court procedures. Massachusetts residents will remember the actress from her role on the hit show “Friends.” The attractive couple has long received a great deal of media attention, which will likely not abate as they work out issues of child custody and property division in divorce court. What makes this celebrity divorce unique is the lack of acrimony between the parties. Cox and Arquette have spoken kindly of one another throughout their separation, and have appeared together at multiple events. They have asserted that they are, and will remain “best friends.” The two filed their divorce papers on the same day, June 8, citing irreconcilable differences as the reason for the filing. They are also pursuing joint legal and physical custody of their 8-year-old daughter, and are committed to raising her together. At the present time, neither party has retained an attorney; they are planning to represent themselves during the court proceedings. Massachusetts fans of the couple will no doubt watch this divorce as it unfolds. Many are hoping that the courtesy and grace with which the two have handled their split will continue. However, even what could be considered a simple divorce proceeding can become contentious. In a case involving spouses with high net worth it becomes even more difficult

Woman claims soon-to-be-ex spent $850,000 to earn mistress commission

David M. Gabriel & Associates

Boston shoppers who patronize the fancy department store Neiman Marcus (even if it’s just to look, rather than to buy) know that the luxury goods retailer is famous for its generous return policy. But that return policy is not good enough for one woman, who is angry that Neiman Marcus won’t let her return about $1.4 million in gifts from her soon-to-be-ex-husband. The woman, who is in the process of getting a divorce, believes that her husband purchased the items for her from a store employee with whom he was having an affair. She feels that he purchased the items not to make her happy, but to earn the employee a generous commission. This woman has sued Neiman Marcus over the issue and although her lawsuit is against the store and not against her husband, it is worth considering from a family law and divorce perspective, too. The woman claims that her husband went from spending about $100,000 per year at Neiman Marcus before he began having the affair to spending around $850,000 after the affair began. She says she did not know about the spending. In other words, what we have here is an issue in which one spouse’s dramatic spending was kept secret from the other and, obviously, that kind of spending can seriously deteriorate one’s financial condition, especially when you must go through the process of dividing up martial assets (like cash-on-hand) into separate assets. We do not know if this lawsuit will be successful, but it

property division

Insurance matters play into property division during divorce

Postnuptial agreements may ease property division upon divorce

Collaboration during divorce may ease property division strife

Property division can be more complicated the second time around

Divorce over 50 — Division of marital property more complex

Property division now; division of college tuition bills later

Will property division tarnish amicable celebrity divorce?

Woman claims soon-to-be-ex spent $850,000 to earn mistress commission

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property division

Categories

TAGS

TAGS

David M. Gabriel & Associates

Is Ready to Help You

Main Office

Salem Office

Burlington Office

Life Complicated? We Can Help

Life Complicated?We Can Help

Life Complicated?
We Can Help