Following up on a story we covered in January, Florida lawmakers have had to put together some alterations for a bill that intends to give the state's alimony laws a makeover. Florida's move is part of a larger trend that is sweeping the nation, as many states are considering initiatives to reform their spousal support laws.
]]> The alimony reform bill was originally seeking some major changes to the current law, the first of which is to add a retroactive clause that would grant paying divorcees the ability to update their spousal support agreement with regard to the new rules set by the bill.The bill would also set limits to the duration of alimony payments with further clauses that would end the spousal support agreement if the paying spouse retired or if the receiving spouse entered a new relationship.
It has been a controversial ride for the bill, with one member of the House calling the proposal "abysmal" as well as many others labeling it misogynistic. The bill still has a ways to go before being enacted as the Florida Senate and House consider the pros and cons of the bill potentially becoming law.
Witnesses at a Senate Judiciary Committee hearing told of their displeasure with current alimony laws, calling them "anti-family and anti-marriage."
The House version of the bill has retained many of the points originally in the proposal, but some new provisions have been added and some rewording has been done to reach a compromise on the legislation.
The updates allow more interpretation for judges, as they can award "long-term" alimony if the situation requires it. Rules regarding retirement would also be changed, as the paying spouse could only use retirement as a way to appeal their alimony agreement.
Source: Orlando Sentinel, "Senate committee waters down divorce-law rewrite," Kathleen Haughney, Feb. 9, 2012
]]>Members of that generation are starting to see divorce as a viable option, a thought once unheard of for their age group. That demographic, comprised of ages 50-64, is getting divorced more than twice as often as they did in 1990. The divorce rate reached 25% in 2009, compared to 10% two decades earlier.
]]> So what is driving this sudden increase in baby boomer divorce? Specifics vary from couple to couple, but the one key that is pushing this trend is that women are feeling more empowered and more drawn to an independent lifestyle than ever before.Some older couples have marital issues that don't even appear until their kids leave for college. Once these problems reach the surface, it is hard to ignore them. While previous elder women would persevere, nowadays they are filing for the split to pursue their personal goals. Other couples re-evaluate the situation with their spouse and prefer to go in a different direction.
This is happening because women are more financially stable than ever before, and this gives them the ability to leave an unfulfilling marriage and instead reach out to their friends to seek more rewarding relationships. Additionally, when women are in their 50s, it is common to reflect on them to reflect on their lives and potentially reinvent who they are as they enter the second stage of their lives.
"This is the first generation of women to say, 'I don't have to sacrifice the rest of my life in a marriage that doesn't make me happy,'" a relationship coach in Florida said. A mental health counselor - also from Florida - added to that sentiment. "Women want fulfillment at this stage of their life, they're ready to find out who they are."
Source: Palm Beach Post, "After age 50, women are divorcing at double the rate of 20 years ago," Barbara Marshall, Feb. 6, 2012
]]>Along the economic lines of marriage and divorce, evidence shows that while the recent recession has placed added strain on many American households, the divorce rate has dipped. Federal data shows that there were 3.6 divorces per 1,000 people in 2007. That rate dropped in 2009 to 3.4 divorces per 1,000 people. Further data provides a clearer picture. Between 2005 and 2009 when a state saw its unemployment rate go up, that state saw a similar decline of its divorce rate.
]]> It is an expected outcome during a recession, as couples stay together for longer due to tighter budgets and a more financially-friendly living situation. The support provided by another person in your home makes it easier to manage your fiscal situation.On the other side of the coin, when economic times are on the rise, couples are more prone to leave an unhappy situation (such as a loveless marriage) because affluence makes it easier to live on your own.
Another aspect brought up in the source article is "household formation." More households generally boost the incomes of a nation. The number of households is usually lower than the number of people in a country. These factors grow at roughly equal rates, but since 2007 household creation has ceased.
Part of this is because younger adults are having trouble finding work and supporting themselves financially - and their move is to live with their parents. This "doubles up" a household, as someone who could have their own home makes an economic decision to live in another's. But the other part is the decrease in divorce. Fewer divorces mean fewer households, and fewer households mean stagnation in the creation of said homes.
Some are saying that the economy is turning around. If so, divorce rates will probably rise and more households will be created, further stimulating the economy.
Source: Slate, "Help America: Get Divorced!" Matthew Yglesias, Jan. 31, 2012
]]>One of the few superstars in the National Basketball Association and a career Los Angeles Laker, Kobe Bryant handed over three pieces of real estate to his ex-wife during December. The property division matter began on December 14 when Vanessa Bryant had a $2.9 million home transferred to her. The former couple bought the home in 2003 and retained joint ownership until the transfer was made.
