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April 16, 2008

Wife Posts You Tube Video

In New York a wife places a You Tube Video about her husband and their divorce. It gains national coverage but attorneys advise that this is not a good idea. See video

Los Angeles Divorce

March 18, 2008

Paul McCartney's Divorce Judgment

Telegraph
By Caroline Gammell and Matthew Moore Download mccartney_judgement.pdf

The judge who heard the Heather Mills and Sir Paul McCartney divorce case has said that Miss Mills was an "inaccurate and inconsistent" witness.
Extracts: Judge's harshest words from the full divorce ruling
The McCartney-Mills judgement in full
Mill's contribution to marriage: an acrylic fingernail
Previously unknown details of the divorce settlement have been made public in Mr Justice Bennett's full judgment, after a court refused Miss Mills's application for secrecy.


Telegraph TV: Outside court Heather Mills yesterday spent 11 minutes attacking the legal system
In it, the judge states that the former model's evidence was "not just inconsistent and inaccurate but also less than candid. Overall she was a less than impressive witness." The judge described Sir Paul evidence as "balanced". He said: "He expressed himself moderately though at times with justifiable irritation, if not anger. He was consistent, accurate and honest." However, Mr Justice Bennett said: "But I regret to have to say I cannot say the same about the wife's evidence.
"Having watched and listened to her give evidence, having studied the documents, and having given in her favour every allowance for the enormous strain she must have been under (and in conducting her own case), I am driven to the conclusion that much of her evidence, both written and oral, was not just inconsistent and inaccurate but also less than candid. Overall she was a less than impressive witness."
The judge said that Miss Mills was a "strong-willed and determined personality" who had shown great fortitude in overcoming her disability.
He said: "She has conducted her own case before me with a steely, yet courteous, determination." He also described her as a "kindly person" who is "devoted to her charitable causes". The decision to make the judgment public is a new blow to Miss Mills, who had wanted the judge's full ruling to remain confidential, arguing that it would compromise their daughter's privacy. Sir Paul had lobbied for it to be released.A summary of the divorce ruling - which left Miss Mills with a fraction of the sum she had demanded - was made public by the High Court yesterday.But her application for an appeal against the judge's preference for releasing the full statement was rejected this morning and the judgment released.
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Miss Mills, who represented herself throughout the divorce hearing, was not at the Court of Appeal to hear the decision.
Sir Paul sealed an emphatic victory over his ex-wife yesterday after a judge awarded her £24.3 million, less than a fifth of the £125 million she had sought from their four year marriage.
While Sir Paul, 65, left the High Court with a smile and no comment, his former wife launched an 11-minute tirade against the British judicial system in front of scores of journalists and the television cameras.
Miss Mills, 40, said the couple's daughter Beatrice, four, was now "meant to travel 'B' class while her father travels 'A' class".
Top ten celebrity divorce settlements
Timeline What they both wanted
In pictures: Epic divorce battle
She alleged that Sir Paul's legal representative Fiona Shackleton had handled the case in the "worst way you could ever, ever imagine".
But the former model insisted she was happy with the ruling and said she would not contest the judgment.
"It was an incredible result in the end to secure mine and my daughter's future and that of all the charities that I obviously plan on helping - because you know it has been my life for 20 years."
The ruling by Mr Justice Bennett was imposed after the couple failed to reach an agreement during a six day hearing last month.
It was disclosed that the ex-Beatle had initially offered Miss Mills £15.8 million, which was rejected.

Warren Shiell is a Los Angeles DIvorce Attorney

March 08, 2008

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March 06, 2008

New York Times article about the role of religion in custody disputes

Published: February 13, 2008

A 27-year-old single mother at the time, Mrs. Snider felt she had ruined her life through a disastrous marriage and divorce. But in her kitchen that night, after reading pamphlets and Bible passages that her boss had pointed her to, she realized she was a sinner, she said, she prayed for forgiveness, and put her trust in Christ.

Four years later, the conservative brand of Christianity Mrs. Snider embraced became the source of a bitter, continuing custody battle over her only child, Libby Mashburn.

Across the country, child-custody disputes in which religion is the flash point are increasing, part of a broader rise in custody conflicts over the last 30 years, lawyers, judges and mediators say.

“There has definitely been an increase in conflict over religious issues,” said Ronald William Nelson, a Kansas family lawyer who is chairman of the custody committee of the American Bar Association’s family law section. “Part of that is there has been an increase of conflicts between parents across the board, and with parents looking for reasons to justify their own actions.” Another factor, he said, is the rise of intermarriage and greater willingness by Americans to convert.

Nobody keeps track of who wins in these religious disputes, but lawyers say that judges are just as likely to rule in favor of the more religiously engaged parent as the other way around. That is because, for constitutional reasons, judges are reluctant to base their rulings primarily on the religious preferences of parents.

Judges do not want to take on custody disputes rooted in religion, said lawyers like Gaetano Ferro, who until recently served as president of the American Academy of Matrimonial Lawyers. Mr. Ferro said, “How will a judge say in any rational fashion that Islam is better than Buddhism, Catholicism better than Judaism, or Methodism better than Pentecostalism?”

As a result, more and more states have tried to keep custody disputes out of court by mandating mediation. But the effect has been piecemeal, and religious disputes have proven to be among the most difficult to resolve, lawyers said.

From the age of 1 month, Mrs. Snider’s daughter had lived with her, and later Mrs. Snider’s new husband, Brian Snider, with occasional visits to her biological father.

But in 2003, when Libby was 6, an Alabama court gave primary custody to her father, William Mashburn, after he and Mrs. Snider’s own family argued that the strict religious upbringing Libby received at her mother’s home, which involved modest dress, teachings about sin and salvation, and limited exposure to popular culture, was damaging her.

“We were easy targets because we were made to look like cultists,” Mrs. Snider, 36, said. “I think whether anyone admits it or not, almost all of the ruling had to do with religion. Nothing I had done was called into question except that.”

Generally, custody disputes are resolved outside the courtroom, lawyers said.

Such cases have increased, however, because a generation ago, mothers almost always got custody and were responsible for nearly all aspects of children’s upbringing. But now, both parents are usually involved in raising children after divorce, and that can lead to dispute. Data regarding custody cases are not uniform, according to the National Center for State Courts, but for 10 states for which it has data from 2002, all show an increase in custody cases coming to trial.

Conflicts sometimes arise when an interfaith marriage dissolves or when one parent converts to a different religion after divorce.

In Oregon, a dispute between James Boldt and his former wife, Lia, was recently decided by the State Supreme Court. Mr. Boldt, the custodial parent, converted to Judaism after the divorce and sought to have their son, now 12, convert, and be circumcised.

The court ruled that custodial parents could generally decide if a child should be circumcised. But given the son’s age, it ordered the lower court to ascertain his wishes. If they conflict with his father’s, the court may have to reconsider the custody arrangement, the court ruled.

Tensions can emerge when one parent takes a turn toward fundamentalism. In 2006, the United States Supreme Court let stand a decision by the Supreme Court of Pennsylvania that permitted Stanley Shepp to tell his 14-year-old daughter about polygamy.

