Going through a divorce can be one of the most stressful and emotionally draining experiences of your life. Your credit score is probably the last thing on your mind, but you do need to make sure you’re working towards a healthy financial future in the midst of the separation from your spouse.

Some people are left with a very poor credit score after divorce because they find their ex didn’t pay bills on time and ruined the credit of both parties. Others simply don’t have any financial accounts under their own name. Whatever your situation, there are some effective ways to build or re-establish credit after divorce.
Here are five ideas to help you get started.

1. Pull your credit reports

First, find out where you stand. The only way to know the status of any joint credit accounts, or accounts that were formerly maintained in both of your names, is to check your most recent credit reports from Equifax, Experian and TransUnion. You can get them once a year at no cost through www.annualcreditreport.com.
Scour your credit files for any notations of late payments or collection accounts. Those are major red flags that will jeopardize your chances of qualifying for a new credit card or obtaining credit in your own name.
As important as it is to be aware of the information in your credit files — especially after divorce — a surprising number of adults in the U.S. don’t take the time to review their credit history.
A survey from the National Foundation for Credit Counseling found that roughly seven out of 10 Americans don’t check their credit reports each year, as they’re entitled to do free of charge under federal law. Overlooking this right is a big mistake. But it’s one that people don’t often realize until they have relationship troubles.
“The fact of the matter is that people bring financial baggage into a relationship, and often don’t deal with it until problems arise,” says NFCC spokeswoman Gail Cunningham. “Perhaps that baggage comes in the form of a poor credit rating, significant debt, or no experience managing money.”

2. Fix mistakes on your credit reports

After you receive your credit reports, make sure all the information about you is accurate, including your credit history, employment history and other personal information. Creditors and banks can make mistakes when reporting data to the credit bureaus, and only you can step in and request corrections. Each of the three credit bureaus provides an online dispute form.
Just realize that even if your divorce agreement says that your ex is supposed to pay certain bills, if he or she doesn’t, you’re still legally liable for those debts.

Do you have debt issues in your divorce in Denver? Contact Gary Nicholas, Divorce Attorney Denver, and Divorce Debt Lawyer Denver at 303-322-0038.

3. Don’t keep joint credit obligations with your ex

Even if you have an ongoing financial relationship with a former spouse — perhaps he’s paying child support or she’s paying alimony — it’s a good idea to break ties from a credit standpoint.

It’s way too risky to keep things like joint credit cards or a mortgage in both parties’ names, says Lisa Hanson, Senior Financial Professional at Firstrust Financial Resources in Philadelphia. Hanson specializes in working with divorcees.
“It’s best to split the accounts because managing credit after you divorce can be very tricky, especially nowadays with all the credit restrictions and how difficult it is to get things like new mortgages,” says Hanson.

Case in point: one new rule affecting those applying for a credit card is that banks and credit card issuers must only consider the applicant’s individual income, not his or her overall household income. This means that if you obtained credit cards in the past thanks in part to your spouse’s income, you may now have a tougher time qualifying for credit on your own.

4. Open a secured credit card if necessary

If your income is too low, or if your credit has taken a serious nosedive after a breakup, one of the best ways to rebuild it is to get secured credit card. Secured credit cards can even help you if you have a “thin” credit file or no credit in the past.
However, secured cards do come at a price. You need to pay for the amount of your credit limit by putting money into an account. For instance, if you put up $500, your credit limit will be $500. You will also need to prove that you are responsible with managing your credit by maintaining a low balance and paying your bills on time. This process will take some time, but is a great way to kickstart your credit-building activities.

5. Pay all credit obligations on time

Finally, one of the best strategies for rebuilding credit — even if yours has suffered from divorce — is to simply pay all outstanding obligations in a timely fashion. According to FICO, the company that created the FICO credit score, 35 percent of your FICO score is based on your payment track record.
So if you do nothing else, do make a point to consistently pay your bills on time. By doing so, you should see your credit score rebound and recover over time, even if divorce initially takes a financial toll on you.

Read more: http://www.foxbusiness.com/personal-finance/2012/01/24/square-one-how-to-build-credit-after-divorce/#ixzz1kPzirAXS

By the time Cherie Kerr and her ex-husband finally went their separate ways, her ex had run up $89,000 in debt during the divorce proceedings alone. She knew that if she didn’t take action fast, that debt would scar her financial life forever.

In a way, Kerr knew the marriage was over before it began. Her husband, a home builder, almost immediately asked to borrow $100,000 on Kerr’s house to finance his business “and I stupidly agreed,” says Kerr, who owns a publicity firm in Santa Ana, Calif.

