Joseph Allan Shaw, P.C. Baldwin County Family Law & Divorce Lawyer | Mediation Attorney2024-03-27T14:57:53Zhttps://www.josephallanshaw.com/feed/atom/WordPress/wp-content/uploads/sites/1604579/2022/07/cropped-favicon-32x32.jpgOn Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=469692024-02-20T18:10:59Z2024-02-20T18:08:43ZMental illness
One out of every five Americans lives with a mental illness. This means you probably know someone who has one—or maybe it is you. It is much more common than people think and it comes up in divorce cases all the time.
First, it is critical to know that mental illness does not automatically disqualify a person from being a good parent or meeting their child’s needs.
However, the court can inquire into these concerns because its role is to ensure that the needs of the child are met. That means a child's physical, emotional and mental needs. Children should live in a happy and healthy environment.
View of the court
The court must ensure that children are safe and protected. When a parent’s mental illness comes up, the court may inquire further into this. It may ask the parent with the mental health condition to provide additional information to understand whether it affects the child negatively or not.
If a parent’s mental illness does not affect their ability to parent their child well, according to the court, it may not be an issue at all.
Here is what the courts look at:
Safety of the child
Stability of the child and their environment
The parent’s mental health treatment
The child’s wishes, if they are old enough
Many other factors
Alabama courts look at the entire picture before deciding. If a child is old enough to express themselves maturely, the court may ask them for their thoughts. This does not mean the child decides—it simply means the court takes the child’s desires into consideration.
For example, if the child is old enough and mature enough to address the court and they describe their life with one parent as unstable because of their parent’s mental illness, the court may take that into consideration.
What to do if this is you
It is key to seek treatment and remain compliant with your doctor’s orders if you are a parent struggling with or living with a mental illness.
Showing the court that you have your condition under control is one of the most important determinant factors in cases like these.
In some cases, especially high-conflict divorces, a parent will make all sorts of accusations about the other parent, including allegations of inability to parent due to mental health issues.
Stay ahead of the game
To stay ahead of this, ensure you document everything. Keep records of your treatment, medication, and doctor’s visits.
If necessary, ask your doctor to write and sign a statement of facts giving their professional opinion on your mental illness as it relates to your ability to parent.
Show stability by remaining emotionally composed at all times and not reacting to your spouse’s attacks.
It is also important to get legal help from a family law attorney who understands what you are going through and can guide you through this process. They will advocate for you, your rights and ensure that your truth is what the court sees.]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=469672023-12-05T07:16:47Z2023-12-05T07:16:47Zdivorce that involves a family business. These are a few of the most pressing.
Timeline matters
One concern that can affect the outcome of the business is when the company was started. If the company was created before the marriage, it might be the original owner's property. There are strict terms that must be followed if this is what’s happening with the business. The presence of a prenuptial agreement can also impact what happens.
Companies that are started after a marriage begins are typically marital property. This means that interests in the company will likely be split between the owners. This can be a complex undertaking, so it must be considered carefully.
Business valuation is important
If the company is going to be sold or if one spouse will buy the other out, the business must go through the valuation process. Once the valuation is completed, there’s a basis for how much the company will sell for or the buyout from one spouse.
A professional must do the valuation because it involves more than just looking at profits. Future projections must also be considered, for example. The individual handling the valuation will go through all the company records to determine an accurate value.
Co-owning might be possible
Some exes can continue to run their business together. This requires stringent guidelines that must be made clear in writing. This effort should address each person’s responsibilities, how profits will be split, how expenses will be handled and what happens if there’s a disagreement.
Business owners going through a divorce must ensure they’re considering the fate of their business and their personal future simultaneously. Seeking legal guidance as proactively as possible can be beneficial accordingly.]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=469662023-08-25T00:21:28Z2023-08-25T00:21:28ZThe financial complexities can exacerbate the challenges of reaching a fair and equitable settlement between the divorcing parties. Here's how certain factors can influence the division of assets:
It can make it harder to value assets
Stock market and real estate market volatility can make it difficult to accurately value certain assets, particularly investment portfolios and business interests. Because the market prices can suddenly swing in either direction, spouses may disagree on their actual worth. The couple may also have differing opinions on whether to continue holding certain investments or to sell them, adding a layer of complexity to the negotiations.
It can be tougher to sell assets
It's common to need to liquidate assets – particularly real estate and investments – to divide them between the parties. If the stock market is volatile, selling stocks or other investments at the wrong time could result in substantial losses. High interest rates also impact the cost of borrowing money, which can make it much harder to offload higher-end properties to willing buyers.