Mr. Shepp and his former wife, Tracey Roberts, were Mormons living in York, Pa., when they married. But Mr. Shepp espoused polygamy as a tenet of their faith.

Ms. Roberts contends that Mr. Shepp spoke to one of her daughters from a previous marriage about marrying him, which he denies. She left Mr. Shepp and has primary custody of their daughter. He was excommunicated by the Church of Jesus Christ of Latter-day Saints for his polygamist views and is now part of a Mormon fundamentalist movement in Utah.

Mr. Shepp petitioned for better-defined custody rights for his daughter, but Ms. Roberts objected because he had exposed the child to polygamist Mormon communities. The court upheld Mr. Shepp’s right to teach his daughter about polygamy, saying it could not find evidence that such teaching harmed her physical or mental health.

Judges risk violating the separation of church and state if they try to choose the faith a child should be raised in, legal experts said. But in situations like Libby Mashburn’s, judgments about parenting can become entwined with religion.

In upholding the rulings of lower courts to grant primary custody to Mr. Mashburn, the Supreme Court of Alabama said the Sniders’s involvement in missionary work took Libby away from her extended family in Alabama. The Sniders are quietly, unapologetically fundamentalist. They believe that American culture, even conservative denominations like the Southern Baptist Convention, has drifted perilously far from biblical teachings. They attend a large Independent Baptist church in Madison, where the music, the sanctuary and the congregants are unadorned and old-fashioned.

Women wear skirts as a sign of modesty. They do not swim in mixed company. They eschew rock music and nearly all popular culture. They do not drink, smoke or swear.

The Sniders have raised Libby, now 11, in that tradition. But it has put them at odds with Mr. Mashburn and Mrs. Snider’s family. Mr. Mashburn and his lawyer declined to comment .

Mrs. Snider said she understood that Libby might wear pants at her father’s home or go to the movies. But she insisted that Mr. Mashburn not swear or drink in front of Libby or expose her to inappropriate movies and music, which, she said, he has repeatedly done.

The Sniders have repeatedly appealed to win back primary custody. They are awaiting yet another decision from a hearing in November.

At the last hearing, Libby, who spends about 40 percent of her time with the Sniders, testified against Mr. Mashburn.

“I’m more of my mom’s religion, and my dad sometimes talks bad about my mom,” she said. “He called it a cult, and it’s definitely not a cult. It kind of makes me mad sometimes. Maybe he thinks her religion may be bad for me, but I think mainly he doesn’t like my mom and is using that as an excuse.”

Some states like California and Connecticut have taken innovative steps to get parents to resolve custody issues outside court. In Connecticut, for example, those seeking a court order have to meet with a family-relations specialist in an effort to negotiate. If that fails, they attend a daylong session to settle their differences before a panel that includes a lawyer and a mental health professional.

Even after a case goes to court, little may be resolved.

Aaron Petty of Minneapolis and Gineen Gove of Black River Falls, Wis., had their daughter, Basyl, 17 years ago. The couple split up when Basyl was 4. Soon afterward, Ms. Gove married, and she and her husband converted to Old Order Amish.

As Mr. Petty saw his daughter over the years, he became concerned, he said, when Basyl was about 11 and he learned that the Goves would not let her go to school past eighth grade, a common decision among the Amish.

Mr. Petty petitioned for primary custody so that Basyl might continue her education. “This case wasn’t about religion for me,” he said. “It was about her education.”

He won the case when Basyl was 14, but she disappeared. Mr. Petty said he suspected Basyl was living within the Amish community. The Goves declined to talk about the case.

“I wanted to offer my daughter options for her future, in case she grew up and didn’t remain Amish,” Mr. Petty said in a phone interview. “At 12, 13, 14, making lasting drastic decisions based on faith isn’t an appropriate time.”

Mr. Petty’s voice caught as he continued. “Was that case worth fighting? In hindsight, no. I haven’t seen my daughter in two-and-a-half years.”

Warren Shiell is a Los Angeles Family Law Attorney

         

February 29, 2008

In First, N.Y. Judge Allows Gay Divorce

In First, N.Y. Judge Allows Gay Divorce

Trial Court Ruling Appears to Be State's First Allowing Divorce From Same-Sex Marriage

gay divorce

In what appears to be the first ruling of its kind, a New York judge will allow a lesbian couple who married in Canada to sue for divorce.

Though New York does not allow same-sex marriages, a state trial court judge refused to dismiss a divorce and child custody suit brought by a woman, identified only as Beth R., against her former partner Donna M. Read article

Warren Shiell is a family law attorney in Santa Monica, Los Angeles, Beverly Hills

February 14, 2008

English Court of Appeal recognizes prenuptial Agreement

English Court of Appeal recognizes prenuptial agreement in Sangster case  Read article

February 13, 2008

Lessen impact of divorce on credit

Lessen impact of divorce on credit

MarketWatch

 

If you're planning to file for divorce this year or are already splitting your assets with your soon-to-be ex-spouse, your credit is likely to take a hit.

Many people don't realize that lenders do not honor court decrees that assign payment responsibilities for joint loans. The mistaken assumption that you're off the hook for financial obligations can result in a series of missed payments that may trash your credit score for years.

This needn't happen if you safeguard your credit before you file for divorce. Consider these tips from John Ulzheimer, author of "You're Nothing but a Number" and an expert at Credit.com, a consumer personal finance site.

If you have joint accounts with your spouse, do your best to turn them into individual accounts so that it will be easier for the divorce court to split up your financial responsibilities. To do that you will need your spouse's permission, which means you're going to have to let the cat out of the bag. But taking these steps now can save you years of credit woes later.

Begin by converting your credit card accounts. People most often miss payments on this type of debt, rather than the loans that keep a roof over their head and wheels under their feet.

Next, work on refinancing your mortgage and your car loan. Granted, this is going to be more difficult, because the bank will want just one person to accept the loan in his or her name -- which may not be possible if that person's salary isn't enough to qualify for the loan. In cases like these, it might be easier to sell the car or the house, split the money and move on. That way, you're guaranteed not to have credit damages caused by a vengeful ex-spouse.

"Remember that when you're getting divorced from your spouse, you're also divorcing yourself from emotional attachment to assets," Ulzheimer said.

You would also be wise to opt out of receiving pre-screened offers for credit or insurance. A spiteful ex-wife or ex-husband may be tempted to apply for a loan in your name just to ruin your credit. Go to the consumer credit reporting industry's official Web site for details: www.optoutprescreen.com/

Finally, start planning for all this at least six months to a year before you file, or as early as possible before the divorce gets ugly. Once any problems begin, you and your embittered other half will have a hard time thinking logically. If this seems like a lot of work at the front end of your separation, remember that it will save you up to 10 years of credit-related headaches in the aftermath.

