Showing posts with label Property Division. Show all posts
Showing posts with label Property Division. Show all posts

Destination Divorce

We have long had destination weddings.  Why not destination divorce?  Zagat has published a guide to the best restaurants for dumping your mate, as I have reported here two years ago.  There are already restaurants you can visit to dine and dump your spouse, so why can't there be destination resorts or hotels where you can go to make that dumping official?

It's not so easy just to head to the beach, or somewhere exotic, to get an actual legal divorce, you say? Well, not only are some enterprising travel businesses trying to sell the idea of divorce vacations, in Mexico and elsewhere, but there is now even, in the Netherlands, what is called the Divorce Hotel (Hotelscheiden). If you are Dutch, you can actually show up at a five-star hotel for about three days with your spouse and mediate your divorce settlement, spending potentially far less time and money on the trip and the luxurious hotel accommodations than you might otherwise have spent on legal fees back home.

Or so they say.  So far, the new idea has only had a small number of takers, and it is of course only available to Dutch citizens.  Take a look at the Divorce Hotel's website and video.


For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Madonna Divorce Settlement - It'll Be A Big "Payout" to Guy Ritchie

News was just released of the Madonna divorce settlement, under which Guy Ritchie will take around $76 Million as his part of the couple's marital assets division. For more, see the Guardian's report, Madonna divorce deal 'worth £50m' to husband Guy Ritchie | guardian.co.uk, and look at People Magazine's web story, Rep: Madonna to Pay Guy Ritchie $76 Million in Divorce Settlement - People.com.

This will be one of the biggest "payouts" in celebrity cases, and will probably be the biggest one going from a high-earning female star to her husband. Also, according to some reports, it is believed the two parents will share residence of their children. Apparently, there had been hope the divorce would be settled amicably, but that was not really the case, as John Bolch points out on his blog here: Family Lore: Not So Amicable.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

YouTube Divorce - A Failed Strategy

To follow up on the YouTube Divorce of Tricia Walsh-Smith, which I discussed here this past April (after which Tricia continued her tirades and crazy antics on YouTube, all of which I ignored), it appears that Tricia's adventurous approach to fighting her contested divorce has not helped her one bit.

Back in April, I thought Tricia had the craziness out of her system, as she appeared to have gotten smart after her first YouTube video by hiring a good lawyer who would prevent her from using YouTube again. But I was wrong. She apparently either ignored good advice from her lawyers (most likely) or she didn't get any. Thus she persisted in smearing her husband in further YouTube videos.

Now the judge has found that Tricia conducted a "calculated and callous campaign to embarrass and humiliate her husband and his daughters." The judge both ordered her to leave the New York apartment from which she complained on the first video that her husband had tried to evict her, and also refused to void her prenuptial agreement as she had sought. See Family Lore: Walsh-Smith: "Calculated and callous" .

If you really feel like airing dirty laundry in public, you should consult a good lawyer first. But then you should follow that good lawyer's advice, even though the advice will almost always be: No, don't do it. Keep it private.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Christie Brinkley Divorce - Winner Takes All?

The Christie Brinkley divorce case has just been settled, and Christie will walk away with sole custody of the children and all but $2 million in cash, from assets estimated to be worth around $60 million, including 18 properties in the Hamptons, all of which she will keep. For more see the latest stories from People Magazine, and The New York Post.

Looks like Christie won big, after choosing to insist on a public trial. But as Dahlia Lithwick said at Slate.com last week("Le Trainwreck-The Christie Brinkley divorce is a lesson in how not to cure a broken heart" July 2, 2008, Slate.com), her win may have come at a big price. As Lithwick put it:

Brinkley is about to become another victim of the fiction that you can use the tabloids more efficiently than they can use you. Won't happen. Brinkley, Cook, and their two kids will get spit out the other end of this trial, and the only real winners will be the chesty adulteresses—each of whom will have her own reality show/recording contract/clothing label by the end of the summer. I have watched enough nasty custody battles to know that if you really want your children to know the unfiltered truth, you sit down with them (when they are 18 or 21) and tell it to them. You don't run it through the double noise machine of a four-week custody trial and the 24-hour tabloid press. Whatever it is about divorce that sets the parties to behaving like children..., it would be good of them to get out of the way of the real children—whose best interests are meant to be the polestar of any custody fight. If raising children in the media spotlight isn't its own form of child abuse, subjecting them to four weeks of Daddy's dirty laundry surely is. If you can name me one celebrity who won her celebrity divorce, I'll name you a kid who lost one.

I'm not sure I completely buy her argument, but it's got some merit. I do think it is an open question how much kids really need to be sheltered from their parents' mistakes. And especially when they have been "raised in the media spotlight" how successful can we be in sheltering them? It may be that these children already knew most, if not all, of what was going on, and no further damage was done by the public airing of dad's dirty laundry. But there are those who would be in a position to know what was in the best interests of those children, including the lawyer for the children. Lithwick's best point is that the lawyer for the children wanted to close the trial, yet Christie insisted on going forward with her public trial.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.


