Life is a journey of mistakes and resolutions. A decision needs not to be correct every time and when it is incorrect, suffering starts. Marriage is not a compromise or commitment by a couple rather it’s the establishment of an intimate relationship between a lady and a gent that ties them physically and mentally. Since, marriage is such an important need, therefore choice of perfect and imposing life partners rectifies and improves your morale fully. But, now such a beautiful lovable entangled relationship has become a commitment. The devilish behavior of one diminishes the other's hope in continuing the further lasting of this relationship. So, the ultimate approach is disappointment, repent and sadness. Now, the governmental laws have manifested a new method to get rid of your undesired choice. If your life partner is suspicious, then solution is always there without too much thinking. The solution is 'Divorce'. Quick divorce attempt is a very simple way of resolution of every agitation. The procedure is simple, easy, demure and quit.
Married couple taking divorce has to wait a long period of time if they not agree on their property partitions of legal formulations that create obstructions. Legal divorce is taking long time and problems are coming sequentially. Sometimes, couples are becoming old and then their case is presenting in the court. Appeal for divorce in court to get judgment in a short time period is delusion. For ease and leniency, online divorces are endorsements. Quick divorce through uncontested divorce method is the simplest way to get rid of the unwanted. Quick divorce reduces the callousness behaviors of lawyers and simplifies the uncontrollable circumstances.
Uncontested quick divorce is mostly the choice of couples who want divorce. You need not to wait for your turn to come. Quick divorce process relieves the people from time wastage and continuous cascades of money. In court, there is too much diplomacy which takes your lot of time and produces unsatisfied results. Online quick divorce process in few good websites with simple and lenient formalities. Legal contested divorce becomes a huge topic and people are using it as a way for their self entertainment while online divorce is confidential and public exclusion makes it more choosable. Quick divorce procedure proves to be advantageous, legal and perpetuate relief.
Austensious relationship cannot satisfy you spiritually, it compels you to be happy physically. Now, leave all types of and use the quick divorce online facilities to be happy and peaceful living. Quick divorce is very helpful for hiding your disapproval and it is under surveillance.
About the Author:
Frank Miller is originator of www.legaldivide.com, Uncontested Divorce an Online Divorce company, any one who is looking Quick Divorce Settlement, wants quick divorce or wants to use our services like Online Divorce Florida, Florida Online Divorce,Quick Divorce, Uncontested Divorce, Divorce Florida,Divorce Online, Florida Divorce, Online Divorce.
Saturday, July 18, 2009
Monday, July 13, 2009
Techniques for Discovering Hidden Assets and Unreported Income During the Divorce Process
Financial issues involved in a divorce - especially high net worth cases - can often become rather complicated. Unreported income and hidden assets are often alleged in divorce proceedings, usually by the spouse who is either not running a business or has not been in charge of the family finances.
It is not uncommon for a spouse to hide assets, especially if the divorce has been planned for quite a while. People hide assets for a variety of reasons, but essentially, they have property or money that they do not want to have discovered.
There are numerous ways to find hidden assets, but typically assets are either placed in the hands of third parties or behind false documents. The process of finding assets or proving unreported income is often one of the most difficult assignments during the divorce process. Being familiar with ways individuals move assets into the hands of third parties or behind false documents and techniques to find those hidden assets can result in the discovery of this property.
The cost of such discovery work must be weighed carefully against the potential benefits. It is important for a budget to be planned for two levels of investigation. At the first level, formal discovery procedures such as interrogatories, depositions, subpoenas, requests to produce and motions to compel can provide information to review and analyze the marital and non-marital estates.
If an individual does not have a detailed list of assets and debts along with documents to prove the whereabouts of these assets, the discovery in identifying the “easy to find” estate can become costly. At this point, a decision has to be made as to whether further money should be spent on the second level of discovery, which investigates and traces transfer of ownership of assets into other individuals’ or entities’ names.
Is the cost of the investigation worth the potential value of the assets which are assumed, at this point, to be hidden? Through diligent and effective preparation, it is possible to discover assets not disclosed or acknowledged by the other party. It is important to create realistic expectations with the client as to the ability to discover assets which have been actively concealed, and the reality that - despite best efforts - it is sometimes impossible to locate willfully hidden assets.
In divorce situations, careful consideration must be given to answer any questions about about potential hidden assets. What types of assets may be hidden? How are assets hidden? What techniques can be used to locate hidden assets?
WHAT ASSETS MAY BE HIDDEN?
The most common types of assets hidden are cash, bonds, mutual funds, cash value in insurance policies and variable annuities, stocks, travelers’ checks, Series EE savings bonds, and bearer municipal bonds.
Conversion of cash into personal property such as art, jewelry, collectibles, antiques, vehicles, boats and planes are also possibilities. Hobby equipment, gun collections, original paintings, collector quality carpets and tools are examples of asset conversion that often are overlooked or undervalued.
HOW ARE ASSETS HIDDEN?
