Wednesday, October 23, 2013

REPOST: Prenuptial Agreements Are on the Rise, And More Women Are Requesting Them

With people's financial capacities continuously improving, the risk of sharing them in a divorce also escalates. Hence, more and more people are now marrying with a prenup to protect their assets.


Image source: huffingtonpost.com

If you think prenups are just for celebrities or the super wealthy, think again.

According to a new survey of the American Academy of Matrimonial Lawyers (AAML), 63 percent of divorce attorneys say they've seen an increase in prenuptial agreements during the past three years. What's more, 46 percent noted an increase in the number of women initiating requests for prenups.

Alton Abramowitz, the president of the AAML and a HuffPost Divorce blogger, said the trend may reflect the current state of the economy.

“As the financial and real estate markets continue to improve, there is a greater awareness of risk to possibly sharing these gains in a divorce,” Abramowitz said in a press release. “The trend of divorcing spouses fighting over which one has to take possession of a devalued home and other depreciated assets appears to be coming to an end.”

The lawyers polled said the top three items most commonly covered in prenups over the last three years are the protection of separate property, alimony/spousal maintenance and division of property.

It's not the first time a survey has indicated that Americans are increasingly accepting of prenuptial agreements. A 2010 Harris Interactive poll revealed that 44 percent of singles and 49 percent of divorced people said they thought having a prenup was a good idea. Meanwhile, 15 percent of divorced people said they regretted not having one.


Recognized as the oldest and largest family law firm in Santa Monica, California, Kelly, Fernandez & Karney houses more than 20 staff members and six attorneys, and has over 100 years of collective experience in family law. For inquiries, visit this website.

Monday, September 23, 2013

REPOST: Same-sex marriage needs same-sex divorce

With an increasing number of states legalizing same-sex marriage, it almost seems like that natural next step would be same-sex divorce.  This post on Salon.com features an excerpt from the Margaret Klaw book, "Keeping It Civil: The Case of the Pre-nup and the Porsche & Other True Accounts from the Files of a Family Lawyer," which gives insight into the relationship between marriage and the law.