NEW YORK POST ARTICLE EXCERPT:

....After an intense, all-night negotiation at a Long Island hotel, the pair agreed that she would get full custody of their two children, final parental decision-making power and ownership of the large number of properties they had amassed during their 10-year marriage.

In the end, all Cook ended up with was the cash - most of which will go to pay his legal expenses, sources said.

Brinkley agreed to pay him a flat amount of $2.1 million - a drop in the bucket when compared to her fortune, which a source close to her estimated to be around $60 million.

"It's to me a very bittersweet moment because it really is the death of a marriage. It's also a new start for all of us," Brinkley said after the settlement was announced in Suffolk County Court in Central Islip. "I'm very pleased with the results today. I was here fighting for custody."

Following five bruising days in court, the two sides holed up at a Marriott in Islandia until the wee hours of the morning hammering out the final details of the settlement. They reached an agreement at 6:15 a.m.

A little more than three hours later, the 54-year-old stunner and her 49-year-old architect husband appeared in court to before Judge Mark Cohen to announce a deal.

....

Divorcing, But Still Living Together, in a Bad Housing Market

There's a great article in today's Boston Globe Sunday Magazine, by Lisa Prevost, about the effect of the declining housing market, and the credit squeeze, on divorcing couples, many of whom are now forced to stay together longer than they may have wanted or intended: Two Exes, One Roof - The Boston Globe ("Two Exes, One Roof - What happens when a divorcing couple meet a slow housing market? Usually, it's not pretty.") As you can see from the excerpt below, I am one of the attorneys quoted in the article.

"DESPERATE" IS AN APT DESCRIPTION FOR ANY NUMBER of homeowner scenarios these days, as declining home values and tighter credit continue to squeeze sellers. When it comes to divorcing couples, however, the steep drop-off in housing sales is making some bad situations truly awful. Dramas are playing out across the region as couples who no longer want to stay together, but can't afford to live apart, are winding up prisoners in their own homes. Either houserich and cash-poor, or simply overextended on all fronts, these couples are retreating to the far corners of their houses as they await the buyer who will free them.

Family law attorneys, mediators, and real estate professionals say that while this scenario isn't necessarily new, its rising incidence is very much a sign of the times. Divorcing couples who borrowed heavily against their homes when values were soaring several years back are now scratching for enough equity to cover their mortgage, lawyer bills, and a fresh start. The financial strain is forcing more of them to stay put until the house sells, a situation that is almost always very uncomfortable.

"In a number of my cases, couples are sharing houses but using separate bedrooms, and it remains to be seen what impact all of this will have on the children," says David A. Hoffman, an attorney, mediator, and founder of the Boston Law Collaborative.

....

Barbara Shapiro, a certified divorce financial analyst and vice president of HMS Financial Group in Dedham, agrees that the sliding market is forcing more divorcing couples to remain housemates. The cases she sees typically fall into one of two categories. "You have the couple that's already divorced and had decided they were going to split the house once it's sold. And they can't sell it, or it doesn't make sense to sell it. So they're scrambling to adjust," she says. "And then there are people who are saying, 'We can't get divorced - we can't afford it.'"

The latter sentiment turned up unexpectedly in a divorce case handled last year by Steven Ballard, a lawyer in Worcester and Wellesley. He was representing a woman in particularly bleak circumstances: She had a restraining order against her husband, who had moved back in with his mother. The wife worked but couldn't cover the mortgage payments and expenses on their house without her husband's income. Because they owed more than the house was worth, foreclosure loomed as a possibility. Still, Ballard didn't see taking the husband back as an option. Much to his dismay, his client did. The couple reconciled. "I'd seen financial problems lead to divorce," Ballard says, "but I hadn't seen it save a marriage."

....

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

14 Common Financial Mistakes People Make and 14 Rules Most Should Follow Most of the Time

I have handled lots of divorces, reviewed lots of financial statements, and helped clients manage the difficult financial negotiations and restructurings attendant upon marital dissolution. I am often surprised by what I see intelligent people do, or not do, with their money. The following are 14 of the most common financial mistakes I have found that people make. I have had clients who are in poverty and others who are extremely wealthy. But these 14 mistakes are related to my experience with the majority of people for whom I have worked - people who are, like most of us, somewhere in between those two financial extremes.

There are other kinds of "mistakes" which are made in the course of divorce - and by this, I mean there are settlement decisions, which, at least from the point of view of personal finance, seem not efficient or optimal. Divorce settlements sometimes lead to some objectively bad financial moves that are, however, quite unavoidable, as they are often related to non-financial considerations or other exigencies. I am not speaking about those kinds of "mistakes" in this post, but only about general financial management mistakes I have found couples and families to have made long before they were at the point of divorce. (Lawyerly Disclaimer: These are general observations, and of course not offered as specific advice to anyone in particular. I am your unpaid blogger, not your attorney.)

