Property Division

Nebraska Supreme Court Throws Out $100 Million Lawsuit Against Divorce Attorney :: Separation and Divorce Lawyers in Charlotte, North Carolina

Published on: July 11, 2013 | On behalf of Arnold & Smith, PLLC

Attorney Matthew R. Arnold answering the question: “When do you get alimony?”

A woman in Omaha is likely pretty unhappy today after a recent ruling by the Nebraska Supreme Court regarding her divorce case. The woman, Mary Kay Young, had filed suit against her former divorce attorney for $100 million, claiming the woman, Pamela Govier, cost her a fortune by providing bad legal advice.

The lawsuit by Young was filed last year after Young realized just how bad of a deal she got from her 2006 split. Young claimed that her attorney gave her bad advice by telling her to accept a divorce settlement that would pay her a $3 million lump sum as well as $12,500 in monthly alimony for up to 10 years. $3 million up front and $150,000 a year? Sounds fantastic, right?

Sure, the money is nothing to sneeze at, but put in perspective it’s not such a great deal. The problem in the case is that Young’s husband, Henry Davis, was a very wealthy CEO of a major midwestern meat packing company. Young says that by signing onto the agreement advocated by her attorney, she missed out on what could have been half of her husband’s $192 million marital estate.

The state Supreme Court upheld the ruling by a lower court judge who found that Young never sufficiently proved negligence by her attorney. Young further claimed that the settlement agreement signed with her ex-husband should have been voided because it was executed under duress. The judge also rejected that contention, claiming that no proof of such duress was ever shown.

The Supreme Court also ruled on another strange aspect of the divorce case, saying that Young was not allowed to force her ex-husband to take a physical so she can buy a $1 million life insurance policy on him. Young’s attorney argued the policy was necessary to secure future child support payments by Davis in the event that he dies prematurely.

Women Are Primary Income Earners in 40% Of Households :: Separation and Divorce Lawyers in Charlotte, North Carolina

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

Attorney Matthew R. Arnold answering the question: “What does uncontested divorce mean?”

Surprising new data from the U.S. Census and the Pew Research Center reveal that women are the sole or primary breadwinners in four out of 10 American households with children. That number represents a huge increase from the 11 percent of households with breadwinning women in 1960. The level also represents a record high for female financial power but speaks to other potential problems on the home front that come with changes in economic clout.

Surveys done by Pew reveal that while women might hold more power over the pocketbooks, many still believe children are better off with stay at home mothers. The data showed that 51% of those interviewed said that children are better in households with a stay at home mom. Only 8% of those surveyed said the same thing about fathers. Even more surprising was that half of those surveyed agreed with the statement that the number of working women makes it harder for marriages to succeed.

The researchers behind the data say that the numbers show Americans are of two minds about the new role of women in the family and the workplace. On the one hand, more and more families are embracing the earning power of two incomes and welcoming the loosening of traditional roles. On the other hand, many lament the loss of traditional family life and say more modern roles have harmed marriages.

Billionaire Oil Man Prepares For World’s Most Expensive Divorce :: Separation and Divorce Lawyers in Charlotte, North Carolina

Published on: March 26, 2013 | On behalf of Arnold & Smith, PLLC

Attorney Matthew R. Arnold answering the question: “How long does getting a divorce take?”

There is talk that a currently pending divorce involving Oklahoma oil mogul Harold Hamm and his second wife, Sue Ann Hamm, could be the largest divorce settlement in history. Just how much Sue Ann stands to walk away with depends on how much of Hamm’s oil company shares Sue Ann is able to lay claim to.

Hamm appeared on the recent Forbes list of the world’s wealthiest people with an estimated $11.3 billion net worth. The reason for Hamm’s wealth is his ownership in the oil company Continental Resources, a major player in the currently booming oil production out of North Dakota.

Hamm’s story is one common among entrepreneurs, beginning at the bottom and working his way to the top. Hamm started work at 20, scrubbing old oil barrels in Oklahoma. He grew in his job and learned new tasks, eventually scraping together enough money to start Continental in 1967, several decades before he married Sue Ann.

Hamm struck gold (black gold, that is) in the 1990s when he discovered the Bakken oil field of North Dakota, the largest oil field in the U.S. to have been discovered since the 1960s. The discovery sparked a surge in U.S. oil production, with Continental leading the way. The company has made millions by introducing the practice known as fracking, which helps extract oil from soil that was previously too hard to access. Today the Bakken makes up about 10% of total American oil output, with Continental holding on to a large slice of the pie.

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.

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.