He said he’d pay her back in six months, but after five years, when the marriage was crumbling — in large part because Kerr says she didn’t trust her husband — he still hadn’t paid her back. He finally managed to do so a few months before the divorce papers were to be signed, and Kerr breathed a huge sigh of relief. Yet, a few weeks later, Kerr learned that her husband had taken out a $150,000 line of credit in both of names and had already spent $89,000 of it.”What are you mad about?” her husband asked when confronted with this new development. “There’s plenty of money left for you, too.”

“I’m not living on borrowed money,” protested Kerr, who knew she’d be responsible for paying back that debt. So she spoke with her attorney, who then spoke with her soon-to-be ex-husband.

Luckily for Kerr, her husband managed to pay back the money from the line of credit before they hashed everything out in court.

Kerr barely escaped a financial disaster. Before a divorce is final, the debt your partner incurs during that period is still yours.

“A spouse is and can be held liable in a divorce for the other spouse’s debts — and it doesn’t necessarily matter whose name the debt is in,” says Richard P. Terbrusch, a matrimonial attorney (nobody seems to call themselves “divorce attorneys” any more) in Danbury, Conn.

So if you’ve just ended a marriage or are considering calling it quits and wondering what’s going to happen to that debt your spouse racked up, it might be helpful to understand a few things.

There Are Two Types of Debt

When it comes to divorce and debt, there are two forms of debt that courts primarily tend to look at: living expenses and community property.

Living expenses are, as you’d imagine, the money you pay for the mortgage or rent, groceries, utilities, your cable or cell phone, and other, similar expenses. Community property is pretty much everything else.

So if you and your spouse owe, say, $3,000 on a credit card that you’ve been using to pay for groceries, gas and cable, that debt is considered living expense debt. But if the debt you’ve racked up on your credit card is for gym equipment, a new TV, a freezer-on-top refrigerator — well, that’s community property debt.

Determining the debt you owe begins to get confusing if you have both living expenses and community property expenses on the same credit card. And it gets more complicated if one person had the credit card before the marriage and racked up say, $5,000 in debt on it prior to the marriage, and then during the marriage, both parties added even more debt to it.

At that point, “what debts are separate and what aren’t, and what debts you can justifiably say aren’t yours is almost impossible,” says Bob Nachshin, a matrimonial attorney in Century City, Calif., whose clients have included Will Smith, Rod Stewart, John Ritter and Barry Bonds.

Where You Live Determines Whether You Share That Debt

In community property states, the courts see the debt that’s accrued over the course of the marriage as the responsibility of both parties. So if you and your spouse bought a boat for $25,000, and you still owe $20,000 on it, then both parties split that $20,000 debt down the middle.

But what if the husband secretly bought that boat with a credit card that was in his name only and the wife, whose name wasn’t on the card, had no clue about its existence? In a community property state, she still owes $10,000.

Likewise, says Terbrusch, “if the wife runs up a credit card in her name alone during the marriage, a portion or all of the debt could be assigned to the husband during the divorce.”

Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

If you’re living in another state, then how you split your debt is likely done through what’s called equitable distribution, in which attorneys and a judge determine who owes what. In other words, if your spouse racked up a lot of credit card debt in secret, you’re more likely to come out of your marriage not owing any of that money. But while that makes it sound like community property states belong in the Stone Age, that’s not necessarily so.

After all, by splitting everything down the middle, courts are trying to promote the idea that a marriage is an equal partnership, and that if a mom quits her job to stay home and raise the kids while the dad brings home the paychecks, she’s entitled to half the assets because she was contributing half her time and energy into keeping the family going. In this case, equitable distribution works to the benefit of both partners.

And while it’s different in every state, courts are generally going to take many factors into consideration, from how long the marriage lasted and each person’s income during the union to whether either spouse had been wed before, which is relevant if your soon-to-be-ex brought debt to the marriage that was a result of his or her former spouse’s out-of-control spending habits.

Do you have debt issues in your divorce in Denver? Contact Gary Nicholas, Divorce Attorney Denver, and Divorce Debt Lawyer Denver at 303-322-0038.

Lesson to Be Learned

Kerr’s experience left her wiser. Her advice for couples in bad marriages: “The minute you split up, or even before you split up, make sure everything is paid for. I know that if I ever got married again, I’d want everything in my name and maybe one joint account, which I’d make sure was buttoned up so we couldn’t get into too much trouble. I never want to be that vulnerable again.”

If you’re saddled with an ex-spouse’s debt that’s ruining your life, and you don’t feel you have any other recourse, there’s always the option of bankruptcy. It may be an unappealing option, but since bankruptcy discharges most of what you owe, it does make it possible to divorce a spouse’s debt.