14 Common Financial Mistakes People Make

1) Have no emergency or "rainy day" fund.
2) Buy a house they cannot afford.
3) Don't save enough for retirement.
4) Consult "financial advisers" from institutions such as American Express, and actually take their advice.
5) Buy whole life insurance rather than term life insurance.
6) Take out second mortgage or equity line on their home for consumer purchases.
7) Buy annuities.
8) Pay down house or other lower interest rate debts before higher interest rate debts.
9) Buy individual stocks, or day trade, in any area outside personal area of primary expertise.
10) Buy a timeshare.
11) Borrow against retirement funds, or liquidate retirement funds.
12) Go into business, or purchase property, together with a relative other than a spouse.
13) If in serious credit card debt, pay a "debt counselor" or "credit counselor" but never consult a good bankruptcy lawyer.
14) Use credit cards to pay for everything, and keep a balance on which they pay high interest.


OK, now for my 14 Rules. These are general rules which are derived from, and correspond to, the 14 Common Mistakes above. These are rules that I believe most people should follow most of the time. If you are super wealthy or destitute, obviously these do not apply to you. These are just rules, and there are exceptions to rules. Disclaimer: as general rules, these observations of mine, of course, do not constitute specific advice for any individual. As I say in these rules themselves, all should do research themselves and take charge of their own financial future, and if possible, seek specific advice from a fiduciary who can look at their particular situations, see the big picture, and give advice tailored to their particular situations.

14 Rules Most Should Follow Most of the Time

1) Maintain an emergency fund, in money market funds, conservative bond funds, or treasury bills, that is highly liquid, and outside retirement, equal to six months of your regular living expenses.


2) Buy a house, with at least 20 percent down, only if it is in a neighborhood that is a good long-term place for you and your family to live, only if you will be living there in that particular home for at least five years, and only if it costs half, or less than half, as much as the biggest house "you can afford," as calculated by the lender.
Be conservative. Your home is always more expensive, and in more ways than you think, than you initially realize. You need a cushion so you can save, and you should save not just in one piece of real estate, but in other types of investments, such as stock mutual funds. Do not be "house poor" like so many people are.

3) Save at least 20 percent of your gross income in retirement - through IRAs, 401Ks, employer pension funds, etc. Obviously, take full advantage of 401Ks especially when there is employer matching.

4) If you are getting financial advice, be sure that you are using a fiduciary, not a sales person working on commissions. Do research yourself, and find a fee-only financial adviser who is a fiduciary, and will work only for you, or do it yourself. If you can't find that kind of financial adviser - many independent, fee-only financial advisers will only work on behalf of individuals with significant assets, of $1 million or more - consult a good lawyer or just do it yourself. See Can you trust your financial adviser? By Liz Pulliam Weston- MSN Money.

5) If you have children, buy level term life insurance for a term that will extend no later than when your youngest child is 25. Don't buy any other life insurance. For the vast majority of people, whole life insurance is a bad idea; in my experience, most people who have it shouldn't. They would almost always be better off investing instead in stocks and bonds through mutual funds. I am often surprised at what I see. For example, I had a client who together with his spouse had paid around $1,000 a year for only $15,000 of life insurance in their children's names to cover the children's burial expenses! Of course this horrible idea had been sold to that client by a sleazy "financial adviser" working on commission. That money would have bought that client at least an extra million dollars of term life insurance. If you really like insurance, and depending on your circumstances, after taking care of term life insurance needs, you should instead buy disability insurance. In fact, for many, that will be an even more important move than buying term life insurance. If you don't have children, or other dependents, you should only think about disability insurance.

6) If you can't afford to pay for consumer purchases, including new cars, boats, vacations, or other things, from your current regular streams of income, do not buy them. Do not take out a second loan on your home to do so. See Rule 2 and Rule 14.

7) Don't buy annuities. Only rarely are these worthwhile. If provided by an employer, fine, but don't buy them. These are usually bought because of sales commissions. See Rule 4. Instead, invest wisely, and diversify, in mutual funds for the long haul. Buy and hold. I favor index funds with low expenses, such as Vanguard funds. One example: Lots in large cap (S&P 500), some in small and midcap, and some in international. See again Rule 3.

8) Pay down highest interest rate debts, such as credit cards, first before you pay down other debts. You should always, of course, make timely payments on your loans when due, but do not pay extra to reduce the principal debt if there are other debts you have with higher interest rates. However, if you are a sure candidate for bankruptcy, you should sometimes in fact stop paying high interest unsecured debts, like credit cards, entirely. But if you think that might be the case, see a bankruptcy lawyer first before doing this. See Rule 13.

9) If you have lots of money to invest - that is, if you still have money left over after you have invested 20 percent or more of your gross income in retirement funds - you may, if you insist, invest just a small portion of your extra money in individual stocks, but only in companies in an industry about which you have more knowledge than anything else, and never the company you work for. See Rule 3 and Rule 7. I have seen too many engineers who have been burned after overconfidently, aggressively and foolishly gambling on high tech stocks or other high-risk, high-return investments. If your company provides its own stock, or stock options as benefits, fine, but if and when possible, divest as much as possible, and diversify your investments into other holdings. And generally, unless you are really as smart as Warren Buffett, you should be primarily investing in solid mutual funds rather than trying to beat the odds by picking your own individual stocks.

