Divorce & Family Law Insights

If you find yourself in a situation where you are contemplating divorce, there are several recommended steps you should take. The first of these is to consult an attorney who specifically practices in this area and devotes the majority of their practice toward divorce and family law matters. Contact the attorney to arrange for a consultation. You should not be put off by an attorney who charges an initial consultation fee. As with most things, you usually get what you pay for. Often times the consultation fee is a small initial investment in a major life changing event.

Next, if you are a parent, it is important to never involve the children in the marital discord. No child should be placed in the middle of divorcing parents or the issues one of the parents may have with the other.

If you are not already, become knowledgeable about your family‘s finances. Try to secure copies of relevant financial documentation including, but not limited to, prior tax returns, W-2 and 1099 statements and paystubs, bank account, investment and credit card information pertaining to both you and your spouse. While you and your attorney will be entitled to obtain and review this documentation during any litigation, there is a cost savings involved when you can provide as much information as possible to your attorney.

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Divorce mediation is a cost-effective and time saving process to utilize in what is an emotional and often contentious proceeding between parties. The mediation process can be utilized whether or not the parties are in the process of divorcing, contemplating divorce, or examining issues which remain or have arisen after their divorce.

For individuals considering divorce / family law mediation, it is essential they understand that the State of New Jersey does not require licensing or any type of certification for someone to become a mediator in private practice. Because of this, there are many mediators offering their services who lack the requisite background and specific knowledge of the important legal issues you are facing. When in this situation, it is important to select an experienced family law attorney and one who has been “approved to act as a mediator” by the New Jersey Supreme Court. To meet the Court standard for such qualification, a mediator must have completed a minimum of 40 hours in a Court-approved mediation course, possess a minimum of a bachelor’s degree, and have five years of professional experience in the field of expertise in which they are to conduct mediations.

Whether the issue is custody, time-sharing, alimony, child support, the distribution of property, investments or retirement accounts, or any other issue encountered in a divorce, a mediator who has the specialized training and experience is best equipped to assist the parties in resolving their differences. Some individuals find mediation to also be beneficial before they get married when they need to discuss and negotiate pre-nuptial agreements.

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Nearly all 401(k) plans are governed by the Employment Retirement Act of 1979 (“ERISA”). ERISA regulates pension, health & welfare, and other employee benefits including 401(k) programs.

Under ERISA, if owner of an ERISA-governed 401(k) plan dies, their surviving spouse is automatically entitled to 401(k) benefits at the time death, regardless of who has been named beneficiary. Under § 1055 of ERISA, if the owner of a retirement account is married when he or she dies, his or her spouse is automatically entitled to receive at least fifty percent (50%) of the money, regardless of what the beneficiary designation says. The Supreme Court has explained that § 1055 reflects Congress’s intent to “ensure a stream of income to surviving spouses.”

This right of the surviving spouse is triggered regardless of when the assets were accrued or how long the pair has been married. There is an exception to the general rule. Plans are permitted to include a 1-year marriage rule whereby a surviving spouse must have been married to the plan participant for at least 1 year before they may claim a right to 401(k) assets, but, not all plans have adopted this exception.

Regardless of whether you are the spouse who initiated divorce proceedings by filing a complaint with the Court or whether you are the spouse who has just received the divorce complaint, you may be dealing with a range of emotions and unclear as to what steps you should take next. In this situation it may be easy to make sudden decisions or act impulsively which can have long-lasting negative consequences should you do so before understanding your rights and the general divorce process in New Jersey.

If you and your spouse have children, you should together determine the best way to tell them about your pending divorce the changes likely to occur within your family unit. This may mean engaging the assistance of a mental health professional to discuss what approach is in the best interests of your children. Do not speak poorly of your spouse in front of or to your children and try to keep your children separated from the divorce process as much as possible.

Do not make any changes to your insurance policies. This includes the type and amount of coverage, the individuals covered under policies and the beneficiary designation(s) of policies. If you have already made any changes, you will likely have to undo the changes you have made. You should also confirm that your spouse has not made any changes to policies that may be in their control.

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Nicole Kobis recently authored an article for the New Jersey Law Journal in which she provides insight to an often overlooked and extremely important task that needs to be addressed; obtaining and/or maintaining life insurance policies for each divorced spouse along with ensuring documentation is in place to allow each party access to the policies’ pertinent information.

To read the full NJLJ article click here.

 

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When couples are ending their marriage or relationship there are many financial issues that need to be resolved including the division of property and respective ongoing support obligations. Two different categories of ongoing support one spouse may be responsible for are child support and spousal support, sometimes referred to as alimony. Child support is paid by one spouse to the other for the benefit of the children that they have in common. Alimony is paid for the benefit of the other spouse to account for a disparity of income that may exist between the couple upon their divorce.

Once the amount of each obligation is either agreed upon or ordered, the former spouses can then move forward and create their new personal budgets knowing the amount of support that they will have to pay or the amount of support that they will receive. But, what happens if one of the spouses dies after a divorce? This is where the existence of life insurance policies to secure these obligations becomes particularly important.

Unless agreed upon otherwise, the obligation to pay alimony terminates upon the death of either spouse. However, if a payee spouse has relied upon a certain amount of spousal support being paid to them, the sudden termination of alimony could be a life altering event. If a life insurance policy was in existence for the benefit of the payee spouse, the payout of the policy can help to mitigate the negative financial impact that sudden death can cause.

