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Dissipation of marital assets: What is it? What’s your recourse?

Gray Divorce In FL

Divorce is understandably tough on anyone. Acknowledging that your marriage is irretrievably broken, thinking about budgeting for the same expenses with half the income or realizing that you are single, again, are heavy subjects.

Dealing with a spouse who does not want to play fair – like one who tries to dissipate assets – only adds to your stress. Worse, it can cause lasting problems if your attorney is not ready for the challenge or experienced in these types of cases.

What is dissipation?

Dissipation is the legal term for situations in which one spouse wastes marital assets that would have been subject to division in a divorce. It is one of the go-to tricks for spouses who want to play dirty, often affecting women.

Examples of dissipation could include things like:

  • Purchasing extravagant gifts for a girlfriend
  • Racking up credit card debt
  • Harming a business
  • Gambling
  • Abusing drugs or alcohol

Do you have any recourse?

Under Florida law, a court can award you a larger share of the marital estate during property division to compensate you for the assets you would have had absent dissipation. The tricky part is proving it.

Before the court will award an unequal distribution based on distribution, you must establish a few things:

  • That the waste was intentional: The standard here is not beyond a reasonable doubt as it is in criminal courts, but that does not make it easy. For example, is spending too much money at the bar an indication of intent or a symptom of addiction? Did business profits dip because of the market, bad management or sabotage?
  • That the waste was substantial: The court likely will not consider one meal at a nice restaurant dissipation. The financial misconduct must be much larger, substantially affecting the value of the marital estate. There, however, is not a minimum dollar amount. The determination is relative to you and your spouse’s financial situation.
  • Timing: Florida statutes state that the waste must have occurred after you filed the petition for divorce or during the two years leading up to the divorce. This might seem like a hard line, but judges have the authority to exercise discretion when they believe it necessary for a just or equitable result.

Evidence often proves crucial in these cases. Protect yourself by obtaining detailed copies of financial records, taking screen shots of social media posts and pictures or otherwise documenting any suspect behavior.

The basics of inheritance and divorce

Inheritance can be a sticky subject when going through a divorce. There’s so much in question about how much things are worth and who gets what, it’s overwhelming. The longer you’ve been married the harder it becomes to recognize the difference between separate and marital assets. So where does inheritance fit in? Is it considered separate property?

No matter if the inheritance was obtained prior to or during the marriage, it is legally considered separate property. There are very few situations where a judge will grant both spouses access to one’s inheritance.

What if inheritance money was used on marital assets?

Things get tricky when inheritance money is used as payment for marital property. For example, if money from the inheritance was used to pay the mortgage, it doesn’t mean the house belongs to you. Using inheritance money on marital assets doesn’t give you ownership; both parties will be considered equal owners of property obtained during the marriage.

If inheritance is deposited into a joint bank account used by both spouses during the marriage it loses its immunity and will be considered marital property. Comingling assets blurs the lines and is much more difficult to fight in court. A judge could give both spouses a portion of the remaining inheritance if they determine the money is necessary for them to survive on.

What should you do if you’re unsure about the state of your affairs?

If you’re facing divorce and unsure about what will happen to your inheritance, contact an attorney. They will be able to offer advice, answer questions and give you a more realistic idea of what to expect.

What could politics have to do with marriage trends?

It is not often (or ever) that we discuss political issues on our Florida divorce blog. A recent report about an important political matter, however, suggests political decisions have had an impact on family trends. Therefore, it makes sense to talk about the issue of economic decisions in the U.S.

A hot topic politically has been and continues to be the outsourcing of manufacturing jobs. Sending factory, blue-collar jobs out of the country leaves less work for a large demographic of Florida people and others in the U.S. According to an MIT study, the loss of jobs is leaving fewer jobs in the country, as well as fewer marriages among blue-collar men.