Methods of concealing assets are as varied as the personalities of the individuals involved. In their attempts to veil assets, spouses may often involve relatives or acquaintances who may or may not be aware of their complicity in the diversion of personal assets. It is not unusual to discover the placing of personal possessions or investment certificates into safety deposit boxes in the name of a family member or friend.
Paying down mortgages and credit card balances is yet another method of hiding funds in plain sight. Repayments of phony debts to friends or relatives can appear to be legitimate use of resources. Expenses for paramours such as gifts, travel, rent or tuition for college or classes may be disguised as valid outlays of funds. Assets may be transferred into the name of another family member, friend or corporate entity.
Custodial accounts established under a child’s social security number as well as transfer of assets into pension, profit-sharing, 401(k), and Keogh plans are all strategies for cloaking liquid assets from the opposing party’s view. Employees can work in collusion with their employers to delay business contracts, raises or bonuses until after the divorce.
The transfer of large sums of money to trusts is one way individuals may attempt to disguise assets. Another is to gift money to individuals with the anticipation of having the money returned at a later date. These patently deceptive strategies may be fraudulent as well.
Spouses who own businesses may use the corporate entity to conceal assets. Skimming cash from the business, paying salary to nonexistent employees and then voiding the checks after the divorce, and paying salaries or fees to relatives or close friends for services that may never have actually been rendered then receiving the money back after the divorce is final are all strategies used by business owners to veil cash.
The value of a business prior to a divorce can be lowered artificially by delaying the signing of lucrative long-term business contracts until after a divorce settlement is reached. Unreported income on tax returns and financial statements can reduce the perceived value of a business to the detriment of the other party in the divorce.
WHAT TECHNIQUES CAN BE USED TO LOCATE HIDDEN ASSETS?
Prior to searching for hidden assets, the investigator must have accurate and timely personal identification information for the other spouse. This includes full legal name and variations (nicknames, abbreviations, common misspellings) as well as known aliases. Current and recent address information is essential. While some searches only need the name and not the address, it is always good to have both pieces of information.
Because assets may have been transferred to family members, the names and addresses of close relatives, their social security numbers and dates of birth will be valuable information in tracing movement of property or cash between the spouse and family.
Specific questions may reveal the likelihood of hidden assets evident through lifestyle. Does the spouse travel? If so, where? In what type of hotels do they stay, and what are their activities as they travel? Who makes up their group of friends and what type of people are they? Does the spouse get an automatic transfer of funds or an allowance? Does the spouse deposit a paycheck into a separate account?
Other telling information can be gleaned from answers to questions such as these. Is a credit card statement being mailed to the spouse’s work address? Are large amounts of cash floating around? Is cash used to pay for purchases? Who are the spouse’s accountant and lawyer? Has the other party provided honest reports on prior tax returns? Is there ownership of a business? If so, is it a cash business? Is there a Subchapter S Corporation?
With this basic information in hand, the investigator can pursue specific information from many sources. Here’s a quick list of information sources which should be reviewed.
1. Income Tax returns: This should be the first place to look for possible clues as to the existence of hidden assets. The return provides the roadmap to the discovery of income earning assets and asset sales. The return should also describe the source of income, whether it be interest, dividends, rental income and gain or loss from the sale of a stock. Each page of the tax return should be carefully examined for information.
2. Public Records: Public records are available in county courthouses, city halls and at state repositories. These records contain valuable information that is public and available to anyone who inquires. However, to be efficient with time and resources, one needs to be familiar with how to obtain the types of documents that will reveal asset holdings
Whether termed as obscuring, hiding, obfuscating, veiling or concealing assets, the many methods used by one spouse to prevent access by the other to cash, real, personal or business property can present a seemingly insurmountable wall for attorneys seeking parity or equitable division of marital assets for their client. Due diligence demands exhaustive measures when unethical and/or fraudulent arrangements exist or are suspected. While it may be difficult to bring to light unreported income and hidden assets, clues can be found which are very meaningful to a trained eye, and can open the facts for fair final property settlements.
References:
Abrams Yu and Associates, P.C. "Problems of Hidden Assets in Divorce Litigation." June 07, 2006. http://www.divorcenet.com/states/michigan/problems_of_hidden-assets (accessed April 30, 2009).
Elizabeth L. Bennett, Attorney at Law. "Hidden Assets in Divorce: Are They Discoverable?" Undated. http://www.divorcesource.com/PA/ARTICLES/bennett1.html (accessed April 29, 2009).
Hoover, Joe, and Anni Adkins and Dr. Lew Deitch. "How to Conduct an Assets Search - Part One." HowToInvestigate.com. Undated. http://howtoinvestigate.com/articles/assets_search1.html (accessed April 29, 2009).
Hoover, Joe, Anni Adkins, and Dr. Lew Deitch. "How to Conduct an Assets Search - Part Two - Locating Hidden Assets." HowToInvestigate.com. Undated. http://how to investigate.com/articles/assets_search2.html (accessed April 30, 2009).