10) Don't buy a timeshare. Pay as you go for vacations. Ridiculous timeshares are, in my experience, the asset divorcing parties most often want the other to take, as by the time of their divorce, they often realize that they should never have bought them. And don't buy a second home, unless you can afford it - that is, you have regularly saved enough for retirement, and are continuing to save 20 percent of your gross income for retirement, have no need to save for any child's future college expenses (you have enough saved in a 529 plan or otherwise to pay for your children's college costs) and still have money left over.

11) If tempted to raid your retirement fund, which will lead to absurd penalties, find any way you can to avoid this. If you can't cut your expenses or find a way to pay for the necessary things in another way, then come up with the money by temporarily halting your present contributions to retirement (preferable), or borrowing against your retirement (if it absolutely has to be done, this is better than taking an early withdrawal, but this is still bad). This should usually not be a problem if you follow Rule 1.

12) Go into business in one of the following ways only: a) by yourself, b) with others who are not relatives - but get a detailed, written agreement- or c) not at all. When buying a house or other property that you will live in, either do this by yourself, with your spouse - yes, still risky, but this is what marriage is about - or not at all.

13) If you have a lot of high interest, unsecured debt, consult a bankruptcy lawyer to see if you can and should go bankrupt, and if not, how best to get rid of the debt you have. Again, pay down the highest interest rate debt first. Usually you will want to maintain good credit and maximize your credit score, but sometimes you should default on high interest, unsecured debt. Get out of high interest rate debts one way or another, usually by paying them off as soon as possible, unless it is feasible and appropriate for you to avoid paying back the debt, through bankruptcy or default, after consulting a bankruptcy attorney. Often bankruptcy will be a better long-term move, and your credit may actually improve in a short period of time after you eliminate outrageous debts and make a financial recovery. There are many credit counselors who do nothing for you, and just make money as the middleman between you and the horrible vultures that are known as credit card companies.

14) Buy in cash, or use your bank debit card to make purchases, and pay off credit card balances in full each month. Can't or don't want to pay for it now? Then don't buy it. See Rule 6.


******
For information about personal finance, especially in the context of divorce and family law, see some links to a few good websites and financial calculators on the links page of my law firm website.

Divorce By YouTube

Wow! Recently we had a disgruntled husband in Vermont airing dirty divorce laundry on his blog (see my posts here and there). Now a disgruntled wife in New York has broadcast her grievances on YouTube (see below). This YouTube video has been widely viewed, and has been widely reported and blogged about already. See Family Lore and New York Divorce Report for some good posts on this.



This YouTube woman, named Tricia, reminds me of Heather Mills in many ways. Tricia is the much younger wife of a wealthy man in a bitter divorce battle, and she happens to be English; furthermore, she appears to be somewhat unhinged, and judging from this video, she would probably make a very bad witness in court, just like Heather Mills apparently did.

But one difference is Heather Mills started out with lawyers, then bumbled about in an apparent, misguided attempt to try her case in the media, and finally ended up handling her case herself, while still running to the media to whine. But this YouTube woman appears first to have started out by trying her case on YouTube, but then now apparently has the good sense to have hired high-profile New York divorce attorney, Raoul Felder, who represents her now but not until after she made this video.

Now that's a better ordered approach, I'd say. Maybe Heather should have gotten it all out of her system with her crazy antics in public, if she had to, and then hired a good army of lawyers in London, and not the other way around.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

First Circuit Court of Appeals Rules on QDROs

For analysis of a recent decision by the U.S. First Circuit Court of Appeals in Boston on qualified domestic relations orders (QDROs), see the recent post Boston ERISA Law Blog: Some Quirks About QDROs. The post mainly discusses the federal appellate court's recent ruling that the state probate courts, not just the federal courts, have jurisdiction to determine whether a particular order is a QDRO. As Stephen D. Rosenberg, a specialist in ERISA law, put it in that blog post, "the First Circuit emphasized that the state probate court has jurisdiction to determine whether a particular order qualifies as a QDRO and to thereafter enforce it, and that this particular issue does not have to be severed off from a particular probate court/divorce action and brought to federal court." For more on this, please read his excellent post.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Will Heather Mills Need A Dog?

If you still haven't gotten enough of the Paul McCartney-Heather Mills divorce story, or missed the recent news from here (long and short) and elsewhere, there are still more places to explore. (I'm sorry, I'm afflicted with Anglophilia, with a touch of Beatlemania, and Paul was my fave of the Fab Four. I do think this will be my last post on the topic - still, don't hold me to that.)

First Jeanne Hannah at Updates in Michigan Family Law has a great summary and analysis of the judgment, at least from where I sit on the American side of the Atlantic. Then, from over there where it's all happened, there's Family Law Week blog: Macca v Mucca, a list of, and links to, British family law blog posts on the topic. But that list seemed to miss the following English post, DivorceSolicitor: Heather Mills should buy a dog, which makes the rather amusing point that Heather may need a dog to keep her company now. The dog would give her unconditional love, Divorce Solicitor says, and that's something Heather may have a hard time finding right now. You know, money can't buy me love...

