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Birmingham Divorce Law Blog

Do wealthy people face unique issues in a divorce?

A recent article suggested that not only do ultra-wealthy people have more money than the average person, they also face some unique issues pertaining to matters of family law. According to the report, a divorce can lead to the utter derailment of a wealthy couple's family legacy plan. Apparently, even when both spouses wish to hold the best interest of their whole family at heart, complications and battles sometimes arise during divorce proceedings. Alabama residents may wish to take note of the information provided in the article if they, or someone they know, is currently considering filing for divorce.

A panel comprised of professionals from various backgrounds and perspectives, including a psychologist and a family law specialist, recently agreed to be interviewed to discuss some of the issues that seem to be unique to super-wealthy spouses entering into divorce. One of the discussion participants said that it is crucial to set up a task force with a legal team at its center in order to lead wealthy couples through the process. She stated further that if the couple has children, a psychologist should be made a member of the task force as well.

Tax issues sometimes affect division of assets in divorce

Alabama residents who are in the process of ending a marital union will want to take note of a recent article that discusses the various issues that may arise pertaining to different types of taxes. As couples negotiate the division of property and assets during the divorce process, they may have need of formulating agreements when it comes to issues involving federal tax refunds or liabilities with regard to jointly owned assets during the marriage. According to the article, seeking professional financial advice is advisable for those who wish to keep things as uncomplicated and amicable as possible.

Various tax issues can surface during divorce proceedings. The article noted that family law courts do not typically render final orders with regard to things such as income tax because the IRS is typically not bound by state court rulings. Couples are advised to come to an agreement about whether to file jointly on their tax returns; they have that option if they were still married on the final date of the tax year. The article also advised spouses to take into consideration any existing prenuptial or post-nuptial agreements pertaining to earnings from property as these documents may bear significance on how property assets are separated and divided.

Former spouse appeals to court to modify child support

A recent court ruling outside the state of Alabama denied a man's request to lower his child support obligation, as well as mandated that he pay his former wife's attorney fees. According to reports, it is not the first time the defendant has requested that the court modify child support in his case. He has set forth an appeal in the recent court decisions.

An appellate panel has concluded that a court order, mandating the former husband to pay $1,500 in legal fees -- for the woman to whom he was previously married -- and denying his request to lower child support payments, has been erroneously issued. According to reports, the court denied the man's formal requests due to the fact that they were repetitive. The court further stated that it had already denied similar requests from the defendant in the recent past.

Attorney files contempt charge in Dunkel divorce case

Alabama readers may be aware of the divorce proceedings involving David Dunkel, the CEO of Kforce. After the divorce judgment was entered in another state, Dunkel's  former wife filed a contempt of court motion against him, alleging that he intentionally defied court orders relating to the case. Reportedly, the issue involves a court-mandated transfer of stock holdings concerning Kforce, a company with an estimated worth of $1.2 billion. The transfers would make her one of the top shareholders in the company, though both parties have apparently raised issues in the aftermath of the divorce rulings that will be addressed in an upcoming hearing.

Apparently, the former husband transferred $8.2 million in stock to his former wife following a recent court order. She claims, however, that some $7 million worth of stock is still due her, prompting the contempt of court motion for willfully violating the court's mandate. It is also claimed that the former wife is still owed more than $1 million in cash, apart from the stock holdings.

Alabama legislation leads to new divorce strategies

In a recent article, a financial adviser agreed with one of his clients who said that the best way to accrue savings for retirement is to remain married to one spouse and stay in one house. Regardless, statistics prove that some marriages end in divorce. Most couples who divorce have a desire to do so amicably, hopefully reaching a peaceable compromise when it comes to issues such as division of property or child custody and visitation. Recent Alabama legislation led to a new type of collaborative agreement aimed at reducing courtroom disputes and increasing peaceful resolutions to issues faced during proceedings.

The Uniform Collaborative Law Act (UCLA) was passed in Alabama in Jan. 2014. Several prioritized components are included in the process, meant to help couples as they negotiate issues that are often emotionally charged or complicated. Part of the agreement contracted by participating couples and their legal representatives is that the negotiation process involved in the alternative collaborative strategy must lead to an uncontested divorce in order for the parties to maintain their contracted relationship and proceed to courtroom sessions.

Top tax tips for divorcing couples during tax season

Tax season is here. Do you know the top tax tips for divorcing couples? You may not be thinking about taxes if you are getting divorced, which can lead to potential problems in the future if you do not file your taxes correctly.

Your tax filing can have a significant impact on your finances. It is important to be aware of the tax implications during your divorce so you know what factors to consider before filing your tax return. 

Alabama farmers might want to consider prenuptial agreement

Preparing for marriage is an exciting time in a couple's journey through life. At times, however, issues involving personal assets, future inheritances or land ownership come into play, potentially changing adventure to stress if a couple is not careful. Farmers and ranchers preparing for marriage in Alabama might want to consider a recent trend that many landowners are following across the nation. Signing a prenuptial agreement, some say, provides a means of security and prevents potential worries for a soon-to-be married couple.

A recent article stressed the potential value of a prenup in the event that a future marriage becomes dissolved through separation, incapacitation or death. Laws differ by state; therefore, it is wise for a couple to consult a legal professional with experience in the execution of similar contracts in the state in which they reside. When a farm is involved, various issues affect whether it will be seen as a marital asset should the future union eventually dissolve.

Alabama divorcees should be mindful of potential alimony

When married persons decide to go their separate ways, the courts often strive to assist them in creating a more equally-yoked economic status beyond the marriage. Alimony is a court-ordered provision given to support a spouse after divorce. Alabama couples might take note of recent changes that are brewing in another state. States across the nation could potentially embrace such changes, which would be significant in the future lives of both former spouses.

Alimony is not intended to be punitive; rather, it is meant to support a lesser-earning spouse when a marriage ends in civil court. A group in one southern state has called for reform with regard to permanent alimony. Supporters of the legislation say that a person should not be legally obligated to financially support a former spouse for the rest of his or her life. According to the group, those paying alimony would be better served by having a time cap, whereby payments would end rather than continue until death or remarriage. 

Language is important when it comes to a prenuptial agreement

Prior to marriage, many couples decide to enter into a contract which commonly determines property divisions and spousal support in the event of a future divorce. Alabama couples might be interested in a recent decision made by a court in another state. The ruling stated that one couple's prenuptial agreement, executed abroad in 1997, is not valid because one of the spouses could not read the language in which the contract was written.  At the time the agreement was executed, the bride-to-be relied upon a verbal translation offered by her fiance.

The man in question is apparently worth tens of millions of dollars. The woman is said to have trusted the translation he gave of the prenuptial agreement. He represented that it would simply bar her from being able to lay claim to his parent's riches if she divorced him. In 2012, when the woman started proceedings for divorce, she says she was shocked to learn that the agreement barred her from making any claim regarding any of her husband's substantial assets.

Senator says dividing child custody more evenly is good for kids

Most couples who enter into marriage do so hoping that their marriages will last for the rest of their lives. Unfortunately, some studies indicate that approximately half of all married couples in the nation eventually file for divorce. Many of these couples have children. Recently, a senator outside the state of Alabama drafted a bill which would require that child custody be divided more evenly between divorcing spouses.

The senator stated that she believes that it is crucial for children to have frequent interaction with both parents after divorce. She claims that kids receive a multitude of benefits from spending time with both parents, as mothers and fathers have different qualities to offer their children. Her newly introduced bill would ensure that children's time with their non-custodial parents is not less than 35 percent unless extenuating circumstances would deem less visitation appropriate.

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