It can increase the weight of debts
In a divorce, marital debts are also divided. Debts that were manageable with a lower interest rate might become burdensome under higher rates, affecting the financial stability of both parties. Deciding how to fairly distribute these debts becomes more complex under such circumstances, especially when refinancing is involved.
It can be more difficult to pay support
High interest rates can impact the ability of the higher-earning spouse to make alimony or child support payments. If a substantial portion of their income is tied up in investments or businesses that are affected by the volatility of the market, that can cause cash flow problems. This can further strain negotiations and court proceedings.
Divorcing couples need to consider the long-term impact of their financial decisions during this process, so it’s always wise to get some experienced legal guidance before committing to any particular approach.]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=469622023-06-01T15:59:04Z2023-06-01T15:59:04ZPensions are often treated as marital property
People find divorce claims related to pensions and other retirement assets confusing in part because they may be benefits related to their employment. It is typical for people to hold their pension benefits in an employer-sponsored account and for the funds to be only in the name of the employee, not the name of their spouse.
However, for the purpose of property division during an Alabama divorce, it isn't the name on the account that matters the most. Instead, the courts care about when someone made contributions to the account or earned certain assets. Part of the pension could be separate property, and part of it may be marital property that someone has to divide.
Even if it is possible to negotiate a settlement where spouses don't split the actual pension funds, the value of the pension benefits added during the marriage will typically influence how they divide other assets in the divorce. When considering the pension in the context of the other marital resources, the solution for handling all of the marital property should be fair.
Those who feel particularly concerned about or protective of their pension benefits may want to consider negotiating a settlement with their spouse, as someone could potentially avoid sharing their pension if they make concessions concerning other assets from the marital estate. Identifying the resources that matter the most to someone during the property division process can make it easier to implement a successful strategy for controlling the economic impact of that process.
]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=469602023-02-27T00:31:31Z2023-02-27T00:31:31ZProfessional assistance can resolve the disagreement
To some degree, home values are subjective. Real property is worth whatever someone willingly pays for it. If one spouse feels like the home is worth quite a bit and the other wants to keep pointing at the amount the couple originally paid for the home, bringing in a real estate professional could help resolve the issue.
An appraiser can look at the condition of the home and the sale price for houses of similar size and condition in the area. They can then use that to calculate a rough estimate of the property's fair market value. Often, the appraisal process will give a divorcing couple a sense of confidence about the value of the home they own.
Other times, one spouse may disagree with the appraisal. In some scenarios, couples may go so far as to secure two different appraisals and then split the difference between the prices that each appraiser set for the property.
The value of the home is a major consideration
Compromising immediately on the declared value of real estate in a divorce can be a major strategic mistake. If one spouse intends to keep the home, it will be in their interest to undervalue the home, as that will minimize how much they pay to the other in equity. On the other hand, someone expecting a payout would have an interest in maximizing the value of the property so that they receive the most equity possible.
Recognizing that professional help is often necessary to settle property division disputes can empower those who are preparing for a challenging upcoming divorce involving valuable property. Sometimes, knowing when to say “I need help!” is the strongest action someone can take.]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=469592022-11-30T22:32:59Z2022-11-30T22:32:59ZAlabama cannot order child support during college
For years, there was an assumption by the Alabama family courts that a parent paying child support would likely contribute toward college costs as well. However, the state Supreme Court eventually reversed that precedent, clarifying that courts typically cannot compel a parent to pay for a child's college through child support payments.
Although that may seem like a hardship for you and your child, as the income of both parents may influence their financial aid eligibility, you can potentially make arrangements that will help protect your child's future.
Parents can create their own agreement
It is quite common for those with children to settle many of their major divorce matters outside of court. You and your spouse can negotiate a settlement agreement and parenting plan that may contain ongoing support through the college years.
Although the courts will not usually order someone to pay child support for college costs, they can enforce agreements between parents that include college tuition contributions. Especially when you know that your child's education will be crucial to their success in the future, agreeing to share those costs may be one of the few things that could inspire cooperation between you and your ex during the divorce process.
Learning more about how Alabama handles child support issues can help you plan for your family's future.
]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=469572022-08-31T19:42:41Z2022-08-31T19:42:41ZMethods of showing freelance income during divorce
There are a few ways to show your income during divorce. For someone working a typical job, tax returns and paystubs may be all that’s necessary. For a freelancer, a few other documents may be available, such as:
Tax paperwork including write-offs and business income
Invoices to clients
Copies of bank account statements
Copies of PayPal, Venmo or other online payment processor accounts
Using these additional documents, it may be possible to pin down exactly how much your spouse has coming in each month as well as to see the variance in their earnings from month to month.
