Rochester NY Family Law Attorney Blog

Manhattan called New York's divorce capital

2012-05-18T19:36:03Z

According to a justice with the New York Supreme Court, Manhattan has become a "mecca for matrimonial actions," as thousands of non-residents file for divorce in the borough in hopes of finalizing their cases more quickly. The justice estimated that between 75 and 80 percent of Manhattan divorce filings are by couples who live outside the borough, a problem that he claims overburdens the county's family courts.

Despite containing only 8 percent of New York state's population, New York County saw 23 percent of the state's total divorce cases in 2010. In response, the justice issued a ruling in which he called for a solution to what he sees as an "unfettered" growth of divorce filings in Manhattan and the rest of New York County.

]]> The justice claims that couples often seek divorce in Manhattan due to its reputation for processing divorces more quickly than other areas, especially uncontested divorces. He also suggested that some individuals are hoping to improve their chances of an advantageous outcome by filing for divorce far away from a spouse's home. He added that some Manhattan-based divorce lawyers may prefer to submit filings in their home court, even if their clients live in a different area of New York.

While the justice did not demand a specific response to the issue, he proposed several possible solutions. For instance, he suggested that laws could be passed that would require couples to file for divorce in a county where at least one spouse is located. Alternatively, he proposed granting New York judges the discretion to instantly dismiss divorce filings if they are determined to have been submitted "in the wrong venue."

The justice says he is concerned that the influx of non-local divorces creates a significantly higher workload for judges and court staffs. Divorcing couples have other options if they want to avoid a long court battle. Using a mediator to reach a settlement or agreeing to a no-fault divorce can speed up the process.

Source: Thomson Reuters News and Insight, "Manhattan is state's divorce 'mecca,' judge says," Jessica Dye, May 3, 2012

Divorce auctions becoming more popular

2012-05-10T14:13:14Z

Couples pursuing a divorce are faced with a number of difficult decisions, but the division of marital property can be a particularly hard process for those who cannot agree on how their assets should be divided. As such, an increasing number of divorcees are selling off their joint property at auction. Because a divorcing couple splits the proceeds from such sales evenly, proponents say divorce auctions provide a relatively conflict-free way to resolve what can be one of the most contentious parts of a divorce.

In 2011, one New York couple held a divorce auction to liquidate their entire art collection. Their Bob Dylan-signed guitar and set of 10 Andy Warhol postcards each sold for $2,000. Other divorce auctions have seen works by other famous artists sell for large amounts. While examples like this are rare, divorcing couples across the United States have looked to cases like this for inspiration.

]]> The owner of one auction company said that divorce auctions represent a source of quick cash for divorcees, as well as a means for them to forget any painful memories they might associate with their marital property. Also, in cases where squabbling parties cannot reach an agreement, judges may order an auction as a quick solution.

The owner said that divorce auctions have experienced a recent surge in prominence. He said that popular auction reality programs like "Storage Wars" are partly responsible for this increase. While the owner has held divorce auctions for more than 30 years, he explained that this is the first time he has advertised them as such.

These auctions are mostly fueled by couples who can't agree on how to divide assets. One way to solve that problem is to negotiate a prenuptial agreement before getting married. Meeting with a mediator at the time of divorce is also an option.

Source: TimesCall.com, "Some divorcing couples auction everything off and divide the cash," Aimee Heckel, April 28, 2012

Russian billionaire to lose several properties in divorce

2012-05-02T13:26:13Z

A Russian billionaire has vacated his New York penthouse, the most expensive residential real estate purchase in New York at the time, after his wife made a claim on the property in the latest development in the couple's divorce. His attorney said the apartment is empty, and will likely remain that way until the billionaire's daughter moves in to complete her degree at Harvard University Extension School.

The man's soon-to-be ex-wife also filed a claim for another of the couple's properties, a seafront home which they purchased from Donald Trump. His attorney argued that once that claim was filed, the estate's trustees refused to develop the property until the divorce is complete. She called the house's condition "unlivable," explaining that the home has remained empty except for during a visit by his daughter.

