
For many people, divorce is time consuming and emotionally draining, which explains why some are tempted to make some considerable financial mistakes during the process. While this is understandable, we as attorneys practice in divorce and family law frequently have to address some of the financial fallout from this decision-making, which then makes the entire process that much more difficult.
Below, we discuss how to avoid making the most damaging financial mistakes while going through divorce:
Big Ticket Purchases
First and foremost, do not let yourself go out and buy a big ticket item, like a new car or house. While these items might have been financially feasible before, you may very well find that they significantly interfere with your ability to stay on top of new finances that you are now solely responsible for.
Cashing In On Investments & 401(k)s
Also be careful about cashing in on investments and 401(k)s to pay the bills. Keep in mind that “cashing out” on these items could lead to substantial tax consequences; even potentially placing you in a higher tax bracket for the entire year, which can affect other payments, such as student loan payments. Also, even if you cash in on 401(k) funds that have already been taxed, you can get hit with a penalty by the IRS for cashing in on those funds before you turn 59 ½.
Cashing in on your investments also means that they are (obviously) no longer be invested, which could also take you off-track from the financial goals you and your attorney mapped out for your future.
When it comes to coming out of divorce positively, you want to have a solid financial plan in place. Keep in mind that, if you obtain a portion of your ex’s retirement accounts in the form of a qualified domestic relations order (QDRO), you can place this into a new IRA under your name and continue to defer paying taxes on the funds.
Alimony Payments & Employment
As you may know, as of January 1, 2019, the tax benefits associated with paying alimony will have effectively disappeared. If making alimony payments scares you so much that you are tempted to quit your job just to get out of it, don’t; this will simply result in more financial difficulties—and possibly more time in court.
Fighting Over an Expensive Family Home
One big potential mistake we see a lot of clients make is fighting over who is going to get the family home at all costs. This can sometimes be especially important to clients who feel like holding onto that home is important to their children.
However, while the home may seem like your most important financial asset right now, keep in mind that the mortgage and maintenance on it may very well turn out to be way too much for one person (you). In addition, some clients find themselves in what’s known as a negative equity situation, which means that they are stuck with a house that’s worth less than what they owe on it. That can turn out to be even harder on your children, especially if all of your income goes towards your mortgage and you cannot save any of it for their college education.
Contact Our Florida Divorce & Family Law Attorneys
Keeping the family home and making other big decisions may very well be in your best interests; just make sure that any decision you make with significant financial repercussions are first well-vetted with your attorney so that you stick to the financial plan that’s right for you. Contact our Florida divorce attorneys at HD Law Partners today to find out how we can help you stay on track.
Resource:
forbes.com/sites/davidrae/2018/10/25/divorce-financial-mistakes/#553ff9207eda

Many parents these days find it difficult to find that right life-balance when it comes to juggling career, child support, and shared custody after divorce. Recently, CNN ran an interesting piece focusing on some perspectives of fathers, in particular, who feel that the system has let them down. Some of these fathers have spent time in jail because they were unable to pay court-ordered child support; gone bankrupt; or even been altogether barred from seeing their children due to civil protection orders. And not all of them ended up in custody battles due to divorce: some learned all too late that they had fathered children but were excluded from the child’s birth certificate.
According to the statistics, even today, more than 80 percent of custodial parents are mothers. Does this mean that men automatically do not get a fair shake when it comes to custody cases? Laws in states like Florida and elsewhere were supposed to prevent this phenomenon by focusing on what is in the best interests of the child. Still, that doesn’t mean that men do not sometimes get the short end of the stick due to judges’ traditional perspectives. Below, we offer some insight on how fathers can avoid acrimonious outcomes in circumstances like these.
Paying Child Support
Even if you cannot pay the total amount of child custody you have been ordered to do so, make sure that you pay something. If you fail to do so, you most definitely risk jail time.
