15 Costly Divorce Mistakes

There's currently an article on MSN Money about 15 Costly Divorce Mistakes. They are:

Becoming a financial victim
Not considering mediation
Hiring a combative lawyer as punishment
Failing to recognize your enemy: the IRS
Not producing an accurate budget
Not evaluating a divorce settlement on an after-tax basis
Failing to use computer models to evaluate settlements
Bringing an emotional attachment to assets
Using your lawyer as a financial planner, therapist or messenger
Accepting a settlement that isn't as good as it seems
Disregarding the impact of inflation
Not waiting until a wife is eligible for her husband's Social Security
Forgetting to update estate documents
Failing to adequately insure the divorce settlement
Failing to develop a financial plan

All of these are good points; one thing to consider when hiring an attorney is their effectiveness at negotiations and mediation. Can they effectively work outside the court system to get you a settlement that you can live with after the divorce? Remember, your costs will go up - where there was once one house, there are now two. Two rents or mortgages, two utility bills, two water bills, two internet service providers, and the list goes on and on. Add in child support and alimony, and it will take some adjusting to before you are back on your feet. Work to minimize legal fees to help with the transition.

Taking Stock Before The Divorce

Are you ready to file for divorce? Is your spouse threatening to file? No, I do not mean that you take any shares of stock that your spouse may own before you get divorced. But you do need to review where you stand before you file for divorce. Here are a few things that you should review as divorce becomes more imminent:

• Take stock of your career. Are you earning enough money to support yourself and your children? Do you have the necessary education and training to go back to work, if necessary?
  
  
• Take stock of your spouse's career. What is your spouse earning? Will he or she be able to support his or herself without support from you? Will he or she need additional training to return to work?
  
  
• Take stock of your finances. As part of the taking stock of your career, you will need to look at the current status of your finances. Get copies of your recent tax returns, bank statements, and retirement and investment account statements. Catalog all the major assets that you and your spouse currently have. Did you or your spouse have any of them (pre-marital assets) before you got married? Do you and your spouse have any credit card debt? How much is left to pay on the mortgage? Any car loans?
  
  
• Take stock of insurance plans. After you are divorced, you may no longer be eligible for your spouse's health insurance. Figure out if your employer can provide insurance if your spouse has been providing the insurance. Remember, if you will soon be a single parent, you will probably want to provide your children with adequate life insurance. You may also want to investigate disability insurance in case you cannot work due to injury or disability.
  
  
• Take stock of major assets. The house, the car, the furniture, the big-screen television. List them all. Do you have valuable pieces of artwork, collections, or jewelry? What about a boat, airplane, vacation home, timeshare, or any other assets?
  
  
• Take stock of your legal options. Most often, you will need to consult with an attorney. Often times, you may have rights to the marital home, bank accounts, and temporary alimony and/or temporary child support while the divorce is pending. Consult with an attorney to determine what, if any, additional steps you need to take.

Most of these options refer to your finances. That is because you will have to pay for all your own household expenses, without much help from your former spouse. During the divorce proceedings, you will need this information, much of it when you initially file or answer a complaint for divorce. It is often times easier to gather the information before you tell your spouse that you want a divorce.

In any event, if there has been domestic violence, do not wait to take stock of anything. You must protect your physical safety first and foremost.

Bynum v. Weeks

National Evangelist Juanita Bynum's divorce case is moving forward. Last week, she filed for divorce in Gwinnett County and was also granted a mutual restraining order. Bishop Thomas W. Weeks III has denied the cruel treatment and the separation that Bynum alleged in her petition. Weeks is also seeking alimony or other support. Weeks has not yet filed his answer. See the "local newspaper."

Georgia Supreme Court Wrapup

Decisions of interest to this blog from September 24:

Hawthorn Suites Golf Resorts, LLC v. Feneck: Hawthorn Suites lost its appeal of the trial court's dismissal of its lawsuit against Dana Feneck on the grounds of forum non conveniens. Basically, forum non conveniens is the principal that the trial should be help where it is most convenient for the trial court, witnesses, and parties. Feneck had been hired by Hawthorn Suites to manage a property in Louisiana and eventually moved there. The trial court granted Feneck motion that trial should be in Louisiana, not Georgia. The Georgia Supreme Court affirmed. Full Opinion

Alejandro v. Alejandro: This was a divorce action where both parties committed adultery, but the trial court found the cause of the dissolution of the marriage was the husband's return to another state for work purposes. Thus, it was proper for the Court to award the wife with sole custody of the children, as that was in their best interests. Since adultery was not the cause of the dissolution of the marriage, making the husband responsible for certain debts does not violate Georgia law that says alimony should not be awarded to a party whose adultery caused a divorce. Full Opinion

Hammond v. Hammond: Wife appeals the trial court's award of custody to Husband and the calculation of child support obligations. As to the award of custody, the trial court found it was in the best interests of the children to allow them to stay with the father because they would not have to change school districts. The trial court has broad discretion in awarding custody, and the Supreme Court "will not interefere with any such decision absent a clear abuse of discretion." It is "not an abuse of discretion if there is any evidence" to support the decision. As to the child support obligation, the wife's income was improperly calculated because it included child support payments from a previous relationship. Full Opinion

Scarborough v. Scarborough: In the absence of a provision in the parties' settlement agreement and divorce decree incorporating the settlement agreement, a non-custodial parent is entitled to a credit against his or her child support obligation for social security retirement benefits which become payable directly to his or her children at some time following the execution of the settlement agreement. The Court cited two early 1960s cases addressing similar issues, and said in effect that the Social Security disability payments made to the dependent child are a substitute for income and that retirement benefits were earned in part by the parent. The payments can only be used as an off-set if the payments were not already being made at the time of the agreement and divorce decree or if there is not otherwise a provision that addresses future retirement benefits in the settlement agreement or divorce decree. Full Opinion

Changed Your Name? Check The Status of Your Drivers License

When the federal government passed the Federal Real ID Act in 2003, the Georgia Drivers Services Department began checking drivers license names against the Social Security Administration's database. If your name did not check against your name with the SSA (according to your social security number), then your drivers license was canceled. The Drivers Services Department would send you a letter, at your last known address, to tell you that you could clear up the discrepancy within 120 days.

