Kristopher K. Greenwood & Associates

Gray divorcees should prepare financially for their split

2022-01-10T15:40:54Z

People of any age can find themselves in an unhappy marriage, even those who have been married for many years or even decades. In fact, divorces of those over age 50 have increased so greatly that a phrase has been coined for them -- “gray divorce.” Gray divorcees face issues their younger counterparts may not, especially when it comes to finances.

Preparing financially for divorce

Gray divorcees should prepare financially for their split. For example, retirement is a big issue. Spouses who once depended on their shared retirement savings to provide for them in their elder years are now facing the need to split these assets. In addition, gray divorcees will be separating their residences, bills, utilities and other aspects of homeownership. Sometimes it makes more sense to sell the family home and divide the proceeds. This way, each spouse can move forward with a living situation that better meets their needs.

Do you have to litigate?

Litigating a divorce can be a time-consuming and expensive process. Some couples may want to end things on their own terms. These couples may benefit from divorce mediation. In mediation, a third-party mediator facilitates discussions between the spouses as they work out their divorce issues such as property division and alimony. If the couple can reach a settlement through mediation, this settlement can be approved by the court thus finalizing the divorce. Divorce mediation is private, less costly than litigation and many are more satisfied with the outcome since they had a say in it. Spouses can still be represented by an attorney if they choose to mediate their divorce.

Divorce has a financial impact

Divorce has a financial impact on spouses, especially a high-asset divorce. Fortunately, there are ways couples can address the financial issues in their divorce in a constructive manner. This way they can both move on from the divorce with their finances intact.

Can I mediate my high-conflict divorce?

2022-01-04T22:28:59Z

Some divorces are messy. Both parties may have animosity and hurt feelings that any form of cooperation may seem unachievable. However, mediating a high-conflict divorce may be an option for couples willing to work together collaboratively.

What is mediation?

Mediation is a form of alternative dispute resolution. The mediator is a neutral third party and is not a decision maker. Instead, the mediator acts as a facilitator between you and your spouse as you negotiate an acceptable resolution to your divorce. If you choose mediation, you can still be represented by an attorney. In fact, attorneys can be helpful to have by your side during mediation, as they can help advise you on any potential resolutions and make sure all aspects of your divorce are covered in the discussion. Discussions during mediation are confidential, which often helps the parties feel more open to discussing divorce resolution alternatives. ' Mediation can be a viable way to reach an out-of-court settlement to your divorce. In addition, it is often less costly and quicker than formal litigation.

Mediation and high-conflict support

Mediation requires a certain amount of cooperation. Does this mean mediation is not an option in a high-conflict divorce? Not necessarily. Litigation often only adds to the adversarial nature of a high-conflict divorce, making the relationship between you and your spouse less trustworthy. A good mediator can help both you and your spouse feel fully heard and validated, which can help each party communicate their needs. Mediation can help you focus on the big picture, especially if there is something immediately to lose in your divorce. Every divorce is unique to the couples facing it. Divorce mediation may work for some, while others may need to continue with litigation. Ultimately, it is up to you and your spouse to decide how to resolve your divorce.

Accounting for hidden assets in a divorce

2022-01-04T22:34:43Z

When a couple decides to divorce, each spouse is expected to provide an accounting of their assets. Using this accounting, the court will divide those assets equitably. Unfortunately, sometimes spouses may overlook certain assets and benefits, thus neglecting to include them. There are several types of hidden assets that spouses should account for.

Pensions and military benefits

Although pensions are not as common as they once were, if one spouse earned a pension or will receive pension payments in the future, it is important to include those in the asset accounting. This applies even if the pension payments are currently only an estimate. The spouses may want to complete a pension valuation, especially for future pension payments, which can help the receiving spouse understand how much he or she may expect. Military spouses may have additional considerations. In order for a non-serving military spouse to retain benefits after divorce, the service person must have served for 20 years or more, the spouses must have been married for 20 years or more, and the marriage and military service must overlap by at least 20 years. If these factors apply, the non-serving spouse may be able to keep healthcare and other benefits that should be included in the asset accounting.