Remember that you can only reduce your child support payments by getting yourself in front of a judge, so work with a good attorney, and be patiently persistent. When it comes to communicating with the judge, your attorney will know how to do it and save you potentially suffering from the bias that can sometimes accompany the judge having to deal with someone who doesn’t know the law (i.e. you). Paying child support is an important part of the legal system, and judges expect parents to do whatever they can to financially support their children; however, they do understand that people lose their jobs and times can be tough, and they will sometimes consider modifying child support agreements, given some circumstances.
“Unofficial” Dads
While it may seem like women have the upper hand when it comes to custody if two people have a child out of wedlock, keep in mind that men can “catch up.” A father should file what’s known as legitimation papers in order for the court to establish that naming him as the father officially is in the best interests of the child.
Contact Our Florida Divorce & Child Custody Attorneys
If you live in Florida and are seeking legal advice on any divorce issue, contact our experienced Tampa family law attorneys at HD Law Partners today to find out how we can help. We have offices in Fort Myers, Orlando, Sarasota, Tampa, and Bradenton.
Resources:
cnn.com/2018/11/05/us/divorce-child-custody-tips-lisa-ling-this-is-life/index.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.13.html
The longstanding standard of what constitutes bad faith in Florida was determined by the Florida Supreme Court almost 40 years ago. The Court determined that an insurer has a duty to use the same degree of care and diligence as someone “of ordinary care and prudence.” Insurers must investigate the facts, give fair consideration to settlement offers and–where a reasonably prudent person would–pay total recovery.
However, two recent appellate decisions have made some important changes to what constitutes a bad faith insurance claim in the context of third-party liability claims, as we discuss below.
Eleventh Circuit Decision
The first of those decisions—by the Eleventh Circuit—upheld a lower court decision finding that Geico deciding to offer settlement limits twenty days from the first notice of the claim was not done in good faith as a matter of law. The court ultimately upheld the jury verdict in favor of plaintiffs, finding that the jury was reasonable and had enough evidence to conclude that Geico had acted in bad faith.
Florida Supreme Court Decision
Two months later, the Florida Supreme Court found that there was substantial evidence to support a jury’s finding that Geico had, once again, acted in bad faith in failing to settle a claim against its insured, stating that an insurer is not absolved of liability simply because it advises its insured of the possibility of an excess judgment, the probable outcome of litigation, and settlement opportunities. According to the Court, what matters is whether the insurer “diligently” worked on the insured’s behalf to avoid excess judgment—with the same haste and precision as if it were the insured. In addition, in cases where liability is “clear” and injuries so serious that an excess judgment is likely, because the financial exposure to the insured is a “ticking financial time bomb” and a lawsuit could be filed at any moment, insurance companies must not engage in any delay in making an offer—even when there is no assurance that the claim could be settled.
In this case, a significant factor—to the majority—was that Geico arguably introduced delay in failing to inform counsel of a number of things; even though it tendered policy limits within nine days of the accident; because it knew that the claimant had demanded a statement from the insured early on regarding assets and other insurance.
Contact Our Florida Bad Faith Insurance Defense Attorneys
Insurance companies not only have a duty to their insureds, but a duty to thoroughly investigate all claims and pay out benefits only where coverage and liability are clear. HD Law Partners represents insurance carriers in good faith disputes here in Florida, and provides the very best in defense of bad faith claims. Contact us today to find out more.
Resource:
images.propertycasualty360.com/contrib/content/uploads/documents/404/16977/11th-Circuit-Bannon-v.-Geico-Fla..pdf

In September, a lawsuit was filed against Tower Hill Insurance in Florida, alleging that the company engaged in fraud concerning a number of claims filed by Hurricane Irma victims, defrauding them of money that they are owed. The lawsuit specifically alleges that Tower conspired with two other companies—Humble and Ladder Now—to deny or underpay compensation on various insurance claims filed by the hurricane victims.
