Phoenix Family Law Attorney | DeShon Laraye Pullen PLC https://www.deshonpullenlaw.com/ Fri, 24 Nov 2023 19:48:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://www.deshonpullenlaw.com/wp-content/uploads/2018/01/favicon.png Phoenix Family Law Attorney | DeShon Laraye Pullen PLC https://www.deshonpullenlaw.com/ 32 32 Pre- & Postnuptial Agreements: What You Need to Know https://www.deshonpullenlaw.com/blog/2020/10/pre-postnuptial-agreements-what-you-need-to-know/ Thu, 29 Oct 2020 16:32:01 +0000 https://www.deshonpullenlaw.com/?p=11881 Pre & Postnuptial Agreements: What You Need to Know As you plan for your new life as a married couple, the last thing you probably want to think about is what will happen if your marriage ends in divorce. The thought of this makes many couples shy away from the idea of a prenuptial agreement, … Continue reading Pre- & Postnuptial Agreements: What You Need to Know

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Pre & Postnuptial Agreements: What You Need to Know

As you plan for your new life as a married couple, the last thing you probably want to think about is what will happen if your marriage ends in divorce. The thought of this makes many couples shy away from the idea of a prenuptial agreement, even when this document could make things easier in several ways. Many people have not heard of the term, let alone be aware of the benefits of a postnuptial agreement.

To help you ensure a smoother relationship throughout your marriage, and even more so in the event that your marriage ends, here are a few important things to know about pre-and post-nuptial agreements.

What Is a Prenuptial Agreement?

A prenuptial agreement is a voluntary contract entered into before two people get married. Future spouses decide what goes into the contract/agreement without the use of the courts. The agreement stipulates what will happen to certain assets and obligations in the event of a divorce.

Prenuptial agreements address many of the same issues as divorce or separation agreements, including which debts and which assets (such as bank accounts, property, collectibles or art, and vehicles) go to which parties. Prenups often stipulate which assets were brought into the marriage by which parties, officially separating these from marital assets.

The specifics of your prenuptial agreement are customized to your situation. The agreement could discuss anything from who gets the family home to how to share custody of the family dog.

What Is a Postnuptial Agreement?

A postnuptial agreement is very similar to a prenuptial agreement, but the couple enters into it after the wedding day. Postnups are less common and may require more attention to the details as more assets can be involved and complicate matters.

State law governs the division of marital assets, your agreement must take family law into consideration. This agreement may be less about who brought which assets into the marriage and more about how shared assets will be divided.

Why Should You Sign a Prenuptial Agreement?

There is a false assumption that prenuptial agreements are only for wealthy people. While this misconception is common, a prenup can protect the finances and relationship of many couples. A prenup resolves the potentially emotional and difficult negotiations of a divorce before they even get started and helps prevent problems between you and your ex-spouse if anything happens to the marriage.

A prenup is also a great way to get all your cards on the table and promote honesty about financials from the beginning of your marriage. Specific information about each party’s assets and debts, put into writing for both to understand and may help to facilitate healthy discussions about the future. Both sides in the agreement must thorough and forthcoming in order for a prenup to achieve its purpose.

Why Should You Sign a Postnuptial Agreement?

A postnuptial agreement is a good way to protect your finances if you disagree with the way that your state divides up marital assets. If you live in a community property state such as Arizona, for instance, the court would likely divide assets 50/50. If you and your partner prefer a different arrangement, a postnuptial agreement helps make that happen.

Postnups are also a good idea if you signed a prenuptial agreement many years ago, or if circumstances have changed. If one person has received an inheritance or a gift that may get co-mingled with marital property, a postnup could help prevent it from being lumped in with other marital assets.

Where Should You Start?

If you think that a prenuptial or postnuptial agreement could be a helpful tool for your relationship, call on DeShon Laraye Pullen PLC to learn more about these important documents. With more than 30 years of combined experience, we will aid you in crafting the right agreements to strengthen your marriage and prevent future problems. Call today to make an appointment.

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Areas to Consider When You Divide a Marital Business During a Divorce https://www.deshonpullenlaw.com/blog/2020/09/how-do-you-divide-a-marital-business-during-a-divorce/ Wed, 30 Sep 2020 15:52:08 +0000 https://www.deshonpullenlaw.com/?p=11874 Areas to Consider When You Divide a Marital Business During a Divorce Some couples have to divide their businesses during a divorce. This can be a complicated process, so doing your research, and using your knowledge can certainly help the situation. There are three options at your disposal to understand before choosing the best option … Continue reading Areas to Consider When You Divide a Marital Business During a Divorce

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Areas to Consider When You Divide a Marital Business During a Divorce

Some couples have to divide their businesses during a divorce. This can be a complicated process, so doing your research, and using your knowledge can certainly help the situation. There are three options at your disposal to understand before choosing the best option for your situation. These three options are briefly described below:

1. Buy-Out Your Partner

Buying out the other partner is an option many couples prefer. As an example, you have a marital business worth one million dollars, and the divorce agreement has given your partner 60% of the business. In such a case, you pay your partner $600,000 (60% of $1,000,000) and retain full ownership of the business. Although the buyout option is popular, it can cause potential financial strain on one of the parties. Discover a couple circumstances to consider a buyout:

You Have the Financial Means to Support a Buyout

You must have the finances to buy out your partner. Depending on your agreement, you can pay your partner in a lump sum or periodic payments, or provide them assets of equivalent value. For example, you can exchange marital assets for your partner’s business share.

