Year: 2020

Parents sometimes file for divorce the summer that the last child moves out and goes to college, gets married or just gets their own place. This can lead to an assumption by the children that the parents only stayed together for their sake.

Many parents do engage in this practice. They are done with the relationship. It’s no longer romantic. But they agree to essentially be roommates until the children grow up so as to avoid harming their development by getting divorced. Is this smart?

The answer is complex. Divorce is often difficult for kids in the short-term. They may not have understood that their parents are unhappy, they’re confused by the loss of structure and consistency in their lives and they don’t know exactly what it all means. This can feel like doing “harm” to the children, which is what parents want to avoid.

If you look at the long-term outcome, though, an unhappy home is often more damaging to children than a divorce. Parents who fight and argue can stress the children out. Even when it’s just clear that the parents are not happy together, it can make children uneasy and concerned. In these cases, it is often better for the children when the parents get divorced because those single parents are now happier and able to focus more fully on their children’s happiness. This can reduce the children’s stress, and they will adjust to the routine and lifestyle changes over time.

At the end of the day, if you do decide to get divorced, just make sure you know what rights you have and how to put the children first.

Couples who have focused on building a financial future while married might have amassed stocks, investments, retirement accounts and income properties. Additionally, it is not uncommon for a married couple to either create a business together or cooperate to ensure a business’s growth and prosperity. When divorce becomes a reality, unfortunately, the family business must be accurately valued before it can be divided between the divorcing couple.

How is the business valued?

There are numerous methods for calculating the value of a business. Two of the most common methods include:

• Book value method: This is largely a calculation based on the business’s books. In broader strokes, the book value method examines the original cost of the asset minus the depreciation of the asset plus any increase due to market fluctuations.
• Market approach of valuation: Essentially, the market approach is just that. The valuation is based on what an outside buyer would pay for the business.

Other methods can include liquidation value method, earnings multiplier and the times revenue method.

The date of the valuation is critical

While it might not seem at first that the date of the business valuation is that crucial, it is a quite significant point in the overall calculation. Depending on numerous complex factors, it is not uncommon for a divorce to take months or years to reach a conclusion. If the business valuation is completed at the beginning of the process, the business might hold a different value years later.

It is important to work with an experienced family law attorney who can answer your questions and provide the legal guidance you need.

With so much going on before your wedding day, it’s easy to overlook the importance of considering the creation of a prenuptial agreement.

However, if you find time to discuss this with your partner before you tie the knot, you may each come to realize that a prenup can benefit you both.

A prenuptial agreement can protect you in many ways, including the following:

• Assets you bring into the marriage: If you’re bringing valuable assets into the marriage, such as an inheritance, you may want to keep it separate from your spouse. Doing so allows it to avoid division in the event of a divorce.
• Protect you from debt: If your soon to be spouse is buried in debt, such as that related to credit cards, you don’t want to be responsible for paying it back should you divorce.
• Protect children from another relationship: Just because you’re getting married doesn’t mean you don’t have a past. If you have children from a past relationship, you need to protect them. You can use a prenuptial agreement to do so, such as by outlining their inheritance rights.

Once you fully understand how a prenuptial agreement can protect you, it’s easier to discuss this with your partner and decide together if it’s the right choice for the two of you.

A prenuptial agreement isn’t right for every couple, but you’ll never know for sure until you have an honest conversation about the pros and cons. If you’re both on board, learn more about the process and how to ensure that your prenuptial agreement is valid.