Weinberg, Kaplan & Smith, P.A.Marlton NJ Family Law Attorney | Burlington County Custody Lawyer2024-02-19T08:08:17Zhttps://www.wksnjlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1302185/2021/06/cropped-site-identity-32x32.pngOn Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496522024-02-14T08:08:41Z2024-02-19T08:08:17ZReasons for avoiding mediation
Mediation could prove exceptionally challenging when one party is so self-centered they do not see the other person’s side or needs. High-conflict divorces could involve one or both spouses considering outcomes from the perspective of a win or loss instead of reaching an agreeable and fair conclusion. In divorces where physical violence and mental cruelty prompted the dissolution filing, mediation could prove an inappropriate path to take.
No generic timeframe exists for a conclusion to the mediation process. The spouses may find things take longer than they prefer, and persons rushing to conclude their divorce proceedings may not be suited for mediation.
Other considerations about mediation
Some may prefer litigation to divorce mediation because money is not a factor for them. They could focus solely on winning and believe a judge will see things their way. Persons with significant sums might feel willing to spend the money on litigation chasing this strategy, even if ill-advisable.
Emotions could run high in divorce proceedings, and a spouse may not worry about their financial and other losses. Their goal might focus on inflicting stress and hardship on the other spouse. Such persons could be ill-suited for mediation.
Those going through a divorce could review their plans for approaching the process. Choosing or not choosing mediation will likely be based on individual circumstances and preferences.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496432024-01-22T10:13:42Z2024-01-25T10:13:04ZMore assets to divide
When most people start out in marriage, they have very few combined assets. Then come the home and car purchases, combined investments, and retirement accounts. Those assets all need to get divided when you divorce later in life. This can lead to a more difficult and prolonged divorce.
Commingled finances
Commingled finances are another issue that can make it more complicated to go through a gray divorce. Commingling can happen when one partner uses their own assets to buy another asset that now becomes community property.
For instance, one party may use their money from an inheritance to buy a home. Commingled finances can make your divorce much more complicated.
Loss of social status
Loss of social status is another issue that can affect you during a divorce later in life. You and your spouse may have joined clubs and made friends with other married couples. After a divorce, those social ties can get severed, leaving you with a loss of friends that can result in a damaged social standing.
Damage to family ties
If you and your spouse have a marriage that’s lasted for many years, a divorce can cause damage to your family ties. After a divorce, you may lose the relationships you had with your in-law family members. This loss can cause increased emotional distress for you and your in-laws.
If you are going through a gray divorce, do not lose home. There are ways to overcome the complications that arise.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496402024-01-12T15:48:35Z2024-01-16T05:18:51ZIssues surrounding high-asset divorce
When there is much more at stake, things can become more stressful. This is undoubtedly true for high-asset divorce. Common issues you may have to deal with include:
alimony
asset division
asset valuation
asset hiding
business ownership
child custody
child support
lifestyle changes
home ownership
privacy and publicity
tax bracket implications
Many of the issues dealt with can be tricky and heart-wrenching. For example, who will retain custody of the children can be frustrating. When things get stressful for both parties, the entire divorce becomes toxic as both parties can become confrontational and the proper communication channels fail.
Strategies for dealing with a confrontational high-asset divorce
Despite your best efforts to keep things civil between you and your ex-spouse, the divorce may become highly contentious. At this point, the stress can seem unbearable and begin having a negative impact on your health and mental well-being. Using some coping strategies at this point may be a good idea. Consider options such as:
avoiding unneeded direct conflict with the ex-spouse
counseling
exercise
focusing on hobbies
focusing on the positive
not blaming yourself
taking time out for yourself
utilizing a support network
Overall, the stress from a combative divorce can be devastating. It's even worse when there are high financial stakes. Do what you can to lower your stress level as you move through the process. It can be a great benefit to your health and mental well-being.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496352023-12-21T19:41:49Z2023-12-26T07:46:12ZKinds of divorce in New Jersey
First, you should understand how divorce works in New Jersey. While there are many different contexts, most people move through one of four processes. These include:
contested divorce
uncontested divorce
mediated divorce
arbitration
A contested divorce must be decided in court by a Judge based on the laws of New Jersey. This is a form of divorce where either spouse could lose much control regarding the outcome. On the other hand, an uncontested divorce involves both spouses reaching an agreement on the terms of the divorce. Lastly, if there are disagreements, both spouses may seek mediation or arbitration to decide the divorce terms without going to court.
