The Good, the Bad & Ugly: Things a Divorce Attorney May Ask You to Share
TABLE OF CONTENTS
The Good, the Bad & Ugly: Things a Divorce Attorney May Ask You to Share Grounds of divorce Personal information Family information Property information Financial information Hidden Costs of High Net worth Divorce on Businesses Extra Taxes Ownership Stake Child and Spousal Support Forensic Accounting Business Valuation Complications Property Division: Role of Divorce Mediation Assist Parties To Reach A Mutual Agreement Determine if the Participants Have the Capacity to Negotiate Create Options That Will Lead to an Agreement Provide legal information, Not Legal Advice Make the party know that Children are most important
The Good, the Bad & Ugly: Things a Divorce Attorney May Ask You to Share No one likes to go through a divorce but sadly, it is a common trend nowadays. In the United States, 40-50% of all marriages end in divorce. The number is even higher for subsequent marriages. As if the emotional torture of ending a relationship with someone you love is not enough, the legal process is even more draining. This is why the choice of a good divorce attorney is paramount. Many people who are yet to hire a lawyer to handle their divorce proceedings worry about what they will be asked to share. Although there is a confidentiality agreement that your lawyer will sign before working with you, some folks are uncomfortable sharing certain sensitive information to anyone. If you fit the description, brace yourself because you will do some unmasking to your lawyer. Follow through as we reveal some of the things a divorce attorney may ask you to share.
Grounds of divorce One of the very first questions a divorce lawyer will ask their client is why they have divorced their partner. It is also one of the requirements in all state courts. Unless you live in a no-fault divorce state, your lawyer will be asked to give one or more reasons why you are filing for divorce. The reason has to be something pre-established and solid such as physical abuse, adultery, abandonment, and drug abuse. Most stated also accept less accusatory reasons such as irreconcilable differences and irretrievable marriage breakdown as probable causes of divorce.
Personal information Your attorney will also request for your personal information and that of your spouse. This includes any proof of residency, basic information (full name, social security number, and date of birth), contact information (phone number, email address, and physical address), employer information, how long your spouse has been employed, any business he or she runs, and where to serve the divorce papers to your spouse.
Family information The third thing you will share with your divorce lawyer is whether you have children from the current and previous marriages. In addition, they will ask about the wedding details (place and date you got married), existing custody arrangements, child support, health insurance, and the name of your spouse’s lawyer.
Property information Expect your attorney to also ask you to share your property’s information. Some of the things will include the address of your property, addresses of mortgage companies (if any), any outstanding mortgage balance, the estimated value of your property, list of all transportation items, make of each vehicle, and address of any lender with a title to any transportation item. Be prepared to give them all the deeds to each property, bank statements, refinancing paperwork, and escrow documents of the initial purchase of the property.
Financial information Last but not least, your divorce lawyer will want to know all your financial information. Some of the things they will ask for include a list of separate and joint bank accounts, savings bonds, C.D.s, credit cards, mutual funds, investment accounts, debit cards, and stocks. You will also be required to render any information regarding any money owed, involvement with any lawsuit, and a list of any livestock owned. There it is: 5 things a divorce attorney will ask you to share. To make the process easier, simply cooperate with your lawyer. Render all the information without holding back. At the end of the day, they are on your side and they will fight tooth and nail to get what you truly deserve.
Hidden Costs of High Net worth Divorce on Businesses Not many people can argue that they are self-certified. Are your liquid assets worth $1 million or more? Do you receive an annual income of more than $100,000? If the answer is YES, then you are self-certified. In the world of economics, you belong to an elite group of people called High Net worth Individuals (HNWIs). In simple terms, you are rich. The problem with being rich is that it is never easy when you have to deal with a divorce. A divorce not only affects personal assets but also business assets. From the legal consultations to the settlements, a lot of money is involved. So, the process is very expensive. The biggest challenge, however, is that you may not see some costs coming as they are normally hidden.