You Believe in the Business

You shouldn’t buy a business on the decline unless you are confident you will turn it around. Ideally, you should only buy out your partner if the business is strong – and you believe in its’ cause or purpose. Thus, you should have an intimate knowledge of the business which may include a professional audit and valuation. Please note that the court cannot order one partner to buy out the other. You must agree with your spouse on any arrangement.

2. Co-Own the Business

Your business relations with your spouse doesn’t have to end after the divorce. You have the option to continue to run the business together post-divorce and divide the proceeds as per the divorce agreement. Below are some circumstances that make co-ownership attractive.

You Want to Keep the Business in the Family

The best way to keep the business in the family is to co-own it. That way, you can eventually transfer it to your children, or other beneficiary, through the development of a trust or other formal documented process.

The Business Is Your Main Livelihood

You shouldn’t sell your main source of livelihood because of a divorce. For example, if you have a law firm that generates the majority of your marital revenue, your finances are at risk of decline if you sell the business.

The Business Is Difficult to Sell

You may continue to co-own the business if it is difficult to sell. Maybe the economy is in a downturn, or the business has numerous debts. There may be other factors impacting this solution as ideal.

4. Sell the Business

A third option, which is also popular, is to sell the business and divide the proceeds. For example, if the marital agreement has given each of you equal shares of the business, you can sell it and divide the proceeds equally. Below are some of the circumstances under which selling the business makes sense.

Your Divorce Is Acrimonious

Co-ownership will be difficult if you are not on good terms with your partner. In such a case, sell the business and disentangle completely from each other.

You Don’t Want to Run the Business

You should also sell the business if you don’t want to run it. Maybe your partner managed the day-to-day operations of the business, and you have no business experience or interest. You may not have the time affordable to manage the business which impacts your need to sell the business.

You Don’t Have the Financial Means

Selling the business may make sense if you cannot afford any dips in performance that may or may not come with the divorce and change in structure. If you don’t want to co-own the business with your partner, and/or your partner wants a lump sum payment for a buyout, you may need to consider selling.

A divorce attorney can walk you through the above options and their application to your circumstances. DeShon Laraye Pullen PLC has more than enough experience with complex divorce issues. Contact us as soon as possible to help you with business division or any other divorce issue.

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Paternity Testing: The Single Parent’s Need for Legal Guidance https://www.deshonpullenlaw.com/blog/2020/08/paternity-testing-the-single-parents-need-for-legal-guidance/ Fri, 28 Aug 2020 15:28:33 +0000 https://www.deshonpullenlaw.com/?p=11870 Paternity Testing: The Single Parent’s Need for Legal Guidance Paternity of a child is not always as easy to determine as people would like. The test may become necessary even when one of the parents has no doubts. Either parent may deny their role out of fear, anger, or for many other reasons. A paternity … Continue reading Paternity Testing: The Single Parent’s Need for Legal Guidance

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Paternity Testing: The Single Parent’s Need for Legal Guidance

Paternity of a child is not always as easy to determine as people would like. The test may become necessary even when one of the parents has no doubts. Either parent may deny their role out of fear, anger, or for many other reasons. A paternity test can prove helpful for some, but it can also add legal concerns. Learn how legal guidance can help parents go through this complicated process.

Possible Unexpected Results

The man who proves to be the father may not be the one expected. If a paternity test proves the father is not the husband, the issue could lead to complications like a divorce. It is also possible for testing to not provide an accurate response. Home testing kits rely on people performing them correctly, and not every medical office has the same quality of processing.

Parents that hire legal representatives can gain court orders for testing to take place through a facility the court trusts and accepts. The results become court-admissible, so they are useful in divorce proceedings and other hearings. The guidance of an attorney can extend beyond the paternity test so mothers know what steps they should take next.

Potential Custody Issues

Custody battles may occur once one of the parents has proof of the father’s identity. Parents who have an attorney ready before the test takes place are in a better position to protect their custodial rights. It may be beneficial to make the first step and hire an attorney so they can order the test and begin custody planning before the potential father starts the process for himself.

Planning early allows consideration for acceptable arrangements for custody. The parent can get the help they need from their attorney to create several options to present to the other parent. Early research gives a legal team the time to gather arrest records and other evidence of safety concerns that may exist for the child concerning their father or paternal grandparents.

Preparations for Support

Child support considerations can also cause single parents to consider paternity testing. Not all single parents need additional financial help, so it is not always worth the time and effort to worry about the test.  However, some can only pay the bills and cover all the expenses of raising a child with contributions from the other parent.

Legal assistance can help parents to manage child support cases as well. In Arizona, parents only pay child support if they have the ability. The court uses a self-support reserve test. The test was designed to ensure that the person paying child support will have enough money to also cover their own basic needs.

The self-support reserve means the parent must earn an income that is at least 80 percent of the current minimum wage for a full-time job. The court reviews the income at the time of the request for support and not what the parent made when the child was born.

An attorney can explain child support laws and the potential amount possible for the parent to receive in child support payments. The payments depend on the income of both parents with some considerations for children with special needs and other situations. The parent can make an informed decision about whether to pursue paternity testing and child support.

Paternity testing helps with even more than support and custody issues; it can give mothers access to family medical histories for their children. A child may become eligible for family military benefits or gain inheritance rights. At the law offices of DeShon Laraye Pullen PLC, we can help you decide if paternity testing will benefit you and your child. Contact us today to schedule a consultation.

