Which Assets Should I Look For?

Every spousal financial relationship is unique. Through the years, couples develop their own systems for handling financial matters. Sometimes it is one partner's responsibility to manage all finances, sometimes the other's and sometimes a combination. Whatever the situation, certain information should be shared.

Couples should consider mutual responsibility for and knowledge of:

Retirement plans: Take time to fully acquaint each other with employer retirement benefits. Both partners should have current knowledge of pension plans, 401(k) accounts and IRAs. For a complete picture of expected retirement benefits, become familiar with each other's Social Security benefits, as well. Understanding retirement benefit information will bring clarity and facilitate retirement planning.

Credit card documents: This one can be scary. Some may prefer to not know how much credit card debt their spouse has accumulated. But it's wise to know where to find account numbers in case one loses his or her wallet and needs the other to help cancel the card. Also, mutual awareness of credit card debt amounts will help with developing a family's overall financial plan.

Power of attorney: It is generally a good idea to have power of attorney on any individually owned assets, just in case one becomes ill or otherwise unavailable. Power of attorney can be limited to specific functions for a certain period, such as selling stocks or withdrawing money while traveling. A broad document that authorizes each partner to handle almost any situation in the other's absence is also a consideration.

Wills, trusts and life insurance: It's especially important to share information about wills, trusts and life insurance if either has been married before. There could be restrictions on how some assets may be used and beneficiaries left unchanged by mistake. Most important, make sure each partner knows where to find wills and will be able to easily access it if something were to happen.

Health insurance policies: Most insurance companies will cover care administered in the first 24 to 48 hours of a medical emergency, even if the coverage details have not been sorted out. But the situation isn't as clear with hospital visits that are less urgent. If each partner is covered under a different insurance plan, both should be familiarized with the requirement "hoops" they may have to jump through.

If one spouse had a sudden illness, would the other know which doctor to call first to get an okay for treatment? If not, they risk running up big bills at an out-of-network doctor.

Business loans: If one spouse owns a business or is a partner in a professional firm, both should know about any personally guaranteed loans. It is critical to be aware of liabilities since household assets can be hit if the business can't repay the loan.

While many don't necessarily need to know everything about their spouse's finances, maintaining a working knowledge of the above points can help maintain

By Matthew A. Bell, CDFA, WMS

Time Is Money: Dealing Successfully With a Divorce Attorney

Dealing with divorce and divorce lawyers is not much different than taking a trip without first plotting out the route. If you go to a matrimonial lawyer without specific objectives or goals in mind, and think he or she can fix it for you, you'll be disappointed. Given a specific set of facts, lawyers are trained to apply the law and advise clients about ways to attain specific goals - or at least some of them.

Here are some basic guidelines:

1. Gather as much of your financial and other information as possible before you go to see your lawyer. This includes tax returns and schedules, financial statements, budget documents and the like from at least the last five years.

2. Make sure your fee arrangement is in writing, that you understand it before you sign, and that everyone understands how you will pay your bill. Generally, lawyers are not allowed to take a percentage of what is recovered for you in a divorce case, so expect to pay by the hour.

3. Since you won't always need to talk to your lawyer when you have questions, meet and get to know the paralegal or secretary.

4. Write out your questions, then make an appointment with the lawyer and take notes about what you're told.

5. Photocopies made at the lawyer's office may cost you 25 or more cents per page, sometimes plus the time of the person making the copies. So for numerous copies, consider making your own at copy shops to save money.

6. If you don't understand something, ask. And if you have a problem with the way your lawyer is handling your case, also ask. Don't allow the issue to fester.

7.Your lawyer should keep you reasonably informed about the status of your case by sending you copies of what goes out of the office. Then you'll be less likely to make emergency calls. Remember: Spur-of-the-moment calls just to find out what's going on can get expensive.

8. Don't second-guess your lawyer based on the advice of friends and family. But if you feel strongly about a point, seek a second opinion. Let your lawyer know you feel this way.

9. Remember that your lawyer works for you. After you have been fully informed and have reviewed your options, you and your lawyer should decide upon a course of action suitable to your situation.