And most experts will tell you that if you’re going to have to declare bankruptcy, it’s better to do it jointly, before you end the marriage — that’s simply because if you’re trying to make a clean break, its hard to do so if you’re burdened by a large amount of debt that you accumulated during your marriage. While we’re not recommending bankruptcy as your first option, if it’s clear that it’s going to be in the cards, you’d be wise to make it part of the divorce experience, rather than have to deal with it several months later.

And keep in mind that if your partner declares bankruptcy and you don’t, you’ll be on the hook for all the debt you two accumulated during the marriage. Credit card companies don’t care that your ex was a jerk, and that ethically you shouldn’t have to pay the $40,000 he or she spent during the years you were married. If your name was on that credit card, the company can come after you for those funds. If your departing spouse declares bankruptcy, that alone may force your hand to declare it as well.

But not all news is bad news.

“Courts are fair,” says Naschin, the attorney who has handled a lot of celebrity divorces. Overall, he says, when it comes to deciding whose debt is whose, “most courts aren’t jaded and want to do the right thing. And most courts don’t want to be reversed in an appeal.”

Geoff Williams is a frequent contributor to WalletPop. He is also the co-author of the book Living Well with Bad Credit.

See full article from DailyFinance: http://srph.it/oeVGkD

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. Denver Divorce Lawyer handling matters such as Divorce Debt Settlement and Divorce Property Division in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

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We’re all familiar with couples who decide to live separately for awhile before actually getting divorced. And typically, these couples use this “trial separation” to decide whether or not they want to pursue formal legal action.

These days, however, more and more couples are deciding to remain separated, rather than divorce –even after they know their marriages are fractured beyond repair.

Why would a woman make this choice? What reasons could there possibly be to live apart from a spouse, and yet remain married?

In many cases, it boils down to money. You see, sometimes opting for legal separation rather than divorce is a good financial decision.

But, before I discuss the possible financial benefits of a legal separation, let me clarify a few basic points.

What is a legal separation agreement?

As a divorce financial strategist, I often recommend that if you are going to live apart from your husband beyond a reasonable trial period, you obtain a legal separation agreement –which is a legally binding agreement between you and your husband to resolve issues such as the division of assets and debt, alimony/spousal support, child support and visitation.

As Marilyn Chinitz, Partner at Blank Rome, explains, a legal separation agreement can help you mitigate some financial risk.

“Although separating certainly can have benefits, living apart from your spouse without a formal written separation agreement can put you at risk. If you separate, you still remain liable for your spouse’s debts and legal issues in which they are involved notwithstanding the fact that you are not living together,” she says. “A written separation agreement would appropriately address those issues providing for indemnification for example, or limiting your liability for debts incurred by your spouse during the separation. If your spouse fails to pay certain marital debt, because you are still married although not living together, the creditor can seek remedies against you for the joint debts. Informal separations without a document detailing the terms of your separation, that is , how you will share the marital assets, what do you do about joint credit cards, who pays maintenance and how you will distribute assets acquired during the separation, can cause difficulties down the road leading to litigation.”

What’s more, some people remain separated for months or even years, so it’s essential that you protect yourself upfront and have all the necessary issues settled and agreed to in writing. In order to move forward, you need to know who gets which assets, who is responsible for debts, how much alimony is to be paid and for how long, etc. The legal separation agreement helps settle these issues, and if you ultimately decide to divorce, it can easily become your divorce settlement agreement.

“Indeed, as time goes on, communication and cooperation with your estranged spouse may no longer exist. Your agreement should give you ready access to liquid assets- you may need these assets to pay bills,” Marilyn explains. “Most importantly, if you separate without an agreement, you may not receive your share of the marital assets acquired which may be depleted or lost because you were unaware of how your estranged spouse was managing the funds or marital business.”

Are you trying to decide between Divorce or Legal Separation in Denver? Contact Gary Nicholas, Divorce Attorney Denver, and Legal Separation Lawyer Denver at 303-322-0038.

Does my state recognize legal separation agreements?

Divorce laws vary from state to state, and so it’s no surprise that regulations governing legal separation vary from state to state, too. In general terms, each state falls into one of three broad categories:

• Some states require a legal separation before you can file for a divorce.
• Other states recognize a legal separation, but do not require it.
• A few states neither require nor recognize legal separation.

Obviously, it’s important to get the advice of a divorce attorney in your state to determine if a legal separation agreement is a viable option for you.

When might a legal separation be a better financial choice than divorce?

