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Recent Blog Posts
How Do Spouses Commit Financial Infidelity?
According to National Endowment for Financial Education, one-third of people admit to financial infidelity in their marriage. Income, bank accounts, purchases, cash, and other financial information are just some of the items that may be hidden from a spouse. Not only can this have consequences on a marriage, it can also have a direct bearing on any complex divorce settlements should the couple's marriage end.
There are several ways people can hide income and assets from a spouse in order to avoid including them in the marriage estate. A spouse who is going through a high asset divorce and suspects the other spouse has committed financial infidelity should consider the following:
Pet Custody in Complex Divorces
Statistics show that half of all marriages end in divorce. And according to the Humane Society, 62 percent of households in this country have pets. For many divorcing couples, those pets become part of complex divorce settlement negotiations, and can often turn as contentions as child custody disputes.
A survey conducted by the American Academy of Matrimonial Lawyers (AAML) revealed an increase of over 20 percent in the number of pet custody cases handled by family law attorneys. Many courts are now allowing pet custody cases, while others consider the pet to be an asset included in the matrimonial estate.
Why Do Powerful People Cheat?
A survey conducted by researchers from Tilburg University found that the more power someone has, the more likely he or she is to commit infidelity. Usually, the more power and success a person has, the larger the marital estate is, with many sources of high asset revenue. This is particularly important in a complex divorce where division of those assets need to be determined.
According to another study conducted by the National Science Foundation's General Social Survey, both men and women are cheating more frequently. Almost one-third of married men cheat and 20 percent of married women commit infidelity.
New Technology Makes Spying on Spouses Easier in Complex Divorce Cases
Unlike simple divorces, where negotiations regarding divorce settlement can wrap up fairly quickly, high-asset divorces or other complex divorce issues can require a great deal of investigation and research in order to get the best settlement possible.
As spy technology has become increasingly sophisticated and easier to use, more people are utilizing that technology to help build their divorce case. Individuals who think their spouse is cheating now have all types of tools at their disposal to track the activities of their spouse while also seeking evidence to use against the spouse in the complex divorce.
Complex Asset Divorce Couples Turning to Divorce Financial Planners
An increasing number of couples are trying to negotiate complex divorce settlements and are turning to divorce financial planners. Many attorneys representing wealthy clients in these high asset divorce negotiations are recommending the clients consult with financial planners before finalizing their divorce settlements.
Quite a few financial planners are adding divorce planning to their list of specialties. According to a survey conducted by the Financial Planning Association, 25 percent of planners have already done so and another 20 percent said they plan on offering the service to clients.
Is Your Marriage Heading towards a Complex Divorce?
Arguments in marriage are inevitable. In fact, arguing can often be quite healthy, as a way to air differences that may be building up. Arguing is also a way to for couples to reinforce their intimacy, knowing both are able to disagree and compromise, yet still love one another.
However, arguments that seem to continue and never get resolved are anything but good for a marriage. For many couples, instead of compromise, they find their arguments escalate into shouting matches, with threats of divorce thrown throughout.
If this is happening to you, there are signs that you could be headed for a divorce. It is important to evaluate where your marriage is headed, especially if you anticipate a high asset divorce battle with your spouse. If there are significant assets or other complex issues involved, then you need to be prepared.
Alimony is Not Always Tax Deductible
Under Section 215(a) of the Internal Revenue Service Code (IRC), the definition of spousal support for tax purposes is any cash payment which falls under the following:
- Spouses do not file joint income tax returns with each other;
- The divorce or written separation agreement does not state that the payment is not alimony;
Importance of a Prenup When One Spouse Owns a Business
Dividing up marital property and assets during a divorce can become difficult if one of the spouse's owns a business. That business may be one of the most important assets in the marital estate, especially if it is a successful one. Ideally, if the business was started before the marriage, the couple should draw up a prenuptial agreement that includes specific details regarding the business in the event of a divorce. However, if a prenuptial agreement is not drafted, a divorce could become increasingly difficult and potentially financially disastrous for one spouse or the other if the marriage fails.
For example, one couple going through a divorce, did not have a prenup, and thus put the husband's corporation at risk. Shareholders were left to wonder what would happen to the company. Said husband is currently worth $14.6 billion and is listed in Forbes Magazine as a global billionaire. He also owns 126 million shares of his company, giving him 70 percent ownership.
Study Suggests Poor Economy Causes Cheating
Various research suggests that when the economy is bad, the divorce rate falls. However, analysts have used data from one dating website to study whether or not there is a parallel between the economy and adultery. The website is called Ashley Madison, and unlike other dating websites that promise users the opportunity of finding a spouse, Ashley Madison markets their site for people seeking to have discreet extramarital affairs and engage in cheating.
State Judge Rules Texas Same-Sex Marriage Ban Unconstitutional
A Texas judge recently ruled that the state's same-sex marriage ban is unconstitutional. In February, a federal judge made the same ruling in a different case, striking down the state's marriage ban law.
The state case involves a couple who were married in Washington D.C. in 2010. One of the women became pregnant via artificial insemination. The baby was born in February 2013. Shortly after that, the couple split up and the biological mother sought to retain sole custody of the baby since the other woman is neither a biological or adoptive parent to the child. However, since Texas does not recognize same-sex marriages, there is no legal process in place to divorce.
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