By James Jennings
DiscountDivorcePro.com
What counts as income for calculating child support?
Usually gross income from the following† :
Salaries
Self-employment
Bonuses
Severance Pay
Worker’s Compensation Benefits
Unemployment Insurance Benefits
Wages
Income from a Business
Dividends
Pensions
Disability Insurance (including Social Security disability)
Rental Income
Annuities
Prizes
Royalties
Social Security Benefits
Commissions
Trust Income
Capital Gains
Recurring Gifts
Interest
Spousal Maintenance (alimony)
Gross Income does NOT include benefits from public assistance programs such as Temporary Assistance for Needy Families (TANF), Supplemental Social Security Income (SSI), Food Stamps, and General Assistance (GA); and, it does not include child support payments received.
†
† http://www.superiorcourt.maricopa.gov
Monday, March 10, 2008
Sunday, March 2, 2008
Your Finances & Divorce
By James Jennings
DiscountDivorcePro.com
Common financial mistakes of a divorce.
Financial victim:
If you suspect that your spouse is planning to divorce you. You should make copies of all important financial records. Making copies of bank statements, charge account statements, titles and deeds should be a top priority, if you think that your spouse may sell off a re-title marital assets. You should notify the holder in writing and acquire restraining order from the court. You should also watch out for cash in joint checking and savings accounts. I've seen many cases where these accounts have evaporated, and people have been left with no way to pay their bills. If these assets are taken, legal or forensic accounting fees could become very expensive.
Emotional attachments:
Try not to get emotionally attached to assets. This is a very common mistake that I have seen cost people more money than it should. Assets like your home or your pension make for emotionally charged debates during divorce negotiations. The fact of the matter is most people can't afford a house, and usually give a low priority to their retirement planning. A house is an asset that has a very low return on investment in most cases. You need to consider that in most cases, homes are a major cash expense because of the mortgage payments. Also don't forget the taxes, maintenance, upkeep, and electricity on a house.
Impact of taxes on your assets:
Consider the value of your assets, as it relates to your spouse on an after-tax basis. Don't make the mistake of not recognizing what Uncle Sam will take. Sometimes, when going through divorce, a financial planner or tax accountant can help you minimize the total tax you will pay. Don't forget you and your spouse are both liable for taxes due on joint tax returns.
Budgets:
Most people while they're going through a divorce or even after the divorce complain about not being able to pay their bills. It is important that you seek the help of a financial adviser to help you produce an accurate and complete budget that will help you after the divorce.
If you have a lawyer don't use them as a therapist, financial planner, or messenger:
Most divorce lawyers charge between $150 and $300 per hour. Lawyers are great for giving you legal advice. However, you should not use them to be your financial planners, emotional support, or career counselor. Most lawyers are not skilled in these areas. If you try to use them for these services you would end up more than likely paying them a lot more for these services, then you would if you hired people that were professionals in these fields.
Failing to develop and after divorce financial plan:
One thing, I think most people fail to realize is that it costs more money to operate two households than it does to operate one. Financial planning can help you transition from a married to a single lifestyle by prioritizing your financial goals. You should develop a realistic expectation and produce a good plan for the allocation of your financial resources.
DiscountDivorcePro.com
Common financial mistakes of a divorce.
Financial victim:
If you suspect that your spouse is planning to divorce you. You should make copies of all important financial records. Making copies of bank statements, charge account statements, titles and deeds should be a top priority, if you think that your spouse may sell off a re-title marital assets. You should notify the holder in writing and acquire restraining order from the court. You should also watch out for cash in joint checking and savings accounts. I've seen many cases where these accounts have evaporated, and people have been left with no way to pay their bills. If these assets are taken, legal or forensic accounting fees could become very expensive.
Emotional attachments:
Try not to get emotionally attached to assets. This is a very common mistake that I have seen cost people more money than it should. Assets like your home or your pension make for emotionally charged debates during divorce negotiations. The fact of the matter is most people can't afford a house, and usually give a low priority to their retirement planning. A house is an asset that has a very low return on investment in most cases. You need to consider that in most cases, homes are a major cash expense because of the mortgage payments. Also don't forget the taxes, maintenance, upkeep, and electricity on a house.