Warren Shiell is a Los Angeles Divorce Lawyer

First Wives World

This is a great networking site for newly divorced women First wives world

Britney Spears: Why She Lost Visitation Rights, And What Her Case Teaches Us About Family Law

Great article by By JOANNA GROSSMAN , a professor at Hoffstra. Link to article

Britney Spears: Why She Lost Visitation Rights, And What Her Case Teaches Us About Family Law
By JOANNA GROSSMAN
----

Tuesday, Jan. 08, 2008

Is there a celebrity more often called a "train-wreck" these days than Britney Spears? Like a massive pile-up on the highway, Britney's rapid descent from a celebrity mother with two young children, to a divorced mother stripped of visitation completely, has captivated our attention. But the story here is not just about an overwhelmed pop star escalating out of control, but also about the law: What does Britney's case tell us about family law that we (and she) ought to know?

The Facts and Legal Twists and Turns of Britney's Story

I first wrote about Britney Spears in 2004 when she and Kevin Federline married. In a single year, at the ripe old age of 23, Britney had married one man in Las Vegas, annulled her marriage to him 55 hours later, signed an agreement with a second man to have a "fake" wedding ceremony, and then, finally, married him for real. As a law professor, I found that her marriage-hopping was a great tool to teach about the rules governing marriage, annulment, and prenuptial agreements. (I still hand out her petition for annulment in my family law class as an example of how to get out of a "jest" marriage.) Writing about Britney then did not seem terribly voyeuristic; after all, her youthful indiscretions had left few permanent scars on her or anyone else. She and K-Fed were safely married and seemed, at least fleetingly, to be happy.

Since then, however, the story has taken a much darker turn. In just two years, Britney and Kevin became parents to two sons. Two months after giving birth to her second child, Britney filed for divorce in November 2006. In her petition, she alleged "irreconcilable differences" - a no-fault ground for divorce recognized in California. She requested both physical and legal custody of the boys, then ages 13 months and 8 weeks. ("Physical custody" refers to where the child resides; "legal custody" refers to the power to make important decisions regarding a child's health, education and religion. Both forms of custody can be awarded solely to one parent or shared by both.) She asked that each party pay their own legal fees for the divorce, and that no alimony be awarded.

Britney got her divorce - in August 2007 - but ultimately lost on every other issue. The court ordered her to pay Kevin's legal fees (over $100,000), since her earnings dwarf his so substantially, ordered her to pay him alimony, awarded him physical and legal custody of the children, and, very recently, stripped her of all visitation rights.

Through all this legal wrangling, Britney's life again presents a teachable moment - this time about the law of divorce and custody, instead of marriage and prenups - though maybe she is the one who needs the lesson most of all. I'll focus here on the decisions regarding custody and visitation and the legal framework in which those decisions are made.

Lesson #1: Courts, not Divorcing Parents, Ultimately Decide Custody

When Britney first requested sole custody in her divorce petition, she had a very good chance of getting it. Even though it has been held unconstitutional for courts to assume mothers make better parents or automatically award them custody, women still end up with sole or joint custody 90 percent of the time. This is especially true when children are young, even more so for infants. Kevin also seemed a less likely choice at that time since he had two other out-of-wedlock children and a fledgling career as a performer.

But Kevin did not just roll over. In his response to her divorce petition, he also asked for sole custody of the couple's sons. And with that response, a custody battle ensued.

Who normally decides the custody issue? Ultimately, the decision of where a child should live following divorce and whether one or both parents should have decision-making power is a question for the court.

In an intact family, parents are entitled to make these decisions without governmental intrusion. Indeed, there is a long line of U.S. Supreme Court cases holding that parents have a constitutionally-protected right to make decisions about the care and custody of their children without governmental intrusion. It is the rare case in which the government has a sufficiently compelling reason to overturn the decision of a parent about a child's upbringing. But divorce literally changes everything.

In divorce, the state's parens patriae power - the power to be a sort of super-parent - comes to life as it stands over the divorcing parents to look out for the child. By statute, in every state, the court must ensure that custody decisions reflect "the best interests of the child." This does not mean that the parents have no say in the custody decision, however.

A parent who does not want custody will be unlikely to have it forcibly imposed upon him or her, for example, unless there is no other available parent. And if both parents want custody, they are free to try and negotiate the issue themselves. In the vast majority of cases, custody awards reflect an agreement negotiated by the parties. (Most states do not permit couples to resolve custody conflicts too far in advance, such as in a prenuptial agreement; custody agreements must generally be made in anticipation of separation or divorce.) However, courts have the responsibility to review all such arrangements to make sure they meet the best-interests-of-the-child standard - and to give them the imprimatur of law by issuing a custody "order." Still, if the parties reach a reasonable agreement regarding custody and visitation, courts are unlikely to alter their agreed-upon terms.

When the parties do not agree, however, all bets are off. Custody battles can be long, drawn-out, nasty affairs that cost a fortune. But when there is a custody battle, who wins? To receive custody or visitation, a parent must be considered legally "fit." An unfit parent can have parental rights temporarily suspended or permanently terminated. In most custody cases, however, the battle is between two parents who meet this minimum standard of competence. Then, the custody decisions turns on the desires of the parents, their respective abilities and deficiencies, the particular needs of the child, and a long list of other relevant factors. A court has a lot of flexibility to tailor a custody arrangement to a particular situation - it can order joint physical or legal custody, or sole custody to one parent with visitation for the other, and the particular details of any of these arrangements can vary.

In the end, the court decides whether a parent gets custody or visitation and on what terms. Before their divorce became final, Britney and Kevin shared custody of their sons. They privately agreed to this arrangement, and the court gave legal effect to their agreement pending a final ruling. Since then, of course, that arrangement has been greatly altered.

Lesson #2: Parental Behavior Matters in Custody Battles

Among the factors considered in custody cases is parental behavior. It used to be the case that courts would think nothing of stripping a parent of custody or visitation rights simply because they violated a societal norm by, for example living with someone outside of marriage or engaging in same-sex behavior. Courts no longer use custody rulings as an excuse to police parental compliance with such societal norms, but they do - and should - still take into account parental behavior to the extent it bears on the health or well-being of a child. The so-called "nexus" test followed in most states asks whether a particular type of parental conduct has caused, or is likely to cause, physical or emotional harm to a child. If the answer is yes, then the court may set or modify custody arrangements accordingly.

Why is this relevant to Britney's case? Because after Kevin filed his competing request for custody - suggesting that the parties did not agree about the appropriate custody arrangement, and thus that there might be a courtroom battle - Britney seemed to devote herself to conduct that might jeopardize her plea for custody. She was vilified in the tabloids and elsewhere for a whole host of behaviors - everything from appearing in public one too many times without underwear, to shaving her head, to fleeing the scene after hitting someone's car in a drugstore parking lot.

Of the things she has allegedly done, only some are potentially relevant to the custody case. While many of Britney's missteps will probably cause embarrassment to her children someday, when they grow up and discover an archive of US Weekly magazines, that's not the sort of harm courts worry about too seriously. Her hit-and-run accident? Probably also not relevant, because this behavior, while illegal, does not directly jeopardize her children's well-being. Driving without a California driver's license? Definitely not, since being licensed in the wrong state does not affect her ability to drive safely, whether or not it violates the law.

