Divorce & Family Law Insights — Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events

Locating Hidden Marital Assets in Divorce

Published on: March 9, 2016 | by James McGlew, II

One of the greatest concerns to individuals who are divorcing or contemplating divorce is the possibility that their spouse is hiding or dissipating assets. While such conduct may be the exception rather than the rule such actions on the part of one spouse can have extreme financial consequences to the detriment of the other.

In those cases where there is a basis for suspicion, as experienced matrimonial attorneys we at Lindabury can take the initial steps to investigate whether a spouse is attempting to hide marital assets. In those divorces were the suspicion is confirmed, we may recommend the use of a forensic accountant, investigative expert, or an “IT” (information technology) professional to discover the extent to which this conduct has occurred. Lindabury’s Family Law Group has decades of experience advocating on behalf of clients involved in contentious divorces.

KNOW THE SIGNS: Hiding marital assets can be an attempt by one spouse to gain the upper hand in a divorce. Some of the more common signs are regular and consistent withdrawal of cash from a checking account or at an ATM, unexplained travel expenses, payments to unknown parties or friends or relatives for no plausible reason and the payment of debt for reasons of which you are unfamiliar or unaware.

Divorce and Taxes: Tips for Those Contemplating Divorce

Published on: February 10, 2016 | by James McGlew, II

Tax season is now descending upon all of us and for individuals either planning to file for divorce, or those who are presently in the midst of divorce litigation, understanding how your current marital status can impact your tax liability is of significant importance. While each individual’s specific circumstances are unique, this article intends to provide general guidance to assist you in your decisions. By highlighting several areas where Divorce and Tax Law intersect you can make informed choices that will help to ensure that you’re not paying more than your fair share of taxes owed.

For individuals contemplating separation or divorce, tax planning prior to these events can often result in significant savings during the divorce process. Consulting a tax professional to discuss the pros and cons of filing joint or separate tax returns is always advisable for individuals who plan to divorce in the coming months. With respect to previous year’s tax filings, regardless of whether they were filed individually or jointly, gathering copies of these documents today will expedite the discovery phase of your divorce case and help to reduce your overall divorce costs.

Do you and your spouse own your own business? In situations where a business operates as a cash business it is important to collect and maintain information as to the businesses’ monthly income. This information will be important for the valuation and eventual equitable distribution of marital assets. Depending upon your particular circumstances, pre-planning and consultation with your attorney and accountant can often result not only in tax savings but ensuring your overall financial protection.

Examining Harassment Under New Jersey’s Prevention of Domestic Violence Act

Published on: February 3, 2016 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

Examining Harassment Under the PDVA

When does ‘annoying’ or ‘alarming’ behavior warrant protection?

Nearly half of the 65,000 domestic violence complaints reported in New Jersey each year are based on claims of “harassment.” Our judicial system expends extensive time and effort, case by case, to determine which of those claims qualify as true domestic violence under the Prevention of Domestic Violence Act (PDVA). Given the volume of allegations made in the name of harassment, the courts have cautioned litigants against wasting resources and trivializing the plight of genuine victims by asserting frivolous harassment claims.

Grey Divorces – A Guide For Older Couples Considering Divorce in New Jersey

Published on: November 4, 2015 | by James McGlew, II

A recent New York Times article discussed the increasing national trend of older couples divorcing. In New Jersey, as well as nationally, “Grey Divorces” are becoming more common and, as a result, more socially acceptable. Over the last 15 years there has been a marked increase in the number of individuals over the age of 50 who are divorcing their spouse and for individuals over the age of 65, the divorce rate increase has been even greater.

For the majority of older individuals many of the more common divorce issues no longer remain. Issues such as child custody, time-sharing, child support and those surrounding the raising of children have all been resolved. Rather, for senior couples preparing to divorce the issues of alimony and equitable distribution remain vitally important along with a myriad of other related late-life divorce questions.

Below I have outlined some of the major considerations that should be examined by older couples who intend to divorce.

The Perils of Not Using a Prenup

Published on: November 13, 2014 | by James McGlew, II

By: James McGlew

The perils of getting married without a prenuptial agreement were made clear this week with the news of the divorce of billionaire Harold Hamm. Mr. Hamm, Chief Executive Officer of Continental Resources, was ordered to pay nearly $1 billion to his now ex-wife in one of the largest US divorce judgments ever. The order requires Mr. Hamm to pay his ex-wife one-third of the settlement, about $320 million, by the end of 2014 and the remainder to be paid in monthly installments of at least $7 million. This award will help to make the former Ms. Hamm one of the 100 wealthiest women in the United States.