]]> The man's attorney is accusing the wife of filing her claim to purposefully prevent work on the home. "De facto, the wife blocked this property and prevented her children from using it," alleged the attorney.

Conversely, his wife's legal aide contends the husband created trusts for the properties with the express purpose of avoiding a court order handed down in Swiss court aimed at freezing the billionaire's assets. His attorney defended the move as "succession planning."

Since announcing their intentions to separate, the couple's divorce has stretched on for months. In 2011, the wife turned down a settlement offer worth approximately $800 million after more than four months of negotiations. She reportedly wanted more of the money to be awarded to her rather than the couple's children.

This blog has said this once in a previous article about this couple, but it bears repeating. A prenuptial agreement signed before the marriage could have prevented much of this legal drama that is currently unfolding.

Source: New York Times, "Divorce, Oligarch Style," Alexei Barrinuevo, April 5, 2012

Jennifer Lopez, Marc Anthony to divorce

2012-04-24T14:16:04Z

Musician Marc Anthony has filed for divorce from singer and actress Jennifer Lopez, according to reports from the New York Daily News. Although the couple publicly announced their intent to separate in last year, the decision was not official until recently. Anthony submitted the divorce filing under his legal surname.

Anthony's filing cites "irreconcilable differences" as the reason for the couple's divorce, making it difficult to determine precisely why Anthony and Lopez decided to split from each other. While rumors of professional jealousy, infidelity and a general conflict of personalities have been suggested as possible factors in the divorce, these rumors remain just that.

]]> One well-known celebrity gossip website claimed the star couple's decision to divorce might not have been mutual. The website claims Anthony contacted Lopez several weeks before filing for divorce to inform her of his interest in salvaging the marriage. The 43-year-old Lopez reportedly declined the offer, telling her soon-to-be ex-husband that she is happy in her relationship with her current boyfriend.

Meanwhile, Anthony began a relationship with a Venezuelan model soon after his separation from Lopez.

Lopez and Anthony were married for seven years before divorcing, parenting a pair of twins during that time. In Anthony's divorce filing, the 43-year-old singer requested joint physical and legal custody of the children, who are currently 4 years of age. It is unknown if the couple negotiated a prenuptial agreement before getting married, but the issue of child custody could become quite contentious if there was no agreement in place. It will probably be better for both if they don't leak too many details to the press.

Source: New York Daily News, "Marc Anthony wanted to reconcile with Jennifer Lopez, but she chose Casper Smart: report," Joyce Chen, April 15, 2012

Madoff victim denied divorce settlement reversal

2012-04-17T20:17:50Z

A New York attorney who lost millions of dollars in the Bernie Madoff Ponzi scheme will not have his two-year-old divorce settlement reconsidered, after the request was denied by a panel of New York Court of Appeals judges. The man was divorced from his wife two years before knowledge of the scheme became public. The man argued that this unfairly skewed the terms of the divorce settlement.

The plaintiff hoped to win back $2.7 million awarded to his wife in the original settlement, half of the apparent value of a fund in which the couple had invested. In reality, that money was "nonexistent," as the couple had unknowingly fallen prey to Madoff's now-infamous scam. The plaintiff asserted that the settlement was created to enforce "an equitable distribution of property," but failed to by taking into account assets that did not exist.

]]> The panel of judges presiding over the case said that the man could have withdrawn money from the fund at any time before Madoff's scheme started to fall apart in 2008. One judge compared the matter to a hypothetical instance in which the couple's fund increased in value. She asked: "Should wife be able to claim entitlement to a portion of the enhanced value. The answer is no."

The judge did acknowledge that while divorce settlements "are not to be easily set aside," they can be modified because of a "mutual mistake by the parties." However, she explained that such mistakes must be especially significant. She wrote that court-ordered relief in such cases is only granted in "exceptional situations." She also added that the man admitted to drawing funds from the accounts to make distributive payments to his wife before it was emptied, meaning that the settlement was valid at the time of its signing.