Legal separation may be a good financial option for you if you need to:

• Meet the 10-year requirement for social security benefits. If a marriage has lasted at least 10 years, a divorced spouse who has not remarried is entitled at age 62 (with various other requirements) to social security benefits equal to the greater of: 1) those based on her (assuming she is the lesser earning person) own work record or 2) 50 percent of what her ex-husband is entitled to based upon his work record. Because of this law, many people who have been married for seven or eight years will separate until they cross the 10-year threshold – then, they get divorced. (Please note: The amount of your social security benefits will be reduced if you opt to take them prior to your normal retirement date. So, although you may be eligible to start receiving benefits at age 62, depending on your circumstances, you may want to delay doing so until your normal retirement age or beyond. You can actually receive more for each year you delay post retirement age up until age 70.)
• Continue receiving health insurance benefits under your husband’s plan. Naturally, once a couple is divorced, most employer health plans will no longer cover the employee’s ex-spouse. Separating, but not divorcing, may solve that problem –although you’ll have to carefully check the fine print in your husband’s employment benefit package to know for sure. Some employers view a legal separation the same as a divorce and will deny benefits accordingly.
• Take advantage of potential tax benefits from filing jointly. Many couples assume they will save money by filing joint tax returns, so they separate, but do not divorce, in order to preserve that right. In addition, there also may be estate-planning implications, such as preserving the marital deduction. However, please don’t let assumptions like these lead you into trouble. Federal tax law in this area is quite complex, and then it becomes even more so because the IRS usually follows state law for determining marital status. In other words, whether or not you are considered married or unmarried will depend upon complicated laws at both the state and federal level. For example, according to tax law, an individual legally separated from his/her spouse under a decree of divorce or a decree of separate maintenance shall not be considered as married. But, not every state allows for a decree of separate maintenance; if you live in one of those states, you are still considered married until your divorce is final. You need to ask your attorney and/or tax advisor whether your current legal status meets the definition of a decree of separate maintenance.
• Retain certain military benefits.
• Pool certain resources. For some couples, maintaining two separate households is simply too expensive. Some decide to divide their home into “his” and “her” areas, so they can maintain a certain lifestyle (albeit one that’s now separate). However, a decision to pool certain resources is not necessarily straightforward. In the case of alimony, for example, the IRS maintains that: “Spouses cannot be members of the same household. Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. A home you formerly shared is considered one household, even if you physically separate yourselves in the home. You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment.” In other words, alimony would not be tax deductible by the payor, if they are living in the same household.

Are there other reasons to remain separated rather than divorce?

Yes, of course. Not everyone opts for a legal separation based solely on financial reasons. In some cases, other considerations come into play. For example, some couples remain separated for religious reasons. One spouse, or both, may come from a religious background that frowns upon divorce. Separating, but not divorcing, may be the “ideal” solution for them. Other couples may find that they still love each other, but just can’t live together. Separation may be the optimal choice for them, too.

As you can see, the decision to legally separate rather than divorce can be quite complex. Weigh your options carefully and consult with qualified divorce professionals so you can make smart choices that will help keep you financially secure both short- and long-term. Or, put another way:

“If it’s Splitsville, do it wisely and make certain you safeguard your assets and property protecting yourself for the future,” Marilyn concludes.

—————————————————————————————–

Jeffrey A. Landers, CDFA™ is a Divorce Financial Strategist™ and the founder of Bedrock Divorce Advisors, LLC, a divorce financial strategy firm that exclusively works with women, who are going through, or might be going through, a financially complicated divorce.

He also advises happily married women who have seen their friends blindsided by a divorce initiated by their husbands and wonder (wisely) how financially vulnerable they’d be in that situation. Jeff developed the nation’s first Just in Case(TM): Secure Your Financial Future, a one-hour program, which quickly shows married women how to be prepared in the event of a future divorce with immediate, practical steps. He can be reached at Landers@BedrockDivorce.com.

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. Denver Divorce Lawyer handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage, debt division-settlement in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

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The Kim Kardashian-Kris Humphries marriage split has been called everything from a distraction to entertainment, but if the couple’s union is annulled — as Humphries is reportedly trying to do — it may actually prove to be a lesson in how some couples can avoid some of the financial disputes that come with divorce.

Unlike divorce, which recognizes that a marriage has an official beginning and end, an annulment retroactively declares the marriage to be null and void. “When a couple gets an annulment, it’s as if the marriage never existed to begin with,” says Kristin D. Hofheimer, a divorce attorney in Virginia Beach, Va.

What that means for your finances is this: In an annulment, the courts do their best to restore the individuals to their original financial state. So, what money and property you brought into the marriage is what you should walk away with, including any debt you brought into the marriage. Joint assets and debt accumulated together during the marriage are typically divided equitably.

But qualifying for an annulment isn’t a walk in the park, as certain grounds must be met in order for it to be granted.

Here are some of the more common reasons an annulment may be allowed:

• If fraud or concealment is involved, such as one party keeping important information from the other, such as a drug addiction or a felony.
• The refusal or inability of one party to consummate the marriage.
• The determination that the two parties are close relatives and are in an incestuous marriage.
• The determination that one or both parties were unable to consent to marriage because of a lack of understanding, such as the case of someone who is mentally ill.