According to the complaint, Ladder Now is an “unlicensed independent adjusting firm” that effectively worked with Humble, a consulting and restoration firm, to doctor fake engineering reports that ultimately found little-to-no damage done as a result of the hurricane. As a result, the lawsuit not only accuses Tower Hill of fraud, but also of mail and wire fraud, theft, and the use of unlicensed adjusters and engineers to systematically rob policyholders of premiums. The complaint alleges not only past harms to these policyholders—but ongoing harm—as a result of Tower’s allegedly nefarious activities.
A Sordid History
According to the Better Business Bureau, Tower Hill Insurance Group has had a number of complaints filed against it over the last three years that describe customer dissatisfaction with the company. However, the consumer-based websites are arguably even more overwhelming when it comes to detailing complaint after complaint of the company routinely trying to rip people off by denying or shortchanging their claims, and going to exorbitant lengths to do so.
Your Options When It Comes To Bad Behavior
In addition to working with an attorney to allege that an insurance company like this is violating its contract with you and engaging in bad faith insurance activities, you also have the option of filing a Civil Remedy Notice of Insurer Violation when it comes to wrongs committed against you in the hurricane insurance claim context, including refusing to render the amount due, acting in bad faith by failing to properly and promptly investigate a claim, failing to pay the full amount of the covered loss, and failing to communicate with the policyholders; all in contravention of Florida law. In a nutshell, Tower Hill and companies that engage in these activities can be held accountable for failing to attempt to settle the claim in good faith when, under the circumstances, they could and should have done so. If this case is won, it will serve as a huge victory for the many Floridians who are currently fighting insurance giants that are illegally undermining insurance claims for the sake of profits.
Contact an Experienced Florida Hurricane Insurance Claim Denial Lawyer
If your home or business suffered from damage due to the hurricane, it is absolutely crucial that you work with an attorney to file your claim so that you do not become one of the many victims of insurance fraud, and if your claim has been shortchanged or denied, you have no choice but to work with an attorney to help you. Contact our Florida hurricane insurance claim denial attorneys at HD Law Partners today to find out more.
Resources:
housingwire.com/articles/46755-law-firm-levies-lawsuit-at-tower-hill-insurance-for-fraud-in-hurricane-irma-claims
complaintsboard.com/complaints/tower-hill-insurance-florida-c565346.html
bbb.org/us/fl/gainesville/profile/insurance-companies/tower-hill-insurance-group-llc-0403-3361/complaints
Study Finds That Third-Party Bad-Faith Insurance Claims Are Somewhat Out of Control in Florida

According to a new study, Florida’s third-party bad-faith legal environment increases claim costs for every insured vehicle by an average of $106 per claim, or a total of more than $7 billion in additional claim costs over more than a decade. According to some experts, most of these costs can reportedly be attributed to the rapid growth of bodily injury liability claims, as well as Florida’s legal rules and standards when it comes to resolving bad-faith allegations.
What Is A Bad Faith Claim?
Under Florida law, anyone can bring a civil action against an insurance company if they have been damaged by the company’s failure to attempt, “in good faith,” to settle claims when, under all circumstances, they could and should have done so, while acting fairly and honestly towards the insured, with due regard for the insured’s interests.
Florida’s Trends to Be Compared to Other No-Fault States
The report compared key bodily injury liability claims in Florida to similar trends in three other states that are all no-fault (like Florida); specifically, New Jersey, New York, and Pennsylvania. According to the results, these three states experienced relatively stable injury claims over the study period after taking primarily administrative approaches to investigating and resolving bad-faith allegations on behalf of car insurance companies. Conversely, Florida’s trends did not reflect this kind of stability.
Why Is Florida Different?
This phenomenon could be due to Florida failing to rely on these same approaches to resolving allegations of bad-faith, and, instead, allowing for unrestricted opportunities for claimants to file third-party bad-faith lawsuits against insurance companies. Specifically, some believe that the potential to win large settlements has created a powerful incentive for claimants and their lawyers to file car liability insurance claims that otherwise might not have enough merit to file here in Florida. Over time, this can pose a serious threat to Florida’s auto insurance system.