Impact of taxes on your assets:
Consider the value of your assets, as it relates to your spouse on an after-tax basis. Don't make the mistake of not recognizing what Uncle Sam will take. Sometimes, when going through divorce, a financial planner or tax accountant can help you minimize the total tax you will pay. Don't forget you and your spouse are both liable for taxes due on joint tax returns.
Budgets:
Most people while they're going through a divorce or even after the divorce complain about not being able to pay their bills. It is important that you seek the help of a financial adviser to help you produce an accurate and complete budget that will help you after the divorce.
If you have a lawyer don't use them as a therapist, financial planner, or messenger:
Most divorce lawyers charge between $150 and $300 per hour. Lawyers are great for giving you legal advice. However, you should not use them to be your financial planners, emotional support, or career counselor. Most lawyers are not skilled in these areas. If you try to use them for these services you would end up more than likely paying them a lot more for these services, then you would if you hired people that were professionals in these fields.
Failing to develop and after divorce financial plan:
One thing, I think most people fail to realize is that it costs more money to operate two households than it does to operate one. Financial planning can help you transition from a married to a single lifestyle by prioritizing your financial goals. You should develop a realistic expectation and produce a good plan for the allocation of your financial resources.
Tuesday, February 12, 2008
Grounds for Divorce in a Covenant Marriage
By James Jennings
DiscountDivorcePro.com
We have done countless divorces involving convenant marriage over the years and is one of the most confussing topics for people to understand.
So what is a convenat marriage and how do I get divorced if I have one?
In 1998 the State Legislature created a type of marriage in Arizona called "covenant marriage." It did not replace the kind of marriage already available. Instead it offered an additional option to couples who wish to marry.
The covenant marriage differs both in the steps necessary to get married and the reasons why a legal separation or divorce may be granted by the court.
To enter into a covenant marriage, the couple first must have premarital counseling from a member of the clergy or a marriage counselor. Then, when applying for a license to be married, both persons must show their intention to enter into a covenant marriage by signing a declaration on the application form. In a covenant marriage, legal separation or divorce may be granted by the court only for specific reasons listed in state law.
To get a divorce, any one of the following reasons must be true.
1. Your spouse has committed adultery.
2. Your spouse has committed a felony and has been sentenced to death or imprisonment.
3. Your spouse has abandoned you for more than 2 years and refuses to come back.
4. Your spouse has either (1) physically or sexually abused you, a child or a relative of either of you who lives permanently in your home, or (2) committed domestic violence (defined in Section 13-3601 of the Arizona Revised Statutes) or emotional abuse.
5. Your spouse and you have been legally separated for more than 1 year.
6. Your spouse regularly abused drugs or alcohol.
7. You and your spouse agree to end the marriage.
DiscountDivorcePro.com
We have done countless divorces involving convenant marriage over the years and is one of the most confussing topics for people to understand.
So what is a convenat marriage and how do I get divorced if I have one?
In 1998 the State Legislature created a type of marriage in Arizona called "covenant marriage." It did not replace the kind of marriage already available. Instead it offered an additional option to couples who wish to marry.
The covenant marriage differs both in the steps necessary to get married and the reasons why a legal separation or divorce may be granted by the court.
To enter into a covenant marriage, the couple first must have premarital counseling from a member of the clergy or a marriage counselor. Then, when applying for a license to be married, both persons must show their intention to enter into a covenant marriage by signing a declaration on the application form. In a covenant marriage, legal separation or divorce may be granted by the court only for specific reasons listed in state law.
To get a divorce, any one of the following reasons must be true.
1. Your spouse has committed adultery.
2. Your spouse has committed a felony and has been sentenced to death or imprisonment.
3. Your spouse has abandoned you for more than 2 years and refuses to come back.
4. Your spouse has either (1) physically or sexually abused you, a child or a relative of either of you who lives permanently in your home, or (2) committed domestic violence (defined in Section 13-3601 of the Arizona Revised Statutes) or emotional abuse.
5. Your spouse and you have been legally separated for more than 1 year.
6. Your spouse regularly abused drugs or alcohol.
7. You and your spouse agree to end the marriage.
Monday, February 11, 2008
Does equal visitation mean no child support?