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How to Get Private School Costs Included in Child Support https://www.deshonpullenlaw.com/blog/2020/08/how-to-get-private-school-costs-included-in-child-support/ Tue, 04 Aug 2020 00:11:14 +0000 https://www.deshonpullenlaw.com/?p=11860 How to Get Private School Costs Included in Child Support During a divorce, the court will not automatically include private school costs in child support calculations. You have to convince the court of the need for private school. Below are some things you may need to prove to strengthen your case. You Want to Maintain … Continue reading How to Get Private School Costs Included in Child Support

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How to Get Private School Costs Included in Child Support

During a divorce, the court will not automatically include private school costs in child support calculations. You have to convince the court of the need for private school. Below are some things you may need to prove to strengthen your case.

You Want to Maintain the Status Quo

You have a better chance of success if the child is already in a private school. Your divorce should have minimum impact on your kids. If the child is already in a private school, then you will disrupt their lives and education if you move them to a public school. The court may agree with you if the child has been in private schools since they started formal education.

The Child’s Religion Requires It

Another tip is to prove private school is necessary for the child’s religious upbringing. This argument may work if you can prove:

  • Both parents are members of the same religious organization
  • You agreed to bring up the child in the same religion

You have the best chance of success if you are a member of the same religion for a long time. However, you might not succeed if you recently joined the religion during your divorce.

You Are Involved in the Child’s Education

You may also need to prove your involvement in the child’s education. The court may believe your involvement if you prove:

  • You help the child with homework
  • You helped choose the current school
  • You attend parents meetings at the school
  • You help the child with school projects

The involvement may show the court you understand the educational needs of the child.

The Child Has Special Needs or Gifts

Some children have special needs or gifts that private schools are more equipped to handle than public schools. If you have such a child, then you need to prove how they will benefit from the private school. For example, your child may need a private school if:

  • Your child is a gifted artist and the private school has a great art program
  • Your child has a disability the private school can accommodate better than public schools

You need to prove both the special need or gift and how a private school can meet it better than a public school. For example, you can use an educational expert as a witness to help the court understand the issue better.

Your Older Children Attended Private School

Another tip is to show the court you have older children who attended private school. This can help you prove:

  • You have always valued private school
  • Affordability is not an issue (if your financial circumstances haven’t changed)
  • You want the same education for all your children

You may have an even stronger case if both of you also attended private schools. Parents often want the same (or better) education for their children they had.

The Noncustodial Parent Can Afford It

Lastly, you also need to prove the noncustodial parent’s ability to pay private school tuition. Their ability depends on various factors, such as:

Income

Include income from all sources. For example, you should include:

  • Salaries
  • Trust income
  • Commissions and benefits
  • Profit from businesses
  • Capital gains on properties

For a parent who is voluntarily underemployed or unemployed, the court may compute the income the parent should earned under normal circumstances.

Other Obligations

The court will also consider other financial obligations of the noncustodial parent. Other obligations include children from previous relationships and spousal support.

An experienced divorce lawyer can help you prove your case and get the best education for your child. DeShon Laraye Pullen PLC has a wealth of experience in family law issues. Contact us today so we can review your case and advise you on the best way forward.

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How Are Retirement Benefits Divided in an Arizona Divorce? https://www.deshonpullenlaw.com/blog/2020/07/how-are-retirement-benefits-divided-in-an-arizona-divorce/ Mon, 20 Jul 2020 17:03:49 +0000 https://www.deshonpullenlaw.com/?p=11849 How Are Retirement Benefits Divided in an Arizona Divorce? Going through a divorce can be a challenging ordeal.  Not only is it extremely stressful trying to figure out who gets what, but when retirement benefits are at stake, the whole process becomes that much more tedious. Trying to figure out what interest your spouse can … Continue reading How Are Retirement Benefits Divided in an Arizona Divorce?

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How Are Retirement Benefits Divided in an Arizona Divorce?

Going through a divorce can be a challenging ordeal.  Not only is it extremely stressful trying to figure out who gets what, but when retirement benefits are at stake, the whole process becomes that much more tedious.

Trying to figure out what interest your spouse can acquire in your retirement benefits and how to protect those interests can be a complicated issue, especially when taking into account the specific laws and the numerous retirement plans available.

That is why, in this post, we will dive into the complexities of retirement benefits, how they are divided in a divorce, and how the law offices of DeShon Laraye Pullen PLC can help you.

Arizona Law and Community Property

Arizona is considered a community property state. This indicates that generally, spouses share equal ownership of anything that is purchased, acquired, earned, or paid for during their marriage.  So even if one spouse paid for some property, or it is only their name on a title, if it was acquired during the marriage, then most likely, both spouses own it equally.

According to these Arizona laws, retirement assets, including pensions, are treated the same way as other community property, meaning that in a divorce, they are divided equitably between the spouses. However, in order to figure out how it will be shared, you need first to figure out the type of retirement plan you have.

Types of Retirement Benefits

Even though there are many types of private pension plans, the two most common types of retirement accounts include a “defined benefit” plan or a “defined contribution” plan.

Defined Contribution Retirement Plan

This is a plan where you invest money that grows over time, such as a 401(k) or an IRA. It does not promise a specific dollar amount at retirement, but rather employees or employers can contribute to the plan, and those contributions are invested on behalf of the employee. These plans fall and rise based on the investment’s performance.

In Case of Divorce

In cases where you have a defined contribution retirement plan, if a divorce occurs, you are entitled only to the value of the account.

