Don't Let Divorce Damage Your Credit!

Hashing out the financial aspect of a divorce can be difficult and stressful. Marriage is a financial partnership; During a divorce, these financial bonds must be broken correctly in order to avoid detrimental effects to one or both parties' credit. Below are some tips to help you avoid detrimental effects to your credit while dealing with divorce.

1. Check your credit and ask your partner to check his or hers at the very beginning of the process.
It's a smart idea to be aware of your credit score and what you and your partner owe before you begin divorcing. You can request a free credit report once a year from the official credit report site run by Experian, Equifax, and Transunion.

2. If you have no individual credit, now is the time to establish it.
Once the divorce is final, you will be dependent on your credit report alone. You can build up your individual credit by opening a card in solely your name. Opening a credit card can be an important step on the path to financial independence.

3. Discuss how to deal with joint loans, such as the mortgage and/or car loans.
You and your partner will need to decide which party will take on responsible for any joint loans acquired during the marriage. Joint bank accounts should be switched over to one name early in the process to avoid any one party withdrawing funds without the consent of both spouses. Likewise, any credit cards in both spouses' names should be switched over to one party immediately. Don't let your credit be put in jeopardy by an vindictive spouse! Additionally, be sure to check of all your financial records to avoid overlooking smaller debts such as a store card or gaming accounts.

4. Place a fraud alert on your credit.
You can request for one of the three major credit agencies to place a "fraud alert" on your credit for at least 90 days. Placing a fraud alert on your credit means that your credit bureau will contact you any time an account is opened in your name, obtain another credit card or increase your credit limit. With a fraud alert, you will immediately know if someone other than yourself is attempting to use your credit.

If you are considering divorce, getting in touch with a divorce attorney can be both a smart and comforting move. An attorney can review these steps with you and assist you with financial entanglements you may have as a result of divorce. If you or a loved one is considering divorce, feel free to contact our office at (718) 313-7563.

The Importance of Financial Literacy

Financial literacy is an essential part of running a healthy and stable household. Financial literacy is defined as a set of skills and understanding of how money works and how to manage and invest it in a way that ensures financial well-being. According to a 2013 poll taken by the National Foundation for Credit Counseling in 2013, over 40% of adults graded themselves as a C or below in financial literacy. Unfortunately, American women consistently score lower than men in tests of financial literacy. Since financial literacy gives people the power to make educated decisions on the household finances, it can be hugely beneficial for a household's long-term finances if women acquire this knowledge. Women who are financially literate are more likely to prepare themselves for important life events such as retirement and/or the birth of a child. They may also have an easier financial adjustment period in the event of divorce.

There are many resources available to those who wish to increase their financial literacy. Our government runs a useful program called "My Money" to help educate citizens about the five keys to financial literacy: Earn, Spend, Protect, Borrow, and Invest. More information can be found at the My Money.Gov website. Further information about making wise investments can be found at the Financial Industry Regulatory Authority (FINRA) website. Additionally, online programs such as the Mint.com program can help you track your spending and investments and are a great tool for financial beginners. The Internet can be a great source of knowledge about finances, but not all online sites are accurate and/or reliable, so be sure to stick with reputable sources such as the websites of government or major financial institutions. Enjoy your research!

Divorce and Alimony

Divorce is difficult and the process costly. Often a judge will order for one party to pay the other alimony. Alimony is used to limit the negative economic effects divorce can cause by compensating a non-working or low-income spouse.

Of course, there are regulations guiding alimony. The New York Courts' version of alimony is called maintenance or spousal support. In New York, alimony is calculated by a formula. For your own purposes, alimony can be roughly estimated by subtracting 20% of the supported spouse's income from 30% of the paying spouse's income. There are also websites where you can plug in both parties income and it will calculate the alimony amount.

Another important term to know is "Pendente Lite". Pendente Lite is money paid as temporary maintenance while the divorce is in process. A judge will order "Pendente Lite" to be paid when one spouse needs immediate financial assistance. Pendente Lite orders end once the judge has made a final decision about alimony.

Either party can request the judge to review the maintenance agreement at a later date if their financial situations change.

Additionally, you should know that alimony should be reported as income by the receiving spouse.

Protect Yourself Financially Before You File for Divorce

Divorce often puts people on a shaky financial ground. The prospect of splitting of assets can be scary and fraught with complications. So what can you do to make sure you'll be protected financially when you decide to divorce? Below are some tips to help you prepare.

1) Review your financial documents.