Kohn, Mark: CPA, CVA. "Money Matters: Assets & Liabilities: Unreported Income and Hidden Assets." California Divorce.Info. May 1, 2009. http://californiadivorce.info/money.assetsliabilities.unreportedincome-... (accessed May 1, 2009).
Meyer, Cathy. "How to Identify Hidden Assets." About.Com Divorce Support. Undated. http://divorcesupport.about.com/od/propertydistribution/ht/hiddenassets.html (accessed May 30, 2009).
Pearlman, Alan. Chicago Family Law Blog: Divorce and Hidden Assets. December 13, 2005. http://www.chicagofamilylawblog_com/-news-and-updates-divorce-and... (accessed April 30, 2009).
Zerman & Mogerman, LLC. "Discovery and Treatment of Hidden Assets in Divorce Cases." July 17, 2004. http://www.divorcenet.com/states/missouri/mo_art09 (accessed April 30, 2009).
It is not uncommon for a spouse to hide assets, especially if the divorce has been planned for quite a while. People hide assets for a variety of reasons, but essentially, they have property or money that they do not want to have discovered.
There are numerous ways to find hidden assets, but typically assets are either placed in the hands of third parties or behind false documents. The process of finding assets or proving unreported income is often one of the most difficult assignments during the divorce process. Being familiar with ways individuals move assets into the hands of third parties or behind false documents and techniques to find those hidden assets can result in the discovery of this property.
The cost of such discovery work must be weighed carefully against the potential benefits. It is important for a budget to be planned for two levels of investigation. At the first level, formal discovery procedures such as interrogatories, depositions, subpoenas, requests to produce and motions to compel can provide information to review and analyze the marital and non-marital estates.
If an individual does not have a detailed list of assets and debts along with documents to prove the whereabouts of these assets, the discovery in identifying the “easy to find” estate can become costly. At this point, a decision has to be made as to whether further money should be spent on the second level of discovery, which investigates and traces transfer of ownership of assets into other individuals’ or entities’ names.
Is the cost of the investigation worth the potential value of the assets which are assumed, at this point, to be hidden? Through diligent and effective preparation, it is possible to discover assets not disclosed or acknowledged by the other party. It is important to create realistic expectations with the client as to the ability to discover assets which have been actively concealed, and the reality that - despite best efforts - it is sometimes impossible to locate willfully hidden assets.
In divorce situations, careful consideration must be given to answer any questions about about potential hidden assets. What types of assets may be hidden? How are assets hidden? What techniques can be used to locate hidden assets?
WHAT ASSETS MAY BE HIDDEN?
The most common types of assets hidden are cash, bonds, mutual funds, cash value in insurance policies and variable annuities, stocks, travelers’ checks, Series EE savings bonds, and bearer municipal bonds.
Conversion of cash into personal property such as art, jewelry, collectibles, antiques, vehicles, boats and planes are also possibilities. Hobby equipment, gun collections, original paintings, collector quality carpets and tools are examples of asset conversion that often are overlooked or undervalued.
HOW ARE ASSETS HIDDEN?
Methods of concealing assets are as varied as the personalities of the individuals involved. In their attempts to veil assets, spouses may often involve relatives or acquaintances who may or may not be aware of their complicity in the diversion of personal assets. It is not unusual to discover the placing of personal possessions or investment certificates into safety deposit boxes in the name of a family member or friend.
Paying down mortgages and credit card balances is yet another method of hiding funds in plain sight. Repayments of phony debts to friends or relatives can appear to be legitimate use of resources. Expenses for paramours such as gifts, travel, rent or tuition for college or classes may be disguised as valid outlays of funds. Assets may be transferred into the name of another family member, friend or corporate entity.
Custodial accounts established under a child’s social security number as well as transfer of assets into pension, profit-sharing, 401(k), and Keogh plans are all strategies for cloaking liquid assets from the opposing party’s view. Employees can work in collusion with their employers to delay business contracts, raises or bonuses until after the divorce.
The transfer of large sums of money to trusts is one way individuals may attempt to disguise assets. Another is to gift money to individuals with the anticipation of having the money returned at a later date. These patently deceptive strategies may be fraudulent as well.
Spouses who own businesses may use the corporate entity to conceal assets. Skimming cash from the business, paying salary to nonexistent employees and then voiding the checks after the divorce, and paying salaries or fees to relatives or close friends for services that may never have actually been rendered then receiving the money back after the divorce is final are all strategies used by business owners to veil cash.
The value of a business prior to a divorce can be lowered artificially by delaying the signing of lucrative long-term business contracts until after a divorce settlement is reached. Unreported income on tax returns and financial statements can reduce the perceived value of a business to the detriment of the other party in the divorce.
WHAT TECHNIQUES CAN BE USED TO LOCATE HIDDEN ASSETS?
