Divorce

Drug Testing and Nasty Custody Disputes in North Carolina

Published on: September 4, 2012 | On behalf of Arnold & Smith, PLLC

Recently, a family law expert, Henry Gornbein, wrote an editorial for the Huffington Post dealing with the effect of medical marijuana laws on custody disputes. The article concluded with a discussion about how even in states where medical marijuana is legal; a spouse possessing a valid medical marijuana card should still refrain from partaking while in front of their children. Gornbein went so far as to suggest that custody schedules should be altered to take into consideration times where the one parent would be using their medicinal marijuana.

The article is an interesting one in the context of how criminal law has collided with family law. The article also brings up the role of drug testing in North Carolina divorce cases. Drug testing can have a profound impact on some custody cases in the state. Given that North Carolina is a state where all marijuana use is illegal, a positive drug test can be the difference between custodial parenthood and supervised visitation. It’s absolutely the case that no family law court in North Carolina would design a custody schedule around a parent’s marijuana habit.

Parties might request a drug test to provide evidence of habitual drug use in order to attain a fault divorce. One spouse may also request a drug test if there is a heated custody battle and drug use has been alleged. They may be after sole custody of the children and are hoping their ex will fail a drug test. Such failed drug tests can also be a basis for altering a custody agreement.

What to do about life insurance during a North Carolina divorce

Published on: August 30, 2012 | On behalf of Arnold & Smith, PLLC

Negotiating a divorce settlement can be stressful, especially when tension is high and your spouse insists on contesting every last detail. One thing that often is last on people’s priority list, but which should not be overlooked, is insurance.

As the Huffington Post explains, insurance policies are standard parts of Separation and Property Settlement Agreements. The spouse who pays alimony or child support is commonly expected to maintain a life insurance policy that would cover the debt owed to the spouse or children on the receiving end of the money, in case the payer dies while a debt is owed.

If you’re the spouse who is the beneficiary, you must be certain that the policy amount is sufficient to cover your children’s educations, your mortgage and related debt. It’s important to consider sticking in guarantees that forbid a lapse, cancellation or change of beneficiaries to the life insurance policy.

The death benefit on a term policy should meet or exceed the minimum amount a spouse would pay over time for spousal or child support. But more than just that simple calculation, other expenses should also be considered. For instance, is the health insurance under the paying spouse’s name? If so, what would it cost to find a new insurer and pay the premiums? That needs to be calculated into the number needed for the policy’s death benefit.

It’s critical that the details are attended to when it comes to insurance. For instance, while most divorce agreements require that a spouse purchase a life insurance policy, does yours go on to require that they maintain it? Lapsed policies can be canceled, something you surely don’t want to happen if you’re the beneficiary. Experts suggest adding the beneficiary spouse’s name to the policy as a contact that insurers can use if policy premiums ever go unpaid.

Drinking and Divorce: Study Examines Impact of Relationships on Alcohol Use

Published on: August 28, 2012 | On behalf of Arnold & Smith, PLLC

A recent article on ABCNews.com discussed a study which sought to examine alcohol’s role before and after divorce. The study, presented at the Annual Meeting of the American Sociological Association, looked at 5,300 people over a ten-year period and contained some surprising results.

Lead researcher Corinne Reczek, assistant professor in sociology at the University of Cincinnati, and her team looked at data collected from surveys of a random sample of 5,000 Wisconsin high school graduates of the class of 1957. Researchers conducting the study contacted each of the subjects four times over a 47-year period.

The results showed that men drank less while married than if divorced or single. In fact, men’s alcohol consumption showed a significant dip upon entering into a first marriage. Three quarters of the men who divorced blamed the end of their marriage for an increase in drinking. Unsurprisingly, men drank more during every stage of life than women. The researchers believe spending more time at home and out of the bars causes the post-marriage dip.

