Why You Should Use Mediation

Mediation is a common process used in the Family Courts system in Texas.  It involves having a neutral third party meet with the two sides and their attorneys.  In North Texas, we use mediation in most Family Law issues.  Here's why.

1.  It's effective.  Probably close to 90-95% of cases mediate will settle.  That means that the parties finally figured out a way to compromise and resolve a case before trial.  Mediation facilitates that.

2.  Mediation saves time and money.  It is much quicker and cheaper than going to trial.  Normally, mediation will take place weeks or months before a trial date.  It is much easier to find a good mediator who has time available than it is to find an open setting date on a court's docket.  Mediation also normally takes less preparation than a trial, so that saves money as well.

3.  You and your spouse (or other party) control the outcome.  Most people find that preferable to letting the judge make the decision.  A judge's decision usually makes both parties unhappy.  Your choice is to make your own decision or turn it over to the judge who doesn't know you and probably doesn't care about you.

4.  Most local judges require it.  Because the court dockets are so crowded, most judges require the parties to go to mediation before they can go to trial.  Sometimes, judges want mediation even before a trial date is set.  The reasons:  mediation works and it saves time and money.  Pretty simple.

5.  Mediation is a safe, private and peaceful process.  The discussions are confidential.  A mediator manages the process.  In North Texas, most of the time, the parties are not in the same room.  Peaceful solutions can be found in the mediation process.

Why mediate?  Judges don't have time to hear everything, and the process produces good results.  It's not 100% effective, but it generally beats going to trial.

Thinking Ahead

It's the time of the year when many people are holding back on making a decision they really want to make.  They are putting off filing for divorce until after the holidays. Nevertheless, they are still thinking about their options.  If you find yourself considering the possibility of divorce, here are some things to think about until the holidays are past.

1.  Counseling.  It's never too late.  Sometimes counseling for you will help alleviate the problems and stress.  Sometimes couples counseling works, if both sides are willing.  Sometimes the party who needs counseling won't recognize it.  If you think it's your spouse who needs counseling, please consult with a counselor to discuss the situation.

2.  If you are going to divorce, there are a number of process options.  For a current review, see my blog post in the Texas Collaborative Law Blog here for the December 22, 2012 post.

3.  What issues will come up in a divorce?  Here are some to think about:

• Investments
• Retirement funds
• Real estate
• Debts
• Taxes
• Businesses owned by the parties
• Professional careers
• Personal property
• Collections
• Guns
• Household furniture and furnishings
• Child custody
• Visitation
• Child support
• Pets
• Alimony
• Insurance

These are issues that you should start thinking about if you are considering or facing a divorce.  Your attorney will discuss them with you.  It would also be helpful for you to gather any documents that you can find that relate to any of the issues.  That will help you and your attorney prepare for a settlement or court.  It's also a good idea to gather and copy records before they disappear in the confusion once a divorce is filed.

Watch Out for the Side Effects!

I just read about a new App for a smartphone this morning.  This App was developed in California to help people figure out how to divide up their property as they go through a divorce.  It's really intended to replace an attorney's role in the process.

As admirable as that may seem, there is a great potential for creating major problems in some cases.

Full disclosure:  I am a divorce attorney and I am paid to help people undo their marriages.  But, the people who are wanting to do their own divorces don't want to hire me or any other attorney, so their decision has no real effect on me.  I'm not losing any business because they wouldn't have hired me anyway.  I do think people in short-term marriages, with no kids and little or no property, can probably do their own divorces, if they are so inclined.

This post is not to save business for me.   I am writing this so that people with children or some significant assets or debts can make better decisions on the best course of action for themselves.

Here are some possible side effects for an untrained person using some tools and trying to work out their own divorce.

1.  Tax consequences.  No one likes surprises from the IRS.  Unfortunately, tax issues are lurking everywhere in divorces.  Paying the other spouse some money may be alimony or it could be property division.  There can be taxes owed if it's not done right.  Different retirement assets have different tax consequences which can also affect the net value of those assets.  Real estate sales may trigger capital gains taxes, now or in the future, and that may affect the net value of the land. The parties need to consider their tax basis in various investments when they are doing a property division.  Tax consequences probably won't be much of an issue if someone doesn't have any of these assets.

