AAML NJ Blog

The Impact of Alcohol Misuse on Custody Cases: Tools and Strategies for New Jersey Courts

Juffer Bornales — Thu, 02 Apr 2026 12:00:00 GMT

By Soberlink | AAML New Jersey Bronze Sponsor

In custody disputes, few issues shift the trajectory of a case quite like alcohol misuse. Once it enters the picture, it tends to overshadow nearly every other consideration, pulling the court's attention, the parties' energy, and the bulk of litigation toward one central question: are the children safe? For New Jersey family law attorneys, knowing how to handle these situations with the right evidence and the right tools is what separates a well-managed case from one that drags on for months without resolution.

What New Jersey Courts Are Actually Looking For

Under N.J.S.A. 9:2-4, New Jersey courts decide custody based on the best interests of the child, which means they're weighing a broad set of factors: the fitness of each parent, the safety of the home environment, any history of domestic violence, and substance use. These factors often show up directly in common child custody order provisions, and when alcohol misuse is part of the picture, it can reshape both legal and physical custody arrangements in significant ways.

The difficulty, though, is that alcohol misuse is notoriously hard to pin down with solid evidence. A parent might hold it together during a court-ordered evaluation but struggle at home, and self-reporting is essentially useless as a reliability measure. Standard testing methods like urinalysis or hair follicle tests carry real limitations as well, offering a snapshot rather than a full picture, with detection windows that vary widely depending on the method and the individual.

That gap between what's alleged and what can actually be verified has been a persistent frustration in family court, but it's one that modern monitoring technology has gone a long way toward closing.

How Alcohol Monitoring Technology Helps Streamline Cases

Alcohol monitoring tools have become a reliable fixture in New Jersey custody proceedings because they give courts something far more useful than a one-time test result: a continuous, verifiable record of a parent's alcohol use over time.

Soberlink is the system family law professionals leverage most often, and for good reason. It uses fuel cell technology, the same science behind law enforcement breathalyzers, so the accuracy is solid. What makes it particularly well-suited for custody cases, though, is everything built around that core test: facial recognition to confirm who's actually taking the test, built-in tamper sensors, and instant results sent to contacts listed on the monitoring agreement, leaving no room for dispute over who tested or when.

Where Soberlink Shows Up in New Jersey Cases

There are a few common scenarios where Soberlink gets brought into a custody case, each serving a slightly different purpose.

Court-ordered monitoring is probably the most straightforward path. A judge orders a parent to use Soberlink as a condition of their parenting time, particularly when there are credible concerns about drinking, and testing schedules are typically built around the custody calendar so that compliance can be confirmed before exchanges or overnight visits.

Consent agreements are increasingly common as well. Parents, working with their attorneys, agree to incorporate monitoring into a negotiatedparenting plan, which keeps the matter out of court, moves the case forward more efficiently, and signals good faith on the part of the parent being monitored — all things judges tend to notice and appreciate.

Guardian ad litem and evaluator recommendations offer another path into monitoring. When a mental health evaluator or guardian ad litem has concerns about a parent's sobriety, Soberlink gives them a concrete, structured way to build accountability into their recommendation without relying solely on subjective observation.

Reinstatement of parenting time may be the most meaningful use case for the parents themselves. When parenting time has been suspended or reduced due to alcohol-related concerns, sustained Soberlink compliance creates a clear, documented record that gives a parent a measurable way to demonstrate progress and work toward reunification with their children.

How to Use This Strategically as a Divorce Practitioner

If you're representing a parent who has some alcohol history or is being falsely accused, getting ahead of allegations is almost always the right move. Proactively proposing Soberlink monitoring reframes the entire conversation; your client is no longer on defense but rather shows accountability and puts the child's well-being front and center, which tends to land well with the court. Voluntary monitoring also demonstrates to the court that they have nothing to hide.

On the other side, when you're representing a parent with genuine concerns about the other party's drinking, Soberlink gives you a way to seek real, verifiable accountability without the case devolving into a prolonged battle of accusations where the monitoring data does the heavy lifting for you.

It's also worth knowing that Soberlink generates detailed, exportable compliance reports that can be introduced as exhibits, and when a case goes to hearing, Soberlink's compliance specialists are available to provide declarations or testimony to support the record.

The Bigger Picture

When alcohol misuse sits at the center of a custody dispute, what everyone involved ultimately wants is the same: a safe outcome for the child and a process that's fair to both parents. Soberlink supports both of those goals by providing a layer of protection for the child during parenting time while simultaneously giving the parent being monitored an objective record that speaks on their behalf.

The impact of alcohol misuse on custody cases is real, and so is the ability of today's monitoring tools to give courts the clear, reliable information they need to make well-informed, child-centered decisions.

Discover how you can implement Soberlink into your practice by scheduling a Lunch & Learn with National Sales Manager, Mike Fonseca: www.soberlink.com/lunch-and-learn

How Defining Your Family Law Firm’s Mission and Values Can Drive Growth

Juffer Bornales — Tue, 24 Mar 2026 12:00:00 GMT

By Bill Sansone, CPA | Law Firm Advisor & Business Development Officer at LEAP | AAML New Jersey Silver Sponsor

Building a successful family law firm takes more than simply practicing law well. Whether you're a solo attorney or managing partner of a large firm, growth depends on having a clear mission, a compelling vision, and the values that guide your decisions.

Over my 40 years working with law firms to help them achieve greater profitability, I’ve consistently found that the most successful firms take the time to intentionally define who they are, what they stand for, and where they’re going.

To help firm leaders start that process, I often ask them to reflect on some key questions. Their answers can reveal what truly drives their firm and provides the clarity needed to build a stronger practice designed for long-term, sustainable growth.

Who are we as a firm?

Every effective strategic plan begins with thoughtful reflection and deep self-awareness. Before mapping out your firm’s future, you must understand who you are and what you stand for.

Start by asking:

Who are we as a firm?
What are our top achievements?
What setbacks have we faced?
What do we want to be known for?

These answers can help shape the foundation of your firm’s identity and growth strategy. Whether you’re known for skillful advocacy in the courtroom, compassionate counsel, or helping families move forward with confidence, that identity should be clear and consistent in everything you do.

One way to define that foundation is through a mission statement that reflects who you are today and who you aspire to be in the future.

What is our mission statement?

A strong mission statement is the core of your firm’s identity—from branding and client service to leadership, culture, and policies. Read these examples to jumpstart your thinking before writing your own:

Family Law Firm Mission Statement Examples

“At [Firm Name], our mission is to guide families through life’s most challenging transitions with compassion, clarity, and unwavering advocacy. We are dedicated to protecting the best interests of our clients, delivering thoughtful solutions, and helping families build secure and empowered futures.”

“At [Firm Name], our mission is to provide ethical, effective, and solution‑focused family law representation. We strive to resolve conflict with dignity, safeguard what matters most, and ensure every client feels heard, respected, and supported throughout the legal process.”

“At [Firm Name], our mission is to strengthen families and communities by providing accessible, high‑quality legal counsel. We believe in fairness, empathy, and empowerment, and work tirelessly to protect the rights and well‑being of the individuals and families we serve.”

Revisit your mission statement often. Use it to guide decisions and allow it to evolve as your firm grows.

What drives our purpose?

Every firm is shaped by its values and the needs of the clients it serves. Use this opportunity to define why your firm exists and what sets it apart.

If your firm feels lost among the competition, it’s worth examining more closely. With thoughtful reflection, you may uncover distinctive qualities that help you stand out.

Start by asking:

What motivates us to practice family law?
Are we primarily focused on serving a particular community, advancing a social mission, or achieving growth and financial independence?
What does success at our firm look like?

Clarifying your "why" helps you align decisions across marketing, hiring, operations, and even client selection.

Motivations may include:

Serving a specific community
Advancing a social or cultural mission
Carrying on a legal legacy
Achieving financial growth

Are we recognized for legal thought leadership?

Firms that actively share their unique perspectives and expertise may see stronger referrals, better-aligned clients, and greater trust within their communities. Taking proactive steps to elevate your visibility and credibility—such as positioning yourself as a knowledgeable thought leader—can help set your firm apart.

Contributing to legal publications, mentoring law students, speaking at industry events, and supporting initiatives that reflect your firm’s mission and values are all ways to help build your presence and support long-term growth.

Final Thoughts

Your family law firm’s mission, vision, and values are more than talking points. They provide the clarity that guides both daily decision-making and long-term strategy. Reflecting on these principles and aligning them with your work creates a strong foundation for sustainable growth while shaping the kind of firm and future you want to build.

Using the right legal software can help make that alignment easier. By streamlining workflows and reducing time spent on routine tasks, technology can help free up more of your time to focus on what matters most. LEAP’s award-winning legal practice management software helps family lawyers accomplish more in less time and better serve their clients. Visit LEAP’s website to learn more.

By Bill Sansone, CPA, Law Firm Advisor & Business Development Officer at LEAP

Bill Sansone has spent more than 40 years helping law firms turn vision, strategy, and data into sustainable growth. He specializes in practice management, law firm profitability analysis, strategic and business planning, cash flow management, budgeting and forecasting, and operational reviews.

Link to LEAP article: https://info.leap.us/l/111142/2026-03-19/7c82rr

How Digital Assets Are Reshaping Divorce Discovery

Juffer Bornales — Fri, 13 Mar 2026 12:00:00 GMT

How Digital Assets Are Reshaping Divorce Discovery by Crossover Capital | AAML New Jersey Gold Sponsor

Traditional divorce discovery frameworks were designed around bank accounts, brokerage statements, retirement plans, and real property. Today, a growing share of marital wealth exists in digital form, often outside the visibility of standard financial disclosures. The rise of digital assets has introduced a level of complexity that legacy discovery processes were never built to handle. Crossover Capital

In our recent Forbes article, How Digital Assets Are Reshaping Divorce Discovery, Alex Pron, founder of Crossover Capital, details:

How digital asset custody affects discovery
Red flags family law attorneys should look out for
How to build a digital asset discovery framework
Valuation, equitable division, and tax implications
Disclosure requirements

Is Your CIS Process as Efficient as It Could Be?

Juffer Bornales — Fri, 06 Feb 2026 13:00:00 GMT

By LEAP | AAML New Jersey Silver Sponsor

New Jersey family law attorneys understand the importance of the CIS. It serves as the financial foundation for nearly every divorce case in the state. Judges rely on this detailed document when determining child support, alimony, and equitable distribution, making accuracy essential.

With tight deadlines and ongoing updates as circumstances evolve, creating and maintaining a precise CIS requires significant time and attention—even for experienced practitioners. Collecting complete and accurate information from clients can also be an ongoing challenge.

Fortunately, modern legal technology designed for family law now supports more efficient CIS preparation, giving you greater capacity to focus on delivering the thoughtful counsel your clients expect.

Smarter Legal Technology for Modern CIS Preparation

CIS customization and document automation solutions provide flexible, intelligent tools that can transform how your firm manages this essential workflow. Some solutions can offer features like:

Simplified data collection: Relevant contact and financial information can flow from a client questionnaire directly into the CIS.
Microsoft Word integration: Prepare, customize, and automate the CIS within Microsoft Word’s user-friendly software.
Editable fields: Adjust labels to reflect the specific circumstances of each case.
Adjustable columns: Modify layouts, including customizing the amount of monthly expense columns in Part D.
Additional lines: Add entries to monthly budgets, assets, and liabilities as needed.
Built-in calculators: Convert financial data into required formats quickly and accurately.

Powerful Benefits for Busy Family Law Practices

Document automation allows you to populate the CIS using pre-entered client information with a few clicks, helping you produce consistent, high-quality documents both efficiently and accurately. As details change over time, the CIS can be easily updated in seconds.

Additionally, a CIS with flexible functionality can help significantly streamline your workflow. Each CIS can be customized to reflect a client’s unique circumstances—whether that means adjusting columns, updating labels, or adding lines to monthly budgets and balance sheets.

Effective CIS automation typically delivers three key advantages:

Reclaim Your Time: When software helps you manage repetitive tasks, you gain more capacity for high-value work such as client counseling, case strategy, advocacy, and business development. Instead of spending hours manually keying financial figures across multiple sections, initial data and updates can be synced throughout the form quickly.
Support Greater Accuracy: Automated data population and built-in calculations can help reduce the risk of errors inherent in manual entry. This reliability is especially important during settlement negotiations or court hearings, where even small discrepancies can be costly.
Improve the Client Experience: Clients appreciate simplicity and professionalism. If using a secure portal, clients can submit financial information online. You can then automatically populate that data directly into the CIS, saving you time. This streamlined financial documentation process demonstrates your commitment to efficiency, accuracy, and exceptional service.

With the right tools, CIS preparation can become more consistent, accurate, and efficient, benefiting both your business and your clients. LEAP’s practice management software solution includes automated New Jersey forms and templates, including for our customizable CIS. To learn more about how LEAP supports New Jersey family law firms, visit https://leap.us/area-of-law/family-law-software/new-jersey.

6 Key Financial Resolutions for a Stronger Post-Divorce Future

Juffer Bornales — Fri, 19 Dec 2025 13:00:00 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Gold Sponsor

The start of a new year often inspires fresh goals, and for those navigating life after divorce, financial stability should be at the top of the list. Making informed decisions now can help lay the foundation for a secure and confident future.

In our Family Lawyer Magazine newsletter article, 6 Key Financial Resolutions for a Stronger Post-Divorce Future, Sharon L. Klein, EVP, President-Family Wealth, Eastern U.S. Region, shares six essential financial resolutions designed to help individuals rebuild, protect, and grow their wealth post-divorce. From reassessing estate plans to preventing the death of a family business, these steps can make a meaningful difference in achieving long-term financial well-being.

Contact Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com to discuss ways Wilmington Trust can help your clients successfully navigate transition.

Speed Up Legal Drafting for Family Law with AI Prompts

Juffer Bornales — Fri, 05 Dec 2025 14:00:00 GMT

By LEAP | AAML New Jersey Silver Sponsor

For family law firms, legal drafting can make up a significant portion of the daily workload. Whether you’re preparing discovery requests, drafting divorce complaints, or assembling financial disclosures, these tasks may consume more of your time than you’d prefer—time that could otherwise be spent advising clients, preparing for hearings, or focusing on long-term firm development.

Thankfully, advancements in artificial intelligence (AI) are making it easier for family law firms to reclaim time. AI drafting tools can help you produce documents more efficiently while maintaining full control over the finished product. When these drafting tools also integrate with your practice management system, they can further enhance speed and accuracy by drawing from details stored in your matters.

As with any use of AI, the quality of your instructions influences the quality of the output. A detailed, thoughtfully structured prompt can help guide the AI toward producing drafts that are more aligned with the desired result and tailored to the specifics of your case.

Why Use AI Prompts in My Drafting Process?

Legal AI prompts are carefully written instructions developed to help AI produce well structured, matter-specific content. By providing key details, such as formatting expectations, tone, jurisdiction, and practice area, you can help the AI produce output that is more precise, structured, and easier to refine into your desired final draft.

Even when AI delivers a strong starting point, careful review is essential. As an attorney, you are fully responsible for the accuracy, quality, and compliance of every document you create.

Writing and Using AI Prompts for Drafting

Here are some best practices for creating and using AI prompts:

Provide clear direction: Define the purpose of the prompt, key sections, tone, and jurisdictional rules. More detail will generally lead to more complete and reliable output.
Fine-tune as needed: Think of AI-assisted drafting as a collaborative conversation. Chat with the AI tool to ask for adjustments, more context, or alternative versions until the draft aligns with your expectations.
Create a template library: If you develop a prompt that produces strong results, save it as a template. Over time, you’ll build a reliable library of AI prompts tailored to your firm’s needs.

Pre-Built AI Prompt Templates and Libraries

While developing your own AI prompts is valuable, you can save even more time by using pre-built prompt templates. Templates that have been designed by family law experts can provide an extra level of reliability.

Prompt templates can support drafting for documents such as:

Certification of insurance coverage

Notice of motion or proposed form of order

Schedule of assets and liabilities

Summaries of mediation, case history, child care expenses, and more

Divorce finalization letters

Strengthen Your Firm’s Drafting with AI Prompts

LEAP’s legal practice management platform brings case management, document automation, billing, accounting, and award-winning AI together in one system. Pre-built family law matter types, automated NJ forms and templates, and a curated library of AI prompts tailored to family law practice can support efficiency at your firm.

LEAP also offers a customizable Case Information Statement (CIS) with built-in calculators, split billing capabilities, secure document sharing, and more. Visit LEAP for New Jersey Family Law to learn more about our intelligent tools that can transform your day-to-day practice and help drive long-term success.

By: Aislinn Koch

Aislinn Koch is a family lawyer on the Content Development Team for LEAP Legal Software US. She began her legal career as a clerk for a Judge in the Superior Court of New Jersey, Family Part. She then went on to practice law at prestigious family law firms throughout the state of New Jersey. Aislinn is passionate about helping lawyers leverage technology to streamline their practices, boost efficiency, and stay organized.

Learn more https://info.leap.us/l/111142/2025-11-20/7c3ptt

Divorce Does Not Have to be Scary with the Right Financial Plan

Juffer Bornales — Thu, 30 Oct 2025 16:00:00 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Gold Sponsor

Although ghouls and goblins are on the prowl at Halloween time, partnering with an experienced divorce financial advisor to plan for your clients’ unique goals can make the next chapter of their lives a bit less frightening.

William T. Bennett, CFA, Senior Wealth Investment Advisor at Wilmington Trust shares 4 foundational steps for a customized financial plan for those who are navigating divorce in our Family Lawyer Magazine newsletter, Divorce Does Not Have to be Scary with the Right Financial Plan.

Tracing the “Untraceable”: How Crypto Can Be Discovered and Valued in Divorce

Juffer Bornales — Wed, 15 Oct 2025 12:00:00 GMT

By Crossover Capital | AAML NJ Gold Sponsor

For years, cryptocurrency has carried the reputation of being a secretive digital form of wealth that can be moved in the shadows, beyond the reach of courts and regulators. It should come as no surprise that in divorce cases, clients often fear that a spouse could be using crypto to conceal assets. While crypto is complex and can create challenges in divorce proceedings, it is not totally “untraceable.” In fact, with the right expertise and tools, digital assets can be uncovered, properly valued, and equitably divided.

Alex Pron, founder of Crossover Capital, explains why it’s becoming increasingly important for family law attorneys to understand how to handle crypto assets in divorce cases.

Learn more at https://crosscapadvisors.com/tracing-the-untraceable-how-crypto-can-be-discovered-and-valued-in-divorce/

5 Questions to Ask When Choosing Document Automation Software for Your Family Law Firm

Juffer Bornales — Thu, 25 Sep 2025 12:00:00 GMT

By LEAP | AAML New Jersey Silver Sponsor

Choosing document automation software for your family law firm is about more than just faster document drafting. The right solution can reshape how your team operates—supporting greater accuracy, flexibility, efficiency, and reliability across matters. By reducing time spent on manual data entry and repetitive tasks, you can focus more energy on providing the attentive, high-quality care individuals and families require during life’s more complex moments.

But with so many legal document creation platforms on the market, how do you know which one is the best fit for your firm’s needs? Here are five essential questions to help guide your evaluation:

1. How will it help my firm draft documents more efficiently and accurately?

At its most basic, legal document automation saves time by auto-populating fields in forms and templates—pulling in client details you’ve already gathered to reduce repetitive data entry and the risk of errors. More advanced platforms can take this a step further, using AI-powered drafting to give you a head start by generating high-quality first drafts of letters, court forms, emails, and more.

Look for a solution that offers regularly updated New Jersey-specific forms and templates, such as the Case Information Statement (CIS) and Child Support Worksheets. Having an up-to-date library at your fingertips saves you the time of having to search online and can give you confidence in your filings.

Bonus points if the platform includes tools for financial disclosures and child support calculations to further streamline document preparation.

2. Does it offer customization for family law matters?

Every family law case is unique, and your software should reflect that. A strong platform allows you to customize forms for divorces, custody arrangements, prenuptial agreements, post-judgment motions, and more.

For New Jersey family law practitioners, a customizable CIS is particularly valuable. Features like flexible columns, editable fields, built-in calculators, and expandable sections make it easier to tailor the form to each client’s circumstances while staying compliant with court requirements.

3. Can it integrate with my existing apps and tools?

Technology should simplify your current workflow—not complicate it. Look for legal software that integrates with the programs you already use regularly, such as Microsoft 365. When working within a connected ecosystem, you can continue using trusted tools while creating court-ready documents like parenting schedules and marital settlement agreements more efficiently.

4. Will it scale as my family law firm grows?

While simple form-filling might meet your immediate needs, you’ll likely want more sophisticated tools as your practice expands, and you can realize even more benefit from leveraging legal technology. Choose a scalable platform that can grow with you, offering:

Additional features like case management, online billing, accounting, and task workflows
AI tools to assist with document drafting, legal research, and timekeeping
Regularly updated New Jersey–specific form and templates
Ongoing training and support

Selecting a platform with growth in mind helps you avoid the disruption of switching systems later.

5. Does it have robust security?

Family law matters involve sensitive client information. The platform you choose should safeguard this data with encryption, secure cloud storage, file access controls, and compliance with SOC 2 Type 2 standards. These protections help build client trust, ensure confidentiality, and keep your firm aligned with regulatory requirements.

Find the Right Fit for Your Firm

Choosing document automation software is a strategic decision that can reshape how your firm provides legal services. Ultimately, it should help you draft faster, minimize errors, and deliver trustworthy results for you and your clients.

As platforms vary widely in features and usability, carefully compare your options and schedule live demos. Seeing the software in action is one of the best ways to understand its capabilities, test how it fits your workflows, and guide you toward a solution that truly supports your firm’s needs.

Explore how LEAP’s document automation—with AI drafting, an extensive library of forms and templates for New Jersey family law, customizable CIS features, and more—can help you work faster, freeing up time to focus on what matters most. Schedule a personalized demo today.

About the Writer

Finding Values in an AI World

Juffer Bornales — Wed, 13 Aug 2025 13:00:00 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Gold Sponsor

As technology continues to advance, some may think the “personal feel” we once had has been replaced by the cold hands of technology. In the private client space, a trusting and personalized relationship is key to understanding the complexity of each client’s unique financial situation. Kayleigh Farrell, Wealth Associate at Wilmington Trust discusses how attorneys are using AI to make their work more client facing, as featured in Family Lawyer Magazine: Finding Values in an AI World.

Case Study: How Financial Planning Protected Freda Freshstart During Her Divorce

Juffer Bornales — Thu, 17 Jul 2025 13:00:00 GMT

By Crossover Capital | AAML NJ Gold Sponsor

Divorce is never easy, as there are both emotional and financial implications. For many non-financial spouses, the end of the marriage is also the beginning of managing finances independently (often for the first time in decades). That was the case for Freda Freshstart, a 52-year-old woman navigating divorce after 24 years of marriage.

Freda wasn’t the spouse who handled the money. She had focused on raising their two children and working part-time in an administrative role while her husband built a successful career. As they moved toward divorce, she found herself overwhelmed and unsure how to protect her financial future.

That’s where smart, coordinated financial planning came in.

Identifying What Wasn’t on the Surface

Freda’s spouse was the higher earner and controlled most of their financial accounts, including retirement plans, executive benefits, and stock options. Working alongside her attorney, we dug into past tax returns, pay stubs, and benefit statements, and uncovered:

● Deferred compensation that hadn’t been initially disclosed

● Restricted stock units (RSUs) scheduled to vest post-divorce

● A valuable pension with no lump-sum option

By flagging our findings, Freda’s legal team was able to negotiate with clarity and confidence.

Modeling Her Settlement Options

One of Freda’s biggest questions was:
“Which settlement structure gives me the best shot at long-term stability?”

We modeled multiple scenarios, including:

● A larger lump sum with no alimony

● A smaller settlement with lifetime spousal support

● A blended approach combining up-front cash and structured support

Each model showed projected spending, investment growth, and risk exposure, allowing Freda and her attorney to negotiate based on data, not just emotion.

Considering the Overlooked Details

Beyond the basics, we helped Freda understand and plan for:

● Healthcare costs, including COBRA vs. marketplace plans

● Social Security benefits she could eventually claim from her ex-spouse’s record

● Income planning based on potential part-time work or phased retirement

● Long-term care needs later in life

These are often the "blind spots" in divorce negotiations, and they can be costly if ignored.

The Outcome

With the attorney using our financial models as a backbone for negotiation, Freda walked away with:

✔ A fair share of retirement and investment assets

✔ Spousal support structured to meet her actual expenses

✔ A roadmap for her financial life post-divorce

✔ Confidence to take control of her money moving forward

Why This Matters

For attorneys, financial projections aren’t just helpful, they’re strategic. They clarify what your client needs not just now, but 10, 20, or 30 years from now.

For clients like Freda, understanding the “what ifs” can transform fear into confidence.

At Crossover Capital, we specialize in helping individuals, especially non-financial spouses, navigate the complexities of divorce with clarity, compassion, and smart strategy. If you’re an attorney looking to strengthen your client’s case with financial expertise, or a client starting your own Fresh start, we’re here to help.

Want to talk through a case like Freda’s? Let’s connect

How Money Messages from Divorced Parents Impact Children

Juffer Bornales — Mon, 16 Jun 2025 14:00:00 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Gold Sponsor

Divorce is complex and overwhelming for everyone involved; it is important to be a stable and consistent figure for your children both financially and emotionally. Explore practical strategies to support children’s financial development throughout and following divorce as featured in Family Lawyer Magazine, How Money Messages from Divorced Parents Impact Children, written by Sharon Klein, EVP, President - Family Wealth, Eastern U.S. Region & Marguerite Weese, National Head of Family Office Experience, at Wilmington Trust.

How Legal Tech Simplifies the Case Information Statement (CIS) in New Jersey Divorce Cases

Juffer Bornales — Fri, 11 Apr 2025 14:03:25 GMT

By LEAP Legal Software US | All-In-One Legal Software for All Practice Areas of Law | AAML NJ Silver Sponsor

If you’ve practiced family law in New Jersey for any length of time, you’re all too familiar with the Case Information Statement (CIS). Required in virtually every divorce case, this form is a detailed financial affidavit that provides a snapshot of a client’s past and present financial situation. Judges rely on it to help determine child support, alimony, and equitable distribution, making it one of the most critical documents in a divorce proceeding.

Despite its importance, the CIS can be cumbersome for both family law attorneys and their clients. Due just 20 days after the filing of an answer or appearance, clients often struggle to gather tax returns, pay stubs, and other key financial documents in time. Next, the attorney must review, calculate, and enter the data using the required CIS format, while ensuring accuracy within a structure that can feel restrictive and outdated.

And the work doesn’t stop after the initial submission. As a client’s financial circumstances change over time, you’re required to update the CIS and go through the same manual steps again. Ultimately, the entire process can feel tedious, time-consuming, and inefficient.

The good news? Advances in legal technology and document automation are changing the game, making New Jersey CIS preparation smoother, faster, and more adaptable to you and your clients’ unique needs.

A Smarter Approach: Flexible & Automated CIS

Legal tech and integrated practice management solutions are making CIS preparation far more manageable and efficient. Today, family law attorneys can get access to a smart, customizable, and automated CIS that can streamline the entire process.

Here’s how document automation and flexible formats can transform the way you handle the CIS:

Auto-Populated Data: Reduce the need to manually re-enter client and financial information across multiple forms. With automation, relevant data is pulled directly from your client’s matter file in your practice management software.
Faster Updates: Need to make changes? The automated CIS allows you to easily update client and financial details and push them across the CIS instantly.
Editable Fields: Change the names of labels to best reflect each case’s unique circumstances.
Adjustable Columns: Expand beyond the two columns in Part D to customize your client’s monthly expenses.
Additional Lines: Add new lines to the monthly budget and assets and liabilities sections.
Built-In Calculators: Convert your client’s financial information into required formats with integrated calculators.
Microsoft Word Integration: Prepare, customize, and automate the CIS within Microsoft Word’s user-friendly software.

Why This Matters for Your Practice

Beyond saving time, document automation can significantly reduce the risk of errors, helping you avoid costly mistakes that could impact your cases. By streamlining CIS preparation, you can free up time to focus on tasks like strategizing with clients, preparing for court, or growing your practice.

And let’s not forget the client experience. A smoother, more efficient CIS process reduces stress and confusion for your clients as they navigate what is likely an already difficult time in their lives.

Turn CIS preparation into a more seamless, efficient process that can benefit both you and your clients. LEAP’s practice management software solution features automated forms and templates for New Jersey legal documents, including the CIS. To learn more about how LEAP can support New Jersey family law firms, visit leap.us/states/new-jersey.