By James Jennings
DiscountDivorcePro.com
One of the most common questions we get asked is: If both parents agree to 50/50 custody and neither want to pay or recieve child support will one of the parents have to pay some amount?
You must keep in mind the most important rule is child support serves the best interests of the child - NOT the parents! So even if the parties "agree" not to pay child support to each other, the court will have an independent legal obligation to ensure that your agreement doesn't hurt the kids.
A 50-50 division of parenting time often results in a minimal need for child support payments. But not always! Much depends on your respective incomes, who pays the medical insurance, extraordinary child expenses, daycare, and spousal maintenance. The judge will also consider whether either party is already paying support for other children from a different relationship.
In other words, there are many factors that play an important role in the child support calculation, and 50-50 custody is just one piece of the puzzle.
DiscountDivorcePro.com
One of the most common questions we get asked is: If both parents agree to 50/50 custody and neither want to pay or recieve child support will one of the parents have to pay some amount?
You must keep in mind the most important rule is child support serves the best interests of the child - NOT the parents! So even if the parties "agree" not to pay child support to each other, the court will have an independent legal obligation to ensure that your agreement doesn't hurt the kids.
A 50-50 division of parenting time often results in a minimal need for child support payments. But not always! Much depends on your respective incomes, who pays the medical insurance, extraordinary child expenses, daycare, and spousal maintenance. The judge will also consider whether either party is already paying support for other children from a different relationship.
In other words, there are many factors that play an important role in the child support calculation, and 50-50 custody is just one piece of the puzzle.
Tuesday, February 5, 2008
Some Issues Concerning Residency
By James Jennings
DiscountDivorcePro.com
If one spouse meets the residency requirement of a state (such as having lived there from six months to a year depending on the state), a divorce obtained there is valid, even if the other spouse lives in another state. The courts of all other areas will recognize the divorce.
However, any decisions a court makes regarding property division, alimony, custody, and child support may not be valid unless the nonresident spouse consented to the jurisdiction of the court. A nonresident spouse consents to jurisdiction if the nonresident spouse shows up at a court date or signs an affidavit of service, acknowledging receipt of the filed legal documents.
Moreover, one of the judges in the Maricopa Superior Court takes this one step further and requires specific wording in the acceptance of service, stating that the other spouse is waiving their rights and accepting Arizona's jurisdiction.
Also, it can also happen if the nonresident spouse abides by the rulings of the court; for example, by paying court-ordered child support.
DiscountDivorcePro.com
If one spouse meets the residency requirement of a state (such as having lived there from six months to a year depending on the state), a divorce obtained there is valid, even if the other spouse lives in another state. The courts of all other areas will recognize the divorce.
However, any decisions a court makes regarding property division, alimony, custody, and child support may not be valid unless the nonresident spouse consented to the jurisdiction of the court. A nonresident spouse consents to jurisdiction if the nonresident spouse shows up at a court date or signs an affidavit of service, acknowledging receipt of the filed legal documents.
Moreover, one of the judges in the Maricopa Superior Court takes this one step further and requires specific wording in the acceptance of service, stating that the other spouse is waiving their rights and accepting Arizona's jurisdiction.
Also, it can also happen if the nonresident spouse abides by the rulings of the court; for example, by paying court-ordered child support.
Monday, February 4, 2008
Misconception Regarding Legal Separation
By James Jennings
DiscountDivorcePro.com
It is a common misconception that some people have that a legal separation is a shortcut to ending a marriage in Arizona. The practical truth is that legal separations can take just as much time, effort and resources as a divorce. That's because they involve pretty much identical issues as divorces --property division, debt division, child custody, visitation, child support, alimony, etc. Legal separations can end up going to a full-on trial, not to mention temporary evidentiary hearings prior to trial. Thus, if you're looking for a shortcut, a legal separation may not be the answer.
Furthermore, legal separations end with you still being officially married. Although everything has been divided up, you remain married, meaning that neither may legally remarry if that special someone comes along. In my experience with legal separations one party or both almost always later decide that they want a full divorce with more paperwork that must be submitted to the court to convert the legal separation to a divorce, resulting in more time and expense.
So, if you want to same time and money, and you know you’re headed for a divorce anyway, just start off filing for the divorce in the first place. If you honestly believe the marriage can be saved and you just need time apart, then a legal separation maybe the best course of action.