Same-sex marriage needs same-sex divorce
Image source: Salon.com via Shutterstock
The other day, a woman who wants a divorce called me. Which initially sounded fine, since that’s what I do. But upon further discussion, it turned out not to be fine. It turned out that I can’t get her divorced, and neither can anyone else. She’s stuck in a marriage that she and her spouse both want to end, with no feasible way out.
Sound like the eighteenth century? Or Saudi Arabia, perhaps? To the contrary, this woman suffers from a thoroughly modern problem. The problem is that her spouse is a wife, not a husband. This woman married her partner in Vermont—picture the quaint inn, the rolling green hills dotted with black-and-white cows, the wedding package so appealing to same-sex couples in that most progressive state of all—and after the wedding, they packed up and drove back home to Philly. Therein lies the problem. Pennsylvania does not recognize their marriage as valid, thanks to our state’s version of the federal Defense of Marriage Act. Not only does this law, passed by a group of homophobic legislators in Harrisburg back in 1996, prohibit same-sex marriage here, it also provides that such a marriage entered into in another state is “void in this Commonwealth.” And if Pennsylvania doesn’t recognize you as being married in the first place, its courts have no authority to divorce you.
You’d think I would just tell my would-be client to go back to Vermont to get divorced. But she can’t. Because although Vermont welcomes nonresidents into the state to marry, the opposite is true when it comes to divorce: You have to live there. And this is not unique to Vermont; it’s the case across the country. There is no state that requires residency as a prerequisite for a marriage license. You can drive to Vegas from anywhere at all and get married in the Elvis Chapel. Which is why gay and lesbian couples have flooded into Vermont and Massachusetts and New Hampshire and the rest of the states where they can legally marry—for the weekend, that is. Like Vermont, however, all states currently require that at least one spouse be a resident in order to file for divorce. While “residency” is defined differently by different states, it always means that at least one of the spouses has to live there for some defined period of time (in the case of Vermont, for six months) before a divorce complaint can be filed. I assume that the rationale behind these divorce residency requirements is that states don’t want to tie up their court systems adjudicating divorces for people who don’t actually live (or pay taxes) there.
What’s my would-be client to do? She’s stuck, unless she or her wife (a) move to a state that will recognize their marriage and (b) live there long enough to satisfy the residency requirement so they can file for divorce. And if they don’t do this and one of them wants to marry someone else? She can’t. Because she’s still married. The irony is overwhelming. Gay people are fighting so hard for marriage equality, and now, when some of those marriages don’t work out (what a surprise; they’re no different from straight people!), they also need to fight for the right to divorce.
So my Vermont-married, would-be client, and all those in similar circumstances, have no access to the courts to get divorced. The related, and far more common, would-be client is the unmarried gay person whose long-term, marriage-like relationship ends. Can he avail himself of the remedies available to married people under our divorce laws? Is she entitled to any assets or support from her ex?
That’s the question I was asked by Eddie, who’d been in a relationship for twenty-two years when his partner dumped him for another man. Older, educated, and successful, Marco, the ex, owned a house, investments, and a pension. Eddie had none of those. He was a high school graduate who essentially hadn’t worked since he moved in with Marco at the age of twenty-one. He dabbled in various artistic pursuits, none of them profitable. But that was okay, because Marco supported him and, according to Eddie, specifically, explicitly, told him that he always would. So Eddie enjoyed their comfortable, middle-class life together, and never took any measures to ensure his own financial security. When Marco ended the relationship, Eddie was faced with the hard reality that here he was, forty-three years old, with no money in the bank and no ability to earn much more than minimum wage. He came to me to find out if the promises Marco made could be enforced.
I looked into it and saw that the answer was a resounding maybe. It’s fairly uncharted territory in Pennsylvania. In addition to same-sex couples not having the protection of our divorce code, since they can neither marry here nor have their out-of-state marriages recognized, we have no civil-union or domestic-partnership laws either. Which is why my client Jorani was better off marrying her boyfriend, even with a restrictive prenuptial agreement, than simply continuing to live with him. What we’re left with is the common law, those basic legal principles brought over from England centuries ago. For Eddie, the common law principle on which we could hang our hat was the law of contracts. We would have to convince a judge that Eddie and Marco had made a contract that Marco breached, and as a result, Eddie was entitled to compensation. This would not be an easy task, since there was no written agreement. Our argument would be that the existence of a contract could be implied from Eddie’s and Marco’s words and actions.
Not surprisingly, Marco denied that he made any such promises to Eddie, and he downplayed the seriousness of the relationship, emphasizing both men’s admission to having had other sexual partners during the decades they lived together. At trial, Eddie testified about specific instances in which Marco told him he would provide for Eddie financially for the rest of his life, and we presented evidence of actions taken by Marco that would support that testimony, such as naming Eddie the beneficiary of his pension and his life insurance and providing for Eddie in his will.