The New ‘Transformer’: Women with Wealth

Juffer Bornales — Mon, 10 Feb 2025 13:00:00 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Carly Nathanson, Senior Investment Advisor at Wilmington Trust explores a powerful shift in the financial landscape as women acquire unprecedented control over wealth. Carly suggests seven foundational steps to empower women to become transformers and take control of their finances in this month’s newsletter, as featured in Family Lawyer Magazine: The New ‘Transformer’: Women with Wealth.

Maximize Efficiency and Profitability: Legal Tech Solutions for New Jersey Family Law Firms

Juffer Bornales — Mon, 03 Feb 2025 14:00:00 GMT

By LEAP Legal Software US | All-In-One Legal Software for All Practice Areas of Law | AAML NJ Silver Sponsor

Succeeding in New Jersey's dynamic family law landscape takes more than legal expertise—it calls for the strategic use of advanced technology. To stay ahead, you need modern solutions, including comprehensive legal practice management software designed specifically to streamline operations and boost efficiency.

By adopting innovative, secure tools that combine industry-leading case management, document automation, billing, and legal AI technology, you can work smarter, serve clients better, and maintain a competitive edge.

Simplified Matter Management for Greater Efficiency

Effective case management software is essential for boosting your productivity and efficiency. Centralizing case information and legal documents within a secure, cloud-based system ensures a single, reliable source of truth across all practice areas. You can also leverage pre-built matters and forms specifically designed for family law attorneys in New Jersey, enabling you to create new matters with pre-defined and up-to-date templates.

Cloud-based access allows you to manage cases and collaborate with staff and clients from anywhere, ensuring seamless communication and faster case resolution. Integration with familiar tools like Microsoft 365 further enhances your productivity by combining user-friendly interfaces with powerful automation and document management features.

Streamlined Document Automation and Drafting

Family law requires exceptional precision and efficiency, particularly when drafting critical documents like divorce filings, custody agreements, and protection orders. Legal practice management software with document automation empowers you to quickly and accurately generate matter-specific documents using a comprehensive library of up-to-date, New Jersey-specific forms. These customizable forms can be auto-populated with pre-entered client data, eliminating repetitive data entry and ensuring consistency across all documents.

You can further personalize documents with branding elements like logos and letterheads to maintain a polished, professional appearance. Drafting documents directly within a unified platform streamlines your workflows, reduces administrative tasks, and allows you to focus more on serving your clients. Secure document sharing also allows clients and stakeholders to access information that they need while maintaining confidentiality.

Seamless Billing and Legal Accounting Workflows

Integrated time-tracking features help capture every billable minute—whether working on emails, phone calls, or documents—maximizing revenue and ensuring accurate billing. Built-in legal accounting and billing features simplify complex financial transactions and help ensure compliance with New Jersey regulations and state bar rules. Automated invoice generation directly from case matters streamlines billing, reduces errors, and enables you to produce professional, client-friendly invoices in minutes.

Integration with leading accounting software like QuickBooks and Xero further simplifies financial management by securely syncing financial data and creating a seamless workflow between case management and back-office accounting. Automated trust accounting tools maintain compliance by generating detailed audit trails for every transaction. Customizable reporting and analytics tools offer valuable insights into your firm's performance.

Powerful Legal AI Technology

Legal AI tools are transforming how family law firms manage daily operations by automating routine tasks and delivering intelligent insights. As more firms integrate this advanced technology into their workflows, it becomes increasingly essential for you to do the same—or risk falling behind your competitors.

One powerful legal AI tool is the AI legal research assistant. It provides instant, answers to complex legal questions—answers you can easily submit to be verified by local attorneys for accuracy. This immediate access to legal knowledge enables you to make faster, well-informed decisions, which is especially critical in time-sensitive family law cases like custody disputes or divorce proceedings.

AI search tools for law firms allow you to quickly locate anything you need within your matters. These tools enable rapid analysis of client files, correspondence, deadlines, and appointments, providing instant insights and timely reminders to minimize the risk of missed deadlines or overlooked details.

Additionally, AI time tracking tools automatically capture every billable minute spent on case-related activities, ensuring that no time is lost to manual entry. These automated tools enhance your profitability by delivering in-depth analytics and reporting. With these valuable insights into your firm's performance, you can make data-driven decisions that improve efficiency and help you maintain a competitive edge.

Enhanced Profitability Through Better Resource Management

In New Jersey’s evolving family law landscape, leveraging technology is no longer optional—it’s essential. LEAP’s all-in-one legal practice management software, with its extensive library of state-specific family law forms, automation features, and AI-driven tools, empowers your firm to increase productivity, reduce overhead, and drive profitability.

Experience how LEAP’s award-winning solution can help your family law firm stay ahead, deliver exceptional legal services, and get more done in less time than ever. Book a personalized demo today.

Divorce and Philanthropy: The Marriage Ends, The Giving Continues

Tue, 10 Dec 2024 15:53:59 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

The high-profile split of Bill and Melinda Gates put in the spotlight the issue of how to divide a divorcing couple’s charitable resources. In their article featured in Family Lawyer Magazine: Divorce and Philanthropy: The Marriage Ends, The Giving Continues, National Director of Family Legacy Strategies Marguerite C. Weese, and Family Legacy Philanthropic Advisor, Alexa Broida, discuss options to separate donor advised funds, private foundations and other charitable vehicle so couples can continue their charitable passions despite the end of a marriage.

How AI Prompts for Family Law Firms Make Drafting Fast, Accurate, and Efficient

Tue, 26 Nov 2024 13:20:45 GMT

By LEAP Legal Software | AAML NJ Silver Sponsor

In family law, where cases are often complex and sensitive, quickly creating accurate, high-quality documents is essential for maximizing law firm efficiency. With the right tools, New Jersey family law attorneys can reduce the time spent on drafting and dedicate more energy to client services and practice growth.

Recent innovations in legal practice management software and AI document automation for law firms have revolutionized this process, allowing attorneys to generate high-quality drafts in minutes. These legal AI advancements for document automation are inherently more dynamic than traditional document management systems and more effective when using AI prompts.

What Are AI Prompts for Family Law Firms?

One of the best features of new generative AI tools is that attorneys can effectively chat with AI for drafting and reiterate guidance until they’re satisfied with the document. However, this process can slow drafting for family law attorneys, so providing an initial, accurate prompt will streamline the creation of documents such as Affidavits, Dispositions, and Briefs to Counsel. An AI prompt is a set of instructions that guide legal AI tools in generating detailed family law documents for a fast, accurate, and automated drafting process.

New Jersey family law firms can apply best practices to create effective AI prompts. First, prompts should be as specific as possible. Defining a response format and uploading templates for AI tools to review and incorporate into results can also be beneficial. With more direction for AI, attorneys can complete drafts more efficiently.

To make this process even easier, it’s best to have AI prompt templates ready for use. By having an AI prompt template designed specifically for family law matters, attorneys can further leverage generative AI tools to make them more powerful than ever.

The Benefits of AI Prompt Drafting for Family Law Firms

Drafting complex documents can cause New Jersey family law firms to become overwhelmed, leading to backlogs that risk missed deadlines or delay important priorities. The manual entry and re-entry of critical client and case details heighten the likelihood of document errors and inconsistencies. These drafting inefficiencies can drain an attorney's time, limiting opportunities to focus on strategic casework and maintain strong client relationships.

By incorporating AI prompts into your drafting, New Jersey family law firms will boost productivity, save time, and reduce manual tasks when creating documents like the Case Information Statement, Certification of Insurance, and Summons Divorce. This increased efficiency also enhances the quality of client interactions, as attorneys can focus more on advising and strategizing on complex legal issues rather than document drafting and administrative duties.

This efficiency enables attorneys to be more responsive when client and matter details change—a common occurrence in family law. With a few clicks, documents can be quickly and accurately updated without the hassle of lengthy rewrites. Time savings also translate into financial benefits as firms can handle more cases and increase billable hours by developing a more efficient drafting workflow. With AI prompt templates, family law firms can boost both productivity and client satisfaction while upholding the highest standards of accuracy and professionalism.

Maximize Efficiency in Family Law Drafting with LEAP’s AI Prompt Template Library

As the leader in legal AI technology, LEAP has developed an AI prompt template library for New Jersey family law firms. This library provides AI prompt templates with precise instructions that guide legal AI drafting tools in generating detailed family law documents. Attorneys can access this comprehensive library and customize their documents to meet unique family law case requirements.

LEAP’s AI prompts understand the content, context, and legal guidelines of New Jersey family law case details by pulling information directly from the matter. This ensures that AI delivers high-quality drafts tailored to case requirements, enabling efficient document automation.

Make your New Jersey family law practice more efficient with LEAP’s award-winning legal AI tools. LEAP’s expansive AI prompt template library enables family law firms to quickly generate customizable, matter-specific documents that meet industry standards.

Connect with LEAP and discover how the AI prompt template library empowers law firms to spend less time drafting and more time on impactful and profitable legal work.

Leveraging Your Expert in Preparing Marital Settlement Agreements

Tue, 05 Nov 2024 20:12:50 GMT

By Gregory Kohr, Partner, and Noel Capuano, Director | CBIZ | AAML NJ Gold Sponsor

Imagine you and your client have spent countless hours attempting to negotiate a settlement in their matrimonial matter, and FINALLY, a resolution has been reached. Now is a chance to breathe since the hard part is over, right? Unfortunately, that may be far from the case.

While it may seem that the preparation of the Marital Settlement Agreement (“MSA”) is a straightforward process memorializing the terms that the parties agreed to, the fact is “the devil is in the details.” Choice of terminology, references to specific calculations/methods (or omission of same), and a variety of potential pitfalls can, and have, caused misunderstandings and misinterpretations, landing the parties back to where they started - in litigation. Cases with complex financial issues frequently utilize a forensic accounting expert to bring clarity to the process. In almost all of these cases, leveraging the services of a financial expert is an invaluable but often underutilized resource when preparing the MSA.

The following are sections of the MSA, but certainly not all, where vague or missing language may lead to unforeseen complications down the road:

1. Business Valuation: When one spouse owns an interest in a business, all or part of the business is considered part of the marital estate and may be subject to equitable distribution. In almost all of these instances, a business valuation, whether formal or informal, is necessary for several reasons. First and foremost, while the owner spouse will likely retain the business, the non-recipient spouse needs an understanding of what their equitable "share" of the business is worth to understand what they will receive. The MSA should reference the business value and the value of the asset(s) the non-recipient spouse will receive in lieu of the business interest. The terms should be explicitly referenced in the agreement in order to preclude the parties from having "selective memory" years down the road.

It should also be noted that some businesses have no value; they provide a job for the owner and nothing more. This does not mean the business should not be referenced in the MSA; instead, it should be noted that 1) the business was considered, but 2) it was determined to have no value and was therefore not considered in determining the marital estate.

2. Alimony/Income Determination:
Careful consideration should be taken when defining "income" for purposes of calculating alimony, and each component should be clearly laid out in the MSA. If one or both parties are W-2 wage earners, determining alimony should be relatively straightforward. The challenge comes when a spouse is self-employed or has a more complex compensation structure.

If a spouse is self-employed, their income may be derived in the form of various expenses paid through the business, such as auto, personal credit cards, life insurance, etc. (known as perquisites). They may also own the building from which the company operates, giving rise to rental income. All of these economic benefits need to be considered for alimony purposes. Additionally, recognition needs to be given to the fact that the business owner can potentially manipulate their income in the process of what is commonly referred to as "divorce planning." An example would be a sudden decline in revenue that the owner attributes to external factors (competition, economy, etc.) when, in reality, they are simply working less. An accountant is frequently engaged in these cases to determine the business owners’ true economic benefit.

3. Equity-Based Compensation:
This issue comes up so frequently that it deserves further discussion. It is imperative to understand the type of equity-based compensation, how it is awarded/granted, how/when it vests, and how it is ultimately received. We have seen instances where equity-based compensation was defined incorrectly in the MSA, leading to complications when facilitating equitable distribution. Further, it should be noted that the existence of a grant/award of stock options or RSUs does not guarantee receipt of the same, as these forms of equity-based compensation can be subject to both vesting schedules and forfeitures. If the recipient spouse’s employment is terminated prior to vesting, they cannot monetize the awards, and alimony or equitable distribution could be impacted. The MSA should include language that explicitly addresses these potential situations to avoid surprises in the years to come.
4. Tax True-up Calculation:

There are instances where one spouse has an asset that cannot be easily liquidated or divided for equitable distribution. In those cases, the non-asset-owning spouse will likely have to "ride along" until the asset is disposed of. When this occurs, there is often a tax consequence due to the owner spouse reporting pass-through taxable income. This gives rise to an inequity in that the asset-owning spouse will be responsible for 100% of the tax obligation for an asset that was to be divided as part of equitable distribution. Language is necessary in the MSA to lay out how a tax true-up will be calculated. The language should be detailed and specific to avoid misinterpretation, and the non-asset-owning spouse's personal tax preparer can verify the calculations are correct. Utilizing your financial expert will make this process easier for counsel and the parties to understand.

While accountants are often involved in determining business value and income, their experience and familiarity with the case can be a valuable resource when drafting the MSA and minimizing the potential for post-judgment disputes in the future.

Wealth Shock: High Asset Divorce in Volatile Markets

Tue, 29 Oct 2024 14:23:08 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Sharon L. Klein, EVP, President-Family Wealth, Eastern U.S. Region, moderates a roundtable discussion with three American Academy of Matrimonial Lawyers past presidents: Alton Abramowitz, Marlene Eskind Moses, and John Slowiaczek. In this 3-part roundtable discussion, the experienced family lawyers discuss their thoughts on the so-called “Wealth Shock:” How volatile stock & real estate markets, as well as effects of Covid, continue to impact high-asset divorce settlements.

Watch the 3-part roundtable discussion: Divorce (wilmingtontrust.com)

5 Most Common Issues Family Law Attorneys Should Avoid with Alcohol Monitoring

Fri, 11 Oct 2024 20:59:06 GMT

By: Soberlink | AAML NJ Bronze Sponsor

5 Most Common Issues Family Law Attorneys Should Avoid with Alcohol Monitoring

Implementing alcohol monitoring in family law cases can be challenging, as each case requires specific protocols to ensure effectiveness. Avoiding common pitfalls can prevent unintended consequences that impact both the client and the family dynamic. Here are the top four areas that family law attorneys should take care of.

1. Selecting Inadequate Technology and Support

Choosing reliable alcohol monitoring technology is essential for consistent, court-admissible results. Traditional methods, like random lab tests, fail to offer real-time data, creating gaps in monitoring. For optimal results, attorneys should prioritize tools with real-time reporting, facial recognition, and tamper detection—features that make systems like Soberlink effective for child custody cases. Ensuring that support services are available for questions or court appearances can also be crucial to successful monitoring.

2. Setting Incorrect Testing Schedules and Frequencies

Improper testing schedules can result in missed alcohol consumption. Ideally, monitoring should occur 3-4 times per day, with tests spaced no more than 8-10 hours apart to detect overnight drinking. Every case has unique demands; thus, testing schedules should be customized. Overloading a parent with unnecessary tests can be overwhelming and counterproductive, so attorneys should create reasonable schedules tailored to each client’s circumstances. Soberlink offers multiple programs that allow for either limited parenting-time tests or consistent daily monitoring.

3. Imposing Unrealistic Protocols Outside System Capabilities

Attorneys may inadvertently set clients up for failure by requesting monitoring protocols outside the system’s capabilities. For instance, Soberlink’s Level 2 Program allows up to four tests daily within specific time windows, with a built-in, two-hour test window flexibility. Customizing testing windows beyond the system’s design can create unrealistic expectations and noncompliance, which could unfairly affect the parent. Attorneys should work within the monitoring system’s framework to avoid placing undue strain on clients.

4. Excessive Penalties for Missed Tests

Assigning strict penalties for every missed test can create unnecessary tension and disrupt family interactions. Missed tests should be considered thoughtfully, as there are often valid reasons for a delay in submitting a test.

Considering Missed Tests in Context:

Defining a Missed Test: A Missed Test means a scheduled test wasn’t completed within the allowed timeframe, usually a two-hour window. In Soberlink’s Level 2 - Daily Testing Program, this results in a Missed Test with a yellow notification on the reports, while in the Level 1 - Parenting Time Only Program, the parents will need to document the missed tests.
Reasons for Missed Tests: Missed tests can occur due to common situations, such as leaving the device behind, interruptions from daily responsibilities, or unexpected events.
Adaptation and Communication: Rather than issuing immediate consequences, Missed Tests should lead to a conversation to adjust the schedule as needed. This approach can help refine the monitoring plan to better align with the person’s daily routine.
Prioritizing Family Stability: It’s essential to foster a positive environment for everyone involved. Excessive penalties can create strain, whereas open discussions help families stay cohesive and accountable. A thoughtful approach centers on the child’s well-being while ensuring all parties feel supported.

Note: In Soberlink’s Level 1 - Parenting Time Only Program, there are no missed tests as the schedule relies on shared tools managed by the family rather than being managed by Soberlink’s system.

5. Underestimating the Necessary Monitoring Duration

Determining the right duration for alcohol monitoring is essential to establish a pattern of sobriety. For individuals with an Alcohol Use Disorder (AUD), experts recommend at least one year of monitoring to demonstrate sustained sobriety. Even those without a formal diagnosis benefit from a 6-12 month monitoring period, providing sufficient time to confirm reliable sobriety patterns. Setting an appropriate duration supports a safe environment for the child and helps ensure long-term stability for all parties.

Conclusion

By selecting the right technology, establishing realistic testing protocols, setting appropriate schedules, and committing to a sufficient monitoring duration, family law attorneys can effectively support a safe and stable environment for children involved in custody cases. Avoiding these common pitfalls not only promotes accountability but also fosters a balanced approach that considers the needs of both the child and the parent. Thoughtful alcohol monitoring practices help safeguard families and ensure that court-mandated sobriety requirements are met with integrity and fairness.

Why Accurate Time Tracking is Critical for Profitability

Mon, 07 Oct 2024 12:19:04 GMT

By: LEAP Legal Software | AAML NJ Silver Sponsor

Why Accurate Time Tracking is Critical for Profitability

In New Jersey’s fast-paced legal landscape, particularly in family law, law firms must deliver high-quality services while maintaining profitability. Effective time and resource management are paramount to achieving these goals. Legal practice management software has evolved into an essential tool, automating time-consuming tasks such as time tracking, case management, document handling, and billing—freeing attorneys to focus on providing excellent legal counsel to their clients during often difficult family law cases.

The Importance of Accurate Time Tracking in Family Law

One of the greatest challenges New Jersey family law firms face is ensuring accurate time tracking. Family law cases, from divorce proceedings to custody disputes, often involve complex, emotionally charged work. As most family law firms rely heavily on billable hours, even small inefficiencies can lead to significant revenue loss. Yet, many attorneys continue to use manual processes, which are not only time-consuming but also prone to errors. Given the multiple tasks attorneys manage throughout the day—such as client consultations, drafting legal documents, and court appearances—forgotten or inaccurately logged time can result in missed billable work, directly impacting profitability.

Manual time tracking also presents administrative hurdles. Instead of dedicating time to providing legal guidance during sensitive matters like child custody or alimony, family law attorneys often find themselves bogged down by administrative tasks like logging hours and verifying timesheets. The risk of human error is high, which can lead to billable tasks being missed or inaccurately recorded. Over time, these inefficiencies can have a substantial impact on a firm’s bottom line. To overcome these challenges, family law firms in New Jersey can adopt legal practice management software with automated time-tracking capabilities.

The Benefits of Automated Legal Time Tracking

Automated time tracking is a game-changer for law firms, particularly in the family law sector. It eliminates the need for manual entries, reduces human error, and ensures that all billable activities are captured. This prevents revenue leakage and improves operational efficiency, allowing family law firms to focus on their primary goal—helping families resolve legal issues while maintaining profitability.

Accurate time-tracking software also enhances transparency, which is crucial for building client trust. In family law, where emotions often run high, clients want to know exactly what they’re being billed for. When firms provide detailed billing based on precise time records, disputes over fees are significantly reduced. Transparent billing not only reflects professionalism but also sets a firm apart in a competitive legal market.

Additionally, automated time tracking offers valuable insights into resource allocation. Family law firms can analyze how time is spent, make informed staffing and workflow decisions, and optimize their operations. For routine tasks that consume too much time, automation or delegation may be the best solution, allowing attorneys to focus on more valuable work such as mediation or trial preparation.

LEAP’s AutoTime: Ensuring Accurate and Automated Time Tracking

The LEAP practice management platform with its intelligent AutoTime feature, is a clear stand-out as a robust tool for family law firms, ensuring that no billable activity is missed. AutoTime maximizes billable hours via smart activity monitoring that automatically tracks and records time spent on tasks like drafting motions, writing emails, attending meetings, and conducting legal research—without the need for manual timers.

AutoTime identifies unbilled hours and provides firms with data-driven insights to improve profitability. Whether working on time-sensitive cases like emergency custody orders or managing high-stakes divorce settlements, LEAP’s AutoTime ensures that every minute of work is accounted for, preventing revenue loss and enhancing efficiency.

Interested in learning more about how you can save time with automatic time tracking? Click here to learn more.

How to Help a Client Decide if They Should Keep the Marital Home

Fri, 06 Sep 2024 12:59:05 GMT

By: Tasha Shadle, Founder and Wealth Management Advisor at Crossover Capital | AAML NJ Gold Sponsor

Helping a client determine whether to keep the marital home, I believe, is a critical and often emotional decision in divorce proceedings. Guiding clients through the financial feasibility of this choice is essential to help ensure they make sustainable and well- informed decisions.

Here’s a step-by step approach to assessing the financial feasibility:

Review Current Income and Expenses: Start by using the CIS Statement and building upon it. Make sure ALL expenses are included.
Estimate Home-Related Costs: Let the client know that it is not solely about the mortgage payments when it comes to the maintenance of the home. They will need to budget for property taxes, homeowner’s insurance, general maintenance, and potential repair costs. Encourage them to get quotes on upcoming maintenance needs and typical repair costs, which can provide them with a more comprehensive view of home-related expenses.
Establish a Post-Divorce Budget: The goal here is to help the client create a reasonable post-divorce budget, including new mortgage payments after refinancing in their name alone. The budget should be one they can realistically live with while not being overly stressful for them. You can also recommend that they leave a little margin for those surprising expenses that always seem to pop up. I suggest setting aside at least 1-2% of your home’s value each year for maintenance. If you do not use the full amount, save the remainder for years when bigger repairs, like replacing the roof or HVAC system, are needed.
Consider Potential Income Changes: Encourage clients to think about potential changes to their income, such as career advancements, changes in employment status, or the end of spousal and child support. Being prepared for this type of change makes the decision to retain the home viable for the long term.
Instruct Clients to Seek the Advice of a Financial Advisor: This will help them understand their situation better. We can model out different scenarios (using sophisticated software programs that you can use in court and for negotiations) that provide significant insight into managing finances and evaluating the feasibility of keeping the home.

6. Plan for the Worst-Case Scenario: It’s prudent to advise clients to consider what might happen if unexpected events like job loss or medical emergencies occur. Having a backup plan, such as maintaining a savings cushion to cover mortgage payments during tough times, is essential for ensuring long-term stability.

By guiding your clients through these steps, you can help them make educated decisions about keeping the marital home. This approach balances their emotional attachment with their financial realities, allowing them to maintain stability and security post-divorce.

Alcohol’s Prevalence in Parenting Time Cases: The Importance of Education on Alcohol Monitoring

Fri, 16 Aug 2024 13:02:20 GMT

By: Soberlink | AAML Bronze Sponsor

As matrimonial lawyers, you’re no stranger to the complexities that arise in parenting time cases. One of the most challenging issues you may encounter is alcohol misuse by one of the parents. The prevalence of alcohol in parenting time disputes is an unfortunate reality that can significantly impact the outcome of a case and, most importantly, the well-being of the children involved. Being prepared to handle these cases with the right tools and knowledge is crucial, and that’s where Soberlink comes into play.

Understanding the Prevalence of Alcohol in Parenting Time Cases

Alcohol-related issues are more common in parenting time disputes than many realize. Whether it’s a parent with a history of substance abuse or allegations of alcohol misuse during parenting time exchanges, these situations add layers of complexity to already sensitive cases. For matrimonial lawyers, it’s essential to be proactive in addressing these challenges. The question isn’t just about whether alcohol misuse is present but about how you, as a legal professional, can provide clear, admissible evidence to support your case.

The Need for Reliable Technology

In dealing with cases involving alcohol misuse, the importance of using reliable technology cannot be overstated. While there are various alcohol monitoring solutions available, not all are created equal. Cheap alternatives might seem appealing, but they often come with significant risks. These systems can be easy to cheat, providing a false sense of security that could jeopardize the outcome of a case.

Soberlink stands apart in this regard. Specifically designed for recovery and family law, Soberlink’s technology is tailored to meet the unique needs of matrimonial lawyers. Unlike criminal-focused technologies, Soberlink offers a comprehensive approach that ensures accuracy, reliability, and, most importantly, court-admissible results.

The Honorable Judge Diaz has seen the impact firsthand, stating, “Soberlink has provided Family Court with a great real-time accountability tool for any family requiring alcohol monitoring while co-parenting.” Family Law Attorney Laura Wasser adds, “Take the guesswork out, take the negotiations out, take the allegations out, and simply provide the information that’s been requested so there is no question or concern that could be raised with the court.” This kind of assurance is invaluable in the courtroom, where the stakes are often incredibly high.

Dr. Aaron Robb, Forensic Therapist, emphasizes the necessity of investing in quality tools, stating, “Nobody should try to do this work on the cheap. You get it good, or you get it cheap, and we need good for these kids in these Family Law cases.” His words serve as a reminder that when it comes to the safety and well-being of children, there’s no room for compromise.

Soberlink’s Unique Advantages

Soberlink isn’t just about technology; it’s about providing a complete solution for family law professionals. With a dedicated in-house support and Compliance team, Soberlink ensures that you have the resources you need to analyze tests and make informed decisions. The system’s facial recognition and tamper detection features add an extra layer of security, giving you and the court confidence in the results.

Schedule a Lunch and Learn with Soberlink

To help you stay ahead in these challenging cases, Soberlink invites you to schedule a Lunch and Learn session. These sessions are designed to provide you with in-depth knowledge about alcohol monitoring in parenting time cases and how Soberlink can support your efforts. Not only will you gain valuable insights, but your firm will also receive a physical certificate to display in your office, showcasing your commitment to using reliable and effective technology in family law.

Scheduling a Lunch and Learn is simple—just visitSoberlink's Lunch and Learn page and choose a time that works for your team. Don’t miss this opportunity to ensure you’re fully equipped to handle alcohol-related parenting time disputes with confidence.

Conclusion

The prevalence of alcohol in parenting time cases is a serious issue that requires the right tools and knowledge to address effectively. Soberlink provides a solution that not only meets the needs of matrimonial lawyers but exceeds them, offering the reliability and support necessary to ensure justice is served. We encourage you to take the next step by scheduling a Lunch and Learn with Soberlink—because when it comes to the well-being of the children in your cases, only the best will do.

Book a Lunch and Learn »

How a CDFA® and a Family Law Attorney Can Work Together

Thu, 08 Aug 2024 13:03:40 GMT

By: Tasha Shadle, Founder and Wealth Management Advisor at Crossover Capital | AAML NJ Gold Sponsor

A Certified Divorce Financial Analyst® (CDFA®) can be an important person in the divorce process, as they deal with the financial aspect of the case. A CDFA® is able to shoulder some of the burden of the hefty workload taken on by family law attorneys, especially given that their specialty lies in fiscally critical manners that can be seriously complex and time consuming. In this article we’ll explore all of the ways that a CDFA® can be of help in divorce cases.

Financial Analysis and Documentation

• Asset and Debt Division: CDFAs® provide identification, classification, and valuation of marital and separate assets and debts. They can outline the division and help to see that the distribution is fair and equitable.

• Income and Expense Analysis: They analyze income streams and expenses of both parties, giving an exact picture about where the couple stands regarding their finances. This analysis is very important to define child support, spousal support, and other financial obligations.

Future Financial Planning

• Post-Divorce Financial Projections: CDFA® creates numerous financial projections to illustrate the long-term consequences of different divorce settlement options. They can also reflect how decisions made at divorce will impact the financial futures of both spouses when considering critical factors such as taxes, retirement, and living expenses.

• Tax Implications: They calculate and analyze the tax impact of the division of property, alimony, or other financial aspects that relate to divorce. This is to make sure that both parties understand what the assets they walk away with will be worth after taxes.

Expert Testimony

• Court Appearances: A CDFA® could testify before the court about the long-term financial ramifications of various settlement proposals. Their knowledge is highly relevant in explaining complicated financial matters to the judge, often a pivotal piece of the arrival at a just settlement.

