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Divorce

Wife of Cuba Gooding Jr. Seeking Spousal Support in Divorce

It looks like famous actor Cuba Gooding Jr., known to many Maryland residents for his appearance in “Jerry Maguire,” may be showing his wife the money after the dissolution of their marriage. The pair, who have been married since 1994, recently announced that they intend to divorce. Gooding’s wife filed for the separation in a California court on April 21, according to reports.

Insiders say that the woman is seeking spousal support, though it is not exactly clear how much she is pursuing in connection with the breakup. She is seeking joint physical and legal custody of the pair’s minor children, ages 8 and 17. An older son, 19, is already in college.

The split may come as somewhat of a shock for fans of the 46-year-old Academy Award-winning actor; in January, he appeared on the daytime show “The View,” singing the praises of his long-lasting marriage. Gooding said that he appreciated the fact that his wife was able to play so many roles in their marriage. He also said that his wife was continuously evolving to meet the family’s needs, and he was extremely lucky to have her as a life partner.

The woman cited irreconcilable differences as the cause of the split.

In this case, the woman is a schoolteacher and Gooding is a high-powered actor. Their income levels are almost certainly disparate, so it makes sense that she would choose to pursue alimony in addition to general equitable property division. When one spouse makes a significantly higher wage or holds massive assets, that person may be required to not only divide marital property, but also provide continued financial support to an ex-spouse.

Source: The Los Angeles Times, “Cuba Gooding Jr.’s wife of 20 years files for separation” Nardine Saad, Apr. 23, 2014

Family Home

Rights to the Family Home are not Forfeited by Leaving the Home

Moving out of the family home does not result in outright forfeiture of the home.  You need to confer with your Annapolis, Maryland attorney before you move.  There are consequences to moving although you do not give up your rights to the house.

A court has the discretion to award up to three years of use and possession of the family home to a spouse with custody of minor children.  While moving does not result in outright forfeiting of the value of the family home. if you move out, it makes it much, much more difficult to convince a court to award you use and possession of the home.

But, your rights to the home or part of its value are not impacted by who moved out of the house.  The important this is when the property was acquired.  In general, if it was acquired during the marriage except by gift or inheritance, it is marital property.  In the vast majority of cases, its value is divided between the spouses.

You need to take steps very carefully after considering all of the aspects of a move.  Moving could impact other parts of your family law case.  It could have an effect on when you could force the sale of the home.  It could affect your obligation to support the family left in the home as well as the household expenses.  It could affect entitlement to alimony.  It could result in grounds for divorce.  If you move without the children, that could impact any future claim for custody.

It is important to properly plan for separation and divorce.  Part of that planning involves working with a Maryland attorney to develop that plan.

Child Support

Parents Could Receive Child Support Amnesty, Avoid Jail

Maryland’s neighboring state of New Jersey wants its parents to commit to “Do the Right Thing for Your Kids.” That is why the state’s office of Child Support Services is offering a get-out-of-jail-free opportunity for parents who are in arrears for their child support payments. Parents who are facing possible arrest for their overdue amounts could be eligible for payment restructuring under the amnesty effort.

Those parents who are interested in pursuing child support modifications may do so through the first weekend in May. If they reach an agreement for a payment plan, the parents can have their arrest warrants expunged. Even those parents who are unable to agree to a proposed payment plan may be temporarily exempted from arrest.

The last time such a program was offered in the state was 10 years ago. Parents were able to avoid jail time through a similar initiative that occurred in 2004. State authorities say that the program is only administered infrequently because they do not want to give parents the impression that child support is an optional commitment. However, there are some people who have fallen on hard times and could pay an even higher price for their failure to pay child support. Those parents deserve a second chance; luckily, the state of New Jersey is reaching out to provide needed assistance.

Although parents who find themselves making delinquent child support payments are unfairly characterized as “deadbeats,” there are a variety of reasons for noncompliance with child support. In many cases, parents fall behind on their weekly or monthly bills, and they are unsure how to break out of the financial mire. Those well-intentioned parents deserve the chance to make good on their overdue child support and demonstrate their commitment to their children, no matter their economic struggles.

Source: NorthJersey.com, “NJ offering child-support amnesty” Colleen Diskin, Apr. 18, 2014

Child Support

Will Mortgage Lenders Count Child Support and Alimony?