Defined Benefit Plan

A defined benefit plan is a system where you invest money into a program that will provide you with a specific benefit at a certain age, such as a pension. This benefit can be a dollar amount, or it can be based on a computation that takes into consideration your years of service and your salary.  Often, these defined benefit plans make up 10% of plans in which employees are enrolled in.

In Case of Divorce

If you have a defined benefit plan, you may be entitled to the value of the account in addition to or in place of any monthly pension payments. However, this will depend on the terms of the plan.

Division of Retirement Benefits

When a married couple divorces and one spouse is enrolled in a private pension plan, the spouse that is not enrolled can prepare a special order referred to as a Qualified Domestic Relations Order (QDRO) to create a legal right into the retirement plan proceeds.

Even though state law usually governs divorce proceedings, retirement plans are governed by federal regulations known as the Employee Retirement Income Security Act (ERISA), which sets up the requirements for a QDRO. And when these requirements are met, the QDRO will direct the plan administrator how to split up the community property portion of the retirement benefit accounts. Simply put, retirement plans must comply with federal laws, and even the judge in a divorce proceeding cannot order the plan administrator to do anything that is not allowed in the plan.

In the alternative, to avoid invading retirement plans, if both parties agree to it, the non-employee spouse can accept other assets that are equal in value to the retirement benefits they would have received. However, it is important to discuss all of these options with your attorney before proceeding with one course of action over another.

Qualified Domestic Relations Order

To have your benefits paid out, your Qualified Domestic Relations Order must meet all the requirements. At a minimum, these QDROs must include the following:

  • The name of the member and their last known mailing address
  • The name of each alternate payee covered by the Order and their last known mailing address
  • A method that determines the amount of the member’s severance, survivor, or retirement benefits to be paid by Arizona State Retirement System (ASRS) to each payee covered by the Order
  • The period or the number of payments to which the Order applies.

During the divorce proceedings, both spouses will identify which assets they want to be divided, including the retirement benefits. If you are awarded part of your former spouse’s retirement account, the court will issue a QDRO, which will then be submitted directly to your former spouse’s retirement plan administrator. If the QDRO is accepted, the plan will let you know right away. If the plan rejects the QDRO, they will provide you with a clear explanation as to why and what steps you need to take to get it approved.

Other Retirement Plans

Qualified Domestic Relation Orders are specifically for private ERISA plans. If you have a government-sponsored retirement plan such as a Federal Employee Retirement Systems (FERS) or the ASRS, these are handled by a different process called the Court Order Acceptable for Processing (COAP).  That is why it is so crucial to discuss your retirement plans with an experienced attorney who understands the differences between each of them and which laws apply.

How Can a Family Law Attorney Help?

If you are heading towards a divorce, you need a knowledgeable lawyer on your side. Dividing retirement benefit accounts can be a very tedious and complicated process. Not only is it imperative to ensure that the special orders are filled out correctly, but that they are also in agreement with the numerous laws and plan requirements.

For these reasons, if you are looking into dividing your retirement benefits, do not wait any longer. Contact an experienced family law attorney today by calling the law offices of DeShon Laraye Pullen PLC at 602-252-1968. Let us provide you with the personalized legal representation that you need during this difficult time.

 

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Can I Date During the Divorce Process? https://www.deshonpullenlaw.com/blog/2020/07/can-i-date-during-the-divorce-process/ Fri, 03 Jul 2020 17:18:38 +0000 https://www.deshonpullenlaw.com/?p=11852 Can I Date During the Divorce Process? No definitive answer exists on whether you should date during the divorce process. If you’ve been living like roommates with your soon-to-be-ex or separated for some time, it’s natural for you to want to move on with your life and restore your faith in love and relationships. Yet, … Continue reading Can I Date During the Divorce Process?

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Can I Date During the Divorce Process?

No definitive answer exists on whether you should date during the divorce process. If you’ve been living like roommates with your soon-to-be-ex or separated for some time, it’s natural for you to want to move on with your life and restore your faith in love and relationships. Yet, dating during the divorce process can have legal consequences, so you need all the information to make the best choice for your circumstances. We’ve developed this short guide to help you examine the potential consequences of dating before your divorce is finalized. We also provide some useful tips if you choose to date during the divorce process.

Child Custody

During the divorce process, your spouse will likely put everything you do related to parenting under the microscope if you have children. If you are struggling with agreeing on the terms of custody, including the amount of parenting time for each person, you can expect your spouse to use your new relationship against you. Whether it’s true or not, your spouse could argue that your children aren’t getting needed attention because you are spending too much time with your new partner.

As you are negotiating a custody arrangement, your new relationship might also factor into your parenting schedule. Sometimes, those going through a divorce make choices to give them more time with a new partner. If the new relationship doesn’t last longer than a few months or even a year, parents often regret using this relationship to guide decisions about parenting time.

Spousal Support

If your spouse finds out you are dating during the divorce process, you could suffer financially if you expect to be on the receiving end of spousal support payments. Courts typically view spousal support as a temporary action to give the lower-earning partner the time to rebuild their life and find solid financial ground. The ultimate goal of spousal support is to allow one enough time to get back on their feet to independently support themselves. If you begin dating a new person during your divorce, you risk the court ordering a lower amount of support. This is especially true if you choose to move in with a new partner prior to finalizing your divorce. In fact, your spouse might try to stop your spousal support payments completely.

If you earn the most income in your marriage and you have to pay spousal support, your ex might be hurt by your new relationship and want to punish you. In these cases, you can expect a hard fight for the maximum amount of support that the court will award.