Divorce Lawyers in Charlotte, NC :: Some important “Do Not’s” for Those Going Through Divorce in North Carolina

Published on: August 23, 2012 | On behalf of Arnold & Smith, PLLC

Recently the Huffington Post published a list of tips for men going through a divorce. However, a quick look reveals that the tips are applicable to any parent embroiled in the difficult process. In addition to the tips listed below, it is recommended that you consult with experienced family law attorneys in Charlotte, NC to help you through the process.

1. Do Not Move
Moving out and supporting two households is an expensive undertaking for even the most financially sound, especially given the current economy. While you may not get along with your spouse, unless a court says otherwise, it is financially advantageous to stay put. Obviously there are exceptions to this tip, such as domestic violence or a court order.

2. Do Not Hide Money
While divorces may be expensive, hiding your money is a bad idea. If the court discovers that you’ve been squirreling your money away, then you lose credibility and the court will be more likely to side against you in the future. In the end, hiding assets will cost you far more than it is worth.

3. Do Not Lose Your Cool
A divorce is not counseling, the decision to end the marriage has already been made, and a screaming match benefits no one. Even if one side is provoking the other, it is always best to keep a cool head. Keeping things friendly can help prevent a long drawn out divorce and will allow a much better environment for the children involved.

Equitable Distribution Lawyers in Charlotte, NC :: How to Split Invaluable Assets in a Divorce

Published on: August 21, 2012 | On behalf of Arnold & Smith, PLLC

According to the Seattle Times, Christopher Larson and Julia Calhoun were able to divide most of their assets, but when it came to their art collection the couple could simply not agree. While emotionally valuable items are common in divorce, the couple’s art collection had not only emotional value, but a tremendous dollar value. The collection was appraised for over $100 million and included several masterpieces by artists like Monet and Renoir.

Christopher Larson, a retired Microsoft executive, earned his millions by getting in on the ground floor of the tech giant back in 1981. His 0.5% stake in the company proved very lucrative and once the company went public Larson’s net worth soared. Today the couple not only has an impressive art collection, but also a stake in the Seattle Mariners and a 25,000 square foot home.

The couple was able to agree on everything except what to do with the art, and after two tries the issue was handed over to the court. The couple’s 47 pieces could have been split in a traditional way, sell everything and simply split the proceeds. The problem: high taxes on art combined with auction fees would significantly devalue the collection. Even worse, the couple owns so much 19th century art that selling it all could have flooded the market and devalued the works even more.

The judge in charge of dividing the art asked for both parties to submit their wishes on paper. Julia Calhoun sent a long document detailing her emotional attachment to each piece and which ones she valued most. Larson sent a business like reply saying he needed paintings valued over $750,000 to secure a line of credit. Additionally, he said, “I have lots of wall space to cover, and so I do not want a collection consisting of very few expensive paintings.” In the end, Calhoun got 19 paintings and Larson got 24. The couple also did some trading after the settlement was reached.

Divorce Attorneys in Charlotte, NC :: The Impact of Divorce on a North Carolina Small Business

Published on: August 16, 2012 | On behalf of Arnold & Smith, PLLC

Divorce is a hard enough process for anyone to go through and there are lots of complicated financial decisions that must be made. The money worries can multiply for small business owners who have the added concern of how the divorce will affect their livelihood and even employees.

First things first, your business will likely need to be valued in connection with the distribution of marital assets. This will mean a financial expert may need to go over the records of the company and ask questions about expenses and revenue streams. You’ll need to produce extensive documents to verify the numbers in this process. Sometimes valuations, especially complicated ones, can be expensive. Many times each party insists on having their own expert look at the books. The process can be time consuming and can serve as a distraction for employees who must spend time gathering documents.

Though the worst-case scenario in many business owners’ minds is that the company will have to be sold to pay the spouse his or her share of the marital assets, there are ways to minimize the impact of divorce on a small business.

1. First, hire a good attorney. An experienced Charlotte divorce attorney will know what to do to reduce the impact of the messy divorce process on the continued operations of your business.

2. If you have a prenuptial or postnuptial agreement that could come in very handy. Such agreements can predetermine the amount of assets that will be distributed in a divorce and can thus protect a business from being broken up.