]]> Another mansion worth an estimated $4.7 million was transferred into Vanessa's name from Kobe Bryant just days before the New Year. Lastly, an estate that was recently under construction was given to Vanessa on December 15 when Kobe Bryant's agent, the previous owner, signed the property over. The value of the estate is roughly $11.2 million.While neither party is commenting on the property division involved in their divorce, it is clear that the chips are starting to fall in the Bryant split.
Even though California is a community property state, a judge hearing a divorce case can divide the stakes of ownership at his or her discretion. Many factors go into this decision so if you are considering filing for divorce, consult an experienced divorce lawyer. With proper legal representation on your side, you could maximize your stake in any communal property accumulated in your dissolved marriage.
Source: Los Angeles Times, "Kobe Bryant divorce: Three homes to Vanessa probably just a start," Michael Reicher, Jan. 23, 2012
]]>His fortune is reported to include about $600 million he received in profits from many of his films including The Passion of the Christ, and around $22.5 million worth of California real estate and other property located in Fiji.
]]> Gibson's wife will also get half of any of his money received from motion pictures in the future. The couple had seven children together. Only one of those seven children, a 12-year-old daughter, is a minor, and the couple is reportedly still battling over her custody.Gibson and his wife split up in 2006, and she filed divorced proceedings three years later. The divorce filing came close on the heels of revelations that Gibson, although still married, was having a child with Oksana Grigorieva, a musician from Russia. That relationship has also ended as Gibson and Grigorieva are contending for the custody of their now 2-year-old daughter.
Gibson's divorce has gone down as one of the largest in Hollywood history. Even though the division of assets in this case certainly is abnormally high, it highlights the need for proper legal representation when filing for divorce.
Splitting property and financial assets is not a straightforward process, but with the insider knowledge and experience of a reputable divorce lawyer, your proceedings can run smoothly and you can begin the process of moving forward with your life.
Source: Digital Journal, "No prenuptial agreement costs Gibson half of his $850 million," Nicole Byerly, Dec. 24, 2011
]]>Florida lawmakers are presenting some new bills that will revise the state's alimony laws, which would limit the duration of spousal support payments to a length of time equal to the dissolved marriage. The bills would also place a cap on alimony payments at 20% of the paying spouse's net monthly income and would also terminate alimony payments when the paying spouse reaches full retirement age, which is currently 66.
]]> One of the most important parts of the new legislation is a retroactive clause that allows those currently paying alimony to change their spousal maintenance agreement to meets the standards set by the potential law.Those who support the bills state that the modern-day household has two working spouses and that the current legislation regarding alimony does not reflect this. Critics of the bills say that there is a potential pitfall for older divorcees or those who lack educational or professional experience and cannot get gainful employment. These groups, critics say, could be left behind financially if the new legislation is passed.
In any case, similar bills were passed in both New Jersey and Massachusetts, and it may not be long before alimony laws across the nation see similar reforms. If we see such alterations and you are making spousal support payments, consult an experienced legal professional to assess your situation.
Source: Huffington Post, "Cheaper to Keep Her? Not Anymore..." Jason Marks, Jan. 3, 2012
]]>Rumors had been building quite a head of steam over the past few weeks that the celebrity couple was headed for divorce. Those rumors were only fueled by a pair of holiday headlines involving the couple, as they spent Christmas apart followed by Brand being seen sans wedding ring while walking the streets of London. Still, Brand assured people that he and Perry were happily married after an interview with Ellen Degeneres.
]]> The divorce hasn't stopped the rumor train though, as there are reports indicating that Brand was the one who filed for divorce because Perry did not want to disappoint her parents, who are evangelical Christians. Another rumor says that the couple did not have a prenuptial agreement, citing an October 2010 interview where Brand said they "ain't doing no prenup."Forbes has estimated that Katy Perry has a net worth of $44 million, while Brand is somewhere around $15 million. The couple bought a home in the Sunset Strip area of Los Angeles last summer, a piece of property that could be contentious in the divorce. Under California law, which embraces community property, Perry and Brand may have to split their property - pending the language of any prenuptial agreement.
Whatever the case may be with Perry and Brand, the assets and property involved with this multi-million-dollar couple will require careful attention by a legal professional.