Being thorough with this paperwork is important for other reasons, too. If your spouse is trying to hide assets or using their business to try to write off assets that should not be to reduce their income, those actions will become apparent on a tax return. Other items you might ask for include copies of receipts, credit card statements and other items to show incoming and outgoing money.
What should you do if your spouse’s income seems inaccurate?
Freelancers often have variable incomes, and there could be variances between what you think they earn and what they actually do after tax. It’s important for you to consider working with a forensic accountant or tax professional to work out their average annual income and to use your best judgment when trying to determine the way to get the compensation and assets you need following your divorce.
While a freelance income can make things a little more complicated during your divorce, you still have a right to a fair portion of your assets. If you don’t feel that the paperwork is accurate, further investigation may be necessary.]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=464102022-07-19T18:59:34Z2022-05-27T18:47:08ZYou need permission if the move is significant
If you intend to leave the state or move more than 60 miles away from your current residence, then you will likely need permission to move. Your ex might cooperate with you and agree to support you in the move.
The two of you could then draft an uncontested custody modification requesting changes that reflect your new intended residence and how you will have to adjust parenting time to accommodate the new location. If your ex does not want to approve the move, then you will likely need to go back to court.
What happens in a contested relocation case?
Going to court over a move when you share custody will be a lot like going to court for custody in the first place. Both you and your ex will have an opportunity to provide evidence to the courts, and the judge will make the final decision based on what they think would be best for your children.
Although they will want to preserve the relationship that each parent has with the kids, they may also recognize that opportunities like more access to extended family or a better school system could make a long-distance move beneficial for the children.
Parents who hope to succeed when seeking relocation permission after a divorce will likely have a better outcome if they focus their legal arguments on the children and not on their own wishes. Knowing the rules that apply in shared custody scenarios can help you move on with your life even if you share custody with your ex.]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=462692022-07-19T18:59:47Z2022-02-22T23:04:40ZHow do you transfer stocks during a divorce?
If you would like to transfer stocks to divide them, you’ll need a copy of your court order or divorce decree. You and your now ex-spouse should sign a letter to the brokerage firm that is holding the stocks providing information on what to do with the stocks. In your letter, you’ll include the name and number of shares of the stocks that you’d like to have transferred.
Usually, you won’t have to pay taxes on this transfer, but there are exceptions. For instance, if your spouse is a nonresident alien, then there may be taxes to pay. The minor exceptions are why it’s smart to discuss this decision with an accountant, broker or your attorney before deciding if transferring stocks is the right choice for you.
It’s possible to split your assets fairly during a divorce
While many people don’t realize that it’s possible to divide stocks and bonds, you can. It’s possible to do this without selling them if you’d like to keep them invested, too. Since you could sell or could keep them invested, you and your spouse should talk about your preferences before deciding how to divide what you own.]]>On Behalf of Joseph Allan Shaw, P.C.https://www.josephallanshaw.com/?p=462672022-07-19T18:59:55Z2021-12-17T20:03:26ZRetirement assets subject to division
You worked hard to build your wealth and plan for retirement. If your marriage is over, the nest egg you worked so hard for can be significantly reduced. These assets include:
401(k)
IRA
Roth IRA
Private pensions
State pensions
Military pensions
Qualified retirement plans – including pensions and 401(k)s - are typically split under a qualified domestic relations order (QDRO), while IRAs fall under a “transfer incident to divorce” process.
Separate vs. marital assets: In most cases, ex-spouses only share the amount earned during the marriage. Funds accumulated before marriage typically aren’t eligible.
Paying an ex-spouse: Even when dividing retirement plans, you don’t necessarily have to withdraw funds now or designate a portion after you retire for your ex-spouse. You can also substitute other assets equal to their share of the settlement.
Tax liabilities: Dividing a 401(k) vs. a Roth IRA has different tax consequences which both parties must consider before reaching any agreement.
Even small mistakes can bring enormous consequences. That’s why it’s advisable to seek knowledgeable legal and financial guidance early on in the process.
Minimizing disputes and future errors
Working with an expert can help avoid lengthy battles over dividing retirement distributions. Divorcing couples often find a reasonable solution by substituting assets to keep these accounts from being reduced, affecting the future rate of return.
Also, plan owners often err by forgetting to update their beneficiaries after a divorce. If you die and your former spouse is still the primary or co-beneficiary, they are entitled to receive the entire amount or whatever percentage you’ve selected.]]>