10. Don't be surprised if your case takes time to get resolved. Although everyone is in a hurry to complete his/her case, you will have no control over scheduling issues that can keep your case in limbo for a long time.

11. If your lawyer promises or guarantees you a result, get another lawyer.

Jan Collins, a writer and editor, and Jan Warner, matrimonial tax and elder-law attorney.

Understanding Child Custody

In my experience, “Joint Custody” and “Sole Custody” are probably two of the most misused and misunderstood terms in family law cases. People often throw these terms around without really understanding what they mean.

The most common misconception is that if you are awarded sole custody of your children, the other parent will never see them again. People often come to my office requesting “sole custody” when their primary goal is to take their children away from the other parent completely. Likewise, people often believe that joint custody means that the children will live with one parent 50% of the time, and with the other parent 50% of the time. In both cases, the opposite is true.

The legal term for joint custody is Joint Managing Conservatorship (JMC). In a JMC, both parents are able to make decisions regarding issues such as education, religious upbringing, medical care, etc. Although both parents share in the decision making, one parent will typically be named as the “Primary” JMC. The primary JMC is the parent who gets to decide where the child lives. In addition to having the right to determine the residence of the child, the primary JMC is also entitled to collect child support from the other parent.

Unlike JMC, in a Sole Managing Conservatorship (SMC), one parent is appointed to make all the major decisions regarding the child's upbringing, including where the child will live. Naming one parent as the SMC is usually done when the court finds that joint custody is not in the best interests of the child. In this situation, the non-custodial parent will be allowed the same visitation as in joint custody; however, he or she will not be able to participate in the decision making process. *It’s important to note that under certain circumstances, the Court will name one parent SMC and restrict the other parent’s access to the child all together.

What is an Uncontested Divorce? Is it right for you?

Uncontested divorces are divorces of agreement. In an uncontested divorce, the parties agree to resolve all issues (prior to filing) without the need for court intervention.

Here, the lawyer's role is limited to the preparation of pleadings, the divorce decree, and the closing documents. Typically, there is only one lawyer involved, and only one court appearance is necessary to finalize the divorce. Because of this, legal fees are substantially reduced.

To determine whether an uncontested divorce is right for you, consider the following:

• Marital Property Division
• Child Support
• Child Custody
• Debt Allocation

If you and your spouse can reach an agreement on the above, there is no reason why you shouldn't be able to proceed with an uncontested divorce.

The Divorce Process: Do's and Don'ts

Divorce can be a difficult process. Even in the best of circumstances, tempers may run high, and every decision can seem to be more stressful than the last. It is only human to find yourself reacting emotionally at certain stages of a divorce, but it is important to remember that your actions throughout the process can affect your familial, emotional, and financial situation for years to come. Following are some "do's and don'ts" for the divorce process.

THE DO's

DO be reasonable and cooperate as much as possible with your soon-to-be-ex. Reasonable compromise yields quicker and easier results in divorce cases.

DO support your children through this process. It's even tougher on them than on you. Don't make them pick sides.

DO let your spouse know when and where you will spend time with your kids while you work out permanent custody arrangements. Your spouse might think you've made a run for the border -- and if your soon-to-be-ex has to ask the police to track you down, that won't look good during custody or visitation hearings.

DO fully disclose all your assets and property. A court can throw out a divorce decree based on financial deception, putting you back in court years after you thought everything was final.

DO ask your attorney if anything doesn't make sense. Your attorney works for you, and should help you understand every part of the divorce process.

THE DON'Ts

DON'T make big plans to take a job in another state or move out of the country until your divorce is final. Your new life could interfere with getting your divorce finalized.

DON'T violate any temporary custody or visitation arrangements. It could make it tougher for you to get the custody or visitation rights you prefer.

DON'T "give away" property to friends or relatives and arrange to get it back later. Hiding property can mean your spouse can take you back to court to settle those assets.

DON'T go it alone. Divorce is complicated, and an attorney can make sure that your interests are protected.

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