The ruling reversed the decision of a lower New York Court, which reinstated the man's request to have the couple's assets determined accurately and divided in a modified settlement. A prenuptial agreement could have helped to avoid many of the issues the man is now facing.

Source: Associated Press, "NY's top court refuses to undo divorce settlement," April 3, 2012

Dennis Quaid faces third divorce

2012-04-12T14:18:57Z

The wife of Dennis Quaid has filed for divorce from the actor after seven years of marriage. If the split is finalized, it would mark Quaid's third divorce. According to court documents, Quaid's wife filed for divorce from her husband because the couple's marriage had "become insupportable" due to "discord or conflict of personalities." The couple has been married since 2004.

Until judges determine an appropriate child custody arrangement, both parties have been awarded temporary custody over their children. The children, a pair of four-year-old twins, made the headlines in 2007 after the Quaids sued a hospital and drug manufacturer in connection to an accidental overdose of medicine the children received at the facility.

]]> Quaid has reportedly requested that his soon-to-be ex-wife receive nothing in the couple's impending divorce settlement. His wife has made no specific demands, but did ask that the couple's marital property and assets be divided equitably. At last report, she was awarded the couple's primary home and one of the couple's vehicles while Quaid was granted the family's condominium and an SUV. The couple will jointly possess their third vehicle, a Range Rover. She has also requested spousal support from Quaid.

Just one day before the divorce was announced, Quaid made the news after he allegedly stole a professional tennis player's date at a party. It is unclear whether these accusations are related to the recent divorce announcement at this time.

While there stands to be a lot of money at stake in the divorce settlement, the couple could have avoided a protracted battle by negotiating a prenuptial agreement before they were married. The agreements are especially valuable for high net-worth couples who will have many assets to argue about.

Source: New York Daily News, "Dennis Quaid's third wife files for divorce," Cristina Everett, March 9, 2012

Nas discusses divorce from Kelis

2012-04-05T13:21:59Z

New York rapper Nas recently spoke to reporters regarding his 2009 divorce from singer Kelis, describing the drawn-out ordeal. Nas had previously remained silent on his divorce, which saw him make tabloid headlines due to the case's bitter nature. While some media outlets portrayed Nas as an unfaithful and cruel husband who hid money from his wife, others accused Kelis of marrying the rapper for his money.

When Kelis filed for divorce from Nas after four years of marriage, she alleged that her husband left her in the midst of her pregnancy. She initially requested approximately $45,000 in monthly alimony and child support payments. A judge agreed to a temporary ruling for this amount, but a court later officially reduced the singer's monthly spousal and child support award to $25,000 in 2011. Despite the reduction, Nas says the ruling still hurt him financially. The entertainer was also ordered to pay around $45,000 in legal fees for his former wife.

]]> A key issue at the center of the couple's divorce was whether Nas provided funds for Kelis' prenatal care. An attorney for Nas argued that the rapper had given Kelis approximately $30,000 to be used for costs related to the birth of her child. He also contended that Nas continued paying for Kelis' health insurance.

One reason why the divorce may still be affecting Nas is the rapper's ongoing tax troubles. According to some sources, Nas owes the Internal Revenue Service more than $6 million in overdue taxes. While Nas has declined to comment on the claims, the IRS is reportedly preparing to garnish revenue he earns through music publishing.

Source: MTV News, "Nas Says Ugly Divorce From Kelis Proves 'Love is a Beast,'" Rebecca Thomas, March 29, 2012

Billionaire sued by wife over penthouse in midst of divorce

2012-03-29T19:53:49Z

A Russian billionaire who made headlines for purchasing the most expensive residential property in New York City has been sued by his estranged wife, who accuses her husband of buying the $88 million penthouse apartment "with the real purpose of secreting assets." The couple has been locked in a legal battle after the wife filed for divorce in 2008. The woman alleges that the court overseeing the trial ordered a freeze on some of the billionaire's assets, which should have made it impossible to buy the penthouse.

