Archive: May 2018

Divorce has become more and more common for individuals who are 50 or older (sometimes called a “gray divorce”). The rate of divorce amongst this age group has roughly doubled since the 1990s, and for those 65 and older, it has tripled.

However, that doesn’t mean that there’s a ‘one-size-fits-all’ approach developing; because being comfortable after retirement is of paramount importance for those approaching retirement, there are some dos and don’ts when it comes to divorcing later in life, which we discuss in greater depth, below. In general, whatever funds a couple has accrued in their 401(k) plans, 403(b) or 457 accounts, individual retirement accounts, pensions, etc. will be divided, and therefore, there are some steps to take to protect yourself.

IRA Transfers

First and foremost, any and all IRA transfers need to be done properly, and with the assistance of an attorney who has experience in Qualified Domestic Relations Orders (QDROs), specifically. If they are not done properly, you can be subject to significant penalties and taxes.

More often than not—especially in states like Florida, where golfing is quite popular—windows within a homeowners’ and condo associations are damaged by the golf balls that fly in from nearby golf courses. In many of these associations, the golf course is private and open to those in the association adjacent to it. When someone buys into the community, they automatically become a member, and can use the course.

When something like this happens, who is responsible; the association, the golfer, the homeowner, or another party? Below, we discuss this liability, and who can be held responsible for it, in greater detail.

Liability Waivers in Association Documents

Most homeowners’ associations are protected in instances like these precisely because they have built a waiver of liability into the associations’ documents and under a legal theory known as “assumption of risk.” The language will typically say something to the effect of “owners assume all risks associated with errant golf balls and hereby agree not to pursue any claims against the association, golf club, or any other party other than the golfer.” Thus, paying for the damage or filing an insurance claim is often the responsibility of the owner.  This is akin to individuals who have residences near airports, but are frustrated by the noise; it can be difficult to successfully file a lawsuit based on that noise nuisance, given that the homeowner presumably chose the home, and knew it was near an airport.

According to the Palm Beach Post, with Florida only one and a half months away from the next hurricane season, less than 57 percent of Hurricane Irma insurance claims have been closed with insurance payments, leaving many home and business owners at a loss, wondering if they will ever hear back on their insurance claims, and whether perhaps those claims will be denied due to the $8.6 billion backlog on them.

In addition, industry officials recently acknowledged that they may have underpaid on tens of thousands of claims they declared closed after September. For example, Florida state-run Citizens Property Insurance just reopened more than 24,000 Hurricane Irma claims to review as more information has become available.

With so many Florida property owners feeling abandoned and on their own, insurance companies are now concerned about litigation. In particular, it is of concern that many claims are declared closed in the first place, only to be reopened once legal concerns are expressed.

When it comes to figuring out whether a homeowners’ association is liable for damage, it largely depends upon a) what caused the damage and b) the declaration of condominium.

Take, for example, windows in Florida homeowners’ associations that started leaking after Hurricane Irma: As a general rule, any damage done by a hurricane falls on the responsibility of the association and its insurance policy.

The Law in Florida

The Florida Legislature requires lower or stable insurance premiums for associations in order to protect the safety, health, and welfare of Florida citizens. This includes adequate property insurance for full insurable value, replacement cost, or similar coverage, and this includes coverage sufficient to the probable maximum loss for communities for a 250-year windstorm event.

Determining Cause Is Key

However, figuring out if the leaks are actually due to the hurricane—or something else—can sometimes be challenging, and typically requires that the member consult with a professional to determine the cause of the damage. If, in fact, the damage was due to the hurricane, then the association is likely responsible for making repairs and the member would need to cover anything associated with the repair, such as the paint, window coverings, etc.