Law Office of Joanne Kleiner

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Dec 07

The Role Of A Financial Neutral

What Does a Financial Neutral Do in a Divorce?

Debt and disagreements over money and assets are major sources of contention in many divorces in the United States. An estimated 54% of Americans believe that debt is a solid reason to divorce, and 35% of Americans say that finances are the leading cause of stress in their marriages. If your marriage has come to an end, working with a financial neutral in addition to a divorce lawyer could help you set up a more secure and less stressful future.

What Is a Financial Neutral?

A financial neutral is an independent, third-party expert or professional who focuses on the financial aspects of a divorce. They do not represent either of the spouses and thus does not advocate for one party or the other. If there is future litigation, neither party can contract with the financial neutral for future representation. The financial neutral may be retained by the divorce lawyer or by the couple if they both agree to the collaborative process.

What Are the Qualifications of a Financial Neutral?

The qualifications for a financial neutral encompass a wide range of degrees, certifications, and experience. Some of the certifications held by financial neutrals include certified public accountant, business appraiser, certified fraud examiner, certified divorce financial analyst, or certified financial planner. Most financial neutrals participate in many hours of annual continuing education in order to maintain their license to practice accounting and to maintain their certifications. A financial neutral usually holds a bachelor’s or master’s degree in business, finance, accounting, or a related field of expertise.

Which Services Can a Financial Neutral Provide?

During a collaborative divorce, these professionals focus on the financial aspects of the divorce. Their role often begins with information gathering. They may gather information from both parties. The financial neutral usually asks for documentation of income, debt, retirement savings, taxes, bank accounts, investments, and other assets and liabilities. They do not duplicate the efforts of the divorce attorney. The financial neutral provides copies of information to both parties as requested by the attorneys. After reviewing what both parties provide, the financial neutral may identify missing documents and overlooked debts or assets and request them before the divorce process can proceed.

How Does a Financial Neutral Participate in a Collaborative Divorce Process?

A financial neutral meets with spouses on an individual basis as well as during joint sessions. The spouses’ respective family law attorneys are usually present during joint meetings in order to represent the best interests of their clients. If one spouse plans to request spousal or child support, the financial neutral participates by creating budgets for one or both parties. They may also perform cash flow analyses for each spouse in consideration of what their post-divorce financial futures will look like.

Who Would Benefit From Working With a Financial Neutral?

Any divorcing couple in disagreement over the distribution of assets would benefit from working with a financial neutral. Divorcing spouses who do not have any major areas of contention may also benefit from working with the financial neutral in order to have a more clear picture of their finances after the divorce. A spouse who earns significantly less than the other may wish to work with a financial neutral in order to make a support request that is likely to be agreed to out of court.

If you’re facing a complicated financial future, a consultation with our divorce lawyer gives you insight into structuring a fair settlement and helps you understand more about your financial future. To learn more information about the impact of a divorce on your finances and the role of a financial neutral in the divorce process, arrange a consultation with the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania. Contact our office by phone at (215) 886-1266, or fill out and submit our online form to make an appointment.

Sep 05

Should You Try a Divorce À La Carte?

Everything You Need to Know About Unbundled Divorce Services

Did you know that the average divorce can cost many thousands of dollars or more? However, you don’t need to let concerns about this keep you from divorcing a problematic partner. A trend called divorce à la carte, or unbundled divorce services, can save you money.

What Is Divorce À La Carte?

This type of divorce gets its name from restaurants’ à la carte pricing scheme. In à la carte pricing systems, customers pay per item instead of paying a flat fee for an entire meal. When it comes to divorce, the concept is much the same. Typically, people who get a divorce agree to a flat fee or an hourly rate that covers all attorney services. They agree to pay a set sum and then the lawyer handles every part of their divorce.