Extra Taxes When you have assets distributed in several places, you can be sure that the taxman will be on to you during a high net worth divorce. Tax complications exist when you have investments in real estate and when your business has entitlements or benefit plans. If you are not careful, you may end up overpaying your taxes, and this could impact your business negatively.
Ownership Stake This is normally the most contested cost during a high net worth divorce. If you and your partner have business assets that qualify as marital properties (assets acquired after marriage), you could be forced to share business ownership rights. In this case, both of you may enjoy 50% ownership rights. Not only cannot you make decisions without consulting your partner but you also have to settle with the idea of a part of the business dividends going to him or her.
Child and Spousal Support If the business assets in contention belong to a category often referred to as separate assets (assets obtained by before marriage), the court may decide to force you to pay child and spousal support. For your child or children, a part of the business dividends may be channeled towards paying for their education, nanny expenses, and upkeep.
Forensic Accounting Often, HNWIs are forced to do forensic accounting of their assets when facing a divorce to uncover hidden business assets. This comes at an extra cost since forensic accountants are highly-priced like most consultants. The advantage, however, is that you stand to track your lost assets at the end of the process.
Business Valuation Complications It is never easy to value a business when facing a high net worth divorce. You have to factor in things like account receivables, current stocks, high-value business assets, and unvested interests. These factors require you to consult so many experts who are expensive to hire. The complications mostly arise when a spouse refuses to disclose the full details of offshore business assets. You need these experts to do the full evaluation. Just as a divorce is expensive to a family, it is even more expensive to a business. This is if you consider the hidden costs that are involved. So, if you are an HNWI facing a divorce, you have to brace yourself for a costly process that is likely to impact your business assets. The secret, however, is to seek help from a legal expert and financial advisor.
Property Division: Role of Divorce Mediation Divorce cases are currently on the rise. Instead of going the legal way of having divorce cases in courts, which are usually messy, most couples opt for divorce mediation. In most cases, couples voluntarily agree to go the mediation way. Though in some cases, the court may order for mediation. If the mediation is ordered by the court then the court will appoint a mediator, but if it is voluntary, the couple chooses their own meditator. Do you know what the roles of a divorce mediator are? If not, here is what you need to know.
Assist Parties To Reach A Mutual Agreement Most couples undergoing divorce are always fighting; they do not seem to agree on any single thing. They fight over kids, property, and money. They do not see eye to eye. It is the role of the divorce mediator to create conducive environment where both parties will be free to discuss and come to a solution that will be mutually beneficial.
Determine if the Participants Have the Capacity to Negotiate For any effective negotiation to take place, both parties must be willing to negotiate. The mediator is tasked with finding out if any party is unable or unwilling to negotiate. Some partners might be unwilling to negotiate but focused on prolonging the divorce process. He should also ensure that both parties know the assets they own and their financial status. This sets an even ground for discussions.
Create Options That Will Lead to an Agreement Sometimes, things get too hot between the parties that they can no longer talk. In such scenarios, the mediator may be forced to come up with ideas to enable the process to go on. The mediator can split the couple into separate rooms and listen to their views separately. If the mediator promises them confidentiality, the couples may end up revealing more information that will make them reach a solution faster.
Provide legal information, Not Legal Advice If you are among the people who believe that a divorce mediator is supposed to provide you with legal advice then you are wrong. A mediator is only supposed to provide you with legal information and the options you have if you were to go the legal way. They are not supposed to advice any party on how to use that information.
Make the party know that Children are most important If there are kids involved, both parties should stay child-centered throughout the negotiation. The mediator has to ensure that this happens. He/she should regularly remind them that children are the most important in the entire saga. This way, they will agree on terms that will prioritize their kids’ wellbeing. The role played by a divorce mediator is very significant. Getting two fighting people to talk soberly and come to an agreement is no easy task. So long as the mediator stays neutral, fair, and unbiased, the process will be a success. Once the agreement is done, the mediator should have a draft agreement written and ensure both parties go through to confirm if it is correct.