Source: Huffington Post, "Katy Perry, Russell Brand Divorce: Comedian, Singer Split," Dec. 30, 2011
]]>If you thought divorce was already a complicated enough matter, just imagine the property division this elderly couple will have to go through. They were married for 77 years, have five children, 12 grandchildren, and a great grandchild, and surely have acquired quite a bit of property and assets during that time.
]]> Complicated estates, as this one appears to be, require the guidance and expertise of an experienced property lawyer to help you choose your best options when matters of property division are being discussed. For this couple, there will be retirement accounts and securities that must be considered. Retaining an attorney to mediate these delicate proceedings can greatly benefit the splitting parties.The 99-year-old man discovered some letters that outlined his 96-year-old wife's affair, and when he confronted her about it, she confessed to the decades-old infidelity. They had made it through a rough patch in the past decade when the husband temporarily moved out of their house, but it appears this secret affair will end their marriage.
The husband will now become the oldest person to ever file for divorce, with the previous record belonging to a British couple who were both 98 years of age.
Source: UK Telegraph, "99-year-old divorces wife after he discovered 1940s affair," Nick Squires, Dec. 29, 2011
]]>If various reports are true, then Kobe Bryant should have been reading our blog. The Los Angeles Times says Vanessa Bryant's mother told the paper that the NBA superstar did not enter into a prenuptial agreement in 2001 when the couple married.
]]> Kobe Bryant has played for the Los Angeles Lakers since 1996, winning five NBA championships and earning the title of the league's highest paid player. At a salary of $24.8 million - a figure that rises to an estimated $53 million when endorsement deals are considered according to Forbes - and an estimated net worth of $150 million, Bryant stands to lose quite a bit in the separation.Vanessa cited "irreconcilable differences" when she filed for divorce last Friday and the couple has been mediating the divorce since, according to the article. Legal experts believe Vanessa could end up with $75 million in the settlement.
The marriage lasted 10 years, a significant number under California divorce law that means a spouse is allowed to maintain the standard of living after the divorce.
Another factor looming over the Bryant divorce is the $4 million ring Kobe Bryant bought for his wife in 2003 shortly after being accused of sexually assaulting a woman in Eagle, Colorado. Under California law the ring may not qualify as a gift due to its high value, unless signed notation states it was indeed a gift.
Child custody and financial assets are usually major sticking points in a divorce, though the former cannot be part of a prenuptial agreement. The Bryants agreed to joint custody of their two children, according to divorce documents.
Nothing is known for sure until the prenuptial agreement is confirmed. The existence of the contract, or lack thereof, will greatly affect the financial side of this high-profile divorce.
Source: Los Angeles Times, "Experts say Bryant's wife stands to make windfall in divorce," Rick Rojas and Richard Winton, Dec. 21, 2011
]]>One or Both Parties Have Been Married Before
Often people entering second marriages have assets that they want to preserve for children from the first marriage. A prenuptial agreement can help support an estate plan that distributes one spouse's assets upon his or her death. Even if the spouse writes a will leaving certain things to a child, the surviving spouse is allowed under the law to take an "elective share" of the deceased spouse's assets. Each spouse can waive the right to an elective share in a prenuptial agreement so that the children may inherit in accordance with the parents' wishes.
One of the Parties is a Business Owner
When one of the spouses owns a business with other parties, a prenuptial agreement addressing the other spouse's rights to the shares of the business can be helpful. If a premarital agreement signifies where the business-owning spouse's shares of the business go upon his or her death, it can help prevent the other spouse from unwittingly becoming a partner in the business when the business owning spouse dies.
One of the Parties Has Disproportionate Wealth or Earning Power
If one of the parties enters the marriage with substantially more assets or earns a great deal more, both parties can benefit from a prenuptial agreement. The spouse with more assets or income may include provisions to protect what he or she brings to the union. Alternatively, the spouse with fewer resources may include clauses in the agreement that ensure that he or she will have financial security, should the marriage end.
Similarly, if one of the spouses brings significant debt to the marriage or contemplates incurring a lot of debt during the marriage, a prenup may absolve the other spouse of responsibility for the debt.
Stay-At-Home Parents
A prenuptial agreement can help in situations where one of the spouses anticipates leaving the workforce to raise the couple's children. The couple can decide what kind of financial settlement the stay-at-home parent will receive to ensure that he or she is financially secure in exchange for sacrificing career advancement and earning power from being out of the workforce while parenting.
Couples sign prenuptial agreements for a variety of reasons and signing such an agreement does not imply that the couple is betting that the marriage will fail. As unromantic as it may seem to spell out where the money will go when the marriage is over, doing so before the marriage begins is often a wise decision in the long run.
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