Prior to searching for hidden assets, the investigator must have accurate and timely personal identification information for the other spouse. This includes full legal name and variations (nicknames, abbreviations, common misspellings) as well as known aliases. Current and recent address information is essential. While some searches only need the name and not the address, it is always good to have both pieces of information.
Because assets may have been transferred to family members, the names and addresses of close relatives, their social security numbers and dates of birth will be valuable information in tracing movement of property or cash between the spouse and family.
Specific questions may reveal the likelihood of hidden assets evident through lifestyle. Does the spouse travel? If so, where? In what type of hotels do they stay, and what are their activities as they travel? Who makes up their group of friends and what type of people are they? Does the spouse get an automatic transfer of funds or an allowance? Does the spouse deposit a paycheck into a separate account?
Other telling information can be gleaned from answers to questions such as these. Is a credit card statement being mailed to the spouse’s work address? Are large amounts of cash floating around? Is cash used to pay for purchases? Who are the spouse’s accountant and lawyer? Has the other party provided honest reports on prior tax returns? Is there ownership of a business? If so, is it a cash business? Is there a Subchapter S Corporation?
With this basic information in hand, the investigator can pursue specific information from many sources. Here’s a quick list of information sources which should be reviewed.
1. Income Tax returns: This should be the first place to look for possible clues as to the existence of hidden assets. The return provides the roadmap to the discovery of income earning assets and asset sales. The return should also describe the source of income, whether it be interest, dividends, rental income and gain or loss from the sale of a stock. Each page of the tax return should be carefully examined for information.
2. Public Records: Public records are available in county courthouses, city halls and at state repositories. These records contain valuable information that is public and available to anyone who inquires. However, to be efficient with time and resources, one needs to be familiar with how to obtain the types of documents that will reveal asset holdings
Whether termed as obscuring, hiding, obfuscating, veiling or concealing assets, the many methods used by one spouse to prevent access by the other to cash, real, personal or business property can present a seemingly insurmountable wall for attorneys seeking parity or equitable division of marital assets for their client. Due diligence demands exhaustive measures when unethical and/or fraudulent arrangements exist or are suspected. While it may be difficult to bring to light unreported income and hidden assets, clues can be found which are very meaningful to a trained eye, and can open the facts for fair final property settlements.
References:
Abrams Yu and Associates, P.C. "Problems of Hidden Assets in Divorce Litigation." June 07, 2006. http://www.divorcenet.com/states/michigan/problems_of_hidden-assets (accessed April 30, 2009).
Elizabeth L. Bennett, Attorney at Law. "Hidden Assets in Divorce: Are They Discoverable?" Undated. http://www.divorcesource.com/PA/ARTICLES/bennett1.html (accessed April 29, 2009).
Hoover, Joe, and Anni Adkins and Dr. Lew Deitch. "How to Conduct an Assets Search - Part One." HowToInvestigate.com. Undated. http://howtoinvestigate.com/articles/assets_search1.html (accessed April 29, 2009).
Hoover, Joe, Anni Adkins, and Dr. Lew Deitch. "How to Conduct an Assets Search - Part Two - Locating Hidden Assets." HowToInvestigate.com. Undated. http://how to investigate.com/articles/assets_search2.html (accessed April 30, 2009).
Kohn, Mark: CPA, CVA. "Money Matters: Assets & Liabilities: Unreported Income and Hidden Assets." California Divorce.Info. May 1, 2009. http://californiadivorce.info/money.assetsliabilities.unreportedincome-... (accessed May 1, 2009).
Meyer, Cathy. "How to Identify Hidden Assets." About.Com Divorce Support. Undated. http://divorcesupport.about.com/od/propertydistribution/ht/hiddenassets.html (accessed May 30, 2009).
Pearlman, Alan. Chicago Family Law Blog: Divorce and Hidden Assets. December 13, 2005. http://www.chicagofamilylawblog_com/-news-and-updates-divorce-and... (accessed April 30, 2009).
Zerman & Mogerman, LLC. "Discovery and Treatment of Hidden Assets in Divorce Cases." July 17, 2004. http://www.divorcenet.com/states/missouri/mo_art09 (accessed April 30, 2009).
Friday, July 10, 2009
Divorce - Court Room Tips
When it comes to the Court Room, you will find this to be a pretty place. Once the divorce proceedings begin, the outcome of your divorce is in the hands of a total stranger - the Judge. You no longer have control. All decisions will now be made by a stranger. Of course this stranger may be having a bad day, not feeling well, or even have had a major fight with their spouse the night before. I know it's scary and may even seem unfair, but this is the real world and it happens all the time. This judge is now in control of the outcome of your trial.
Here are a few tips to help prepare you for the Court Room experience:
First, I strongly recommend you try to settle as many issues as possible before entering the Court Room. This means the judge won't be in control of everything.
Do not expect the Judge will always make decisions in your favor. There are three directions the judge can go when making a decision: Your way, your spouse's way, or the Judge's way. As you can see, two out three are not in your favor.
