Equitable Distribution

Bitter Divorce Separates A Man And His Bird :: Separation and Divorce Lawyers in Charlotte, North Carolina

Published on: April 23, 2013 | On behalf of Arnold & Smith, PLLC

Attorney Matthew R. Arnold answering the question: “Can any attorney help me with my family law needs in North Carolina?”

A hostile divorce in Montana resulted in a man losing touch with his beloved bird, a macaw, for more than five years. Thankfully, the two were reunited recently thanks to a friend with a good eye.

The ordeal began when the man, Mike Taylor, and his wife went through an especially nasty divorce several years ago. In the divorce, Taylor’s wife won control over their pet bird, Love Love. After the settlement was done, his wife decided to sell the bird, devastating Taylor who had always been fond of his 25-year-old pet.

A friend of Taylor’s was recently visiting a bird sanctuary in the state when he thought one of the birds seemed oddly familiar. The friend had to cajole Taylor to come see for himself, but once he did he knew it was his Love Love. Taylor then had to try and convince the owner of the sanctuary to let him get his bird back, but after revealing several oddly specific facts about the bird, including his blindness in one eye, the owner decided Taylor was telling the truth.

The sanctuary initially took possession of Love Love after another woman sought to give the bird away after the bird bit her so hard that she required medical attention. Love Love has not been aggressive with Taylor and seems to have settled back into his old routines.

Different Ways To Value A House :: Equitable Distribution and Property Division Lawyers and Attorneys in Charlotte, NC

Published on: March 19, 2013 | On behalf of Arnold & Smith, PLLC

Many tasks that might at first seem fairly straightforward can quickly become complicated in the midst of a tense divorce. One good example of something that should be relatively easy, but can be expensive in certain circumstances is deciding on a value for your marital residence.

The problem is that the value of the house, often the couple’s largest asset, matters a great deal when dividing the marital estate. Each side often has something to gain (or lose, as the case may be) based on the value of the house, which is why arriving at one number is often easier said than done. The issue has only become more complicated in recent years due to the economic downtown. People may find themselves in the unfortunate situation of being underwater on a house or believing it to be worth far more than it is. To help stop the bickering over price, research needs to be done to come up with a realistic value to facilitate a relatively painless division of assets.

There are three primary ways to determine the value of the house. First, and least expensive, is to do some simple online research of your own. Digging around on the Internet and looking at comparable listings with local realtors or MLS listings can often help you gauge the marketplace. The estimate will not be precise, far from it, but it can help determine a range that your house might fall into. This might end disputes where one spouse insists on a wildly inflated (or deflated) number. In some cases this might be enough research to put the issue to rest, but in the most acrimonious cases the value will likely be seen as too speculative to hold up in court.

The next approach is to have a comparative market analysis done. This means that an examination of sales prices of homes in your area is done. Realtors will usually do a CMA for little or no money and can help give you a fair market estimate for your house. Though this approach is much less expensive than a full-fledged appraisal, it’s also not as accurate. This is because CMAs do not take into account the specific condition of your house, something that can lead to large fluctuations in value.

Property Division and Equitable Distribution Lawyers and Attorneys in Charlotte, Mecklenburg County, North Carolina ::

Published on: January 1, 2013 | On behalf of Arnold & Smith, PLLC

For those who work for the federal government, the term Thrift Savings Plan (or TSP) is likely very familiar. The TSP acts as a retirement savings plan for all federal civilian employees and even some in the military. A TSP is what’s known as a defined contribution plan and functions similar to a 401(k) plan.

Those who either have a TSP of their own or are married to a spouse who works for the government might wonder how the retirement vehicles are handled during a divorce. It’s important to know from the start that a TSP is capable of division in a divorce. It can even be garnished to fulfill the holder’s past-due alimony or child support obligations.

The spouse of the person with a TSP can receive some general information about the retirement account, but not many critical details. Upon written request, the government will provide a spouse or a spouse’s attorney quest with the account balance, any loan balances and statements. However, the TSP administrator will not reveal personal identifying information connected with the account.

A TSP can be split by providing the administrator with a court order that complies with federal regulations. The TSP provides a sample of such an order that contains all the necessary language, a step that makes drafting the order easier. Once the administrator receives a valid order they will pay out the amount contained in the order to the designated party.

If you are married to someone with a TSP, it might be beneficial to have your attorney freeze the account with a court order. Such a step will ensure that your spouse cannot withdraw money from the account or make any loans against its value, thus reducing your share of the TSP.

Equitable Distribution and Property Division Lawyers in Charlotte, Mecklenburg County, NC :: Divorces Frequently Deal With Debt More than Assets

Published on: November 20, 2012 | On behalf of Arnold & Smith, PLLC

Legal experts say there have been changes in the way couples end marriages in North Carolina and all over the country thanks to the prolonged economic downturn. Divorces before the recent recession tended to revolve around a division of marital assets. Following the economic downturn, couples began to spend more time dealing with splitting liabilities than their shared assets.

