Author: redheadedlaw

Houston Child Support Lawyer

Written by redheadedlaw on August 28, 2012. Posted in Child Custody, Child Support, Divorce, Houston. No Comments on Houston Child Support Lawyer

Divorce is not an easy experience, but many people find themselves walking through this situation, nonetheless. In most cases, when two individuals get married, they do so with the best intentions of staying together. Life does have uncertainties, though, and sometimes a marriage unfortunately ends in divorce. More complications are definitely brought into the mix when children have been born to the couple.

Custody issues come into play, as well as visitation and child support arrangements. One of the parents may be named as the custodial parent. In Texas, this scenario is also referred to as a conservatorship. There are occasions when the court may determine that both parents will share joint custody of the children.

The needs of the children are a critical issue in the eyes of the legal system. It is deemed to be highly important that children of divorced parents should not do without food, clothing, schooling needs and recreation. Child support payments are generally paid by the non-custodial parent to the parent who has been decreed as the custodial parent.

There are occasions when the amount that has been ordered by the court to be paid needs to be re-evaluated. For example, if a father has been paying a large amount of money each month to provide for his children’s needs, but now his pay rate or his work hours have been permanently cut, he will probably want to contact a qualified Houston child support lawyer to seek a modification of the monthly amount.

Additionally, there are situations where the parent who has been ordered by the court to pay child support simply chooses to ignore the order. In such cases, rather than allow the children to suffer the results of lack and neglect, it is sometimes necessary for the custodial parent to obtain the assistance of a skilled attorney to ensure that the proper payments are received at the proper time each month.

There are a number of factors that make up the formula for determining child support amounts. Items such as the number of children involved, the amount of income each parent makes, and how much time the children are spending with each of the parents are taken into consideration by the court. There is no hard and fast rule, though, so it is important to seek the advice of an experienced Houston child support lawyer when circumstances arise concerning support for children of divorced or divorcing parents.

Closure on Marriage, Foreclosure on House

Written by redheadedlaw on August 22, 2012. Posted in Attorney, Debt, Divorce, Real Estate. No Comments on Closure on Marriage, Foreclosure on House

Original Article by Ronald Lipman for Chron.com

Q: I agreed to let my ex-wife have our home when we divorced. However, she recently let it fall into foreclosure, and now my credit is ruined. I was going to buy a new home, but the lender has pulled my funding. Now I can’t find a company to finance the purchase. Plus, I can’t find relief with credit companies to clear my name.

A: It’s too late now, but there was a way for you to have avoided the foreclosure altogether. You could have required your ex-wife to sign a “Deed of Trust to Secure Assumption” when you got divorced. That way, you would have been able to make the payments when she defaulted, and the home then would have belonged to you.

Of course, you would have had to monitor her mortgage payments to make sure she was keeping current. Typically, notices of non-payment are sent to the home-owner’s address. As soon as you found out that she was behind, you could have stepped in, made the payments, and taken the home from her.

Note, though, that even when a Deed of Trust to Secure Assumption exists, the unpaid mortgage payments are sometimes so large that the home still gets lost to foreclosure. In addition to the cash needed to make the delinquent mortgage payments, you would need to make all future mortgage payments, and pay for the upkeep, utilities, property taxes and insurance on the home.

The bottom line is that when you and your ex-wife bought the home and agreed to make payments to the lender, you did so jointly. The lender doesn’t care that you two got divorced. Even though the home was awarded to her, the lender was still looking to both of you for payment. You were both still jointly liable for all the payments that needed to be made on the note even after you divorced.

Her default unfortunately has ruined your credit for years, but there is nothing you can do to change what has happened.

Q: My mother died in 2011. Her house makes up virtually all of her estate, the total value of which is less than $500,000. Are capital gains taxes due when we sell the house?

A: When your mother died, the cost basis of the home was changed to the home’s fair market value on her date of death.

If you sell the home for less than that new cost basis, you won’t owe any capital gains taxes. If you sell it for more than the cost basis, you’ll owe capital gains taxes, but only on the increase in value from your mother’s date of death until the date of sale.