Stock and other currency

If one or both spouses work in executive-level positions, they may have been given shares of stock as part of their compensation. Stock valuations and divisions can be complicated, but it’s important that these are not overlooked when dividing assets. Additionally, spouses may want to consider how they will divide Bitcoin and other cryptocurrency. There are several ways to hold this type of asset, and these assets can fluctuate significantly over time. Therefore, cryptocurrency may require an expert to help with its valuation. If a spouse needs assistance to ensure hidden assets are included in the divorce, there is help available.

Understanding uncontested divorce

2021-12-21T20:28:53Z

While some divorces are long and drawn out with upset parties on both sides, there are other circumstances where the spouses agree to the divorce. This is called an uncontested divorce. One spouse will still need to file for divorce, but the process tends to be much simpler for everyone involved.

Advantages of uncontested divorce

When the spouses can agree on issues such as spousal support and property division, it may save money. There may be fewer administrative fees and court fees. Cost savings is one of the primary advantages of an uncontested divorce. Additionally, an uncontested divorce can help the parties maintain a positive relationship because there is less conflict and back-and-forth between them. This can greatly reduce the stress involved in ending the marriage. With a contested divorce, the filings are often made public and can include the spouses’ financial information and other personal details. While some filings are still required, an uncontested divorce may appeal to spouses who want to keep the proceedings reasonably private. If spouses have questions about pursuing a contested divorce or an uncontested divorce, an experienced attorney can provide guidance and advice.

What happens if a parent quits a job to avoid child support?

2021-12-21T20:27:39Z

Emotions can run very high during divorces, and spouses can become very upset with each other. These tensions can govern many of the decisions made during the divorce. This includes the decisions they make regarding their children. During a divorce, parents need to make decisions regarding child custody, parent-time, and child support, which can all be impacted by emotions. One way emotions may govern a decision is that a parent may try to avoid paying the other child support, or they may try to reduce the amount they need to pay. To accomplish this goal, a parent may quit a job, reduce their hours, or take a lower-paying job before they make decisions regarding child support. While this is not fair to the other parent, it is also not fair for the children. Child support is to be used to provide for the children’s basic needs, and the law wants to ensure that this occurs.

How income can be assigned to a parent

If a parent purposely reduces their income to avoid child support, judges can impute income to the parent for child support purposes. Imputed income is usually based on an assumption that the parent is capable of working 40 hours a week. Judges may analyze the parent’s work history, education, training, available jobs the parent is qualified for, and the amount that these jobs would pay. After analyzing some or all of these factors, the judge would make a determination of the parent’s potential income. This amount would then be used to determine child support, regardless of whether the parent actually earns that amount or not. Child support is an important part of divorces in Utah, and it is important that children receive this financial support. Raising children can be difficult, and it can also be expensive. This is true whether parents are married or divorced. It is important that parents are not able to avoid this obligation by simply quitting a job or taking one earning significantly less until child support is established. Experienced attorneys understand how child support is established and may be able to help guide one through the process.

What does Utah law say about resolving parent-time disputes?

2021-12-21T20:39:04Z

When there is a divorce in Utah, child custody and parent-time can be common sources of discord. This is true whether the couple is at odds over every issue in the case, if they are on reasonably good terms, and anywhere in between. There are fundamental aspects of parent-time that must be addressed, including where the child will live, how school will be handled, vacations, holidays, and more. As differences escalate, it can be easy to go back and forth. The situation may increase in intensity and turn acrimonious. To try and avoid this and keep the parties on the same page, the state puts provisions in the Parenting Plan to resolve disputes.

