Joanne Kleiner & Associates

Archives for May 2018

May 03

How Divorce Can Affect a Stay-At-Home Mom’s Finances

In 2012, 29 percent of women with children under the age of 18 were stay-at-home mothers. Of those, 34 percent already lived at or below the poverty line. Since 40 to 50 percent of first marriages in the United States end in a divorce, some of those moms could be headed toward financial disaster.

A Stay-At-Home Mom’s Ability to Earn an Income

Dropping out of the workforce even for a year or two could impact a woman’s ability to gain employment in the future. Leaving a job may also impact how much a woman can earn when she does re-enter the workforce. In many cases, women face more barriers when it comes to finding a well-paying job.

You may have to start at a lower level of pay or take an entry-level position in order to get back into paid employment. The skills that you had 10 or 15 years ago before you left paid employment may not be in demand now. Employers may want new skills related to technology, so you might have to take some classes or refresher courses.

How Spousal Support Facilitates Your Financial Future

When you’re already going through the stress of a divorce, trying to write a resume and apply for jobs may be too overwhelming. You may need some time to emotionally recover from the divorce, practice your interviewing skills, work with a job coach, create social media or job search profiles and plan out your process of re-entering the workforce. Having a spousal support plan in place gives you some flexibility. Once you do return to paid work, it could be another one to two months before you receive your first paycheck. Therefore, spousal support will be important until you’re back on solid financial footing again.

Typical Factors That Go Into Allocation of Spousal Support

Many factors go into the negotiation and allocation of spousal support. In some cases, the current income of the higher-earning spouse is compared to the likely income of the stay-at-home parent when determining the amount of money awarded. In other cases, the length of time that the wife was a stay-at-home mom is put into consideration. For example, a woman who took a year off to care for a healthy infant may have an easier time of going back to full-time employment compared to a woman who has been out of the workforce for the past 15 years. A woman’s education and marketable skills will also be factored into the decision.

If you only have a high school diploma, you may have a more difficult time finding work compared to a woman with a college degree. The ages of your children could also be a factor. You might have a more challenging time finding employment if your child is an infant or a toddler compared to a child who is in high school and does not require as much parental care. Some of the other factors that go into spousal support negotiations include:

  • If the mother has a child with a disability
  • The wife’s age at the time of the divorce
  • The wife’s health status, such as her own disability or chronic illness

Negotiating Spousal Support for a Stay-At-Home Mom After a Divorce

When a stay-at-home mom is considering a separation or has been served divorce papers by her spouse, the financial effects can be dramatic. Many women expect to receive spousal support, but those negotiations could be as contentious as child custody.

A woman who never worked or quit her career to raise a family has probably sacrificed years of income, retirement savings and payments into Social Security. This could have significant ramifications for her financial future. If you’re in this position, our Jenkintown divorce lawyer may be able to negotiate spousal support on your behalf, giving you the time that you need in order to make and implement a financial plan. With legal representation, you’ll also have more time to apply for jobs, interview, be hired and get your first paycheck.

It’s important to note that a man can also play the role of stay-at-home parent. In these cases, the ex-husband may seek out spousal support. When you are in need of a family lawyer, contact Joanne E. Kleiner & Associates at 215-886-1266 to schedule a consultation. You may also stop by our office in Jenkintown and make an appointment to learn more about your rights under Pennsylvania law.

May 02

Distinguishing Between Marital and Sole Property

About a quarter of American states have community property rules in which assets and debts are split 50/50. However, Pennsylvania is an equitable division state, which means that marital assets are divided in an equal manner if not necessarily 50/50. Therefore, it is important to know the difference between what is owned jointly and what is owned separately outside of a marriage.

Assets Owned Prior to Marriage Are Generally Sole Property

If you owned an asset prior to getting married, you will generally get to keep it after the marriage ends. For example, if you owned a furniture set before getting married, that would likely be yours to keep in a divorce. However, exceptions can be made in the event that an asset appreciates during the time two people are married.

Asset Appreciation and Commingling Exceptions

When an asset appreciates in value during a marriage, that appreciation is often considered to be a joint asset. For instance, say you had a 401(k) that was worth $1,000 on your wedding day. That $1,000 would typically be exempt from being divided in a divorce. However, if the account was worth $10,000 when the divorce became official, some or all of that $9,000 in appreciation could be eligible to be split in a divorce settlement.

Commingling of funds takes place when joint money is used to maintain a separate asset, such as if you spent $10,000 to upgrade the home that your new husband owned while you two were dating. While the house started out as separate property, it could now be considered a joint asset since both parties have contributed money to its upkeep.

A Prenuptial Agreement Could Determine How Property Is Labeled

A prenuptial agreement is a customized divorce agreement that is created before a marriage even takes place. It allows both parties to the relationship to determine who keeps the marital home or what happens to a business owned by one person in the marriage. It can also determine if property is to be sold instead of one person keeping it for him or herself.

For a prenuptial agreement to be valid, it should be created and signed several months before the wedding. Each party can have a Jenkintown family lawyer review the agreement before signing it. In addition to property division matters, a prenuptial agreement can also help a couple work out whether either party is entitled to spousal support.

Assets Held in a Trust May Be Treated as Separate Property

If an asset is held in a trust, it is generally considered to be owned by the trust. Therefore, it would likely be considered separate property or an asset that is otherwise not allowed to be divided per the trust’s terms. As a general rule, if creditors and tax authorities can’t get at something owned by a trust, a former spouse likely cannot either.

Just as with a prenuptial agreement, a trust’s terms can be reviewed by a divorce lawyer prior to the wedding. If necessary, edits may be made to help strengthen the protection it provides the asset from a divorce.

Inheritances Are Often Considered Separate Property

If you inherit money from a family member, you are generally allowed to keep it in the event that a marriage ends. However, rules relating to the commingling of assets may come into play as they relate to how the cash is treated when the marriage actually dissolves. If you are planning to inherit money or assets, you can also make arrangements to open separate accounts to better track how they will be handled.

Everything Else Could Be Considered Marital Property

Anything else that is acquired during a marriage may be considered joint property that can be divided in a divorce settlement. This includes everything from a toaster set or artwork gifted to a couple at a wedding to a cat that was adopted during the last months of the union. It is important to note that animals are generally considered property, much like a house or a car. However, some jurisdictions have allowed the creation of legally binding pet custody arrangements.

If you need a Jenkintown divorce lawyer, call (215)-886-1266 to learn more about how Joanne Kleiner & Associates can be of assistance. An online intake form is also available to begin the process of finding legal counsel.