The lawsuit claims that the billionaire transferred assets he acquired during the course of the couple's marriage and thus violated an order issued by the Swiss court with which he filed for divorce. The man's wife says he has wrongfully used marital assets to purchase property for his personal use. The lawsuit claims that the billionaire created "a sham entity for the sole purpose and with the specific intent of hiding and diverting his personal interest in the property."

]]> Located near Central Park, the multi-million dollar home formerly belonged to the wealthy CEO of Citibank. The home cost 66 percent more than the previous record-holder, according to The Wall Street Journal. This resulted in approximately $2.5 million in combined tax revenue for the city and state.

The billionaire, who struck his fortune in the Russian fertilizer industry, reportedly plans to contest the lawsuit. He has filed a request for a "constructive trust" involving the penthouse, which he says would prevent the property from being "alienated, conveyed, encumbered, transferred or wasted" before the couple's divorce is finalized.

With so much money at stake, the couple would have been wise to pursue a prenuptial agreement before getting married. It can prevent incidents like this from taking place down the road.

Source: ABC News, "Divorcing Wife Sues Billionaire Over $88M NY Penthouse," Lyneka Little, March 16, 2012

Divorce for baby boomers

2012-03-20T14:26:59Z

According to a study conducted by Bowling Green State University, divorce rates for Americans at or older than age 50 doubled between 1990 and 2009. In fact, divorces among couples older than 50 amounted to about 25 percent of 2009's total divorces. Experts say this data is proof of a growing trend of divorce among the baby boomer generation in New York and elsewhere, often referred to as "gray divorce."

One New York attorney says the spike in gray divorce is due in part to couples marrying at a later age, adding that online dating services, social media websites and an increasing prominence of prenuptial agreements have also likely increased divorce rates for baby boomers.

]]> Older couples undergoing divorce face many of the same challenges as younger divorcees, but must also deal with issues that are largely unique to their generation. Child custody and the division of money are the two most important factors in a typical divorce. Because the children of many baby boomers are adults, custody tends to be less of a concern in many gray divorces, but older couples may have more at stake financially.

"You've often got real estate, a 401(k), an IRA, perhaps a business started during the marriage, and more," explained one family law attorney. She added, "Sorting it out and ensuring that both parties are set up equally for retirement can be difficult."

Couples that have been married for many years are often forced to part with large sums of money, leading some experts to advise older couples seeking divorce to agree on how their assets should be split as soon as possible. One divorce mediator and accountant explained that this can save a divorcing couple a good deal of money and time that would otherwise be spent in the courtroom. Another option could be negotiating a prenuptial agreement before even getting married.

Source: Fox Business, "The Boomer's Guide to Divorce," Kathryn Tuggle, March 7, 2012

Divorce affects consumption, says report

2012-03-13T20:41:15Z

Major moments in an individual's life may sometimes be identified by tracking his or her spending habits, according to a Target marketing plan recently revealed by the New York Times. The initiative hopes to determine when customers in New York and elsewhere have recently had children, gotten married or gone through a divorce. This is meant to provide Target with an edge in its ability to focus its marketing efforts for individual customers, advertising products that each customer's data suggests that he or she might need.

According to the report, the data from Target does indeed show a number of apparent correlations. For instance, Target's data suggests that recently divorced individuals are especially likely to purchase different types of beer. While such data is valuable to advertisers, some have questioned how the collection and use of such data could impact divorce trials and whether targeting advertisements to divorcees is ethically sound. Critics of the practice say it fails to be respectful to the sensitive and private nature of divorce.

]]> Such data could have more direct legal implications as well, especially in a divorce. For instance, someone could subpoena a retailer for a former spouse's spending patterns, which the retailer would be obliged to provide if a judge orders it.