But Britney's behavior did become relevant, for it also involved allegations of alcohol and drug abuse, since children could certainly be endangered by a parent's lack of sobriety, and driving her children around without car seats, as photographs showed. These allegations, if proven, certainly satisfy the nexus test used in custody matters. Indeed, based on the court's recent finding that she is a "habitual, frequent and continuous" user of alcohol and controlled substances, it ordered Britney to submit to random drug and alcohol testing twice weekly, beginning in September 2007. The court also ordered her to meet with a parenting coach, enroll in a "parenting without conflict program," and refrain from using alcohol or drugs when with her children.

Lesson #3: Britney: The Paparazzi Are Not the Only Ones Watching Your Every Move

One last, hard lesson for divorcing parents is this: There is no such thing as a permanent custody order. Until children reach the age of majority, the court has jurisdiction to enforce and modify its orders regarding custody, visitation and child support.

What this means is exactly what we have seen with Britney and Kevin: when new allegations are made about parental fitness, or anything else relevant to custody, the court can revisit its orders and change them as appropriate. Although courts tend to require a "change of circumstances" in order to relitigate the basic question of who gets custody, it has the power to take another look when the need presents itself.

It is this ongoing scrutiny by the court - not just by the paparazzi and the millions of Americans who follow celebrity news - that left Britney vulnerable to her current fate: losing contact with her children altogether. She first lost shared custody last October; shortly thereafter, she also temporarily lost visitation rights for failing to comply with court orders regarding alcohol and drug testing. She regained visitation rights shortly thereafter, but only on the condition that the visitation be "supervised," which means that an approved third party had to be present every minute when she visited her sons.

Britney has now lost visitation rights completely once again. Given courts' strong presumption that children should continue to have meaningful contact with both parents following divorce, the complete denial of visitation is serious business. Britney allegedly refused to turn her children over to Kevin's bodyguard at the end of a visit, became hysterical, and was hospitalized. A court then temporarily suspended her visitation rights with her sons. Britney's custody lawyer has also filed a request to be removed from the case, stating that her inability to communicate with her client was hampering the representation.

Britney's younger sister, pregnant at 16, with a mother who is alleged to have sold that news to a tabloid for a million dollars, may soon give Britney a run for her money in the train-wreck department. But, for now, the title is all Britney's . The good news, in the custody arena, is that a denial of visitation can be reversed just as easily as it is instituted. Courts want fit parents to be involved with their children. So if Britney could just shape up and get her life under control, she should be able to re-establish legal contact with them. The question now is not a legal one, but a factual one: Can she?

Warren Shiell is a Divorce Lawyer in Los Angeles

October 18, 2007

Dancing Bird

Nothing to do with family law but this you tube clip is hilarious dancing bird

September 01, 2007

Estate planning and community property law

An excellant post from the California Estate Planning Blog about what rights a spouse has to the surviving spouse's community property and separate property upon death. article

August 26, 2007

Economists predict fall in median housing price

From New York Times, August 25, 2007

Economists say the decline, which could be foreshadowed in a widely followed government price index to be released this week, will probably be modest — from 1 percent to 2 percent — but could continue in 2008 and 2009. Rather than being limited to the once-booming Northeast and California, price declines are also occurring in cities like Chicago, Minneapolis and Houston, where the increases of the last decade were modest by comparison.

The reversal is particularly striking because many government officials and housing-industry executives had said that a nationwide decline would never happen, even though prices had fallen in some coastal areas as recently as the early 1990s.

While the housing slump has already rattled financial markets, it has so far had only a modest effect on consumer spending and economic growth. But forecasters now believe that its impact will lead to a slowdown over the next year or two.

“For most people, this is not a disaster,” said Nigel Gault, an economist with Global Insight, a research firm in Waltham, Mass. “But it’s enough to cause them to pull back.”

In recent years, many families used their homes as a kind of piggy bank, borrowing against their equity and increasing their spending more rapidly than their income was rising. A recent research paper co-written by the vice chairman of the Federal Reserve said that the rise in home prices was the primary reason that consumer borrowing has soared since 2001.

Now, however, that financial cushion is disappearing for many families. “We are having to start from scratch and rebuild for a down payment,” said Kenneth Schauf, who expects to lose money on a condominium in Chicago he and his wife bought in 2004 and have been trying to sell since last summer. “We figured that a home is the place to build your wealth, and now it’s going on three years and we are back to square one.”

On an inflation-adjusted basis, the national median price — the level at which half of all homes are more expensive and half are less — is not likely to return to its 2007 peak for more than a decade, according to Moody’s Economy.com, a research firm.

Unless the real estate downturn is much worse than economists are expecting, the declines will not come close to erasing the increases of the last decade. And for many families who do not plan to move, the year-to-year value of their house matters little. The drop is, of course, good news for home buyers.

It does, however, contradict the widely held notion that there is no such thing as a nationwide housing slump. A 2004 report jointly written by the top economists at five organizations — the industry groups for real estate agents, home builders and community bankers, as well as Fannie Mae and Freddie Mac, the large government-sponsored backers of home mortgages — was typical. It said that “there is little possibility of a widespread national decline since there is no national housing market.”

Top government officials were more circumspect but still doubted that the prices would decline nationally. Alan Greenspan, the former Fed chairman, said the housing market was not susceptible to bubbles, in part because every local market is different.

In 2005, Ben S. Bernanke, then an adviser to President Bush and now the Fed chairman, said “strong fundamentals” were the main force behind the rise in prices. “We’ve never had a decline in housing prices on a nationwide basis,” he added.

But Global Insight, the research firm, estimates that the home-price index to be released Thursday by the Office of Federal Housing Enterprise Oversight, a regulatory agency, will show a decline of about 1 percent between the first and second quarter of this year. Other forecasters predict that the index will rise slightly in the second quarter before falling later this year.

In all, Global Insight expects a decline of 4 percent, or roughly 10 percent in inflation-adjusted terms, between the peak earlier this year and the projected low point in 2009. In California, prices are expected to decline 16 percent — or about 20 percent after taking inflation into account.

The government’s index, which compares the sales price of individual homes over time, is intended to describe the actual value of a typical house. Since the index began in 1975, it has slipped from one quarter to the next on a few occasions, but it has never fallen over a full year.

Another index dating back to 1950, calculated by Freddie Mac, has also never shown an annual decline. Price data published by the National Association of Realtors, based on the prices of houses sold in a given year, have also never declined. According to the association, the median home price is now about $220,000.

Mr. Schauf and his wife, Leslie Suarez, put their condo in the Sheridan Park neighborhood of Chicago up for sale shortly before moving to Texas last year so he could take a new job. They bought the two-bedroom unit in September 2004 for $255,000, with a 5 percent down payment. They redid the floors, installed new window treatments and repainted the walls.

They said they expected the condo to sell quickly. Instead, they have cut the price several times and have yet to receive an offer. The current list price is $279,000, though they expect to settle for less.

Without the money for a new down payment, they are renting an apartment in Austin. They also expect the monthly payment on their adjustable-rate mortgage to go up $200 in October.

Ms. Suarez, who grew up in the Dallas-Fort Worth area, says she is not as surprised because she remembers home prices falling after the oil bust in the late 1980s. “Growing up in Texas, real estate has never been a windfall,” she said. “For me, I always just wanted to break even.”