Discuss how you should act, and when to speak with you attorney before going into the courtroom. Do not speak unless asked to do so by the Judge.
When addressing the Judge with respect by addressing him/her as "Your Honor."
Never speak to or make comments to your spouse when you are before the Judge.
Leave all hostile and negative emotions at the door. Do not make faces or gestures when the judge or your spouse's attorney is speaking. Judges see this and do not appreciate it.
Dress for success. Your attorney will have a certain strategy on how he/she wants you to be portrayed. Therefore, consult your attorney on how he/she wants you to dress.
Take notes. Don't leave anything to chance. Your attorney will be very busy during the process and cannot remember or write everything down.
Be prepared and stay organized. Bring as much information, documentation and any pertinent documents that you possibly can with you. It is better to have too much ammunition than not enough.
Be prepared to be in the court house for some time. You will sometimes wait for hours before your case is called.
You can get more divorce tips and strategies at www.DivorceAmmo.com
Here are a few tips to help prepare you for the Court Room experience:
First, I strongly recommend you try to settle as many issues as possible before entering the Court Room. This means the judge won't be in control of everything.
Do not expect the Judge will always make decisions in your favor. There are three directions the judge can go when making a decision: Your way, your spouse's way, or the Judge's way. As you can see, two out three are not in your favor.
Discuss how you should act, and when to speak with you attorney before going into the courtroom. Do not speak unless asked to do so by the Judge.
When addressing the Judge with respect by addressing him/her as "Your Honor."
Never speak to or make comments to your spouse when you are before the Judge.
Leave all hostile and negative emotions at the door. Do not make faces or gestures when the judge or your spouse's attorney is speaking. Judges see this and do not appreciate it.
Dress for success. Your attorney will have a certain strategy on how he/she wants you to be portrayed. Therefore, consult your attorney on how he/she wants you to dress.
Take notes. Don't leave anything to chance. Your attorney will be very busy during the process and cannot remember or write everything down.
Be prepared and stay organized. Bring as much information, documentation and any pertinent documents that you possibly can with you. It is better to have too much ammunition than not enough.
Be prepared to be in the court house for some time. You will sometimes wait for hours before your case is called.
You can get more divorce tips and strategies at www.DivorceAmmo.com
Tuesday, July 7, 2009
Dealing With Divorce in a Down Real Estate Market
Finally coming to grips with the decision to divorce can be stressful enough, but when you add the problem of what to do with the marital home when houses aren’t selling, it can virtually blow up your stress meter.
Many divorce situations find one spouse keeping the home and refinancing the mortgage to pay off the other (also a difficult feat in light of the recent mortgage meltdown). That may or may not be a good option, depending on many factors.
In situations where the home must be sold, possibly because the mortgage payment is not manageable by one spouse or they are ready to move on and leave the memories behind, trying to sell on the downside may not be easy or desirable. Selling in a buyers market means that you may take less for your home or risk waiting for a considerable amount time for it to sell at your higher asking price.
Some other options that are available, but not always understood include the Lease Purchase, Lease Option and Subject To methods of buying and selling real estate. If you don’t need all of the equity in your home at the time of the divorce, these options might be of interest to you.
Of course, each has its pros and cons and as with any matters such as these, I recommend working with professionals like a real estate attorney and RE broker who are well versed in these options. These methods can have traps to them so you are highly advised not to go it alone.
Lease Purchase- This is where buyers “rent to own.” Many times buyers in this situation have cash, but credit problems do not allow them to get a mortgage at the present time. By doing a lease purchase, they usually present a nice chunk of cash for the down payment and are committing to buy your home at a later date, typically one or two years down the road, giving them time to work on repairing their credit issues. Rental payments may or may not include extra toward the down payment. There are no hard and fast rules here, everything is pretty much negotiable and allows for creative options on both sides.
Pros- This is an option that opens your market to more buyers. Sigurd Hoyer, is a licensed Real Estate broker with Real Estate Central in Kennesaw, Ga. (www.sigsblog.com) and has nearly 20 years experience. He says, “This is the best option for the seller as the buyer is technically obligated to purchase. It puts more control in the seller’s hands.” He goes on to explain that this is similar to a tenancy and you should follow the same due diligence as you would with a regular rental including checking references, past landlords, employers and their credit report (remembering that there will most likely be credit issues).
Cons- Remember you still own the property and are still legally obligated to pay the mortgage and any other expenses such as repairs (unless written to the contrary in the contract) on the property. Make sure that the deal cash flows (covers all costs) or be prepared to pay extra every month out of your own pocket. In addition, you still have liability on the property so carry adequate insurance. If the buyer does not purchase, you may have to sue to claim damages.
Next we have the Lease Option - Almost identical in its features to the lease option, the biggest difference is that the buyer has the “option” to buy, rather than the “obligation.” For those looking to purchase after a divorce this may be a good bet, but if you are on the selling side steer clear as this option puts more control in the buyers hands.