I find it interesting that nearly all of these recent commentaries I have been reading have failed to mention that Heather Mills does not have sole custody of four-year-old daughter Beatrice, as many people are likely to assume to be the case. Beatrice will instead be jointly parented by both Sir Paul McCartney and Heather Mills in a joint custody arrangement. I wonder if Heather Mills' previous public rants, including at least one in which she discussed her own suicidal thoughts, are the reason for this custody arrangement, which was apparently agreed upon before this past week's contested trial, as it was not obviously in contention then.

I for one think it is kind of cool that what is very likely to be the last child of a Beatle will grow up with parents in a joint custody arrangement. If Beatrice has to be a child of divorce, I think it is great she will at least get the benefit of having Sir Paul McCartney as a very active father in her life.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Mills McCartney Judgment Now Published in Full

As just reported by the British family law blog Pink Tape (Mills McCartney Award Announced - and Judgment published in full « Pink Tape), the McCartney-Mills divorce judgment has now been published in full, after Heather Mills' application for leave to appeal (in order precisely to prevent the entire judgment from being published) was denied. The entire judgment can be found here. See the video below, showing Heather Mills' comments to the media immediately upon leaving court yesterday, and before the full judgment was published after she lost her appeal this morning. Then read the comments from the Pink Tape blog by British barrister Lucy Reed at the end of this post.



Heather here alternates between, on the one hand, trying to convince us she is quite satisfied with the judgment, and on the other hand, criticizing the court system, the "club" of lawyers she faced, and the judge, all of whom were against her but begrudgingly gave her significant assets only because they had to. But she went back and forth, and couldn't consistently hide her displeasure. At one point she even complained that the (presumably inadequate) 35,000 pounds per year for support or maintenance she will get for daughter Beatrice (this 35,000 pounds, or roughly $70,000 a year, does not include the nanny and school fees, which also must be paid by Paul) will mean Beatrice will have to travel "B Class" while her father travels "A Class." Blah, blah, blah...

Heather said she wanted to appeal the publication of the entire judgment and first said something vague about how she was afraid publication of the entire judgment would be done in a way designed to make her look like she had been unsuccessful. But then, after somebody (her sister?) said something in her ear, Heather then explained that she was appealing the publication of the entire judgment for reasons of privacy, on account of her daughter. Oh, but, yes, I'm satisfied with the terms of the judgment itself, and I'm not appealing that, Heather kept stating.

Hmmm...Well, did you think you did well, Heather, or not?

Now that I have quickly read the judgment, I think I know why she didn't want it published, and I don't think it has anything to do with privacy for her daughter. The judge seems to describe Heather herself, and her evidence, as less than credible. Well, if she performed in court the way she spoke to the media here, I can see why the court found as it did.

Heather probably should have forked over the six hundred thousand pounds she says her former law firm wanted from her to represent her at the six-day hearing, rather than go it alone, as she did, and as she unconvincingly urges others to do. Perhaps she would then have been able to convince the court Paul McCartney is worth eight-hundred million pounds, rather than just four hundred million, and perhaps her other evidence would have seemed more believable. Maybe she would have walked away with many millions more, and wouldn't now be complaining about her daughter's having to travel B Class. Who knows? Anyway, this is fascinating stuff.


EXCERPTS FROM THE PINK TAPE BLOG:
"UPDATE: lunchtime Tues. Heather Mills McCartney’s application for leave to appeal has been rejected by a 2 judge Court of Appeal. The judgment has been published in full - I have not had time to read it as I have to rush out and deal with more pressing matters (yes such things do exist), but you can find the pdf document here. All I can tell you (and make of this what you will) is that the word ‘unreasonable’ appears 16 times, ‘conduct’ a staggering 108, ‘contribution’ 19 times, ‘exaggerated’ 5 times, and ‘ridiculous’ once. ‘Husband’s case’ appears 8 times, whilst ‘wife’s case’ appears 20 - perhaps an indicator of a certain amount of judicial appeal-proofing going on? ‘evidence’ raises 76 hits, the one which caught my eye being at pa 16 where Heather’s evidence is described as inconsistent, inaccurate, less than candid and Heather as a less than impressive witness. Oops."


For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Heather Mills to Get £24.3 Million in Assets

Heather Mills will get £24.3 million in assets (approximately 50 million U.S. dollars), per judgment in her divorce with Paul McCartney. See Family Lore: Money (That's What I Want), and The Times article of today. This judgment may not be the end of the matter, however.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Divorce and Estate Planning

All individuals who happen to be going through divorce should get an estate planning attorney to prepare for the future by helping them to plan and draft some basic estate planning documents, usually at or near the end of the divorce process. In fact, it is best to see an estate planning attorney before the divorce judgment becomes final.

For an excellent primer on this issue, please read the following series of articles from Leanna Hamill, a Massachusetts estate planning and elder law attorney from Hingham, and author of the Massachusetts Estate Planning and Elder Law Blog:

Estate Planning and Divorce - Part 1
Estate Planning and Divorce - Part 2: Post Divorce, and
Estate Planning and Divorce - Tips on Trusts for the Family Law Attorney.