2.  Enforceability.  In divorces, it's not uncommon for disputes to break out post-divorce about whether agreements are being followed.  The terms of the divorce decree must be clearly spelled out with proper language in order for them to be enforced.  In many cases, there needs to be some collateral or something available as a back-up. Again, if there are no significant assets, this is probably not an issue, although people will fight over anything, as you probably already know.

3.  Extra paperwork.  Many people assume a judge will simply divide everything in half.  That's one way to divide things, but it rarely happens in court.  People can decide to agree on their own to do that, but it may cause a lot of extra paperwork to complete the divisions.  There are often simpler ways to do the property division, which can be handled by an experienced attorney, but which a private party may know nothing about.  Extra paperwork means more opportunities to mess things up.

4.  Remaining connected.  As badly as one or both parties may want to be divorced and separate and independent individuals, they may end up connected for a long time due to property or debt issues that are joint.  An experienced attorney may be able to help them come up with ways to be apart.  Doing things on their own, the parties may end up still connected.

5.  Incompleteness.  Maybe the most common problem for people doing their own divorces is the failure to take all the necessary steps.  Forms may be incomplete.  Language in the decree may be incomplete.  And sometimes there are some obvious  problems that are overlooked.  Once again, with no kids and with little or no property, there may not be a problem.  Otherwise, count on problems.

These are not all the problems that can occur when people decide to do their divorce without an attorney.  In very simple cases that may be fine.  In all others, it is risky.  In addition, it is common for one party to take advantage of their spouse when the party has greater knowledge, experience and control.  Divorce is such an important event, it shouldn't be done without a lot of thought and help.

Footnote:  Each state has different divorce laws which can affect the outcome of the case.  Using California, New York or even Oklahoma law for a Texas divorce is virtually guaranteed to be a disaster.

5 Top Myths about Litigation

I often run into a client or potential client who seems unreasonably confident about the outcome of his or her divorce case.  The reason usually is that they have heard and believed some common myths about how the divorce litigation system works.  At the risk of damaging some happy feelings, I find it's necessary to expose some of the worst myths.  Better to be disappointed now than to continue to count on something that will never happen!

1.  The Court will figure out/discover the "truth".  Unspoken is the assumption that the truth found by the Court will be the same one believed in by the party.  In reality, Courts often find facts to be different from what one or both of the parties believe, or a Court may decide it hasn't been convinced by sufficient evidence one way or the other.  Truth is usually in the eye of the beholder, and Courts very often disagree with the parties about what the truth is.  What is obvious to a party may be completely invisible to a Judge, so don't count on a Judge automatically agreeing with your view of the truth.

2.  Justice will prevail.  Just like with truth, there is no universal, indisputable "justice".  Don't assume that a Judge's decision will coincide with your view of justice.

3.  The Court will divide everything 50-50.  There's nothing in the law that requires a 50-50 split of property or debts.  The Family Code calls for a division that is "just and right", a  standard equally as vague and undefined as "justice".  The Judge actually has a lot of discretion about how things are to be divided.  There is no concrete, black-and-white answer.

4.  The easiest solution is to just go to court.  HA!  There's a lot of preparation for both sides and you can expect to wait many months for your day in court.  Settlement, while sometimes emotionally difficult, is much better than preparing and going to court.

5.  I know what will happen because of what happened in my sister's (or best friend's or neighbor's or hair dresser's, etc.) case. No two cases are alike.  The facts are different and the cases are probably in different courts, with different parties, different attorneys and different issues.  Don't assume that what worked for someone else will work for you.

So, what can you do if you can't rely on these handy my?  Talk with an attorney and get some qualified advice.  Follow your attorney's advice.  Do yourself a favor.

How to Pay for an Attorney

One of the basic issues for someone needing an attorney is how to pay for one.  For some people, it's not really a concern.  For others, it may seem insurmountable.  Keep in mind that courts don't appoint attorneys to represent parties in divorces and most family law cases.  If you want a pro bono attorney, you pretty much have to meet very strict guidelines on income and assets and then find a Legal Aid office or clinic that can take you on.  Legal Aid is normally overextended and underfunded.  They do great work with limited resources, but they can't help very many.  That means  you are probably on your own.  You should probably assume that you won't get a free lawyer.