Another contributing factor to this problem is the failure of the system’s tort threshold to limit access to reimbursements under the liability portion of many auto insurance policies. For example, in similar (no-fault) states, bodily injury liability claim frequency is usually fairly low because the system is in place to limit the number of claims filed. One way of limiting this frequency is by providing claimants with ready access to no-fault reimbursement for medical bills and lost wages. However, this does not appear to be the trend in Florida.
Contact Our Florida Insurance Bad Faith Defense Attorneys
Insurance companies have a duty to thoroughly investigate all claims. However, they also have a duty to pay benefits only where coverage and liability are clear, and the amount involved is accurately documented.
At HD Law Partners, our attorneys represent insurance carriers when there is a dispute over coverage, damages, or liability. We also provide defense of claims alleging insurance bad faith. Contact our insurance defense attorneys today—we serve Orlando, Sarasota, Tampa, Bradenton, and surrounding areas of Florida.
Resource:
insurancenewsnet.com/oarticle/study-estimates-florida-third-party-bad-faith-costs-at-7-6-billion-for-12-year-period-2006-2017-2#.W6MgRtQpCt8
Decades after Financial Crisis, Foreclosures Still Haunting Homeowners in Florida & Elsewhere

While many think of the housing crisis as a thing of the past, in fact, a decade later, it still haunts a number of homeowners, especially in Florida, where many have to deal with foreclosure defense on a daily basis. Just between 2007 and 2016, there were close to eight million foreclosures in the U.S.
For those affected, losing their home isn’t just a matter of losing their most valuable asset, but of losing the source of countless memories of holidays, birthdays, graduations, and other important moments in their lives. It also means that their credit is destroyed, and any future mortgage that they pay will include a very high interest rate.
The Disparities Are Often Racial and Income-Based In Nature
Although the homeownership rate has rebounded in recent years, it remains well below the high it reached immediately prior to the foreclosure crisis. As of the summer of 2018, only approximately 64 percent of all households own their home.
Unfortunately, homeownership statistics are also much lower for black, Hispanic, and low-income Americans, less than half of which are homeowners. Prior to the foreclosure crisis, these groups were targeted for bad, risky loans, which helped to create the wealth gaps and disparities we see today. And instead of these areas recovering, they continue to see higher rates of foreclosures to date. This also has an overall negative effect on wealth gaps in general, as home equity has always been linked to an ability to save, build towards retirement, take out fewer student loans, start a business, etc.
Loan Modifications & Fatal Mistakes
For many, the ability to stay in their homes hinges on the financial institution that owns or purchased their mortgage approving a loan modification. Without approving that loan modification, these homeowners are often effectively left homeless.
For example, a number of people were erroneously foreclosed on due to computer glitches: just between 2010 and 2015, one Wells Fargo glitch alone may have caused more than 400 people to lose their homes. Reportedly, a malfunctioning tool miscalculated whether homeowners would qualify for federally-backed loan modification programs to modify mortgage payments and keep their homes.
Contact Our Florida Foreclosure Defense Attorneys
Given the plethora of mistakes like these made, any homeowners potentially facing foreclosure should, first and foremost, consult with a foreclosure defense attorney in order to understand their options and potentially fight the process and preserve both their home and their credit. Do not let one mistake or oversight by a financial institution cost you your home and negatively affect your credit for the rest of your life. If you live in Florida and are potentially dealing with foreclosure, contact one of our experienced Florida foreclosure defense attorneys at HD Law Partners right away to discuss your options—we serve clients in Tampa, Sarasota, Bradenton, Orlando, and surrounding areas.
Resources:
marketwatch.com/story/a-decade-after-the-housing-crisis-foreclosures-still-haunt-homeowners-2018-09-27
marketwatch.com/story/wells-fargo-may-have-accidentally-foreclosed-on-400-homeswhat-you-should-do-in-a-similar-situation-2018-08-07
For anyone who has gone through it or had friends or family go through it, you know that divorce is rarely an “easy” process, especially if it is contentious and children are involved. Some children can go through a variety of worries as a result; worries that include potential guilt, fear of abandonment, fear of change, worries that they might hurt one parent if they spend more time with the other one, etc. Some also act out and develop behavioral issues as a result.