Housing prices have previously declined for long stretches in various regions. Most recently, prices fell in California and in the Northeast during the recession of the early 1990s.

The current slump is different from that one, though, in both depth and breadth. In fact, the national median price rose only slightly faster than inflation from 1950 to the mid-1990s.

But as interest rates fell and lending standards became looser, prices started rising rapidly in the late 1990s, even in places like Chicago, which had rarely seen a real estate boom. The result was a “euphoric popular delusion” that real estate was a can’t-miss investment, said Edward W. Gjertsen II, president of the Financial Planners Association of Illinois. “That’s just human nature.”

Many families are clearly richer because of the boom. In the Old Town neighborhood of Chicago, the town house that Ian R. Perschke, a technology consultant, and Jennifer Worstell, a lawyer, bought in late 2004 has appreciated more than 30 percent, they estimated. The gain was big enough to allow them to take out a larger mortgage and renovate two rental units in the house. But Mr. Perschke said he understood that he was “not going to see that appreciation over the next three years.”

Prices in Chicago peaked in September 2006 and have since dipped 1.7 percent, according to the Case-Shiller home-price index, which is tabulated by MacroMarkets, a research firm.

For all the attention that the uninterrupted growth in national house prices received, some economists argue that it was misplaced. The Case-Shiller index, which many experts consider more accurate than the government measure, did show a drop in prices in the early 1990s. (Unlike the government’s measure, it includes mortgages of more than $417,000, which are not held by Fannie Mae or Freddie Mac.)

After adjusting for inflation — the most meaningful way to look at any price, economists say — even the government’s index fell in the early 1990s.

Dean Baker, an economist in Washington who has been arguing for the last five years that houses were overvalued, said the idea that house prices could go only up had fed the bubble.

“It was very misleading,” said Mr. Baker, co-director of the Center for Economic and Policy Research, a liberal research group. There are a lot of people, he said, who bought “homes at hugely inflated prices who are going to take a hit. You also have a lot of people who borrowed against those inflated prices.”

Perhaps the most prominent housing booster was David Lereah, the chief economist at the National Association of Realtors until April. In 2005, he published a book titled, “Are You Missing the Real Estate Boom?” In 2006, it was updated and rereleased as “Why the Real Estate Boom Will Not Bust.” This year, Mr. Lereah published a new book, “All Real Estate Is Local.”

In an interview, Mr. Lereah, now an executive at Move Inc., which operates a real estate Web site, acknowledged he had gotten it wrong, saying he did not fully realize how loose lending standards had become and how quickly they would tighten up again this summer. But he argued that many of his critics have also been proved wrong, because they were bearish as early as 2002.

“The bears were bears way too early, and the bulls were bulls too late,” he said. “You need to know when you are straying from fundamentals. It’s hard, when you are in the middle of the storm, to know.”

August 24, 2007

California Supreme Court states that family court may not restrict oral testimony

The California Supreme Court has invalidated a county court rule that required divorce trials be submitted on written declarations and prohibited oral testimony except in “unusual

circumstances.”  The rule also required parties to establish in their pretrial declarations the admissibility of all exhibits they sought to introduce at trial. A divorce litigant whose evidence was excluded because he had failed to establish its admissibility in the pretrial stage challenged both sets of rules.  Download elkinssupreme_court_decision.pdf

August 22, 2007

CBS Television's Early Show airs series on divorce

CBS News' Early Show is running a series on divorce.  Articles and videos available on their website that professors may find useful in their teaching include:

Putting An End To Divorce Wars.  Reconcilable Differences: Some Couples Seek Mediation, Not Litigation, To Keep The Peace.  article

Divorce Among Senior Couples.  Deirdre Bair, author of "Calling It Quits: Late-Life Divorce And Starting Over," speaks with Harry Smith. video

How Divorce Wars Take A Toll On Kids. Children Are Often Caught In The Middle Between Feuding Parents article

Making divorce easier on kids article
 

July 17, 2007

Transferring IRAS in a Divorce

IRAs and Divorce From Divorce Magazine

If you're transferring your interest in an IRA to your (former) spouse, you could get hit with extra tax and penalties if the transfer is not made correctly. Here's the right way -- and a couple examples of the wrong way -- to transfer these funds.

By Bruce L. Richman, CPA, ABV, CVA

We have all heard about "substance over form", but when it comes to transferring IRAs, it is "form over substance". The IRS is very clear that an early distribution from an IRA is subject to a 10% penalty as provided in Section 72(t) of the Internal Revenue Code ("IRC"). The IRC also provides that any amount distributed from an IRA "...shall be included in gross income by the payee or distributee, as the case may be, in the manner provided under IRC Section 72". However, the IRC does provide for an exception -- which is contained in IRC Section 408(d)(6) -- whereby a transfer of an individual's interest in an IRA to his/her spouse or former spouse under a divorce or separation instrument is not considered a taxable transfer. This exception only applies if the following two requirements are met:

(a) there must be a transfer of the IRA participant's interest in the IRA to his/her spouse or former spouse; and
(b) such transfer must have been made under a divorce or separation instrument.

It is important to note that IRC Section 408(d)(6) deals with the "transfer" of an individual's interest in an IRA and does not deal with "distributions" from an IRA.

If, as part of the divorce or legal separation, you are (or your client is) required to transfer some or all of the assets in a traditional IRA to your spouse or former spouse, there are two commonly used methods to effect this transfer. IRS Publication 590 describes the two methods for transferring an interest in an IRA tax-free as follows:

(a) "Change the name on the IRA" -- if you are transferring all of the assets of the IRA, you can simply make the transfer by changing the name on the IRA from your name to the name of your spouse or former spouse.
(b) "Direct transfer" -- simply direct the trustee of your traditional IRA to transfer specific assets to the trustee of a new or existing IRA set up in the name of your spouse or former spouse.

This appears to be straightforward, but these simple rules often are not followed, and problems arise. This is illustrated in two recent tax cases, which demonstrate the importance of "form over substance". In Jones v. Commissioner TC Memo 2000-219, the taxpayer had an IRA. In 1992, the taxpayer and his wife filed for divorce. In April of 1994, the husband and wife drafted a marital settlement agreement requiring the husband to transfer his IRA to his wife as part of the property settlement. In May of 1994, the husband cashed out his IRA (he received a check for $68,000) and endorsed the check he received to his wife. The IRS sought to have the $68,000 included in the taxpayer's income for 1994. It was the Court's opinion that the endorsement of the check to the wife was not a "transfer" of the husband's interest in the IRA, because his interest in the IRA was depleted at the time he withdrew the funds. It is important to note that the fact that the check for the IRA balance was endorsed rather than deposited into the husband's account did not affect the outcome of the case. The courts stated that the transfer of IRA assets by a distributee to a non-participant spouse does not constitute the "transfer" of an interest in the IRA under IRC Section 408(d)(6). The purpose of IRC Section 408(d)(6) was to offer a means to avoid having the interest transferred treated as a distribution. It does not permit the IRA participant to allocate to a non-participant spouse the tax burden of an actual distribution.