A contract requires an offer and an acceptance. We argued to the judge that Marco offered to Eddie, by his verbal promises and by his conduct, which was consistent with those promises, that he would take care of Eddie forever. Eddie, we said, in order to provide companionship and domestic services to Marco, accepted that offer by not pursuing education or career opportunities. The tricky thing about this argument is we had to show that “companionship and domestic services” was really that, rather than sexual services, as the courts won’t enforce such a contract. Just like you can’t sue to enforce a drug deal gone bad or to recoup the amount you were shorted in an extortion scheme, you can’t look to the courts to enforce a contract for, essentially, prostitution.
There was little case law to rely on in Pennsylvania, but we found some very helpful decisions coming from our sister state across the Delaware River. The New Jersey Supreme Court, in a case involving an unmarried heterosexual couple (actually, one party, Mr. Roccamonte, was married, but to someone else, but the claim for support was brought against his estate after his death by his girlfriend, with whom he had lived for twenty-five years), held that “a general promise of support for life, broadly expressed, made by one party to the other with some form of consideration given by the other will suffice to form a contract.”
“Consideration” refers to what is given in exchange for a promise. If there’s no consideration, a promise just becomes a gift, and you can’t force someone to give you a gift. But if Mr. Roccamonte promised his girlfriend financial support in exchange for housekeeping services, and the housekeeping services were in fact performed by her, then there is consideration for his promise of support—called by the wonderful name “palimony” in New Jersey and in many other courts around the country—and he can be required to provide it. That is, so long as the consideration is not sex.
In the Roccamonte case, the New Jersey Supreme Court found that the plaintiff’s “making a home for the defendant, cooking for him, and acting as his social companion” was ample consideration in exchange for Mr. Roccamonte’s promise to support her for life. The court stated that the law of New Jersey was that “unmarried adult partners, even those who may be married to others, have the right to choose to cohabit together in a marital-like relationship, and that if one of those partners is induced to do so by a promise of support given her by the other, that promise will be enforced by the court.”
We loved the Roccamonte case. We briefed it thoroughly for the judge. Unfortunately, what the New Jersey Supreme Court rules is not binding on the courts of Pennsylvania; it’s merely illustrative. Given the dearth of law on the subject in our state, we asked the judge to look to New Jersey for guidance about how she should rule. Although we knew going in that it was a long shot, we were cautiously optimistic by the end of the trial. We felt that the judge had paid close attention to the testimony and seemed sympathetic to our client’s plight. I made our pitch during closing arguments, asking her to award Eddie $300,000, which was the amount Marco received from the sale of the house where he and Eddie had lived for twenty-two years and Eddie had come to think of as his own. We argued that this was a reasonable amount to fulfill the promise of lifetime support, as it would enable Eddie to buy his own house. The judge nodded as she listened. My associate and I packed up our files and went back to the office, chewed our nails, and waited for her decision.
It came two weeks later. We lost. We never got out of the starting gate. The judge ruled that she could not find there was a contract. We had not convinced her, by a preponderance of the evidence, that Marco had in fact promised to provide for Eddie financially. So she never reached the legal issues, although her opinion indicates that had she done so, she actually would have been persuaded by our arguments. Had she found that a contract existed, she would have relied on Roccamonte and other cases we cited from New Jersey, and she would have awarded money damages to Eddie. That’s encouraging and useful in the long march forward to make good law for gay people in Pennsylvania, but it was of no help to Eddie. My whole firm was devastated, and Eddie just couldn’t understand the result. It was so hard for him to accept that the judge believed Marco’s version of events and not his.
We keep in touch. Eddie stops by the office now and then. He’s working really hard at rebuilding his life, one step at a time. I can’t help thinking, though, how much better off he’d be now if he and Marco had been able to marry. It would have been a garden variety divorce. By my calculation, Eddie would have walked away with at least half a million dollars in assets and he’d surely be receiving alimony, and there would have been no threshold legal hurdle to jump over; he would have been entitled to those remedies.
It’s a great civil rights victory that at least some states have legalized same-sex marriage. But part of the benefit of marriage should be the legal protection afforded by divorce laws, based on our societal consensus that marriage is an economic partnership and that when it ends, what’s been accumulated together should be fairly divided, regardless of title, and a spouse who was dependent on the other spouse’s income during the marriage should be supported for some period of time afterward while he gets back on his feet. These are general principles embodied, to a greater or lesser degree, in the divorce laws of all fifty states. And if you are gay and have the misfortune to live in a state where you can’t marry, or where your out-of-state marriage isn’t recognized, you don’t qualify for these basic protections. You could get lucky and win a case like Eddie’s based on common-law contract principles, but it’s an expensive, uphill battle. It’s not the solution. Marriage equality won’t be complete without divorce equality.