Given that divorce is inevitable in some circumstances – and sometimes, it is also simply healthier to go your separate ways rather than expose your children to a toxic relationship – note that there are steps you can take to ameliorate the effects of divorce on your children, keeping in mind what they need most from you, as we discuss below.
An “Adult”
The phrase “be the adult” is arguably both obvious and confusing at the same time. Obviously, you are the adult, so what exactly does this mean? It means that, while your children acting out can be expected during this time, it is also important that your children know that certain types of behaviors are still unacceptable, and if the “heat of the moment” isn’t the best time to address these behaviors, you will circle back to it the next day, noting that, you understand that your child is going through a lot, but it is still not OK to do x, y, and z. In other words, according to the experts, what your child needs is a decisive leader who is also supportive and understanding, and who will provide them with a stable environment, even when things get stressful.
Routine & Flexibility, In the Right Proportions
Also keep in mind that stability and routine are important to kids, especially during a divorce. Therefore, try to do your best to make as few changes as possible during this time—i.e., keep things “normal” where you can. For example, even if they are switching school districts, make an effort to make sure they stay connected to their old friends.
This also extends to timesharing: while you and your ex may want to split things 50/50—on the dot—try to be flexible and “go with the flow,” letting your kid stay an extra night here and there if it’s more convenient for them or their schedule, etc.
Keep Things Civil
And while this is likely the most obvious lesson of all, it still needs to be said: Do not place your kids in the middle of your fights with your ex. In addition, not only should you not try to extract information about your ex while you have the kids, but make sure that, if they want to discuss these things, they do so at their own volition.
Contact Our Florida Divorce & Family Law Lawyers
Contact our Tampa divorce attorneys at HD Law Partners today to find out how we can help guide you through all of the important steps of the divorce process so that you and your family are protected.
How to “Divorce-Proof” Your Business
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.
Pre- and Postnuptial Agreements
A prenuptial agreement is one excellent instrument that can be used to do this. The written legal agreement can set anything aside—including a business started during a marriage—as separate property. Of course, any prenup agreement must be executed in accordance with the law, which means that full financial disclosure must be involved, and it must be executed before witnesses, without coercion, and where each party has their own legal representation. It also cannot be unconscionable (i.e. so unfair as to violate public policy). If it is too late for a prenuptial, a postnuptial agreement can also be entered into after marriage.
Once your fiancé signs the prenup, you will want to continue to work with your attorney to ensure that your business income is kept separate and not intermingled with marital assets. Your attorney will be able to help you ensure that everything is done by the book, so to speak.
Transferring Your Business into a Trust
Another option is to transfer your business into a trust, such as a Domestic or Foreign Asset Protection Trust. In this case, you will want to ensure that you work with an attorney who understands the nuances of business transfer like this. One of the benefits of this option is that your fiancé does not have to approve or sign anything first.
Contact Our Florida Business & Divorce Attorneys
Whether you are considering getting married or divorced, you want to make sure that you consult with an experienced family law attorney who comprehends all of your options when it comes to property division so that you are protected at every step. In the same way you obtain auto or homeowners insurance to protect yourself against loss, you should divorce-proof your business.
Contact our Florida divorce attorneys at HD Law Partners today to provide you with the guidance you need so that your business stays safe. Our attorneys are well versed in business, family, and divorce law, and the property division issues that come along with them.
Resource:
forbes.com/sites/jefflanders/2018/10/02/women-divorce-proof-your-business-now/#5782454c3bd5
Planning For Special Needs Children in Divorce

While many people realize that getting a divorce while sharing minor children can be complicated, divorcing while sharing children with special needs can be even more complex because parents often have to provide for these children and arrange for their care long after the children are no longer minors.
With the rate of divorce being around 85 percent amongst families of children with special needs, this is an important topic that deserves guidance and consideration, especially amongst family and divorce attorneys who are helping these families plan for the future.
