Divorce could Dissolve the Dodgers

The divorce of Frank & Jamie McCourt has become even more heated as the couple has mutually asserted that each of them doesn’t have enough money, and bills are piling up sky high. The Judge handling their divorce has indicated that if they continue to bicker about money, he may order that the asset they are arguing about, the Dodgers, will be sold.

Can the Judge actually do that? Can the Judge order that the Dodgers be sold to the highest bidder? Absolutely!

With the downward trend of the economy, more and more couples are fighting about debt rather than assets, and most property or assets are under water and have negative equity. Sometimes even when there is property with positive equity, the debts are so overwhelming that the property has to be sold to pay off the debt.

Family Courts and Judges have the power to order what is fair and equitable, and can make decisions on how property is to be valued, divided and distributed. They can make these decisions even to the lament of Dodgers fans.

It is unlikely that the Dodgers will actually be sold because of the divorce—but not because the Court or the Judge lacks the power to order it. It was likely a serious warning from the Judge to the McCourts to stop their bickering and focus on what is truly important so that the issues can be resolved.

You can read the LA Times article here: Judge in McCourts’ divorce case talks of Dodgers Sale




If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

 

Michigan launches Pilot Program: Lawyer-Free Divorces

The Michigan Supreme Court has authorized the launch of a new pilot program in Clinton and Gratiot County for an Informal Divorce proceeding for couples divorcing who cannot afford attorneys.

Judge Michelle Rick of Clinton County Circuit Court obtained approval for the pilot program, and will launch this new program for 3 years in both Clinton and Gratiot county. The program was developed in response to a growing number of individuals who were filing for divorce without attorneys, had very simple or uncomplicated issues to resolve in their divorce, and also significantly lacked funds to hire an attorney because they had no or low income. The majority of these couples did not own any property together, they did not have any pensions or retirement accounts, nor was there any domestic violence in their relationship. The majority of these couples had children, debt, and they completely lacked the financial means to hire an attorney because they were unemployed or at the poverty level.

The Informal Divorce pilot program will be an option for couples in Clinton and Gratiot County as long as they meet the criteria, which means that they have no income or very low income, they do not have any property together, they have minor children and there is no domestic violence. The couple getting divorced can elect to proceed under this new option, which includes meeting personally with the Judge in order to work out the issues in the divorce. The parties can opt out of this program at any time, or can be removed from the program if the program does not benefit their case.

The pilot program for Lawyer-Free Divorces was implemented to address the extreme financial distress of some couples filing for divorce, so that those couples are not lost in the system because they cannot afford legal counsel. The pilot program clearly recognizes the importance of having good legal counsel while going through a divorce, especially with minor children.

The Informal Divorce pilot program is anticipated to begin in Gratiot and Clinton County around September 1, 2010.

You can read the Detroit Free Press article here: 2 Michigan Counties will Test Informal Divorces


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

Should you draft your own Will?

A recent article in US News & World Report states that there is an increase of people handling their own estate planning by drafting their own Wills. There are a number of online resources to do this, and some people assume that by doing this online themselves, they will save themselves hundreds or thousands of dollars?

Is this actually a good, sound practice? Should people, with little or no knowledge of the law, draft their own Wills?

There are numerous problems that can arise when one takes on the task of drafting their own Will. First, each state’s law is different, and there are different legal terms and requirements for an authentic Will in each state. These requirements are not easily learned online. Second, if a mistake is made, or if a person drafts a Will without understanding the full effect of its language, there will be thousands of dollars spent fixing it afterwards. Third, and worse, you may draft your own Will and it may legally distribute your property exactly opposite of how you intended.

We have seen numerous tragic cases where people have either drafted Wills themselves, or used online tools to draft them, and in the end, the Wills have been declared invalid, or worse yet, they have transferred assets contrary to the person’s true intention.

Don’t take the risk of drafting your own Estate plan. At Fausone Bohn, we have attorneys who will provide a free consultation, and discuss a range of choices, options, and plans. Our estate planning is often conducted on a flat-fee basis, and the rates are affordable.

Let an attorney, who is skilled in the law, help you fully think through and understand what choices you have, and let them help you pick the best options for you. It is worth the peace of mind that you will receive when you know that your estate plan is drafted exactly how you want it.

You can read the US News & World Report article here: The Dangers of DIY Estate Planning


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

The Michael Douglas Lesson About Marital Property

Michael Douglas and his ex-wife Diandra Douglas divorced in 2000, but that was not the end of their saga. Diandra Douglas recently sued Michael Douglas in a New York court, alleging that her divorce agreement entitles her to profits & residuals from his new movie: “Wall Street: Money Never Sleeps.”

Diandra Douglas contends that the divorce agreement entitles her to one-half of any profits, royalties & residuals from any movies he did during their marriage. She contends that the new movie is a spin-off from the original “Wall Street” movie, made famous by Michael Douglas’s character, Gordon Gekko: “Greed is Good.”

Michael Douglas, on the other hand, contends that she is not entitled to anything from this new venture and that it is not marital property subject to the 50/50 split.

This particular dispute is a good example of why a person needs a skilled attorney while going through a divorce. In Michigan, all property and income earned during the marriage is considered to be marital property, subject to a 50/50 split. If certain income or property is marital, whether it is received during the marriage or after the divorce, it is to be shared equally.

A skilled divorce attorney will be careful in how marital property is defined, and should counsel their client on what type of possibilities may exist that would entitled that person to a share of profits or distributions even after the marriage, provided those profits and distributions resulted from marital property.

Every situation is unique and different, and in some cases, there will be a clear and defined ending point for those types of profit distributions. However, in other cases, such as the Douglas’s case, the line is not so clear or defined.

You can read the Boston Herald article here: Michael Douglas’ ex wants ‘Wall Street’ payday


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.

The Legal Separation of John & Elizabeth Edwards

A recent article on CBS News discussed the legal separation of John & Elizabeth Edwards. While they do not plan on divorcing in the near future, they are separated.

One common question that is often asked is whether or not Michigan has what is called a “legal separation,” allowing a married couple to legally separate, but still remain married.

The simple answer is yes, but the procedure is not so simple. Michigan has a legal action entitled “Separate Maintenance.” An action for “Separate Maintenance” is filed with the court just as a Divorce action is filed.

The process for a Separate Maintenance action is identical to that of a Divorce. In a Separate Maintenance action, just as in a Divorce action, the couple must decide on how they are going to distribute their assets, share their debt, determine child support & spousal support, and also address how assets are purchased and debt is acquired in the future.

At the end of a Separate Maintenance action, a Judgment of Separate Maintenance is entered with the Court, and the couple is officially legally separated, meaning that all property and debt has been divided, but the party is still legally married.

Why would a couple proceed with a Separate Maintenance action instead of a Divorce? The most common reasons are religious and medical. Some people opt for a Separate Maintenance action because divorce is frowned upon or prohibited in their religion. Some people truly need the medical insurance of their spouse and cannot obtain insurance on their own. For these people, they essentially become “divorced” but still remain married.

What happens if you go through the entire Separate Maintenance action and then decide later that you want to become divorced? You have to file a Divorce action with the court and start from the beginning again.

Separate Maintenance actions are not very common in Michigan, but it is the only legal avenue in Michigan that allows a couple to split all assets, share all debt, live independently, but still remain married. It is the only way for a couple to become legally separated.

You can read the CBS News article here: Elizabeth Edwards: No Divorce from John Planned


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.