One other option that you may hear about is “Subject To” – This entails a buyer essentially taking over your payments subject to your current mortgage. Beware of this set-up. While investors may love this option and there are situations where this can be acceptable, Sig Hoyer advises, “Generally this is a move of desperation and not usually the best option for a seller. Use extreme caution when considering this.”
Moving out and moving on with your life after divorce, even in a down market, can happen with a little flexibility and creativity. Still always work with a real estate professional who is familiar with these techniques so you don’t get burned when it finally comes time to finalize the sale.
About the Author:
Lisa C. Decker is an expert in divorce financial matters. As a discreet problem-solver and trusted advisor she utilizes cutting edge tools and industry insight to guide her clients during one of life's most difficult challenges by helping them to “Divorce Your Spouse, Not Your Assets.” Visit Lisa at www.DivorceFinancialInsight.com for details and get her FREE Audio Series - "5 Things You Must Know BEFORE You Sign on the Dotted Line!”
Many divorce situations find one spouse keeping the home and refinancing the mortgage to pay off the other (also a difficult feat in light of the recent mortgage meltdown). That may or may not be a good option, depending on many factors.
In situations where the home must be sold, possibly because the mortgage payment is not manageable by one spouse or they are ready to move on and leave the memories behind, trying to sell on the downside may not be easy or desirable. Selling in a buyers market means that you may take less for your home or risk waiting for a considerable amount time for it to sell at your higher asking price.
Some other options that are available, but not always understood include the Lease Purchase, Lease Option and Subject To methods of buying and selling real estate. If you don’t need all of the equity in your home at the time of the divorce, these options might be of interest to you.
Of course, each has its pros and cons and as with any matters such as these, I recommend working with professionals like a real estate attorney and RE broker who are well versed in these options. These methods can have traps to them so you are highly advised not to go it alone.
Lease Purchase- This is where buyers “rent to own.” Many times buyers in this situation have cash, but credit problems do not allow them to get a mortgage at the present time. By doing a lease purchase, they usually present a nice chunk of cash for the down payment and are committing to buy your home at a later date, typically one or two years down the road, giving them time to work on repairing their credit issues. Rental payments may or may not include extra toward the down payment. There are no hard and fast rules here, everything is pretty much negotiable and allows for creative options on both sides.
Pros- This is an option that opens your market to more buyers. Sigurd Hoyer, is a licensed Real Estate broker with Real Estate Central in Kennesaw, Ga. (www.sigsblog.com) and has nearly 20 years experience. He says, “This is the best option for the seller as the buyer is technically obligated to purchase. It puts more control in the seller’s hands.” He goes on to explain that this is similar to a tenancy and you should follow the same due diligence as you would with a regular rental including checking references, past landlords, employers and their credit report (remembering that there will most likely be credit issues).
Cons- Remember you still own the property and are still legally obligated to pay the mortgage and any other expenses such as repairs (unless written to the contrary in the contract) on the property. Make sure that the deal cash flows (covers all costs) or be prepared to pay extra every month out of your own pocket. In addition, you still have liability on the property so carry adequate insurance. If the buyer does not purchase, you may have to sue to claim damages.
Next we have the Lease Option - Almost identical in its features to the lease option, the biggest difference is that the buyer has the “option” to buy, rather than the “obligation.” For those looking to purchase after a divorce this may be a good bet, but if you are on the selling side steer clear as this option puts more control in the buyers hands.
One other option that you may hear about is “Subject To” – This entails a buyer essentially taking over your payments subject to your current mortgage. Beware of this set-up. While investors may love this option and there are situations where this can be acceptable, Sig Hoyer advises, “Generally this is a move of desperation and not usually the best option for a seller. Use extreme caution when considering this.”
Moving out and moving on with your life after divorce, even in a down market, can happen with a little flexibility and creativity. Still always work with a real estate professional who is familiar with these techniques so you don’t get burned when it finally comes time to finalize the sale.
About the Author:
Lisa C. Decker is an expert in divorce financial matters. As a discreet problem-solver and trusted advisor she utilizes cutting edge tools and industry insight to guide her clients during one of life's most difficult challenges by helping them to “Divorce Your Spouse, Not Your Assets.” Visit Lisa at www.DivorceFinancialInsight.com for details and get her FREE Audio Series - "5 Things You Must Know BEFORE You Sign on the Dotted Line!”
Sunday, July 5, 2009
A Lack of Financial Clarity During Your Divorce Leads to Disaster!
In this article I am going to show you how to arrive at a mutually beneficial outcome for your divorce, reduce the cost of it, reduce the time it takes to get one, save your kids, and reduce your stress. The goal is to come up with a fair and equitable settlement by quantifying and visualizing proposed settlement offers thereby becoming an empowered decision maker.