In an à la carte divorce, the client pays only for specific services. This type of legal arrangement is technically referred to as unbundled legal services. Your lawyer will give you a list of different services to pick from, and you pay them only for those activities. Anything the lawyer doesn’t handle will be left up to you and your ex-partner. Depending on your needs, you might want to pay for one or more of these services:

  • Drafting legal documents
  • Reviewing legal agreements and explaining them
  • Negotiating with the other side
  • Collecting evidence on your behalf
  • Representing you in court
  • Filing documents with the court

Benefits of Using Unbundled Divorce Services

The main benefit of this divorce method is that it’s very affordable. Since you have to pay only for the things you need help with, you save a lot of money. Especially if your divorce is simple and non-contentious, you can easily handle things like asset division yourself. You just pay a relatively small amount for paperwork instead of spending thousands of dollars on services you don’t really use. If you’re looking for a less-expensive divorce, unbundled legal representation is definitely the way to go.

Many people also like that this method puts them in charge. You don’t have to sit back and wait to hear from your lawyer all the time. Instead, you set up your own timeline and decide what needs to be done. The divorce lawyer is there to provide support as needed, but you remain in control.

In some cases, a divorce à la carte is also faster. When a couple starts disagreeing and getting into lengthy legal fights, the process can drag on for months. However, if you and your estranged spouse can work together, an unbundled divorce can be quite fast. You don’t need to wait on your respective divorce lawyers to have a free schedule, and you don’t spend a lot of time in formal negotiations. In many cases, people are able to quickly sort out the details, spend an hour or two getting basic help from a lawyer, and then have things promptly filed with the court.

How Much Do You Have to Do Yourself?

Keep in mind that these cost savings do come with some extra responsibilities for you. This type of divorce is often called a DIY divorce because you and your spouse will handle a lot of the details yourself. The more you manage yourself, the less you have to pay your lawyer. Depending on your situation, you might want to handle one or more of these following tasks:

  • Discussing fair ways to divide assets
  • Submitting prepared paperwork to the court
  • Collecting documentation on all debts and assets
  • Drafting preliminary child custody agreements
  • Communicating with your ex and their lawyer
  • Filling out basic paperwork

If you’re considering this type of divorce, the Law Office of Joanne Kleiner can help. We offer a variety of flexible pricing options, so you can find the services and fees that fit your situation. To learn how much a divorce à la carte would cost at our Jenkintown law office, schedule a consultation today. Call 215-886-1266 or fill out our contact form to learn more about our pricing options.

Aug 09

The Benefits of Parallel Parenting After a Divorce

Reasons to Consider Parallel Parenting After Your Divorce

Although the divorce rate in the United States has been dropping for about 20 years, nearly 39% of first marriages end in a divorce. Many of these marriages include young children, and conflict around parenting and child custody is one of the primary areas of contention discussed with a divorce lawyer. One way that divorcing couples can reduce stress and conflict and minimize time in the courtroom is to create a plan for parallel parenting of their children.

What Is Parallel Parenting?

Parallel parenting is a method of raising children in which the divorced parents minimize interactions with each other. Instead of arguing with each other, they focus their time and energy on their children. This is an effective parenting method when you and your ex-spouse have difficulty being civil with each other.

How Does Parallel Parenting Differ From Co-Parenting?

In a co-parenting situation, parents regularly communicate with each other, present a united front, and have similar rules at each residence. It involves a lot of cooperation and communication. Parallel parenting divides parenting responsibilities and minimizes interactions between the adults. By dividing responsibilities and following the plan, the parents may rarely need to interact with each other.

Who Should Consider Parallel Parenting?

Divorced couples who can’t seem to agree on anything should consider developing a parallel parenting plan with a divorce lawyer. Instead of focusing on problems with each other, this plan focuses on the well-being of the children. Minimizing interaction between the divorced parents also reduces stress and the amount of time that is spent in a courtroom.

How Does Parallel Parenting Benefit Divorcing Parents?

A parallel parenting plan allows both parents to remain active in their children’s lives. It minimizes the stress on each other and disruption for the children. A successful parallel parenting plan demonstrates that parents can focus on what’s best for their children instead of their disagreements, dislike, or distrust for each other. The plan creates guidance for common issues that are likely to breed conflict, such as where children will spend the holidays or which parent will deal with behavioral problems at school. A well-thought parallel parenting plan also makes it easier for divorced parents to move on with their lives after a marriage filled with conflict and arguments.