Settlement Negotiation Support

• Mediation and Negotiation: CDFAs® will, at times, join attorneys in mediation or negotiation sessions to ensure that financial settlements made for the client are realistic and fair. They assist clients in the comprehension of the financial implications of alternatives, allowing the client to make more informed decisions.

Educating Clients and Providing Support

• Financial Education: CDFAs® provide education to the client regarding financial aspects of divorce, budgeting, managing credit, and retirement plans. This empowers the client to make informed decisions and to plan for their future.

• Emotional Support: Although not therapists per se, there is an element of emotional support provided in educating clients on the true financial facts of their situation, which can help reduce anxiety and uncertainty.

Benefits to Family Law Attorneys

By handling financial complexities, CDFAs® make it easier for family law attorneys to focus on legal strategies, negotiations, and client advocacy. As a result of such cooperation, clients may benefit from more efficient case management and lower legal costs through CDFAs®/attorney collaboration, not to mention better results in divorce settlements.

Essentially, the specialized financial knowledge of the CDFA® augments the legal work of family law attorneys to create a much less bumpy road during a divorce for both parties.

The Benefits of Using AI in Family Law

Tue, 06 Aug 2024 15:37:16 GMT

By: LEAP Legal Practice Management Software | AAML NJ Silver Sponsor

In the ever-evolving practice area of family law, the introduction of artificial intelligence (AI) brings a host of advantages that revolutionize how legal professionals approach their work. These benefits are seen in several key areas, including document analysis, drafting initial documents, and conducting legal research. By leveraging AI, family law attorneys can experience increased efficiency, reduced time on repetitive tasks, and a boost in overall productivity.

Increased Efficiency and Productivity

By integrating AI into their practice, family law professionals can achieve a level of output that is difficult to match through traditional methods. The cumulative benefits of AI in document analysis, drafting, and research translate into several key advantages:

· Reduced time on repetitive work: AI handles the mundane tasks that typically consume a significant portion of a lawyer’s time. This allows legal professionals to dedicate more time to high-value activities, such as strategizing, negotiating, and advocating for their clients.

· Enhanced accuracy: AI minimizes human error in document analysis and legal research, ensuring that critical details are not overlooked. This leads to more precise and reliable legal work.

· Improved client service: With AI taking on routine tasks, lawyers can offer more timely and personalized service to their clients. This not only improves client satisfaction, but also strengthens the lawyer-client relationship.

· Competitive advantage: Law firms that adopt AI technology gain a competitive edge by delivering faster, more efficient, and cost-effective services. This positions them favorably in a market where clients increasingly demand value and efficiency.

Automated Document Analysis

One of the most time-consuming aspects of family law is managing and analyzing large volumes of documents. This process often involves summarizing lengthy documents, searching for specific information within extensive records, and identifying discrepancies between different documents. AI excels in automating these tasks by:

· Summarizing lengthy documents: AI algorithms can quickly distill large documents into concise summaries, allowing lawyers to grasp the key points without wading through pages of text. This capability is especially valuable in divorce cases involving extensive correspondence, financial records, or court filings.

· Searching within large volumes of documents: Traditional manual searches are labor-intensive and prone to human error. AI can rapidly scan through vast amounts of data to locate pertinent information, such as case precedents and relevant statutes. This reduces the time spent on tedious searches and ensures more accurate results.

· Identifying discrepancies: Comparing multiple documents to find inconsistencies or contradictions can be painstaking. AI tools can automate this process, highlighting differences and potential issues that might otherwise be overlooked. This functionality is crucial in ensuring the accuracy and consistency of legal documents, such as prenuptial agreements, divorce settlements, and custody arrangements.

AI-Assisted Document Drafting

Drafting legal documents from scratch is a fundamental yet time-consuming task in family law. AI-driven software can assist by generating initial drafts of various documents, including:

· Petitions and complaints: AI can create preliminary versions of petitions for divorce, child custody complaints, and other initial filings based on inputted case details. Lawyers can then review and refine these drafts, significantly reducing the time required to produce them.

· Agreements and settlements: Whether drafting prenuptial agreements, property settlement agreements, or custody arrangements, AI tools can provide templates and initial drafts tailored to the specifics of the case. This automates the document creation process and ensures that all necessary elements are included.

· Correspondence and motions: Routine communications and procedural motions can also be efficiently drafted by AI, freeing up lawyers to focus on more complex and strategic aspects of their cases.

Verified Legal Research

Family law attorneys frequently engage in legal research to support their cases. AI enhances this process by providing:

· Immediate responses to legal questions: Instant AI-generated answers are procured from a legal knowledge base and verified by experienced lawyers. Answers are tailored to jurisdictions and linked to relevant case law and legislation

· Verification of information: While AI can deliver rapid results, the ability to verify these findings is equally important. Advanced AI systems often include features that cross-reference information from multiple sources, ensuring the accuracy and reliability of the research.

In conclusion, the integration of AI in family law brings transformative benefits that enhance efficiency, accuracy, and productivity. AI empowers family law firms to focus on what truly matters—providing exceptional legal service to their clients.

Unlocking True Value: The Critical Role of Normalization Adjustments in Business Valuations

Fri, 10 May 2024 13:46:56 GMT

By: Sydney Weber of Marcum | AAML NJ Gold Sponsor

Normalization adjustments are an essential component of any business valuation. They are necessary to ensure that the operational results and financial position as reflected on the subject company's financial statements or tax returns accurately indicate the anticipated profit or loss on a going-forward basis. Valuation experts make normalization adjustments to the income statement to eliminate expenses that are non-recurring or unrelated to the business, as well as to properly account for expenses such as rent or officer compensation that may not be accurately reflected. Adjustments may also be made to the balance sheet in order to remove non-operating assets or adjust assets to fair market value. This article focuses on adjustments commonly made to the income statement.
The first step in normalizing the income statement is to determine the unadjusted Earnings Before Interest, Taxes, Depreciation, and Amortization, or EBITDA, a key indicator of the profitability of a business. To do so, all interest, tax, depreciation, and amortization expenses are added back to the business’s reported net income. Once these preliminary adjustments are complete, the normalization adjustments are made to reach normalized EBITDA.
Following are some of the more common income statement normalization adjustments:
1. Reasonable Compensation: In closely-held businesses, the owner typically draws a salary that may be considered “discretionary”. If the business is a sole proprietorship, the owner does not receive a salary at all. To ensure the business’s normalized EBITDA is accurately represented, it is necessary to make an adjustment reflecting the market rate that would be paid to a non-owner providing the same services. In this adjustment, the officer’s compensation reported on the income statement is added back to net income, and the reasonable compensation determined by the valuation expert through industry research is deducted. This adjustment removes the impact caused by a business owner receiving profits as a salary. It ensures EBITDA is not overstated by reflecting the appropriate market rate of compensation for the owner’s services.
2. Discretionary Expenses: Adjustments need to be made for expenses paid through the business that are not essential to its operations. Generally, any expense that would not be necessary for a potential buyer to incur to maintain the business’s operations should be added back to the reported net income. The types of discretionary disbursements that are adjusted can vary depending on the nature of the business. They may include all or a portion of travel and auto, meals, entertainment, club dues, and credit card charges. Following discussions with the business owner, expenses may be deemed partially discretionary in certain circumstances. In this case, a percentage is often applied. Additionally, discretionary expenses that may not be immediately apparent to the valuation expert can usually be identified through discussions with the business owner. It is important to note that an expense that may be deductible for tax purposes could still be classified as discretionary for valuation purposes.
3. Rent Expense: When the real estate from which the business operates is owned by the business owner personally or through a related entity, the rent charged to the business may not be representative of the fair market, meaning the business is paying either more or less than would be paid to an independent third party. A real estate appraiser generally determines fair market rent. If the business pays an amount over fair market rent, the excess would be added back to net income. Conversely, the differential would reduce net income if the amount paid is below fair market rent.
4. Non-Recurring Income and Expenses: Any reported income or expenses that are not expected to recur in the future can skew EBITDA and should be adjusted. The adjustment for a non-recurring income or expense item would decrease or increase net income, respectively. Examples of non-recurring income and expenses include settlement fees for legal actions, one-time expenses for repairs or maintenance, income or loss from discontinued operations, and gains or losses on sales of assets or other investments.
Income statement normalization adjustments play a vital role in determining a business’s expected ongoing operational performance. These adjustments help ensure the conclusion of value is both reasonable and adequately supported.

Time Management Strategies for Busy Law Firms

Wed, 17 Apr 2024 14:52:24 GMT

By: LEAP Legal Practice Management Software | AAML NJ Silver Sponsor

Family law firms are faced with many challenges when serving their clients due to the arduous nature of resolving these sensitive legal matters. Attorneys have a responsibility to ensure that the process doesn’t cause any additional stress to vulnerable parties that may include children, conflicting caregivers, and spouses. To provide effective service, family law firms should make sure each minute is optimized effectively, focusing on the needs of their clients. Attorneys and law firm staff can implement 5 strategies throughout the life of a family law matter to manage a heavy workload, prioritize tasks, and increase productivity without sacrificing quality.

Stay organized: There are many details and files to keep track of throughout a family law matter, which may include case and client information, historical files and documentation, correspondence including letters and emails with clients and other parties, and court forms, to name a few. Law firm staff need to have access to one centralized digital file that accounts for updates in real time. Dropbox, printed files in manila folders, or files stored on local drives all run the risk of being lost or becoming quickly outdated throughout the progression of the case. Legal technology that provides case and document management creates organization not only for the firm, but for the client service they provide. This is effectively demonstrated when records are easily accessible. For example, if a client calls requesting an immediate response or if you are at court and need to reference case details without printed documentation, centralized and mobile storage allows for timely action and quality service.
Accurately and instantly keep track of your billable time: One of the most arduous administrative tasks for family law firms is legal time recording. This process is especially tedious and requires minute-by-minute recollection if done reactively or manually. Law firms can look to implement a system to simultaneously track time while working on a case, but they need to be careful that it doesn’t create additional work for other staff. While many software programs offer stopwatches or timers, a comprehensive legal practice management solution is most effective to ensure that legal time tracking instantly records across all key functions of a family law case.

Automate administrative tasks: Sometimes, the most time-consuming functions for a family law matter do not include client and other party events like meetings or hearings, but consist of routine, but necessary, work such as creating correspondence, filling out forms, and sharing documents. It is necessary to eliminate double data entry and reduce the risk of input error for efficient production, and advances in legal technology allow firms to automatically and accurately populate case and client information. Reducing the time spent on filling out the Case Information Statement, Summons (Divorce), or Verified Complaint for Adoption, for example, allows staff to focus on other revenue- generating tasks such as responding to clients and creating invoices.
Collaborate effectively: Clients and other parties contact firms frequently and through different channels to keep the case progressing. Secure file-sharing platforms optimize communication and ensure that sensitive documents are only viewed by authorized parties. Third-party storage and sharing systems like Dropbox or OneDrive create these vulnerabilities and are limited in functionality necessary in family law cases, like restricting access and requesting e-signatures. Legal file sharing and collaboration technology provides firms with the assurance that their information is safe, while clients can have the convenience and transparency of this secure storage.
Make billing and invoice payments convenient: Family law firms that implement the above habits need to complete the case, not only with the resolution of the matter, but with the firm getting paid with a digital paper trail and in a timely matter. With family law practice management software that includes instant time recording, centralized accounting, and an online payment platform, the administrative work is reduced. Manual invoicing and processing payments is eliminated, creating opportunities for staff to focus on their existing clients or even new cases.

When these timesaving practices are implemented, family law firms can ensure that they are efficient and productive. Client and employee satisfaction will increase when firms optimize their processes. This creates further opportunities for firms to increase their revenue and grow their business. To learn more about how legal technology can help your NJ family law firm, visit leap.us/new-jersey.

Reviews of Soberlink: Insight into the Premier Alcohol Monitoring System in Family Law

Wed, 03 Apr 2024 13:48:12 GMT

By: Soberlink | AAML NJ Bronze Sponsor

The Soberlink system is an advanced, portable solution for monitoring alcohol consumption, offering a blend of a high-quality breathalyzer and innovative features like facial recognition and tamper alerts. This enables detailed, real-time supervision of a person's alcohol intake throughout the day.

For more than ten years, Soberlink has led the field of alcohol monitoring in Family Law, offering lawyers a reliable, evidence-backed method for handling alcohol-related issues. Its admissibility in child custody situations across the United States and Canada, coupled with its ability to offer Family Lawyers and Judges a trusted means of overseeing sobriety, has made it indispensable in protecting children from alcohol abuse.

Seth Nelson from Nelson Law Groureviews the value of Soberlink to him in reducing conflict, safeguarding children, and addressing or disproving allegations of alcohol misuse. Watch Review »

This detailed review provides an in-depth look at the Soberlink Device, explaining its operations and benefits for families navigating divorce.

The Soberlink System

Soberlink combines a handheld, professional breathalyzer with modern technology to measure, document, and communicate alcohol levels in users throughout their day. It's equipped with features to ensure the person tested is the actual user and to prevent any form of cheating.

Reagan Riddle of Armstrong Divorce & Family Law praises Soberlink for its technological edge in preventing result manipulation. Watch Review »

Soberlink's Advanced Reporting transforms testing data into a simple, color-coded calendar, making it easy to interpret test compliance at a glance.

Soberlink: How it Works

Utilizing Soberlink involves discreetly taking a breath alcohol test, which verifies the user's identity via facial recognition before sharing results instantly with predetermined contacts.

This system uniquely handles positive tests by initiating a Retest Cycle, ensuring accuracy by distinguishing between alcohol consumption and other sources of alcohol detection on breath, such as mouthwash.

Jeff Domen of Goranson Bain Ausley sees Soberlink as a game-changer for handling alcohol issues in divorces, emphasizing its simplicity for daily use and the accountability it provides to parents. Watch Review »

Pricing Details for Soberlink

To view Soberlink's pricing, visit their official pricing page. The system requires purchasing a device and a monthly monitoring service. Prices start at $299 for devices, with monthly plans beginning at $129.

Soberlink's programs cater to different needs: The Level 1 Program focuses on testing during parenting time, while the Level 2 Program requires daily testing. Each program offers Basic, Plus, or Premium plan options, varying in features and the number of recipients for test results.

Starting with Soberlink

Purchasing Soberlink is straightforward via their website. The process involves selecting a program, plan, device, and commitment level, followed by device purchase and completion of a monitoring agreement. This agreement, crucial for clarity and responsibility definition, distinguishes Soberlink from other self-monitoring options.

Soberlink in Divorce Contexts

Soberlink devices offer real-time alcohol monitoring, providing Family Courts with accurate evidence of sobriety, crucial in child custody decisions. It aids not just in proving sobriety but also in disproving false accusations of alcohol misuse, offering peace of mind and fairness in custody cases.

Soberlink shines in Family Law due to its non-intrusive monitoring, immediate result sharing, user-friendly software, and the reliability of its facial recognition and tamper detection technologies. Supporting Family Law professionals further, Soberlink provides comprehensive support, including AI-powered reporting, expert evaluations, and dedicated training, reinforcing its role in fostering decisions that are safe for children and equitable for all parties.

Defining the Role of the Expert

Tue, 02 Apr 2024 15:48:01 GMT

By: Zach Petersen of Marcum | AAML NJ Gold Sponsor

Imagine you are the owner of a famous and well-respected restaurant. In your employ are master chefs and culinary experts covering a range of different backgrounds and techniques. Among them are a saucier, creating various sauces used throughout the menu, and a pasta chef, responsible for imagining and delivering some of the menu’s entrees. There is also a pastry chef and a chocolatier, together creating beautiful and imaginative desserts. And, of course, you have a sommelier to select the perfect wines to pair with each dish.

Each night, the kitchen is tasked with providing a top-notch experience to the guests, with a menu that changes regularly. Every dish is thoughtful and well-executed. Each specialist works together to build a memorable experience and must know their role in relation to each other to deliver excellence.

Now imagine each dining experience is its own case, and you, as the owner, are the attorney responsible for delivering excellence to your customers (clients). You must direct your team and understand the capabilities and limitations of each member to produce an effective and cohesive approach.

Likewise, litigation can require several different experts in different fields to build the arguments necessary to prevail. Experts are necessary to review the facts, parse the technical requirements in their field, and provide an analysis or opinion based on their work. A chocolatier will not be qualified to present wine pairings for the guests in the same way that a financial expert cannot opine on the adequacy of manufacturing safeguards. Generally, professional standards expressly prohibit opinions on matters outside the expert’s scope. Although the expert may have a general understanding of how effective manufacturing safeguards can reduce overall risk to a business, they cannot be expected to deliver an opinion on what policies, procedures, and equipment are considered effective.

Depending on the facts of the case, much like our imaginary kitchen, several different experts may be needed to provide analyses within their specialties to provide a comprehensive and effective service to the client. Although a financial expert can certainly serve as your only expert if all relevant issues fall within the scope of that individual’s field of expertise, you should still consider carefully. Some issues may seem like concepts on which your expert can provide an opinion, but sometimes, they fall outside that scope of expertise or veer into legal determinations.

It is also vital that each expert is informed of their specific role for what they are being asked to do, even if the task is already within their field of expertise. If the kitchen has a theme for the evening, such as “An Evening in Tokyo," you probably wouldn’t want your pasta chef delivering authentic German spaetzle that night. Similarly, although a valuation expert can provide the value of a business under the fair market value standard, complete with a formalized report, if the jurisdiction governing the dispute only allows the use of the fair value standard or if valuation schedules would have sufficed for settlement purposes, the expert will have ultimately spent extra time developing valuation discounts or writing a report, to provide a conclusion of value that would not be appropriate for the client’s needs.

Experts, particularly financial experts, are a powerful tool for litigants and their attorneys. However, we, as experts, must be careful in providing opinions that are within the realm of our expertise. It is required, both from a legal standpoint and from the rules set forth by the associations we are members of. It is essential that experts, attorneys, and clients are all on the same page regarding what we can and cannot address. Being as specific as possible helps ensure our work is unambiguous, appropriate for the client's needs, and within the confines of our expertise and professional requirements.

So, next time you engage an expert or are engaged as an expert, make sure the expectations are clear to all parties, both verbally and in an engagement letter, as to what the expert is being asked to do. You’ll find better client outcomes and just might save everyone a headache.

Time Management Strategies for Busy Family Law Firms

Mon, 01 Apr 2024 14:31:13 GMT

By: LEAP Legal Practice Management Software | AAML NJ Silver Sponsor

Stay organized: There are many details and files to keep track of throughout a family law matter, which may include case and client information, historical files and documentation, correspondence including letters and emails with clients and other parties, and court forms, to name a few. Law firm staff need to have access to one centralized digital file that accounts for updates in real time. Dropbox, printed files in manila folders, or files stored on local drives all run the risk of being lost or becoming quickly outdated throughout the progression of the case. Legal technology that provides case and document management creates organization not only for the firm, but for the client service they provide. This is effectively demonstrated when records are easily accessible. For example, if a client calls requesting an immediate response or if you are at court and need to reference case details without printed documentation, centralized and mobile storage allows for timely action and quality service.
Accurately and instantly keep track of your billable time: One of the most arduous administrative tasks for family law firms is legal time recording. This process is especially tedious and requires minute-by-minute recollection if done reactively or manually. Law firms can look to implement a system to simultaneously track time while working on a case, but they need to be careful that it doesn’t create additional work for other staff. While many software programs offer stopwatches or timers, a comprehensive legal practice management solution is most effective to ensure that legal time tracking instantly records across all key functions of a family law case.

Automate administrative tasks: Sometimes, the most time-consuming functions for a family law matter do not include client and other party events like meetings or hearings, but consist of routine, but necessary, work such as creating correspondence, filling out forms, and sharing documents. It is necessary to eliminate double data entry and reduce the risk of input error for efficient production, and advances in legal technology allow firms to automatically and accurately populate case and client information. Reducing the time spent on filling out the Case Information Statement, Summons (Divorce), or Verified Complaint for Adoption, for example, allows staff to focus on other revenue- generating tasks such as responding to clients and creating invoices.
Collaborate effectively: Clients and other parties contact firms frequently and through different channels to keep the case progressing. Secure file-sharing platforms optimize communication and ensure that sensitive documents are only viewed by authorized parties. Third-party storage and sharing systems like Dropbox or OneDrive create these vulnerabilities and are limited in functionality necessary in family law cases, like restricting access and requesting e-signatures. Legal file sharing and collaboration technology provides firms with the assurance that their information is safe, while clients can have the convenience and transparency of this secure storage.
Make billing and invoice payments convenient: Family law firms that implement the above habits need to complete the case, not only with the resolution of the matter, but with the firm getting paid with a digital paper trail and in a timely matter. With family law practice management software that includes instant time recording, centralized accounting, and an online payment platform, the administrative work is reduced. Manual invoicing and processing payments is eliminated, creating opportunities for staff to focus on their existing clients or even new cases.

When these timesaving practices are implemented, family law firms can ensure that they are efficient and productive. Client and employee satisfaction will increase when firms optimize their processes. This creates further opportunities for firms to increase their revenue and grow their business. To learn more about how legal technology can help your NJ family law firm, visit leap.us/new-jersey.

How Automation and Legal Technology is Revolutionizing Family Law Practices

Tue, 12 Mar 2024 13:22:26 GMT

By: LEAP | AAML NJ Silver Sponsor

Family law is continuously evolving due, in part, to shifts in societal attitudes, legal reforms, and changes in family dynamics. For NJ law firms specializing in family law, staying ahead in this ever-changing environment means being able to handle a wide array of sensitive issues—ranging from adoptions and divorces to cases of domestic violence—with efficiency and empathy. This is where legal practice management technology and automation can help revolutionize the way family law firms operate.

Automation creates efficiencies around the complexities of family law cases, and when utilizing legal practice management technology, it’s easier for lawyers to focus on what truly matters: their clients.

Let’s explore the features of legal automation, its benefits for family law firms, and how legal practice management technology is paving the way for the future of law firm efficiency.

Key Features of Automation and Legal Practice

Management Technology

Legal automation creates efficiencies for law firms, making it easier for attorneys and their support staff to manage their day-to-day activities. Legal practice management technology offers family law firms a suite of features tailored to the specific needs of managing sensitive and complex family law cases.

These features include:
Case Management: Organizes all family law case-related documents, communications, and information in one centralized location, facilitating easy access and management.

Client Communication Tools: Provides secure and efficient communication channels for attorneys and clients, ensuring confidentiality and timely exchanges of family law correspondence.

Document Automation and Management: Automates calculations and the creation of standard legal documents, saving time and reducing errors. It also helps in organizing and storing documents securely.

Time Tracking and Billing: Efficiently track billable hours and create accurate invoices so family law firms can enhance transparency and trust with their clients.

Calendar and Task Management: Helps in scheduling meetings, deadlines, and court dates, ensuring that critical tasks are not overlooked.

These key features of legal practice management technology improve the operational efficiency of family law firms and enhance the quality of service provided to clients.

The Benefits for Family Law Firms

The adoption of legal practice management technology with automation brings multiple benefits to family law firms, especially in handling cases related to adoption, child support, divorce, domestic violence, and family mediation. Here are some of the key advantages:

Enhanced Efficiency: By automating routine tasks and centralizing case information, family law attorneys can focus more on their client's needs rather than on administrative burdens.

Improved Data Accuracy: Automated document generation reduces the risk of human error, ensuring that legal filings and calculations are accurate and compliant with current laws.

Better Client Communication: Secure messaging platforms facilitate prompt and confidential client communication, fostering trust and satisfaction. Centralized Case Management: The ability to easily access and manage all aspects of a NJ family law case from a single platform helps in developing more effective case strategies.

Cost-Effectiveness: Reducing the time spent on administrative tasks and minimizing errors leads to lower operational costs and, potentially, more competitive pricing for clients.

For NJ family law cases, which often involve high emotions and sensitive situations, these benefits translate into more compassionate and efficient client service.

Setting a Standard for Family Law Legal Services

Legal practice management technology is not just changing the current operations within family law firms; it's setting the stage for a future where efficiency, accuracy, and client satisfaction are paramount. As these technologies evolve, family law firms will be able to handle cases more swiftly and with greater precision, offering tailored legal services aligned with unique family law circumstances.

The adoption of automation by family law firms represents a significant step forward in how legal services are delivered. By embracing these technologies, firms can enhance their operational efficiency, improve the accuracy of their work, and provide superior client service. It’s not just about keeping up with the times; it’s about setting a new standard and meeting the expectations of family law legal services that clients are looking for.

Women & Investing: A Stronger Grip on Their Financial Futures

Thu, 07 Mar 2024 18:20:51 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Wilmington Trust’s Meghan Shue, Head of Investment Strategy & Portfolio Construction, and Christy Watkins, Regional Investment Advisory Lead, discuss how women face unique challenges that highlight the importance of making planning a priority. They explore the characteristics that make women adept investors, and where opportunity exists for women to fulfill their potential as captains of their financial destinies, which is particularly important after divorce.

Read the full article: Women & Investing: A Stronger Grip on Their Financial Futures (wilmingtontrust.com)

Lifestyle Analysis: A Key to Equitable Divorce Agreements

Fri, 01 Mar 2024 15:30:16 GMT

By: Nicholas Fecci | AAML NJ Gold Sponsor Marcum

Marital Lifestyle (Analysis):

The marital lifestyle or the standard of living experienced when a couple resides together during marriage can be a crucial element in divorce proceedings. Financially, how did the couple live while they were married? What amount and type of income supports this lifestyle? How much alimony/child support should be awarded to sustain this lifestyle? These questions can be answered by engaging a forensic accountant to perform a lifestyle analysis.

What is a Lifestyle Analysis, and what does it provide?

A Lifestyle Analysis is a thorough examination of the standard of living that a couple enjoyed during their marriage. This analysis is crucial to help establish a factual basis for the couple’s spending and saving patterns and overall financial status. Forensic accountants can paint a factual picture of the marital lifestyle and expected future spending through a diligent review of historical financial records such as bank, credit card and investment account statements, as well as tax returns, property records, and loan documents, to name a few.

By reviewing the above documents as well as interviewing the spouse who manages the financials (if that is a feasible option), a Lifestyle Analysis can play a crucial role in the divorce process, especially when it comes to the calculation of alimony/child support, uncovering hidden assets and identifying various sources of income.

Spending:

A look into historical spending from a party’s marriage can provide a benchmark for the future spending of each person. A review of the bank statements allows a forensic accountant to categorize individual transactions into the income and expense categories identified from the Case Information Sheet, taking into consideration the following:

· Spending of the parties both individually and jointly.

· Recurring and non-recurring expenses.

· Dissipation of marital assets (depletion of marital funds), if any.

· All of the above considerations can paint a picture of the amount required to maintain a similar standard of living post-divorce to help the parties and their attorneys determine alimony and/or child support payments.

Hidden Assets:

During a divorce, it is not unusual for one party to attempt to conceal certain assets from the equitable distribution process. Through a review of bank statements provided, forensic accountants can uncover various hidden assets by analyzing transactions within the account statements, such as the following:

· Transfers to additional bank/investment accounts not known by one of the parties.

· Payments to loan institutions uncovering additional assets purchased during the marriage.

· Transfers of money to corporations or entities for investment in their business.

· Uncovering hidden assets is essential to ensure a fair and equitable division of property during a divorce. Even though parties are required to be transparent in their financial disclosure, a thorough lifestyle analysis is an essential step in ensuring that all assets are on the table and considered during divorce proceedings.

Other Sources of Income / Earning Habits:

The Lifestyle Analysis can also provide insight into additional sources of income that may not have been disclosed, including but not limited to the following:

· Spending in excess of reported income without accumulating debt can indicate additional, undisclosed sources of income or assets.

· Review of the income tax returns can identify investment income such as interest, dividends, and capital gains. These income sources can also be identified and confirmed through analysis of bank statements.

· Direct deposits from additional employment unknown to one party.

Once the entirety of income is disclosed there is a clearer picture of the true funds required to support the standard of living of the parties.

The above discussion is a glimpse of why a well-prepared lifestyle analysis can be essential in ensuring all income and expenses are identified during divorce proceedings. It helps to ensure the likelihood of an equitable settlement by revealing any discrepancies between the lifestyle maintained and the income and assets reported. It can also help the court make informed decisions based on the true economic partnership of the marriage, ensuring the dissolution process is not only legally sound but also adheres to the principles of fairness and equity for both individuals as they transition to their new, independent lives.