Now is the time to get all of your financial documents together. Firstly, you will need most of these documents when you go to Court anyway. Secondly, it is important to have an up-to-date picture of your financial situation. You should carefully review and duplicate these papers. You should also request a credit check and review the report carefully. You are entitled to a receive a free credit report once a year. If you will be moving to a new home or apartment, this may be the first time you will have to apply for housing using only your credit score. Remember, knowledge is power!

2) Change accounts into your name.
You may have opened joint bank accounts, credit cards, and/or other loans during the course of your marriage. It is wise to open a bank account with you as the sole account holder so that you have a secure way to store and access money. Additionally, you should close out all joint credit cards at soon as possible, as to avoid your significant other making unapproved charges.

3.) Be mindful of taxes
A divorce will change the way you file for taxes. Make sure you are aware of how the date your divorce is finalized might affect the way you file taxes for this year and the next. You might want to consult a tax attorney if you are unsure about any part of the process.

4) Avoid taking on additional debt
If you are considering filing for divorce, do not take on or cosign any new debt and encourage your spouse to do the same. Remember that any debt either of you takes on during the marriage will be considered joint debt. In this time period you want to be detangling yourself from any joined financial ventures, not taking on new ones. This will only further complicate the divorce process and could result in financial loss on your part.

5.) Update your will and insurance.
You never know when emergency situations will arise, so don't let yourself be caught be surprise. Make sure you update your will, insurance, and any other financial documents to reflect that your spouse is no longer your beneficiary. 

How to Handle Post-Divorce Legal Issues

Even after the divorce decree is finalized, some families have disputes over its execution that need to be settled in Court. As an attorney who has spent many years practicing Family Law, I must stress the importance of consulting an attorney, even post-divorce, if legal conflicts within the family arise.

Another important thing to do when legal conflicts arise is to take your divorce decree outside of its safe place and carefully read it over. Any legal argument you will use in Court will start from there. The New York Supreme Court recently ruled in a case that exemplies this. In this particular case, a father was financially supporting his child by providing for her apartment. The father fell behind on his child support payments. When he was taken to Court for his delinquency, he argued that the financial support he provided outside of his set amount of child support should satisfy his obligations. The Court ruled that his financial support of the apartment was a voluntary payment that the Father had chosen to make and therefore could not be used to satisfy the child support obligation that both parties had agreed to in their divorce decree. The primary reason the Court ruled this way can be found inside the parties divorce stipulation. The stipulation included a "Voluntary Payments" clause that stated that any outside payments made to either party could not be used to satisfy the amount of child support they had agreed on.

Cases like these often generate unnecessary legal fees and hostility for all parties. Furthermore, they can be easily avoided by consulting a Family Law attorney any time you have a question about the specifics of your divorce decree. In this particular case, the "Voluntary Payments" clause prevented the father from applying any outside financial support to his child support payments, but he might not have been aware of the legal implications of such a clause. You should expect your attorney to provided a detailed review and explaination of your entire divorce stipulation. Additionally, I strongly advise all of my clients to keep records and hard copy receipts of each and every payment made to the other party. It is always helpful to have an organized and detailed paper trail in case a legal dispute arises.

Get the Benefits you Deserve in your Divorce!

As an experienced attorney, I know how important it can be to have a lawyer to handle your legal matters, especially in cases that can turn contentious such as divorce. Unfortunately, some people will still "go it alone" by trying to use "quick and easy" divorce paper sites or divorce "consultants". While these cases may work out happily if the divorce is an amicable matter with little to no assets and no children, most divorces are not so clear-cut. In an emotionally charged matter such as divorce, it is important to have an objective outsider who can guide you rationally.

Remember, the things you agree to in your divorce will affect your future!

For example, if you decide to go to Family Court without an attorney to represent you and you agree to only weekend visitation with your children and then later change your mind, you will have a long, difficult, and needlessly expensive legal battle ahead of you. However, if you hire an experienced attorney from the start, your visitation rights can be secured from the very beginning and then used at your discretion.

Another benefit of being represented by a Family attorney is that they will be knowledgable about what exactly you are entitled to in your divorce. It is common for clients to not even realize that they could ask and be rewarded certain funds until their attorney informed them. For example, you may not know you may be entitled to your former spouses' Social Security benefits. If you were married to your spouse for 10+ years, are older than 62, are not re-married and don't qualify for Social Security benefits in your own right, there is a significant chance you will be entitled to a share of your former spouses' benefits! Additionally, you can be entitled to your former spouses' Social Security Benefits even if they have passed away.

Take care of your future and consult a Family Law attorney today.

- Kevin McKernan

Infidelity, Stay at Home Parent, or Financially Vulnerable? Consider a Post-Nupital Agreement!