While marriages of any length can be annulled, many states have time limits for filing based on when the grounds for annulment took place. For example, in Illinois, if you want to get an annulment because of fraud, you have 90 days to make the claim after you learn about the fraudulent event. In Minnesota, if you want an annulment because one party is unable to consummate the marriage, you must file the motion within one year.

Do you need to get an annulment? Contact Gary Nicholas, Annulment Attorney Denver at 303-322-0038.

The financial consequences

Since an annulment negates the marriage’s existence, the way it impacts a couple’s debts and assets are such:

Both parties are restored to their original financial state, meaning the debt and assets they each entered the marriage with is what they leave with.

If the couple has amassed debt jointly while in the marriage, “it would be just as though you and your cousin went and got a credit card together,” says Hofheimer. In the creditor’s eyes, both parties are 100 percent responsible for the debt and, therefore, the creditor could come after either one of them, or both.

Couples who are in the process of getting an annulment and want to be proactive about their finances can typically approach joint debt in one of two ways:

• They can split the amount owed and each pay their share to take care of the debt.
• One party can pay the entire debt and then sue the other party for half. If you’re trying to protect your credit, you may want to take care of the debt and let your ex reimburse you so you know an unpaid bill won’t end up bringing down your credit score, Hofheimer says.

Financial headaches averted

If a couple can get an annulment granted, they can sidestep some of the drawn-out financial disputes that can result from a divorce. In divorce proceedings in many states, the court can determine that debt amassed in the marriage is marital debt, regardless of whose name might be on a credit card, Hofheimer says.

Some states follow community property laws, which dictate that all income, debts and assets acquired during the marriage are split 50-50 between the couple. However, in non-community property states, the court must determine a fair and equitable way to divide bills and assets. In those situations, one spouse must prove that he or she should not be responsible for debts incurred by the other.

This is what happened when Chevella Wilson of Winston-Salem, N.C., divorced her husband in 2008. She was faced with the possibility of being left holding the bag for some of the debt that her husband had racked up. To protect herself, she had her divorce attorney draw up a document that stated what debts she had incurred as his wife and what she would pay. Her husband at the time then had to acknowledge that that was true.

While Wilson’s husband did acknowledge that the debts were his, some cases may be harder to prove. For example, in a contentious split, the parties might want to make things more difficult for one another and refuse to tell the truth. In other cases, couples might simply not agree about who should be responsible for what.

Dana S. Branham, a Lexington, Ky.-based financial planner with Edward Jones, says many couples she works with have different understandings about who is financially responsible for what. In other cases, one partner is not aware of the amount of debt that has been incurred by the other because the other person controls all of the finances. In that case, does the court hold one party more responsible for the debt just because he or she was the one who managed the couple’s money? “I’ve run into people with no idea about the marital finances,” says Branham. “And unfortunately the other person sometimes takes advantage of that.”

If a couple sees that they’re headed for a split, regardless of whether they end up in divorce court or seeking an annulment, both parties should have an understanding of their entire financial picture and come to an agreement on a plan for taking care of what is owed. It’s also a good time for each to reach out to a financial planner to figure out how the split will impact their futures. When you’re starting over, you may have less money slotted for retirement than you planned, or, in the case of divorce, more debt than you realized. Couples also often have to go from sharing expenses to paying all of the household bills on their own. “All of that can be a pretty significant financial adjustment,” says Branham.

While Kris Humphries’ quest for an annulment doesn’t seem to be about assets or debt — rather, he reportedly wants to be released from the prenuptial agreement that currently prevents him from talking about his relationship with Kim Kardashian — the motion, if granted, would erase the 72-day marriage from existence. Now that’s something we could all probably benefit from.

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. Denver Divorce Lawyer handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage, debt division-settlement in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

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Posted: Jan 03, 2012 4:19 PM MST

COLUMBUS, GA (WTVM) – We’ve talked about the busiest shopping days and the busiest return days of the year, but did you know January is the busiest month for divorce attorneys?

After the presents are unwrapped and the decorations are put away, some couples get started on their New Year’s plans.

“As the New Year starts I think it’s pretty much the same impulse that people to want to make New Year’s resolutions. They want to get their lives straightened out and get on a new track,” said attorney Maxine Burns Hardy.

She says they won’t be carrying out those resolutions together, “All lawyers who do this kind of work and focus on family law and divorce law, they expect to see a surge in business at the first of the year that really carries on for a few months.”

Some couples have a very speedy divorce, like Shannon Pinkly, “It just really depends on who you go with. I was able to get an appointment that day.”

Experienced Divorce Lawyer Denver – Nicholas Family Law.