As you may know, attorneys charge different rates, retainers and total fees.  Some charge flat fees, but most charge hourly.  You should check around to find a financial arrangement that is affordable for you.  The more experienced attorneys charge more, but even a less-experienced attorney is usually a valuable help for you.

Where to find the money:  Attorneys know that the following are some potential sources of funds to pay attorney's fees:

• Cash, from a stash.  Some people do keep a private sum of cash hidden for a rainy day.  Divorces qualify as a rainy day, so that cash can be put to good use, if there is any cash.
• Money from a joint account.  Unless there is a court order prohibiting removing money for attorney's fees, joint accounts may fund you to get started.
• Assets that can be sold.  Be careful about selling things.  Your attorney can tell you whether it is a good idea in your case.
• Getting a loan from somewhere.  If you have good credit, that might be a possibility.
• Family help.  That's usually a good source, although it might run out.  Family members can usually see the importance of helping.
• Credit card.  Most attorneys will be happy to take a charge on a credit card in your name.
• Contribution by your spouse.  You might be able to ask a court to order your spouse to pay some or all of your fees.  The likelihood of this happening increases when you are able to point out cash or an asset that be used to produce the attorney fee needed.  On the other hand, without a ready source for the payment, it is unlikely that a court will order a payment.

Try to be creative and come up with a unique source for your case.

How to Decide Which Family Law Attorney to Hire

Once you have made the decision to hire an attorney, you need to look around to find out who is available.  There are many attorneys and there are many different personalities and approaches to handling a family law case.  How do you decide who to hire?  Here's how you move forward in your quest.

Where to find attorneys.

• Get references or referrals from friends, relatives, other lawyers or any other professionals you know.  It helps to get some information from someone who knows or knows of the attorney, but even a glowing report doesn't mean a good fit for you. Ask for some recommendations from someone who knows one or more family lawyers, and then investigate.
• Check on line.  There's lots of information you can find by doing searches on line.  If you don't know how to do it, get someone to help you.  You can get lists of attorneys, reviews of attorneys, web sites and writing (such as blogs) to help inform you about the attorneys.  Read what you can about each attorney to get a feel for their approach.

What to look for in attorneys.

• Experience.  The more complicated the case, the greater the value of experience.  You can decide how much experience is needed for your case.
• Expertise. Some attorneys are Board Certified Specialists.  That means that they have met rigorous standards of the State Bar.  The requirements include a significant caseload of family law cases, involving a wide variety of issues and extensive involvement with various  courts.  It also requires much more continuing legal education than most attorneys get and it includes a requirement of passing an extremely difficult test.  After becoming Board Certified Specialists, the attorneys must maintain a significant practice in the area and continue the education requirements.
• Meeting and exceeding the continuing education requirement of the State Bar.  The law changes and attorneys need to keep up with the changes and find ways to practice more effectively.  Generally, attorneys who attend a lot of continuing legal education will be up-to-date and will have new and creative ways to help their clients.
• Convenient location. Location may or may not matter to you.  For some people, they want a lawyer close to home.  For others, the location doesn't matter.  You can decide how important it is for you.
• Compatible personality.  This may be the most important difference-maker for many people.  There are many highly-qualified, experienced and well-trained attorneys around.  Choosing between them may come down to a matter of personality.  Talk with more than one and decide who you feel more comfortable with.

 With all of the above in mind, hopefully you can find an attorney who fits your needs.  If not, keep looking!


 

Do I Need to Hire an Attorney for my Divorce?

Divorce is rarely easy or pleasant.  In most cases, trying to get divorced without an attorney is harder or has a worse outcome.  Lawyers can be expensive, but not having one when you need one is potentially FAR more expensive.

Here's a brief answer to the headline question.

When You Need a Divorce Lawyer:

• When you have kids.  Some of the worst post-divorce headaches come from disputes over the children.  Child support needs to be calculated correctly and ordered precisely so that the obligation is clear and enforceable.  Visitation/possession periods need to be clear and specific.  General language won't be enforceable and vague language will lead to disputes.
• When one spouse is domineering.  That can be physically, emotionally, or financially.  Where one spouse can demand and get whatever he or she wants, the other spouse needs a lawyer to help equalize the power in the negotiations.
• When there are assets or liabilities.  Normally, there will be assets and liabilities that have to be divided between the parties.  The division is not automatically 50-50.  It can significantly favor one party over the other if there is a big difference in income or income earning potential, or if a party has health issues, or if any of a number of other factors exist.  Plus, some assets are overlooked if the parties don't have legal experience or understand how the law applies to their situation.