Houston Female Divorce Attorney

Written by redheadedlaw on August 3, 2012. Posted in Attorney, Divorce, Lawyer. No Comments on Houston Female Divorce Attorney

Choosing a Divorce Lawyer – Should You Choose a Male or Female Lawyer?

by Marivonne Essex, The Red Headed Lawyer

In the 27-plus years I have been practicing family law, I have on many occasions had a potential client tell me, “I chose to come to you because you are a woman. I want a female lawyer.” Often it will be a male client making this statement. The perception seems to be that as a female lawyer, you will be able to make the soon-to-be ex-wife “come to her senses” about the divorce issues. Or, if the judge is a female, the judge will be more likely to respond and be favorable to a female lawyer. Women who choose a lawyer because she is female seem to do so because they feel that a woman will better understand their concerns. Are these perceptions valid and what should go into deciding which lawyer to hire for your divorce?

First, the perception that a female lawyer will be better able to convince the other spouse of anything because she is female, and the perception that a female judge will be more favorable to a female lawyer are both totally false. These simply do not happen in the real world. The perception that a female lawyer will better understand the concerns of a female client may or may not have a grain of truth to it. It is true that many people relate better to those people who they perceive to have more in common with them. But there are always exceptions to this. I once had a client who was female who needed to attend counseling. She could not afford to pay the normal fees for a professional counselor so she went to one of the United Way agencies. The only counselor available was a male of a different race from her. She was skeptical that the counselor could relate to her enough to help her. After months of counseling, she ended up believing that the man had helped her more than anyone else in her life had.

If gender is not the primary reason upon which to base your choice of a lawyer, what should you use? There are two very important considerations when choosing a lawyer, aside from fees, of course. First, do you feel comfortable with this person? Are you able to relate your concerns to the lawyer, tell him or her what it is most important to you in the divorce action, tell him or her in detail everything about your case, both the good and the bad? Do you feel that the lawyer is listening and understanding your concerns and positions? Second, would you walk through fire with the person? Do you trust the lawyer that much? Because going through a divorce is often a walk through fire and you better trust without question the person who is holding your hand and leading you through that fire.

Yes, gender can be part of your decision, IF you feel you can relate to the lawyer better because he or she is the same gender as you. It is by no means the only reason to choose a lawyer.

5 Secrets To A Happy Marriage From Divorce

5 Secrets to a Happy Marriage: Revealed by Divorce

Written by redheadedlaw on July 30, 2012. Posted in Divorce, Marriage.

Original Article by Sarah B. Weir, Yahoo! blogger for Love + Sex

In 25 years of studying marriage, Dr. Terri Orbuch, research professor at the University of Michigan and author of the new book “Finding Love Again: 6 Simple Steps to a New and Happy Relationship,” has found that some of the best relationship advice comes from people who are actually divorced.

In 1986, Orbuch embarked on a long-term study, supported by the National Institutes of Health (NIH), which followed the relationships of 373 newlyweds. By 2012, 46% had divorced, about the same as the national average. In interviews with Orbuch, people who had divorced or ended a serious relationship over and over again brought up the same five issues that they would improve if they had the chance to do it all again.