3 Habits of Successful Family Law Firms: Business Tips for Legal Professionals

Thu, 15 Feb 2024 16:53:37 GMT

By: LEAP Legal Software

3 Habits of Successful Family Law Firms: Business Tips for Legal Professionals

As a legal professional working in family law, you’re an expert in navigating legal matters, but your legal education might not have prepared you to successfully navigate another critical but often overlooked aspect of the profession: namely, how to manage the business of law. While business obviously isn’t the focus of family law, it’s important to remember that family law is also a business. In order to achieve the highest levels of success for you and your clients, you need to be able to negotiate the financials of lawyering in addition to the practice of family law itself.

In this article, we’ll look at 3 common habits of successful law firms to arm you with practical business tips that you probably didn’t learn in law school.

1. Dedicate time to building the firm as a business

For many lawyers practicing in family law in New Jersey, the word “sales” is an anathema. However, to maintain and enhance the financial security of their firms, attorneys have to get over their aversion to drumming up business.

If you want more clients and matters, you need to “sell” your firm, plain and simple— but it’s crucial to do this in a way that leaves your clients feeling satisfied and respected at the end of the interaction. Successful firms do this by ensuring that there is constant alignment between the legal services that they offer, what their marketing material says, and what they and their staff say when they are actually selling the firm’s services. It’s this alignment and consistency of messaging that builds a powerful reputation, which will eventually repeat more business and greater cashflow.

Tips for action:
Have a vision for the future of your firm and share it with your staff Be attentive to the concerns of disgruntled clients
Have a coherent and consistent marketing plan

2. Employ smart people and treat them well

In most family law firms, people are both your biggest expense and your greatest asset. When morale is low and the workplace is less productive as a result, your people can feel like a cost. On the other hand, when your team is satisfied, respected, and properly equipped to do their jobs, your firm will produce more value for its clients; in fact, research from the London School of Economics shows that satisfied employees do more for their companies. This rule applies to law firms both big and small.

To make sure that your firm’s employees remain satisfied and productive, it’s important to provide proper and regular training, equipment, and support, and in many cases, smaller law firms are turning to legal technology to help their employees succeed. 84% of law firm employees in a recent Statista report said that legal technology had improved their firm’s productivity. Proper technology, a welcoming environment, and regular training can help your firm do more with less.

Tips for action:
Organize regular training for your staff
Provide an enjoyable workplace environment
Provide the best tools for your employees to do their jobs

3. Become an expert in customer service
Attorneys don’t learn customer service in law school, but strong customer service

skills are one of the most important keys to success for smaller law firms.

Smart customer service begins with thoughtful communication; from the moment the clients walk through the door until the matter (no matter how big or small) is completed, successful attorneys keep the client fully and repeatedly informed about the progress of the matter. In doing so, they consistently demonstrate how the firm values the client, which helps build the firm’s reputation and bring in new business. Referrals from satisfied existing clients are a primary referral source for many firms, but lawyers sometimes forget this and, as a result, can often overlook the value of good customer service.

Successful law firms know that the success of the customer is integral to the success of their firm. These firms and their employees are always coming up with

new ways to better serve their clients, including self-service portals where clients can book appointments, pay bills and make deposits, view their matters, and more. Great customer service requires a smiling face—but it also requires proper tools and equipment to meet the client’s needs and expectations.

Tips for action:
Create a workplace culture that values good customer service Reward employees who go above and beyond for the client Keep in constant contact regarding matter updates

Smarter Business Practices Benefit Everyone

When you implement smart business practices at your firm, you’re doing your due diligence to secure its financial success, and, in turn, the livelihoods of everyone you employ. But even beyond that, New Jersey attorneys should understand that financially healthy firms provide a higher standard of service, which benefits their clients and the community at large.

For more practical tips on how to succeed in today’s legal world, download the free whitepaper, “11 Habits of Successful Law Firms.”

The Importance of Accurate Reasonable Compensation

Thu, 18 Jan 2024 15:06:08 GMT

By: Christopher Byrnes, MBA I Marcum LLP

Accuracy is not just a goal in business valuation—it's a necessity. Marcum LLP performs valuations regularly and understands that precise calculations and judicious adjustments are essential for reliable valuations. One of the most critical adjustments we make is determining 'reasonable compensation' for business owners, an aspect often overlooked yet vital for presenting an authentic financial portrait. This article delves into the nuances of reasonable compensation and its profound impact on business valuation, sharing why it must be carefully assessed to reflect the true economic health of a company.

Reasonable compensation is a critical adjustment in a business valuation as it ensures that the profit/loss recorded by the business reflects the true economic picture by adjusting for the appropriate level of compensation for the business owner. If an owner is over-compensated, the business might appear less profitable than it actually is, as would under-compensation inflate its profitability. Both scenarios would lead to inaccurate valuations.

Numerous resources can be utilized to provide a guideline for reasonable compensation, as would using industry statistics of compensation within the owner’s industry. However, reasonable compensation is not simply based on job title and hours worked; it must also consider the annual performance. For example, the CEO of a consulting firm whose revenue is $5,000,000, where the CEO generates a small portion of the business revenues as compared to a CEO who brings in almost all $5,000,000 in revenue. If valuation experts were to utilize statistics based solely on the industry, the revenue of the company, and hours worked, they would have arrived at the same reasonable compensation for both CEOs listed above. However, this would not portray an accurate picture as an owner who generates $5,000,000 of revenue would obviously be entitled to a much higher compensation level than that of a CEO who originates very little in revenue. In this scenario, replacement compensation should consider what benefits the CEO brings to the company instead of only focusing on their hours worked and job title.

For example, let’s compare the reasonable compensation levels of professional athletes. There are thirty-two teams in the National Football League, each with a starting quarterback. Over the course of a season and career, there will be significant differences in their statistics and success despite all having the same job and working the same hours within the same industry. If an athlete were hypothetically replaced, the amount paid would vary based on their actual accomplishments. The same approach must be utilized when considering each business owner’s reasonable compensation.

The art of business valuation hinges on the fine balance between numbers and judgment, and nowhere is this more evident than in establishing reasonable compensation. As we have seen, this is not a simple arithmetic or a one-size-fits-all approach but a complex consideration of individual contribution and industry standards. This is why choosing a firm with the experience of having valued thousands of businesses, such as Marcum, is paramount.

3 Habits of Successful Family Law Firms: Business Tips for Legal Professionals

Mon, 08 Jan 2024 16:02:24 GMT

By: LEAP Legal Software | AAML NJ Silver Sponsor

In this article, we’ll look at 3 common habits of successful law firms to arm you with practical business tips that you probably didn’t learn in law school.

1. Dedicate time to building the firm as a business

Tips for action:
Have a vision for the future of your firm and share it with your staff Be attentive to the concerns of disgruntled clients
Have a coherent and consistent marketing plan

2. Employ smart people and treat them well

Tips for action:
Organize regular training for your staff
Provide an enjoyable workplace environment
Provide the best tools for your employees to do their jobs

3. Become an expert in customer service
Attorneys don’t learn customer service in law school, but strong customer service

skills are one of the most important keys to success for smaller law firms.

Successful law firms know that the success of the customer is integral to the success of their firm. These firms and their employees are always coming up with

Tips for action:
Create a workplace culture that values good customer service Reward employees who go above and beyond for the client Keep in constant contact regarding matter updates

Smarter Business Practices Benefit Everyone

For more practical tips on how to succeed in today’s legal world, download the free whitepaper, “11 Habits of Successful Law Firms.”

Practical Considerations in Representing the (Un)Happily Married (Pt. 3 of 3)

Tue, 02 Jan 2024 17:59:50 GMT

Practical Considerations in Representing the (Un)Happily Married (Pt. 3 of 3)

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Spouses getting divorced. One is the beneficiary of a trust. Can trust assets be reached by the other spouse? In part 3 of this 3-part series, Sharon Klein discusses tax traps, creative planning techniques & practice tips when trusts feature on the divorce balance sheet.

Listen to Sharon L. Klein, EVP, President-Family Wealth, Eastern U.S. Region, Fellow of The American College of Trust and Estate Counsel (ACTEC), explore the topic of attacking or defending trust assets in divorce in this 3-Part podcast series:

Part 1 – What to look for in the trust agreement

Part 2 – What to look for in the history of trust administration

Part 3 – Tax traps, creative planning techniques & practice tips

Listen to the full episode: Practical Considerations in Representing the (Un)Happily Married (Pt. 3 of 3) (actecfoundation.org)

How Legal Technology Boosts Profits for NJ Family Law Firms With Improved Billable Hours Tracking

Courtney Hamm — Thu, 07 Dec 2023 18:38:58 GMT

Experienced attorneys know that manual time-tracking methods often lead to underreported hours and lost revenue. In fact, according to a report from Thompson Reuters, 56% of lawyers admit to underestimating their billable hours. This means that many New Jersey family law firms are losing money due to inefficient billable hours tracking procedures.

That’s why a growing number of NJ family law firms are abandoning outdated timetracking software and embracing modern legal timekeeping solutions that use automation to track billable hours more efficiently. Unlike older legal software solutions, which require attorneys to manually track and input their time, today's leading timekeeping solutions offer billing technology that eliminates manual work and simplifies the process of getting paid for all the services provided to clients by law firms.

Outdated services no longer receive ongoing support or new product updates, but with the latest legal timekeeping software, you’ll get access to innovative features and other resources to ensure that your firm never misses a billable minute. In this blog, we’ll take a closer look at how this technology works and examine where it might be headed in the future.

How Modern Legal Software Boosts Profitability for NJ Family Law Firms

Innovations in legal billing technology have transformed the way that lawyers keep track of their billable time. Before the arrival of the latest timekeeping software, attorneys kept track of their hours through a variety of different means — either on pen and paper, in a spreadsheet, or in several legacy legal software programs. Each of these methods had its own inefficiencies, and each of these contributed to underreported hours and lost revenue for firms. But now, with today’s legal technology, New Jersey family law attorneys can rely on the power of cutting-edge features to improve accuracy in billable hours tracking and earn more money for their firms:

Instant timekeeping to capture all billable work: Attorneys are busy, and during the course of a busy day, you might easily forget to check your watch or activate a timer to keep track of the minutes or hours that you spend working on a particular matter. With legal software available through LEAP, you no longer have to worry about keeping track of your time on a watch or in a spreadsheet. Instead of checking the clock, you can simply click a button, and have the time monitored and recorded for you directly in LEAP.
Streamlined timesheets to optimize time management: Legal professionals are used to bouncing from spreadsheet to spreadsheet and folder to folder, often navigating a vast mountain of paperwork, files, and programs in the course of a single day. When attorneys have to bounce between different spreadsheets or legacy software programs to record billable time, view financial reports, and access other crucial matter information, they risk wasting energy and time on tedious and error-prone tasks. But with today’s legal timekeeping technology, this is no longer an issue; you’ll be able to enter time for multiple matters in a single window, monitor your performance against budget, and even view a brief financial summary for the selected matter.
Mobile access to capture time on the go: Unlike outdated technologies, modern legal timekeeping technology is access via mobile device, making it possible for users to capture time from the courthouse, on the go, or from any other location with an internet connection. This is a huge development for all legal professionals, particular those in NJ family family, since they’ll no longer have to worry about losing or incorrectly recording billable time when they’re working away from the office.

Future Outlook on Technology in Billable Hours Tracking

As legal technology continues to advance, the role of technology in legal billing will continue to expand, and NJ family law is no exception. According to the American Bar Association, 12% of corporate legal budgets will be spent on legal tech in 2025 — that’s way up from 3.9% in 2020. With the latest innovations in legal software hitting the market at a rapid pace, law firms can expect to see increased efficiency, accuracy, and profitability both in the near- and long-term.

One area of development is mobile apps, which enable particular lawyers to track their billable hours from anywhere, at any time. This means that even when they're on the go, they can easily capture every minute of billable work, reducing the risk of lost revenue. Another area of focus is automation, with new software continuing to streamline the time-tracking process and allow for more accurate and efficient billing. This technology can eliminate the need for manual input, reducing the risk of human error, and increasing productivity.

Both the future and present of legal timekeeping software are looking bright, with technology poised to continue its transformation of law firm productivity. By embracing new tools and staying up-to-date on the latest trends, family law firms can position themselves for success in years to come as the pace of innovation continues to accelerate. See how timekeeping software can make your NJ family law firm more profitable.

Legal Publishing Technology: Revolutionizing Productivity for New Jersey Family Law Firms

Courtney Hamm — Fri, 10 Nov 2023 14:22:22 GMT

By: Leap Legal Software | AAML NJ Silver Sponsor

“LEAP is awesome! LEAP helps me to be more efficient at practicing law. The forms and auto-population help me to work smarter and not harder. The product and customer service have been fantastic!” — Lori C., LEAP User

Lawyers are known for working long hours. In fact, according to a recent Bloomberg survey, some attorneys even exceed 60 hours per week. While this might not come as a surprise to legal professionals, it does make us wonder: how are lawyers spending their time?

As all legal professionals know, it’s not always the case that lawyers are confined to courtrooms or boardrooms. In fact, a significant part of their workweek is likely spent on crucial but repetitive tasks such as data entry, legal form and document completion, and composing written correspondence. While these tasks are essential to a firm's success, they can be tedious, slow, and prone to errors that can be both costly and time-consuming to rectify.

That’s why legal publishing technology is helping family law firms in New Jersey boost productivity. By automating the creation of forms and documents, streamlining legal drafting, and supporting other key administrative and legal functions, legal publishing software is helping NJ family lawyers achieve optimal performance. These features enable family law lawyers to complete more work in less time, leading to increased efficiency and profitability, regardless of the number of hours they work per week.

How Legal Publishing Technology Saves Time and Money for NJ Family Law Firms

Legal publishing technology offered by the LEAP legal practice productivity solution saves firms time and money by delivering five key benefits:

1. Easily open matters: LEAP has over 3,000 pre-built matter types for all common areas of law, which means that LEAP users can easily create, modify, and resolve all of their matters through LEAP. Instead of creating a new matter framework from scratch in every instance, users can pick up where they left off with readymade templates, delivering a seamless user experience that helps professionals and firms be more productive than ever before.

2. Reduce mistakes with automation: Full Microsoft and Adobe integrations allow LEAP users to quickly create documents, forms, and letters with data pulled directly from the LEAP legal practice productivity solution. This means that users don’t have to spend hours of every month inputting the same client information over and over again. With LEAP, you can simply enter client information once — this information then auto-populates across all relevant fields, reducing errors by eliminating manual data entry.

3. Simplify document production: Before the arrival of legal publishing technology, legal professionals had to obtain and complete all necessary legal forms and documents by hand. But with LEAP, this is no longer an issue. Instead of scrambling to manually obtain and complete a document or form, LEAP can turn to a library of over 12,000 legal forms and documents that cover the most commonly used forms and areas of law in their state. LEAP also helps you import custom, firm-specific documents into the LEAP practice productivity solution. This makes the workday less stressful and more productive.

4. Streamline legal drafting: The LEAP Clause Library simplifies the process of legal drafting, which puts time back in the hands of LEAP users. With LEAP, you can access all of your clauses from one location and quickly insert them in another location with a single click. Expedite the drafting of contracts, forms, pleadings, and more, so you can increase your firm's efficiency and profits.

5. Ongoing client support: Access free training resources like bi-weekly webinars to ensure you're getting the most out of automated forms and legal publishing features in LEAP. LEAP is committed to helping our customers get the most out of our platform and will provide ongoing support to ensure that our users are getting the greatest possible value.

Together, these features create new efficiencies within your organization that streamline operations and boost productivity. Save money with modern legal technology.

Go Further with LEAP

As the only legal practice productivity solution, LEAP has been helping firms succeed for over 30 years. Our long-running track record of client success was one of the reasons why we were named “Best Software as a Service Product for Legal Services” at the 2023 SaaS Awards. It’s also one of the reasons why LEAP is the preferred technology provider for New Jersey family law firms.

LEAP offers best-in-class legal publishing features to optimize your firm’s operations. With a library of over 3,000 pre-built matter types and 12,000 of the most commonly used legal forms and documents, LEAP delivers unparalleled access to cutting-edge tools and automation services that deliver value from day one.

Schedule a demo today to see these features in action.

Practical Considerations in Representing the (Un)Happily Married (Pt. 2 of 3)

Courtney Hamm — Tue, 07 Nov 2023 19:28:12 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Spouses getting divorced. One is the beneficiary of a trust. Can trust assets be reached by the other spouse? In part 2 of this 3-part series Sharon Klein will examine what to look for in the trust's history to see if assets are vulnerable in divorce.

Fellow of The American College of Trust and Estate Counsel (ACTEC), Sharon L. Klein, EVP, President-Family Wealth, Eastern U.S. Region, discusses an important step in analyzing whether trust assets could be on the table in the divorce proceedings, which is the review and consideration of the history of the trust administration. This podcast is Part 2 of a 3-Part podcast series:

Part 1 – What to look for in the trust agreement
Part 2 – What to look for in the history of trust administration
Part 3 – Tax traps, creative planning techniques and practice tips

Listen to the full episode: Practical Considerations in Representing the (Un)Happily Married (Pt. 2 of 3) (actecfoundation.org)

Practical Considerations in Representing the (Un)Happily Married (Pt. 1 of 3)

Wed, 11 Oct 2023 20:00:43 GMT

By Wilmington Trust| Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Spouses getting divorced. One is the beneficiary of a trust. Can the trust assets be reached by the other spouse?

Listen to Sharon L. Klein, EVP, President-Family Wealth, Eastern U.S. Region, Fellow of The American College of Trust and Estate Counsel (ACTEC), offer 8 key questions to ask to determine if trust assets are vulnerable during divorce. This podcast is Part 1 of a 3-Part podcast series:

Part 1 – What to look for in the trust agreement
Part 2 – What to look for in the history of trust administration
Part 3 – Tax traps, creative planning techniques and practice tips

Listen to the full episode: Practical Considerations in Representing the (Un)Happily Married (Pt. 1 of 3) (actecfoundation.org)

Template Document Packs: How Document Automation Boosts Productivity for New Jersey Law Firms

Thu, 05 Oct 2023 15:12:14 GMT

By: LEAP Legal Software | AAML NJ Silver Sponsor

No matter the area of law, attorneys are famous for dealing with many legal documents in the course of their normal practice. In fact, according to Arnold & Porter, the average attorney uses so much paper in a year that the sheets would span the circumference of the Supreme Court Building 66 times if they were laid end-to-end. As Franz Kafka once quipped, lawyers are people who write 10,000-word documents and call them 'briefs.'

Lawyers are writers, and the legal profession is built on the written word. But the prevalence of written forms and documents in the legal field shouldn't cause lawyers to feel burdened by tiresome, detail-oriented work. In today's digital world, attorneys can rely on software to do some of the heavy lifting, giving lawyers the freedom to use their skills in more valuable and higher-impact areas of their practice.

Document Automation Helps Firms Save Money

Attorneys are often skilled writers who approach their work with enthusiasm, but the repetitive and tedious aspects of document preparation can be draining, particularly when an attorney has many documents to prepare. That's why legal document automation is gaining in popularity among professionals who want to streamline their work and maximize their efficiency. By automating many of the most important, but tiresome, aspects of document composition and preparation, LEAP optimizes this cumbersome process, making it possible for attorneys to focus on more fulfilling and lucrative work.

The library of automated documents available through LEAP was developed through the combined efforts of leading legal and IT professionals, ensuring that all client needs are properly addressed by the LEAP legal practice productivity solution. With LEAP, an attorney enters basic case information into a form or document only once. This information then automatically populates across a variety of relevant forms and templates, eliminating double data entry. This saves legal staff time so they can spend time on the aspects of their practice that they find more engaging, and eliminates the possibility of error that comes with this kind of repetitive work. Automation ensures consistency and accuracy across the board.

Revolutionize Productivity with LEAP

LEAP continues to build and maintain an extensive and evolving library of pre-automated forms and templates that cover the most common documentation required for New Jersey family law and other common areas of law in each of our core states. A key part of the philosophy of LEAP is providing dedicated and personalized support for each of our clients, which includes no-cost tech support and the ability to connect directly with our content team to ensure that the forms and templates meet your firm's unique needs. As we continue to grow and innovate, LEAP is always looking for ways to provide a more efficient, more customized experience for each of our clients. Enter the Template Document Pack — a new service that is already available to all LEAP clients, making automation even more accessible in their day-to-day practice.

With the Template Document Pack, LEAP clients can now submit their firm's regularly used letter templates to LEAP to have these templates uploaded to their legal practice productivity solution. Shortly after the forms are submitted, the content team at LEAP will then provide customized, automated versions of these documents exclusively for the firm's use. This means that clients can enjoy the benefits of automation, including increased accuracy and efficiency, while retaining all firm-specific details.

As the original advocates for document automation, LEAP's content team is thrilled to showcase more of what automation can accomplish for clients. By delivering top-notch document services to our users, LEAP enables legal professionals to spend more time on the important aspects of their practice, while also empowering firms to become more productive and profitable.

Book a demo to see LEAP document automation in action.

How to Establish a Competitive New Jersey Family Law Firm

Tue, 05 Sep 2023 15:45:35 GMT

By: LEAP Legal Software | AAML NJ Silver Sponsor

One of the biggest challenges that New Jersey law firms face is increased competition. In 2022 alone, thousands of new practices opened in the US, meaning it’s more important than ever to have a solid foundation to stay relevant and ensure long-term success. Senior staff members must reassess their operations to identify inefficiencies that impact their competitive edge and establish strong routines across every department. As the leader in legal technology for over 30 years, LEAP Legal Software understands the common challenges that New Jersey matrimonial legal professionals face that prevent them from being successful. Let’s look at how to mitigate these challenges to establish a thriving practice.

Step 1: Decide to be Efficient

The first step to becoming productive is acknowledging the manual processes that cause your staff to focus on tasks that take away from billable work. Many New Jersey law firms experience this with document assembly and management, time recording, and billing. While it seems more lucrative to encourage staff to spend more time on one project, it makes it more difficult to scale your practice to service more clients without significantly increasing overhead costs. While it may seem overwhelming to address these core activities, these inefficiencies can be addressed for long-term gains.

Action Checklist

Brief staff on your plans and goals
Identify the areas where technology can provide the most productivity impact (i.e., document production, timekeeping, billing)
Begin the software evaluation process

Step 2: Join the Early Adopters of Software

As the legal industry has become increasingly more digital, many family law firms have already moved operations to the cloud. Newer firms typically have the competitive edge that they leverage modern technology from day one. Therefore, established New Jersey practices must implement cloud-based software to keep up and provide efficient client services. While the ultimate goal of software implementation should be to eliminate the challenges identified in Step 1, it should also:

Establish a single version of the truth,
Improve accessibility so that staff members can work from home or on the go,
Instantly capture time to improve billing accuracy and frequency, and
Ensure trust accounts remain state-bar and IOLA/IOLTA compliant.

Action Checklist

Determine where data gaps exist
Create a plan with your staff to increase remote and hybrid work options
Evaluate software that serves as one solution for practice management, automating legal forms, and all financial transactions, including billing and trust accounting
Step 3: Enjoy Practicing Family Law

While this might seem like a no-brainer, but the old saying is true that you can’t succeed if you don’t enjoy the work you do. New Jersey matrimonial attorneys deal with highly sensitive and emotional matters that can take a toll on them if they don’t truly love it. If they don’t have the appropriate support, staying connected to the work can become difficult. Additionally, many people leave their current firm and even the legal industry altogether because they don’t have enough time to practice the law. Instead, they are forced to focus on manual tasks that take up most of their time. Senior leaders need to work with their staff to determine clear responsibilities and career plans to keep them engaged.

Action Checklist

Set realistic and clear expectations and boundaries with clients
Organize matters and data in an intuitive solution
Dedicate time for career development and staff check-ins

Conclusion
While these three steps provide New Jersey family law firms with a solid foundation to begin improving efficiency, they can address several other areas to improve productivity. As your practice embraces digital transformation, LEAP can provide you with comprehensive checklists on the steps needed to establish a competitive, efficient, and thriving family law firm. Download the11 Habits of Successful Law Firms e-book to start improving operations today.

Splitting Heirs- The Sad Tale of Hubby and Lovey: Preparing One’s Estate for the Possibility of Divorce

Tue, 29 Aug 2023 15:41:26 GMT

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Learn more about estate planning for divorcing couples, including grey divorce, when couples in their 50s and older—often with significant assets—decide to go their separate ways in this episode of “Splitting Heirs,” featuring Wilmington Trust's Sharon L. Klein, EVP, President-Family Wealth, Eastern U.S. Region and Lowenstein Sandler Trusts & Estates Chair Warren Racusin.

Listen to the full episode: https://bit.ly/3DAcLut

Benefits of Automated Document Assembly and Management for NJ Family Law Firms

Wed, 09 Aug 2023 13:44:45 GMT

By Ben Kent | LEAP, AAML NJ Silver Sponsor

New Jersey family law cases are complex and often require the filing of specific legal forms and documents depending on the type of matter being litigated, such as child support, alimony, or divorce proceedings.

Preparing official legal documents such as Case Information Statements; Child Support Guideline Worksheets; Case Management Orders; legal pleadings and motion papers; and the various correspondence in a legal matter, such as letters and memos, can be complicated, and lawyers and their teams run the risk of errors if they do not utilize automation technology to handle document creation.

Document automation software, especially software that is purpose-built for NJ family law practice, reduces these risks and offers three distinctive benefits:

1. Do more work, more quickly; take on more clients and make more money.

2. Access up-to-date and most recent files; ensure one version of the truth.

3. Securely send, collaborate, and receive correspondence and minimize security risks.

Benefit 1: Do More Work, More Quickly

Case and client information can be difficult to keep track of, especially when an attorney is handling multiple active matters at once.

By having one central location to enter case and client details, attorneys can access accurate data faster. Automation software also makes data entry more efficient and accurate than ever before.

For example, by entering family details once (such as the names and birthdates of the children, and parents' employment details), automation software allows you to generate Child Support Guideline Worksheets and other important case documents with ease, while also avoiding duplicate data entry. This saves time by eliminating the manual work previously associated with these tasks.

This automation allows NJ family law firms to spend more time on other work, which enables the firm to take on a greater number of clients, expand the practice, and ultimately make more money.

Benefit 2: Access Up-to-Date and Most Recent Files

A centralized location for client information, case documents, and other important files ensures that NJ legal professionals have reliable access to the most recent case information.

By implementing modern cloud-based legal software for NJ firms, documents and case files can be arranged per case, and include details such as creation dates, author, and any associated tasks such as emails, secure document sharing, and submission to the NJ courts. This eliminates the need to dig through inboxes or dusty physical file rooms and eliminates the need to remotely access servers.

Benefit 3: Securely Send, Collaborate, and Receive Correspondence

NJ family law cases rely heavily on internal and external collaboration. However, when dealing with sensitive information such as financial details, medical information, and other private matters, sending correspondence that doesn't adhere to security guidelines runs the risk of being non-compliant with ABA Model Rule 1.1 Comment 8 (https://info.leap.us/l/111142/2023-08-03/79whzm), which sets forth the attorney's Duty of Technological Competence. Attorneys are obligated to stay abreast of changes in technology to the extent that those changes affect their area of practice, and attorneys are expected to understand the common technologies of the time and how to avoid violating their duty of confidentiality when utilizing new technologies.

Outlook, Dropbox, and other file-sharing methods have security measures that are not purpose-built for law firms. These systems are unlikely to integrate directly with a legal practice management software system or are less likely to include valuable automation features.

LawConnect, a secure document sharing and collaboration tool for law firms, provides data encryption and security measures, while also saving directly to the corresponding matter in the LEAP legal practice productivity solution. This is the only software solution needed for NJ family law firms looking to streamline and secure client and matter information and correspondence.

Conclusion

NJ family law firms must be diligent when working on sensitive matters and need to embrace technology that will allow them to operate more efficiently.

By implementing automation software, especially software like LEAP, which is made for use by NJ family law firms, law firms will be set up for improved client satisfaction, growth, expansion, and increased revenue for their businesses.

Learn how LEAP can help your NJ family law practice today (https://info.leap.us/l/111142/2023-08-03/79whzj).

Your First Family Law Case Involving a Business Valuation

Tue, 08 Aug 2023 18:58:15 GMT

By Judy Doyle | CPA Withum AAML NJ Gold Sponsor

Imagine that you are a family law associate set to embark on your ﬁrst cross-examination of a business valuation expert. It can be a daunting task; you are going face-to-face with an expert. And while you have the Rules of Evidence at your disposal to control the witness, see, e.g., N.J.R.E. 611(c), the expert has years of education, training, and experience. Fear not, this article co-authored by Mat Nunn, Esq., Alyssa Engleberg, Esq., Judy Doyle, CPA (Withum) and Megan Sartor, CPA/ABV/CFF is intended to provide advice to the novice attorney who has not had experience with business valuations.

The ﬁrst piece of advice, and this pertains to cross-examination of any expert, is that you may never know the core “science” or area of expertise as well as the expert. But you can know enough to be dangerous—you should know more than enough to be very dangerous.