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With the holidays approaching, people are busy making travel arrangements and shopping lists, digging out old recipes and getting their homes ready for what is arguably one of the most family oriented times of the year. However for couples with children who are ending their marriage or relationship these times come with an added layer of concern as to how they will share time with their children during these special events. When a couple decides to divorce or end their relationship and they have a child or children in common, there are many issues that need to be resolved relative to their children. Many questions arise regarding how the children will react to their parent’s split and the many changes that will inevitably take place. Regardless of the parent’s marital status (married, co-habitating, dating or separated) these issues are present and will need to be addressed proactively so as to minimize any negative impact on the children

There is no “one size fits all” formula used to determine how to handle parenting time during the holidays. Many choose to alternate years in which they have parenting time with the children for a specific holiday. Other people find it difficult to not see their children on a holiday and if distance and plans permit, opt to share the day every year with an exchange of the children taking place during midday so that the children can participate in activities with both sides of the family.

Couples may recognize that a certain holiday has traditionally been spent with one side of the family during their relationship and therefore decide that the children should continue to spend that holiday with that spouse and continue the traditions to which they have already become accustomed.

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In all cases of divorce or separation where children are involved, the issue of time-sharing (previously referred to as “visitation”) is a significant issue to be addressed. Unless the parents have agreed to an equal shared custodial arrangement, an appropriate schedule of time-sharing is particularly important for all those involved: the custodial parent, the non-custodial parent, and the children.

Determining a schedule of time-sharing with the children is sometimes resolved between the parties. However, in those cases where the parties are unable to do so, the Court will order mediation in an attempt to resolve the issue. If the mediation is unsuccessful, the Court will (and has the authority to) determine the time-sharing schedule which will be binding on all involved.

Traditionally, time-sharing consisted of alternate weekend overnights for the non-custodial parent, a division of legal and religious holidays, extended time during the summer, and perhaps one evening per week for dinner. Recently, time-sharing schedules have become more flexible with non-custodial parents demanding (and receiving) more time with their children. Busy work schedules for the parents and academic and activity schedules for the children demand a more fine-tuned approach to time-sharing.

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One of the most contentious issues faced by many divorced parents has always been whether the custodial parent has the right to relocate with the parties’ children out of state. In an increasingly mobile society this has become an issue for many parents. Often custodial parents decide that they cannot continue to reside in New Jersey. They need to explore job opportunities in other states and/or move back to a state where they were raised and may have a family-type support system in place. They may have started a relationship with someone who resides out-of-state or may be contemplating marriage with that person who has an established career in another state. For years, the custodial parent could not permanently remove the children from the state of New Jersey without the written consent of the other party or a court Order. If there was no agreement, the party wishing to move would petition the court for permission. Over the past several decades the standard our Courts have used to make this determination has evolved. For more than 15 years, the standard has been that the prospect of moving the children out of state would be granted unless it was “inimical to the child’s interest.”

Last month, the New Jersey Supreme Court changed the standard that lower courts are to utilize when determining whether or not a custodial parent may relocate the children out of New Jersey. It was also determined that this new standard would apply whether or not the party seeking to move has been the child’s primary residential parent. This ruling represents a significant departure from existing law by changing the standard a court is obligated to interpret. It also gives the noncustodial parent considerably more input and seeks to protect the rights of both parents.

When examining the issue of relocation our courts are now charged with determining whether there is “cause” (to be interpreted under the existing statute) to authorize a child’s relocation out of New Jersey. To do so, courts are now obligated to weigh many factors including, but not limited to: “the parents’ ability to agree, to communicate and cooperate in matters relating to the child; the parents’ willingness to accept custody and any history of unwillingness to allow parenting time not based on substantiated abuse; the interaction and relationship of the child with its parents and siblings; the history of domestic violence, if any; the safety of the child and the safety of either parent from physical abuse by the other parent; the preferences of the child when of sufficient age and capacity to reason so as to form an intelligent decision; the needs of the child; the stability of the home environment offered; the quality and continuity of the child’s education; the fitness of the parents’ homes; the extent and quality of the time spent with the child prior to or subsequent to the separation; the parents’ employment responsibilities; and the age and number of children.”

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Unfortunately, at the time a divorce is finalized an individual can encounter new and unanticipated financial obligations.  Any debt that was incurred during the marriage and will not be paid off at the time of divorce needs to be addressed in the parties’ settlement agreement.  It is important that any written settlement reached between the divorcing parties be thorough and clear as to which of the parties is responsible for a particular debt and how and when that person will satisfy that debt. Unfortunately, at the time a divorce is finalized an individual can encounter new and unanticipated financial obligations.  Any debt that was incurred during the marriage and will not be paid off at the time of divorce needs to be addressed in the parties’ settlement agreement.  It is important that any written settlement reached between the divorcing parties be thorough and clear as to which of the parties is responsible for a particular debt and how and when that person will satisfy that debt.

The entry of a divorce judgment does not alleviate the joint responsibility for a joint debt.  As an example, should one party agree to pay the balance due on a joint credit card debt in its entirety, and then fail to subsequently do so, the credit card company can pursue its claim against both of the individuals named on the account. The creditor is not bound by any agreement made between the divorced parties.

Additionally if payments are late or not made, the Lender or the bank that provided the credit can report negative information to the credit reporting companies. This can affect not only the credit rating of the party who was responsible to make the payments but possibly the other party as well.

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