Money. Over the course of her research, one the biggest surprises for Orbuch was the role money played in marital strife. “Many divorced singles say that money was the number one source of conflict in the early years of marriage,” she tells Yahoo! Shine. She also found that, “6 out of 10 said they would not share living expenses in their next relationship.” She recommends that each partner evaluate their own approach to spending and saving money and discuss with their spouse early on. She says there is no one-size-fits-all-financial plan, but couples need to determine their own rules and adhere to them.
Affection. Another surprise was that men crave affection-but not necessarily sex-more than women. “It’s counterintuitive,” says Orbuch, “but men crave feeling special and being noticed by their wives.” She adds that men who report not getting enough nonsexual affection were twice as likely to ask for a divorce, but the reverse was not true for women. “Women are fortunate. We get this kind of affirmation from more people in our lives, our mothers, children, our best friends”-so women tend to need less from husbands. She recommends carving out time for regular cuddling, kissing, hand holding, and saying “I love you.”
Blame. “When divorced couples found fault with their relationship using ‘we’ statements, they were significantly more likely to find love than those who used ‘I’ or ‘you’ statements.” Those who found blame in factors such as being incompatible or too young experienced less anxiety, insomnia, and depression than those who blamed their former partner or themselves for a break-up. Examine what went wrong in the relationship instead of assigning individual blame, suggests Orbuch, and think about how you can resolve conflict better next time.
Communication. Orbuch says a trap many couples fall into is “maintenance” rather than true communication. She suggests having a “10 minute rule” every day when you, “Talk to your partner about something other than work, the relationship, the house, or the children.” The key is revealing something about yourself and learning something about your spouse. “Forty-one percent of divorced people say they would change their communication style,” says Orbuch,”and, 91% of happily married couples say they know their partner intimately.”
Move on. Letting go of the past is a key to being in a happy relationship. This is true for people who are currently married as well as those seeking love. If you are irked by thoughts of your partner’s old boyfriend or girlfriend or of a fight that happened weeks ago, you might not be interacting in a healthy, positive way. “That animosity prevents you from being fully present,” says Orbuch. She also points out that people who felt neutral toward their ex were significantly more likely to find love after a divorce. If you can’t let go of your anger, her book outlines a number of exercises including writing a detailed letter to the person you are angry at-and burning it.

For more information on Dr. Orbuch or to ask her a question check out her website, The Love Doctor.

Child Rights in a Divorce

Written by redheadedlaw on July 7, 2012. Posted in Divorce. No Comments on Child Rights in a Divorce

A Bill of 33 Rights for Children of Divorce

Original Article by Pamela Cytrynbaum for Family Goes Strong

Children of divorce are being parented by (former) children of divorce at record levels these days. Those of us whose parents pioneered the art of tearing their marriage asunder taught us a lot about what works and what doesn’t. Now our children should be the beneficiaries of our wisdom, right? Those of us who came from “broken homes” know how hard it can be, and we know all the ways parents can make it easier, more humane, even positive. So, I think it’s time we set up some ground rules. In that spirit, I offer a Bill of Rights for our children.

You have the right to your feelings – all of them, whenever they come, whatever they are.
You have the right to be listened to, heard, understood and taken seriously.
You have the right to be stunned, shaken to your core, to be in disbelief.
You have the right to feel betrayed and to feel the foundation of everything you thought to be true is shaking beneath you.
You will probably see one parent thrive and another one suffer for a while. You have the right to find that appalling and confusing.
You may be called ‘selfish’ if you express your feelings. You have the right to be ‘selfish.’
You have the right to feel it’s unfair that one parent seems to move on quickly, easily finding a new love, a new life, without looking back. That hurts. You have every right to feel hurt and angry by that and to tell your fast-moving parent to slow down.
You have the right to ask questions and to have them answered honestly and appropriately by your parents.
You have the right to be treated with respect, to be told the truth, to be included in the process.
You have the right to expect fair and equal treatment for yourself and your siblings and any step-siblings that enter or are born into your “blended” family.
You have the right to sometimes feel like an outsider in your own family.
You have the right to expect your parents to behave honorably, to put your interests first, and to keep you informed.
You have the right to ask for help and to get it.
You have the right to give everyone the silent treatment.
You have the right to express your anger and pain and feelings of helplessness.
You have the right to be in control of some things – probably not the ones you want to control, though. And you have the right to be angry and sad about that.
You have the right not to be blamed for your feelings. Or for anything.
You have the right to know it was not your fault, even if you have been difficult and not on your best behavior. Parents don’t get divorced because their kids aren’t on their best behavior.
You have the right not to want to meet Dad’s new girlfriend even if he’s super ready for you to do so.
You have the right not to be ready to move to new, post-divorce phases even if your parents say ‘it’s time to move on.’
You have the right to feel really, really weirded out and incredibly sad seeing your mom or dad parenting somebody else’s kids!
You have the right to feel jealousy.
You have the right to wish your old life back, even if it was, if you’re really honest, stressful, negative and sad.
You have the right to confide in friends and to seek their support.
You have the right to keep your feelings to yourself.
You have the right to do your own informal survey of other divorced families to see what plans and arrangements work best for them.
You have the right to resources – books, websites, articles, support groups – about divorce that are appropriate to your age and emotional maturity.
You have the right to be emotionally immature.
You have the right to tell your parents your feelings about issues of custody, moving, dating, blending families, changing schools, vacation schedules and anything else you have feelings about.
You have the right to worry about your future without anybody telling you “it’s going to be fine….the adults are going to work it all out, just do your homework.”
You have the right to be dissatisfied with answers adults give you.
You have the right to actively participate in the discussions and choices being made about your future.
You have the right to be unconditionally loved by your parents, who really are trying to do their best and who love you very, very much.