While others know the process will take time, so they plan ahead.

“Lawyers are a lot less available at the end of the year and around the holidays and when the new year picks up, we all hit the offices ready to roll,” explained Hardy.

Attorneys say couples also wait to carry out a divorce until the New Year rolls around for the sake of other family members, “Parents primarily want to wait until the holidays are over so they don’t dispute that season for their children.”

Pinkly added, “I think the holidays are stressful enough and when you’re trying to make an emotional decision and moving forward, it’s something that people just want to wait on and get through the holiday season. If you have children you don’t want to put that burden and stress on them, so wait and get through the holiday and put on that happy face.”

Divorce attorneys also say they see another big pop in divorces right after couples file their income taxes because they have their finances in order and finish up that business before parting ways.

Copyright 2012 WTVM. All rights reserved.

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. Denver Divorce Lawyer handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage, debt division-settlement in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

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According to divorce-online.com, a third of all divorce petitions filed in United Kingdom last year that cited unreasonable behavior, also mentioned Facebook. In 2009 only 1 in 9 cited Facebook.

“Social networking has become the primary tool for communication and is taking over from text and email in my opinion. If someone wants to have an affair or flirt with the opposite sex then that’s the easiest place to do it.” – Mark Keenan divorce-online.com

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. Denver Divorce Lawyer handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage, debt division-settlement in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

Email Us | Directions

Is your divorce or separation creating money problems? Many people find it hard to pay the bills – plus their legal fees – during this time. For example:

• You may have been living on two incomes, but now you are on your own.
• Your money may be invested in a house, a property, or a business, and it will take time to get your share.
• Your divorce may be complicated, and you will be short of cash until you and your ex-spouse reach an agreement.

No matter what happens, make sure that you don’t fall into one of these three common traps:

1. Falling behind on your bills

Even if you have to borrow money, it’s important to pay the bills. If you don’t, you will have to pay interest anyway. You could also hurt your credit rating, which means you may get turned down the next time you try to borrow money.

2. Making decisions too fast

If you rush or don’t have a plan, you may make costly mistakes with the money you get after your divorce. Before you spend, it’s important to decide what you will need that money for in the future.

3. Doing nothing

Acting too quickly can be a mistake, but so is taking too long to sort out your finances. Here are some of the dangers of doing nothing:

• If you have money to invest and leave it in a bank account, you may miss chances to grow your money. Your may even lose money.
• If you and your ex-spouse still have joint accounts and credit cards, one of you could spend money or go into debt, so be sure to close them down quickly.
• If you delay making changes you need to make, like cutting your costs or getting a new job, you may spend money you need for your future.
• If you plan to claim spousal support, you need to file within two years of separation. If you wait too long, the court may dismiss your claim.
• If you don’t update your will and insurance plans, you may create big problems for your children or other family members.

Remember: Don’t take too long to plan your future after divorce.

Experienced Divorce Lawyer Denver – Nicholas Family Law.

Sometimes the worst thing you can do is nothing. You need to make wise, timely choices to help you reach your financial goals. If you’re not sure what to do, or you’re afraid of making a mistake, get advice from an expert.

See entire article at Investor Education Fund

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. Family Law Attorney handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage, debt division-settlement in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

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ANN MACDONALD – OCT 2007, Legalzoom.com

Debt may be as American as apple pie and baseball. After all, most American couples owe a staggering amount of money. They have mortgages on their homes, loans for their cars and use credit cards for both real emergencies and “emergency” luxury purchases. That debt may seem inconsequential when you are nesting in wedded bliss and everything is right in paradise, but if the marriage falls apart, who gets left holding the bills?

Family Court and the Bills

When people file for divorce, their first thought is frequently about their assets. However, debts are just as important since they also factor into a couple’s net worth. Look at every bill and financial statement that comes into your house to get an accurate picture of your economic position. Both spouses should have equal access to the family’s financial data and be involved in important money decisions.

As part of the divorce judgment, the court will divide the couple’s debts and assets. The court will indicate which party is responsible for paying which bills while dividing property and money. Generally, the court tries to divide assets and debts equally; however, they can also be used to balance one another. For example, a spouse who receives more property might also be assigned more debt.

It’s important to note that laws for dividing debts and assets vary by state. Some states take into account the assets and debts each party brought to the marriage. In states where community property rules, everything in the marriage is owned equally. Of course, one must also keep in mind that a prenuptial agreement would affect any settlement.

When Your Former Spouse Doesn’t Pay

Sometimes, people do not or cannot pay the debts they were assigned in the divorce settlement. In these instances, the creditors may come after the spouse responsible for the debt, even though originally both parties were responsible for the loan. Although this may seem unfair, it is actually done to protect the rights of the creditor.

