NEW REPORT SAYS 79% OF SEPARATIONS END IN DIVORCE — CAN POST-MARITAL AGREEMENTS EASE THE PAIN?
Posted: May 30, 2012 Filed under: Alimony, Child Support, Family law, post-marital agreements, prenuptial / premarital agreements, Property Rights | Tags: alimony, child support, divorce, marital separation, post-marital agreement, prenup, prenuptial agreement, separation, separation agreements 3 Comments
According to a recent article published in USA Today, a study of over 7000 individuals conducted by researchers at the Ohio State University found that 79% of marital separations end in divorce.
The study found that the average length of separations that resulted in reconciliation was two years, while the average of those ending in divorce was three years. Surprisingly, the chances of reconciliation virtually disappeared among this group beyond the three-year mark. While many couples who lived apart for three or more years eventually divorced, others simply continued the separation indefinitely.
The study found that women with children under 5 years old were more likely to separate from their husbands rather than to divorce immediately.
All of this means that a great number of couples either delay or forego altogether the protection of laws designed to shield them financially in the event their marriage comes apart. These include laws governing the division of marital assets as well as laws regarding spousal and child support.
In a relatively new trend, some couples seriously contemplating trial separation begin the experiment by negotiating a formal post-marital agreement that sets out their respective financial obligations while still legally married and also in the event of an eventual divorce. In this way, they are able to enter into a trial separation — or in some cases even continue living under the same roof — with the security of an agreed-upon set of rules. This provides each of them with a degree of certainty about their financial future that would not otherwise be possible absent divorce litigation. With financial issues resolved, they are better able to understand the choices they face and to focus on other issues in their relationship.
Just like prenuptial agreements, post-marital agreements must meet certain standards in order to be enforceable. These standards are governed by the laws of individual states, but certain features are universal. First, they must be accompanied by full mutual disclosure of financial information. Second, they must be entered into voluntarily and both parties must have had at least the opportunity to have the agreement reviewed by independent counsel. All courts reserve the right to review both prenuptial agreements and post-marital agreements for fairness, but, provided there are no egregious flaws in the contract, courts generally support and enforce them as a matter of public policy.
Impending separation is not the only reason to consider a post-marital agreement. Events such as the birth of a child, a return to school, or the launch of a business can be good reason for couples to consider adding a post-marital agreement to their financial plan.
ALMOST DONE WITH ALIMONY? NOT SO FAST
Posted: May 22, 2012 Filed under: Alimony, Child Support, Property Rights | Tags: Connecticut Appellate Court, modification alimony, modification child support; modifying alimony, modifying child support, pite. faith whitehead pite, private school tuition, reduc alimony, william pite Leave a comment
In an opinion scheduled to be officially released on May 29th, 2012, the Connecticut Appellate Court has confirmed the notion that even time-limited alimony can be extended unless the decree of dissolution specifically says it can’t.
In 2001, Faith Whitehead was awarded alimony in the amount of $1500 per month that was to terminate the earlier of her remarriage, cohabitation, death, or her 60th birthday. In 2010 when she was about to turn 60, Ms Pite went back to court asking for an extension of the term beyond her 60th birthday. The reason? Her her interest in her ex-husband’s retirement — something awarded to her in original decree– had shrunk with the economy. This meant that her income from that source would no longer be what she originally hoped it would be.
While the trial court did reduce the amount she would receive each month, it nevertheless extended the term alimony indefinitely. The court said it did this in order to effectuate the original intent of the judgement. Otherwise, according to the court, Ms Pite would need to invade her assets in order to maintain her lifestyle, while her husband would not. The court noted, also, that Ms. Pite had not obtained full-time employment which was also part of the original plan.
At the same time Ms. Pite moved to extend her alimony, Mr. Pite sought to terminate his child support on the grounds he had been paying $46,000 in annual tuition for his child at a private boarding school in addition to paying $26,000 in court-ordered child support directly to Ms. Pite. The court did grant a small reduction in periodic child support but refused to terminate the order saying that the decision to send the child to boarding school had been voluntary and in the nature of a gift.
While the trial court did reduce the child support order, the reduction fell far short of offsetting the extra $46,000 Mr. Pite was reportedly paying in tuition.
As it so often does, the Appellate Court cited the very broad discretion enjoyed by trial judges in family matters and, by contrast, the limited scope of review afforded to the appellate court. On appeal, it is never enough that one or more of the appellate judges would have decided a case differently. Instead, in order to alter the results, the reviewing court must find either that the lower court did not correctly apply the law or that the court could not reasonably have concluded as it did.
The take-away lesson –especially for the vast majority of individuals who settle their cases short of trial — is this: It is not enough to say when alimony will end. Instead, your agreement, which will eventually become part of a court order, must also state in clear and unambiguous language that the term of alimony is to be non-modifiable. Otherwise it may someday be up to an individual judge to decide what you really meant when you scheduled a date for the final alimony check to change hands.
As always, we welcome your comments.
