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New York High-Stakes Family Law Blog

Divorce involving valuable art collection causes New York stir

Divorce can be an ugly business. Anything charged with the emotions of ending a marriage has the potential to do more damage. Even when partners have come to terms with their emotional issues, many of the lingering problems with divorce come with sharing out the assets that were combined in the marriage.

If people do not disagree on what they brought to the marriage, which is often codified in prenuptial agreements, one part of the problem is solved by people simply leaving with what they came with. Most arguments stem from assets that have been gained or increased during the marriage because there are often more disputes about who is entitled to them.

Do spousal support and maintenance differ?

As you prepare for your divorce proceedings in New York, the issue of alimony will almost certainly come up. You may mention the word "alimony" only to hear terms such as "spousal support" or "spousal maintenance" in response. That is because many view both terms to be synonymous with alimony. While they are indeed similar in many aspects, there are actually differences between spousal support and maintenance. 

Both are meant to provide you with financial support to help maintain the same standard of living that you enjoyed while you were married. New York's Family Court Act places the responsibility on married couples to financially support each other. Thus, if you are unable to support yourself after leaving your spouse, then you may seek spousal support. This is support paid to you while you are still technically married (including during the period of time that you work through your divorce proceedings). 

How to keep a high profile divorce private

When people get divorced, the last thing they want is to feel that their lives are an open book to the public. High profile professionals who wish to shield their family and personal issues from the public may be motivated to keep the divorce confidential. Many divorces in New York have public records, which means that others may be able to gain information that you likely do not want them to have.

Records of divorce proceedings remain public unless a judge agrees to seal them. To protect divorce documents from being open to the public, you will need to file a motion with the court and provide an affidavit that explains how you or family members would suffer if the records were open to public scrutiny. Courts are often hesitant to seal entire cases. Sometimes judges decide on narrowly tailored seals that do not privatize more than the judge deems necessary.

Dealing with the division of a 401k

When significant assets must be dealt with in a divorce case, it is important for people in New York to ensure that every resource is thoroughly researched so that final ruling leaves neither side disadvantaged. One such resource is a 401k. Many go into divorce proceedings failing to realize that 401k contributions made during a marriage are considered to be marital property. Given the earning potential that funds in a retirement account have, the money to be divided from a 401k can ultimately be among quite high.

Yet many often wonder how can a 401k be divided prior to its holder reaching the age of retirement. During property division proceedings, the court can issue a Qualified Domestic Relations Order which authorizes retirement plan providers to make payments to alternate payees. This means that the spouse who was not contributing to a 401k can take the portion of the marital contributions owed to them and use it how they see fit. Most would think that they would be limited in how they can use that money given that early withdrawals from a retirement account invoke a tax penalty. Yet according to information shared by CNBC.com, a QDRO allows a lump-sum withdrawal to be made without any penalties.

Does reporting abuse hurt custody chances?

If you and/or your children experience domestic violence in New York, the most advisable course of action is to protect yourself and them by leaving the home. During the child custody hearing that will likely follow your escape, you may think that if you report the abuse to the court, you will receive custody of your children over your former partner. Unfortunately, the opposite may be true. The Washington Post reports the results of a recent study at George Washington University that found that reporting abusive behavior by a past partner may actually hurt your chances of obtaining custody. 

According to the study, the courts may interpret a report of abusive behavior against a former partner as an attempt at parental alienation. In other words, the perception is that by reporting domestic violence, you may be trying to turn the child against the other parent so that he or she will side with you instead. The study also found that reports of domestic violence tended to disadvantage mothers reporting domestic violence against fathers more often than fathers making reports against mothers, suggesting a gender bias.

Divorcing your partner from an inheritance

Losing a close member of your family can be difficult, but often they leave something behind as an ode to their time in your life. The gift can be very personal, and the last thing you want is to lose any bit of it in a divorce

Inheritance can be a complicated process that is rooted in strong emotional ties. When considering divorce, you don’t want to part with what is rightfully yours, and you may not have to if your inheritance qualifies as separate property.

Paying for college after a divorce

The desire for one's children to go to college is a normal thing for many New York parents. When a couple gets divorced, the potential for a child to get a college education could be at risk unless the costs for this are addressed during the divorce negotiations. Whether a child is five or 15, parents should outline basic provisions and terms for how they will fund a higher education for their child when the time comes.

Forbes explains that parents review a variety of options in their terms, such as preferences for a student to apply only to institutions that are in their home state and that are publicly funded versus privately funded in an effort to keep the costs down. Some families choose to have one parent provide an up-front payment designed to cover their portion of all college costs. This money can be put in a trust fund or other account for safe keeping until it is needed.

Divorce, mortgage and your financial future

It is not uncommon for people in New York to wish they could find a way to keep their homes when they get divorced. A home often has a lot of emotions and memories attached to it, making it difficult for people to view it as simply a piece of property. However, when getting divorced, it is important to assess a house financially.

If one spouse wants to keep the house, they should take care to make sure they can truly afford the house on their post-divorce income. The Mortgage Reports that the person who wants to keep the house should seek a new mortgage that is in their name only instead of keeping an existing joint mortgage. This is the only way that the other spouse can completely sever their financial ties to the home.

When married business owners divorce

It is not uncommon for a married couple in New York to own and operate a business together. The pair might have been married before they formed the business or they may have been business partners who eventually became romantically involved. Either way, there are unique benefits and challenges to running a company with the person you are married to. One of the challenges arises if you end up separating and divorcing from your spouse.

As explained by Forbes, along with deciding who will get the house, when you will each have time with your children, and other matters, you must now also choose what to do with your joint business. Like family homes, some businesses end up being sold to third parties when the owners get a divorce. The proceeds of the business then must be addressed as part of your asset and debt division agreement.

Ex-model tries to challenge her prenuptial agreement

Many in New York may think that asking their fiancees to work together to develop a prenuptial agreement signals doubt about the potential of their marriages to last. yet recent years have seen more and more couples enter into such agreements not expecting to get divorced, but rather to convey to their partners that they have no intentions of profiting off their marriages. In most cases, a prenuptial agreement will both allow the parties entering into a marriage to keep whatever assets they bring in and to stipulate the terms of a settlement should the marriage end. Those entering into them should understand what they are agreeing to in order to avoid being saddled with unfavorable terms. 

Such terms are what the soon-to-be ex-wife of a high-profile celebrity realtor is attempting to challenge as the couple works their way through their divorce case. The woman claims that the marriage ended after only 16 months over a dispute about having children (he, despite having three kids, reportedly was no interested in fathering any more kids). She apparently consented to a prenuptial agreement that would pay her $45,000 month for half the duration of the marriage. Yet after allegedly giving up her career as a model in order to raise his kids, she claims that she should now be awarded temporary spousal support. 

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