As I'm sure you can tell by now, Mr. and Mrs. Hamm had no prenuptial agreement.

Appellate Division Extends New Jersey Law Against Discrimination to Divorcing Employees

Published on: October 23, 2014 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

The New Jersey Law Against Discrimination (“LAD”) has long prohibited discrimination against individuals on the basis of their “marital status,” barring employers from considering an individual’s status as married or unmarried in making any employment decisions. In the recent case of a New Jersey appeals court recently examined the scope of the marital status protections of LAD and determined that they also extend to engaged, separated and divorced individuals.

The Facts: Robert Smith, Director of Operations for the Millville Rescue Squad (“Millville”), supervised over one hundred employees, including his wife. In February 2005, Smith had an affair with a subordinate who later resigned, and shortly thereafter, Smith and his wife separated. Mr. Smith’s supervisor became aware of Smith’s affair and subsequent separation and told him he could not promise these developments would not affect Smith’s job, that it “all depends on how it shakes down.” Several months later, Smith’s employment was terminated for poor work performance. Smith’s supervisor purportedly told Smith that he had to present the situation to Millville’s board of directors because he believed there was no chance of reconciliation between Smith and his wife and “it’s going to be an ugly divorce.” Smith filed suit alleging marital status discrimination in violation of the LAD.

The Ruling: In the proceedings below, the trial court dismissed Smith’s marital discrimination claim because Smith failed to present evidence that Millville fired him because he was either married or unmarried. The Court reasoned that Millville had the right to terminate Smith because it was concerned about the potential impact his divorce proceedings might have on his work. Smith appealed that ruling.

Governor Christie Signs Major Alimony Reform Bill Into Law

Published on: September 22, 2014 | by James McGlew, II

By: James McGlew

On September 10, 2014, Governor Christie signed into law A845 which makes significant changes to New Jersey alimony law. The reformed alimony statute will dramatically impact the way spousal support is calculated going forward.

Important changes to New Jersey alimony include:

IRS Adopts a Uniform Policy: All Legal Same-Sex Marriages Recognized for Federal Tax Purposes

Published on: September 18, 2013 | by James McGlew, II

In the wake of the U.S. Supreme Court’s recent landmark decision in , the U.S. Department of the Treasury and the Internal Revenue Service (“IRS”) ruled that same-sex marriages will be recognized for federal tax purposes, even if the married couple is domiciled in a state that does not recognize same-sex marriage. For example, lawfully married same-sex couples in New York will be treated as married for federal tax purposes, even if they permanently relocated to New Jersey or Florida, states that currently do not recognize same-sex marriage.

The decision struck down Section 3 of the 1996 Defense of Marriage Act (which excluded same-sex couples from the federal definitions of “marriage” and “spouse”) as unconstitutional. Yet the Court’s decision raised the issue of whether federal benefits would extend to same-sex married couples domiciled in states that do not recognize same-sex marriage.

For federal tax purposes, the terms “spouse,” “husband and wife,” “husband,” and “wife” include an individual married to a person of the same sex if the individuals are lawfully married under state (including any foreign jurisdiction having the legal authority to sanction marriages) law, and the term “marriage” includes such a marriage between individuals of the same sex, regardless of an individual’s place of domicile. Significantly, however, these terms do not cover registered domestic partnerships, civil unions, or other similar formal relationships recognized under state law for federal tax purposes.

New Jersey Becomes the Latest State to Extend Additional Leave Rights to Victims of Domestic Violence and Their Families

Published on: August 29, 2013 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

Employment Law Newsletter

For several decades New Jersey employers with 50 or more employees have been grappling with the administration of employee leave rights – 12 weeks in any 12- or 24- month period – under the federal Family and Medical Leave Act (FMLA) and the New Jersey Family Leave Act (NJFLA). The administrative challenges were heightened when the New Jersey Paid Family Leave Law – applicable to all employers regardless of size – was added to the mix. Well, things are about to become even more complicated. Effective October 1, 2013, New Jersey employers of 25 or more employees are required to provide 20 days of unpaid protected leave for eligible victims of domestic or sexual violence under the New Jersey Security and Financial Security Act (the NJ SAFE Act).

Who is eligible for leave under the NJ SAFE Act? Like the eligibility requirements under the NJFLA, employees must have worked for the employer for at least 12 months and for at least 1,000 hours in the immediately preceding 12-month period. In comparison, employees must have one year of service and 1,250 hours of work to qualify for benefits under the FMLA.