Arrive at a mutually beneficial outcome
So how do you arrive at a mutually beneficial outcome? It begins with having the right mindset about this. You have to assemble a team of experts (attorney, Certified Divorce Financial Analyst™ and a mental health professional) to help you get through this difficult time and obtain the benefits listed in the introduction. Doing it any other way is a mistake.
Gaining complete clarity about your financial picture is the key. You have to have all of the details because the devil is in the details. How can you make an informed decision about a settlement offer without having complete clarity of the outcome? The simple answer is you can’t and don’t let anyone talk you into thinking otherwise. You have to have a detailed analysis of where you are currently and then look at any settlement offers you are proposing to your spouse or ones they have submitted to you. This includes the tax ramifications.
Often times most of the divorce planning that I know of is done during mediation on a yellow pad and a white board! That is a total waste of time and money. Everyone is “winging it” with the hopes that you come to an agreement only to regret it later. Tax mistakes are often made resulting in an unfair settlement. Do not become a victim of this kind of planning.
Other mistakes include and not limited to: keeping the house and later discovering that you can’t afford it, structuring alimony improperly causing you to pay unnecessary taxes, relying on financial advice from friends and untrained professionals (CPA and financial advisors including Certified Financial Planners, insurance salesman and stockbrokers) who mean well and are not specifically trained in divorce financial planning, missing “hidden assets and income” that are an essential part of the divorce analysis, marital and premarital assets and the growth of them, the real value of a pension as an asset, who should keep which assets and debts, factoring in social security income, an accurate lifestyle assessment for each party, executive perks including the value of sick pay, unpaid vacation and stock option valuation, not knowing what the business is worth, not determining the need and the ability to pay alimony, unrealistic goals, not analyzing the financial and tax impact of drawing on retirement assets to support current income needs, and many others.
What you don’t know will hurt you financially. So insist on getting the answers to all of your questions.
A Certified Divorce Financial Analyst can work with your attorney and come up with forecasts of how your net worth and income will look net after taxes under various "what if" scenarios. They can help you choose what assets to keep and ones to let go of. In other words, they forecast the future value of assets (based upon realistic assumptions) and income and see what life may look like for you financially after the divorce is over in advance. They can help you avoid unexpected future tax liabilities from assets you accept. You can base your decisions on objective, accurate financial data and not on guesswork or vagueness.
Reduce the cost of your divorce
The average cost of a mediated divorce is less than $7,000 and $20,000 for a collaborative divorce and a whopping $78,000 for a drawn-out litigated one.*
The above costs do not include opportunity costs. That is the cost for having to “spend” time preparing for your divorce and going to meetings AND not earning money because of that. Here is an example:
A professional making $200 per hour is going through a litigated divorce that is being dragged out over a one-year period of time (modest amount of time in reality). He/she has put 50 hours of their time towards it. That equates to $10,000 that was “lost” because they were involved in their case when they could’ve been earning that money. Most people overlook this. Another common problem is that you can't make any financial decisions with the consent of your spouse. I live in Orlando, Florida and watched the value of houses decline substantially. People who were in dragged out divorces "lost" a lot of equity in their homes during that time. This could have been minimized.
Reduce time
The traditional divorce on average takes approximately two years to complete. Two years of being stuck in “no-man’s land” without any control of your situation - month after month of being in fear, having anger, regrets and anxiety. It doesn’t have to be that way. Your team can help you move quickly and efficiently through your divorce and get you out of your “pain and anxiety” by providing you with a clear picture about your finances so that you may make informed decisions about your financial future and move on with your life. Often times this may be done within three to six months depending on the complexity of your finances.
Save The Kids
By helping you gain clarity about your financial future, you will move quickly and efficiently through your divorce without using the kids as a bargaining chip that happens too often in traditional divorce cases. Don’t underestimate what they hear, know and feel.
Reduce Your Stress
Take the “mystery” and the fear that accompanies it out of your financial picture. Gain complete clarity about your finances in plain English. Having this newfound clarity will empower you so that you can make informed decisions about our financial future. You will gain peace of mind by utilizing your team’s expertise that will deliver that clarity.
There is a right way to serve a tennis ball and a wrong way. There is the right way to hit a golf ball and a wrong way. The same can be said about getting a divorce. Working with the right team is the right way to go. Be smart about it.
Having a team in place as mentioned above may sound very expensive yet in the long run had proven to be less expensive. Your team may find hidden assets, save you taxes, prevent you from making financial errors that could cost you dearly, and save you a lot of time, which is money.
*Source: Collaborative Divorce Could Be Society’s Wave of The Future by US News & World Report dated June 13, 2008.
About the Author
Scott Martin is a Certified Divorce Financial Analyst and a Certified Financial Planner and president of DivorceDirection, LLC who helps people avoid the financial pitfalls of divorce. He is divorced and knows from first hand experience all of the financial issues that must be examined for a fair and equitable settlement. For more information visit http://www.divorcedirection.com
Arrive at a mutually beneficial outcome
So how do you arrive at a mutually beneficial outcome? It begins with having the right mindset about this. You have to assemble a team of experts (attorney, Certified Divorce Financial Analyst™ and a mental health professional) to help you get through this difficult time and obtain the benefits listed in the introduction. Doing it any other way is a mistake.