Next, business valuations are not rote, black-and-white tasks; some may even say they are “an art.” This is so because there exist areas that require subjective input and, in turn, opinions. Having said that, accountants hired to prepare business valuations are guided by the Statement on Standards for Valuation Services (SSVS 1) issued by the American Institute of Certiﬁed Public Accountants (AICPA).

You must also know that New Jersey is guided by the “fair value” standard discussed in Brown v. Brown, 348 N.J. Super. 466 (App. Div. 2002). Brown stemmed from a divorce that involved the husband’s minority interest in a family business (a ﬂorist) with his mother, who maintained the controlling interest. The trial court utilized, and the Appellate Division approved, a “fair value” approach as opposed to a “fair market value approach.” The fair value approach does not discount the value of the entity due to either: (1) lack of marketability (i.e., there is a small pool of potential buyers for a closely held ﬂorist); or (2) lack of control (i.e., a reduction based on the husband’s less than controlling interest in the ﬂorist). A reading of Brown will also steer you toward two other (non-family law) cases that will help your understanding or fair value, see Balsamides v. Protameen Chemicals, 160 N.J. 352 (1999), and Lawson Mardon Wheaton v. Smith, 160 N.J. 383 (1999), which collectively stand for the following: “Neither a marketability nor a minority discount should be applied absent extraordinary circumstances.” Brown, 348 N.J. Super. at 483 (emphasis added).

Against that backdrop, there are generally three approaches to value that are to be considered in each valuation engagement: the asset, income and market approaches.

Asset

This approach essentially replaces the historical cost of certain assets reported in the balance sheets with fair market value for those assets if readily ascertainable either from independent appraisals, stipulation by the parties, or through other estimation means. This approach is often referred to as the “ﬂoor value” and is used when the subject company has a signiﬁcant level of machinery and equipment (heavy construction companies) or are real estate holding entities. This approach can be important in determining a subject company’s value when a company has historically not generated enough income and cash ﬂow to allow for an expected return on assets of a potential investor.

Income

This approach is closest to “pure valuation theory,” which states that the value of an investment is equal to the present value of all future cash ﬂows. It provides an indication of value by either capitalizing the results historically achieved by the entity (capitalization of earnings/cash ﬂow) or by discounting the projected future earnings (discounted future returns), however deﬁned (e.g., net income, cash ﬂows, etc.). The income approach may be used when there exists a stable history and expectation of positive earnings or where there exists a projection of positive earnings for the year(s) subsequent to the date of valuation that are not indicated by historical results. In doing so, there should be sufficient and reliable historical information available to reasonable estimate expected normalized earnings or detailed and supported projections and forecasts prepared. This is the approach most frequently encountered in New Jersey family law cases.

Market

This approach provides an indication of value based upon historical transactions of comparable publicly traded or privately held businesses. It is not necessary that the companies be identical, but rather comparable. This approach is useful as it places all indications of value developed from the marketplace into the larger context of market realities. The resultant value is determined through the application of derived valuation multiples to the subject company. There are various transaction databases utilized in practice including BizComps, DealStats, and CapitalIQ. However, there may be insuﬃcient information available in these databases for each individual transaction.

A link to the full article can be found here.

Please do not hesitate to reach out to the forensic and valuation team at Withum with any questions relating to this article.

5 Estate Planning Priorities for Same-Sex Couples

Wed, 19 Jul 2023 19:08:31 GMT

By Wilmington Trust | AAML NJ Bronze Sponsor

While planning for same-sex couples takes center stage during Pride Month, it is so important for same-sex couples to focus on protecting their financial future year-round.

Read Sharon L. Klein’s article, Five Financial Planning Priorities for Same-Sex Couples (hermoney.com). recently published in HerMoney with her Top 5 Estate Planning Priorities for same-sex couples.

4 Optimizations New Jersey Family Law Firms can Optimize for Greater Profitability

AAML NJ Administrator — Tue, 30 May 2023 18:06:46 GMT

By LEAP Legal Software, AAML NJ Silver Sponsor

Law firm owners and senior partners are responsible for ensuring that their practices are running at the highest levels of efficiency to maximize profitability. It is no secret that consistent profits and cashflow are what allow law firms to continue to provide their clients with high-quality legal services. In the face of the legal skills shortage, there has never been a better time for New Jersey family law firms to assess their business and optimize their resources. This article covers the four easy changes New Jersey matrimonial attorneys can implement today to optimize for consistent cashflow while mitigating feeling the impacts of the legal skills shortage.

Focus on Billable Tasks by Leveraging Automation

According to a recent study, 43% of law firm fee earners reported spending more than 35% of their time working on non-billable tasks. These manual workflows cost law firms thousands of dollars every week in missed revenue. Additionally, it can cause staff members to become frustrated as they have to stay later to provide case updates, complete time sheets, and work with other staff members who were busy throughout the day. As a solution, New Jersey family law firms can implement legal automation software to digitize and streamline the manual tasks that hinder their staff from focusing on billable work during standard business hours. Instead of working longer hours to compensate for lost time, firm staff can complete their work faster, which also helps them take on more cases in the same amount of time to improve the firm’s overall revenue and financial health. Workflow automation that matrimonial attorneys should look for in a software solution includes:

Matter creation and management
Email and correspondence
Document creation and management
Time tracking
Billing and invoicing

Establish Flexible Work Options

Another major expense for New Jersey law firms is maintaining adequate office space. Rent, utilities, and resources can create high overhead costs that impact how a practice can reinvest the money they earn. A way to avoid overspending on office resources is by establishing hybrid and remote work options. As law firms spend less money each month to accommodate their staff in person, they add more cushion between their revenue and operating expenses.

Hybrid and remote work options present additional benefits to a law firm. 50% of legal hiring managers report that many legal professionals expect remote work options and actively seek job opportunities that offer the flexibility if their current role doesn’t fit their needs. This shift means that New Jersey family law firms can reduce their current operating costs by providing their staff with flexible work conditions so they can maintain their current people resources and not spend money on recruiting new top legal talent.

Develop New Revenue Streams

Another benefit to increasing flexibility around staff location is the opportunity to begin servicing new jurisdictions and areas of law that may not have been possible in the past. For example, a New Jersey family law firm that expands its recruitment efforts can bring in the top attorneys in other counties or even states to increase its reach. They can even begin to service new practice areas and take on more cases if attorneys are licensed and experienced outside of family law. These opportunities create new revenue streams without the added cost of bigger or additional office spaces and commuter benefits.

Of course, this cannot be achieved without the right legal software to provide all staff members with real-time case information to view and provide updates, collaborate with staff and clients, and time-tracking tools for accurate billing and invoicing. Cloud-based software offers the accessibility and security needed to seamlessly implement these revenue streams without increasing current resources. Improve Transparency with Staff Members Ultimately, the best thing a New Jersey family law firm can do is be transparent with its staff members to establish open dialogues. Senior attorneys and partners in the practice should have regular firm meetings and one-on-one check-ins with junior and support staff to discuss potential changes, develop a career plan, and set individual and group expectations to help mitigate staff uncertainty. By leveraging legal software to automate manual tasks, the firm’s senior members will have more time to dedicate to these check-ins and show their commitment to developing a transparent and supportive culture without asking them to make up this time by working after business hours.

Conclusion

It is best practice to review law firm operations to identify ways to reduce operational and overhead expenses while improving firm productivity. New Jersey family law firms that implement the right legal cloud software solution to eliminate inefficiencies, reduce spending, improve employee retention, and create new revenue streams to improve cash flow are setting themselves up for even greater success. The LEAP legal practice productivity solution is the only fully-integrated, cloud-based solution that provides New Jersey family law firms with everything they need to run a productive and profitable business from anywhere, at any time. See how LEAP can help optimize your family law firm’s operations today!

Can I Date Before My Divorce is Finalized?

AAML NJ Administrator — Tue, 30 May 2023 16:28:14 GMT

By Lynne Strober, Esq.

A common question that matrimonial attorneys get asked is whether our client can date before the divorce is final. Many times, by the time a client comes to us, they have lacked the physical or emotional connection with their partner for a long time. Sometimes, they have been ready to move on for quite some time. You can date before your divorce is final, but you do so at your own risk. It is best to follow some caveats:

1. Don’t cohabit, particularly in New Jersey. In New Jersey, cohabitation isn’t just living together. In fact, the law specifically allows a Court to find that a couple is cohabiting even when there isn’t one common household. The reason cohabitation should be avoided is that you may not receive alimony if you are cohabiting.

2. Be careful how your child or children learn about your dating life. Avoid posting on social media, leaving love notes, cards, or other trinkets around for your children to find. Delay introducing the children until after the divorce is final and only if your relationship is serious. Don’t discuss your dating life or new relationships with or in front of the children. This has caused a problem for more than one litigant in a custody case.

3. Continue to make sure your children, if you have any, are your top priority. Plan your dates when your children are with your spouse if possible.

4. You should pay your own way on your dates. While being taken out to dinner should not be an issue, if you and your new partner are traveling or going away for the weekend, you should each pay for yourself so that you cannot be accused of using marital funds for a third party or of being financially supported by a third party if you are seeking alimony from your spouse.

5. One of factors that a Court will assess to determine whether you are cohabiting and therefore, not going to receive alimony, is whether you and your new partner have a financial intertwinement. Therefore, you should not set up any joint accounts, regardless of whether it is a bank, investment, savings, credit card, or any other accounts.

6. Social media is both a blessing and a curse. It is a great way to keep in touch, share pictures with friends and family, network with colleagues and let people know about your accomplishments, but it also can be used against you. It is best to take a social media hiatus while you are getting divorced. However, if you do not want to completely shut down your social media, do not post about your dating life or new partner.

7. It is best not to have your new partner come to the house that you own with your spouse or that your children are living in until you have finalized your divorce. Additionally, a significant relationship can be viewed as cohabitation under certain circumstances, so you want to be careful about how you portray the relationship and what obligations, rights and responsibilities you and your new partner have to each other.

8. If you aren’t sure how to handle a dating question or situation, ask your attorney. It is not easy to go through a divorce. It is also not always easy to start dating again during or after a divorce, but it can still be fun if you make sure to do it right!

Are you in need of a divorce attorney? Visit our directory.

The Role of a Forensic Accountant in the Discovery Process

AAML NJ Administrator — Wed, 24 May 2023 17:57:14 GMT

By Linda Cooke | Withum, AAML NJ Gold Sponsor

Discovery can be one of the most difficult, costly and time-consuming parts of marital litigation. For the purposes of this article, discovery is defined as gathering relevant financial documents, deposing fact witnesses including the parties, and the production of an expert report. The forensic accountants’ involvement in discovery can be as extensive or de minimis as required by counsel, but here is a look at what that role can include.

The accountant’s first step in the discovery process should be to obtain an understanding of the case, and the documents that are needed to complete the analyses required to negotiate or try the case. The process begins with an introductory conversation with counsel and an interview with the client. Next, the accountant would prepare an initial document request. Given the tenor of the case, the accountant may need to make an extensive request of all documents that could foreseeably be needed. However, ideally, the most cost-effective way to initiate discovery is to request basic documentation, such as tax returns, general ledgers, bank statements, and Case Information Statements. More extensive document requests can be presented as the need arises.

Under the proposed process, discovery is an iterative process. As the analysis of the basic records continues, the accountant determines what additional documents could be, or should be, available to support their opinion, or what documents or additional information is required to form a clear financial picture. For example, a review of the bank statements may reveal funds transferred to accounts that had not been disclosed, and/or deposits from third parties that require further explanation. Another example would be that the review of tax returns could provide information on assets owned or sold by the parties.

Therefore, as additional information is uncovered, the forensic accountant needs to issue follow-up discovery demands or conduct interviews of relevant individuals. If the information is not attainable through one of the parties, third parties may need to be subpoenaed or deposed to obtain the needed information. It is the accountant’s role to help counsel identify what these additional documents and discovery should include.

The accountant is to gather the necessary documents to support their work product and to provide the attorney with the information needed to mediate or litigate the matter. In this regard, the discovery process is vital in the outcome and unique in each matter; therefore, it is important that the forensic accountant stay attuned to the cost-benefit of discovery, maintain contact with counsel and the client, and stay apprised of all financial issues in the litigation.

Primer on Early-Stage Companies and Valuation Considerations

AAML NJ Administrator — Fri, 12 May 2023 14:04:25 GMT

By Christian Sivel | Withum, AAML NJ Gold Sponsor

Early-stage companies can often be more challenging to value than an established business. This is due to several different variables most namely stage of enterprise development, types of equity issued and methodology used. Below we will outline a number of considerations, what to expect during the valuation of an early-stage company and an overview of the Option Pricing Model (“OPM”) commonly used for early-stage company valuations.

Stages of Enterprise Development:

The stage of operational development of an enterprise is an important determinant of the value of the enterprise and an indicator for which approach or approaches for valuing the enterprise are generally more appropriate. The AICPA defines six stages of enterprise development as follows:

Stage 1 – Enterprise has no product revenue to date and limited expense history and, typically, an incomplete management team with an idea, plan, and possibly some initial product development. Typically, seed capital or first-round financing is provided during this stage and securities issued are more commonly in the form of preferred stock. The Backsolve Method is the most reliable indicator of value of the enterprise at stage 1, if relevant and reliable transactions have occurred in the enterprise’s equity securities.

Stage 2 – Enterprise has no product revenue but substantive expense history, because product development is under way and business challenges are thought to be understood. A second or third round of financing typically occurs during this stage. The typical securities issued to those investors are in the form of preferred stock. The Income Approach (e.g., DCF method) will likely be more relevant than in stage 1; however, the enterprise may still have significant difficulty in forecasting cash flows. As such, valuation specialists may choose to use the income approach during stage 2 as a secondary approach.

Stage 3 – Enterprise has made significant progress in product development; key development milestones have been met (for example, hiring of a management team); and development is near completion (for example, alpha and beta testing), but generally there is no product revenue. The typical securities issued to those investors are in the form of preferred stock. The approaches during stage 3 are most commonly the income approach, using a DCF, or the market approach, using the guideline public company or guideline precedent transaction methods. However, as the profits for the enterprise may still be years in the future, these methods are most often times not exclusively relied upon; as multiple rounds of institutional financing may have occurred during these stages, the Backsolve Method may provide a reliable indication of value.

Stage 4 – Enterprise has met additional key development milestones (for example, first customer orders or first revenue shipments) and has some product revenue, but it is still operating at a loss. Typically, mezzanine rounds of financing occur during this stage. Also, it is frequently in this stage that discussions would start with investment banks for an initial public offering (IPO). Both the income and market approaches are typically appropriate for stage 4. The reliability of a financial forecast would tend to be higher in stage 4 than in stage 3, because there is more information available on which to base the forecast, and, therefore, the discount rate for a DCF method under the Income Approach would tend to be lower in stage 4 than in stage 3, reflecting the lower degree of risk. Additionally, given the company is now more established, there may be identifiable public companies that can be considered comparable in relation to operations but adjusted for relative size, expected growth, and profitability.

Stage 5 – Enterprise has product revenue and has recently achieved breakthrough measures of financial success such as operating profitability or breakeven or positive cash flows. A liquidity event of some sort, such as an IPO or a sale of the enterprise, could occur in this stage. The typical securities issued are all common stock, with any outstanding preferred converting to common upon an IPO (and perhaps also upon other liquidity events). Income and market approaches would generally be appropriate as in stage 4, and the discount rate for a DCF method under the Income Approach would tend to be lower in stage 5 than in stage 4. Under a Market Approach, because the enterprise may be closer to a liquidity event in stage 5 than in stage 4, adjustments to the valuation based on comparisons with publicly traded startup enterprises would tend to be lower in stage 5.

Stage 6 – Enterprise has an established financial history of profitable operations or generation of positive cash flows. Some enterprises may remain private for a substantial period in this stage. An IPO could also occur during this stage. Both the income and market approaches would be appropriate for an enterprise in this stage. Because the enterprise has an established financial history, the reliability of forecasted results would tend to be higher than in an earlier stage, and, therefore, the discount rate for a DCF method under the Income Approach would tend to be lower than in an earlier stage.

Regardless of the stage of development, if a- recent arms-length transaction has occurred, the Backsolve Method may be used to determine the equity value of the Company. The Backsolve Method is an application of the OPM which allows for the allocation of a total equity value where the most reliable total equity value is based on observed subject company equity participating securities transactions. It is based on pricing from the Company’s latest transaction, waterfall allocation schedule and the Black Scholes option pricing formula. The Backsolve Method helps to calculate and validate the Fair Value of the granted options and securities on a post-deal basis.

The sum of the indicative values of all the participating securities provides a total value. These amounts are then translated, through contractual terms, to determine the Fair Value. In calculating the indicative value conclusion, the results of the redemption and liquidation scenarios are considered, and Option Pricing Model is used to calculate the Fair Value Conclusion. If the appraiser knows the capital structure to the extent that in the event of a liquidation the proceeds from such liquidation can be mapped to the capital structure, then a reliable total equity value can be estimated if one class of equity participating security has been exchanged in an arm’s-length transaction. In other words, we know the value of the recently purchased preferred stock. Knowing the preferences obtained in the transaction by the preferred shareholders and the prior preferred stock rounds, we can then estimate the value of the common stock which does not contain these preferences. This method has limitations, such as the need to estimate certain exit events and assumptions regarding the unchanging nature of dividends or the capital structure over the time period from the valuation date to the estimate exit date.

Types of Equity Issued:

As mentioned above, the type of equity issued will be closely tied to the company’s stage of enterprise development. During the earlier stages of enterprise development, preferred equity is most commonly issued to attract investors and account for the inherent risks associated with early-stage companies. As the company continues to develop and stabilize, equity issuance begins to move down the capital structure. The most common types of equity issued from early-stage companies, in order of typical preference, are as follows:

Convertible Notes: The most common types of debt issued to investors in early-stage companies are convertible notes. These securities are viewed as short-term debt instruments that will likely convert into equity in the issuing company. They are typically repaid in equity as opposed to the traditional interest + principal payments on standard debt. These securities may automatically convert into equity once a specific milestone has been reached, usually when the company is officially valued for later investments.

Preferred Stock: Preferred stock is typically issued during enterprise stages 1 through 4. These securities are a class of stock that possess special rights and privileges that make them more attractive in comparison to common stock. They are often more protected from dilution and have the ability to influence company decisions. Additionally, these securities take priority above common stock in the capital structure under a liquidation scenario. These securities are most often those associated with a recent arms-length transaction that are utilized in the Backsolve Method to determine common value.

Common Stock: Common stock is the most common form of company shares that are issued. These securities are typically issued when the company is in the later stages of enterprise development. These shares can be granted voting rights, which can be limited, and often heave lesser rights than preferred shareholder. Common stock is typically last in the capital stack.

Stock Options: Stock options are commonly used as a valuable equity compensation incentive for hiring and retaining top talent. When issued, these securities give the employee the right, but not obligation, to purchase company shares at the predetermined price (i.e. the strike price).These securities are often strategically issued to assist in saving compensation expense for the company.

The Option Pricing Model:

The Option Pricing Model is a popular and commonly used model to allocate equity value to securities in complex capital structures. Often times early-stage companies will have complex capital structures with preferred and common stock. Because of this, the analyst needs to complete a two-step process: value the entity’s equity value and allocate the value between the classes of stock considering all rights and preferences of each class.

The OPM helps to allocate this value bytreating each class of security as a call option on the total equity value of the company. To accomplish this, the OPM typically employs the Black-Scholes model to value the call options. The OPM method uses five main inputs to allocate equity to various equity-participating securities: FMV of an equity security, annual expected firm dividends, time to next round of financing or sale of the company, overall company volatility indication, and a risk-free rate.

Equity Value: The equity value of the company should be determined to allocate this value among the capitalization table. As referenced above, the Backsolve Method may serve as a method of determining equity value based on a recent arms-length transaction.

Annual Dividends: Annual dividend payments are required to consider due to these payments impacting how options for the stock are priced

Term: Due to the preferred and common equity being treated as call options, the timing of an exit or next round of financing is important to understand. This term helps calculate the d1 portion of the Black-Scholes model and influences the discount for lack of marketability (“DLOM”)

Volatility: Comparable company equity volatility is important to understand in order to determine the d2 portion of the Black-Scholes model

Risk-Free Rate: The risk-free rate that corresponds to the Term is most often used as an input to the Black-Scholes model in order to derive the d1 portion of the model

The exercise prices of each “call option” are set equal to the breakpoints, above which different combinations of equity classes participate in the liquidation equity value of the company. The model consists of a series of closed form option models.

Each breakpoint’s option model output is then subtracted from the prior breakpoint’s option model output to isolate the amount of value available to the equity participating securities between those two total equity values. That value is then divided pro rata among the relevant equity participating securities. Lastly, for each equity participating security, each of its pro rata allocated values is summed together. Appropriate discount and premiums if applicable are then applied to conclude on a value for that class of equity participating security.

Conclusion:

Although the process of valuing an early-stage company may seem complicated at first, an understanding of the stage of enterprise development, capital structure, outstanding equity rights and preferences, and relationship with a trusted advisor will make the process simpler.

Custody, Parenting Time, and Issues Involving Children with Autism

Alexandra Loukeris — Tue, 02 May 2023 12:23:52 GMT

By Lawrence R. Jones and Joni Jones |

April is World #Autism Awareness and Acceptance Month. As part of OurFamilyWizard's support and recognition of April as World Autism Awareness Month, the Hon. Lawrence R. Jones (Ret.) and Joni Jones share invaluable #advice and #insights on co-parenting a child with autism.

Custody, Parenting Time, and Issues Involving Children with Autism
By: Lawrence R. Jones and Joni Jones
On March 23, 2023, the U.S. Government’s Center of Disease Control and Prevention (CDC) issued a new report with a finding that 1 in every 36 eight-year-old children in the United States is diagnosed with autism spectrum disorder (ASD).[1] This analysis underscores the reality that in family practice, there is a growing number of circumstances where parties who are separating or divorcing may have a child with autism.

Read the full post here: https://www.ourfamilywizard.com/knowledge-center/regional-resources/united-states/new-jersey/custody-parenting-time-and-issues-children-autism

4 Tips to Optimize Your New Jersey Family Law Firm for Economic Uncertainty

AAML NJ Administrator — Tue, 25 Apr 2023 18:15:45 GMT

By LEAP Legal Software, AAML NJ Silver Sponsor

The present economic uncertainty means many businesses are finding ways to tighten their resources to minimize and avoid any negative impacts of potential economic downturn. The legal industry is no different. As many New Jersey family law firms do not have the same resources as large corporations, they need to find new ways to be creative in minimizing spend, reducing overhead, and optimizing the resources they have to protect their business from any economic challenges. While it may seem too early to take action in such uncertainty, New Jersey law firm owners and partners can start taking action to prepare for whatever the future has in store.

Automate Workflows to Increase Billing

Manual operations lead to New Jersey family law firms missing out on thousands of dollars in revenue every single week. Alarmingly, a recent study found that 43% of law firm fee earners spend more than 35% of their time working on non-billable tasks. If fee earners continue to focus so much of their time on redundant, manual work, law firms will struggle to maintain profitable and successful operations during economic downturn. Manual workflows that often take up the time of New Jersey matrimonial attorneys include case updates, time tracking, and collaboration.

Legal automation supported by the right legal software can digitize law firm tasks that take up countless hours and allows them to focus on billable work during standard business hours instead of working longer hours to compensate for this lost time. Additionally, as New Jersey attorneys work faster, they can take on more cases in the same amount of time to create additional revenue that supports the law firm’s overall financial health. Workflow automation to look for in a software solution include:

Matter creation and management
Email and correspondence
Document creation and management
Time tracking
Billing and invoicing

Establish Hybrid and Remote Work Options

Maintaining an adequate office space with all the resources for staff members and enough room for client meetings is a considerable expense for New Jersey law firms. The cost to rent a space, pay utilities, and provide adequate in-office facilities creates high overhead costs that impact where law firms could invest the revenue they earn. Therefore, hybrid and remote work options present an easy way for New Jersey family law firms to combat this.

When law firms obtain smaller office space, they reduce monthly spending to cushion their operation expenses. Additionally, they can reinvest the money they save into their marketing efforts to establish new business opportunities that ultimately further protect the firm from financial struggles.

There are additional benefits to implementing hybrid and remote work options. Over the past several years, many New Jersey legal professionals already expect to have remote work options and actively seek job opportunities that offer flexibility. This shift means that New Jersey family law firms can reduce their operating costs and help ensure they maintain their current people resources and improve staff retention.

Develop New Revenue Streams

As law firms increase their staff’s flexibility, they also open up new business opportunities in jurisdictions and areas of law they previously could not service. For example, when New Jersey family law firms expand their recruitment efforts, they can bring on the top lawyers across several jurisdictions and practice specialties that instantly create additional revenue streams without worrying about needing a bigger office space and incurring additional expenses for commuter benefits.

This can only be achieved with the right legal software. All staff members need access to real-time case information to view and provide updates, collaborate internally and externally, and track the time spent on the work they’ve done for accurate billing and invoicing, regardless of if that work got done in an office, at court, or on the go. Cloud-based software provides New Jersey matrimonial attorneys the accessibility and security needed to establish additional revenue streams without increasing their current resources.

Create a Culture of Transparency

Ultimately, the best thing New Jersey family law firms can do for their staff members is to have open dialogue and transparency. The prospect of financial uncertainty or any cultural shifts can be daunting for any employee, so senior attorneys and partners in the practice need to provide adequate support for the junior and support staff under them. Regular firm meetings and one-on-one check-ins where staff can discuss concerns, potential changes, develop a career plan, and set individual and group expectations help mitigate staff uncertainty.

Senior practice members can have more time to dedicate to these check-ins when software automates the manual administrative tasks that previously consumed their days. In addition, as they continue to work with all staff members, it showcases the firm’s commitment to developing a transparent and supportive culture without asking senior attorneys to make up this time by working after business hours.

Conclusion

While there is still debate over how far off economic slowdown can be, there is never a bad time to review law firm operations and find ways to improve operational and overhead expenses and efficiency. New Jersey family law firms that attempt to make these shifts while maintaining manual processes will find it more difficult than firms that have moved their cloud operations to eliminate inefficiencies, reduce spending, and establish new revenue streams for enhanced cash flow. The LEAP legal practice productivity solution is the only fully-integrated, cloud-based solution that provides New Jersey matrimonial attorneys with everything they need to run a productive and profitable business from anywhere, at any time. Schedule a demo today to see how LEAP can help optimize your firm’s operations.

What to Expect When Going to Family Court

AAML NJ Administrator — Wed, 19 Apr 2023 18:19:18 GMT

By Christine Fitzgerald Esq. | Seiden Family Law

Family Court, litigation, judges, attorneys, and judgments. These words can be intimidating for someone who has never been through the court system, and even for some who have. As a layperson, you are not expected to know what to expect when going to Family Court in New Jersey. That's why it's important to hire an experienced family law attorney who can guide you through the process and take away some of the mystery.

If you're a litigant, here's what you can expect when going to court:

Waiting

New Jersey is facing an unprecedented and catastrophic judicial vacancy crisis. As a result, litigants and attorneys may wait to see the judge long past the original scheduled time, regardless of whether the proceedings are virtual or in person.

The Speech

Judges often suggest that litigants consider resolving their matter to save time, money, and stress, and to spare their children lengthy litigation. This usually involves a statement about parents being able to be in the same photo at the child’s graduation, wedding, baby shower, etc.

Settlement

Your attorneys may have time to talk settlement while you wait for the Judge. The more issues you settle, the easier it becomes to settle the bigger, tougher issues.

In Chambers Conference: Judges may conference with the attorneys in chambers. This can be insightful into how the Judge is thinking about your case before you are on the record.

Being Sworn In

When the Judge calls your case, you and your attorney will sit at counsel table and be administered the oath. You should expect to be sworn to tell the truth, but most of the questions will be directed at your attorney.

Decisions

You may leave court without knowing what the Judge is going to Order or what the decision will be.

Dirty Laundry

You may be appearing and having your case heard in front of a room full of people, and whatever issues are being addressed will be for public consumption unless it is a confidential matter.

Mystery

Even when your attorney knows the Judge well, there is no way to guarantee what a Judge will decide on any given day. The only way to eliminate the unknown is to settle your case and take ownership of the decisions being made.

Navigating a family law matter is stressful and confusing at times, but an experienced family law attorney should provide you with the tools necessary to have some expectations of what might happen in your case and options for resolutions.