How Do Children Benefit from Parallel Parenting?

When parents establish a parallel parenting plan, children tend to develop fewer behavioral and emotional problems. They’re more likely to do better in school, develop strong friendships, and have positive relationships with each parent. Parallel parenting also helps children build better self-esteem, and they may be able to avoid feeling as if they were the cause of their parents’ marital problems or the reason for the divorce.

What Should I Include in a Parallel Parenting Plan?

A plan for parallel parenting should include as many specifics as possible. Although you can’t possibly anticipate every event or emergency that could occur with your child or ex-spouse, some elements that you should cover include the start and end of each parent’s visiting time, how and where your child will be exchanged, who is responsible for transporting your child, what happens if one parent misses or cancels their scheduled visit and when each parent has exclusive decision-making power. Some other aspects of parenting to add to your plan include who will take your child to medical and dental appointments, how to handle accidents and injuries, scheduling social, school, and religious activities, and dealing with behavioral issues and daily routines.

If you’re considering a divorce and would like to know more about parallel parenting, you may benefit from speaking with a divorce lawyer. Contact the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania, at (215) 886-1266, or enter your information into our contact form, and an associate will reach out to you to schedule a consultation.

Mar 07

The Key Differences Between Separate and Marital Property

How to Classify an Asset for Property Division Purposes

You may believe that you are at risk of losing half your belongings if you leave your spouse. However, this isn’t necessarily the case. Instead, you generally only risk losing a portion of the assets held inside of the marital estate.

What Is the Marital Estate?

Generally speaking, any assets that are acquired during a marriage are considered to be part of the marital estate. This may be true even if only one person’s name is on the deed or title to the asset. For instance, if you buy a home with your spouse, you generally have an ownership interest in that home even if it is held in your spouse’s name.

It’s also worth noting that price appreciation that occurs in a separate asset after marriage becomes official may be part of the marital estate. For instance, let’s say that you own a home that is worth $100,000 on the date of your wedding. Let’s also say that the home is worth $200,000 when your divorce becomes official.

Your spouse will likely be entitled to a portion of the $100,000 in price appreciation that took place while you were married to them. It’s worth noting that they would be responsible for paying capital gains taxes on any profits that they received from selling a joint asset obtained in a divorce settlement.

What Is Commingling?

Commingling can occur in several different ways. For example, if your spouse deposits money into your personal bank account, that asset may now be considered joint property. The same may be true if your spouse used their money to make repairs to your home, car or other property. Separate assets may become joint assets because you failed to keep accurate records of when they were acquired and who paid to obtain or maintain them.

Tips for Retaining Control of Property After Getting Married

The use of a prenuptial agreement may make it easier to exempt property from being distributed to your spouse in a divorce settlement. Such an agreement may stipulate that your business, home or other property is to be classified as separate property. A divorce lawyer may be able to help you draft a prenuptial agreement that is likely to hold up under scrutiny.

If you aren’t able to create such a contract before your wedding takes place, you can draft a postnuptial agreement after your marriage becomes official. Regardless of when this type of agreement is executed, it’s important to allow your spouse to review it with their own attorney. This may help to ensure that the document won’t be invalidated based on a claim that it was signed under duress.

Putting assets into a trust may also be an effective way to retain control of them after a divorce. In most cases, property held in a trust is considered to be kept outside of the marital estate. Of course, your spouse may challenge the validity of the trust, and it’s possible that a judge will nullify it in the event that the document is not structured properly.

Certain Assets Won’t Automatically Become Part of the Marital Estate

If you received an inheritance while you were married, it remains a part of your separate estate. The same is true of anything that you received as a gift from your spouse, a friend or a family member. Of course, these items can become joint property if they are commingled, which is why it may be best to keep them in a separate account or place them in a trust.