Property Division

Part of the divorce process is dividing real estate, personal property, and financial assets between you and your spouse as you separate your lives. Dating during divorce could result in receiving fewer assets in the divorce. Many spouses assume that if their soon-to-be-ex is dating, he or she is also using marital assets. This could mean using money to take trips, go out to dinner, or buy expensive gifts.

In some cases, this means supporting a new partner financially, shopping, and spending more on health and beauty services. It doesn’t matter if these things are true or not. If you are dating and your spouse perceives them to be true, it can turn an amicable divorce into a nasty fight over marital assets. In many cases, couples come to the joint realization that it’s time to end their marriage. They work together to make a clean break. For example, you might offer to pay your spouse one lump sum of spousal support in exchange for keeping the house, or vice versa. A new relationship on either side can quickly take these friendly agreements off the table.

Emotional Considerations

Aside from the death of a loved one, divorce ranks near the top as one of the most difficult events that some people go through in life. Even when couples go through a divorce on the best terms possible, emotions run high. A new relationship on either side can trigger bigger emotions, leading to far more tension and conflict during your divorce. If you choose to date, your spouse might want to punish you in every way they can–by using kids, support, assets, and more. He or she might choose to speak out more during meetings. Not only can this make your divorce more emotionally draining, but the longer your divorce takes the more expensive it is, too.

Tips for Dating During a Divorce

Arizona is a no-fault divorce state, so no law prohibits you from dating during the divorce process. Ultimately, only you can make the decision about whether to date during the divorce process. If you know dating will set off your spouse, it’s probably in your best interest to wait until your divorce is finalized. On the other hand, if you’ve met someone so incredible and you choose to spend time together, you need to be cautious. In light of the above information, these tips can help you keep the divorce drama to a minimum if you choose to date:

  • Avoid public places with your new partner, especially those close to home or places you used to go with your spouse.
  • If you have children, keep them away from your new partner until your divorce is finalized to help ensure your spouse doesn’t learn about your relationship.
  • Take things slow and avoid moving in with your new partner until after you are divorced to prevent custody and support issues.

Contact an Experienced Divorce Attorney Today

Divorce is an emotionally traumatic experience that prompts many to move on with life as soon as possible, even if that means dating before the papers are finalized. Dating during the divorce process sometimes impacts divorce agreements and creates more tension. Ensure you are making the right choice for your situation by consulting with an experienced divorce attorney. The skilled legal team at DeShon Laraye Pullen PLC understands your desire to live, laugh, and love, and we are here to guide you through your divorce. Contact us today online or at 602-252-1968 to schedule a consultation to discuss your divorce.

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I Don’t Want to Lose My Business During a Divorce. What Can I Do?  https://www.deshonpullenlaw.com/blog/2020/06/i-dont-want-to-lose-my-business-during-a-divorce-what-can-i-do/ Tue, 16 Jun 2020 18:11:50 +0000 https://www.deshonpullenlaw.com/?p=11840 I Don’t Want to Lose My Business During a Divorce. What Can I Do? Going through a divorce is trying for everyone involved, but worrying about losing a successful business throughout the process can make matters worse. Business owners risk losing everything they have built during a divorce because of Arizona’s community property laws or … Continue reading I Don’t Want to Lose My Business During a Divorce. What Can I Do? 

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I Don’t Want to Lose My Business During a Divorce. What Can I Do?

Going through a divorce is trying for everyone involved, but worrying about losing a successful business throughout the process can make matters worse. Business owners risk losing everything they have built during a divorce because of Arizona’s community property laws or because an owner has to raise cash. Without a prenuptial agreement in place to protect your business, your spouse has a stake, even if he or she did not contribute the blood, sweat, and tears that made your business a success.

If you are having marital issues and suspect a divorce might be in your future, it’s imperative that you take action now to preserve your business. Below we provide some strategies you can employ.

Strategies to Preserve Your Business During a Divorce

If you are married and live in Arizona, your business is likely a joint asset, unless you have a prenuptial agreement that states otherwise. The following strategies can help you to minimize financial losses during a divorce:

Keep Impeccable Records

If you aren’t keeping detailed financial records and you haven’t been separating business and family finances, now is the time. Entanglement between business and family finances is a bad practice that becomes even more difficult when divorce is involved. Poor record keeping creates challenges when you are trying to accurately value your business and split assets during a divorce. You have no chance of buying your spouse out of the business or coming to a compromise when you cannot distinguish what is what. Additionally, accurate and detailed records support your case in front of a judge, if you cannot reach an agreement prior to your divorce hearing.

Pay Yourself Well

Often times business owners take a small salary and reinvest profits to build and grow their business. If you continue to pay yourself a low salary, you potentially give the court a reason to give more of your business’s profits to your spouse.

Arrange for an Independent Business Valuation

Whether you are planning to file for divorce or amidst proceedings, you need to know exactly what you are working with before you can make any concessions, compromises, or decisions. Hire a neutral valuation specialist to review your financial records and place a value on your business. You may be able to get a court-appointed specialist if one of you has already filed for divorce. Always get a second opinion before you agree on a particular value, so any decisions about distributing profits start from an agreed-upon number.

Reduce Your Spouse’s Role in the Business

The greater a role your spouse has in your business, the stronger case they may have against you to receive a share of the profits. The same applies if your spouse has worked at the business for a long time. Simply firing your spouse is not be the best course of action, so you should definitely consult with an experienced divorce lawyer.