So, what is the best thing to do if your ex isn’t paying and his credit card company is hounding you? You can petition the court to enforce the divorce agreement. Your spouse must then appear in court to explain why the order is not being followed and may be punished with fines or jail time.

If you can afford to, pay the debt and keep proof of your payment. Then, notify the family court and ask for assistance in getting reimbursed from your ex.

Experienced Debt Division Divorce Lawyer Denver – Nicholas Family Law.

‘Til Bankruptcy Do Us Part?

Like the chicken and egg, no one is exactly sure which came first: divorce or bankruptcy. Sometimes the financial strain of a bankruptcy can be the last straw and a couple splits. Other times, the result of a divorce settlement is that one or both parties cannot pay their assigned debt and it’s straight to bankruptcy.

The important thing to note is that filing for bankruptcy does not stop payments for child or spousal support. Bankruptcy court will keep other creditors away, but court ordered family support maintains priority in bankruptcy judgments.

Best Divorce Debt Is No Debt

Debt adds complexity to a divorce and keeps ex-spouses connected just when they are trying to separate. The best scenario is to clear debt before or during divorce. Barring that, it is critical to have a clear picture of your finances so you can make sure assets and debts are both appropriately dealt with in court. If all goes well, you will be building, not breaking, the bank.

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. Family Law Attorney handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage, debt division-settlement in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

Email Us | Directions

MomTalk Blog by Jodi Luber

1. Talk, talk, talk

Talk with friends, family and other acquaintances who you know have been through a divorce. Ask not only about the outcome, but about the attorney, too – did he/she return phone calls promptly? Explain in understandable terms the divorce process and possibilities of settlement vs. going to trial? Were fees explained and billing questions answered politely? Did their attorney make promises he/she couldnʼt keep? Was the attorney satisfactorily able to answer questions about the kids, the pets, and anything else specific or unique to your acquaintanceʼs situation? Listen and develop your own opinion, and keep in mind that the emotional component of a divorce will impact the way each client thinks of his/her
attorney.

2. Experience Counts

While there are few legitimate “specialties” in the practice of law, many states allow lawyers to say that they “concentrate” in just about anything. When interviewing prospective attorneys to handle your divorce, ask what percentage of their practice is in the family law field, and ask specifically what makes up the remaining percentage. There is no special certification required to handle divorce cases, so make sure youʼre working with an attorney with concrete experience that is relevant to your situation.

3. How Much is This Fun Going to Cost?

Before you begin interviewing, know how much you can afford and how much youʼre willing to spend. Your attorneyʼs “billable time” includes his/her time spent researching and drafting documents as well as time spent in meetings with you, your exʼs attorney, and other individuals such as expert witnesses. Most attorneys will also bill for time spent travelling to and from these meetings, to and from court, and time spent waiting at the courthouse for their cases to be called. Oh, and donʼt forget that theyʼll also bill you for time spent on the telephone and sending emails.

Experienced Divorce Lawyer Denver – Nicholas Family Law.

4. Shop Around

Most of the best attorneys will require payment for their time regardless of whether you choose them, so find out ahead of time if a fee will be required for initial consultations. Initial consultations usually last an hour, so come prepared to give a complete – yet concise – history of the marriage and why youʼre seeking a divorce. Gather bank, credit card and retirement account statements as well as documentation of life insurance policies and other investments. Prepare a history of each spouseʼs income, spending habits, inheritances, time spent maintaining and serving the family though
child care, handling the homeʼs finances and maintenance, as well as time spent serving civic organizations.

Keep in mind if your spouse is unaware that you are out shopping for a divorce attorney, itʼs a good idea to pay with cash or a money order rather than checks or credit cards, especially from shared accounts.

5. The Interview

The purpose of the first consultation interview is for you to discuss the attorneyʼs experience and how that experience and the attorney him/herself would be the best fit to represent you in your unique divorce process. This person is going to be your advocate, your guide, advisor and friend during an incredibly stressful time in your life.

Ask about experience, including specific number of divorce cases handled, and what percentage of cases like yours resulted in settlement. Ask about the attorneyʼs participation in CLE (Continuing Legal Education) seminars on family law. Ask about billing rates, what they expect this will cost you in the end, and the involvement of associates on your case. At the end of the interview, ask yourself if this person is going to do his/her best for you.

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. We are Family Law Attorneys handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

Email Us | Directions

How the Valuation Dates of Different Assets Are Decided During Divorce

You think you want to keep the house. He says he’s more interested in his business. What will happen to the stock portfolio, retirement accounts, the vacant beachfront property and the art pieces you bought together?

It won’t be an easy task, but there’s no getting around it: Divorce requires the division of all your marital assets.