4 Ways New Jersey Family Law Firms Can Attract & Retain Staff Members

AAML NJ Administrator — Wed, 12 Apr 2023 18:26:15 GMT

By LEAP Legal Software | AAML NJ Silver Sponsor

New Jersey family law firms face an unprecedented challenge with the current legal skills shortage. 60% of surveyed law firms report already feeling a strain on their operations due to a lack of skilled workers, according to TheLawyer.com. One of the driving factors in this skills shortage is a competitive hiring market that empowers skilled employees to identify the firm that will offer them the most flexibility and the tools they need to be successful. While it may feel daunting for partners and legal hiring managers to find ways to remain competitive in retaining and hiring skilled legal staff, the good news is that the right legal software can help them complete four simple tasks to stay ahead of their competition.

1. Automate “On-Location” Manual Processes

Nearly every industry has seen the notion of 50-hour, in-office workweeks due to manual processes become antiquated, and the legal industry is no exception. Legal professionals have requests and responses that come in outside of traditional office hours because their clients are often working at that time. That previously meant that legal secretaries and attorneys had to come in early or stay late in the office to create new matters, schedule meetings, or respond with updates to ensure that clients did not experience delays. However, legal technology can now automate these processes, giving staff members back their personal time without jeopardizing client experience.

One example of this is new matter creation. Instead of manually setting up a manila or desktop folder, the right legal software offers pre-built matter types for the most common cases a firm handles. This feature means that client and case-related data only needs to be entered once and then can be auto-populated across relevant documents and forms, eliminating the time spent on manually completing documents for each case. All staff members working on the case can then also access the data from anywhere to contact clients, set up meetings, request additional information, and provide updates. In addition, as staff free up time previously spent on manual case management, they can focus more attention on billable client work during the day to get them home on time and establish a healthy work-life balance.

2. Implement Flexible Work Options

In 2022, nearly 50% of legal hiring managers reported that a strong candidate would reject a job offer if they didn’t have remote work opportunities. If firms can’t offer their staff members the option of where and when it is convenient for them, they could lose top talent to more modern firms solely because they need the flexibility to manage their professional and personal obligations.

Legal cloud software can eliminate this challenge altogether. When New Jersey legal professionals can access software to see all the details, updates, documents, and correspondence related to the cases they’re working on from anywhere, they can effectively work from anywhere, at any time, whether in the office, at home, in between school drop-offs, in between doctors appointments, and even from a completely different geographical location! Remote work options also benefit New Jersey family law firms by reducing overhead as they reduce the amount of office space, desks, and utilities required to accommodate their staff in person.

3. Train and Mentor Junior Attorneys

New Jersey matrimonial attorneys at the early stages of their careers face a Catch-22. Although technology can automate many of the tedious tasks they previously handled, legal automation tools can also allow them to grow their technical skills and develop career plans that align with their professional goals. Partners at New Jersey family law firms must work with their junior staff to understand how they want to grow and develop a career plan with key milestones to achieve those outcomes. In the past, senior attorneys did not have the time to dedicate to mentoring and training new staff members. However, legal software can eliminate several hours of manual work a week to allow senior attorneys to serve as mentors to junior attorneys.

For example, as senior lawyers spend more time servicing clients through billable work, they can include junior lawyers through virtual meetings or shadowing so they can begin to develop the business acumen, emotional intelligence, and project management skills needed to advance their careers and move into client-facing roles. Training opportunities allow law firms to support their staff’s career development and demonstrate their investment in retaining their employees by creating an environment enabling them to learn and advance from within.

4. Expand Recruitment Efforts

The last way law firms can mitigate employment gaps is by expanding their recruitment efforts beyond their local New Jersey communities. While New Jersey law firms once had the advantage of being in a concentrated hub for top legal talent at all career stages, many legal professionals have already taken advantage of the increased presence of legal software to work remotely. Historically, “main street” law firms could not recruit or retain staff outside their communities, but legal software has now made these possibilities a reality.

Cloud-based legal software enables partners to reconnect with senior attorneys that retired or moved away to serve as senior team members and provide consulting services by providing them access to case-related information from anywhere, on any device. Additionally, as New Jersey family law firms onboard staff members in different locations, they can generate new revenue by servicing jurisdictions and areas of law that were previously outside of their capabilities.

Conclusion

The competition for highly skilled legal staff is more intense than ever, and the legal skills shortage will only continue to pose challenges for law firms that cannot offer the flexibility, automation, and advancement opportunities that New Jersey legal professionals need when they consider staying with a practice or joining a more modern law firm. As firm owners and partners consider how they create a modern work environment, it is time they consider implementing cloud-based legal software to automate the mundane, in-person tasks that force staff members to work longer, limit their flexibility, and impact staff retention and hiring.

Download LEAP's whitepaper, How to Overcome the Skills Shortage, for an in-depth look at identifying these gaps in your New Jersey law firm and mitigating the impacts with the right legal software solution.

Week-on, Week-off Custody Schedules: Alternating Weeks in Your Parenting Plan

Mon, 03 Apr 2023 17:32:44 GMT

By Elle Barr, Attorney, GAL, Judicial Education Coordinator | Our Family Wizard, AAML NJ Bronze Sponsor

For co-parents with 50/50 physical custody, alternating weeks is the simplest parenting schedule available. When following this arrangement, children spend one week with one parent and then one week with the other. This can simplify the scheduling of changeovers immensely.

As with all parenting schedules, however, it's not without its drawbacks. To help you decide whether alternating weeks is a good fit for your family, here are some of the major benefits and disadvantages of this parenting schedule.

What Is a 7/7 Custody Schedule?

Under a 7/7 parenting schedule, co-parents share physical custody equally in seven-day intervals. Children will spend one week with one parent and the next week with the other. This streamlined schedule minimizes transitions but also increases time apart.

More co-parents embrace joint parenting time, in which they split joint physical custody into different proportions and intervals. Various forms of the 50/50 custody schedule, where co-parents share custody equally, continue to grow in popularity.

The benefits of equal time with each co-parent can be significant. Many child development and legal experts agree that frequent, meaningful contact with both parents can positively affect children for the rest of their lives. However, even for agreeable co-parents with a healthy, cooperative relationship, any custody schedule demands effective communication and a willingness to compromise. The 7/7, or alternating week schedule, provides the easiest way to split time 50/50.

You’ll often see the week-on/week-off or alternating weeks schedule rotation referred to as a “custody schedule” or a “parenting schedule.”

In general, the term “custody” can refer to either the legal or physical custody of a child or children. Physical custody refers to where children live, and legal custody explains the power of each parent to make major decisions for their children.

Today, many experts use terms like “parenting schedule” or “parenting time arrangement” when speaking about where children live in place of “custody schedule.” These new terms better represent a relationship and the parent’s responsibilities for their children. This article will use these terms interchangeably.

Key Takeaways

The 7/7 or alternating weeks schedule splits parenting time equally between co-parents.
The schedule features only one weekly exchange day, but children and co-parents go seven days between visits.
Some co-parents add in a mid-week visitation to reduce time spent apart.
Many experts recommend against the 7/7 plan for younger children who need frequent time with both parents to form proper attachments.

Read the full blog post HERE.

Alimony in New Jersey

Mon, 27 Mar 2023 20:59:21 GMT

By Rebecca Kuderka | Withum, AAML NJ Gold Sponsor

When litigating a divorce case, one important item to consider is alimony. There is no set formula that can be used to calculate alimony and there are various types of alimony. The purpose of alimony is to allow both parties to maintain their lifestyle after the divorce. To understand the full alimony picture, it is important to be aware of the different types of alimony and the factors that are considered when determining alimony.

Types of Alimony

In the time between the filing of the complaint and the judgment of divorce, the Court can order Pendente lite support, also known as temporary support. This support can be agreed upon by the parties or ordered by the court if necessary. This support does not continue after the divorce is finalized but may be replaced by the other types of alimony.

After the final judgment of divorce, the court can order, or the parties can agree on four types of alimony: Open Duration, Limited Duration, Rehabilitation, and Reimbursement.

Similar to the traditional Permanent Alimony, Open Duration Alimony has no set time limit. Normally the payments continue until either there is a change in circumstances, i.e., the supporting party has a loss in income, or there is a termination of the alimony payments such as when the supported spouse remarries. Open Duration alimony will usually be considered for individuals married for 20 years or longer.

The second category, Limited Duration Alimony is typically considered for those married less than 20 years. With this type of alimony, the payments will not typically exceed the length of the marriage, unless there are exceptional circumstances such as the level of a former spouse’s financial dependence or the poor health of the dependent spouse.

Despite the name that seems health-related, the third category, Rehabilitation Alimony is considered when a dependent spouse is completing additional education or training needed to re-enter the workforce. This type of alimony is typically a short-term obligation and requires a detailed rehabilitation plan which should detail the requirements for the dependent spouse to complete the education/ training needed to achieve financial independence.

Finally, there is Reimbursement Alimony. This form of alimony is designed to re-pay an individual who made financial contributions to the education or career development of their spouse. The reimbursement alimony could include the payments that went towards tuition, cost of living (for the student spouse), and/or other costs to obtain the degree or professional training.

Factors Considered

There is no set formula to determine the amount of alimony payments; however, the New Jersey Statute, NJSA 34 N.J.S.2A:34-23, sets forth factors that are considered when making this determination.

The actual need and ability of the parties to pay.
The length of the marriage or civil partnership.
The age of each party, as well as their health, both emotional and physical.
The standard of living the parties established during their marriage, as well as the ability of each party to financially achieve a reasonably similar living standard.
The earning capacity of each party, including their level of education, training, occupational skills and overall employability in the current job market.
The length of time the party requesting support has been out of the workforce.
A parties’ parental responsibilities.
How long and how much it will cost for the party asking for the support to complete the education or training that will allow them to secure employment, whether such training is available, and the prospect of future attainment of income.
The contributions of each party during the relationship. This includes both financial and non-financial, such as raising children and forgoing a career to support the other party’s aspirations.
The division of marital property.
Whether investment income can be derived from any assets held by each party.
The tax ramifications to the payor of any alimony awarded.
The nature, amount, and length of pendente lite support paid, if any; and
Any other factors which the court may deem relevant.

Negotiations

It is best to be realistic when negotiating alimony. The best way to do this is to start with an accurate understanding of the parties’ finances. Be sure to identify all sources of income, including salaries, dividends, bonuses, business income, etc. If you are unsure that all income is reported, consider retaining a forensic accountant to investigate the spouse’s income. This will enable you to determine their ability to pay. Finally, but equally as important, document your client’s expenses. This will allow you to establish the financial need for alimony. This financial need along with the ability to pay will ultimately be the basis of your negotiations to get your client the alimony he or she needs to maintain their lifestyle after the divorce.

5 Steps to Financial Protection Post Divorce

Tue, 21 Mar 2023 18:38:55 GMT

By Jonathan Blinken | Strategies For Wealth, AAML NJ Bronze Sponsor

Life after divorce can be liberating – but it can also be scary. And for couples who divorce and still need to raise children together, there is so much that may be out of your sole control for a long time. What you can control, however, is your personal financial health after divorce. Divorce can be financially devastating, often leaving people with merely half of what they’ve saved over their lives, and in many cases, forced to start over. Take heart in knowing that with knowledge and time, you can rebuild your wealth, if you are proactive and savvy. Below are 5 basic yet critically important steps you can take to get your finances in order after your divorce.

1. Take Inventory

You will not know what you need to do if you do not first know where you are. List out all your assets and your debts, as well as your monthly incomings and outgoings. Note who your biggest creditors are and make a list of people who may owe you money. There are plenty of templates online to help you organize, and it is helpful to keep a small notebook or binder with bank statements, monthly bills, and correspondence with creditors so all your financial information is one place. Finally, check your credit score. You are entitled to a free annual check from various companies. Always use a reliable source that uses the FICO system. Monitoring your credit score can impact your future ability to invest and take out loans. Keep your scores in your binder.

2. Make a Budget

Now that you've gotten everything organized and you can see a snapshot of your financial health, make a budget. It is okay if you realize right after the divorce that your monthly expenses exceed your income. Do not beat yourself up about it – take action instead. Take a critical look at where you can cut back. Eat at home more often. Take up jogging outdoors or work out from home using YouTube videos instead of paying for a gym membership. If any of your contracts with utilities are about to expire, shop around for the best deal. See if you can switch car insurers. If you're having a hard time figuring out where you can save, then get help from a financial planner to guide you. Once you've got a good idea of your budget, build in small, achievable goals. It will help you to save and work towards a goal, which will build your confidence when you've achieved it. Things, like paying off a credit card, or saving up for a short trip with your best friend, are all great things to focus on when rebuilding your finances.

3. Get Professional Advice

Of course, getting a financial planner might be a key step for you to take. But on top of that information, get advice wherever else you can. Seek out tax experts. Speak to the HR or pension source at your company to examine your retirement options. Take this information to a third party retirement expert who can give you objective advice. Consider hiring a company to invest in mutual funds on your behalf. The more support you have, the better and more confident you’ll feel – but this advice comes with a caveat. At the end of the day, it is YOUR money. If the experts you have hired do not take the time to speak with you, or explain what they are doing with your money, then move on. There are hundreds of companies that offer financial services. Find someone you trust.

4. Protect

Look into getting adequate life insurance, if you do not already have it. If you can afford it, whole life insurance policies are ideal; however, getting term life insurance is still a good option if your budget does not allow for a whole life policy. If you do have life insurance, then make sure you change the beneficiary if your spouse was previously listed as beneficiary, unless language in your divorce order prevents you from doing so.

Umbrella insurance is another good option – it is basically extra liability insurance and will cover any claims that exceed the limits of your homeowner's and auto insurance policies. This will kick in if your underlying policies are exhausted. Disability insurance is something else you should get, particularly because you will be relying solely on your own paycheck for the time being. Talk to your boss to see if the company offers disability insurance for a low price that can be deducted from your paycheck automatically each pay period.

Build up a good savings cushion for emergencies- most experts advise saving up to 6 months of living expenses in cash. Start with twenty percent of your earnings. This might sound like a lot, but remember it will only be for a short period of time. Finally, check to see if important legal documents, such as; your Will, Health Care Proxy or Durable Power of Attorney need to be amended. If, in your Will you left anything to your spouse, make sure you consult an attorney specializing in Wills to help you change this to someone else you trust, or perhaps draft an entirely new Will. If you did not have any of these documents, now is a good time to get all your paperwork in order, particularly if you have children.

5. Invest

Interpret this broadly. You can invest in yourself. Look into earning new qualifications or a higher education to build higher earning power through the years. Invest in the stock market. This is certainly one of the quickest ways to build your fortune, but it is not without risk. Take a course on basic advice, or hire an expert to guide you (or invest on your behalf). The takeaway here is, once you have the ability to do so, invest, period. Perhaps you received some liquidity from the divorce. Look into buying a property to rent out for a few years and build up a steady side income. Understand that with investment always comes risk. When in doubt, go back to step 3 and get as much advice as you can before you put your money into an investment.

Be realistic every step of the way. Understand that rebuilding your finances after a divorce takes time. Don’t invest in anything too risky. Remember that if it seems too good to be true, it probably is. A financial planner can help you come up with realistic goals and craft a realistic budget if you feel overwhelmed. And finally, take your financial health seriously, much like your own health. Monitor it regularly, and go see a professional for an annual ‘check-up.’

For trusted, professional advice on any of these steps after a divorce, contact Strategies for Wealth at 212-249-9200.

4 Signs it’s Time for Your New Jersey Family Law Firm to Switch to a Legal Practice Productivity Solution

Thu, 16 Mar 2023 18:20:03 GMT

By LEAP US, AAML NJ Silver Sponsor

Over the past year alone, we have seen numerous cases where outdated software created numerous complications that cost valuable time and resources that can’t afford to be lost. From the Southwest Airlines shutdowns to the California State Bar Association data breach, it has never been more important to reassess your law firm’s tech stack and identify any red flags that could impact your firm. This article will review the four signs New Jersey family law firms should look for that indicate it’s time to move to a legal practice productivity solution.

1. On-premises Hardware

Between court appearances and client meetings, New Jersey matrimonial attorneys complete hundreds of hours of work outside the office. If a firm uses a software solution that requires users to be in the office, this immediately delays updates, causes collaboration gaps, and missed billable hours. Additionally, on-premises hardware adds extra expenses, including dedicated IT employees or consultants, faulty component and hardware replacement, electricity and utility bills, and ongoing updates. These challenges mean that law firms cannot establish efficient, profitable, and scalable operations, limiting their staff’s flexibility.

Outside of that, on-premises hardware leaves firms vulnerable to multiple security threats. In 2021 alone, 25% of law firms reported that their firms experienced a data breach. The average practice cannot dedicate resources just for security, meaning client data can be compromised in break-ins, hacks, and natural disasters. This compromises a firm’s ability to continue working if a major event leaves them vulnerable to malpractice risks, which can lead to potential disbarment.

2. Limited Features & Integrations

Another red flag is if the software does not offer a comprehensive, all-in-one solution. When technology only caters to one business function, it creates a siloed tech stack that becomes unmanageable and creates more challenges than if it operated manually. A New Jersey family law firm should be able to communicate seamlessly to eliminate gaps in transparency, next steps, and collaboration with staff members, clients, and third parties. These gaps impact how quickly work can get done, data integrity, and employee and client satisfaction.

Outside of the software’s native features, integrations are essential for successful software implementation. Integrations with leading legal and business solutions specializing in specific business needs support the software’s foundational features and simplify the implementation without disrupting everyday processes. If critical integrations (for example, LawConnect, LawToolBox, and Microsoft 365, to name a few) are unavailable, it causes law firms to invest in numerous software solutions that create an overwhelming tech stack and leads to data gaps and errors due to double data entry and clerical errors.

3. Limited Paid Support

A third red flag is if the provider requires them to pay for ongoing support post-implementation without providing comprehensive support tools. Particularly in the initial training phase, New Jersey matrimonial attorneys must have access to the training resources that will give them the foundation for success and are accessible in a way that works best for their learning style and schedule. Users should have access to a dedicated success manager, online live chat, on-demand videos, and how-to articles without breaking the bank. This support should also not be limited to user experience and should eliminate the need for manual, time-consuming, and expensive software updates and backups.

Additionally, the support should remain easily accessible and affordable throughout a law firm’s entire interaction with a software provider. From new feature releases, newly onboarded staff, and existing users looking for a refresher, ongoing support is essential to ensure that the software is used effectively to establish streamlined processes that eliminate the challenges that led to the software investment in the first place.

4. Complex Transition Process

Last but certainly not least is reviewing the transition process. A seamless transition is the key to a successful software transition or installation. If the transition process takes up a ton of critical time, requires extensive downtime, and creates more manual work, it will make it even more difficult for New Jersey matrimonial attorneys and their support staff to start using a new solution. If the implementation requires months of disrupted work, manual data transitions, and countless hours dedicated to implementation, the software could cost more than its worth in thousands of dollars in missed billable work.

Firms should also avoid software with several limitations on the data types that can be migrated into the system. For example, law firms should be able to transition all of their historical matters, correspondence, and accounting data seamlessly. Losing out on that data can create issues for clients on retainer, make it difficult to run conflict of interest checks, and create more work to find relevant information for open matters during the transition process.

What Makes a Legal Practice Productivity Solution Different?

If your current software provider, or a software provider you’re considering, has any of these red flags—or worse, all of them—then it’s time to consider switching to a legal practice productivity solution. LEAP is the only legal practice productivity solution designed to provide everything a New Jersey family law firm needs to be productive and profitable in 2023 and beyond. Here are a few reasons why over 61,000 legal professionals have already made the switch to LEAP:

Simplify IT Infrastructures - Cloud-based LEAP helps law firms establish simple collaboration with clients and creates a strong work-life balance for staff members to be successful. Hosted on Amazon Web Services (AWS), LEAP has a 99.99% uptime, which allows users to work from anywhere, at anytime online and offline, with autosave features to instantly capture changes, recorded time, and notify users of updates in real-time. Additionally, LEAP offers free backups, so New Jersey matrimonial attorneys can rest assured that their data is compliantly secured, mitigating malpractice risks.
Establish One Version of Truth - LEAP allows users to vet and onboard new clients with access to practice management, document management and assembly, legal publishing, and legal accounting features in a single solution. On their desktop or mobile device through the LEAP Mobile App, users can open electronic matters for all common New Jersey family law matters and access to automated common documents like Certification of Insurance Coverage Pursuant to R. 5:4-f (LD-NJ-FAM-0025) and Summons (Divorce) (LL-NJ-FAM-0123). Additionally, partners and bookkeepers can simplify complex office and trust accounting functions directly in the system with LEAP features and access to integrations with office, legal, and accounting software systems.
Leverage Free Training & Support - LEAP is committed to driving innovation for the legal industry. Part of that includes offering continuous updates to our training and support resources to provide users with all the tools they need to get out of LEAP. Available at no additional cost, 24/7, LEAP users can access the LEAP Help Center, LEAP University, the HelpDesk, and more, all through the LEAP User Portal. These solutions ensure that whether a user has used LEAP for three years or three days, they can always access the most up-to-date training materials without worrying about additional costs or finding time in their busy schedules for dedicated training sessions.
Transition Data Seamlessly - LEAP makes it easy to move to the legal practice productivity solution with minimal downtime, regardless of a firm’s previous software provider. Based on a firm’s needs, law firms can seamlessly transition their matters, correspondence, and accounting data to LEAP to pick up from where they left off after implementation. For firms transitioning from PCLaw or Time Matters, LEAP Strato is the only solution built specifically to transition data from those systems to the cloud quickly and accurately.

Conclusion

There is no better time for New Jersey law firms to determine if their current software investments have the solutions needed for their firms to establish sustainable business processes. If firms identify any red flags hidden in their IT infrastructures, the LEAP legal practice productivity solution provides law firms with everything they need to run a family law firm in the cloud with an all-in-one solution that improves productivity, profitability, and employee and client experiences.

See how LEAP can improve operations and reduce overhead for your New Jersey family law firm today.

The Marital Balance Sheet and Common Errors in a Divorce Settlement and the Division of Marital Assets

Fri, 10 Mar 2023 17:00:00 GMT

By Kriste Rodriguez, Director | EisnerAmper, AAML NJ Bronze Sponsor

Overview of the Marital Balance Sheet

One of the tasks as a forensic accountant is to prepare a marital balance sheet to help facilitate the division of the marital assets/liabilities. The assets and liabilities of the marital balance sheet may include, but are not limited to:

Real estate
Bank accounts
Automobiles, boats, etc.
Tangible property, including artwork, furniture, jewelry, collectible items, wine, etc.
Brokerage accounts including stocks, bonds and securities
Retirement accounts, including pensions, IRAs, profit sharing plans, 401(k)s, etc.
Value of a business interest
Employee benefits, such as restricted stock, stock options, etc.
Cash surrender value of life insurance policies
Liabilities include mortgages, lines of credit, notes payable personal loans and credit card liabilities

The value of certain assets listed above, such as real estate, pensions, jewelry, and wine collections, are determined by appraisers that specialize in these areas. Kelly Blue Book or similar services are often used to determine the value for automobiles, boats, etc. Account statements are reviewed by the forensic accountant to determine the value of assets, such as bank, brokerage and retirement accounts. Forensic accountants are tasked with determining the value of an interest in businesses to help attorneys determine the parties share of the business value for equitable distribution.

Failure to Consider Tax Implications Could Result in Inequitable Division of Assets

Certain assets may appear to be equal in value on the surface. However, certain events could trigger tax consequences, which could result in very different values.

Take, for example, the marital residence. There is no issue if the parties agree to sell the marital home and split the proceeds. However, if one of the parties remains in the house and subsequently sells the home, the tax consequences, specifically capital gains tax (if any), could impact the value to that person after it is sold.

The assets in a brokerage account portfolio may not really be equal in value. A brokerage account with cash of $100,000 does not have the same value as a brokerage account with $100,000 of stock on an after-tax basis. Once the tax implications are considered on stock when it is sold, the values become very different. The gain on the sale of stock is the difference between the cost basis and the sale price. This gain will be either subject to long-term or short-term capital gains, resulting in an after-tax value less than $100,000. Similarly, if the parties have two brokerage accounts each with $100,000 of stock in the portfolio, the cost basis for each of those accounts could be very different, resulting in more or less taxes. The tax consequences should be considered so that the asset is equitably distributed.

Retirement Account Division – Understanding the Rules

The division of retirement assets, such as 401(k)s should be carefully considered. Not only are tax implications involved, but specific rules also apply to the transfer of certain retirement assets. Failure to comply with these rules could result in unintended consequences. For example, if one party is entitled to a portion of a 401(k)the money should not be withdrawn and transferred to the other party without executing the proper paperwork. Failure to do so could result in early withdrawal penalties and incomer tax consequences. A document known as a qualified domestic relations order or QDRO should be drafted, which specifies how the spouse will receive their portion of the 401(k) without triggering any income tax or early withdrawal penalties. Eligible withdrawals from a 401(k) will be taxed at ordinary income tax rates and should also be considered when dividing this asset during settlement. The use of a forensic accountant with income tax experience can help you avoid the pitfall that can be encountered with 401(k) distributions.

Liquidity of Assets

The liquidity of an asset or the ability to turn the asset into cash is very important to consider when dividing up the marital estate. Cash in a savings or checking account is the most liquid asset. However, assets such as homes, wine collections and/or art collections are less liquid because it takes time to sell this type of asset. It is not practical for one spouse to receive mostly liquid assets and the other to receive primarily illiquid assets. Significant cash flow problems could result for the person receiving the mostly illiquid asset portfolio. One of the parties may keep the marital residence, in exchange for fewer liquid assets. It is imperative, specifically when there is a lack of liquid assets to be received in settlement, that a proper budget is considered to cover the expense of maintaining the home and other lifestyle expenses.

Life Insurance Policies

It is common in marital settlement agreements (MSA) for one of the parties to maintain a life insurance policy to cover their alimony and/or child support obligation should that party become deceased before their support obligation is over. The spouse that the insurance is obtained for should either be the owner or irrevocable beneficiary. This will ensure that the beneficiary will be notified if the premiums are not being paid or if there are any other issues with the policy. Failure to control the policy could result in a lapse or cancellation of the policy. As an alternative, the spouse that is maintaining the policy should provide proof of the policies on an agreed-upon time frame, whether quarterly, semi-annually or annually.

Conclusion

Any one of these common areas discussed above in a marital settlement agreement could cause significant financial loss and/or future financial distress if not addressed properly at settlement. Therefore, it is imperative to analyze the assets and consider all financial/tax consequences that each asset may have so that the division of the marital estate is fair and equitable.

Originally published on January 2, 2023.

2-2-3 Custody Schedules: Samples, Templates & Tips

Fri, 03 Mar 2023 18:09:15 GMT

By Elle Barr | Our Family Wizard, AAML NJ Bronze Sponsor

Co-parenting works differently for different families. It’s important to select a parenting schedule that aligns with your children’s needs to ease the transition for them and for you. Read more to see if the popular 2-2-3 custody schedule will work for your family.

What Is a 2-2-3 Custody Schedule?

A 2-2-3 custody schedule is a co-parenting schedule where each parent has equal time with their child. Parents split alternating sets of days over a two week period. The 2-2-3 schedule offers kids frequent time with both parents but could present logistical challenges.

2-2-3 is a common schedule rotation used by parents with joint physical custody, an agreement in which a child spends a lot of time with each parent. The 2-2-3 schedule, however, is an option that works specifically for co-parents who share time with their children on an equal, 50/50 basis.

You’ll often see the 2-2-3 schedule rotation referred to as a “custody schedule” or a “parenting schedule.”

50/50 parenting time rotations, like 2-2-3, work for some families and not for others. But a 2019 review published in the Journal of Family Sciences found that 50/50 arrangements could lead to positive outcomes for children. Still, they advised that blanket recommendations are inappropriate because every family’s situation differs.

Before selecting a routine, you should consider your children’s schedule, your relationship with your co-parent, and your child’s age. The 2-2-3 schedule can be logistically complicated, but a digital co-parenting calendar can automatically schedule the rotation to help keep you on track.

Michelle Dempsey-Multack, Certified Divorce and Co-Parenting Specialist summarizes the schedule nicely: “Although a 2-2-3 schedule doesn’t make sense for all families, it is a great option for co-parents whose work schedules allow for it, who have the ability to share in the parenting responsibilities equally, and who live near the other parent.”

“This schedule is especially helpful for children under the age of 4, who are adjusting to co-parenting and may have a harder time separating from one or both parents,” says Dempsey-Multack.

Key Takeaways

The 2-2-3 schedule is a 50/50 schedule that gives you and your co-parent equal time with your children.
The 2-2-3 schedule requires frequent exchanges and won’t work well if you live far from your co-parent.
Some kids thrive under a 2-2-3 schedule because they can see both parents regularly.
Other kids find the constant travel disorienting and stressful.
Parents use automated co-parenting calendars to best manage the 2-2-3 schedule.

