One of the casualties of this pandemic and economic shutdown has been the stock market and, with it, the values of retirement accounts. Defined contribution accounts, both private and employment-based, have taken significant investment hits. You may be wondering how this downturn will affect the consideration of plans such as 401Ks and IRAs in your
Julia G. Vanasse
The Economic Impact of COVID-19 on Divorce
As uncertainty becomes the new normal, those of you going through the already tumultuous process of divorce may have questions about how this pandemic and the economic shutdown will affect your case. Staying in touch with your lawyer during this difficult time will help you talk through and anticipate the economic impact of divorce during …
Do I need a Prenuptial Agreement?
If you are asking yourself this question, the answer is absolutely yes, you should seek the advice of counsel about whether a Prenuptial Agreement is a good idea for you. Let’s face it, the era of everyone getting married right out of high school and acquiring all of their assets and liabilities together during the marriage is long gone. Chances are, you already have assets and liabilities going into your marriage, or maybe it is even a second marriage, and you really need to understand the impact your upcoming marriage will have from a legal standpoint.
I realize that prenuptial agreements are often regarded as unseemly. But they get an unfair rap. A prenuptial agreement is just the legal document that outlines the understanding of both spouses as to how they wish to maintain their assets both during the marriage, and in the worst case, upon a divorce. It simply codifies the intention of the parties going into the marriage as to how they will keep both separate and joint assets, and treat debts, so that it is perfectly clear how the division of assets and liabilities is to take place upon a divorce. It is often used as part of an estate plan for a second marriage. In fact, just like if you die without a will, without a prenuptial agreement, your marital assets and debts are divided pursuant to the law. Most of us don’t want the law to decide for us what happens with our assets after we die, so we undertake estate planning and sign documents such as Wills in order to control the distribution of our assets. A prenuptial agreement is no different– it puts you in control of what happens to your marital estate upon divorce or death. …
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New Tax Laws and Changes to Pennsylvania Support Guidelines
Now that April 15th has passed, the dust is still settling about how tax changes impacted taxpayers and many of us were surprised at the effects. The effects of the new tax laws also changed child and spousal support payable in Pennsylvania.
As of January 1, 2019 new guidelines are now in effect. These have been put in place largely to deal with the issue that alimony and temporary alimony or support payments to a spouse are no longer tax deductible by the person paying support, nor includable as income by the recipient. These new guidelines pertain to any new orders after January 1, 2019, but not the modification of prior orders. So it’s important to understand whether your case will be calculated under the old or new guidelines, as it makes a difference.
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Anatomy of a Divorce Case in Lancaster County
In a prior blog post, I explained that divorce cases here in Lancaster county are heard by Divorce Masters instead of Judges. Because the proceedings before the Master will be the only chance you have to present your case, it is important to understand the process.
Your lawyer will appoint a Divorce Master with a Motion with the Court. Once appointed, the Master will hear the claims that you have raised which may include claims for the distribution of property and/or alimony. When a Master is appointed, a telephone conference is scheduled with the lawyers. The Master will deal with procedural issues and determine if the case is ready to move forward or whether there are any impediments to moving ahead such as disputes about the date of separation or missing discovery.
Discovery is the legal term for the gathering and sharing of necessary information to move a case forward. Your lawyer will ask you for information about your assets and income and may need to seek valuations of those assets by outside parties (such as real estate and pension appraisers). If you want a good outcome, you should prioritize getting your lawyer all of the information that he or she is asking for. It may seem burdensome, but since this is your only opportunity to present evidence, it is worthwhile to provide as much information as possible on the assets and incomes involved. This may require inquiries to the bank, to your accountant or even to your human resources department, but all of your efforts will matter very much to your case.
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What is a Divorce Master?
As a prior Divorce Master, I witnessed a lot of confusion from clients about the Divorce Master process. During one of my more contentious cases, I overheard a litigant talking to his attorney during a break, and he asked: “When will I get a hearing with a real Judge?” Clearly he was disgruntled about how the case was going, but it’s a fair question. And the answer here in Lancaster County is that you won’t– your Divorce case will be heard by a Divorce Master, not a Judge.
In most counties in Pennsylvania (including here in Lancaster), divorce cases are heard and decided by Masters instead of Judges. Divorce Masters are court appointed officials, and they have jurisdiction to decide issues of property distribution and alimony. In Lancaster County, Divorce Masters serve as the finders of fact for the case. In practical terms, that means that the proceedings before the Divorce Master will be the only opportunity you will have to present your full case. So, be prepared and take it seriously.
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Five lessons from the Bezos divorce settlement that could apply to your case
Headlines last week detailed the divorce settlement agreement between Jeff and MacKenzie Bezos. It was a huge marital estate estimated at 137 billion dollars; the largest asset was Amazon which Jeff Bezos founded during the marriage with help from his Wife MacKenzie. MacKenzie agreed to accept 25% of the Amazon stock which amounted to about 36 billion in assets. Most of us cannot relate at all, but in reading the details, it occurred to me that there are pertinent lessons to take away from this. In this post, I have highlighted five takeaways that apply even when you are not the founder of Amazon. I will elaborate on some of these subjects in future blog posts, but for now, here is the Cliffs Notes version: …
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