Key facts about the dispute resolution process

As part of the process to resolve parent-time issues, Parenting Plans can include provisions that the parents take part in counseling, attend mediation or arbitration, or go to court. When the parents attend counseling, mediation, or arbitration and are able to come to an agreement, the agreement must be kept as a written record. During the dispute resolution process, the provisions that are laid out in the Parenting Plan will be given preference. Parents are expected to abide by the dispute resolution process. If a party interferes with the process without a viable reason, the court may order that financial restitution be paid to the other parent. Financial restitution may include legal fees, the other party's attorney's fees, and other costs.

Experienced advice is useful with disagreements over parent-time

When it comes to disagreements in child custody and parent-time, parents should try to find reasonable resolutions and come to a mutual agreement. However, if they are unable to do so on their own, the law is in place to ensure the children's best interests are served and the parents’ rights are adhered to. When the court becomes involved, understanding the basics is critical to achieving the desired outcome. This is why it is important to seek professional advice from an experienced family law attorney.

Does adultery impact divorce?

2021-12-21T20:13:30Z

Many couples deal with infidelity and other forms of betrayal within their marriages. Some of these couples find that they cannot work through their issues and decide to file for divorce. Utah is a state that allows for fault-based divorce. Therefore, one spouse can cite adultery as grounds for divorce.

While a fault-based divorce is possible, Utah also allows for no-fault divorce, meaning that a spouse does not need to hold the other spouse at-fault in order to get a divorce. A couple can state that their “irreconcilable differences” led to their divorce.

Adultery can impact custody and alimony

While you do not have to file for a fault-based divorce, you may find it beneficial to do so in certain situations. For example, adultery may impact alimony determinations by the court. Courts may decide to award a higher amount of alimony to one spouse based on the other spouse committing adultery, particularly if the adulterous spouse spent marital funds to purchase gifts for their affair partner or wine and dine them.

Adultery can also impact child custody if the spouse who committed adultery puts the child in a harmful environment or exposes them to inappropriate behavior. Generally speaking, however, adultery does not usually impact child custody determinations.

Cheating within a marriage can be impossible to overcome for many couples. If you decide to divorce your spouse due to their infidelity, you may benefit from consulting with a family law attorney as soon as possible. Your attorney can review your case and help you decide what to do next.

Pursuing grandparent visitation in Utah

2021-12-02T23:14:58Z

Grandparents can have a significant, positive influence in the lives of their grandchildren. In some situations, grandparents in Utah may want to formally pursue visitation rights through the court system. Generally, parents have a right to exercise full decision-making authority for their children. This includes decisions about their care, supervision, upbringing, and education. Parents also decide what level of involvement and interaction the grandparents can have with the children.

Visitation rights for grandparents in Utah

Grandparents have a right to petition the court for visitation with the grandchild. The court may grant grandparent visitation rights if the grandparent can demonstrate that they are the child's primary caregiver, and the loss of that relationship would cause substantial harm to the child. The court may also grant visitation where the grandparent can show both parents are unfit, incompetent, or act in a way that could harm the child.

The best interest of the child

When deciding whether grandparent visitation is in the child's best interest, the court will take several factors into consideration. These include the child's needs, the safety and welfare of the child, the wishes of the child (if they are old enough to decide), evidence of abuse or neglect by the child’s parents, and the child’s adjustment to their school and community. Also, if a parent does not comply with the court’s visitation order, the grandparent can petition the court to remedy the situation. If a grandparent would like assistance to petition the court for visitation, help is available.