One spouse's consumption habits could be used to determine division of property, child support, alimony or child custody. For instance, if one parent's data shows that he or she purchases large amounts of alcohol every week, a judge might award custody to the other parent. Likewise, a judge might rule that one party no longer requires spousal support if spending data shows him or her to spend thousands of dollars on clothes every week.

Should this data be able to be used in a divorce court? Or should governments enact safeguards to protect consumers?

Source: Huffington Post, "Divorce Meets Big Data," Richard Komaiko, March 2, 2012

Google exec prepares for divorce

2012-03-06T21:23:52Z

According to a number of a prominent media sources, Google Chairman Eric Schmidt will sell an estimated 2.4 million shares in the search engine giant to prepare for an ensuing divorce with his wife, Wendy. Schmidt has been dating another woman for a year and a half, but has not yet split from his wife. The couple had been married for 13 years. Sources close to Schmidt say he has been spending an increasing amount of time in New York, away from his wife. Schmidt also recently purchased an expensive show-jumping horse for his girlfriend.

Some sources estimate that Schmidt's divorce could cost him approximately $1.5 billion in personal assets. This would make the Google executive's divorce the second-most expensive in history. If the Schmidts never signed a prenuptial agreement dictating how assets should be divided in the divorce, the split could result in the largest divorce settlement of all time, because the couple's home state would likely divide all marital property down the middle.

]]> One source claims that Schmidt is selling shares in Google for a many reasons, just one of which is his divorce. The source said the main reason is business reasons and to diversify his investments. The source continued to explain that the couple has been purposefully avoiding the public eye and have been trying to reach a settlement privately, which is advantageous for many high-asset couples. While keeping details out of the public eye may increase speculation, it allows both sides to keep working amicably.

For many high-asset couples, a prenuptial agreement is likely the way to go, if one spouse who has many assets does not want to give up half. A prenuptial agreement also allows for determinations of child custody and support to be made outside of the courtroom.

Source: New York Post, "Divorce prep, Google-style," Feb. 22, 2012

New York to host divorce expo

2012-02-28T17:41:05Z

Two Manhattan women have announced plans for a divorce expo in New York City, the first of its kind in the region. The mother and daughter pair says that while brides-to-be can attend bridal shows to prepare themselves for marriage, no such resources exist to assist individuals facing divorce.

The daughter, who is herself divorced, said that many people aren't aware of what all needs to be done in a divorce. She said the expo was based off a "wishlist" of everything she needed for a divorce. She plans to use her expertise as a family and divorce mediator in conjunction with her mother's experience as a therapist to make the expo a valuable source of support for individuals transitioning to divorced life.

]]> The expo, called "Start Over Smart," will also feature lawyers, plastic surgeons and fashion consultants, all of whom will help attendees with the struggles associated with divorce. Additionally, the expo will feature lessons aimed at giving divorcees a crash course in post-divorce finances and other similar areas.

According to the Centers for Disease Control and Prevention, New York's divorce rate of 2.8 per 1,000 individuals is below the national average of 3.6 per 1,000 individuals. But that does not mean that divorces don't happen, and people can be caught off guard with all the details that go into them.

Spouses who are married for a long time often lose track of all the assets and debts they have compiled together, and dividing those in a fair way can be a tough proposition. It is good to have other people to rely on during a divorce, and this expo could hopefully set the standard.

Source: Metro, "Divorce expo for soon-to-be singles," Emily Anne Epstein, Feb. 13, 2012

Russell Brand, Katy Perry finalize divorce

2012-02-21T22:03:37Z

Although residents in New York and elsewhere learned of pop singer Katy Perry and comedian Russell Brand's divorce in early 2012, the separation is now official, following the couple agreeing to a divorce settlement. While Perry and Brand have largely declined to comment on the split, a source who claims to be close to the couple told reporters that the divorce is amicable.