We've written about pre-nuptial and cohabitation agreements, but do you know that many couples are now opting to draw up post-nuptial agreements? A post-nuptial agreement is a legal agreement between a couple that is made after the marriage has already taken place. Couples chose to sign a post-nup for a wide variety of reasons. One common reason that couples choose post-nuptial agreements because one partner has chosen to be a stay at home parent. If the couple decides that one partner will put his or her career on hold in order to stay at home with the couple's children, they may also decide to place the economic protection of a post-nuptial agreement in place. Parents who chose to stay home with their children often not only miss out on their peak earning years but lose time ordinarily spent climbing the career ladder.

If you or your partner has decided to become a stay at home parent, it's easy to protect yourself financially! Your first step should be to consult an attorney who specializes in Family Law. You should explain the specifics of your family's situation. Your attorney can then draft your family's custom agreement. Families can choose whatever financial arrangement is right for them (within the parameters of Family Law) and map out how their assets and the future of your finances in the event of divorce.

Post-nupital agreements have also become popular options for couples who have experienced infidelity. Depending on personal circumstances, couples can draw up anything from a "infidelity clause" in their post-nupital agreement to a shift of assets into the betrayed spouse's name for his or her financial security.

Post-nupital agreements can protect the entire family's financial future and ease the divorce process if it ever occurred. If you are married and in financially vulnerable position as a result, I strongly recommend you look into drafting a post-nupital agreement.

-Kevin P. McKernan

What You Can Do When Divorcing a Hostile Spouse

Divorce is an emotional process that can cause even the most amicable of spouses to bicker. In fact, it is not uncommon for one or both spouses to "go hostile" and make financial or child related threats during the divorce process. One spouse may make statements such as "I'm going to get the children in court" or "I'll make sure this divorce will bankrupt you." Threats like these don't at all mean that the court will allow them to occur, but they can easily become intimidating and frustrating for the spouse on the reviving end. If you are in the midst of a divorce with a "hostile spouse", there are steps you can take to protect yourself.

Divorce in the Social Media Age

Divorces are often stressful, conflict filled events. Add technology such as cellphones and social media into the mix and divorce can be downright troublesome. Many people are not aware that what they say or do online can affect life outside the virtual world, especially during legal dispute such as divorce. Here are some helpful tips on what you should avoid doing online during a divorce.

1. Remember that anything you put on Facebook or other social media sites is public and can therefore end up in anyone's hands, even if you enable a "Friends Only" privacy setting. You don't want to look bad in a courtroom when the opposing attorney brings up your not-so-amicable Facebook statuses. You should never share anything on social media that you wouldn't want brought up in a courtroom.

2. Don't forget to change your passwords. Attorneys always advise getting rid of any shared bank accounts or credit cards during your first divorce consultation, but often forget to advise their clients to change their social media passwords. In such an emotionally charged time, one spouse may log into the social media accounts of the other and not only "hack" the account by posting unflattering statuses or comments but read private messages. You should also think about how you plan on separating things like cell phone service accounts. These contracts can often be expensive to break, so try to plan for the financial hit.

3. Remember that your soon-to-be-ex may also post unflattering things online. Facebook, Twitter and/or other social media updates can and have be used as evidence that a particular person is lying to the court. There have been countless divorce cases where one partner tries to hide certain assets or income from the court in order to look financially destitute when he or she isn't. If your soon-to-be-ex is claiming unemployment while uploading pictures of brand new vehicles to Facebook, you can submit that evidence into court.

4. Texts and e-mails are also admissible as evidence. Use caution when sending your soon-to-be-ex or even mutual friends texts or emails about things pertaining to your divorce. Remember, almost anything you write can be used in court.

If you keep these tips in mind, you will be able to avoid unnecessary stress during the divorce process. Remember, if you have any questions or concerns during the divorce process, you should consult with your lawyer before you take any action.

Pre-Nuptial Agreements are Important!

In the past, a "pre-nuptial" was considered to be sensitive conversation topic with a decidedly negative association. Celebrities or those born into fortunes were the only people who signed pre-nupital agreements. Today, pre-nuptial agreements are now considered truly smart financial planning for the future. With couples now facing a 50% divorce rate and increasingly complex financial dynamics, it is incredibly important to draw up a pre-nupital that will protect the future of both you and your soon to be spouse.

Pre-nuptial Agreements are legal agreements drawn up before a couple is legally married that outlines how the couple's finances will be handled in the event of a divorce. Pre-nupital agreements are useful because they capitalize on the good will a couple has in plenty while in their honeymoon stage. This is the ideal time for the couple to work together as partners and come to a financially sound and fair agreement for both parties. If the relationship does come to an end, not only will the couple experience reduced stress since there is no need to work out the financials, but both partners will be protected.