Know your parent-time options during the holiday season

2021-12-02T23:18:05Z

Although many courts view joint custody arrangements as the most beneficial for a child, they can certainly raise some challenges. This is perhaps highlighted best during the holidays, as parents may bicker over who will get to spend time with the child. Disagreements can quickly arise over when parent-time is to occur and how long it is meant to last, and there are often disputes over lack of adherence to drop-off and pick-up times. This might sound stressful, but you can be proactive in addressing parent-time during the holidays by creating a strong plan that is acceptable to both parents. Here are some examples of what your plan can look like:

Alternate holidays: Here, you and the other parent take turns each year spending holidays with the child. For example, you get to have the child on Thanksgiving in even-number years, while in odd-number years, the other parent gets the child for Thanksgiving. This ensures that you get to spend the full holiday with your child, but it also means that you’ll have to go a whole year before you can spend a certain holiday with them.
Share time on the holiday: Another popular option is splitting the holidays in half so that each parent spends half of the day with the child. For example, you may get your child on Christmas morning, while the other parent gets the child starting at noon or 1:00 p.m. Of course, this type of arrangement can have its own set of challenges. Some people, for example, may find Christmas morning to be more valuable than the afternoon, so how do you decide which parent gets the morning with the child? You will also have to navigate drop-off and pick-up times that work for everyone.
Negotiate fixed holidays: With this option, you will spend all day on specified holidays with your child each and every year. This can simplify things, but it also means that there may be holidays that you won’t be able to celebrate with your child. For some people, this is unacceptable. For others, they may be fine with missing the actual holiday and celebrate the holiday another time.
Celebrate holidays twice: Another popular option for parent-time during the holidays is simply celebrating twice, once with each parent. While you may not get your child on the actual date of the holiday, you can still have extra time with them to make things special. If this proposal is on the table, though, you still might want to ensure that you’re getting holiday time with your child at some point, even if it’s on an alternating basis.

Keep in mind that a parent-time plan may seem set in stone, but it does not have to be. If you work out an arrangement that later proves untenable, then you and the other parent can work together to make modifications that work for both parties. However, if you can’t reach an agreement, you may need to turn to the court for assistance.

Using an appraiser in a high-asset Utah divorce

2021-12-02T23:16:41Z

For many divorcing couples, the house is their most valuable asset. Under Utah law, all assets must be divided between the spouses equitably. Therefore, determining the family home's value – especially in marriages of lengthy duration – is vital to ensure a fair distribution of assets. While each spouse may think that they know what the home is worth, the actual value should be professionally determined by an experienced real estate appraiser. The techniques used to appraise real property can also be used to assign a value to other assets. Understanding the appraisal process can be essential during negotiations between the spouses.

Three methods of appraisal

An appraiser begins by assuming that the house's value will be the same as the price paid by a willing buyer to a willing seller. The appraiser then selects one of three methods of appraisal:

Sales comparison approach;
Replacement cost approach; or
Income approach.

In most cases, the appraiser will use the sales comparison approach. Increases in costs of materials usually rules out the replacement cost approach, and the income approach is used most commonly for income-producing property, such as apartments.

Beginning the appraisal

The appraiser begins the appraisal process by visiting the property to be valued. During this visit, the appraiser makes a detailed and careful observation of the house. How many bedrooms does it have? How new are the kitchen appliances? Does the house have any other features that may affect value, such as a swimming pool or tennis court? The appraiser may also take a number of photographs to record the nature of the house and the relative state of repair.

Choosing comparable properties

After gathering relevant information about the property, the appraiser will use local land records to find from about three to six properties that have recently changed hands and have features comparable to the property being appraised (the “subject property”). The sale prices of these comparables are then adjusted based upon whether the subject property has more or fewer features that will affect value in the eyes of a willing seller.

Final Estimate

After analyzing the comparable value of the “comps,” the appraiser will determine an estimated value for the subject property based upon whether it appears to be more or less valuable than the properties it was compared to. The appraiser will then fix an estimated fair market value. The divorcing couple can either agree to accept the appraised value or, if one party disagrees with the appraiser’s findings, that party can retain another appraiser. In the end, the couple will either agree to accept a single appraisal, or they can submit the findings and opinions of each appraiser to the court. Anyone facing a divorce involving an exceptionally valuable home may wish to consult a knowledgeable divorce attorney about the wisdom of retaining another appraiser.