Compromise with Other High-Value Assets

Sometimes divorces are so contentious, that one spouse will figuratively do everything to blow up assets, which hurts both and impacts the lives of children. If you are on reasonable terms and discuss an amicable situation, consider compromising other assets to avoid having to dissolve or lose your business. For example, you might offer your spouse your house, retirement accounts, a vacation home, or all the vehicles in exchange for complete ownership of the business. If your business continues to thrive, you can replace high-value assets more easily than rebuilding a business. Compromise doesn’t have to be all or nothing. You can also compromise a portion of profits for a minimal amount of time to retain ownership. Before you proceed with potential compromise, you should consult an experienced lawyer.

Extend Your Payments to Your Spouse

If your divorce has been finalized and you owe your spouse a significant amount of business profits because of a buy-out, paying it all at once could mean financial catastrophe. At the very least, it could hinder growth. Instead, arrange to pay your ex for his or her share of the business over time. You can make monthly or quarterly payments from your business’s cash flow or if necessary, secure a business loan.

You Don’t Have to Lose Your Business, Contact a Divorce Attorney Today

Divorce is an unpleasant life event that can be devastating to business owners. Some couples who own businesses manage to succeed personally and professionally. Yet, in other cases, the marriage falls apart while the business thrives, forcing couples to figure out how to divide the business without dissolving it. Divorces involving businesses are especially complicated and expensive, especially if the case needs to go in front of a judge. The skilled divorce attorneys at DeShon Laraye Pullen PLC understand the gravity of your situation, and we are here to help. Contact us today online or at 602-252-1968 to schedule an initial consultation to discuss your marital status, the particulars of your business, and potential strategies to help you avoid losing your business during a divorce.

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Can I Relocate with My Kids After My Divorce? https://www.deshonpullenlaw.com/blog/2020/06/can-i-relocate-with-my-kids-after-my-divorce/ Fri, 05 Jun 2020 16:40:40 +0000 https://www.deshonpullenlaw.com/?p=11838 Can I Relocate with My Kids After My Divorce? Divorce is a major life event that results in a myriad of changes. A former spouse might get a new job, meet someone new, or simply want to leave Arizona to start a new life. When minor children are involved, moving out-of-state will drastically affect the … Continue reading Can I Relocate with My Kids After My Divorce?

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Can I Relocate with My Kids After My Divorce?

Divorce is a major life event that results in a myriad of changes. A former spouse might get a new job, meet someone new, or simply want to leave Arizona to start a new life. When minor children are involved, moving out-of-state will drastically affect the current child custody arrangement. Some parents maintain an amicable relationship and work out the details when one wants to relocate. In other cases, parents need to look to the courts to come to a new custody arrangement. Below we provide more information about the factors that can impact your ability to relocate with your kids after divorce.

Relocating with Children After Divorce

If you want to relocate your kids from Phoenix to Scottsdale or from Gilbert to Mesa, you will not need to update your child custody arrangement. Arizona law considers relocation as a move that is at least 100 miles away or out-of-state. The parent who wishes to move has the legal duty to notify the other parent of their intentions via certified mail 45 days in advance of their move. The other parent then has the time to petition the court to prevent the move from occurring. Ultimately, the court will decide whether you can relocate with your kids.

If your former spouse petitions the court to stop you from moving, you will have to attend a hearing. Both of you will have an opportunity to present your case by providing testimony from family, friends, and others. Once the court has all the facts, the judge can make an informed decision about relocation.

Factors that Impact a Court’s Decision Concerning Relocation

Arizona courts do not make child custody decisions lightly, especially those involving moving with children. A judge will examine multiple factors, placing the best interest of the child as the top priority. They include:

Motivation

Courts favor some motivations for relocation more than others. A parent who wants to move to get a new job, especially one that offers more pay and more opportunities often has a better chance of relocating than a parent who simply wants to move to get a fresh start.

Child’s Quality of Life

The court will examine if relocation will lead to an improved quality of life for the child. What does improved mean? It varies from case to case, but some examples include:

  • Access to better schools
  • Access to more family
  • Access to better childcare
  • Ability to live in a more financially secure household

Parental Relationships

Judges closely evaluate a child’s relationship with each parent. Parents who don’t spend time with their children after divorce, regularly miss or give up their visitation time, or have unhealthy abusive relationships with their children will have a challenging time preventing relocation and likely cannot move with their child if they have full physical custody.

Sibling Relationships

Moving kids away from one or more siblings or half-siblings can be a traumatic life event. Judges carefully weigh relationships kids have with their siblings before modifying a custody arrangement that allows a parent to relocate with their kids. Additionally, the judge will look at how well the siblings who might be moving together get along. Will relocating place an older child in a caretaker role, perhaps impacting the one child in a negative way?

Impact of Less Visitation

One of the consequences of relocating with kids is that the other parent will have less visitation. If the relationship is strained, this may not impact the court’s decision. Yet, kids who spend regular or equal time with the other parent have some type of bond, potentially a strong one. The judge will carefully evaluate the potential emotional consequences a child can suffer as a result of not getting as much time with the non-moving parent.

Child’s Adjustment Period

Moving to a new home and a new community comes with an adjustment period for everyone involved. The adjustment period that a child goes through factors into a judge’s decision about relocation. Many children easily adapt to new situations, but not all do. The judge will consider how well and how quickly your child(ren) will adapt to their new life.

Child Preference

Once a child reaches a certain mix of age and maturity, their preference holds weight with the court. Children, even older ones, don’t always make choices in their best interest, so your child’s preference does not mean the judge will approve or deny relocation. Yet, the judge will carefully listen to your child’s preference and their reasons why and consider it with other factors, especially his or her best interest.