‘Should I Divorce?’ 10 Ways To Tell If Your Marriage Is Over

Written by redheadedlaw on May 30, 2012. Posted in Divorce. No Comments on ‘Should I Divorce?’ 10 Ways To Tell If Your Marriage Is Over

By Drs. Evelyn and Paul Moschetta for YourTango.com

Despite divorce being so common, many couples are caught off guard when it actually happens to them. They believe that if they just begin to love one another again, everything will turn out fine. This myth, however, lulls them into missing the warning signs that suggest that their marriage in trouble.

Here are 10 ways to tell if your marriage is over:

Sex is consistently boring and mechanical. A satisfying sex life is vital to health and well being. A long-term frustration of this basic human need can signal the end of a marriage.
There are many problems and only a few solutions. The inability to compromise and find workable solutions to common relationship issues turns partners into bitter adversaries.
Character assassination happens in your marriage. Name-calling, insults, belittling put-downs, and personal attacks aimed at embarrassing and hurting a spouse are a sure path to divorce.
You’re angry all the time. Accumulated anger kills love! If you and your spouse don’t know how to handle anger and it piles up like a mountain in your relationship, divorce is inevitable.
One of you cheats. With a lot of professional help, most marriages can survive when a partner cheats once. Repeated affairs cause so much pain that divorce is usually a relief.
There is selfishness within your marriage. Marriage is a give and take relationship and it’s about making your partner’s needs a top priority. Self-centered husbands or wives have partners who feel ignored and neglected will eventually want out at all costs.
One or both of you always needs to be right. When your partner’s always right and you’re always wrong, it feels suffocating. When you do not have a voice that’s heard and respected, marriage turns into a dictatorship. Divorce provides you that irresistible freedom that you do not receive from your spouse.
It’s not in the kiss anymore. When you would rather have sex than passionately kiss, your marriage is in deep trouble.
The conversations are over. The best way to have a happy marriage is to talk your way through it. This means sharing thoughts and feelings so that you’re emotionally in sync. Without this bond, marriage is an empty and lonely place that partners want to leave.
There is too little or too much money. When both partners need to work and one earns significantly more than the other, especially if it’s the wife, control issues can sabotage the marriage. However too much extra cash, when partners are not careful, can fuel a party on lifestyle that invites temptations that cause damage to a marriage, as well as the lasting values that remind us of what’s really important in life.

11 Things A Good Divorce Attorneys Need To Know

11 Things All Good Divorce Lawyers Need To Know

Written by redheadedlaw on May 28, 2012. Posted in Divorce. No Comments on 11 Things All Good Divorce Lawyers Need To Know

Original article by Henry Gornbein

Judges often look down upon divorce; I’ve seen one judge refer to family court as the kiddie court. Why? Because divorces are messy, complicated and emotional. People often become totally irrational during a divorce. It is therefore up to the lawyers to make sense of the process. Here are 11 things all good divorce attorneys should know:

1. A divorce attorney must know the law regarding divorce, child custody and all other aspects of family law where he or she practices.

2. The attorney should not only know the laws related to this area, but should also have an understanding of basic tax laws, especially as they impact upon property division and alimony.

3. A good divorce attorney should know real estate and understand issues involving real estate both with regard to commercial and residential property, as well as issues regarding mortgages and other encumbrances. This is especially true with so many houses having a negative equity.