Will mortgage lenders count child support and alimony?  The simple answer is “that depends”  Qualification for mortgages in Maryland is more strict than it has been in the past. Your Annapolis, Maryland lawyer will work with you to develop a schedule of payments to assist you whether you are refinancing the mortgage on the family home to “buy out” your spouse or purchasing a new home.

Do alimony and child support count as income when lenders are deciding whether you qualify for a particular amount of mortgage?   These issues should be discussed with your Annapolis, Maryland attorney when you are negotiating a separation agreement or preparing for trial.

1. In general, you have to have a signed separation agreement or an order from the court.

2. The obligation has to be payable for three years beyond when you apply for the mortgage.

3. And, you have to be able to prove a year’s history of the support actually being paid.

This means there are several considerations you need to discuss with your Annapolis, Maryland attorney at the time of negotiating the separation agreement or going to court.  I

If you have to be able to prove the payments were made for 12 consecutive months, you need to be sure to copy all pre-separation agreement checks.  If there have not been regular payments made, a lender may require you to receive payments for 12 months so you can establish a record of payments — but you are required to also have three years in the future.  If you are fearful about your spouse actually making the payments, an earnings withholding order may ensure payment.    So, you have to be sure that the length of the child support and alimony payments are long enough to both prove a history of payment and extend three years into the future.

Of course, if you qualify for the loan without and alimony and child support, this would have no effect on you.

Property Division

Property Division Drama in Store for Podesta Pair

Divorce documents have just been released in connection with the breakup of high-profile political power couple Heather and Tony Podesta. The pair, active in the national political scene, may be preparing for a contentious split, as both members attempt to maintain their business brand for future use. Maryland couples who are divorcing after building their businesses together may face similar struggles as this Washington, D.C., pair during the property division process.

Although the couple is reportedly arguing over a large collection of art, the primary point of contention in this divorce appears to be all business. The members of this couple both built themselves up as industry insiders, but the man is taking credit for the lion’s share of the woman’s success. News reports show that he is accusing his soon-to-be ex-wife of using his name and associated reputation to build her own business empire. Courtroom documents say that the man introduced his wife to important people and processes that could lead her to success as a high-powered lobbyist. The man explains that his contacts and experience contributed greatly to the woman’s meteoric rise in the political scene.

The woman’s perspective appears to be more egalitarian; she says that she worked cooperatively with the man to build a political presence in the nation’s capital. Her divorce-related documents show that she is seeking possession of the family home; she is justifying that request by pointing out that she oversaw a massive renovation of that house over a period of several years. Her courtroom documents focus on equitable distribution, according to insider reports. She wants a fair share of the couple’s extensive collection of artwork, in addition to other specific assets.

Even high-powered government couples need help sorting out their marital property during a breakup. A Maryland attorney may help those with unusual assets — such as this couple’s collection of 1,300 pieces of art — achieve equitable distribution. Attorneys may provide guidance throughout complex property divisions, facilitating complex valuation for a fair split of property obtained during the marriage.

Source: Politico, “Heather and Tony Podesta divorce documents released” Tal Kopan & Lucy McCalmont, Apr. 11, 2014

Legal Separation

May My Spouse and I “separate” in The Same House in Maryland

Legal Separation:  Maryland law requires spouses to live separately and apart from one another continuously for twelve months.  Co-habitation within the same house does not constitute a “separation” under the Maryland family law code.

As always, you should confer with your Annapolis, Maryland family law attorney about details.

Posted by Cynthia Clark, Esquire

What’s on Your Mind Wednesdays

Each week Cynthia Clark will be featuring a question of the week. regarding some issues in Maryland family law that we frequently get asked in our law practice.  Check in with us weekly and see if we answer one of the questions you’ve wanted to know about custody, alimony, divorce, and child support.  Feel free to post a question in our comments section and we may feature your question.  in our What’s On Your Mind Wednesday blog.

Alimony

Olympian, Partner Scrap Alimony Plans, Settle for Specific Items

High-profile Olympian Johnny Weir and his husband, Victor Voronov, have been embroiled in a relatively bitter divorce in recent months. However, a decision about community property and alimony shocked many Maryland residents, as the pair chose to sell off all of their holdings and put the funds in a trust. Some sources say that instead of negotiating about alimony, the couple is seeking access to some valuable sentimental items before going their separate ways.