Read the full blog post HERE.

Year of Divorce Financial Tips for Attorneys and Their Clients

Tue, 28 Feb 2023 19:48:12 GMT

By Wilmington Trust | AAML NJ Bronze Sponsor

As featured in Family Lawyer Magazine, financial experts and wealth strategists of Wilmington Trust’s National Divorce Advisory Practice share their first annual edition of divorce monthly tips. Using a thematic approach to tackle the many issues facing clients in transition, each monthly tip highlights a topic designed to propel action in a manageable yet disciplined way.

By linking strategies to recognizable themes and breaking them down into 12 timely monthly subjects, attorneys can create a systematic roadmap to help guide clients impacted by divorce.

Synergistic Value in Corporate Mergers

Tue, 21 Feb 2023 17:16:05 GMT

By Daniel Roche, CPA/ABV, ASA and Michael Saccomanno, CPA/ABV/CFF, CVA | Marcum | AAML NJ Gold Sponsor

Synergistic value is the additional value created in a merger between two companies due to synergies that can be exploited by the merged firms. Typically, these synergies come in the form of increased revenue or lower expenses, or a combination of both — thereby increasing the merged firm’s income and cash flow.

Typically, in business valuation, we consider a hypothetical willing buyer and a hypothetical willing seller in our analysis of the subject company’s fair value and/or fair market value. Synergies aren’t typically considered in a concluded value because that would require using a specific (not hypothetical) buyer and seller. However, synergies exist in transactions in the real world.

For example, take Elon Musk’s purchase of Twitter last year. The control premium Musk paid was approximately 38% greater than the publicly traded price on the announcement date. While not a merger in its truest sense, this premium price hinged on Musk’s belief that he could extract more revenue from the Twitter platform through a combination of revenue-generating and expense-reducing measures. That said, while synergies can be anticipated and paid for in a transaction, the ultimate realization of synergies happens post-transaction and is more a product of successful execution than financial modeling and math.

As you are all aware, Marcum and Friedman recently merged (September 1, 2022) and the combined entity now has $1.1 billion in annual revenue, positioning us to be the 12th largest accounting firm in the United States (note: updated industry rankings are due in March 2023). The merger also integrated the Friedman and Marcum Valuation Forensic and Litigation Support groups (VFLS), which now in totality includes just under 200 professionals across the country and bolsters the Marcum VFLS presence in New Jersey, Pennsylvania, and New York.

The Marcum and Friedman VFLS leadership teams worked together for more than four months pre-merger and another five months post-merger to integrate our existing practices and professionals and to enhance the services we bring to our valued clients.

Our VFLS integration has been very successful, and the realized synergies have been greater than originally anticipated. Our New Jersey matrimonial group has doubled in size, and we now operate from four offices in four different counties within the state, sharing and developing staff and integrating our knowledge and client bases. We also bring much more enhanced and complete industry specialties including digital assets, private equity, cannabis, construction, food and beverage, real estate, consumer products, energy, healthcare, etc., with valuation, forensic, and litigation support experts immersed in these industries.

So, look for us when you see us at events and ask us how our integration is going. We’re more than happy to talk about it with you. Hoping to see you all soon!

Originally published on February 14, 2023.

Buying a Home Post-Divorce

Wed, 15 Feb 2023 18:58:58 GMT

By Jonathan Blinken | Strategies For Wealth, AAML NJ Bronze Sponsor

Even under the best of circumstances, divorce is one of the toughest life events some of us have had to face. Not only are there emotionally complex relationships to detangle, but also there are also complicated financial arrangements and responsibilities to work through. From joint bank accounts, to car financing, to mortgages, the changes can seem overwhelming.

It’s not all bad news, of course. There are significant benefits to finalizing a divorce. You may find that you are:

Happier with your life.
Healthier than you would be had you stayed in a bad relationship.
Less frustrated financially.
Happier in your next marriage, based on what you learned the hard way in the first marriage.
Seeing happier children, because two home parents who are happy, are better than one home with two miserable parents.
More prepared for retirement than you expected to be, particularly if you are female. A University of Connecticut study of 40 years of census information, supported the fact that women experienced greater earnings growth if they chose not to remarry. Why? Those women delayed drawing Social Security and therefore made more money to gain financial independence.

However, you may also be losing a home you have grown to love and have worked very hard to purchase and maintain.

Homes Owned by Both Spouses

If you and your spouse owned a home together, try to get it paid off and whoever is keeping the house should attempt to qualify on their own to continue paying the mortgage and remove the other party from the deed. Since the initial mortgage approval was likely based on two incomes, becoming a sole owner may present challenges. You may both need to re-assess the need and benefits of selling the home versus keeping it under a sole owner. Perhaps a rental, or downsizing, is the better option for everyone for the short term. Give this due consideration and make the decision that works best for everyone.

If you want your ex-spouse to remain in the home, with the children, and he/she is not able to refinance the mortgage alone, you may decide to leave it in both names for a period of time. That decision is a personal one, and if your spouse has been staying home to care for the children, it may be best for everyone to keep the home in both names. There is likely enough upheaval amidst the divorce for everyone without having to move everyone and everything out of the existing home.

If selling the marital home is the final decision, be certain that both spouses have the proper legal documents in place to ensure any profits from the sale of the home are shared and distributed appropriately.

Based on your relationship, it may be possible for both spouses to remain in the home during divorce proceedings, which may help save money. If that isn’t comfortable for everyone, you have other options, short of crashing on your friend’s couch:

Rent a one-bedroom apartment
Rent a small house or condo
Rent with the option to buy
A live-in hotel that includes a kitchen (if your company puts execs up at a location, you may be able to score the corporate rate)

Mortgage Approvals

If you’ve decided to buy, let’s review how a mortgage approval works. Bear in mind that regulations can change as quickly as bank procedures. While the following are good guidelines, you may find specific approval criteria have evolved.

Most banks and mortgage companies are want to see at least two years of continuous employment at the same organization and at the same, or increasing, rate of pay.
Be prepared to provide documentation of all your assets and income sources.
Be sure you have minimized your debt where possible document all liabilities, along with proof of the debt. This will include child support and alimony (or spousal support) obligations. You will need to document separation and divorce decrees.
The larger the down payment, the better your chances of approval. A minimum of 20 percent is recommended.
- An 80 percent loan will help you avoid private mortgage insurance (PMI), which increases your costs. The lender is the only one who benefits from PMI.
A copy of your tax returns, W-2s, pay stubs, and any invested funds will also need to be accounted for and documented.
Be sure your credit report is clean, and your credit score is greater than 500. The higher your credit score, the better able you will be to secure a lower interest rate. Try to get your score above 600, 700s are even better.
- Being late more than 30 days on just one bill could adversely impact your score. Be sure to stay diligent with your existing debt payments, especially if you currently have another mortgage liability.
If you have a prior foreclosure or bankruptcy on your record, approval is going to be harder, so brace yourself. You may have to rent until those items drop from your record. Depending on the specifics of the prior bankruptcy or foreclosure, it could be as few as two years or as many as ten.

Before you begin shopping and talking with agents and sellers, I encourage you to obtain a pre-approval from your lender of choice. That serves two significant purposes:

You will know exactly what price range you should be searching.
The real estate agent and seller will appreciate knowing you have already been pre-approved.

Remember, there is nothing wrong with waiting a few months, or years, to ensure you are fully prepared for one of the largest investments of your life. It may actually be better to wait until the divorce is final to seek your mortgage approval. Pending litigation may be a turn-off for the lender, because the alimony and child support obligations may still be unknown.

Ensure you shop for a mortgage broker; consider rates, terms, and size. A larger bank or credit union may have volumes that permit them to offer lower rates. There are also varying products available, including: fixed rates; adjustable rates; 15, 20 and 30-year terms; balloon mortgages; VA; FHA; or an interest-only loan. You may have homework to do based on the extent of your financial capabilities and prior home buying experience. Make sure you ask questions about all the fees and interest rates. While federal regulations dictate a level of consistency across the board, in many cases, the lender may have a little wiggle room and it never hurts to ask!

Devil Is In the Details

As you begin the process of shopping for an agent, and a home, consider a few things before reaching out to anyone. The National Association of Realtors provides training, support, and a code of ethics and is a great starting place with more than one million members. It’s okay to “interview” the agent before making a commitment. Some items to discuss include:

How well they know the area in which you are looking for a home.
Their experience level, and how long they have been in the real estate business.
What current market conditions are like.

You will want to find an agent that makes you feel comfortable and fully understands your needs and expectations. Having an agent that understands divorce implications, both financially and emotionally, can be an added benefit Be sure they represent you and not the seller!

Location, Location, Location!

Do you want to be in a neighborhood with kids of a similar age to your children?
What is the local school system like?
Do you need to be close to the kids’ schools or daycare?
Do you want to be near religious or community centers?
Do you need access to public transportation? Are there suitable parks in the area.?
Do you need additional space for aging parents, or the kids should custody arrangements change?
What style home appeals to you, will you consider a condo or apartment?
Are there any community regulations and homeowner’s association fees?

Plan to spend an average of 30 days to locate the perfect home, which will likely entail visits to 15 to 25 properties, or more. You’re probably going to be in your home for years to come, so find something that meets your needs and tastes, and fits within your budget.

Financial Matters

Divorce tends to be costly, even excluding housing costs. We all incur various expenses associated with ending a marriage, and in many circumstances, they can be significant. However, there are some steps you can take to ensure that you either remain financially sound or quickly return to financial security post-divorce. Here are a few tips I found helpful for my divorce:

Save as best you can, and remember there is a difference between needing something and wanting something. Try to exercise a little restraint on the wants, and only satisfy your needs, at least for the short term.
Protect your credit report and scores. While divorce itself may not have a direct impact, it’s easy to accidentally miss a bill if you’re unsure who is supposed to be paying. Not only does this incur late fees, but your credit score may also be impacted negatively. Any joint accounts you have with your spouse should be paid in full as soon as possible and the credit then re-established in your separate names. I know that’s easier said than done; however, getting rid of debt in both names is going to help both spouses.
If you don’t already have identity theft/credit monitoring protection, get it! With so many data breaches occurring these days, this should not be considered optional. This often includes additional features including access to your annual credit reports and scores.
The divorce may impact your taxes as well, another critically important financial consideration given your new family structure.

You are navigating through an emotional time in your life. Some researchers report that divorce is the single most stressful event in anyone’s life, so be kind to yourself and be patient. You deserve the best life has to offer, so take the appropriate steps to ensure you are getting what you need and want out of life.

Co-Parenting Through Valentine’s Day

Wed, 08 Feb 2023 17:23:45 GMT

By Elle Barr | Our Family Wizard, AAML NJ Bronze Sponsor

Valentine’s Day is all about sharing and celebrating love… so what do you do when you feel like your love has died, or even been replaced? This can be a tricky holiday for co-parents. Some even call it the worst day of the year. But it doesn’t have to be.

To salvage the holiday, look beyond romance toward other types of love. "Valentine’s Day is designed to have individuals express love and affection to those who are dearest to them,” says Robert Z. Dobrish, a matrimonial attorney and senior partner at Dobrish Michaels Gross LLP. “It’s an opportunity for divorced dads and moms to share thoughts and symbols of love with their daughters and sons."

Here are a few ideas to get you started, in three sections:

Things you can do with your kids
Things you can do for yourself to get through the day
One thing that’s crucial for you AND your kids

1. For the Kids: Make New Family Traditions

Coordinate with your co-parent—or work around their schedule

Most shared parenting orders do not provide guidelines for holidays such as Valentine’s Day, Halloween, St. Patrick’s Day, and other such “second-tier” holidays, explains Candice L. Komar, founding member of Pollock Begg Komar Glasser & Vertz LLC and a practitioner, litigator, and negotiator in matrimonial law. Dobrish adds, “In my manyRobert Z. Dobrish, Matrimonial Attorney & Senior Partner at Dobrish Michaels Gross LLP years of practice, I have never seen a sharing of Valentine’s Day in any divorce agreement.”

You can still add it unofficially and switch off every other year. If it usually falls with you, it would be a generous gesture to share the day or swap days some years. If your child stays with you, consider arranging a video chat with their other parent on February 14, so they can be reminded that both their parents love them very much. Or, if your child is not with you on the holiday, try to celebrate on a nearby date.

Focus on parental love

The important thing is to make sure the kids feel loved. If you snub the holiday, it could make the day feel difficult or empty. If your kids see the world celebrating love, and their parents are miserable about the concept, then Valentine’s—or even the idea of love itself—might feel inauthentic to them.

But if the kids realize that their lives are filled with love, even thoughDr. Deborah Gilman, Psychologist, Collaborative Divorce Coach & Child Specialist their parents are no longer together, the day could be fun or even comforting. Dr. Deborah Gilman, psychologist, collaborative divorce coach, mediator, and child specialist, explains, “Even if you’re hurting, you can model the importance of showing love and affection to people whose relationships you treasure.”

Dr. Gilman has a fun idea for showing your kids love (in addition to telling them how much you love them and making time to celebrate together). “Write little notes of appreciation and leave them around the house and tucked in the kids’ backpacks, jackets, and lunches so they can find unexpected, sweet messages throughout the day.”

Get crafty with the kids

“Make decorated heart-shaped cookies, beaded bracelets, artwork,Candice L. Komar, Litigator & Founding Member of Pollock Begg Komar Glasser & Vertiz LLC cards, or other Valentine’s themed crafts,” suggests Komar.

To take it to the next level, encourage your child to give one creation to their other parent. This sends a message that the parents are still communicating and aligned. They’re no longer married, but that doesn’t mean they don’t care for each other.

“This is important because it shows you respect and value your child's relationship with their other parent,” explains Dr. Gilman. “It's also a great lesson in how to put your child's feelings first.”

And keep in mind, this isn’t for your co-parent’s benefit. Children thrive when their parents are friendly with one another, explains Komar.

Too often, Komar adds, parents hide behind excuses like “I don’t want the children to be confused” or “I don’t want the children to get their hopes up for reconciliation.” Then they’re standoffish and nasty to the other parent just to prevent those outcomes. But that only hurts the kids more. Seeing their parents act cordially toward each other can relieve a lot of stress and tension.

2. Make Your Day Meaningful

The kids should be your focus, but you matter too. This might be a painful day, and you’ll feel better and function better if you take good care of yourself.

Show gratitude

Making cards isn’t just for kids! “Send little notes of appreciation to the friends and family who have sustained you through your divorce thus far,” suggests Komar. “Gratitude, next to love, is one of the most powerful emotions there is. Be grateful for all the love in your life—not just romantic love, but also your parents, friends, co-workers, and pets.”

Don’t slide into a downward spiral

You’re no longer with your former spouse or partner on Valentine’s Day. That might feel like a huge relief, or you might be grieving—or both. Either way, it might feel weird. It’s easy to give into depression when you’re dealing with complicated or negative emotions, but it’s not unavoidable.

“Expressing gratitude will go a long way in pulling someone out of a funk just because they are not with a special someone on Valentine’s Day,” says Komar. I am sure if you look back with an honest lens, not all the Valentine’s Days were perfect Hallmark moments with your ex-spouse. Keep thinking the best is yet to come!”

Lean on your resources

Komar recommends a book called Parenting After Divorce, Resolving Conflicts and Meeting Your Children’s Needs by Phillip M. Stahl, Ph.D. It explores the nuts and bolts of creating a parenting plan—including getting past your own emotions, tailoring the plan to your kids’ ages, responding to your kids’ questions, communicating effectively, and supporting a relationship with the other parent.

It also includes a chapter on taking care of yourself, under the theory that if you do not take care of yourself, you’re not going to be an effective parent.

And on that note,

3. Model Self-Love, The Key to Resiliency

“It is important that our children see us care for ourselves and love ourselves,” says Dr. Gilman, “even when life hasn’t been perfect. It is self-acceptance and self-compassion that model resilience during and after adversity.”

Check out Verywell Mind’s 7 Ways to Practice Self-Love—and talk about what you’re doing as you put it into action. When you go to bed, tell your kids you get consistent sleeping hours because it nourishes your body and improves your mood. When you make a mistake, acknowledge it and then talk through the practice of self-compassion.

"Watching a parent go through a difficult time, and still being able to love and accept themselves (and accept the negative situation), is a powerful way to encourage children to love themselves no matter what,” says Dr. Gilman.

Celebrate All the Love in Your Life, Especially Your Love For Your Kids

Remind your children that no matter how much upheaval they’ve faced, two things are for certain: you love them, and their other parent loves them. That will never change.

The Secret to Simplifying Trust Accounting for New Jersey Matrimonial Lawyers

Wed, 01 Feb 2023 17:08:50 GMT

By Leap US, AAML NJ Silver Sponsor

Compliant and efficient trust accounting practices are essential for New Jersey matrimonial attorneys to ensure success and provide their clients with high-quality legal services. Whether a partner or a bookkeeper manages trust accounting processes, outdated practices can leave family law firms vulnerable to inefficiencies, malpractice, and disbarment risks. While this is a daunting prospect, the good news is that legal trust accounting software can eliminate these challenges and provide automated processes that are simple, scalable, and efficient.

Let’s take a closer look at everything New Jersey matrimonial attorneys need to know about trust accounting.

What 3 Common Law Firm Challenges Impact Trust Accounting Practices?

Often, family law firms have limited resources to dedicate to managing all the trusts they’re overseeing. This becomes especially true when there are no digital software solutions to eliminate challenges that prevent law firms from implementing streamlined and compliant trust accounting processes. The three most common challenges are:

1. Time

The biggest challenge New Jersey family law firms face is having the time to dedicate to maintaining healthy trust accounting habits. Between court appearances, meeting with clients, preparing documents, and managing payroll, lawyers and their support staff have a minimal amount of time left in a day to put effort into manual trust accounting processes.

2. Poor Record Keeping

Receipt management and time recording often occur “after the fact,” which leads to inaccurate records of how much time was spent on client matters or expenses being missed for reimbursement when preparing client invoices. When attorneys have to go back and guess how much work they’ve done or the amount of money spent on a client, it limits how much time can be spent on other tasks.

3. Data Entry Errors

Data entry errors are bound to happen if law firms work across spreadsheets and multiple siloed software systems. Without a centralized database, attorneys and bookkeepers can accidentally type in the wrong information or post updates to the wrong trust because they are trying to consolidate information from multiple sources. As a result, these mistakes can lead to overdrawing a trust and malpractice.

While these challenges can seem overwhelming to solve, legal trust accounting software can eliminate these challenges for more streamlined operations.

What is Legal Trust Accounting Software?

Legal trust accounting software systems are a digital solution that enables attorneys and bookkeepers to manage, reconcile, and audit trust accounts automatically for their clients to meet bar and jurisdiction requirements. In addition, reporting should be available within the software to quickly review up-to-date reports on dormant matters with trust account balances, potential trust to receivables transfer, and retained trust accounts for an overview of all trust funds and to ensure that all money is handled compliantly.

It is important to keep in mind that legal trust accounting software is different from general accounting systems. For example, general accounting programs do not offer the tools and features needed to complete trust accounting-specific functions or label funds appropriately when reconciliations occur at the end of the month.

Legal Trust Accounting Software Benefits

There are several benefits that New Jersey family law firms experience when they implement legal trust accounting software.

Save Time on Manual Work - Eliminate manual tasks that require attorneys, support staff, and bookkeepers to update spreadsheets, paper files, and siloed systems. When the right legal trust accounting technology is in place, there is no need for double data entry, so staff members can focus on completing more work in the same amount of time. Additionally, the right trust accounting software provides intuitive reporting for attorneys and bookkeepers to get an overview of current trust balances, outstanding next steps, and more.

Improve Record Keeping - Trust accounting technology provides a digital trail of all changes in real time in a single database. Financial transactions are saved to the matter for approval on disbursements, invoices, and client transactions. This ensures that reconciliation becomes faster with fewer discrepancies and that all actions are compliant.

Ensure Compliance - Software can provide peace of mind for attorneys that all transactions are IOLTA and state bar rule compliant. Trust accounting software can process large transactions at high volume while preventing trusts from being accidentally overdrawn, misused, or mingled with firm funds to prevent malpractice lawsuits.

Conclusion

The need for compliant and efficient trust accounting practices will only continue to increase as trust accounting regulations evolve. Manual processes waste valuable time and resources for New Jersey family law firms and leave them at risk for malpractice lawsuits and potential disbarment.

Firms that embrace legal trust accounting software for automation and reporting can eliminate redundant work, improve their records for smoother auditing and client updates, and mitigate compliance risks for their practice. The LEAP legal practice productivity solution provides New Jersey family law firms with everything they need to modernize their entire practice and centralize all data to automate and simplify trust accounting. To learn more about how LEAP could help your firm improve trust accounting practices, visit leap.us/new-jersey.

What you Need to Know: Collaborative Divorce

AAML NJ Administrator — Wed, 25 Jan 2023 16:30:00 GMT

By Carolyn Daly, Esq. | Daly & Associates | AAML NJ 2022 - 2023 President

Learn More about this Alternative to Traditional Divorce

Legally dissolving a marriage can prove a trying and stressful time for all parties involved. Collaborative divorce is another way to help you get “divorced without the drama” as it is intended to be a non-adversarial experience. In a collaborative divorce, both parties work together to reach a settlement. Instead of trying to “win,” each party shares the goal of being transparent and flexible in negotiations to reach a resolution they are both satisfied with and that is best for them and their children. It is outcome-directed, solution-oriented, and focused on the client’s goals and family.

What does a Collaborative Divorce Attorney Do?

The collaborative divorce attorney will provide guidance, counsel, and representation to the client to ensure that any outstanding issues between the separating spouses are resolved. They must be specifically trained in collaborative divorce, settlement- minded and creative. In order to help the parties, they may bring in other professionals to help assist in the resolution. Some professionals include:

Financial Planners: This will be one neutral professional working with both parties. The financial planner can help the parties determine how cash, stocks, deferred compensation, retirement accounts and other high-value assets, debts and obligations are divided. A financial planner can help with post-divorce budgets and show the parties how various settlement options will enable them both to reach their long term financial goals.
Accountants: Similar to a financial planner but with a slightly different role, a neutral accountant can be brought in to work with both parties to determine their net income, taxes and the best way to file taxes to minimize overall tax burden.
Child therapists or custody experts: No parent wants to lose custody of their children. And children generally need both parents involved in their lives. How that is accomplished is often stressful and can be the most adversarial part of a typical divorce. Having a child therapist or custody expert work with parents can help focus each parent on the needs and well-being of their children so that they reach a time-sharing schedule that works best for them and, most importantly, their children.
Mental health professionals: Sometimes emotions get out of control and put the process at risk. Your lawyer can bring in a mental health professional as a coach that can work with either or both of the parties to help them manage their emotions during the process.

The Collaborative Divorce Process

You and your spouse should first discuss if Collaborative Divorce is right for you. If you decide that it is, then you each hire an attorney trained in Collaborative Divorce. The attorneys will speak to each other and prepare a collaborative divorce agreement, which is an agreement to remain out of court. They will then discuss the issues, information needed from the other party and set an initial meeting with an agenda. That meeting is a 4-way meeting where you and your spouse and each attorney meets to discuss the issues. If you have decided that you will need a coach, child therapist, or financial planner, that professional may also attend the initial meeting. More likely you will determine in that first meeting what other professionals you will need and select them. After that meeting, each party will have things they need to do or information they need to gather before there is another meeting. There will then be another, or many other 4-way meetings discussing resolutions, reviewing information from the other party or professionals until a settlement is reached. Once a settlement has reached an agreement is drafted and signed and then the parties can proceed with the process of getting legally divorced.

Are Court Dates Required?

Successful collaborative divorces can be made final in New Jersey through one court appearance or the filing of paperwork. As long as all terms and conditions are set forth in an agreement signed by both parties, there should not be any additional court appearances required.

What if We Can’t Agree?

While collaborative divorce is a good alternative to a litigated divorce, it does not always result in a settlement. Either party can cease collaborative proceedings at any time. If the negotiations end without a resolution, each client is encouraged to seek new representation to begin litigation. The lawyers who provided representation during the collaborative process cannot continue to offer their services in litigation.

The Benefits of Collaborative Divorce versus Typical Litigation

Lower Expenses

Out-of-court negotiations often result in fewer expenses for the client. They can avoid paying steep legal fees and often need to retain their attorneys for less time. If alimony or child support factors into the discussions, each party can agree to a fair amount independently of judicial decisions.

Less Stress

The non-adversarial nature of collaborative divorces creates a less stressful environment for each party. Instead of intense arguments and speaking through third parties, couples can communicate directly with their legal counsel present in a calmer setting. A divorce coach is also very helpful in managing stress and other emotions.

Greater Ability to Get What You Want

Divorcing parties can exercise more decision-making power over factors that are most important to them, such as child custody or retaining possession of specific assets. This places more power in the client’s hands and ensures that their true desires are more fulfilled.

Shorter Process

In New Jersey, divorce litigation proceedings can now take well over two years to reach trial or resolution. In a collaborative environment, this time is usually one-third to one-half of that timeframe. This allows everyone to transition to their new lives more quickly.

Increased Professional Support

As standard practice for a collaborative divorce, your attorney will aid you in hiring a divorce coach. This mental health professional will help resolve any outstanding personal or emotional conflicts so that the proceedings can begin with each partner in a mentally healthier state.

Long Term Sustained Relationships

When two parties dissolve their marriage collaboratively, they are generally able to maintain a friendly or cooperative relationship following the divorce. This helps maintain the ability to co-parent children or to resolve any issue that might arise after the divorce is final.

Interested to learn more about collaborative divorce? Visit our Fellow Directory to find a qualified Matrimonial lawyer.

2-2-5-5 Custody Schedules: Samples, Variations, Templates, and Expert Tips

Tue, 17 Jan 2023 16:45:07 GMT

By Elle Barr | Our Family Wizard, AAML NJ Bronze Sponsor

A co-parenting schedule can help you raise a family across different homes. Check out this comprehensive guide on the popular 2-2-5-5 custody schedule. Download a free parenting schedule template, learn from expert tips, and see if this rotation will fit your family.

What Is a 2-2-5-5 Custody Schedule

A 2-2-5-5 custody schedule is a shared parenting rotation that splits parenting time 50/50. Parents split time into two-day and five-day blocks. Many experts like this schedule because parents keep the same days every week, making it easier to remember.

You’ll often see the 2-5-5-2 schedule rotation referred to as a “custody schedule” or a “parenting schedule.”

Joint physical custody is a parenting arrangement where both parents have physical custody over their children. The children rotate their time living with each parent often on a set schedule. When deciding on a schedule, co-parents consider various aspects like work schedules, children’s schedules, children’s ages, and distance between housing to select a parenting plan that works for your unique situation. For those who want shared custody, a 50/50 split can be an attractive option.

50/50 custody schedules split parenting time equally. This schedule has grown in popularity, with many co-parenting feeling it is fair and gives kids adequate time with both parents. But a 50/50 custody schedule might not be right for all families. For one, splitting time down the middle introduces complexities that not all co-parents may be equipped to handle. Instead of one house being the dominant residence, parents with 50/50 custody must balance the logistical challenges of frequent exchanges with the emotional burden of long times apart.

Terri Breer, a family law attorney and mediator from California, says co-parents have a lot to think about even when they have agreed to share parenting time equally. “While they may want a schedule that allows for equal parenting time with each parent, co-parents need to consider additional schedules. For example, there might be a better way to break up the weekly parenting schedule, particularly if their work schedules or children’s needs suggest a different arrangement.”

The 2-2-5-5 parenting plan offers many benefits for parents who decide that a shared schedule will work best for their children. This rotation keeps the days of the week consistent between co-parents and minimizes time apart.

Key Takeaways:

The 2-2-5-5 is a 50/50 parenting rotation that gives each co-parent equal time with kids over a two-week period.
As with most 50/50 schedules, 2-2-5-5 works best for co-parents who live near one another and don’t have a high-conflict relationship.
This schedule is best for younger kids, who will go only four full days without seeing a parent.
The 2-2-5-5 schedule gives both co-parents a long weekend with the kids.
A shared co-parenting calendar helps co-parents manage the 2-2-5-5 schedule.

Read the full blog post HERE.

4 Reasons New Jersey Matrimonial Attorneys Need Legal Software with Integrations

Tue, 10 Jan 2023 16:44:21 GMT

By Leap US, AAML NJ Silver Sponsor

As New Jersey matrimonial attorneys start to review different software solutions for their law firms, they will come up with a list of features that they want the solution to include. While it is essential to ensure that the software contains all the features your firm needs to run and operate efficiently, it is equally essential to ensure that the software offers seamless integrations with other common office and legal solutions. These integrations may include tools your firm already uses or new solutions that can provide additional automation and value to your firm.