Following the same logic was the case of Bunney v. Commissioner 114 TC No. 17 (April 2000). The husband and wife, both residents of California, a community property state, were divorced in 1992. Per their divorce settlement, the husband's IRA, which was funded with contributions that were community property, was to be divided equally between the husband and wife. The husband withdrew the $125,000 balance of his IRA and deposited the proceeds into his money-market savings account. During the same year, he transferred $111,600 to his former spouse as part of divorce settlement. Mr. Bunney only reported $13,400 of the IRA distribution on his 1993 federal income tax return.

Just as in the Jones case, the main issue revolved around the question of whether the husband's gross income should include the distributions he received from his IRA. Again, the Court turned to the two requirements that must be fulfilled in order for the exception of IRC Section 408 (d) (6) to apply, and again the husband did not satisfy the first requirement calling for a 'transfer" of the IRA interest to the spouse. Mr. Bunney cashed out his IRA, deposited the funds into his money-market savings account, and then paid his former spouse some of the proceeds.

As demonstrated by these two cases, the simple "form over substance" is important in transferring an IRA tax free pursuant to a divorce or separation agreement. An easy way to avoid any potential problems is to have the actual transfer papers made available and incorporated into the divorce settlement. A mishap with the form of the transaction can have significant tax consequences.


Since 1980, Bruce Richman (CPA/ABV, CVA, CDFA™) has been actively involved in valuations, mergers and acquisitions and other financial and tax consulting matters. He is a Managing Director of Trenwith Valuation, LLC and until June 2004 was Partner in the Business Valuation Consulting Services Group for BDO Seidman, LLP.  In his current position, Mr. Richman is responsible for various valuation projects and consulting services in the United States and, for U.S. clients, internationally.    You can read about his firm in his Divorce Magazine profile or visit his website at www.trenwith.com/valuation/. or visit his website at .

June 19, 2007

When Bankruptcy Meets Divorce

From Forbes Magazine, Written by Marlene M. Browne Esq.
Link
Just over two years ago, President George W. Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005, which became effective Oct. 17, 2005. If you are getting divorced, this new bankruptcy law could concern you. Reason: While you may not realize it, in this country, our high divorce rate and bankruptcy commonly intersect. Here’s how. Until the enactment of the BAPCPA, the bankruptcy process was seen by some, and used by many, as a tool to permanently evade (or, to use bankruptcy terminology, “discharge”) family obligations foisted upon them by agreement or court order after a marital dissolution. Plus, once a person filed a bankruptcy petition--for liquidation under Chapter 7 or reorganization under Chapter 13 (or, less commonly, Chapter 11)--he gained the protection of an “automatic stay,” preventing creditors from taking any actions against him, his income or his property to collect their debts.

If the “debtor’s” income was less than the sum needed to maintain his lifestyle, including debt service, he would generally opt for the Chapter 7 liquidation, taking advantage of whatever homestead and property exemptions his state allowed, thus protecting his assets from creditors. If any nonexempt property existed, the bankruptcy trustee would liquidate it to pay secured creditors first, with unsecured creditors, such as ex spouses (who lacked collateral or guarantees) at the back of the line.

While Chapter 7 liquidation was not a means to avoid a mortgage or shirk taxes secured by liens, it did provide the debtor a clean slate, free from pesky consumer debt--credit cards, loans from friends and family, legal or medical bills--and whatever equitable distribution payments he couldn’t comfortably afford. Plus, if a person happened to live in Florida, Iowa, Kansas Oklahoma, South Dakota or Texas, he could really make out like a bandit because these states had (and still have) limitless homestead--and generous property--exemptions.

Consequently, for the cost of a court filing and the administrative fees of the bankruptcy proceeding (the trustee’s fees, typically a minor percentage of the value of the “estate,” i.e., nonexempt property existing when the petition is filed), one could continue to own and enjoy, post discharge, a multimillion-dollar residence--provided he paid the mortgage.

On the other hand, if a person had sufficient income to pay his debts over time, but needed a breather to call off court actions and collection efforts--or he didn’t want to liquidate his nonexempt property (which, in the Atlantic Coast states, with little to no homestead exemptions, could be substantial)--he could file a Chapter 13 “reorganization” plan, allowing him to pay his debts (or some fraction of them) under a court-approved plan, over a period of three to five years. Once completed, the person emerged debt free, with a fresh start (and a blot on his credit report for 10 years). Still for many, the calculus of the decision made sense.

But that was then, this is now. Since Oct. 17, 2005, to automatically qualify as a Chapter 7 filer, you must make less than the median income in your state, given the number of people in your household. If your income equals or is greater than the median for your state, you still might qualify as a Chapter 7 filer, depending on whether you can afford to pay $100 to $166 per month, over the course of five years, to your unsecured creditors.

If you make too much money to qualify for Chapter 7, and you meet the requirements for a Chapter 13 (you have regular income and your secured debt is less than $922,975, and your unsecured debt is less than $307,675), you can seek relief from your creditors under a reorganization plan. After the specified three or five years of paying under the court-approved plan, you’ll have canceled debts without the typical tax consequences. No matter which Chapter you file under, BAPCPA requires that you obtain credit counseling and participate in special debt management programs.

Perhaps even more important than the means test and mandatory financial management education is the fact that BAPCPA has made it much more difficult for debtors to shirk domestic relations responsibilities. Unlike the old law (BRA) which, as amended in 1984, allowed debtors to discharge nonsecured property settlement obligations to former spouses (think payouts for businesses, professional practices, or other assets distributed in a divorce), the new law forbids this. Now, any domestic support obligation “DSO” becomes a “first priority claim,” ineligible for discharge.

Still, scholars see potential areas of abuse. If you have a property agreement or divorce decree wherein your ex assumes existing marital debt (outstanding credit cards run up during your marriage) and agrees to pay the credit card companies directly--“holding you harmless” in the meantime--beware. That obligation might be subject to discharge or reduced payment under the new bankruptcy law. Why? Payments made to a third party, i.e., someone other than, “a spouse, former spouse or child of the debtor” might not receive protection under the new 11 U.S.C. 523(a) (15). (For an excellent article on the details of this danger, log on here.)

On the other hand, any obligation undertaken in a divorce, owed to a third party and in the nature of support (say, an ongoing mortgage or auto loan) is probably safe from discharge under BAPCPA. Best idea: Insist on having your spouse pay old, nonsecured consumer debt, directly, from his--or her--share of money received from the sale of a house or distribution of other assets at the time of the divorce. A promise to pay is nice, but security (or cash) is king.

BAPCPA also provides “domestic support obligations” first priority status over other nonsecured debt. (But, this fact might not be as useful as it sounds as BAPCPA expands the reach and strength of secured creditors. So, it’s possible less will be left for all unsecured creditors, regardless of priority status.) Furthermore, the automatic stay provisions of the code no longer apply to divorce or support actions filed in state courts. Though you won’t be able to divide the debtor’s property, you will be able to address support, domestic violence and custody matters without having to appear in federal bankruptcy court to “lift” the stay.