3. If you have partners, take a look at your partnership agreement and see if it addresses a way of buying out or valuing a share of the company if divorce is filed against one of the owners. While this may not control what a family court judge does, it can show that there was an intent to minimize business disruption which the court will likely respect.

4. If you aren’t lucky enough to have either of the two above agreements, consider hiring a joint financial expert to value the business which will save both time and money. The process will move more quickly if the two of you can agree on one neutral party to conduct the examination.

5. All involved parties, including attorneys and experts, can sign a confidentiality agreement to protect any sensitive information that is uncovered while examining the business’ books such as trade secrets or other proprietary information.

6. Finally, to minimize the risk of a sale of the company, you can attempt to structure the settlement with periodic payments to your spouse rather than a lump sum.

Divorce Law Firms in Charlotte, NC :: Back to School Advice for Divorced Parents in North Carolina

Published on: August 14, 2012 | On behalf of Arnold & Smith, PLLC

It’s hard to believe that school is about to begin in Charlotte. The start of school also means the start of after school and weekend activities. This time of year can be particularly stressful for parents who are going through, or have recently gone through, a divorce, as the family adjusts to visitation with the kids’ new, and likely busier, schedules.

Getting a child back to school is hard enough, but if you are co-parenting with your ex for the first time it can be even harder. Here are some tips from the Huffington Post for how to make navigating back to school more comfortable for both parents and, more importantly, the child.

1) The all-important backpack – If it is the first year the child is going through a co-parenting situation they may feel like they don’t have their own space. Moving from one house to another can leave them feeling insecure. Their backpack can be the one place that is theirs. Help them customize it, and assure them no matter where they go they can have it with them and whatever they chose to keep inside. This will offer some security and consistency in a changed setting.

2) Encourage your kids to keep it simple – Your child may not know how to explain their new situation to their friends. They may not feel it’s “normal” and they may have some degree of anxiety when families are brought up. Sit down and talk to your child, encourage them to keep it simple when explaining things to their friends and that it’s okay that they live with mom some days and dad others.

3) Be involved with homework – Helping your children with homework is a great opportunity for a parent. It can help you bond, and give you an opportunity to teach lessons beyond spelling. Even if you are the non-custodial parent try to see if there’s a way to stay involved in your children’s schoolwork and ask them if there is anything you can help them with when you are able.

4) Communicate directly with your ex – Do not use your child as a messenger to your former spouse. Not only can kids forget important details that may not be of interest to them, but it also puts them in an odd situation. E-mail can be a great medium for this, it avoids awkward phone calls, gives you time to edit yourself and provides a written record that no one can later claim that they didn’t know.

Charlotte Divorce Lawyers :: Grounds for Divorce in North Carolina

Published on: August 2, 2012 | On behalf of Arnold & Smith, PLLC

There are only two grounds for divorce in North Carolina. They are discussed in North Carolina General Statute § 50-6. The state has only two grounds for divorce: 1) Separation for One Year; or 2) Incurable Insanity of One Spouse and Separation for Three Years. In North Carolina, the vast majority of marriages end due to the first basis: separation for one year.

Many states, including North Carolina, require a “cooling-off” period of separation for a specific length of time before no-fault divorce proceedings can take place. During this time, the couple is required to live apart from one another with the intent that the separation will become permanent. In North Carolina, after the couple has lived apart for the required year, the divorce is typically granted about 60 days after filing, and the decree is made final immediately.

Under state law, the one-year separation does not have to be according to mutual agreement; only one spouse is required to have the intent to stop cohabitating with the other. Under present law, isolated incidents of sexual intercourse do not stop the statutory one-year period from running, provided such incidents do not amount to a “resumption of marital relations.” The only proof required of this separation is the testimony of the plaintiff; no written statements or affidavits are necessary. As is the case with both grounds for divorce, one of you must have been a resident of North Carolina for at least six months.
The other way to get a divorce in North Carolina is to meet the grounds of incurable insanity. To do this, the spouses are required to have lived apart for three years or more because of the condition of insanity. The condition of insanity must be proven by the testimony of medical or psychiatric experts. Given the work required to prove the condition, the insanity basis as grounds for divorce is not used very often.

Charlotte Military Divorce Lawyers :: The Complexities of Military Divorce in North Carolina

Published on: July 31, 2012 | On behalf of Arnold & Smith, PLLC

Deciding how to split up a couple’s accumulated assets is a challenging but necessary task before any divorce can be finalized. This already tough job can be made even more complicated if one or both spouses is an active duty or retired member of the military. In such situations, one of the couple’s biggest assets is almost always the military spouse’s pension. This pension, and all the rules that come along with it, make military divorces generally more complex than those of nonmilitary families.

Military pensions are often worth significant amounts of money and, as an added bonus, are guaranteed for the rest of the military spouse’s life. The Wall Street Journal says that a lieutenant colonel in the Air Force who has put in 30 years of service will receive a pension worth $72,288 a year. The pensions are not paid in lump sums, but if they were, the present value of the pension would easily exceed $1 million. What makes this even more valuable is that there is no minimum retirement age. It’s in the realm of possibility that someone who enlisted at 18 could retire at 38 and go on to receive a pension, including yearly cost of living increases, for decades into the future.

The state in which a spouse files the divorce petition can be one challenging aspect of the division of a military retirement pension. This can be tricky because, while a service member may be stationed at a base in North Carolina, they may have a permanent residence in another state. It’s also possible that an estranged nonmilitary spouse or ex-spouse could reside in yet another third state. Depending on the state, the nonmilitary spouse could lose out on the retirement benefits if certain forms are not filled out correctly.

The length of the marriage is another factor that can contribute to the difficulty of dividing up the military retirement pension. When the marriage overlaps the military spouse’s service period by 10 or more years, the nonmilitary spouse will receive benefit payments directly from the government. If the marriage lasted fewer than 10 years of the service period, then the government will not enforce a court order from the nonmilitary spouse for a share of the retirement pension. In such cases, if the military spouse does not agree to provide a share of the retirement benefits directly to the nonmilitary spouse, then the matter will have to be settled in a divorce court in the appropriate state.

The Impact of Divorce on Caregiving in North Carolina

Published on: July 19, 2012 | On behalf of Arnold & Smith, PLLC

A reality that many families are only beginning to face is the effect that divorce can have later in life on caregiving, especially for adult children and stepchildren. Taking care of older parents is hard enough; the only thing harder is having multiple sets of parents to watch after. This difficulty is compounded by the impact of a chorus of people seeking to give their two cents, including spouses, siblings, stepchildren, half siblings, and stepsiblings.

Beyond the problems faced by those who are the children of divorce, worries loom for middle-aged people in the midst of a divorce. They too will require help in the future and the question of who will be around to do it is on lots of people’s minds. The problem isn’t a small one as data indicates that today one out of every three baby boomers is single, many due to divorce.

As we discussed last week (“Gray Divorces” Present Unique Challenges), the “gray divorce” trend is on the rise. They will all need help but who is going to step in? It’s common knowledge (and backed up by studies) that women tend to have stronger support systems in place than men. This means that women will likely be more secure in their old age with a larger network of people ready to care for them. Sociologists and others worry about how men, in particular, will survive without a wife around to help out in their old age.

One sociologist pointed out that because women more often keep the kids following a divorce (especially thirty years ago, the peak time for divorce for those entering old age today) the children may have bonded more with mom than with dad. Absent fathers may not have any children standing by to take responsibility if something happens.

Other problems facing older divorcees include the impact of stepchildren. Will stepchildren feel much allegiance to supporting their parent’s former spouse, one with whom they share no DNA? How about when parents remarry with adult children, some of whom have families of their own? Will those kids feel any kinship with the new step mom or dad and thus feel compelled to sacrifice for their care?