Other Factors

Listed above are the most common factors Arizona courts review when making decisions about relocation. Yet, these are not always the only factors. Each child custody case involving relocation is different. Relationships and underlying facts are different. The court might wish to examine other things that apply to a specific case. For example, a parent who wishes to relocate who has a criminal history or a history plagued with drug and/or alcohol use might find it difficult to move with kids. A history of domestic abuse, sexual abuse, and instability can also prevent a judge from modifying a custody arrangement.

Once the court has examined all factors related to you relocating with your kids, he or she will make a ruling about whether you can move or not. If the judge decides you can relocate with your kids, your child support order will be adjusted accordingly.

Relocating with Kids? Contact Us Today to Learn About Your Rights

Co-parenting and dealing child custody matters after a divorce can be overwhelming and stressful for parents and children alike. If you are seeking to relocate out-of-state with your kids, or your former spouse wishes to relocate with your child, contact us today online or at 602-252-1968 to learn more about your rights and the process of modifying a child custody order. The experienced family law attorneys at DeShon Laraye Pullen PLC can help.

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7 Things a Prenup Can (And Can’t) Do https://www.deshonpullenlaw.com/blog/2020/05/7-things-a-prenup-can-and-cant-do/ Sat, 30 May 2020 15:08:37 +0000 https://www.deshonpullenlaw.com/?p=11836 Planning to marry the one you love is an exciting time and comes with minimal to massive preparation depending on the couple. No one gets married thinking that one day they will separate or divorce. Yet, life happens. Couples who want to define their rights and responsibilities in the event of divorce or separation often … Continue reading 7 Things a Prenup Can (And Can’t) Do

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Planning to marry the one you love is an exciting time and comes with minimal to massive preparation depending on the couple. No one gets married thinking that one day they will separate or divorce. Yet, life happens. Couples who want to define their rights and responsibilities in the event of divorce or separation often choose to create a prenuptial or premarital agreement, more commonly referred to as a prenup.

When people see prenups discussed in movies or television, or they hear about them, they often associate them with money. Yes, money does play a role in prenups, but couples use prenups to define multiple elements of their divorce or separation. Below we’ve provided more information to dispel some common myths about prenups with 7 Things a Prenup Can (and Can’t) Do.

What A Prenup Can Do

1. Define Property Rights

Arizona is a community property state, which means that in the event of a divorce, couples must equally divide all of their property and assets. A prenuptial agreement supersedes state law and allows couples to specify their assets, liabilities, and income as separate from community property. For example, consider a couple that has two vehicles, a home in Phoenix, a vacation home in Sedona, and sizable savings scattered throughout brokerage accounts and IRA accounts. Under Arizona law, the distribution of these assets would require each person receiving half of the proceeds of the sale, or buying the other person out of their half to keep the property.  A prenup might outline that each person gets one home, each person gets one vehicle, and each person gets a portion of savings. Yet, the split doesn’t need to be equitable. The couple could decide that one person gets all the physical assets and the other gets all the financial assets.

2. Define Limits on Spousal Maintenance

Couples can use a prenup to define the amount of spousal maintenance one party receives and the other pays. Arizona also allows both parties to waive their rights to spousal support under the law. Yet the prenup must adhere to certain legal requirements. They include:

  • Each party must be represented by independent legal counsel.
  • Each party must enter the agreement with full disclosure.
  • No party can enter the prenuptial agreement with no fraud or duress.
  • The limits or waiver of spousal maintenance cannot result in an unconscionable situation.

Most challenges to prenuptial agreements concern spousal support. This often occurs because a couple accumulates more assets during their marriage, which the agreement does not deflect. An experienced divorce lawyer can draft a prenuptial agreement that can help couples avoid issues later on.

3. Define Inheritance Rights in the Event of Death

Arizona law allows couples to waive or designate inheritance rights in the event of a death. This is typically done in tandem with the making of a will or trust that is enforceable under Arizona probate law, too. Prenups also allow couples to designate ownership and beneficiary rights from a life insurance policy. Without a prenup, spouses legally inherit 50 percent of all assets because Arizona is a community property state. A prenup allows spouses to designate where the other half of their property goes upon their death. Sometimes couples agree on waiving rights when one or both have children from a previous marriage.

4. Address Tax Matters

An Arizona prenup can include provisions that address tax matters. For example, a couple can designate who must prepare their joint tax return and designate what portion of taxes each must contribute. This is especially common when one person has a significantly higher income than the other. Couples can also assign property tax burden by agreeing that each is responsible for taxes on a different property. Couples can define specific tax responsibilities as long as they comply with current tax law.

What a Prenup Can’t Do

5. Limit Child Support

Parents have a legal duty to financially support their minor children. Prenups cannot contain any provisions that limit or adversely impact child support in the event of separation or divorce. Arizona courts retain jurisdiction to create and enforce child support orders for the benefit of a child. The court will calculate child support based on Arizona Child Support Guidelines. Yet, parties can include additional support in a prenup to account for things like extracurricular activities, private music lessons, private sports instruction, travel, and more.

6. Penalize Adultery

In some states, couples can include a lifestyle clause in their prenup that penalizes a person for their infidelity. Penalties might include a lesser amount in assets or the cheater paying the other with property or money for their infidelity. Arizona prenups cannot have infidelity clauses. Arizona is a no-fault divorce state. Couples can assign infidelity or adultery as the reason for their divorce, but courts cannot enforce specific penalties on those who cheat within their marriage. A prenup with an infidelity clause violates Arizona law, making it unenforceable.