The couple jointly owns four homes, including one in New York, estimated to be worth a combined $15 million. While word has not yet surfaced on how the properties will be divided, the recently filed documents explain that the couple has reached agreement on all issues, including property division.

]]> The couple never signed a prenuptial agreement prior to their marriage, meaning that Brand may have been legally entitled to some of his wife's earnings because the couple was married in a community property state. Unlike New York, such states consider any most assets acquired during a marriage to be subject to equal division upon divorce. However, Brand reportedly turned down a share in Perry's $44 million fortune. Perry will legally revert to her maiden name, but reportedly had no other requests.

Perry and Brand further confirmed that they have settled their divorce outside of court by indicating in their legal documents that the separation is uncontested, which effectively waives the couple's right to a trial.

Sometimes divorcing couples find it advantageous to keep a divorce out of a court room because they do not want any dirty laundry being aired in public or they want to keep costs down. There are options such as mediation or a no-fault divorce which allow couples to amicably reach an agreement and avoid litigation.

Source: New York Daily News, "Katy Perry, Russell Brand reach amicable divorce settlement: Comedian walks away from $20M payout," Joyce Chen, Feb. 9, 2012

Get your financial affairs in order before your divorce

2012-02-18T15:36:47Z

When someone in New York decides to get a divorce, the feeling can be overwhelming. There's a lot that needs to be done in terms of handling the business end of things, aside from the personal and emotional needs that require attention.

This can be particularly true for the member of the couple that is less involved with the finances in the marriage. Some people might leave most everything to the spouse to sort out and don't think much on a day-to-day basis about money. However, when it comes to getting a divorce, knowledge is power, and financial knowledge is a must in order to ensure that a person gets their fair share of what they're entitled to.

]]> Here are some baseline tips about what a spouse can do in order to prepare for a divorce. Some of these things can be done even before the process officially starts, but clearly discretion is warranted if it would cause problems.

Gather all your financial information: statements for bank accounts, insurance policies, brokerage accounts and the like. Keep hard copies in a safe place.

Do some research about how you want your divorce to proceed. Talk with experts to get some general information.

At this point, make sure you're protected. Open bank accounts in just your name and work with an attorney to make sure you're doing everything the right way.

Get credit cards in just your name and stop using ones tied to a joint account. Notify the credit card company of your situation so you won't be liable for charges you didn't make. Close the joint accounts if possible.

Create a budget and track your income and expenses. You'll have to budget to make sure you get everything covered.

Source: Glenview Patch, "Coping With Divorce: Financial Tips for Women," Feb. 15, 2012

New York divorces taking longer to complete

2012-02-13T20:36:30Z

According to officials and attorneys, the time it takes to completely resolve a divorce in New York is on the rise. While finalizing a divorce took three to four months in previous years, it can now take more than nine months to obtain a signed judgment. This does not take into account the time needed for divorcing parties to reach a settlement, typically anywhere from several months to two years.

Divorce lawyers say the delays are mainly being caused by layoffs and budget cuts. According to information from the New York City Bar Association, the state judiciary lost approximately 1,300 employees in 2011 to layoffs and early retirement. This amounted to around 8 percent of the judiciary's total workforce. Additionally, the judiciary saw approximately $170 million cut from its budget. Lawyers in the state say the still-suffering economy has also contributed to the problem.

]]> In one court, the cutbacks have left all contested divorce cases, many of which have numerous pages of records, to be reviewed by a single clerk. An attorney in the court system says the process of review cases was time-consuming even before the cuts.

The delays represent a serious problem for many New York residents who cannot get on with their lives while they wait for the finalization of the divorces. Divorce settlements cannot be enforced until the final divorce judgment is signed. The delays have also prevented a number of people from pursuing new marriages. For New Yorkers who are trying to move on more quickly, there are options, such as mediation, which could help speed the process up, but couples need to be willing to work amicably toward a settlement.

Source: SILive.com, "Getting a divorce? Better not be in a hurry," Frank Donnelly, Jan. 22, 2012