Debt has played an increasingly prominent role not only in the divorce process, but sadly, into the calculation concerning whether divorce is even financially feasible. Many couples facing hard times and mountains of debt have had to give a lot of thought to whether they can survive without the benefit of a second income. Underwater mortgages and employment trouble has meant that some couples must enter bankruptcy before they can begin to consider a divorce.

Jointly held debt does not simply evaporate after divorce, even if bills are reassigned in court to one party. Spouses remain on the hook for any joint obligations including shared credit cards, mortgages and tax debts. Though North Carolina’s equitable distribution laws strive to divide marital debts and assets fairly during divorce, these divisions are not necessarily equal.

Though there has been some good news in the form of American families working to reduce their levels of household debt, the recession caused quite a bit of financial pain. The Federal Reserve reported that the small drop in debt burdens for the average American family corresponded with a 38% decline in net worth. The Survey of Consumer Finances reported the average net worth among families in the U.S. fell from just over $126,000 in 2007 to below $78,000 by 2010.

Divorce Lawyers Statesville, North Carolina :: The Trouble With Dual Citizenship in North Carolina Divorce

Published on: October 16, 2012 | On behalf of Arnold & Smith, PLLC

What could be worse than divorce? Perhaps the prospect of dueling divorces spread across the globe. Red tape, bureaucracy, money, cultural differences, travel are just some of the many problems faced by Americans facing a divorce in a second country.

While this may seem like a problem that affects only a small group, the fact is many may one day encounter such a predicament. If you’re a dual citizen, you or your spouse has been living abroad, you married a citizen of another country or your spouse fled the country with the kids, you too might have to go through the legal system of another country to obtain a divorce.

Given the increasing interconnectedness of the world, this is a problem that is affecting more and more people. Parental kidnappings make the headlines regularly and more and more parents are willing to fight to get the kids back in the U.S.

If you are facing a possible foreign divorce the first question to content with is where will it be easiest for you to get a divorce? Just because you or your spouse is American, that does not meant that you can file in the U.S., especially if you live abroad. The issue is not where you were born, but where you are currently living that determines which court has jurisdiction.

Though exceptions abound, a good rule of thumb is that divorce is easier to manage in the U.S. and Europe as laws tend to value fairness and equality between the parties. Laws in the Middle East and parts of Africa can be especially hard on women, making it almost impossible for mother’s to gain custody of the kids. Even this conversation about where you will divorce relies on the assumption that you and your spouse agree about where to file. If you don’t, the process becomes a race as whoever files first determines where the divorce will take place.

Equitable Distribution Lawyers in Charlotte, North Carolina :: What Happens to Small Business Debt in Divorce?

Published on: October 4, 2012 | On behalf of Arnold & Smith, PLLC

If a spouse mixes business with personal life, for instance, by using a personal credit card for business matters, the result will likely be no different than what would happen if it were a personal credit card in a divorce. Despite the fact that the card is tied to business and relate to only one spouse, both spouses may still end up responsible for the payments.

If the debts occurred in order to help a business which created an income for the spouse, they will likely be considered a “marital obligation.” If a judge finds the debt and its amount to be reasonable and if there are no other business assets to offset the amount of the debt, it could very well end up being shared as part of the equitable division process that takes place in every North Carolina divorce.

Equitable Distribution Attorneys :: Property Division can be Difficult in North Carolina Divorces

Published on: September 25, 2012 | On behalf of Arnold & Smith, PLLC

When it comes to separating assets, especially emotional ones, reaching an agreement that works for everyone can be tricky. For liquid items, such as bank accounts and retirement accounts, the division can be far less difficult due to a cash value already being attached to them. However, for many North Carolinians, figuring out a fair asset division when it comes to personal property can be far more frustrating.

In many cases, a couple will have acquired some unique items throughout the course of their marriage. These items can be difficult to split unless an agreement is reached. However, if both parties wish to remain in possession of the unique item and find themselves at an impasse, there are several ways in which a division can be achieved.

The easiest of all methods is to force a sale of the item and to split the proceeds. This allows each party to receive a fair share of the value of the item. However, for those who wish to keep the item, a common way to do so would be to offer to buy out the other spouse of their share. If things are extremely contentious, however, and both parties refuse to compromise on who gets the item, a judge may have to step in and determine what should happen.