News reports show that the most recent property division question arose in connection with items held in a storage unit in New Jersey. Among those objects: a $20,000 Faberge egg, along with high-end Louis Vitton luggage and the couple’s wedding rings. Weir had originally asked to sell those items himself, but Voronov and his attorney protested.

A six-hour negotiation led to a compromise between both parties: Weir would get the egg and his own wedding ring, while Voronov would get the luggage and his wedding ring. This property division process certainly seemed daunting. Weir has told his online devotees that he is happy to start anew after that property division negotiation.

The breakup between Weir and Voronov has been fraught with difficulties, as the pair argued about domestic abuse and other serious concerns. Infidelity was also alleged. The couple, married for two years, has chosen the tamer option of selling their community property rather than haggling over specific items in most cases.

Equitable property distribution is an important tenet of modern Maryland divorce; sometimes, though, one spouse needs extra financial help to get back on their feet. In this case, it appears that the couple may have scrapped alimony negotiations in favor of other strategies. However, alimony can have a significant impact on an ex-spouse’s life, allowing them to rebuild their lives after a breakup. Alimony can be used to pay living expenses and maintain a certain standard of living. A Maryland attorney may be able to help couples learn more about their own alimony and property division options.

Source: New York Post, “Forget alimony: Weir gets $20K Fabergé egg” Maggie Coughlan, Apr. 01, 2014

Divorce

Conscious Uncoupling Or is That a Divorce

Divorce?  Conscious Uncoupling is what Gwyneth Paltrow and spouse Chris Martin (lead singer for Cold Play) called it in an announcement.    It sounds like what we on the East Coast call simply a “divorce.”

Most marital dissolution cases are not OVERLY contentious.  People may have a different idea of what “fair” looks like but most people are respectful of each other and want to end things on an amicable basis.  But, people don’t usually talk about situations where people are respectful and come to agreements.  That is boring.  People only talk about the unpleasant and litigious.

The phrase “conscious uncoupling” seems to have been coined by a pair of mental health people working with the Paltrow/Martin team, Dr. Habib Sadeghi and Dr. Sherry Sami.  Apparently, they concede it is a divorce but characterize it as a “good” divorce.

Of course, everything is easier if both parties agree.  We have always called that an “amicable divorce” or an “uncontested divorce”.  We are not sure why we need a new descriptive phrase.

Child Support

Tax Day is Almost Here

When we think of taxes on children we immediately think of the tax exemption for children.  The tax considerations are greater than simply who gets the exemptions. There are a number of other expenses which also go with the children.  In order to determine what law applies to you, you need some professional guidance.

TAX EXEMPTION

The tax exemption for the children is not decided based on what payments a parent makes for a child. It does not depend upon who pays the most for the child.  It does not depend upon the payment of child support.   Rather, it depends upon where a child lives and for how long.

If one parent has sole physical child custody that person gets the federal and state exemption unless they have agreed or court orders to the contrary. But it is not all that simple.  If the parents have the children 50/50, then the exemption goes to the parent with the higher adjusted gross income.

There are also other tax deductions and adjustments that may result in saved tax dollars.

HEAD OF HOUSEHOLD FILING STATUS

Some tax benefits go to the parent with custody of the child. An example is the head of the household filing status. Head-of-the-household status results in a different and lower tax rate than filing as a single taxpayer.  In order to be eligible to file as head of household, the person claiming that filing status must have custody of a minor child.

CHILD AND DEPENDENT CARE DEDUCTION

The child and dependent care deduction also belong to the custodial parent.

CHILD TAX CREDITS AND EDUCATION CREDITS

Some credits do not depend upon physical custody.  They depend upon who claims the child exemption.  Even a non-custodial parent may be eligible to claim child tax credits and education credits.

As you can see, these issues are not simple and require your careful consultation with your Maryland family law attorney your tax advisor. Using all of the tax benefits that are allowed by the Internal Revenue Service and the State of Maryland can result in significant tax savings.   In order to determine what tax law applies to your particular situation, you need professional guidance.