Protecting assets in a high-asset divorce case
However, with a high-asset divorce, the spouse with the most assets may have much more on the line. Protecting those assets is going to require some legal strategies such as:
avoiding a contested divorce
separating assets into marital and non-marital property
using a prenuptial agreement
creating a postnuptial agreement
using a trust
One of the biggest mistakes married couples who divorce make during the marriage is co-mingling all of their property. This often results in losing control over who gets what assets during a contested divorce. Instead, the spouse with the most assets should attempt to separate marital and non-marital assets. Making clear the assets that were not acquired during the marriage will provide more protection.
If each spouse agrees, an uncontested divorce will allow the couple to avoid going to court and asking a judge to divide their assets. Lastly, placing important assets into a trust with specific beneficiaries could protect assets from divorce proceedings.
Overall, divorce may not go the way you planned. When it is a high-asset divorce, there is a lot at stake. Move through the process carefully and consider your options.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496292023-12-12T21:17:48Z2023-12-13T21:07:48ZSpousal support
Family law judges follow a strict formula when they are called upon to calculate child support payments, but they have little guidance when making spousal support decisions. Instead, they consider factors including the length of the marriage, the contributions made by each spouse during the marriage, the spouses' incomes and future earning potential, and the lifestyle the couple enjoyed while they were married. In a high-asset divorce, the amount of alimony awarded can be significant.
New Jersey alimony law revised
The alimony rules in New Jersey were revised when Governor Chris Christie signed the Alimony Reform Bill into law in 2014. The length of time that alimony must be paid can no longer exceed the length of the marriage unless the marriage lasted for longer than 20 years, and paying spouses can petition the court to end alimony when the receiving spouse is involved in a romantic relationship even if they are not living with their new partners.
Avoiding court
Family law judges only hear arguments about alimony when divorcing spouses are unable to reach an agreement at the negotiating table. Judges consider many factors when determining the appropriate amount of spousal support, but that does not mean divorcing spouses are always happy with their decisions. When discussion becomes unproductive and an amicable resolution seems unlikely, spouses may be able to avoid court by exploring alternative dispute resolution approaches like mediation or collaborative divorce.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496252023-12-07T17:55:13Z2023-12-12T06:58:22ZPreserve individual autonomy
Marriage is a partnership, but your happiness depends on maintaining your individual needs in the midst of making joint life decisions. Prenuptial agreements allow people to express what is important to them, such as:
Business assets
Current ownership of real estate
Career sacrifices for raising children
You get a chance to explain your position on important financial matters without the emotional distraction of an actual divorce. Fair compromises that place value on your priorities and concerns are much more likely to emerge when negotiating a prenuptial agreement when the issues are theoretical instead of occurring in real-time.
Understand financial position and priorities
No one likes a financial surprise after getting married. By disclosing your assets, debts and future goals early on, both of you nurture feelings of trust. You get to know each other's financial status and make a cooperative plan for joining your lives going forward.
Feel confident and safe
A prenuptial agreement allows you to enter marriage with more confidence. As the years go by, the agreement limits the financial unknowns if a divorce comes to pass.
Despite the romantic and social elements of marriage, it is a far-reaching and binding financial contract. Similar to how partners form a business, you can create a roadmap for success by laying out a detailed agreement that addresses major concerns and what to do should problems arise.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496272023-12-07T17:55:40Z2023-12-11T11:03:14ZHighlight mediation's benefits
An uncooperative spouse might be against mediation simply because they haven't taken time to understand it. In these situations, mention how divorce mediation helps couples work together for the best possible outcome. You may also let your spouse know that mediation involves a neutral party, ensuring no one feels ganged up on. Instead, mediation gives you and your spouse a place to voice their concerns equally, with a mediator helping to move things toward divorce finalization.
Enlist their help with mediator selection
Another way to convince an uncooperative spouse about mediation is to involve them in the process. Your spouse may falsely believe you'll choose a mediator that is somehow advantageous for you. You can help quell these false beliefs by enlisting your spouse's help in choosing a mediator. Completing this step can help your spouse see that you can still work together.
Mention the benefits for children
In many cases, divorcing couples have children together. If your soon-to-be former spouse is dragging their feet about divorce mediation, it's worth mentioning the sake of your shared child or children. Opposing a divorce through mediation only leaves children and their parents stuck in an often stressful situation.
