Archive: July 2020

During the coronavirus pandemic, a number of homeowners’ associations (HOAs) have faced questions from residents concerning the issue of having to pay homeowners’ association fees while a number of facilities – such as the pools – have had to close due to the dangers associated with the virus. While some associations may have waived certain HOA fees and/or may be working with residents who cannot cover their fees, there are a number of reasons why HOA fees still have to be paid even during the pandemic. Not only are these fees part of the conditions, covenants, and restrictions that are signed into when one purchases into an association, but they go into a separate budget used for maintenance and improvements

For example, they are paid, in part, to insurance companies, plumbers, power companies, and other vendors. In addition, even if the pools are not used, they still have to be treated, and common areas, such as elevators and lobbies, have to be cleaned. The pandemic has also led some associations to need additional supplies, such as sanitizer and masks, as well as contract for extra cleaning services in common areas. It is also important to remember that associations have to keep in mind how any delinquency rates could affect lenders and thus any potential homebuyers’ decisions to purchase in the area, as this affects the current homeowners in the association.

According to the latest statistics, in 2018, almost one in 20 S&P 500 companies was hit with a securities class-action lawsuit. The latest trends indicate that air crashes, concert shootings, data breaches, opioids, sexual misconduct, and wildfires now drive large, event-driven lawsuits that are costing insurance companies millions.

Derivative Lawsuits

In addition, these events are also triggering securities class actions against company boards as well, known as “derivative” lawsuits. These typically accuse directors and officers of failing in their fiduciary responsibilities as well. For example, Wells Fargo and the company’s then CEO were sued for failing to stop the creation of false customer accounts. The company (i.e. its insurance company) settled the lawsuit for $240 million.

Strangely, these settlements often go to the very companies that are the subject of the lawsuits; funds that are often supposed to go towards corporate governance changes, such as overhauling the board. These are known as “derivative settlements.”

For some divorces, spending habits can become a serious issue; specifically, the issue of dissipation, which involves purposely spending extra marital funds while the marriage is going through a breakdown for one’s own benefit. There is no question that, in considering the division of marital assets and equitable distribution in states like Florida, intentional dissipation is one of the factors that the court will take into account as justification for unequal distribution. Once a divorce petition is filed, the administrative order prohibits both spouses from dissipating marital assets, therefore, issues involving dissipation typically arise when a couple knows that the divorce is imminent but before the petition is actually filed. For example, one spouse might transfer funds out of the marital estate or spend the funds on someone else in the form of hotel expenditures, gifts, questionable loans, etc.

As the eviction and foreclosure suspensions put in place in Florida and elsewhere expire, a foreclosure housing crisis is potentially on the horizon for millions of Americans who are currently unable to make payments due to COVID-19’s effects on employment. In Florida, the governor’s order places a halt on foreclosures and evictions through August 1, 2020, and the federal CARES Act only prohibits lenders and servicers from initiating foreclosure proceedings until August 31, 2020, leaving a number of residents to potentially face a host of legal actions after that.

According to available statistics, more than four million residential mortgage loans were in forbearance as of the end of June, and many of them have been still been receiving foreclosure notices from banks during the pandemic in spite of the moratorium, as it only bars judges and law enforcement from finalizing the proceedings until after August 1. While previous reports found that Florida (alongside New Jersey) had 24 out of 50 of the top most at-risk counties in the country, according to recently-released data, Flagler and Hernando Counties will be hit hardest during the second quarter.

As Florida family law attorneys who work to help our clients get through divorce with as little stress as possible, while also achieving their goals, one of the most important issues that clients have questions about are property division issues. This has become even more pressing given the current COVID-19 pandemic, as we potentially approach a housing crisis, and people become more and more concerned about their rights to the family home.

Florida Law & Issues That Can Arise

Florida law is clear regarding marital assets being distributed equally unless there is justification to do otherwise based on a number of factors that the court can take into account, such as the contribution of each spouse to the marriage, the duration of the marriage, the contribution of each spouse to assets, etc. However, questions can arise depending upon the particular circumstances of a relationship,  for example, if the mortgage is in one person’s name only, if one or both spouses lost their jobs, if the home is in foreclosure, if one spouse’s inheritance was used to make improvements on the home, etc.

As attorneys who help a number of clients with divorce here in Florida each year, we frequently discuss all of the many considerations that need to go into getting to a divorce settlement, but what about afterwards? There is still plenty that needs to be done with the assistance of your attorney after your divorce papers have been submitted to the court, as we discuss below:

Changing Your Name & Identifying Documents

If you are changing your last name, you will need to make updates to a number of important documents, such as your driver’s license, passport, social security card, etc. You will want to bring the judgment with you to the department of motor vehicles, passport office, etc.  Once these main documents are adjusted, it should be fairly straightforward to change everything else, including bank accounts, credit card accounts, homeowners and auto insurance policies (as well as title and registration for your car), etc. You may also need to open up new accounts in your name only.