4. A good divorce attorney should have some knowledge of issues with regard to corporations, especially closely-held, family-owned or small corporations, which are often evaluated and become a key component of many divorces.

5. An understanding of businesses including partnerships, professional practices, such as medical, dental, CPA, and law practices, can be important in many cases as well.

6. Having a good knowledge of discovery can be important. It is important to be able to represent your client fully. Having a complete picture of the assets and liabilities is critical because if something is missing, your client will be short-changed.

7. It is important for a good divorce attorney to know the judges, the legal system, and the workings of the court where your case is occurring. Every court has its own way of doing things.

8. Another issue to be mindful of is domestic abuse and domestic violence. Too frequently this comes into play in many divorces. These issues should never be ignored.

9. It is important to have some understanding of psychology and human relationships because in family law, there is a huge psychological overlay that makes this area of the law so difficult. No one gets married thinking about divorce and sadly, too many marriages end in divorce. Thus, a client coming in is unhappy in the first place at the beginning of the divorce, especially if it is something that he or she does not want. At the end of the divorce, the client is often more unhappy because he or she will be receiving half or less of the assets. People often end up with huge liabilities, and this is especially true in these tough economic times where so much real estate is down. The client will often still owe attorney fees. This is not a happy time, and a good divorce attorney recognizes this.

10. It is important to have a knowledge of child custody and the law regarding custody, parenting time, and any other aspects impacting the child or children.

11. A good divorce attorney understands all of these factors and should be a good negotiator as well as a good listener.

Family law covers so many issues that are exacerbated by the tremendous amount of emotion, anger, resentment, and unhappiness that clients have. Many clients refuse to deal with these emotional issues as they go through a divorce. This is why practicing family law can be very difficult, to say the least. It can also be very rewarding because a good family law attorney knows that he or she is helping someone through some of the most difficult times in his or her life.

Avoiding marriage’s No. 1 pitfall: money troubles

Written by redheadedlaw on May 21, 2012. Posted in Marriage. No Comments on Avoiding marriage’s No. 1 pitfall: money troubles

By ALEX VEIGA, AP Business Writer

Newlyweds and couples moving toward marriage, take note. Love, as it turns out, is not all you need.

Not if your goal is to avoid the No. 1 reason marriages end in divorce: Money problems.

Everyone knows, or should know, this. But love – and a reluctance to take a hard look at our own financial habits – often keep us from seeing, much less confronting, potential financial troubles in a relationship.

Failing to do so, however, can lead to serious post-wedding day troubles.

“Mature, responsible conversations about money are a sign of a marriage that’s going to be healthy and wonderful and enduring,” says Brooke Salvini, a certified financial planner based in San Louis Obispo, Calif. “If you can’t talk about money when you are dating, that is a red flag right there.”

To get the conversation rolling, here are seven steps experts recommend to steer clear of potential marital money troubles:

1 Disclose financial records

Before corporations merge, they go through a period when both sides get a close look at each other’s financial records. Take the same approach before you get hitched.

Swap statements for your bank accounts, credit cards, student loans, retirement accounts and so on. Also share credit reports and FICO scores.

“Not only can you start to put together a balance sheet of what the two of you own and what your debts are, you can start to discuss ‘do we want to combine our checking account?’ ” Salvini says.

2 Discuss financial goals

A huge part of getting in sync with your spouse begins with discussing major life goals and the necessary financial commitments.

Discuss short-term goals, such as paying off credit card debt, and then craft a budget that sets you clearly on a path toward your goals.

3 Budget your spending

Failing to create and stick to a mutually agreed-upon budget can lead to marital strife.

It doesn’t have to be complicated, though. Start off by listing monthly income. Be sure to add in interest earned on money-market accounts and dividends from any investments. Then add up expenses, everything from car payments and rent, to groceries, gym memberships and utilities.

If you’re making more than you spend each month, you can begin planning how to set aside money for long-term financial goals. If not, it’s time to consider ways to cut back.

4 Treat “your” money as “our” money

Many newlyweds continue to see the money each earns as his or her own, as if they were merely roommates. They keep separate bank accounts and pitch in – perhaps equally, perhaps not – to paying bills.