Most divorces aren't without one or a few roadblocks. When a spouse opposes mediation, it only serves to lengthen the divorce process and create undue stress for all parties involved.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496232023-11-27T05:01:42Z2023-12-01T05:01:23ZYour home and divorce laws
New Jersey follows an equitable distribution model when it comes to dividing marital property. Courts will carefully consider various factors related to the marriage, like the length of time, earning capacity and health, to determine who gets what. Given the home's significant value, it is possible that the judge may order its sale and split the proceeds between divorcing parties. Alternatively, one spouse may opt to buy out the other's share of the home or trade other assets for it.
Getting the house
If you wanted to keep the house and got your wish granted, you'd have to get a new mortgage on your own - refinancing. This process involves removing your ex-spouse's name from the loan agreement and replacing it with yours. If you can afford the payments and meet your lender's requirements, they will likely approve your application. However, bear in mind that a high asset divorce typically impacts credit scores negatively. Your new loan may come with higher interest rates or stricter terms than your current one.
Selling the house
If you are selling the house, your lender will expect you to pay off the existing mortgage with the proceeds from the sale. Or, if you can convince the buyer, they can assume the mortgage and take over the payments.
If you are unable to sell the house for a profit or break even, you may end up owing money on the mortgage after the sale. This is known as a short sale and can have negative consequences on your credit score.
The complexities of property division in a high-asset divorce require careful planning and a proper understanding of New Jersey laws that might come into play (including taxes). If things go well, you can keep the property or sell it for a profit without incurring major damage to your financial situation.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496212023-11-21T19:21:20Z2023-11-24T07:02:05ZYounger couples are more apt to draft a prenuptial agreement
About 40% of couples aged 18 to 34 draft prenuptial agreements, whereas only 13% of older couples aged 45 to 54 have embraced them. This trend indicates that these agreements are considered practical by an increasingly broader segment of society. Although these documents have traditionally been linked with asset protection, they offer a range of benefits you may not expect, essentially strengthening your relationship.
Psychological benefits that prenuptial agreements provide
Prenuptial agreements have three significant emotional benefits for couples. Consider these if you remain skittish about drafting one:
Facilitates financial conversations
Increases trust and builds confidence
Preserves personal autonomy
Conversations about assets before marriage can help overall communication and allow couples to be honest about finances. Drafting a prenuptial agreement is also a form of joint planning, emphasizing the importance of joint decision-making. While marriage is a union, each partner should still maintain a sense of autonomy. This agreement allows partners to do so.
Making your life easier
Although virtually no one enters into marriage to eventually get a divorce, circumstances can irrevocably change a couple's relationship. A prenuptial agreement may save your marriage in difficult times, but sometimes it may not. However, an agreement can make dissolving the marriage easier, especially regarding asset division. A prenuptial agreement can significantly shorten and simplify divorce negotiations if you eventually divorce.
However, a prenuptial agreement can help you avoid unneeded financial arguments, one of the primary reasons couples decide to split. Draft a comprehensive understanding and refer to it when needed to help you through rough times in your marriage, and if necessary, use it as a guideline for divorce negotiations.]]>On Behalf of Weinberg, Kaplan & Smith, P.A.https://www.wksnjlaw.com/?p=496132023-10-26T19:36:02Z2023-10-31T07:32:54Zhigh asset divorce. Unlike simpler classes of assets, there are several ways in which resolving executive compensation requires extra consideration.
The issue of vesting periods
The two most common forms of corporate compensation are stock options and restricted stock awards. In each case, an executive is given either stock in their company or the option to buy stock at a discounted price.
But the catch is that there's generally a vesting period during which an executive is unable to sell that stock and cash in. During a divorce, one party may have stock options or restricted stock whose vesting period hasn't expired. Generally, neither stock options nor restricted stocks can be transferred to another person.
In this case, one option is to place the stock in a consecutive trust on behalf of both parties. This gives legal standing and control to the executive's ex-partner, and the stock may be resolved after the vesting period expires.
Finding executive compensation
Unfortunately, one messy aspect of a divorce is often tracking down and accounting for the other party's assets. Especially in divorces involving high-worth individuals, this can be an involved process.
Corporate compensation is often a tempting option for one party to try to hide during a divorce. Usually, all paperwork and documentation is the personal property of that executive, and corporate compensation generally doesn't appear on tax returns.
It may require the services of a financial analyst to help track down evidence of stock options or unvested restricted stock. Corporate documents of various kind usually offer the best evidence of undisclosed corporate compensation.
The issue of corporate compensation can make divorce even trickier than usual. Corporate compensation can be difficult to fully discover, and there are structural issues that can make resolving it fairly for both parties difficult.]]>