7. Hide Assets

Sometimes when a wealthy spouse enters into a marriage, he or she attempts to use a prenup to hide assets instead of protecting them. This occurs by creating a prenup that has favorable terms and urging the other person to sign the agreement without fully disclosing all valuable assets. The law requires that each party fully disclose their true financial pictures, including assets and liabilities. This way each party can make a well-informed decision about whether to sign the prenuptial agreement as it is written. Without full disclosure, prenups are unenforceable by the court.

Contact DeShon Laraye Pullen PLC Today to Draft Your Prenup

Congratulations on your upcoming wedding. We have more than 30 years of combined experience in family and divorce law and are here to help you draft an enforceable prenup to protect your personal and financial property in the event of divorce or separation. Contact us today online or at 602-252-1968 to schedule an initial consultation to discuss the terms that are most important for your prenup.

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Virtual Mediation During The COVID-19 Pandemic https://www.deshonpullenlaw.com/blog/2020/05/virtual-mediation-during-the-covid-19-pandemic/ Fri, 15 May 2020 14:39:21 +0000 https://www.deshonpullenlaw.com/?p=11834 When resolving divorce-related matters, alternative dispute resolution is often more effective than litigation. Mediation has been uniquely beneficial in light of Covid-19 court modifications. Maricopa County Family Court judges only mandate the process for cases involving children, but they recommend it for all family court issues. While we wait for the Family Court to resume … Continue reading Virtual Mediation During The COVID-19 Pandemic

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When resolving divorce-related matters, alternative dispute resolution is often more effective than litigation. Mediation has been uniquely beneficial in light of Covid-19 court modifications. Maricopa County Family Court judges only mandate the process for cases involving children, but they recommend it for all family court issues.

While we wait for the Family Court to resume its normal operations, mediation remains the most viable forum for moving your case forward. The original Covid-19 Pandemic modification order recommended that mediations proceed “telephonically.” Attorneys and clients have since found that the Zoom platform is a successful alternative.

What is Zoom?

While nearly everyone in every state was under a stay-at-home order, Zoom virtual gatherings became the go-to alternative to face-to-face meetings. In April, Zoom founder Eric S Yuan announced that the platform increased its reach from 10 million daily users in December 2019 to 200 million by March 2020. That was largely due to the number of employees, college students, and school children working from home during the e pandemic.

You can access a Zoom virtual meeting via Apple, Android, Chrome, or iOS operating systems. You reach the platform by clicking a link shared via text message or email. Once you’re in a meeting, on-screen features allow users to chat or share relevant documents. Microsoft, Facebook, Skype, and other companies have software that offers similar meeting experiences.

Virtual ADR

Mediation is an alternative dispute resolution forum for couples who prefer to reach an agreement without litigation. A trained mediator listens to each side and encourages discussion. Participants address child support, alimony, property division, child custody, child visitation, and other divorce-related issues. While the process doesn’t always resolve pending issues, it facilitates communication. It often opens the door to more productive negotiation.

In pre-Covid-19 mediation, you, your spouse, and your legal representatives would meet in a neutral setting. Zoom accomplishes the process virtually. It allows you and your spouse, a mediator, and your legal representatives to interact while maintaining a social distance. Until the courts restore their normal schedule, Zoom is helping to resolve cases that would otherwise have been put on hold.

What About Privacy?

Zoom and similar platforms have changed the way Americans participate and interact. It allows people to do their jobs and schoolwork without leaving home. Families and organizations connect through Zoom social gatherings. It’s an innovative communication tool, but many people have encountered personal privacy issues.

Parental Privacy

Since the Covid-19 pandemic began, children are always at home instead of in school or in someone else’s care. As participants often disclose details that young children shouldn’t hear, it presents a privacy challenge for parents. You could resolve the problem by accessing a meeting from a different room or asking a trusted, properly-masked relative to supervise your children. A mediator could schedule periodic breaks for parents to check on their children.

Face-to-Face Anxiety

If the idea of extended screen-time with your estranged spouse makes you feel uncomfortable or anxious, Zoom offers several coping options. The mediator can set up breakout sessions for separate conversations in private “rooms.” To prevent accidental or intentional access, they can “lock” your room. The mediator can also mute one or all participants in a group session.

As a participant, you may take a break by muting your own audio. If you prefer to be heard and not seen, you can turn off your camera for a few minutes. Depending on how you registered for the session, other participants will see a photo or a blank space instead of your live face. While you’re muted or off-camera, you can still hear the session leader. You may also stay engaged by sending chat messages to an individual or to the group.

Zoom Isn’t Appropriate for Domestic Violence Cases

If you have domestic violence concerns, Zoom is not the right forum for your meeting. The process can be unproductive when an abuser and victim still share living quarters. Even if you live in separate homes, the court system can’t predict or prevent an abusive spouse’s actions.

If you have domestic violence issues that you deem an emergency, Maricopa County Family Court is open for services it considers “essential.” These include protection order applications, hearings for protection orders, motions for temporary emergency orders, and hearings for emergency motions. The court has established special protocols for these procedures.

Contact Attorney DeShon Laraye Pullen

If you would like to know more about Zoom mediation or you have another divorce-related question, reach out to us for more information. DeShon Laraye Pullen is a Certified Family Law Specialist. Our Phoenix and Scottsdale attorneys help families resolve divorce, post-divorce, and decree modification issues. We handle every client’s case with compassion and dedication.

To schedule a consultation, call us at 602-252-1968 or complete our Contact Form.

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