Many individuals, particularly married women, have been hard hit when they find out, sometimes years later, that their drivers licenses were canceled. So if you have changed your name for any reason, including marriage, divorce, adoption, please check with the Drivers Services Department to make sure your license is valid.

See the "local newspaper" story for more information.

You can contact the Driver Services Department at 678-413-8400 and the Social Security Administration at 1-800-772-1213.

Updates to Your Estate Plan

Several readers have asked how often they should update their estate plan, including their wills, advanced directives (living wills) and power of attorneys. My general recommendation is a cursory review every year and a detailed review every five years or any time that there is a major event. Major events include:

• Marriage
  
• Divorce
  
• Birth or Adoption of a Child
  
• When a child reaches 18 years old
  
• When you receive a significant inheritance
  
• When you have a significant change in assets
  
• Change in health status

Bynum Files for Divorce

Juanita Bynum, nationally known evangelist, has filed for divorce from her estranged husband Bishop Thomas Weeks III, only two weeks after he allegedly attacked her. According to the local newspaper, a relative said that Bynum filed from divorce, but court records were unavailable to confirm the filing. See the "local newspaper" for more details and coverage of the previous alleged attack by Weeks.

Catching Up After Labor Day...

Here's all the items of interest from around the state over the past several days:

Atlanta:

Coca-Cola is in the midst of a reorganization of its North American division. During this reorganization, Coke will cut at least 125 jobs, mostly in the Atlanta headquarters, by year's end. These are the first layoffs since 2003 when they cut 1,000 jobs in North America and in 2000 when they cut 5,200 jobs world-wide. See the "local newspaper."

Rubinstein Atlanta Perimeter LLC has asked DeKalb County to rezone an area around Perimeter Mall to allow for redevelopment to add a hotel and office space on Perimeter Center Parkway. See the Atlanta Business Chronicle.

East Point: The City of East Point and Georgia Power have come to an agreement that will allow a 19-mile natural gas pipeline to carry gas to a Smyrna area plant. See the Marietta Daily Journal.

Gwinnett: A local man is filing a $25 million lawsuit against the city of Duluth because Wal-Mart has been unable to get required building permits for a store it planned to build on the man's land. Currently, the city has a moratorium on all buildings larger than 75,000 square feet. Jack Bandy, the local landowner, is being represented by former Georgia Governor Roy Barnes. Gwinnett Daily Post

Rome:

After bar owner Doug Pedrick admitted buying liquor and wine for two of his establishments in Rome from one of his establishments in Cartersville, the Rome Alcohol Control Commission voted to revoke the two establishments 2007 liquor pouring licenses. Pedrick is expected to file a lawsuit in federal district court soon. See the Rome News Tribune.

Rome is also following the lead of Kennesaw and several other Georgia cities in amending local ordinances that prohibit weapons at city parks.

Major development is slated to happen on the stretch of U.S. 411 near the Wal-Mart. The Sembler Co. has a contract on one corner, which could house Target, Publix, Dick's Sporting Goods, and/or a Best Buy. See Rome News Tribune.


Georgia:

The Public Service Commission adopted a policy where residential customers facing disconnection will not be cut off if the high temperature for the day is forecasted to be 98 degrees or higher or the heat index is forecasted to reach 110 degrees or higher. The protection order takes effect in ten days. The rule applies only to Georgia Power, the only regulated electric utility in Georgia, which already had the same internal operating policy. See the Savannah Morning News and a "local newspaper."

House Speaker Glenn Richardson is proposing a shift to a broader sales tax and away from property taxes. Lt. Gov. Casey Cagle wonders if a cut in the state income tax may be more beneficial. See The Political Insider. State Senator John Wiles from Kennesaw said that the proposal would take away local control of tax funds. See the Marietta Daily Journal

U.S. Rep. Paul Brown voted no on the Microloan Amendments and Modernization Act. See Georgia Politics Unfiltered.

New food safety rules go into effect on December 1. The scoring system adds letter grades and the reports must be posted near the entrance as well as in drive-through windows. Also, employees must use gloves or utensils when touching ready-to-eat food and the restaurant must keep a food saftey certified manager on staff. See the "local newspaper."

Elsewhere:

Shaquille O'Neal, basketball star, has filed for divorce from his wife in Miami, Florida. Fox Sports with the report.

Second Marriages and Estate Planning

In a recently published article from SmartMoney, heirs worry when their parents re-marry. Why? Their inheritances are at-risk, of course. This is just a reminder that pre-nuptials are not only for the young, wealthy, and working. Pre-nuptial agreements are a necessity any time you are getting married, and a complete estate plan is a necessity any time you have a major change in your life. Those major changes include, but are not limited to:

1. First marriages
   
2. First divorces
   
3. Having or adopting a child
   
4. Major accumulation of wealth (example: inheritance from your parents or winning the lottery)
   
5. Subsequent marriages and divorces

In Georgia, there have been some recent changes to the way pre-nuptial agreements are enforced. Before you sign one, make sure to talk with an attorney about your agreement.

Although mentioned in the above article, it is worth repeating: be aware that there are specific rules regarding house certain types of assets are transferred through the probate process. This includes 401(k)s and titled assets such as homes. Before you change the status quo, talk with an attorney that is familiar with the probate rules regarding the specific assets.