The Good, the Bad & Ugly: Things a Divorce Attorney May Ask You to Share

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The Good, the Bad Ugly Things a Divorce
Attorney May Ask You to Share
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TABLE OF CONTENTS

• The Good, the Bad Ugly Things a Divorce
  Attorney May Ask You to Share
• Grounds of divorce
• Personal information
• Family information
• Property information
• Financial information
• Hidden Costs of High Net worth Divorce on
  Businesses
• Extra Taxes
• Ownership Stake
• Child and Spousal Support
• Forensic Accounting
• Business Valuation Complications
• Property Division Role of Divorce Mediation
• Assist Parties To Reach A Mutual Agreement
• Determine if the Participants Have the Capacity
  to Negotiate
• Create Options That Will Lead to an Agreement
• Provide legal information, Not Legal Advice
• Make the party know that Children are most
  important

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The Good, the Bad Ugly Things a Divorce
Attorney May Ask You to Share

• No one likes to go through a divorce but sadly,
  it is a common trend nowadays. In the United
  States, 40-50 of all marriages end in divorce.
  The number is even higher for subsequent
  marriages. As if the emotional torture of ending
  a relationship with someone you love is not
  enough, the legal process is even more draining.
  This is why the choice of a good divorce attorney
  is paramount.
• Many people who are yet to hire a lawyer to
  handle their divorce proceedings worry about what
  they will be asked to share. Although there is a
  confidentiality agreement that your lawyer will
  sign before working with you, some folks are
  uncomfortable sharing certain sensitive
  information to anyone. If you fit the
  description, brace yourself because you will do
  some unmasking to your lawyer. Follow through as
  we reveal some of the things a divorce attorney
  may ask you to share.

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Grounds of divorce

• One of the very first questions a divorce lawyer
  will ask their client is why they have divorced
  their partner. It is also one of the requirements
  in all state courts. Unless you live in a
  no-fault divorce state, your lawyer will be asked
  to give one or more reasons why you are filing
  for divorce. The reason has to be something
  pre-established and solid such as physical abuse,
  adultery, abandonment, and drug abuse. Most
  stated also accept less accusatory reasons such
  as irreconcilable differences and irretrievable
  marriage breakdown as probable causes of divorce.

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Personal information

• Your attorney will also request for your personal
  information and that of your spouse. This
  includes any proof of residency, basic
  information (full name, social security number,
  and date of birth), contact information (phone
  number, email address, and physical address),
  employer information, how long your spouse has
  been employed, any business he or she runs, and
  where to serve the divorce papers to your spouse.
  

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Family information

• The third thing you will share with your divorce
  lawyer is whether you have children from the
  current and previous marriages. In addition, they
  will ask about the wedding details (place and
  date you got married), existing custody
  arrangements, child support, health insurance,
  and the name of your spouses lawyer.

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Property information

• Expect your attorney to also ask you to share
  your propertys information. Some of the things
  will include the address of your property,
  addresses of mortgage companies (if any), any
  outstanding mortgage balance, the estimated value
  of your property, list of all transportation
  items, make of each vehicle, and address of any
  lender with a title to any transportation item.
  Be prepared to give them all the deeds to each
  property, bank statements, refinancing paperwork,
  and escrow documents of the initial purchase of
  the property.

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Financial information

• Last but not least, your divorce lawyer will want
  to know all your financial information. Some of
  the things they will ask for include a list of
  separate and joint bank accounts, savings bonds,
  C.D.s, credit cards, mutual funds, investment
  accounts, debit cards, and stocks. You will also
  be required to render any information regarding
  any money owed, involvement with any lawsuit, and
  a list of any livestock owned.
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• There it is 5 things a divorce attorney will ask
  you to share. To make the process easier, simply
  cooperate with your lawyer. Render all the
  information without holding back. At the end of
  the day, they are on your side and they will
  fight tooth and nail to get what you truly
  deserve.

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Hidden Costs of High Net worth Divorce on
Businesses

• Not many people can argue that they are
  self-certified. Are your liquid assets worth 1
  million or more? Do you receive an annual income
  of more than 100,000? If the answer is YES, then
  you are self-certified. In the world of
  economics, you belong to an elite group of people
  called High Net worth Individuals (HNWIs). In
  simple terms, you are rich.
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• The problem with being rich is that it is never
  easy when you have to deal with a divorce. A
  divorce not only affects personal assets but also
  business assets. From the legal consultations to
  the settlements, a lot of money is involved. So,
  the process is very expensive. The biggest
  challenge, however, is that you may not see some
  costs coming as they are normally hidden.