Also, under BAPCPA, a bankruptcy filing won’t affect your rights to receive support via wage garnishment or other common collection means. Likewise, pre-filing payments of domestic support obligations to a spouse (so-called “pre-petition transfers”) won’t be “voidable” as preferential payments. Plus, per BAPCPA, no payment plan debtor will receive an order of discharge until he or she confirms that all domestic support obligations are current.

What’s more, BAPCPA requires a debtor to reside in a state more than 40 months before he or she files for bankruptcy protection to take advantage of that state’s exemptions; thus eliminating “forum shopping,” where debtors moved to states like Florida or Texas just before filing bankruptcy petitions, in an effort to convert nonexempt property into an exempt homestead, wiping out their nonsecured debt in the process.

So much for the debtor. As a DSO creditor in the age of BAPCPA, you will receive notice from the trustee of your rights to collect support through federal enforcement agencies. You will also receive the most recent address of the debtor, where he works and details about other affirmed creditors remaining after the bankruptcy action.

While BAPCPA can make life more difficult for those who have suffered from sudden unemployment, sickness or other misfortune, it’s probably the best thing to have happened to unsecured divorce creditors since 1898. Still, BAPCPA is recent law and courts have yet to settle all the issues arising from its new provisions. If your ex files for bankruptcy protection, consult with an expert. Ask how to protect your DSO (domestic support obligation) creditor’s rights by filing any necessary adversary complaints or proofs of claims. For instance, under a Chapter 13 plan, a debtor can still escape paying some, or all, accumulated support arrears, so you must be vigilant.

And, don’t forget to obtain copies of all the debtor’s bankruptcy schedules (disclosing his income, real and personal property, and the like). As BAPCPA provides the possibility of using exempt property to collect what you are owed as a nondischarged creditor, these schedules will be a rich source of useful information. Happy hunting.

Written by Marlene M. Browne Esq.
La-familylaw.com



May 10, 2007

What Bruce, Demi and her toyboy can teach us all about divorce?

By HELENA FIRTH POWELL - Daily Mail article
There was uproar among my divorced friends last week when Demi Moore was seen canoodling with her new husband Ashton Kutcher in front of her old husband Bruce Willis on a boat.

Most older (and balder) former husbands would have thrown the young whippersnapper off the boat, along with the ex-wife, or, at least, chosen to do a spot of deep-sea fishing with someone they weren't related to by divorce.

"It's outrageous," said a friend who would no sooner go fishing with her former husband than jump in the Thames (actually, I think she'd probably prefer the latter).

"What on earth are they thinking about? They're divorced, why are they hanging out together? They may as well have stayed married."

When I saw the picture, my first thought was: if they're kissing and Bruce is fishing, who's driving the boat?

But after that I thought: good on them. As a child, I watched my mother get divorced acrimoniously three times and, frankly, it's not much fun.

Daisy unmasked... the woman behind Daisy Dooley breaks cover
So are all men just great big babies?

It might stick in the craw for many people to see this threesome so relaxed together, but it's better than a life consumed by bitterness and jealousy.

What couples with children tend to do when they get divorced is focus so much on their mutual loathing that they forget the most important thing: the children. And how much better is it for them if you all get on?

As a result of my mother's divorce from my father, I didn't see him again after they split -when I was three - until I was 14.

When they first split up, there was no communication, apart from a note to my father to tell him that since she'd remarried,

I had stopped looking like him. Needless to say, this didn't go down well, hence the long silence.

Even after I met him when I was 14, our relationship was patchy.

Shortly after my mother left my father, we moved from Rome to Britain, where she took up with an artist who became her second husband.

She came to dread his argumentative character and six years later he left for Morocco and that was the end of that.

After their divorce, he put up more of a fight than my father did to stay in touch with me.

In some ways, this was admirable; I wasn't even his natural daughter. But to be honest, it felt as if they were fighting each other through me, rather than fighting for me.

There was a custody battle and court case. I had to give evidence, aged nine. All I really wanted was for them to stop fighting.

I remember standing in court looking around me and thinking: "How is it possible that these people once loved each other?" I just couldn't believe the hatred flying around.

Not long after, my mother took up with her third husband, but though they were together for years, it was doomed to failure. In the end, she felt she had to get away.

Strangely enough, it was that third divorce that caused the reunion with my mother's first husband. He provided the cash for us to escape.

Perhaps, not unnaturally, having witnessed such divisive and ugly conflict three times over, I vowed never to get divorced. So far, so good.

My husband, though, has been divorced and has two children from his previous marriage.

Rather like my stepfather, I got to know them when they were very little. But unlike my stepfather and mother, my husband and his ex-wife get on well. I get on very well with her, too. In fact, so do my children.

My stepdaughter Julia and I have a lovely relationship; whenever I can, I take her out shopping or to a film. Last year, we went to see the musical Mamma Mia!

After the show, her mother met us to take Julia home. As she drove off, she said: "Thanks for taking her, she had a lovely time." How much better is that than bitterness and acrimony?

The attitude my husband and his ex-wife took when they split up was that for the children's sake, it's not worth falling out.

Of course, that means sacrifices and compromises on both sides, but if children are involved I think parents have an obligation to make them.

How much nicer is it to see your parents get on like Demi and Bruce than to see them fighting like David Hasselhoff and his ex-wife Pamela.

The fact is that when parents fight, it's the children that suffer.

A friend from university lived, until the beginning of this year, in a beautiful big house in Gloucestershire with her husband and two sons.

She was a lawyer until the children were born and he works in insurance. They were well off enough to send their boys

aged nine and 11 to a rather smart prep-school. They almost worse. had nice holidays in France, gave Sunday lunch parties and drove an Audi and BMW respectively.

Then disaster struck. My friend decided she was bored, unfulfilled and miserable. She had an affair with a pub landlord.

Her husband found out and vowed he would never forgive her.

My friend was probably wrong to have an affair, but what they both did next was

They sold the beautiful house because they couldn't agree on who was going to live there.

Once the mortgage was paid off, they ended up with £450,000.

Then they started arguing about who should get the cash. They spent most of the money fighting about it.

Instead of a beautiful farmhouse, my friend now lives with her two sons in a semi-detached house on an estate, which was all she could afford once the court battle was over.

Her former husband lives with his new girlfriend in similarly surroundings. So it's probably just as well the boys have been taken out of the prep school.

They have lost not only the life they knew, but their home and school. For what?

Divorce is never nice. As my stepfather used to say: "Be careful about moving in with anyone. People move in together very easily, but they only ever split up if things get really bad.

"No one can face going through their record collection unless they have to."

I don't remember my mother's marriage to my father, but I remember the other two, and things did get bad before she gave up on the relationships.

Maybe in any divorce there has to be a period of hatred, followed by a cooling off, which can then be followed by a lasting friendship.

If there are children involved, it's crucial to aim for friendship in the long run.

If you don't, the only people you really end up hurting are your children. You may get over your divorce, but will they?

May 09, 2007

Chicago divorce ad criticized

  ABC News

The woman behind the nation's most controversial divorce billboard defended herself and her ad Tuesday night in an interview with ABC News, while across town a politician on his last day in office ordered that the sign be taken down because of a lack of a permit.