But that can lead to problems, especially if one spouse earns a lot more than the other, says Anthony Chambers, a clinical psychologist at the Family Institute at Northwestern University.

If both spouses work, he suggests they arrange for their paychecks to be deposited directly into a joint account that’s used to pay all shared expenses. If they feel they need to have some of their own play money in a separate account, that’s fine. But Chambers says the funds should come from the joint account so both spouses know where the money is going.

5 Keep credit cards separate

It’s not necessary to make your spouse a joint account holder on your credit cards, especially if he or she has a poor credit history, which can drag down your credit rating. Instead, make your spouse an authorized user of your cards. This will avoid any potential impact to your credit rating. As a safeguard, authorized users are also able to check account balances and track spending on the card.

6 Don’t split costs 50-50

In marriage as in most other scenarios, money is power. Although splitting household costs down the middle may work early on in a relationship, it can breed resentment in a marriage when one spouse makes a lot more money than the other. It also can foster a sense that the person who pays more should have more say in financial matters.

“Very few things in marriage are exactly 50-50,” says Chambers. “And that can really start to bring up all of these other issues of fairness.”

Still, even if costs aren’t split down the middle, it’s important that each spouse has an equal say in making money decisions.

7 Talk about spending

Even after you’ve reviewed all the financial paperwork, sometimes it’s even more important to find out how your spending habits match up.

Often those habits are developed early and are entrenched. One person might have grown up in a family that counted every penny. Another might part far more easily with money because shopping became a hobby.

Beyond how much someone likes to spend there are potential conflicts over what we see as a must-have.

Even small differences can become wedge issues later on.

“The central task of marriage is the management of differences,” says Chambers. “So you want to be able to know early on what those differences are.”

How Social Media Can Undermine Your Divorce

Written by redheadedlaw on May 2, 2012. Posted in Divorce, Social Media. No Comments on How Social Media Can Undermine Your Divorce

From cadivorce.com posted on April 25, 2012 by salexander. Original Article

The digital lifestyle can have negative consequences and one of which is this: You can sabotage your own divorce case if you aren’t careful about posting on social media sites such as Facebook, Twitter and even the up-and-coming iPhone app, Instagram.

In fact, the AmericanAcademyof Matrimonial Lawyers (AAML) recently released a study that showed more than 80 percent of divorce attorneys have used social media posts (also known as “social networking”) as evidence in divorce court cases in the past six years.

Yes, divorce lawyers all over the country are, more and more, sharing Facebook posts, Twitter tweets and Instagram pics and captions in the courtroom. These “snapshots” into the life of your soon-to-be ex spouse have exposed extramarital affairs and outright lies that can affect everything from spousal support (alimony) to the time your allowed to spend with your children.

In Dishon & Block’s new infographic titled, How Family Law Attorneys Use Social Media Evidence in Court Cases, the above statistics plus some real court cases outline this not-so-surprising trend in divorce. Here are a couple of examples from the infographic:

Belly Dancing Out of Alimony

“McGurk claimed that an accident disabled her during the marriage and that she needed $850 a month alimony from her ex as support. Evidence pulled from Facebook and MySpace showed that four years after the accident, she was an avid belly dancer. The judge accepted this as proof and subsequently denied the woman lifetime support.”

Make It Facebook Official

“In the Stephen and Courtney Gallion case, a widely reported case, the husband had seen some things on their shared computer that made him suspect incriminating evidence would be found in the wife’s social media accounts. The judge ordered the divorcing couple to hand over the passwords to their Facebook and online dating accounts to the opposing counsel.”

See? Social media networking can undermine your divorce (or prove your point!). So, what can you do about it today?

What Can I Do About Social Media and My Divorce?

One thing lawyers say is crucial to the divorce process is patience and restraint. Sure, it may be very tempting to gush on Facebook about your new crush, but it can also be used as evidence if you must disprove adultery in your divorce case.

What about tweets, Instagram pics and even “check ins” on your smart phone? They can pinpoint your movements that can build a case to your very own guilt! And that’s not good in any court action.

