SECRETS ABOUT DIVORCE

By Reed Allmand

 

WHAT DOES SPOUSAL SUPPORT INVOLVE?

- Either party can request spousal support- Spousal support depends on financial circumstances of each party- Length of marriage plays a huge role in spousal support

What is Alimony? 

- Alimony is periodic payments of future income of one spouse to another- Alimony is only awarded in limiting circumstances- Typically alimony is not granted for a period longer than 3 years

WHEN FILING FOR DIVORCE, CHILD CUSTODY IS BASED ON SEVERAL FACTORS INCLUDING:

- The financial and physical state of parent or guardian- The on bond between parent/child- The parent who has been primary caregiver of the child- The work schedule of parent- The future potential income of parent

 Visitation rights are based on needs of the child, parent schedule,

and living conditions of the parents. Child Support is based on several aspects such as: 

- The number of children and the percentage of net resources- The age of the child- Child care expenses for the child- The debts assumed by either party- Wage deductions 

PROPERTY DIVISION IN DIVORCES IS BASED ON:

- The nature of the property- Earning capacity of each spouse- Educational background of each parent- Which parent has primary child-rearing responsibility- Age and health of each spouse

 

Pro Se Divorces – Occur when individuals represent themselves in court

 

Alternate Dispute Resolutions – Bring parties together in a non-threatening environment to negotiate a resolution to their issues

 - Mediation – Meetings between both parties overseen by a neutral third party- Arbitration – Arbitrator is assigned to the case by the state to handle mediation- Collaborative Divorce – Both parties agree to resolve issues through collaboration, not in court

TYPES OF DIVORCES AVAILABLE IN TEXAS:

- Uncontested Divorce – Parties agree on all issues- Case can be finalized at the end of the 60-

day waiting period

-Contested Divorce – Parties do not agree on all issues- Case is decided by a judge or jury

 - Missing Spouse Divorce – Party does not know the whereabouts of spouse

- There is a 60-day waiting period for missing spouse divorces

 - Fault or No-Fault Divorces – Divorce based on personality conflicts and discord

 

THERE ARE NUMEROUS CONSEQUENCES TO NOT PAYING CHILD SUPPORT. EXAMPLES INCLUDE:

- Wage Assignment – Employers deduct wages from obligor’s paycheck- Enforcement Actions – Losing child privileges based on inability to pay child support - Attachment or Levy – Paying child support from obligor’s seized assets - Child Support Liens – Accruing interest on obligor’s personal assets - License Suspensions – Revoking state licenses- Federal Income Tax Intercepts – Collecting child support from income tax returns- Insurance Claims Intercepts – Intercept insurance claims to pay child support- Civil Contempt of Court – Obligor receives citation for not paying child support

HOW IS DEBT DIVIDED WHEN COUPLE’S DIVORCE?

- Debt can be paid off before filing for divorce- Parties can be mutually responsible for paying off debt- One party can pay more debt and receive more assets as compensation for debts

 Note: Certain Property is Exempt from Claims of

Creditors including: 

- Property designated as a couple’s homestead- Retirement Plans- Cash or surrender value of insurance policies

POSSIBLE DEBT SOLUTIONS INCLUDE:

- Debt consolidation - Combining debts so you only have one bill to pay each month.

- Debt settlement - Reducing debt amount with the agreement of both the debtor and the creditor.

- Forbearance - Repayment program set up by the lender to stop the foreclosure on a debtor’s home.

- Bankruptcy – Allows debtors to discharge most of their unsecured debt, but depends on the type of bankruptcy filed, as well as the financial state of the debtor.

The disadvantages of debt settlement include:

 

- Damages your credit

- Potential for a lawsuit

- Not all debts are eligible

- Tax Issues 

OTHER VIABLE ALTERNATIVES TO DEBT SETTLEMENT ARE:

- Voluntary Repossession- Selling Property- Deed-In-Lieu of Foreclosure

 

For homeowners, Mortgage Debt Settlement Options include:

 - Forbearance- Mortgage Modification- Short Pay or Short Finance- Modifying Your Current Mortgage- Deed in Lieu of Foreclosure- Short Sale- Friendly Foreclosure- Repurchased after Foreclosure

BANKRUPTCY IS A DEBT RELIEF OPTION

- Bankruptcy involves liquidating the debtor’s assets and relieving them of further liability- Bankruptcy helps create a fresh start for the debtor- Bankruptcy can help rebuild your credit- Honest, hardworking people file for bankruptcy; doing is NOT a reflection of character

HOW DO YOU KNOW WHEN TO FILE FOR BANKRUPTCY?

- File for Bankruptcy before you file for Divorce- You can file for joint bankruptcy- Debts couples fight over can be

wiped out by bankruptcy

- File for Bankruptcy before getting behind on your bills

- File before you default on your mortgage loan payments

- You could be charged late fees and incur more debt not paying bills on time

 

LIKE YOUR PHYSICAL HEALTHY, YOUR FINANCIAL HEALTH IS IMPORTANT. TO EVALUATE YOUR FINANCIAL HEALTH:

- Outline your financial situation

- Be real with yourself and your ability to pay your debt

- Look for ways to reduce spending

- Contact an expert to help with your debt 

BENEFITS AND DISADVANTAGES OF FILING FOR BANKRUPTCY

- Benefits Include: 

- Clear outstanding debt- No longer harassed by creditors- Start over building your credit- Have a fresh financial start

- Disadvantages Include:

 - Stigma attached with filing bankruptcy- You may lose your assets- Coping with lifestyle changes- Can be harder to get credit again

HOW CAN ALLMAND & LEE HELP ME?

- Allmand & Lee’s # 1 goal is to make sure clients benefit from their services- Allmand & Lee have over 20+ years in consumer bankruptcy cases- Allmand & Lee have helped many individuals and families find solid ground again- Allmand & Lee help good people through bad times to gain financial stability

 

Contact Allmand & Lee today at 214-884-4176