The ad, a 20-foot-high billboard reading "Life is Short. Get a Divorce," sparked a viscerally negative reaction from lawyers, marriage counselors and the public. It seemed everybody had something to say about the sign perched above a trendy Chicago neighborhood -- even the ladies from the "The View" sounded off on the sign.

The woman behind the nation's most controversial divorce billboard defended herself and her ad Tuesday night in an interview with ABC News, while across town a politician on his last day in office ordered that the sign be taken down because of a lack of a permit.

The ad, a 20-foot-high billboard reading "Life is Short. Get a Divorce," sparked a viscerally negative reaction from lawyers, marriage counselors and the public. It seemed everybody had something to say about the sign perched above a trendy Chicago neighborhood -- even the ladies from the "The View" sounded off on the sign.

      

Read article

March 20, 2007

Senate Strikes Down Divorce Bill for Getting a Get

The Senate voted against a bill that sought to remove religious barriers that prevent Orthodox Jewish women from remarrying after getting divorced.

The law would have forced Orthodox Jewish men who are involved in a divorce to grant their wives “gets,” which allow their former wives to remarry as Orthodox Jews.

The bill was the subject of much controversy, as some believed it was seeking to interfere in a purely religious matter, while some believed the matter to be one of women’s rights.

The Bill

Sen. Lisa A Gladden (D-Baltimore), the bill’s sponsor, said that the bill was not about religion, but “about fairness. It’s a women’s rights issue.”

Gladden said she sponsored the bill for the Orthodox Jewish women who claim they are unable to obtain divorces because their husbands won’t grant them gets.

Gladden said it was a matter of fairness and equity. “If you’re coming to the courts, you have to come with clean hands,” she said. “This is [a] women’s rights issue,” she added.

“The rule is a sexist rule” and the women “are in a bad situation,” said Sen. Jamie Raskin, D-Montgomery. “I feel for them … [but] … it is completely and wholly a religious rule.”

Get?


Under Orthodox Jewish law, a legal divorce does not end a marriage. To officially end it, the husband must give the wife a get. In some cases, a husband will refuse to grant the wife a get, which makes it impossible for her to get remarried as an Orthodox Jew.

The Bill’s Opposition

“We see this as state intrusion on a religious matter,” said Sen. Rhona Kramer, D-Montgomery, quoting from a Jewish newspaper. Kramer, who is Jewish herself, said the bill was well-intentioned, but that “we will be using a civil law to force someone to perform a religious act.”

 

Women Increasingly Paying Alimony

Women Increasingly Paying Alimony by Betsy Schiffman from Forbes Magazine.Article
The picture of equality looks awfully strange to Kim Shamsky. The 47-year-old business owner pays her ex, a 65-year-old retired Major League Baseball player, thousands per month in temporary spousal support. He's not seeking alimony to help pay for the kids' birthday parties, since they don't have children. Nor was he instrumental in building her business. They married seven years after she started a handful of staffing firms and amassed a small fortune on her own. The daughter of a New York City taxi driver, Shamsky started her first staffing agency at age 27 with the help of a 21% loan. Not only was she able to make her first business profitable, but she's also worked furiously to ensure the success of all five businesses she's started since. Small wonder she is outraged at having to pay thousands of dollars a month to her ex. "He used to scream and throw tantrums and demand more money," Shamsky says of her ex-husband. "It was like he thought, 'Hey, you have money, why shouldn't I?'" She adds flatly: "I will never marry again. And I'm getting T-shirts made with the word 'prenup' written across the chest." No doubt Shamsky would find more than a few buyers for the shirts. The idea that men can receive spousal support from their wives may feel like a freakish concept, but as women have become higher earners, it's increasingly common. And as men set their sights on women's earnings, women have become more protective of those dollars. In fact, according to the American Academy of Matrimonial Lawyers, 44% of attorneys included in a recent survey said they've seen an increase in women asking for prenuptial agreements over the last five years, where in previous decades, prenuptial agreements were almost always sought by men. A lot of women are indignant now that the shoe is increasingly on the other foot, says Carol Ann Wilson, a certified financial divorce practitioner in Boulder, Colo. "There's this sense of, 'What's yours is ours, but what's mine is mine,'" Wilson says. "My first response to that is, 'All these years we have been looking for equality; well, this is what it looks like.' I think women get angrier about having to pay than men do." The ordeal has been played up in gossip magazines and tabloids, which have closely followed countless examples of celebrity breakups in which men have sought, or have threatened to seek, spousal support. Teen idol and crooner Nick Lachey reportedly requested the right to seek spousal support from ex-wife pop singer Jessica Simpson last year. (Lachey is seven years older than Simpson and reportedly worth significantly less.) In another splashy case, Hardy Boy Parker Stevenson sought $18,000 per month from actress Kirstie Alley when they divorced, just to cover the rent on his Bel Air home. But Wilson emphasizes that it's not just actresses or the wealthiest women who are seeking prenuptial agreements or paying spousal support. "I've seen thousands of clients," she says, "and almost every time I've seen a stay-at-home dad seek alimony, the wife--she's usually a software executive--goes ballistic." Some women find it's not a battle worth fighting, according to Cheryl Lynn Hepfer, the Rockville, Md.-based president of the American Academy of Matrimonial Lawyers. Hepfer says she's seen women who have happily chosen to pay off their husbands in an effort to maintain their sanity and keep the peace. "I once represented a wealthy woman who had the wherewithal to pay $6,000 a month to her husband--and this was probably 10 years ago--so she paid him," Hepfer says, adding that the client also gave her ex the boat and the house on the water. "She wasn't bitter about it at all. She was a business woman, and for her, this was a business decision." Hepfer says she did it to preserve the relationship with her former husband and their two children. "She knew it would be beneficial for the kids." Just as some women object to men's request for spousal support, some men are particularly uncomfortable seeking it. Either they find it emasculating to ask, or they find the idea of receiving an allowance from their ex-wives humiliating, according to divorce attorneys. "The fact is that you still don't see too many cases where men seek alimony," says William Beslow, a divorce attorney in New York City. "One reason is that although women may earn more than men, they often wind up with custody of the children, and when a woman takes up primary responsibility for the children, men don't request maintenance." Some men avoid the embarrassment by seeking a bigger bite of the marital assets instead of asking for alimony. Not only do lump-sum payments save them the humiliation of accepting monthly support, but they also reduce the ex-husband's taxes, since spousal support payments are taxed, while assets are not. On the flip side, in those situations when men receive assets, women lose their tax benefit, because spousal support is tax-deductible, Hepfer notes. The upshot: Even if it's easier to settle with one swift payment, consult an accountant first to learn the tax consequences. It may be better for you financially to pay alimony. Kim Shamsky admits she's angry about paying her ex-husband spousal support mostly because he's a man. After all, men are supposed to be breadwinners, not bread takers. "A real man just wouldn't do this sort of thing," she says. "Maybe it's my Italian upbringing, but I don't think it's right." Right or not, as women's earnings grow, so will their financial responsibility during divorce. That's equality for you.

California spousal support