As an attorney, I recommend pre-nuptial agreements for all my clients, but pre-nuptials are especially important for couples who are planning on bringing assets into the marriage. Some clients mistakenly believe that only those with large or significant assets need a pre-nuptial agreement, but this is a common misconception. Pre-nuptials are a great way to protect your hard-earned assets if a "worst-case" scenario arises, so why not make sure your future is safeguarded? Pre-nuptial agreements are also important for those who have children from a prior relationship, those who will be receiving an inheritance, and those who are financially supporting their partner through university or professional school. Basically - if there are factors that could financially complicate your marriage, it is better to work them out and set them onto a legal document now.

Another great thing about pre-nuptial agreements is that they are easy to draw up. Those looking into pre-nupital agreements simply need to contact a lawyer who is well-versed in the family law of your state to discuss your options and what you kind of stipulations you personally would like in your pre-nuptial. You are able to customize your pre-nupital agreement to include stipulations about your pets, living situation, and even infidelity. A lawyer should be able to write the specifications you desire into your agreement and answer any questions you and your partner may have.

 If you have any further questions or concerns, feel free to reach me at my office.

- Kevin P. McKernan

Four Important Documents for Recent Divorcees

The process of getting a divorce can be long, drawn-out and draining on both your time and emotions. As with any big life change, you must remember that this is also an important time to review and if necessary update your legal documents. Below is a list of legal documents you should review again as soon as possible after the divorce.

Why Should You Get a Cohabitation Agreement?

A recent study done by the American Academy of Matrimonial Attorneys shows that matrimonial lawyers are seeing increasing numbers of clients whom are choosing to cohabitate and combine assets without first getting married.

As a long-time family law attorney, I know that just as it can be beneficial for couples who are planning to marry to sign pre-nupital agreements beforehand, it can also be beneficial for couples who are planning to move in together to sign a cohabitation agreement.

Cohabitation agreements are legal documents that a couple draws up in order to protect both persons' assets and define expectations in case the relationship does end. For couples who are living together without the legal protections and procedures of marriage, cohabitation agreements can minimize the financial repercussions of a bad break-up.

The Same Sex Marriage Dilemma

The controversy about the legalization of same sex marriage has been front and center in American politics for quite a few years now. I actually have legal experience in this area, having been hired as head attorney to defend a particularly divisive case involving LBGQT rights in the early 90s. Since then I have been keeping myself informed about this new arena in law and recently I stumbled upon some information that I would like to share with you.

Love and Warfare: Who Keeps the Engagement Ring in the Event of a Breakup?

They say love is eternal, but sometimes it just doesn't last. Each year, thousands of engaged couples across the United States decide to end their engagement. After the confusion and chaos of the breakup subsides, the question often becomes "What happens to the engagement ring?". An engagement ring is often representative of many weeks of the future groom's income and therefore a valuable and sought after item by both parties. Lucky, the courts in both New York and New Jersey have made it clear what the law dictates in this difficult situation.

Photo credit to GossipCop.com

NY Divorces: Protect Yourself! Learn about adultery, abandonment, and other grounds for contested and uncontested divorce

Divorce is hard on everyone in a family. If you are considering divorce, you probably have a million things running through your mind: How will the kids feel? What will happen to the house? How do I even begin this process?

Divorces fall into two major categories: contested and uncontested. An uncontested divorce usually occurs when you and your spouse agree on all the issues that come along with divorce, including the distribution of your finances, child support and visitation, and spousal maintenance. If you and your significant other cannot come to an agreement on these issues before your court date, you will have to file for a contested divorce. A contested divorce can raise the cost of your divorce exponentially, however, many people believe it is worth it when they feel strongly about certain issues such as their children’s care or remaining in their marital residence.

If you wish to petition for a contested divorce, you must choose one of the six grounds for divorce in New York State.

Click below to learn the grounds for divorce in New York.

What Happens to Lassie After the Divorce? Pets and Custody Agreements

Today more than ever Americans are making sure that they make arrangements for their pets during a divorce. In fact, the American Academy of Matrimonial Lawyers reports they have experienced a 23% increase in the amount of “pet custody” cases. So what happens when both you and your partner want to keep the family dog after the split?

I've handled matrimonial cases my entire career, and I've personally dealt with clients who have disagreed over who will keep the family pet. Here are some tips to keep in mind if you or a family member is going through this difficult situation: