Charlotte Divorce Lawyer Blog

Benefits of Lump Sum Alimony in Charlotte, NC

Published on: September 13, 2012 | On behalf of Arnold & Smith, PLLC

The family law practice area has seen the current economic climate lead to a huge increase in the number of modifications for existing child support and alimony awards. People are losing jobs, losing homes, taking pay cuts, losing bonuses and other compensation that was previously used to determine such financial support awards. This can be an especially big problem in cases where one party has received an alimony award and relies on those monthly payments to meet their basic living expenses.

If someone retires, gets injured, loses their job or is otherwise unable to make alimony payments, and your alimony is not designated as “non-modifiable” you may very well receive a discounted alimony payment on an ongoing basis or it may be eliminated all together. Even if the alimony award is non-modifiable, if the person responsible for making alimony payments loses a job and has no assets or means to pay, your chances of being able to hold someone in contempt for non-payment of alimony are slim. Given those potential concerns and the current state of our economy, those who are entitled to any form of alimony really should consider the idea of “lump sum” upfront payments so that they can avoid the issue of an alimony award being terminated or reduced based upon unfortunate circumstances arising in the future.

If there are assets, especially cash assets, available during the initial divorce proceeding it makes sense to at least consider how much of those assets could be distributed to you in a settlement in exchange for a reduced alimony payment. No one knows what the future holds and getting your money up front is a way to reduce potential risk down the road. Lump sum alimony does come with the responsibility of being smart with the money you get up front and making sure the lump sum lasts. This requires you being savvy and meeting with a financial planner or other adviser to manage your money properly.

Child Custody Cases in Iredell County, NC are Hard Enough, but What about the Dog?

Published on: September 11, 2012 | On behalf of Arnold & Smith, PLLC

As everyone knows, child custody is one aspect of divorce that can cause terrible bitterness and turn an otherwise amicable split into a drawn-out, expensive battle that leaves everyone battered and bruised, including the kids. The only good thing about child custody disputes is that they operate on an established set of laws and case precedents.

As discussed in an article on LATimes.com, determining who should get custody of the family pet is a totally different story. Pets are still viewed as property by the courts, even though many couples regard them much more personally. Because there are very few rules when it comes to deciding who should get custody of the pets, there is a wide variance among judges. Couples cannot assume a judge will make the decision based on who brought the pet into the relationship, nor can they count on the same elaborate factors being assessed that are considered when deciding child custody. In the olden days some judges would rely on “calling contests,” in which the spouse who could get the dog to come to them won custody. Far from scientific, courts have moved away from that process today.

So what are the options for spouses caught in a battle over your pet pooch? According to the LA Times, one possibility is to do what people with human children do, and work out a joint custody agreement. With a little extra work, both of you can keep taking your pride and joy to the dog park. Another benefit is that with shared custody you can always ensure there is someone around to look after your dog if you have to leave town.

This obviously won’t work if you and your ex will be geographically separate. If that’s the case, then you will need to do an honest evaluation of who is better equipped to take care of your pet. Who will be away from home more, which one of you has traditionally done most of the caretaking and, if you do have kids, how will child custody affect the decision.

Child Support Statistics Reveal What People Pay Across the Country

Published on: September 6, 2012 | On behalf of Arnold & Smith, PLLC

Parents sometimes wonder if the payments they make for child support are fair. They wonder what their friends are paying and what number average families across the country face when it comes time to write a check. Non-custodial parents may be curious to know if the support they pay is in line with other parents in the same position.

Well wonder no more; the U.S. Census Bureau recently released a new report titled “Survey of Income and Program Participation,” which examines child support statistics gathered from across the country. The data used to compile the report was pulled from the most recent national census in 2010. The report is quite comprehensive and sheds some light on who pays support, how many children receive it and the averages for monthly and yearly child support payments.

The numbers show that the average monthly child support payment in America is $430. Children below the age of 21 receive $5,150 on average each year for support. Unsurprising to many is the news that male non-custodial parents provided more child support by percentage than female parents, though the difference was stark. Eighty-five percent of all U.S. child support payers were men and only 15 percent were women. The report also found that child support payments made by men were higher than a woman’s average of $3,500 in yearly financial contributions.

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.