Equitable Distribution Lawyers in Charlotte, NC :: How to Split Invaluable Assets in a Divorce

Published on: August 21, 2012 | On behalf of Arnold & Smith, PLLC

According to the Seattle Times, Christopher Larson and Julia Calhoun were able to divide most of their assets, but when it came to their art collection the couple could simply not agree. While emotionally valuable items are common in divorce, the couple’s art collection had not only emotional value, but a tremendous dollar value. The collection was appraised for over $100 million and included several masterpieces by artists like Monet and Renoir.

Christopher Larson, a retired Microsoft executive, earned his millions by getting in on the ground floor of the tech giant back in 1981. His 0.5% stake in the company proved very lucrative and once the company went public Larson’s net worth soared. Today the couple not only has an impressive art collection, but also a stake in the Seattle Mariners and a 25,000 square foot home.

The couple was able to agree on everything except what to do with the art, and after two tries the issue was handed over to the court. The couple’s 47 pieces could have been split in a traditional way, sell everything and simply split the proceeds. The problem: high taxes on art combined with auction fees would significantly devalue the collection. Even worse, the couple owns so much 19th century art that selling it all could have flooded the market and devalued the works even more.

The judge in charge of dividing the art asked for both parties to submit their wishes on paper. Julia Calhoun sent a long document detailing her emotional attachment to each piece and which ones she valued most. Larson sent a business like reply saying he needed paintings valued over $750,000 to secure a line of credit. Additionally, he said, “I have lots of wall space to cover, and so I do not want a collection consisting of very few expensive paintings.” In the end, Calhoun got 19 paintings and Larson got 24. The couple also did some trading after the settlement was reached.

Divorce Attorneys in Charlotte, NC :: The Impact of Divorce on a North Carolina Small Business

Published on: August 16, 2012 | On behalf of Arnold & Smith, PLLC

Divorce is a hard enough process for anyone to go through and there are lots of complicated financial decisions that must be made. The money worries can multiply for small business owners who have the added concern of how the divorce will affect their livelihood and even employees.

First things first, your business will likely need to be valued in connection with the distribution of marital assets. This will mean a financial expert may need to go over the records of the company and ask questions about expenses and revenue streams. You’ll need to produce extensive documents to verify the numbers in this process. Sometimes valuations, especially complicated ones, can be expensive. Many times each party insists on having their own expert look at the books. The process can be time consuming and can serve as a distraction for employees who must spend time gathering documents.

Though the worst-case scenario in many business owners’ minds is that the company will have to be sold to pay the spouse his or her share of the marital assets, there are ways to minimize the impact of divorce on a small business.

1. First, hire a good attorney. An experienced Charlotte divorce attorney will know what to do to reduce the impact of the messy divorce process on the continued operations of your business.

2. If you have a prenuptial or postnuptial agreement that could come in very handy. Such agreements can predetermine the amount of assets that will be distributed in a divorce and can thus protect a business from being broken up.

3. If you have partners, take a look at your partnership agreement and see if it addresses a way of buying out or valuing a share of the company if divorce is filed against one of the owners. While this may not control what a family court judge does, it can show that there was an intent to minimize business disruption which the court will likely respect.

4. If you aren’t lucky enough to have either of the two above agreements, consider hiring a joint financial expert to value the business which will save both time and money. The process will move more quickly if the two of you can agree on one neutral party to conduct the examination.

5. All involved parties, including attorneys and experts, can sign a confidentiality agreement to protect any sensitive information that is uncovered while examining the business’ books such as trade secrets or other proprietary information.

6. Finally, to minimize the risk of a sale of the company, you can attempt to structure the settlement with periodic payments to your spouse rather than a lump sum.

Equitable Distribution – The Scoop on Joint Accounts

Published on: July 12, 2012 | On behalf of Arnold & Smith, PLLC

It happens all the time, people sign on the dotted line creating joint accounts. Credit cards, bank accounts, car leases, etc. Many of us do it without even thinking. What we may not understand is just how important that decision is to our financial future and how hard a decision it can be to unwind. The following are some important things to know before opening a joint account.

First, joint credit can mean many different things. The first kind of common account is a one that is truly split. This means that you are both partners on the account and fully liable for the loan. It’s important to realize that if your partner flakes out you are liable for 100% of the debt, not just 50%.

Another variety is an account where you are listed as an authorized user. In such accounts you are allowed to use the card but have little or no responsibility for ever repaying the debt. If the debtor defaults it is possible that some lenders will attempt to collect from you, especially for the purchases you made.

A final variety is a co-signer situation. In these cases you are signing on to be responsible for the entire amount of the debt even though the credit has been issued in another person’s name and you are not permitted to use it. If the borrower messes up, this bad behavior can be reflected on your credit history as you signed up to be on the hook.

Second, ending a relationship could potentially lower your credit score by reducing your income level. If your income drops and creditors pull back your credit limits there could be a real impact to your credit situation. One way to avoid this is to keep using some of your individual accounts while in a relationships.