Gaining complete clarity about your financial picture is the key. You have to have all of the details because the devil is in the details. How can you make an informed decision about a settlement offer without having complete clarity of the outcome? The simple answer is you can’t and don’t let anyone talk you into thinking otherwise. You have to have a detailed analysis of where you are currently and then look at any settlement offers you are proposing to your spouse or ones they have submitted to you. This includes the tax ramifications.
Often times most of the divorce planning that I know of is done during mediation on a yellow pad and a white board! That is a total waste of time and money. Everyone is “winging it” with the hopes that you come to an agreement only to regret it later. Tax mistakes are often made resulting in an unfair settlement. Do not become a victim of this kind of planning.
Other mistakes include and not limited to: keeping the house and later discovering that you can’t afford it, structuring alimony improperly causing you to pay unnecessary taxes, relying on financial advice from friends and untrained professionals (CPA and financial advisors including Certified Financial Planners, insurance salesman and stockbrokers) who mean well and are not specifically trained in divorce financial planning, missing “hidden assets and income” that are an essential part of the divorce analysis, marital and premarital assets and the growth of them, the real value of a pension as an asset, who should keep which assets and debts, factoring in social security income, an accurate lifestyle assessment for each party, executive perks including the value of sick pay, unpaid vacation and stock option valuation, not knowing what the business is worth, not determining the need and the ability to pay alimony, unrealistic goals, not analyzing the financial and tax impact of drawing on retirement assets to support current income needs, and many others.
What you don’t know will hurt you financially. So insist on getting the answers to all of your questions.
A Certified Divorce Financial Analyst can work with your attorney and come up with forecasts of how your net worth and income will look net after taxes under various "what if" scenarios. They can help you choose what assets to keep and ones to let go of. In other words, they forecast the future value of assets (based upon realistic assumptions) and income and see what life may look like for you financially after the divorce is over in advance. They can help you avoid unexpected future tax liabilities from assets you accept. You can base your decisions on objective, accurate financial data and not on guesswork or vagueness.
Reduce the cost of your divorce
The average cost of a mediated divorce is less than $7,000 and $20,000 for a collaborative divorce and a whopping $78,000 for a drawn-out litigated one.*
The above costs do not include opportunity costs. That is the cost for having to “spend” time preparing for your divorce and going to meetings AND not earning money because of that. Here is an example:
A professional making $200 per hour is going through a litigated divorce that is being dragged out over a one-year period of time (modest amount of time in reality). He/she has put 50 hours of their time towards it. That equates to $10,000 that was “lost” because they were involved in their case when they could’ve been earning that money. Most people overlook this. Another common problem is that you can't make any financial decisions with the consent of your spouse. I live in Orlando, Florida and watched the value of houses decline substantially. People who were in dragged out divorces "lost" a lot of equity in their homes during that time. This could have been minimized.
Reduce time
The traditional divorce on average takes approximately two years to complete. Two years of being stuck in “no-man’s land” without any control of your situation - month after month of being in fear, having anger, regrets and anxiety. It doesn’t have to be that way. Your team can help you move quickly and efficiently through your divorce and get you out of your “pain and anxiety” by providing you with a clear picture about your finances so that you may make informed decisions about your financial future and move on with your life. Often times this may be done within three to six months depending on the complexity of your finances.
Save The Kids
By helping you gain clarity about your financial future, you will move quickly and efficiently through your divorce without using the kids as a bargaining chip that happens too often in traditional divorce cases. Don’t underestimate what they hear, know and feel.
Reduce Your Stress
Take the “mystery” and the fear that accompanies it out of your financial picture. Gain complete clarity about your finances in plain English. Having this newfound clarity will empower you so that you can make informed decisions about our financial future. You will gain peace of mind by utilizing your team’s expertise that will deliver that clarity.
There is a right way to serve a tennis ball and a wrong way. There is the right way to hit a golf ball and a wrong way. The same can be said about getting a divorce. Working with the right team is the right way to go. Be smart about it.
Having a team in place as mentioned above may sound very expensive yet in the long run had proven to be less expensive. Your team may find hidden assets, save you taxes, prevent you from making financial errors that could cost you dearly, and save you a lot of time, which is money.
*Source: Collaborative Divorce Could Be Society’s Wave of The Future by US News & World Report dated June 13, 2008.
About the Author
Scott Martin is a Certified Divorce Financial Analyst and a Certified Financial Planner and president of DivorceDirection, LLC who helps people avoid the financial pitfalls of divorce. He is divorced and knows from first hand experience all of the financial issues that must be examined for a fair and equitable settlement. For more information visit http://www.divorcedirection.com
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