Every individual's situation is different, but all people going through a divorce will have lots of reasons to hire an estate planning attorney to do an estate planning do-over, or to make a first-time visit if they have yet to do any estate planning. And more generally, most individuals with any kind of family law issues or disputes, whether in divorce or not, would be wise to get a good estate planning attorney, one who concentrates either primarily or exclusively in that area, to go over their particular situations, and provide the appropriate menu of options available to them. Fee arrangements for estate planning are more like those of criminal law than those of family law, in that flat-fee, rather than hourly billing, is the norm.

I am often asked by my clients if I can prepare wills, trusts, health care proxies, and other estate planning documents for them. As a licensed Massachusetts attorney, I can in fact do all of these things, and I have taken courses both in law school and outside of law school on estate planning and elder law, but I prefer not to take on even the most basic of such cases. Estate planning is a distinct area of practice, as are my primary areas of practice which are both in the litigation arena - divorce and family law, and criminal law. I choose, as do most attorneys, to concentrate in a few areas of the law so that I can do the best job possible. Concentrating or specializing in one or more areas of practice leads to more effectiveness and efficiency in service as it leads to greater expertise in those areas.

Many other areas of the law often intersect with family law, and that is one of the reasons I like family law. However, I often find it best, or even necessary, to refer cases or issues in other fields to practitioners in those separate fields. Sometimes, for example, I find a need to refer clients directly to attorneys who concentrate in matters of trusts and estates, in order to handle such matters as complicated trusts, education trusts, special needs trusts, or other matters. In many other cases, clients already have other attorneys for estate planning and I have found it a pleasure to work with them on behalf of the client's various needs when they are related in some way.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Supreme Court to Hear QDRO Case

The US Supreme Court has accepted a case involving a question regarding Qualified Domestic Relations Orders (QDROs). In the case from the Fifth Circuit Court of Appeals, the Supreme Court granted cert on the following question only: "Was the Fifth Circuit correct in concluding that ERISA’s Qualified Domestic Relations Order provision, 29 U.S.C. § 1056(d)(3)(B)(i), is the only valid way a divorcing spouse can waive her right to receive her ex-husband’s pension benefits under ERISA?"

For more information, see the SCOTUS Blog's story here, the Boston ERISA and Insurance Litigation Blog's post here and the Iowa Divorce and Family Law Blog's post here.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

Shaq O'Neal Divorce Reveals He's A Big Spender

I just saw this post by Jeffrey Lalloway at the California Divorce and Family Law Blog: Shaq's Expenses Revealed In Divorce Court...$26,560 a month in babysitters??.

Miami Heat center Shaq O'Neal, in the middle of a divorce with his wife of five years, Shaunie, has reported expenses of $1.3 million a month, including $26,560 per month just for babysitters (Shaq and Shaunie have four kids together and two kids of previous relationships), according to the blog which cites the following Miami CBS4 report: cbs4.com - Shaq's Expenses Revealed In Divorce Court.

Here's the complete list of O'Neal's monthly expenses, as reported in the CBS4 article and in the California Divorce and Family Law Blog:

• $156,116 on mortgages.
• $110,505 on vacations.
• $60,417 on gifts.
• $26,560 on baby-sitters.
• $24,300 on gasoline.
• $22,190 on maids.
• $17,220 on clothes.
• $12,775 on food.
And the tax man gets about $500,000 a month in income taxes.

At that rate of spending, and even with Shaq's $20 million yearly income (an income second among NBA players only to our own Kevin Garnett of the Boston Celtics) there doesn't seem to be enough room in his budget for savings and investment. I've heard it said about us Americans that the answer to the question "What is your cost of living?" is exactly the same as the answer to the question "How much do you make?" Certainly seems to be true for Shaq.

At that rate of spending, he only has about $4 million left each year to invest or save (not including that which he saves through his mortgage payments).

Aren't you feeling sorry for him now?

For information about Massachusetts divorce and family law, see the Massachusetts Divorce & Family Law Page of my law firm website.

In Search of the Kinder and Gentler Divorce: Mediation and Collaborative Divorce vs. "Traditional" Divorce

What is the best way to get a divorce? It appears there are more options these days than ever. What used to be called simply "divorce" is now being labeled "traditional divorce" as purportedly new methods of resolving divorce disputes are increasingly being promoted, through marketing efforts which are surfacing throughout the media.

Everywhere I turn, I am reading articles about what advocates tout as alternatives to "traditional divorce." Most of these articles appear to be warmed-over press releases from proponents of the purportedly new methods of divorce, including mediation (which is not really new but which has received a great deal of recent attention in the media), and that latest flavor of the month, which is known as "collaborative law" or "collaborative divorce." Mediation and collaborative law may be the right choice for some divorcing individuals, but they will definitely be the wrong choice for many others.

On December 19, the following article, by Associated Press writer David Crary, appeared everywhere, or at least in two of the many reading spaces I regularly visit, namely, the Worcester Telegram and Gazette - Worcester Telegram & Gazette: "Divorce doesn’t have to mean going to war in court; Collaborative approach or mediation replacing more costly litigation," By David Crary, Associated Press, December 19, 2007 - and Findlaw.com. This Associated Press article is a great place to start if you want to know something about collaborative law and particularly if you want to know how its champions are promoting it.