Deciding On “Best Interests” For a Child with Special Needs
Under every state law—including that of Florida’s—what is in the “best interests of the child” is what matters in terms of figuring out time sharing between parents and households. But what exactly does this mean in terms of a child with complex or severe disabilities, who may require lifetime services and support? What about a child with autism or sensory processing issues who may have a more difficult time with change and taking turns staying at one home, then another? In some circumstances, it is entirely possible that one home or parent may be better equipped to manage a child’s disability and special needs, and, frequently, additional financial support is needed in order to provide for special needs children.
Guardianships & Other Provisions after Age 18
In addition, in some instances, a child’s disability will require planning well beyond the child turning 18 and is no longer considered a “minor.” Parents may need to provide for a guardianship, execute a General Durable Power of Attorney to allow for continued assistance with financial making, and also possibly execute a Health Care Proxy to allow for continued assistance with health care issues. However, it is important to note that the child has a certain amount of control over these documents after the age of 18, and is able to name someone other than their parents to fill particular roles, if he or she chooses to do so.
Florida’s Chapter 744 is considered Florida’s “guardianship statute,” and contains most common procedure followed to establish a guardianship in the state. Deciding on guardianship for the child throughout their lifetime can be particularly complex. A guardian has the authority to make very important, life-changing decisions on behalf of the child. In some circumstances, families may want this individual to remain one particular parent, or parents may want to step back and name someone else, while being reassured that they would continue to have an active role in their child’s life, even without being a named guardian.
Florida Divorce, Time Sharing, & Guardianship Lawyers
If you live in Florida and are seeking assistance with any family law issue, including issues involving divorce and special needs children, contact our experienced family law attorneys at HD Law Partners today to find out how we can help.
Resource:
law.com/njlawjournal/2018/07/19/planning-for-special-needs-children-in-a-divorce/
How You Can Address Your Ex Not Paying Child Support
According to data from the federal Office of Child Support Enforcement, more than $100 billion is currently pending in back payments owed to parents with custody of their children. In 2011 alone, unpaid child support totaled more than $14 billion.
Many people do not realize just how big of an issue failure to pay child support actually is, and this issue is only compounded when your child’s parent not only fails to pay child support, but also is also unemployed, untraceable, and/or has additional children from a separate marriage. In circumstances like these, working with an experienced family law attorney is the best way to ensure that you remain protected. Below, we discuss some steps you can take if you are owed child support:
Know Your Rights
You and your attorney should discuss your legal rights and responsibilities, as well as the pros and cons of going to court or entering into a settlement. One thing that you absolutely cannot do is prevent your ex from seeing your child in retaliation for failing to pay child support.
Figure Out the Circumstances
First, finding out why your ex is not paying child support is of paramount importance. If it is due to being unemployed or being in an accident, that is of course a different set of circumstances than your ex deliberately not paying you. With the help of an attorney, you may be able to work out a plan to receive financial assistance until they are on their feet and able to regularly fill in the gap.
Work With an Agency
Also with the assistance of your attorney, you may be able to successfully involve the state government agency that can help you with enforcement issues and in collecting child support dues garnished out of wages, if need be. You also have the option of working with a private child support agency to address any default in child support payments. Because these agencies are typically very busy and have many child support cases to handle each year, working with an attorney to make sure there is follow-up is crucial.
In Florida, once the custodial parent registers their child support court order with the state, Florida facilitates payments and enforcement actions if the noncustodial parent fails to pay child support. Wage garnishment is the primary method used by the state to collect child support payments, and if, for some reason, this method does not work, the state and federal government can take action to secure payment.
Contact Our Florida Family Law Attorneys
You and your family’s security is of importance to us at HD Law Partners. We have more than 40 years combined experience in representing Florida families involved in family law issues.Contact us today to find out how we can help you.
Resources:
t2conline.com/is-your-ex-not-paying-child-support-what-to-do-about-it/
floridarevenue.com/childsupport/contact/Pages/default.aspx

