Category: Property Distribution

When it comes to businesses started during your marriage, you may not realize that, if you do not properly protect that business, it could be split with your ex in the event of divorce. Some individuals even find themselves having to give up their own shares of a company they started – allowing their ex to buy them out as part of their settlement agreement – which can bring on feelings of tremendous despair and loss. Not only could you lose your business, but you would also have to split any growth in the value of that business that occurred during the marriage.

However, it is also important to realize that this does not have to happen, as there are ways to “divorce-proof” your business – as long as you plan ahead. First and foremost, keep in mind that the best time to do this is before you get married, and if you are already married, before you can even contemplate getting a divorce.

People tend to make a lot of assumptions when it comes to divorce, assumptions that can either leave you surprised and in a bind, or looking bad to a court, depending upon what activities you engaged in.

Below, we discuss some factors, issues, and behaviors that surprisingly do not impact divorce settlements.

Florida has what’s known as an “equitable distribution” policy; meaning that marital property is fairly divided between the divorcing parties. Therefore, even if you have been a stay-at-home parent or vice versa—you have been working more—this does not mean that the one earning the money ends up with a larger overall share.

Alimony is a sum of money, lump sum or over a period of time, which a husband or wife is required to pay to his or her former spouse after a divorce and ordered by the court. In fact, in deciding alimony, courts may consider the following:

Also keep in mind that not every inheritance that you receive during your marriage turns into fair game for your divorce negotiations; in fact, the law dictates that as long as this asset is kept separate and was not commingled with marital assets, it can be classified as a non-marital asset to which the non-owning spouse does not have access. If this is of concern, you will want to ensure that you work with an experienced divorce attorney to keep it separate from your shared accounts or assets, regardless of what stage you are at in thinking about or negotiating a divorce settlement.

It is easy to be bombarded by information here and there about how divorce leads to more complicated financial circumstances. However, if you do it right—and work with the right attorney—you can complete the process without placing a financial strain on your family. Below, we discuss some of the pointers to keep in mind as you approach the divorce process:

Interview Several Different Attorneys

 Make sure that you do your homework when it comes to selecting your divorce attorney. Don’t just take one person’s recommendation or work with the first person who comes up online; instead, interview several different attorneys and note who is paying attention, providing you with detailed information on how billing works, etc.

Trust your intuition when it comes to deciding who you are comfortable with. If you sign an engagement letter, make sure that you and your attorney are very clear on what the hourly rate will be. Also make sure to ask whether the attorney works with any junior attorneys and/or paralegals, as that can sometimes lower the overall costs.

As posting on social media becomes more and more popular, it also becomes relevant to divorce proceedings. Specifically, social media activities often either contribute to the cause of the divorce, or can be used against individuals in divorce proceedings.

A study recently published in the Journal of Cyberpsychology, Behavior and Social Networking found that people who use Facebook specifically more than once per hour are more likely to experience conflict with their romantic partners. Often, jealousy or instability stems from people being able to reconnect with old partners, or “emotionally cheat” with others.

In addition, social media posts can absolutely be used against you in divorce proceedings: According to a survey conducted by the American Association of Matrimonial Lawyers, two-thirds of divorce lawyers use Facebook as a primary source of evidence in divorce cases. Below, we discuss some of the most common types of evidence gathered from social media sites for divorce cases:

No divorce is the same as another—each one is unique based upon the relationship and the unique circumstances involved. Still, all divorces have at least one thing in common: the need to make intelligent financial decisions if you’re going through it. Below, we provide some guidance on how to ensure that you are “financially free” after divorce:

Think Of Debt & Credit Scores

While many people contemplating divorce are instinctively concerned about the division of assets, many do not realize that a court also divides financial responsibilities as well, such as debt. Most married couples share accounts, and it can be difficult to maintain your credit if your ex stops paying the bills on a shared account—even if you both agree to take responsibility for this or that credit card or bill. Remember if your name is on something, you are responsible for it—regardless of what the court documents indicate.

When couples are contemplating or going through divorce, they already have too much to worry about: Depending upon their particular circumstances, that often includes the family home, the children, assets, and more. The last thing that most couples anticipate is also having to tackle an insurance dispute.

And yet, life insurance policies are one of the most important aspects of the divorce, but without ensuring that the proper documentation is in place, divorcing couples could be setting themselves out for a serious battle.

Support in Perpetuity

Life insurance policies can provide support and assurance where other payments—such as alimony—cannot, as they terminate upon death. Under the law, former spouses can remain named beneficiaries to life insurance policies even after the divorce has long been finalized.

Carefully Craft Your Divorce Settlement

A recent decision out of the United States Court of Appeals for Sixth Circuit upheld the importance of divorce decrees (i.e. settlements) even over later changes in named beneficiaries in terms of what qualifies for a qualified domestic relations order under the Employment Retirement Security Act. This decision reinforces the importance of carefully crafting settlement agreements.

Although the state of Florida has abolished the concept of fault when individuals file for divorce, that doesn’t make the process of obtaining a divorce any simpler, nor does it completely eliminate the impact that an individual’s behavior during marriage has when it comes to important decisions that come out of divorce, such as property distribution, alimony, timesharing, and related issues.

In addition, many would be surprised to find out that adultery (or, rather, “living in open adultery”) is still considered to be a crime in the state of Florida, thus, it’s fair to say that behavior during marriage–regardless of what’s listed in state statute as technical grounds for dissolution–can have its effects.

The No-Fault Divorce Law in Florida

Florida being a no-fault divorce state, which means parties can dissolve their marriage by indicating that the marriage is “irretrievably broken.” When either spouse files, they must simply prove that they have been married and at least one has been a Florida resident for at least six months immediately preceding the filing date.