DiscountDivorcePro.com
It is a common misconception that some people have that a legal separation is a shortcut to ending a marriage in Arizona. The practical truth is that legal separations can take just as much time, effort and resources as a divorce. That's because they involve pretty much identical issues as divorces --property division, debt division, child custody, visitation, child support, alimony, etc. Legal separations can end up going to a full-on trial, not to mention temporary evidentiary hearings prior to trial. Thus, if you're looking for a shortcut, a legal separation may not be the answer.
Furthermore, legal separations end with you still being officially married. Although everything has been divided up, you remain married, meaning that neither may legally remarry if that special someone comes along. In my experience with legal separations one party or both almost always later decide that they want a full divorce with more paperwork that must be submitted to the court to convert the legal separation to a divorce, resulting in more time and expense.
So, if you want to same time and money, and you know you’re headed for a divorce anyway, just start off filing for the divorce in the first place. If you honestly believe the marriage can be saved and you just need time apart, then a legal separation maybe the best course of action.
Friday, February 1, 2008
Discloser Statement
By James Jennings
Sr. Paralegal
Discount Divorce Pro., LLC
Often when the other spouse files a Response with the Court, the judge assigned to the case will issue an Order to Appear for an Early Resolution Conferance or an Evidentiary Hearing. This is because the case is now considered contested.
When our clinet's show us these Orders to Appear oftentimes they will state that discloser and Discloser Statements must be completed within 5 days and exchanged with the other party prior to the hearing date. Also, it is not uncommon that the judge will also want a Resolution Statement, List of Witness & Ehibits, and a Certificate of Readiness to filed along with the Discloser Statement.
If children are involved, the judge will also want a Parenting Plan for Child Custody and Vistiation, and a Parent's Worksheet for Child Support Amount.
So what is a Discloser Statment?
The Discloser Statement is a statement to the other party and the judge that tells what the factual basis for each claim or defense in a case is. It also tells the court and the other party what you are seeking, either money and/or an for a specific remedy. For example alimony, child support, child custody, half the equity in the home, etc.
Furthermore, a Discloser Statement also describes in detail to the everyone envolved which legal theories apply and why. It tells everyone exactly which laws and/or case law makes your case.
For example if you are seeking child support, in your Discloser Statement you would site Ariz.Rev.Stat. 25-320. This law tells the judge that child support should be calculated as per the states guidelines. It aslo tells everyone that the non-custodial parent should pay the custodial parnent child support because this is in the best interest of the child. That the non-custodial parent not only has an obligation to pay support for their children, but a duty.
Another example, if you wanted to show the court in a modification of child support hearing that the court no longer had jurisdiction to modify support because the child and both parents no longer resided in Arizona, then you would site McHale v. McHale, Ariz. Ct. App., 1 CA-CV 04-0022. Therefore, you could then maybe move the child support case to the state where you now reside. These are just a few expamples.
Also, a Discloser Statement tells everyone which witness are going to appear to help you make your case but also which exhibits you plan to show the court. If you do not disclose this information to the other party and the court in your Discloser Statement then you will not be allowed to present this information at your hearing. Which could have very serious repercussions.
For example if you were seeking alimony or child support, you would need to provide your W-2's or tax returns to show what your income was. If you do not list these as exhibits, then you may not be able to show them as proof.
So, where do you get a Discloser Statement?
Some people think you can go to the Self-Help Center or an online publication company and get these documents. Truth be told these types of places do not have these documents because of the complexities of the issues involved, these documents must be custom prepared. I highly recommend that you have a professional prepare these documents. These are very complicated documents with complicated procedure for preparing. They also require legal research which is a skill set most people do not have. I recommend getting someone that is well versed in family law and family procedure. We have prepared hundereds of these statements for clients over the years and have helped a great many people with these.
One final note. There are serious consequeses for the failure to prepare these documents as ordered by the court. The court can sanction, fine, and or have the other party get everything they are asking for if they prepare these documents and you do not. I have even seen the court dismiss the entire case if neither party files these documents.
So, if you receive and Order to Appear please contact us or an attorney immediately. Do not blow this off or wait until the day before your hearing to worry about this.
For more information visit: DiscountDivorcePro.com
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