If you need the assistance of a divorce lawyer, you’re encouraged to contact the Law Office of Joanne Kleiner at your earliest convenience. You can call our Jenkintown office by dialing (215) 886-1266, or you can fill out and submit the contact form located on our website.

Jan 23

Here’s Why Married Couples Delay Divorce Until the New Year

Reasons to Put Off Divorce Until New Year Rolls Around

Divorce agreement sales from March to June 2020 rose 34% from the same three-month period in 2019. The American Family Survey, a national survey held in part by Brigham Young University, found that 34% of married people said the COVID-19 pandemic increased stress in their marriages. Despite these alarming statistics, early state reports indicate that year-to-year divorce rates are down — are couples waiting for 2021 to file for divorce?

Keeping Children in Mind

Children look forward to Christmas as the most magical time of year. One poll found that 48% of respondents under the age of 18 consider Christmas their favorite holiday. Although it might feel like kids don’t value Christmas for the right reasons, children should never be robbed of a great Christmastime experience.

It’s true that children in split families can look forward to two sets of presents. After a divorce, parents typically need months to get settled into their new lives. Initiating divorce proceedings before the new year can ruin the magic of Christmas for children. This is arguably the No. 1 reason why waiting for the new year is the best time to get a divorce.

Holidays Are Filled With Emotions

As you already know, kids love Christmas. Many adults look forward to the holidays, too. Thanksgiving, Christmas, and New Year’s Eve offer back-to-back-to-back opportunities to take time off from work, visit family members, and enjoy countless home-cooked dishes.

Starting in early to mid-November, society collectively gears up for the holidays. City governments put up Thanksgiving and Christmas decorations around town. Advertisers run ads that mention the holidays. Social media fills up with mentions and pictures of fun, family-friendly holiday activities.

Even if you personally don’t celebrate these holidays, there’s arguably no way to avoid festivities. The holidays are typically associated with happiness, joy, and cheer, and breakups and divorces during Christmastime can evoke particularly negative emotions.

By agreeing to postpone divorce until the new year, you set yourself up for a much less stressful holiday season.

End-of-Year Divorces Can Lead to Unexpected Expenditures

The holidays are inextricably tied to consumer spending. Since you like making family members, friends, and co-workers feel special, you want to buy them nice gifts. Although you might not spend too much on each gift, the costs eventually add up.

According to the National Retail Federation’s annual holiday spending survey, the average American shopper plans to spend $998 on gifts and other holiday-related items.

Well over half of all married couples use the same bank account. It’s easy to unexpectedly spend more money than you initially planned during the holidays. During a divorce, however, soon-to-be ex-spouses may go on spending sprees just to spite their partners.

If you’re contemplating when to get a divorce, saving money is likely one of your greatest concerns. Avoiding a divorce around Christmas is a surefire way to save money.

Splitting Year-End Bonuses

Many workers receive year-end bonuses as a means of incentivizing high performance. Typically, employers need end-of-year sales data to determine whether employees receive bonuses or not.

If you receive your bonus before getting divorced, your spouse will likely be entitled to half of it. In most cases, after you formally file for divorce, you don’t have to share your earnings with your partner. If you’re expecting a big bonus, that’s yet another reason to delay your divorce until January.

Let a Divorce Lawyer Help You Through Your Divorce

Divorce is usually a difficult process. Fortunately, waiting for the new year can make divorce a little bit easier. Keep these benefits of delaying divorce in mind while assessing your own situation.

If you’re currently considering divorce or have recently been asked for one, we’d love to speak with you. Here at the Law Office of Joanne Kleiner, we focus on family law and divorce proceedings. Although divorce is notorious for being a long, difficult process, it doesn’t have to be. Our goal is to make the divorce process as seamless as possible.

The Law Office of Joanne Kleiner is located in Jenkintown, Pennsylvania. To schedule a confidential consultation with divorce lawyer Joanne Kleiner, give us a call at (215) 886-1266 today. You can also fill out our secure online intake form to get started.