The economic study led to family-related findings that may have some application to the conversation of divorce. Before getting to the potential divorce implications of this reported trend, let’s first go over points researchers take from their study:

  • With fewer manufacturing jobs in the U.S., more men are unemployed and, therefore, making little income.
  • This reduces the likelihood that a person would want to marry the low- or no-income group of men.
  • The economic impact of outsourcing manufacturing jobs leaves more men not just unemployed, but likelier to engage in risky behaviors.
  • Behaviors such as drug use, addiction, engagement in crime, etc. lead to men whom are not marriage material or interested in marriage.
  • Risky behaviors kill some of the men or put them behind bars.

Enough about those who do not get married. There are certainly those who despite financial hardships or risky behaviors of one partner go ahead and get married. Or maybe employment difficulties and/or risky habits pop up later in a marriage. Stress due to money and an unhealthy, risky change in behavior most certainly can result in the need to divorce.

Are you tired of fighting with your spouse and worrying about money? Have life’s difficulties such as unemployment or stress caused your spouse to engage in habits that are unhealthy or even dangerous to the well-being of your children? A divorce lawyer can listen to your story and explain what divorce could do for you and your family.

Happy Engagement! Here is a gift of marriage classes?

Anyone who is married or is in the process of wedding-planning knows a lot goes into the wedding preparation. But what about marriage preparation? What did you and your spouse do in order to feel ready for marriage? If you are currently engaged, do you have any plans beyond the wedding details in order to prepare for the supposed forever together?

We bring this up because of a current news story about a trend in Asia. A Forbes contributor shares how a new wedding gift is on the rise in Asian countries: marriage counseling. The goal of the education is to reduce the rate of divorce in countries like China. How would you feel to receive the gift of counseling?

Many couples in Florida do go through pre-marital counseling. Generally, couples will do so because they are getting married in a church or by a clergy member who requires such education. The hope is that couples who go through the counseling address issues that could impact their future marriage, including any potential hurdles that might lead to divorce.

Despite pre-marital counseling, couples in Jacksonville and across the country still tend to face marital conflict. Does the counseling that they went through keep them from divorcing? This depends on each case, the people and the workings of their relationships. Studies reportedly show, however, that couples who go through pre-marital courses have happier marriages and are less likely to divorce.

With the rise of pre-marital education in Asia, one might expect the divorce rate in some Asian countries to decline. While saving some marriages most likely is a benefit and gift to certain families, protecting marriage is not necessarily what’s best for all. Many men and women who choose to divorce do so after giving trying and trying to make things work. They also might make the choice because their marriage is so unhealthy that it’s dangerous to their physical or mental well-being.

What is troubling you within your marriage? What is not working, and are you prepared, equipped or willing to try to get through the marital hurdles? If you simply cannot withstand the hardships within your relationship anymore and you know you must move forward with divorce, you are not giving up. Rather, you might be renewing the invaluable relationship you have with yourself as a person deserving of something better.

Special concerns in high-profile divorces

A politician divorce has recently come up in the news here in Florida. The politician in question is Charlie Crist, a current Florida U.S representative and former Florida governor. It was recently announced that Crist has filed for a divorce from his wife of nine years.

Politicians are one of the many types of public figures who can find themselves in a high-profile divorce. There are many special concerns a person can have in such a divorce.

Among these are concerns regarding reputation. Reputation can matter greatly for a public figure and their family members, both when it comes to their career and their life in general. Things that can impact what effects a divorce ends up having on a person’s reputation include the actions they take during divorce proceedings, their spouse’s conduct during such proceedings and what sorts of privacy protection steps are taken during the divorce.

Also, unique issues related to marital assets can be present in the divorce of a public figure. For one, such high-profile dissolutions of marriage can be dealing with some high-value property. Also, some of the marital assets in such a divorce could be ones that are a big part of a high-profile figure’s public life or career. These special issues can bring up a range of different worries and questions for a public figure or their spouse when it comes to property division.

A public figure and their spouse can be greatly affected by how these sorts of special concerns are addressed when they divorce. So, when going through a high-profile divorce, a person may want guidance from an attorney who understands the unique legal needs that can come up in connection to such a divorce.

Source: Miami Herald, “Charlie Crist files for divorce from wife, Carole,” Adam C. Smith, Feb. 24, 2017

More about how e-communications can impact your family law case

By now, you probably know not just about the benefits of our digitally-connected world but also the dangers. The Internet can create frightening legal circumstances. It is not just criminal cases that can stem from irresponsible online activity; family law matters can take root in the form of electronic communications.

A recent post began the conversation on our divorce blog about how social media can play a surprising role in the divorce process. It isn’t just social media sites, however, that could help or hurt you in family law matters. Emails and texts can serve valuable purposes in court, too.

With the popular reliance on email and text communications, you and your ex now both have documented records of things you have told each other. No longer would you have to convince a judge that your ex verbally hinted at getting a big bonus at work; you might have email or text message evidence of that financial information.

If you are feeling dubious about the financial situation and your ex’s honesty about money in your divorce, therefore, you might want to look back at your electronic communications between you and your ex. Look for potential evidence that there might be more money on the table than your ex lets on. Find that possible evidence and print it out. Show it to your lawyer.

We’ve focused on the financial aspects of divorce that can be impacted by electronic communication. Keep in mind, too, that social media posts, emails and texts that suggest unfit behavior of a parent could play a role in child custody matters.

To sum this matter up, understand that the content you post online, email to your spouse or ex and send via text messages provide more thorough pictures of the family situation for a family law court to analyze. If you suspect your ex is lying, weeding through communications that could confirm your suspicion might be a helpful option for you.

An important note, too, is to think about how you portray yourself on social media and whether what you share makes an accurate and fit picture of you, particularly as a parent. While going through divorce, it is safer to assume that your ex and the court are looking for a reason to rule in favor of one party over the other in a child custody dispute. You do not want to lose time with your kids over posts that not only portray you as unfit but portray you inaccurately.

Have any questions or concerns about your divorce and whether online or other electronic activity might affect matters? Talk to a trusted family law attorney to understand the reality of your specific case.

Social media and e-communication: the risk and rewards in divorce

How many times have you been on Facebook, Twitter and/or Instagram today? Have you written an email? Have you written or received any text messages? It is probable that you have engaged in one or more of these electronic communication habits already today. These modes of communication and leisure have become as common as tying one’s shoes in this day and age.

The everyday aspect of these actions can create a sense of naivete among the people in front of the phone and computer screens. Communications that are entered into a digital world are real. They are documented for all to see and to refer to. They can be used against or for you in a court of family law. But what does that mean for you in your Florida divorce?

First, let’s discuss social media. For many, social media sites are a way to post pictures of their lives and to see what family and friends are up to. It can be a valuable means of staying connected. From a legal standpoint, the posts on these sites can serve as evidence in certain cases such as when determining child support payments.

For example, did your ex say that he makes a certain amount of money and, therefore, cannot pay a certain amount in child or spousal support? Maybe you check Facebook and see a post that he or his friend shared suggesting there is more money in his accounts than he lets on. If you notice some extravagant purchases, you can show those posts to your divorce lawyer as possible evidence of financial fraud.

Emails and text messages can also prove helpful or hurtful in your divorce case. An upcoming post will add to this conversation about digital communication and the possible impacts in your family law case. Until then, can you think about your life and divorce situation and how an electronic communication did impact or could have impacted your case?

Valentine’s Day: Good for romance, but not a wedding

Love is in the air. Valentine’s Day is just days away. The store shelves are stocked with stuffed animals holding plush hearts, red-foiled chocolates and cards declaring love in all kinds of words.

What does the February 14th holiday mean to you? If you are like many, it might just be any other day. If you are like many others, you look forward to the day as an occasion during which to show how much you love your partner and to feel that love in return.

No matter how you and your love choose to share your appreciation for each other on Valentine’s Day, research suggests you avoid one specific mode of expression: a wedding. It turns out that one way to predict whether a couple will get divorced is to look at the date they chose for their wedding.

Researchers studies 1 million couples and looked at their marriages and their rates of divorce. The couples from the large group who got married on special days such as Feb. 14 or days with numerical significance were more likely to get divorced than the couples whose weddings occurred on more random dates.

Why would dates make a difference in the rate of divorce? The researchers’ theory is that cool numbers or something like a Valentine’s theme wedding might say something about a couple’s (or one party’s) priorities. Focusing on how cute a Cupid-themed wedding might be rather than on what a couple truly needs and wants out of marriage can set that marriage up for hardship.

A lot goes into a marriage. Staying with someone forever is hard; for some it is impossible for the sake of their well-being. Maybe you or your spouse were blinded by the fun of planning a wedding and now an unhealthy reality has set in. Maybe you want this to be the last Valentine’s Day in your marriage where you are wishing for more. Turn to a divorce lawyer who knows how to help you move forward.

Divorce considerations and tax implications

tampa-divorce-filing

Death And Taxes

Death and taxes – those two things are certain in life. However, with half of all marriages ending before “’til death do us part,” divorce and taxes could be something you face in your life. Just because assets are split doesn’t mean the process is simplified. High-asset couples often face a complicated tax situation and divorce can add another pile to the paperwork.

Asset Divisions

Asset division is usually the most contentious point of a divorce. People are more financially vulnerable after a marriage ends, and failure to consider tax liabilities can lead to unwanted burdens down the road. When asset division is near 50/50, the black and white numbers can look even, but is the money green in the color of life?

How can a person going through divorce maximize financial security while minimizing tax liability? No one can absolve their legal responsibility, but with the right guidance, there is a balance to be found between duty and disunity.

Capital gains taxes

Items with monetary value are usually subject to taxation when they transfer from one person to another. However, taxes can be avoided if divorce is cited as the reason for the exchange. Still, accumulated assets like mutual funds and stocks that change value over time may be subject to a capital gains tax when one ex-spouse “purchases” the account from the other.

Alimony

Payments for spousal maintenance have tax implications for both the payer and the beneficiary. Alimony payments are tax-deductible for the paying spouse and taxable for the ex receiving them. The spouse making payments must also be careful to consider the timing of payments. Paying too much too soon in alimony as well as ending payments when a child becomes an adult can trigger attention from the IRS.

Children and dependents

The spouse that is awarded primary custody of children will also be able to claim them as dependents. Unlike alimony, child support is not tax-deductible for the paying spouse, but it is possible that the larger settlement could offset the tax implications.

Good Advice Is Worth More Than Two- Cents | Get Help Today

Taxes and divorce are multifaceted issues with lifelong implications. Although you could be single soon, your tax issues should not double. When there are few certainties in life, it is important to take the time to do divorce right.

Can I still protect my finances after marriage? Pt. 2

In a recent post on our family law blog, we introduced a candid discussion about what is perhaps the lesser-known of what are both invaluable marital contracts. The postnuptial agreement can go far in protecting your financial stability.

An obvious reason why you would want a postnup is quite simple. Whoops! You and your spouse didn’t get the prenuptial agreement that you should have created. Once you realize that you forgot that protective step, the first hurdle for some in Florida marriages is to convince the spouse to move forward in co-creating a postnup.

Do you own a business that deserves protection? All kinds of people get married, including entrepreneurs. If you started and/or own a business of which you are proud and don’t want it to suffer if your marriage does, then a postnup can serve your interests.

If your spouse agrees, you can state within the contract that the business remains your asset and its earnings are also to remain yours. You could also choose to be more generous by putting a limit on the percentage of earnings during the marriage your ex would get.

Did you inherit money or other assets that should remain yours? Loved ones pass away during our lives. It is a sad reality. Those loved ones will have often put time, stress and love into their estate planning. When they leave you an inheritance, whether it be money, real estate or other valuable property, they had your best interests in mind, not necessarily the interests of your spouse.

Your postnup can clarify that an inheritance, including future inheritances, will remain your property. This can get complicated if money from the inheritance goes toward, for example, the purchase of real estate by you both as a married couple.

Work with your trusted family law attorney to address those complex aspects of your finances. Working out those details proactively can save you from the extra stress and hostility that could come from ironing out those matters amid a divorce.

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313 South Bungalow Park Avenue
Tampa,FL33609
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