Divorce Newsletters

Impact of Bankruptcy Laws on Divorce Generally

Traditionally, the entire gamut of matrimonial law has been a creature of state law, not federal law. As such, federal courts generally may not intervene in the marital area unless a particular issue comes into conflict with federal law. Bankruptcy is one such area, and it can arise because of the effect that divorce has on spouses' property ownership and financial situation. In divorces involving a complex asset structure or extensive and varied types of property, bankruptcy by both spouses certainly can affect marital property distribution, depending in part on what distribution scheme the forum state follows. Otherwise, it often is the bankruptcy of only one spouse initially that sets off the complicated bankruptcy-divorce scenario.

Lump Sum Spousal Support

Spousal support can be one of the most difficult issues to resolve in divorce. Spousal support, which is also referred to as alimony, involves an obligation by one spouse to make financial payments to the other spouse. Permanent spousal support involves the payment of support after a divorce is granted and until a further court ruling modifies or terminates the obligation. Permanent spousal support may be ordered in situations involving long-term marriages or in situations where one party cannot earn a living due to a disability or injury. Such spousal support can be paid in lump sum or on monthly basis.

Property Division in Divorce: Equitable Distribution

As the name implies, "equitable distribution" seeks to give the divorce court some discretion to distribute property equitably in divorce. Many common-law states and some community property states use equitable distribution for dividing marital assets and debts between divorcing spouses. Many equitable distribution states also apply the scheme to divisible property, and some so-called "all property" states may apply it to all of the spouses' property.

Role of Mediation in Divorce

The divorce process can be a very emotional and trying time in one's life. Often the process involves confrontations and complicated legal disputes. In recent years, divorce mediation has become more popular because it can be more effective, less costly, and yet a successful method for settling divorce disputes. Mediation is an alternative method of resolving matrimonial issues that are involved in divorce. It is a process in which couples can amicably work out marital, financial, and property-related disputes with the help of a neutral third party known as a mediator.

Role of Valuation Experts in Divorce

Property division between the spouses is an important issue in a divorce proceeding. Ascertaining the correct and proper value of the assets and properties of the spouses is key to ensuring a fair and equitable division of the parties' assets. The advice of an expert, who is skilled either by training, special knowledge, education or experience in the specific field beyond the knowledge of an ordinary layman, will be of great help for clearly defining and ascertaining the value of property for future divisions and tax procedures, etc. A common example would be an accountant with specific knowledge of the formulas utilized to calculate the present value of various retirement interests.