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Extra Taxes

• When you have assets distributed in several
  places, you can be sure that the taxman will be
  on to you during a high net worth divorce. Tax
  complications exist when you have investments in
  real estate and when your business has
  entitlements or benefit plans. If you are not
  careful, you may end up overpaying your taxes,
  and this could impact your business negatively.

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Ownership Stake

• This is normally the most contested cost during a
  high net worth divorce. If you and your partner
  have business assets that qualify as marital
  properties (assets acquired after marriage), you
  could be forced to share business ownership
  rights. In this case, both of you may enjoy 50
  ownership rights. Not only cannot you make
  decisions without consulting your partner but you
  also have to settle with the idea of a part of
  the business dividends going to him or her.

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Child and Spousal Support

• If the business assets in contention belong to a
  category often referred to as separate assets
  (assets obtained by before marriage), the court
  may decide to force you to pay child and spousal
  support. For your child or children, a part of
  the business dividends may be channeled towards
  paying for their education, nanny expenses, and
  upkeep.

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Forensic Accounting

• Often, HNWIs are forced to do forensic accounting
  of their assets when facing a divorce to uncover
  hidden business assets. This comes at an extra
  cost since forensic accountants are highly-priced
  like most consultants. The advantage, however, is
  that you stand to track your lost assets at the
  end of the process.

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Business Valuation Complications

• It is never easy to value a business when facing
  a high net worth divorce. You have to factor in
  things like account receivables, current stocks,
  high-value business assets, and unvested
  interests. These factors require you to consult
  so many experts who are expensive to hire. The
  complications mostly arise when a spouse refuses
  to disclose the full details of offshore business
  assets. You need these experts to do the full
  evaluation.
• Just as a divorce is expensive to a family, it is
  even more expensive to a business. This is if you
  consider the hidden costs that are involved. So,
  if you are an HNWI facing a divorce, you have to
  brace yourself for a costly process that is
  likely to impact your business assets. The
  secret, however, is to seek help from a legal
  expert and financial advisor.

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Property Division Role of Divorce Mediation

• Divorce cases are currently on the rise. Instead
  of going the legal way of having divorce cases in
  courts, which are usually messy, most couples opt
  for divorce mediation. In most cases, couples
  voluntarily agree to go the mediation way. Though
  in some cases, the court may order for mediation.
• If the mediation is ordered by the court then the
  court will appoint a mediator, but if it is
  voluntary, the couple chooses their own
  meditator. Do you know what the roles of a
  divorce mediator are? If not, here is what you
  need to know.

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Assist Parties To Reach A Mutual Agreement

• Most couples undergoing divorce are always
  fighting they do not seem to agree on any single
  thing. They fight over kids, property, and money.
  They do not see eye to eye. It is the role of the
  divorce mediator to create conducive environment
  where both parties will be free to discuss and
  come to a solution that will be mutually
  beneficial.

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Determine if the Participants Have the Capacity
to Negotiate

• For any effective negotiation to take place, both
  parties must be willing to negotiate. The
  mediator is tasked with finding out if any party
  is unable or unwilling to negotiate. Some
  partners might be unwilling to negotiate but
  focused on prolonging the divorce process. He
  should also ensure that both parties know the
  assets they own and their financial status. This
  sets an even ground for discussions.

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Create Options That Will Lead to an Agreement

• Sometimes, things get too hot between the parties
  that they can no longer talk. In such scenarios,
  the mediator may be forced to come up with ideas
  to enable the process to go on. The mediator can
  split the couple into separate rooms and listen
  to their views separately. If the mediator
  promises them confidentiality, the couples may
  end up revealing more information that will make
  them reach a solution faster.

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Provide legal information, Not Legal Advice

• If you are among the people who believe that a
  divorce mediator is supposed to provide you with
  legal advice then you are wrong. A mediator is
  only supposed to provide you with legal
  information and the options you have if you were
  to go the legal way. They are not supposed to
  advice any party on how to use that information.

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Make the party know that Children are most
important

• If there are kids involved, both parties should
  stay child-centered throughout the negotiation.
  The mediator has to ensure that this happens.
  He/she should regularly remind them that children
  are the most important in the entire saga. This
  way, they will agree on terms that will
  prioritize their kids wellbeing.
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• The role played by a divorce mediator is very
  significant. Getting two fighting people to talk
  soberly and come to an agreement is no easy task.
  So long as the mediator stays neutral, fair, and
  unbiased, the process will be a success. Once the
  agreement is done, the mediator should have a
  draft agreement written and ensure both parties
  go through to confirm if it is correct.