Although California has had inconsistent laws regarding marriage equality, same-sex unions would benefit from the protection of a prenuptial agreement.  This Twitter account for Michael Kelly, one of the most seasoned divorce lawyers in the state, provides quick tips and more information about divorce-related matters.

Friday, August 30, 2013

Michael Kelly on YouTube

Michael Kelly is a lawyer at Kelly, Fernandez & Karney. He is a leading counsel on family law and divorce preparations, proceedings, and implications. http://www.youtube.com/watch?v=lsPtNT8vxY0



Youtube: Michael Kelly, Los Angeles Lawyer

Michael Kelly is a lawyer at Kelly, Fernandez & Karney. He is a leading counsel on family law and divorce preparations, proceedings, and implications.

Wednesday, August 28, 2013

Women and divorce: By the numbers

It may be a surprise to some, but it seems women file for divorce more often than men. A recent study highlighted that only one percent of women found themselves divorced in the 1920s, compared to 15 percent today.

Image Source: www.myjewishlearning.com

As early as 1867, the numbers on divorce filing rates indicate that women are initiating divorce proceedings 62 percent of the time. This nationwide statistic peaked at 70 percent in the 60s. Smaller samples in 1969 showed that in Iowa, 80 percent of filers are women, and this trend of women as plaintiffs in divorce proceedings continues to hover over 60 percent until today.


Image Source: www.i.huffpost.com

In modern times, women’s desire to break away from their marriages may be psychologically rewarding, but not as practical. Although women are quicker than men in emotional recovery, they tend to suffer more from the economic strains of divorce. In fact, research indicates that divorced men enjoy income growth, while divorced women endure a significant drop in the cash flow at home. A woman's standard of living takes a 73 percent dip after divorce, while men take in a 42 percent increase.

Image Source: www.b-i.forbesimg.com

This financial disparity is traced to child custody norms, which favor women. Men who are mandated to contribute to child support sometimes neglect the obligation. Figures show that the court is not where battles are won, as only 61 percent of those ordered to pay up actually do. The problem of inconsistent child support is persistent, but with the improving standard of wages in the country, it seems the trend of women ending their marriages will not cease. Equal opportunities for women may even push up the numbers, as the fairer sex can now secure better living standards for their children with better pay.

Divorce is a difficult process for both parties, but may put one at a greater disadvantage. Michael Kelly is a lawyer specializing in divorce and family law. Women in the Santa Monica, CA area can visit this website for information about how he and his firm handle divorce cases.

Sunday, August 11, 2013

"Party planners and manufacturers of party supplies are raking it in selling everything from “decapitated groom” cake toppers to black “just divorced” sashes to nights on the town complete with VIP club entrance and limo transportation."
—  TIME, The Booming Business of “Divorce Parties”

Friday, July 26, 2013

REPOST: Breadwinning Wives and Nervous Husbands

Richard Thaler’s article discusses the links between traditional gender views and the risk for divorce:
 
Image Source: nytimes.com
 
GIRLS are generally outperforming boys in high school, and then proceeding in greater numbers to attend and graduate from college. And as women take the helm as chief executives of more major corporations, including Hewlett-Packard, I.B.M. and PepsiCo, there are hints that the glass ceiling may be at least cracking, if not breaking.

Such developments should encourage aspiring young women to believe that social norms are changing, and that barriers to success are dropping. But a new study reveals that women’s gains on the economic front may be contributing to a decline in the formation and stability of marriages.

One reason for this decline may be that women with greater earning power have greater economic security that allows them to leave bad marriages. Yet another possibility is that many men seem to be clinging to a social norm from the “Mad Men” days: that the husband should be the primary earner in a family.

There is an obvious disconnect here. Those men who spent their teenage years goofing off and their college years drinking beer shouldn’t be surprised that women who consistently received higher grades and continued further in school might now be earning more money as well. But the evidence suggests that while men tend to applaud their spouses when they help to bring home the bacon, husbands aren’t always as enthusiastic when women start bringing home the filet mignon. And it’s especially troubling that these old-fashioned social norms about gender identity appear to be adversely affecting family formation and stability.

This is the finding of an interesting new paper by Marianne Bertrand, Emir Kamenica and Jessica Pan, three economists who are colleagues of mine at the University of Chicago’s Booth School of Business. They found that traditional views of gender identity, particularly the view that the right and proper role of the husband is to make more money than the wife, are affecting choices of whom to marry, how much to work, and even whether to stay married.