When You Don't Need a Divorce Lawyer:

• When you have a very short marriage.
• When there are no assets, liabilities or children.

Those circumstances are rare in divorce cases.  Usually, people stay together long enough to acquire things or children before deciding to pull the plug.

The bottom line is that you almost always need a divorce lawyer, if you want to get things done right.

The answer to the title question is -- Yes!

What If You Don't Really Want a Divorce?

Just like it takes two to tango, it takes two to have a marriage.  If one person wants out of a marriage, the other one can't really prevent a divorce.  Both parties have to be committed to keep a marriage together. 

It often happens that one spouse decides to seek a divorce before the other spouse is even aware of that possibility.  People frequently think through their marital problems and come to the conclusion or realization that a divorce is what they want, all without involving their spouse in the deliberations.

The result is that one party is often surprised and unprepared for a divorce.  That party also often wants to try to preserve the marriage.  If you find yourself in that position, here are some things to think about.

1.  Get some counseling with a good professional counselor.  Look within yourself and your marriage.  Do you really not want a divorce?  Is it possible, after the shock wears off, that you also might be better off ending the marriage?  Have you overlooked the signs of discontent or problems in the relationship?  How committed is your spouse to the divorce?  Try to review the situation as objectively as you can, but depend on help from a good counselor.  This is not something you should try to deal with on your own.

2.  Is your marriage past the point of no return?  If you want to save the marriage, don't burn the bridges by your reaction to your spouse. You need to figure out if there's still something valuable to salvage and build upon.  If you spouse is having an affair or living with someone, the odds are that you can't resurrect the marriage.  Be realistic.  If your spouse has hurt you financially, emotionally or physically, it may be best to cut the ties.

3.  If you want to preserve the marriage, here are some ideas. 

• Recognize that divorce is inevitable, if either one of you wants it.  You may be able to slow it down, but you really can't stop it, if your spouse is persistent.
• Don't burn your bridges.  Be nice to your spouse.  Being mean or destructive is not going to win back your spouse. You may have to work on the divorce while you are trying to get your spouse to reconsider.
• Be fair to yourself.  Don't rollover in a settlement.  Giving your spouse everything, or most things, will not win him or her back.  That strategy just doesn't work.  Don't give away the farm.  I have seen that happen and then the other spouse still goes through with the divorce.
• Make it clear that the door is open and you're willing to work on issues, if your spouse is.  It must be a two-way street.  Your spouse has grievances against you, at least some of which are legitimate, and you will also have grievances against your spouse, at least some of which are legitimate.  If your spouse takes the position that you must unilaterally make all the changes, that's not going to work and you won't like the outcome.

Reconciling is a huge up-hill battle.  Don't expect an easy or smooth trip.  Be prepared to invest a lot of emotion and effort and even then, it may not work. 

Beware:

• If your spouse says it's all your fault.
• If your spouse has acted dishonestly.  Or,
• If your spouse demands a deal very unfavorable to you, before he/she will talk with you.

If any of those situations occur, go see a divorce lawyer.

Divorce Over 50: Checklist of Financial Issues

For various reasons, many Baby Boomers seem to be facing divorces even after long marriages.  Sometimes both parties reach the point where they want to end their marriage.  Other times, it's one spouse or the other who takes the lead in deciding to divorce.  Even if just one spouse wants the divorce, in Texas the divorce will ultimately be granted if that spouse persists.

Whether divorce represents welcome relief or a distasteful experience that can't be avoided, both parties need to prepare.  The following is a list of financial issues that come up in most divorces after long-term or later-in-life marriages.

1.  Planning for Retirement.  While not everyone has a retirement plan or assets set aside for retirement, it should be a concern for everyone over 40.  The degree of urgency may vary, depending on how far away from retirement each party is.  The tax aspects must also be considered for each type of asset.  Preparing a future budget and working with a financial advisor will be helpful.

2.  Planning for Transition.  This is the transition from being married to single and also may include the transition from working to retirement.  Very often, one spouse has stayed home to take care of children.  That spouse may need some time to get back in the job market and get hired, and may need some education.  Our economy is not yet back to full speed, so finding a job is not as simple as it was a few years ago.  That means that support may need to be a component of the settlement.