To get a more balanced perspective, however, you should also read Caryn Tamber's recent article in the Maryland legal periodical, the Maryland Daily Record, Maryland Daily Record: "Proponents love it, but traditional divorce lawyers see little use for ‘collaborative divorce’" by Caryn Tamber, which examines some of the most troubling problems, both practical and ethical, with the collaborative law method, and projects a helpful spotlight on the inflated claims and hype surrounding collaborative law.

Last week, when I first saw the AP article in the online version of the Worcester Telegram and Gazette, I also did the accompanying online collaborative law poll on that website (see below). This poll had only a small sample of respondents (60 including me) at the time I did the poll to get the results you see here. Nevertheless, these results, which show far less faith in the success of collaborative law than the accompanying article does, may be closer to the truth than the article is. Of course, neither the poll nor the article is scientific, and neither provides the answer to the question of whether collaborative law will be successful in any given case.



"STAY OUT OF COURT!" EVERYBODY SAYS

Most people, including even "traditional" divorce litigators like me, are fond of saying it is best to resolve differences and settle divorces "out of court." Indeed, I think lawyers are the most likely to want to avoid personally ending up in a strange court, just as doctors are perhaps most likely to fear landing in a strange hospital, because lawyers and doctors are most aware of all the things that can and do go wrong in their respective arenas.

Yes, it's true that we should try to stay out of court whenever possible. But what do we mean when we say that? It's not as simple as is often imagined. Divorce is a legal process that, at least to some degree, must be handled in court. At a minimum, there must be approval by the court of the divorce agreement of the parties, after mediation or some other process, whether involving litigation or not, has led to such an agreement. Furthermore, divorce is also a process that almost always requires some form of negotiating, involving compromise and mediation of some sort, and ultimately settlement, whether it is through "traditional divorce" or "collaborative divorce" or "mediation" and whether issues are hotly contested and litigated or not.

It is the rare case on which nothing is agreed upon and everything is determined by a trial. In fact, it is the rare case, even among the hotly litigated ones, that results in any trial at all. However, most divorce cases actually do end up "in court" for at least one or two contested hearings, before final resolution of the divorce is reached by agreement of the parties.

I always ask prospective clients who have come to me if they have attempted family counseling to save their marriage, and if they have attempted mediation or other "outside of court" methods to resolve their marital disputes. Most of them say either that they have indeed already done so, and it was a waste of time and money,or that they have not done so, as it would have been a waste of time and money, or that the other party would not agree to do so.

As my law practice does not offer mediation services, but only "traditional" divorce, I am more likely to encounter people who have the more difficult problems that require some litigation of various issues in court. Most people who come to see me are indeed in that very uncomfortable, unfortunate situation - that is, they will need to attend one or more hearings in court, even though they will most likely never need a full-blown trial.

It is great when people can be mature and "divorce well," but that is not often the case. To understand why, you must simply consider that divorce for most is inherently a deeply personal, painful, and unwelcome disruption. Even "no-fault" divorce is described as an "irretrievable breakdown of the marriage" to use the Massachusetts legal language, as divorce involves the severing of a most important relationship that affects all aspects of a married person's life. Consequently, there is certainly some truth to the cliché "criminal defense lawyers handle bad people on their best behavior, and divorce lawyers handle good people on their worst behavior." (I should know, as in my practice, I handle both criminal defense and family law. But I would actually amend that cliché as follows: Divorce lawyers handle all kinds of people on their worst behavior.)

WHEN MEDIATION & COLLABORATIVE DIVORCE WON'T WORK

And, despite what you may read to the contrary in some of the articles on this subject, it is not only the toughest cases - involving mental health issues or accusations of abuse - in which parties to divorce are unsuitable for collaborative divorce or mediation. All it takes is for one of the two parties to a divorce to be very angry, confused, or unreasonable, and you have a situation in which the so-called "kinder and gentler" means of divorce (mediation and collaborative divorce) either won't work, or will actually both not work and cost litigants more time and money than "traditional divorce" as the parties will ultimately have to use both methods, one followed by the other.

And what is so inherently expensive and necessarily vexatious about the traditional divorce process, anyway? In Massachusetts, the divorce procedure, for contested divorce, has some built-in provisions to encourage parties to resolve their disputes "out of court": there is a six-month waiting period after the filing of a contested action for divorce before one may mark the case for a pretrial conference.

Before the pretrial conference, at which a trial date is set if the case has still not been settled by that point, there must be a four-way meeting, in which both parties and their attorneys are required to sit down and try to resolve every issue in the divorce. At any point in the litigation of a contested divorce case, the parties and their attorneys may decide to have a four-way meeting even when not required, or otherwise resolve their divorce through negotiation between the attorneys, and settle the case, much as would a couple through mediation or collaborative law.