Most divorce lawyers caution their clients to be rather anonymous during this time. This isn’t just flippant advice. Remember, you may feel like you are flying (as in partying) after you’ve decided to separate from your spouse, but do you really want to capture all the flying-too-high moments too?

Social media evidence can jeopardize not only your court case, but also affect your child custody rights and future ability to co-parent with your ex spouse. Here are some more tips:

Don’t brag. Think twice about “bragging” to your ex via any social networking post. Party pics can get you in trouble in more ways than just one.

Block your ex. Block your ex spouse from all your social media sites and consider blocking or limiting availability to certain family, friends and colleagues who are sympathetic to your ex spouse.

Change your passwords and protect your digital equipment. It is possible your ex spouse has or had access to your laptop or smart phone and can hijack passwords and even install spyware software. First, take the time to change all your important passwords. If you suspect spyware or are just curious, you can take your laptop or smart phone to a spyware detection specialist.

Stop checking in and geotagging. Don’t let everyone know your whereabouts during this sensitive time in your life. It’s time to chill out on any location services software such as “check ins” on your iPhone or with Instagram’s newfangled “geotagging” capabilities.

It may not be fun, but be wary before, during and after divorce about how your ex spouse, friends and family members (and a judge!) may feel about all of your social networking posts.

For more information on social media and divorce, see Texts, Spyware, Social Media and Divorce.

Dealing with credit card debt after divorce

Written by redheadedlaw on April 19, 2012. Posted in Debt, Divorce. No Comments on Dealing with credit card debt after divorce

Ex-wife stuck with credit card debt
By Ronald Lipman
Published 10:44 p.m., Friday, February 17, 2012
Original Article

Q: My friend got divorced four years ago. There was an interim order by the court for her ex-husband to service their credit card debt, but during their 15-month separation, he never did. By the time of their divorce, the late fees and interest on the card had made the debt unmanageable. It now stands at $45,000. That debt appears on checks of her financial background and probably is the reason she has only been offered straight commission jobs. Can she sue her ex-husband now for the $45,000 and for her pain and suffering caused by the bad debt? Their divorce decree did not address this.

A: No, she can’t sue her former husband for the $45,000, nor can she sue him for her pain and suffering. Under the law, she cannot sue him to enforce any of the interim orders.

She can only sue him to enforce the divorce decree, and since the decree was silent on the debt issue, there would be no basis for her claim.

The above article appeared in Ronald Lipman’s legal column in the Houston Chronicle. It reminded me of how important credit card and other debts can be in a divorce and how little it is understood, even by many attorneys. As a family law attorney who routinely does divorces, I very often see people with large credit card debts, especially during the recent recession. Here is a recap of what I tell my clients:

There are two difference forces at work when it comes to debt in a divorce. One is the judge who grants the divorce; the other is the creditor who is owed. Each of them can do different things.
The judge can determine which party has to pay community debt (debt accrued during the marriage, no matter whether it is in the name of the husband or the wife). The judge tries to make a fair division of all the property, the assets as well as the liabilities. Debts are a part of this division. The Texas Family Code, our set of laws for divorces, says that the judge must make a “just and right” division. This means the judge can, if he or she decides, order wife to pay debt that stands in the husband’s name and vice versa.
The creditor who is owed money can only look to the person who signed up for the debt in the first place, no matter what the judge decides in #2 above and even if the debt is a “community” debt.
The Texas Constitution prohibits a person being imprisoned for debt. If the person ordered to pay a debt in a divorce decree does not pay, the legal remedies are scant, to say the least, and costly for sure.
If your spouse is ordered to pay debt standing in your name and does not pay, your credit will be adversely affected and there is nothing you can do about it.

What does this all mean to you if you are getting a divorce? If you owe debt standing in your name, DO NOT assume that because the judge ordered your spouse to pay it that it (1) will be paid or (2) you will have an effective legal recourse if it is not paid. Make a deal that includes having assets liquidated to pay off the community debt or in which you take more of the community assets in return for taking community debt standing in your name. And, most importantly, hire a good family law attorney that will pay attention to this very important part of your divorce.