3.  Dealing with Health Issues.  Being part of an older age group naturally means that there will be health concerns.  Additionally, health insurance will have to be provided for.  Health issues can affect whether one or both spouses are able to be employed.

4.  Making Living Arrangements.  The divorce may be coming at a time when the parties might have been downsizing anyway, but selling a house is often part of the discussion.  One or both parties may have to find suitable and affordable housing.

5.  Taking Care of Children.  Depending on the children's ages, there may be private school, tutors, college or other education-related expenses.  Then  there's extra-curricular activities.  They have to be coordinated and paid for.  If the children are young, child support and visitation will have to be resolved.

6.  Separating Credit.  Often, one spouse has a better credit record or more income and the credit purchases have been made primarily in that spouse's name.  Joint credit cards need to be separated.  Some debts might be paid off, or they may be allocated in the property division.  A spouse might need to set up some new separate credit cards or accounts while they are still married and there is joint credit to qualify for the accounts.

7.  Managing Debt.  The  parties both need to prepare budgets for the interim while they get divorced and for their post-divorce lives.  Splitting debt 50-50 doesn't make sense if one person has very little earning potential and the other one has high earnings.  The parties need to be realistic.

8.  Allocating Investments.  Each party will probably want or need some investments, if there are some.  They should carefully evaluate the level of risk with each investment.  The parties also need to consider whether the investments promise short-term income or long-term value, and try to fit the investments with each party's needs.  Another factor to consider is how capable each party is to manage the assets.

9.  Updating Financial Planning.  Everyone should have a will and the wills have to be revised after divorce.  Other instruments, such as trusts, insurance, retirement assets, stocks and bonds, real estate and other investments will need to be revised or reconsidered.  You should work with a financial planner who helps people going through divorces.

10.  Providing for Legal Fees.  Since you will be going through a divorce, you will need a divorce lawyer.  Unfortunately, sometimes one party will try to prevent their spouse from hiring a lawyer.  Even in the most agreeable divorces, each side should have their own attorney to review the situation and advise the client.  One way or another, there's usually money available in assets, bank accounts or credit cards that can be used to hire an attorney.  Don't let your spouse talk you out of it.

Most people do a little research and think about the issues before they go see a lawyer about  a divorce.  This list will give you a starting point.  There are probably some issues not covered that may come up in your case.  Be prepared to discuss these and other issues with your lawyer at your first meeting.  Good luck!

It's Not Too Early to Plan for the Holidays!

Even though Thanksgiving and the holiday season seem a long ways off, you could make things a lot easier for yourself and your kids if you start thinking and planning for the end of the year now.  If there's any travel involved, you need to be getting tickets or arranging time off or taking care of various other details.  You will need to coordinate with your ex and it should be easier to do it now without the time pressure of being nearer to the holidays. It's also easier if your ex hasn't put his/her plans in stone yet.  You  would also have time to get reduced fares and to grab the time off before others at work claim it.

Here are some things to think about:

1.  Look at the schedule. Make sure you even need to have a discussion, before you get started.   In Texas, we have a standard possession schedule that covers the holidays.  Start off by looking at the specific language of your court order.  You and your ex can agree to change the schedule, but neither can force the other to do so.  It's better to find out now if you or your ex needs a change.  There's still time to get things done.

2.  Talk or email or text (politely) with your ex.  Don't demand or threaten.  If you don't need a favor now, you will need one later.  Don't burn your bridges by being unreasonable.

3.  Be clear and specific with what you need.  Beating around the bush wastes everyone's time.  What you want to do may not be too difficult, especially if your ex needs you to change something.  Spell out exactly what change you need.  Be clear so you can have a clear discussion and understanding.

4.  Listen to the other side.  Your ex may not be able to agree or may not be able to do all that you request.  If that is the response, you might discuss other options.  Always have a Plan B.  Your ex may have good reasons for not agreeing to what you request, but maybe you can still come to some agreement.

5.  Follow the Golden Rule.  Be willing to compromise.  You may need a big favor next year.  Until the last child is out and married, and maybe even after that, you need to keep a decent relationship with your ex.  You will be dealing with your kids for a long time, so don't be enemies with your ex.

So, be nice, be prepared and start early!