In fact, in many of my divorce cases, which are often litigated to some degree as contested cases in court, at least one party frequently chooses not to do complete discovery, or otherwise chooses not to do all that is presumed to be required in litigated cases, either out of the belief that there is full knowledge and disclosure of relevant information needed about the other party, or on account of some degree of trust of the other side regarding basic issues or information. That is so even though there may nonetheless be one or two difficult issues to resolve, and thus there remains a need for the pressure of litigation, and the uncertainties of a pending trial, to help bring the other side to the negotiating table before any trial actually takes place.

In collaborative law, the lawyers agree at the outset not to litigate, and voluntarily exchange information, rather than engage in formal discovery, all with a view toward reaching an agreement that will preclude the need for litigation in court. But many times, such cooperation and efficiency is similarly possible between parties and their attorneys in traditional divorce cases, in which a contested divorce complaint is pending in court. In my experience, a lot of these so-called traditional divorce cases end up being as cheap or cheaper than they would be if handled by lawyers formally trained in collaborative law, and are often conducted in a much similar manner, although without the built-in difficulties of formally renouncing many of the normal tools of the attorney's trade, as in collaborative law.

There are so many variables in divorces, and really, any good divorce lawyer should be able to handle divorce in a collaborative law manner, or in a hotly litigated manner, as the case may require. That is just good lawyering, in my view. I am indeed very impressed with some of those who are highly skilled in mediation and collaborative law, as the more tools in an attorney's toolkit, the better. And on those occasions when my prospective clients do seem to be good prospects for mediation (but not collaborative law, which I think can be performed quite well by me or by any other good "traditional" divorce lawyer), I send them to a good divorce lawyer who practices mediation.

WHATEVER YOU DO, CONSULT A DIVORCE LAWYER FIRST

I would only say, at the risk of sounding self-serving, that one should avoid divorce mediators who are not lawyers. In my experience, such mediators have often misled clients in applying the law to the facts of their cases. I have had more than one case in which a psychologist acting as a mediator helped divorcing individuals to reach an agreement, only to have one of the parties discover after going to an attorney (like me) "just to check over the agreement" that the agreement had incorrectly calculated child support, or otherwise had included provisions which were really not "fair" to one of the parties, as these provisions would not have been negotiated by equally informed and equipped attorneys knowledgeable about the law and how it is applied in the courts by judges. Then the parties had to revise their agreements, or start over in their negotiations, with a competent mediator, or with two "traditional" lawyers.

Lest you assume I am self-serving to my profession in this stated preference for lawyers as mediators, I should add that I often express a bias in favor of mental health professionals over lawyers when suggesting or choosing guardians ad litem, to investigate issues of custody and parenting time, because I have found mental health professionals are more likely to be competent in that particular task, and for the same reason - i.e., their training has prepared them for it. Divorce is a legal process, involving the law of divorce. Divorce mediators should be lawyers.

Those who are contemplating a divorce should know that whether they ultimately decide they need a mediator, a collaborative lawyer, or a traditional lawyer, for their divorce, they should always pick a lawyer who is experienced and knowledgeable in the area of divorce law, and preferably one who has had recent experience in the family court where their divorce case will be heard, no matter how simple or complex they think their divorce may be, and even if they think their case can be handled mostly "out of court."

When so much is at stake, divorcing parties owe it to themselves and to their family to try to do their divorce right the first time. Simplistic slogans are not to be believed. All who are contemplating divorce should go alone to see a good divorce lawyer who can explain all of the options and give them a clear idea of their individual rights and obligations, and an honest assessment of their particular legal situation. Then, and only then, will they be confidently able to determine if they should use a mediator, collaborative lawyer, or traditional lawyer for their divorce.

For information about Massachusetts divorce and family law, see the divorce and family law page of my law firm website.

No Longer Mere Chattel: The Rising Status of Pets in Family Law

I am surprised it hadn't happened before, but I'm certainly not surprised that it now appears to have finally happened in California: as reported a few days ago by California lawyer John Harding in his post California Divorce Blawg: Power To The Pets, Arnold Schwarzenegger recently signed into law, on September 11, 2007, a California statute that gives pets a status somewhat similar to that of human beings in some cases, by specifically providing for their inclusion in protection orders, authorizing orders providing for their exclusive care by one party and prohibiting any abuse of the animals themselves. Here in New England, Maine last year became the first state in the nation to provide for the inclusion of pets in restraining orders. At least a few other states, including New York, Vermont and Connecticut, have similar new laws pending or recently enacted. Connecticut's new law just went into effect on October 1.


The California Divorce Blawg posted a link to the new California law, at http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_0351-0400/sb_353_bill_20070911_chaptered.html and there is some pretty interesting information here on the legislative history of this bill, including reference to recent studies supposedly showing a correlation between domestic violence (concerning human beings) and the abuse of animals.

In my cases in Massachusetts I have been a part of wide-ranging disputes over pets. Sometimes judges have made temporary orders regarding pets in family court proceedings, and even in restraining orders, despite the lack of any such law to guide them. Most judges, however, have been reluctant to deviate from the historic common law treatment of animals/pets as chattel, and so the fate of pets is often not determined in divorce cases until the marital property division occurs, often at the very end of the process, at settlement or trial.

It shouldn't be long before animal lovers in other states prod their legislatures to follow the lead of Maine, Vermont, Connecticut, New York and California.