Suppose that both men and women are happier — all else being equal — the more money their spouse makes. In such a world, couples wouldn’t care whether the man or woman earns more, so the population of couples would have what we call a “normal distribution,” and would be captured in a bell-shaped curve. But that’s not what we see in the real-world data.

Instead, there is a sharp drop in the number of male-female couples at exactly the point where the woman starts to earn more than half of household income.

This finding supports earlier research from speed-dating sessions, which found that while women prefer men to be intelligent and ambitious, men have these preferences for women only to the point where women threaten to earn more than they do. These preferences appear to be reflected in whom people choose to marry and in how much women choose to work outside the home.

Women’s earnings have been rising relative to men’s over the past 40 years — though, on average, women’s pay still lags behind. One sign of change is seen in a recent study from Pew Research, which finds that mothers are providing more than half the income in 15 percent of married households with children at home, up from 3.5 percent in 1960. Given such trends, it’s logical that problems would arise if men kept their desire to be the primary breadwinners.

This may be one of many reasons that the share of young adults in marriages decreased 30 to 50 percent across various racial and ethnic groups from 1970 to 2008. Clearly, a choice to marry later in life explains part of this decline, but Ms. Bertrand and her co-authors estimate that the trend in the percentage of women making more than men explains almost one-fourth of the marriage rate’s decline in the 40 years ended in 2010.

What happens when a man marries a woman who has the education and skills to earn more than him? The couple can avoid violating the “man earns more” social norm if the woman works part time or leaves the labor force altogether. The authors found evidence of both choices. But what if the woman stays in the labor force and does earn more than her spouse? How does this affect the marriage? The findings here are striking. In such couples, surveys show, both wife and husband generally report being less happy about the marriage.

Given these findings, it isn’t surprising that when a wife earns more than her husband, the risk of divorce rises, too. To study this, the authors used a survey conducted in two waves, 1987-88 and 1992-93. (There were no more recent data available for this particular test.) Then they investigated the likelihood of a divorce in the five-year interval. For this sample, some 12 percent of all couples were divorced during this period — a sobering fact about the stability of marriages in general. But the divorce rate rose by half, to about 18 percent, for couples in which the wife earned more than the husband.

How to explain the jump? Some people might think that a wife who earns more will do fewer household chores than her tradition-bound mate expects. Regardless of your opinion about men who harbor such feelings, the facts rule out that explanation: women who earn more than their husbands actually do a greater share of household chores, compared with couples in which the wife works but earns less.

The paper’s findings support the anecdotal complaints of many highly educated, high-earning women who say they can’t find suitable husbands. And as women continue to outperform men in school, these problems are likely to grow. Perhaps over time, men will catch on to this new world and accept the fact that hard-working girls may well turn into highly paid women.

Until that realization sinks in, problems arising from tradition-bound notions of gender identity will keep taking a toll on our economy and our families. Employers, however, may have opportunities to help.
v For a variety of reasons, including the stubbornly persistent norm that women assume more than half the responsibility for raising children, many highly educated women would like to work part-time at a level commensurate with their skills. Businesses, however, have been slow to adapt, even as technology makes it much easier to do some or all of one’s work from home. I believe that there are substantial economic opportunities for companies that find ways to hire the millions of talented but underemployed mothers in our economy.

But now back to the notion of couples’ contentment: Is there any way to tell whether it’s the wife or the husband who becomes unhappy when the wife earns more? Does he think that she is threatening his manliness, or does she think that he’s a slacker?

That may be impossible to answer, partly because of something I learned long ago from Alvin E. Roth, a Nobel laureate in economics last year. I call it Roth’s rule: In equilibrium, it’s impossible for you to be happier than your spouse.

If you and your spouse both understand that rule, you’re both likely to be happier — regardless of how much money either of you make.
Atty. Michael Kelly is the current head of Kelly, Fernandez, and Karney, the oldest and largest family law firm in Santa Monica, California. Visit this website to learn how the firm manages clients’ divorce cases to ensure peaceable outcomes.