And, as you can imagine, in order to partition those assets properly, each must be assigned an accurate dollar value.

In divorce, the point in time in which an asset is assigned a dollar value is called its valuation date.

That sounds relatively straightforward, doesn’t it? Since each asset needs a dollar value, all you have to do is simply pick a date and appraise each item as of that date. Well, unfortunately, like most other aspects of divorce, the determination of valuation dates isn’t typically very straightforward at all. In fact, the process can be quite complex.

Why?

For starters, the value of an asset can significantly vary depending on the date that is chosen to be its valuation date. Plus, each state has its own specific regulations and guidelines. For example:

• In New York, the Court must select a valuation date as soon as possible after the divorce action has commenced.
• Other states may use the trial date, the date of separation, the date the divorce complaint was filed or another date as the valuation date.

Since there is often a long delay between separation and divorce, you’ll want to work closely with your divorce team to help you work through these nuances, so that, to the extent possible, you can use a valuation date that is the most advantageous to you. (The complexity of assigning a valuation date is nicely illustrated in this list of each state’s laws.)

How does the valuation date differ from the date of separation?

In my last article, I discussed why divorcing women need to pay careful attention to the date of separation (DOS).

And, because there’s often confusion between the DOS and the valuation date, I want to make the distinction between the two very clear.

As I mentioned in that article, the DOS usually draws a very significant line of demarcation. It’s the line in the sand between when you were married (and functioning as a couple) and when you were separated (and no longer functioning as a couple). The DOS is important because it helps determine the division between marital and separate property –and because it can be used to establish a valuation date.

Sometimes, the DOS, itself, is used as the valuation date. But, in other cases, it’s not.

(At the risk of sounding like a broken record here, let me caution you once again. State laws vary greatly, so please consult with your Denver Divorce Lawyer team to ascertain how these matters are determined in your state.)

Which assets are typically valued as of the DOS, and which are typically valued as of the trial date?

Generally, active assets are valued as of the DOS, while passive assets are valued as of the trial date.

An active asset is any marital property that can change in value due to the actions of its owner. For instance, a business, a professional practice and even the marital home can be considered active assets. As you can see, it makes sense for an active asset to be valued as of the DOS –otherwise, the spouse who controls the asset might allow its value to diminish as the divorce proceedings unfold.

A passive asset, on the other hand, is any marital property that can change value because of forces beyond the direct control of its owner. For example, vacant land and stock portfolios may be considered passive assets because their value depends on market forces.

What difference does it make if an asset is valued at one date or another?

Assigning a valuation date can have a significant impact on the value of a particular asset.

The easiest way for me to explain this is by using examples.

In a New Jersey appeals case, the husband owned a seat on the New York Stock Exchange. The seat nearly doubled in value between the time of the filing of the divorce complaint and the time of the divorce trial. Which date should be used as the valuation date? The Courts ruled that the date of the divorce trial should be used as the valuation date. In this case, the increase in value was viewed as entirely passive since it was not based on the actions of either party.

In other cases, different rules apply. For instance, a business that is managed by only one spouse is usually considered an active asset and would typically be valued as of the DOS (or commencement of the divorce action in New York). This approach makes sense for two reasons:

1. To protect the spouse who controls and manages the business. Should the value of that business increase between the DOS and trial date due to the efforts of the managing spouse, then that spouse should be awarded the benefits of his/her labor.
2. To protect the non-managing spouse. Should the spouse who controls and manages the business decide to run the business into the ground, the non-managing spouse should not suffer any loss as a result of the managing spouse’s actions.

I’m sure you won’t be surprised to learn that in the current volatile economic situation, things can get even more complicated. For example, a judge may rule that any decrease in the value of a business was a result of the recession and had nothing to do with the actions of the managing spouse. In essence, the judge could deem a normally active asset (the business) to be a passive asset and therefore would use the trial date as the valuation date rather than the DOS (or commencement of the divorce action in New York).

While the complexities surrounding the “straightforward” concept of valuation date can seem a bit confusing at times, don’t feel overwhelmed. Your divorce team will help you work through the specifics of your case, and with their help, you’ll be able to manage your assets and develop a comprehensive plan for continued financial stability and security in the future.

Nicholas Family Law is a leading and experienced Family Law Attorney in Denver. We are Family Law Attorneys handling matters such as divorce, mediation, child custody, child support, alimony, legal separation, property division, common law marriage in the Denver metro areas. Courts we serve include Adams County Court, Arapahoe County Court, Denver County Court, Douglas County Court, and Jefferson County Court.

Nicholas Family Law
4601 DTC Blvd. #1000
Denver, CO 80237
303-322-0038 (phone)
303-740-8408 (fax)

www.nicholasfamilylaw.com

Email Us | Directions