In this blog, we will cover the four reasons that New Jersey family law firms should add integrations to their legal software wish list.

Keep Your Current Systems

Most law firms are already using common office systems like Microsoft Outlook for email management, Microsoft Word for document assembly and management, and Microsoft Teams or Zoom for internal and external collaboration. If a firm’s staff members are happy using these systems, it is essential that any new system easily integrates with those tools to reduce resistance to change and create a single source of truth. For example, Office 365 integrates with LEAP across multiple workflows. Emails sent and received in Outlook automatically save to the correct matter for all staff members to see the latest correspondence with a client. Additionally, LEAP for Word enables matrimonial attorneys to automate document assembly, instantly track time spent on a document, and have it all saved back to the electronic matter. The Microsoft integration does not require your staff members to shift away from the systems they’re comfortable with and saves them countless hours in administrative work with enhanced features.

Reduce Manual Work

The main goal of any software implementation is to create less work across the business to improve productivity and reduce redundant work across the law firm. Where a software solution does not have a native feature to address a challenge matrimonial attorneys face, it should offer an integration that will provide a solution. Let’s take legal calendaring as an example. LawToolBox exclusively integrates with LEAP so that New Jersey matrimonial attorneys can have peace of mind when managing their cases. In a matter of clicks, they can manage critical dates and deadlines related to their cases as reminders populate into their Outlook calendar. This automation eliminates the need for attorneys to manually create reminders, check for updates, and manage timelines. Additionally, it helps to reduce errors caused by missing deadlines which helps to retain the practice’s and attorney’s reputation and maintain client trust and satisfaction throughout the process.

Simplify Client Communication and Collaboration

In today’s world, clients expect to be able to access documents and updates at all times and through the convenience of their phone or personal computer. Therefore, family law firms need to identify software solutions that have integrations with a secure and simple collaboration tool that their clients can access. A prime example of this is LawConnect’s exclusive integration with LEAP. LawConnect provides one place to share legal documents between lawyers and clients securely. Matrimonial attorneys can send their clients documents to collaborate using the comment, reply, and sign features online from multiple devices. Not only does this allow clients to quickly and easily provide feedback, but it also creates a secure, single version of truth for attorneys to access the most up-to-date file and have an entire history of any changes.

Improve Cash Flow and Get Paid Faster

Ultimately, New Jersey family law firms will struggle to stay in business if they do not have a healthy cash flow. Therefore, the legal software firms choose should offer integrations that simplify billing, invoicing, and payment so that firms can bill more regularly and accurately while getting paid faster. For example, RapidPay, powered by LawPay, integrates with LEAP to provide a secure online portal for clients to submit online payments via credit card. In addition, RapidPay generates payment footers on invoices, automatically produces receipts, and sends payment reminders to clients. These features help firms get paid faster and make it easier for clients to make payments with a user experience they’re comfortable and familiar with. From there, QuickBooks Online and Xero integrate with LEAP to complete law firm accounting without having to key in the same information multiple times into several systems.

Conclusion

Whether a law firm has no legal software or is looking to change its current tech stack, they must choose a software solution that offers the integrations they need to have access to everything they need to run their firm efficiently. The LEAP legal practice productivity solution provides comprehensive features and several integrations that enable New Jersey family law firms to create a single version of the truth while running a productive and profitable practice. Learn more at leap.us/new-jersey.

6 Software Automations Every New Jersey Family Law Firm Needs

Wed, 04 Jan 2023 01:18:39 GMT

By LEAP US, AAML NJ Silver Sponsor

As technology continues to improve how we complete everyday tasks and increase clients' expectations of the law firms they choose to work with, New Jersey matrimonial attorneys need to identify software solutions that can help automate their firms' business functions. In fact, 47% of law firms plan to increase technology adoption and usage to help support automation and efficiency across their practices.

As your firm looks at automation tools to stay competitive and improve its overall success, LEAP has put together a checklist of the six legal software automations every New Jersey family law firm needs.

Document Creation & Management

Document creation and management are among the most common tasks that cost law firms several hours a week. Matrimonial attorneys can spend many hours, if not days, drafting and organizing complicated legal documents for all of their cases. These processes can lead to lawyers working more than 40 hours a week to compensate for the lost billable time or missing out on the opportunity to take on new cases because they do not have the resources. While legal forms are not one size fits all, an effective legal software will offer document automation features that auto-populate documents in seconds. These features should cover common documents like letters, retainer agreements, and court forms that would typically require hours of copying and pasting data. As less time is spent on repetitive, manual document completion, attorneys and their staff members reduce time spent on fixing accidental data errors, increase their focus on billable tasks, and potentially increase the number of clients they can take on.

2) Time-keeping Practices

Regular and accurate time-keeping practices are essential to maintaining a successful and profitable business. However, it is often neglected due to the inconvenience of traditional time tracking tools. When attorneys are on a call, in court, or on the go, they do not have the time to manually start and stop a timer to log the time into a paper-based timesheet. This means that lawyers must go back and estimate how much time they spent on a call, preparing a document, sending an email or letter, and in court. Unfortunately, these estimates are often inaccurate, so your firm loses out on thousands of dollars due to delayed and incorrect invoices. As New Jersey family law firms consider automation tools, they should ensure that automated time tracking is a key feature of the software. When attorneys have a tool that automatically logs their time and the data can be auto-populated in an invoice, it immediately has a positive impact on a firm's bottom line and gives the firm a better growth trajectory.

New Business Development

Building a solid connection with a new client starts before your firm even takes on a new case. Clients expect the firms they partner with to be modern and efficient while providing high-quality legal services, starting with the intake process. Automated client intake shows potential clients that you are committed to modern processes and making the process as seamless as possible from the beginning. For example, clients should be able to upload all their documents, schedule a call, and book an in-person meeting without having to go back and forth with you or your staff to find a convenient time or provide their information and documents multiple times. Additionally, once your firm takes on the case, the software should allow attorneys to instantly create a matter that can be updated with new documents, tasks, and all communication records.

Internal & External Collaboration

Document sharing and collaboration are key to the client-attorney relationship once you take on a new client. As family law cases deal with highly sensitive and confidential information, it is essential that clients can rest assured that their data is being stored, shared, and sent securely. If your firm uses tools like email or third-party tools (i.e., Dropbox, Google Drive, etc.), your firm cannot ensure data security. An automated document collaboration and sharing tool should offer the highest level of security while allowing attorneys, firm staff, and clients to leave comments, reply, and provide e-signatures directly from their phones or desktop computer. In addition, the collaboration tool should be fully integrated with where all case information is stored to reduce time spent uploading files, potential errors, and the risk of security breaches and noncompliance.

Billing & Invoicing

Did you know that nearly half of legal clients are more likely to choose a firm that accepts electronic payments? That means your firm could double your profits simply by having the option for your clients to pay by credit card, wire transfer, or even a common payment app like PayPal. A user-friendly payment system that offers clients a similar experience to common e-commerce interfaces accessed from any device makes it easier for clients to pay their invoices or replenish their retainer. Additionally, more payment options and reminders give you a competitive edge over other New Jersey family law firms that do not offer multiple, modern payment options.

Legal Deadline Management & Calendaring

There’s never a good way to tell a client you’ve missed a deadline. It gives your client a negative impression and significantly decreases the chances they’ll be a repeat customer or will recommend your firm to other people. Additionally, missed legal deadlines can lead to malpractice and jeopardize your ability to practice, and cost you thousands of dollars in malpractice lawsuits. An automated calendar or docket system mitigates these risks by importing critical court and legal deadlines into your calendar to ensure that deadlines are hit. An automated solution to manage legal deadlines reduces the risk of missed critical dates (and the subsequent consequences). It also enables better time management for New Jersey attorneys and their support staff.

Embracing an Integrated Solution

We recognize that investing in software to address all these business functions individually will be costly and burden your staff members by needing to access multiple solutions for a single case. That is why LEAP offers an all-in-one solution for New Jersey family law firms to automate and streamline every business function. The LEAP legal practice productivity solution offers features for practice management, document management and assembly, legal publishing, and legal accounting so your firm can improve productivity and profitability. When firms partner with LEAP and embrace cloud-based automation, they establish a digital backbone that helps them outpace their competition and address the ever-changing needs of their clients and employees.

As the legal industry continues to embrace the power of technology, automation is essential for law firms to establish business practices that support longevity and profitability. Inefficiency is no longer rewarded through more billable time as clients expect the law firms they work with to provide fast, high-quality, and modern services. LEAP Legal software provides New Jersey family law firms with the features they need across key business functions to help them automate previously manual and redundant tasks and improve productivity and profitability by 30%.

Interested in learning more about how LEAP can help your law firm automate your processes? Learn more at leap.us/new-jersey.

6 Things to Know about New Jersey Prenups

AAML NJ Administrator — Tue, 20 Dec 2022 16:53:34 GMT

Written by Ronald Lieberman, Esq. | Adinolfi, Lieberman, Burick, Roberto & Molotsky, P.A., AAML New Jersey Fellow

A prenuptial agreement is a binding, written document (contract) signed by two people before their wedding to control their rights and obligations in ways which may be different than what the law would compel on those topics. This contract protects assets and sets forth spousal support or maintenance obligations in case of a divorce. There are some things to know before signing a prenuptial agreement.

CHILDREN ARE NOT A PART OF THE AGREEMENT

Regardless of the desires of the parties, a prenuptial agreement cannot dictate anything having to do with children (such as child support or child custody), whether born before or after the wedding. But, you can dictate financial considerations for children from previous relationships.

AN ATTORNEY IS CRITICAL BUT NOT REQUIRED

You can enter into a prenuptial agreement without an attorney but going down that path can lead to complications. Your attorney understands the details of the law and will ensure you have fair representation in your prenuptial agreement. The attorney will work to make sure the prenuptial agreement is as “ironclad” as possible by detailing everything out in a way that protects your rights and your assets.

FULL DISCLOSURE IS REQUIRED OF INCOME, ASSETS, AND DEBTS

The purpose of a prenuptial agreement is to keep assets and debts separate and to dictate spousal support/maintenance in case a marriage fails. So, without a full and complete disclosure of all sources of income (earned and unearned), assets, and debts, the prenuptial agreement will likewise fail and assets and debts could end up being divided.

By disclosing income, assets, and debts, you are protecting them. Such full financial information is important for a healthy relationship and essential for the agreement's validity.

AGREEMENTS IN NEW JERSEY MUST BE FAIR AT THE TIME OF THEIR ENTRY

In New Jersey, a prenuptial agreement must be fair at the time of its entry, which may be different than how the agreement will be interpreted at the time of a dissolution.

Fair does not always mean there must be a proportionate division of assets and debts, or spousal support/maintenance in line with New Jersey law. But fair will mean a full disclosure of income, assets, and debts, and a relatively equal bargaining power between the parties. The timing of the signing of the prenuptial agreement compared to the date of marriage will also be important in determining fairness.

CONSIDER ENTERING INTO A PRENUPTIAL AGREEMENT WELL IN ADVANCE OF MARRIAGE

One of the worst ideas is to enter into a prenuptial agreement close to the date of marriage. But you will need to hire an attorney, and to discuss the issues with him or her. You will need to compile the information about income, assets, and debts. Your attorney may not be able to provide “laser focus” on your matter because of their obligations and commitments to other clients. So, you should be entering into a prenuptial agreement sooner rather than later compared to the wedding date is the best policy.

PRENUPTIAL AGREEMENTS ARE NOT COERCIVE

You can control the division of assets and debts, and whether and how spousal support/maintenance will be paid. You cannot dictate the behavior during the marriage of your soon-to-be spouse or limit him or her in any way as to how they live their lives during the marriage. You cannot mandate children be born or adopted, or similarly preclude that option. Any such action will lead a judge to invalidate your prenuptial agreement.

Are you looking for more guidance on prenups? Contact one of our Fellows!

7 Things to Know About Custody Arrangement in New Jersey

AAML NJ Administrator — Tue, 06 Dec 2022 21:34:38 GMT

By Christine Fitzgerald | Seiden Family Law, AAML NJ Fellow

Children are the most important consideration in any family law matter, in which the parties have children in common, and sometimes, even when they do not have children in common. When potential clients come in for a consultation, they often have an idea of what they want for parenting time or the custodial arrangement. But they often are missing key issues or have a misunderstanding of the law or of custody and parenting time in general. These are seven of the numerous things to know about custody arrangement in New Jersey:

1. One Size Does Not Fit All: Every family is unique

Every custody arrangement is unique. You and your coparent can craft a custodial arrangement and parenting time schedule that works for YOUR family.

2. Legal And Physical Custody Are Different

Clients often come in and say I want full custody. In New Jersey, we have legal custody and physical custody. Legal custody is who will make the major decisions for the children, such as educational decisions, medical decisions, and religious decisions. Physical custody is who will be deemed the Parent of Primary Residence of the children and what is the parenting time schedule.

3. Preference For Joint Legal Custody

In New Jersey, there is a strong preference for joint legal custody whereby the parties have to consult, confer and cooperate with each other to make major decisions affecting the best interest of the children together.

4. Designation of Parent of Primary Residence

There does not have to be a designation of Parent of Primary Residence in every case, even when one party has more parenting time with the children than the other parent. The designation is, however, in cases of 50/50 parenting time when the parties live in different school districts to determine where the children are going to attend school.

5. You Do Not Need To See The Future

Custody and parenting time are always modifiable if there is a substantial change in circumstances. When your children are little, you do not need to anticipate every decision or every possible change that could occur. You have the option of reviewing and modifying custody and parenting time so long as there is a substantial change in circumstances warranting a modification of the custody and/or parenting time.

6. Best Interest of the Child Rules

The standard that a Court will be considering your custodial arrangement, parenting time, and/or modification of either is what is in the best interest of the child. You should consider what you are proposing or requesting in those terms.

7. Holiday Parenting Time

Coparents often make the mistake of not thinking about how the holidays will play out in real life. If both coparents have families that live far away and far from each other and both coparents want to spend holidays with their respective families, then splitting the actual holiday (such as Thanksgiving Day or Easter Day) is not practical. Instead, consider alternating holidays so that one party gets Thanksgiving with the children in even years and the other in odd years. Think about your traditions and what makes most sense for you, your coparent and, most importantly, the children.

As number 1 above makes clear, there is no right way to craft your custodial arrangement. You have to determine what works for your children and your coparent. Your children are the most important part of your matter so creating a practical arrangement in their best interest is never wrong.

Updating Estate Plans Following Divorce

AAML NJ Administrator — Thu, 01 Dec 2022 15:11:10 GMT

By Alex Krasnomowitz, CPA, CVA, MBA | Smolin | AAML NJ Gold Sponsor

Divorce can be a stressful and time-consuming process. Following the end of divorce proceedings, family law attorneys may find that estate planning is the last thing on their clients’ minds. Still, it’s vitally important that clients update their estate plans to reflect their new situation.

As an attorney, you may not be the one working on those estate plans, but part of the divorce process is looking to secure long-term security for your client—and that includes solutions for financial success in the future.

It is crucial that estate plans are considered when going through a divorce—but it can be a challenge to find the right person to help your client through the basics of estate planning. To set clients up for success in all areas of their divorce, you may have to refer your client to an estate planning attorney, either in your firm or outside your practice.

By thinking proactively about solutions for your client, you’ll be helping to protect and control their assets while building valuable referral relationships. Below, we discuss a few key considerations for long-term financial planning that might be indicators your client could benefit from speaking with an estate planning attorney.

Using trusts to control assets

Since divorce usually extinguishes an ex-spouse’s rights under a will or other trusts, it is unlikely that a client's property will be directly inherited by an ex-spouse. However, it is still possible that an ex-spouse could have more control over their wealth than they would prefer, especially if they have minor children.

When a minor inherits property, that property is generally held by a custodian until the child reaches the age of majority—either 18 or 21, depending on the state. A surviving parent (including an ex-spouse) may act as the custodian in some cases, which could allow them to make decisions about how assets in trust are spent or invested until the child comes of age.

Creating a trust (or several trusts) for the benefit of your client’s children is a good way to avoid this situation. Trusts allow the grantor to appoint a trustee with the authority to manage the trust’s assets and make distributions. Since the grantor is able to choose this trustee, your client will be able to ensure that assets within the trust will not be controlled by their ex-spouse.

Different types of trusts to consider

All of the following trusts may play a valuable role in the estate planning process for individuals who have recently divorced:

Revocable living trusts

Revocable living trusts allow grantors to arrange for the transfer of specific assets to designated beneficiaries. These trusts are commonly used to complement a will, as they allow the assets they contain to avoid the probate process.

Irrevocable life insurance trusts (ILIT)

Irrevocable life insurance trusts (ILIT) allow the grantor to remove the proceeds of their life insurance policies from their taxable estate by transferring ownership of the policies to the trust. An ILIT also allows the grantor's family to pay estate costs using the life insurance proceeds from the trust.

Credit shelter trusts

Credit shelter trusts can allow the grantor to maximize the benefits of the estate tax exemption and are particularly useful in cases where the grantor has children from a previous marriage but also wants to ensure a new spouse’s financial security.

Qualified terminable interest property (QTIP) trusts

Qualified terminable interest property (QTIP) trusts may be helpful for clients that have divorced and then remarried. The surviving spouse will receive income from the QTIP trust until their death—after which the beneficiaries are entitled to the remainder.

Making the right estate plan revisions

All of the above strategies may allow your clients to exercise greater control over their estates following a divorce. If you have further questions about any of these strategies and how they may be able to help your clients, contact our experienced accountants at Smolin Lupin at any time.

And remember—involving an estate planning attorney during the divorce process can be crucial to the long-term success of the divorce agreement. Divorce requires holistic solutions, and the right partner can help you achieve them with the best interest of you and your clients in mind.

A Roundtable with Three AAML Presidents: What Family Law Firms Need to do to Prosper

AAML NJ Administrator — Tue, 08 Nov 2022 15:36:51 GMT

Panel discussion facilitated by Sharon L. Klein, Executive Vice President and Head of National Divorce Advisory Practice | Wilmington Trust | AAML NJ Bronze Sponsor

In a three-part video series hosted by Family Lawyer Magazine, Sharon Klein moderated a discussion among Cary Mogerman, Maria Cognetti and Peter Walzer. This powerful team provides insights on notable changes in the family law arena and offers their predictions on how the future of the practice may unfold.

Watch the videos to learn what family law firms need to do to evolve, adapt and prosper in the future.

Link to the videos here.

For more information, reach out to Sharon L. Klein at 212-415-0531 or sklein@wilmingtontrust.com.

Six Questions to Ask Your Potential Divorce Lawyer

AAML NJ Administrator — Tue, 01 Nov 2022 14:13:36 GMT

By Carolyn Daly, Esq. | Daly & Associates | AAML NJ 2022 - 2023 President

You have made the decision to seek a divorce, or to at least get advice about getting a divorce. You have the names for potential lawyers, but what do you ask them?

There are certainly more than six questions that you will want to ask, but these are a good start to help you in making a decision.

1. Do you specialize in divorce cases and what credentials do you hold?

When getting divorced, you want someone who has a lot of experience and hopefully specializes in divorce, particularly if you have complex custody or financial issues. You don’t want someone who is practicing in several different areas of law as they likely lack the depth of knowledge needed to handle your issues.

You also want someone who understands divorce is emotional so that they will work with you on emotional issues. They can also probably understand the emotions occurring on the other side of the case to navigate how issues are approached with them.

2. How will my case be handled in the office?

In some offices, one lawyer will be the only one working on your case. However, in most offices multiple attorneys and other legal staff (e.g. paralegals) will also work on the case. You want to be comfortable with your legal team and know who is working for you. Will the lawyer you consult with be at all court appearances? Is someone else going to handle scheduling or day-to-day questions so that you aren’t billed at the highest rate? Who will be drafting and reviewing documents? You will want to understand how the office works and, if you want the lawyer you are consulting with to be the only one appearing in court, you need to say that in the consult.

3. How do I communicate with the office and receive information on my case?

If you retain a smaller law firm, it may be that the lawyer or one secretary is handling all communications. In other firms, there may be specific communication guidelines – you may not be able to simply “walk in” to meet your attorney, but will need to schedule an appointment, or you may need to work with a paralegal or associate to try to resolve minor issues in your case. You will want to know who you can and should e-mail, text (unlikely), have a phone call with or come in person for a meeting. You also need to remember your attorney is handling other cases, so you should know the protocol for how quickly communications are answered. Having good communication with your lawyer will keep you de-stressed and will also help you clarify and define your goals with your lawyer.

4. How long does it take to get divorced and are there alternatives that might save time and money?

Most people ask this question multiple times during their case, but it is very hard to answer, especially post-COVID with the very significant shortage of judges that we currently have.

While the court’s “goal” is to have your divorce complete (including any trial, if necessary) within a year, that is definitely not the norm at present. In most counties, trials take well over two years, and some trials are paused completely. Knowing that, you will want to ask about what alternatives there are that might assist in getting the case, or certain issues, resolved sooner, such as mediation, collaborative divorce and arbitration to name a few. Find out all your options.

5. What is your retainer amount, the hourly rates for people working on my file, billing cycle and what happens when my retainer is exhausted?

Divorce can be very expensive so you want to understand what you need to pay to get started. And the “cheapest” lawyer may not be the best choice. You also need to know what each person working on your file charges per hour so that you can try to decide who you may need to speak to, or work with, at different stages of the case. You also want to know how often you will get bills so that you can keep track of your retainer and charges. Finally, you want to know what you will have to pay when the retainer runs out so that you can plan ahead.

6. Now that we have talked a little about my case, how would you approach it?

This person is going to be representing you and working with you to get you what you hope to achieve in the case. So, you want to know that the way they would approach your case, or certain issues aligns with your goals and approach. You may want a very aggressive lawyer, or one who takes the high road, or one who can be either, when necessary. You may be willing to compromise on certain issues to achieve favorable results in others and you will want to know if the lawyer would agree to approach it the way you do, or, if not, why not? You want to gain some insight into the lawyer and what it will be like working with them so that you can decide if that is a person you want to work with for the next year or more.

There is no right answer to any of these questions, but hopefully the answers help you make a decision on the lawyer you want to represent you as you navigate the difficult, often emotional issues in divorce. And it is why you should always consult with a lawyer before retaining them.

Getting Divorced? Better Create a Financial Plan!

AAML NJ Administrator — Mon, 17 Oct 2022 15:43:13 GMT

By Jonathan Blinken | Strategies For Wealth, AAML NJ Bronze Sponsor

Getting divorced can be a painful process. For many it can mean starting over. Unfortunately, that may include starting over financially. This can mean different things to different people - if one spouse was the primary breadwinner in a long marriage, they may be ordered to give a significant portion of their retirement plan to their spouse who focused on raising the children. This may cause concern over how they will support themselves in their twilight years. On the flip side, one spouse might have put their career on hold to raise the family and are now having trouble making ends meet, securing a job, and developing or restarting their own career. That’s why, from the moment you know you are getting a divorce, creating a viable financial plan is one of the most important things you can do. Of course, you can develop a plan and budget on your own, but it may be helpful to seek out professional advice from a financial advisor or CPA who specializes in helping people create their own financial plans, particularly in light of an impending divorce.

Budget Your Way To A Better Future

One of the first things you should do, once you know you are getting divorced, is create a budget with a focus on savings and investment. Remember, without a second income, you should recalculate your needs, and the ability to meet them, and make a reasonable prediction about your monthly cash flow. This may mean a significant change in lifestyle and habits. If you frequently dine at restaurants, you may need to begin to prepare more meals at home. You might need to explore alternative vacations, or a “staycation”, rather than lavish trips. Learning to live within a new set of parameters can be challenging, but it is crucial for your future financial success after a divorce. Create a budget, and stick to it.

Make sure you are aware of all your debts, and work on paying those down as quickly as feasible, particularly high interest rate credit card debt. Then, whenever possible, pay yourself first! Put as much as you can into a savings account for emergencies. Try to contribute monthly to either a retirement plan or an investment account that has well diversified investments to ensure continued and measured growth consistent with your risk tolerance. One of the easiest ways to accomplish this goal is to commit to automate deposits into savings, investments, a 401(k) or permanent life insurance. This eliminates obstacles or excuses that may present itself – or the temptation to spend on the next big thing or bright, shiny object, such as the latest consumer gadget. Building up a good nest egg and emergency fund is a critical step in creating a financial plan after a divorce.

Records And Reality

Keep detailed and accurate records of your current spending. This will be important as alimony, or spousal support, is considered. In many states, the amount awarded is dependent on numerous factors, including the needs of both the recipient spouse and the ability of the other spouse to pay for it. Depending on your personal situation, think carefully about how best to protect yourself. It is important to recognize both ex-spouses often end up with a lower standard of living, post-divorce, than they had when married.

When the division of real property is at issue, be realistic about what you can afford, and pick your assets carefully. Keeping the marital home is often a goal for one or both of the divorcing parties; however, the debt usually comes with it, and if you cannot feasibly afford the mortgage payments each month, you may need to walk away. Think about your short and long-term needs, and make smart decisions.

Don’t Make Emotional Decisions

Try not to get caught up in the emotions. One former client was heartbroken when her marriage to her husband of 30 years ended. The husband offered to give her a generous amount of money for several years as spousal support. She put her emotional pain aside, and sat down with a calculator and her advisors. They analyzed several alternative arrangements, and determined the one that best met her future needs.

While she was tempted by the initial offer, she negotiated for one-half of the couple’s rental property portfolio. Although she needed to pay property taxes, mortgages, maintenance, and insurance on the properties, at the end of the day this would earn her more than she would have received in spousal support, and ensured that her earnings were indefinite. You must be prepared to think long-term in your financial planning, which can often mean foregoing your initial emotional impulses.

Be Aware Of The Tax Man

Many of the financial decisions you make during a divorce can have tax implications. It is important to consult your accountant, or a tax attorney, to ensure that you make wise decisions. For example, it is common for one or both parties in a divorce to have significant assets in their qualified retirement plan. If a qualified retirement plan is divided in a divorce, it is important that the parties do not actually withdraw any money before age 59 1/2. Early withdrawal not only incurs penalty fees (usually 10%) but you will also be taxed at your ordinary income rate for the year that you take out the money, leaving you with significantly less than what you may need during retirement.

No Extravagancies During Divorce

Whatever you do, during a divorce, do not make any major financial purchases. Most states consider anything acquired during the marriage as community property – therefore, you could be forced to repay your spouse for your spending. Additionally, many courts impose injunctions, or orders preventing parties from spending money unnecessarily.

Another former client purchased a boat for nearly $50,000 during the divorce and attempted to keep it a secret. He thought he could get away with it, until he parked it in front of his house for a week. His wife got suspicious and asked for his bank records, where she found a monthly payment to a well-known boat dealer. That $50,000 boat cost my client an additional $25,000 in assets, because he wanted to fulfill his dreams before he was divorced. Patience is a virtue – wait until the divorce is finalized.

Play By The Rules

Always follow the court order. If you have been ordered to deliver property or execute documents to convey it, then you need to do so. If you have been ordered to pay attorney’s fees, then you must do so. Failure to follow a court order can have serious financial implications. The court can sentence the offending spouse to jail for contempt of court, which is not only embarrassing and uncomfortable, but could affect your ability to work. Your property may also be subject to a lien, meaning it is now secured by debts you owe to creditors. If you ever need to liquidate your property, the value will be diminished by the liens on top of it.

Invest In Yourself Post-Divorce

After your divorce is finalized, it is a great time to invest in yourself. You are beginning a new chapter in life. Think about what that means to you, and develop concrete personal and financial goals. For some, it might mean going back to school. For others, it may mean starting a business. Maybe you have always wanted a second home to rent out and increase your income. Whatever it is, find out how much it will cost to invest in you, and determine if it’s worth the money. If it is, come up with a financial plan to start saving and go for it.

Divorce is hard, no matter how amicable. Setting aside emotions and thinking clearly about your financial future is the most important thing you can do for yourself, and your children. Consult with professionals who are familiar with the financial implications of divorce, develop a financial plan, and have patience in achieving it. You may be starting over, but with planning and persistence you can build a strong financial future.

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Birdnesting During a Divorce or Separation – Share the Family Home, at Different Times

AAML NJ Administrator — Mon, 03 Oct 2022 17:52:27 GMT

By Our Family Wizard, AAML NJ Bronze Sponsor

What is birdnesting divorce?

When birdnesting after divorce or separation, the children stay in the family home—a safe and cozy nest—and the parents take turns living with them.

When one parent is staying with the kids, the other parent stays at another place, like a rented apartment or a family member’s house. Then they swap, and the other parent stays with the children while the parent who was with the kids before stays somewhere else.

“A short-term nesting plan is incredibly beneficial to children at the initial stages of a divorce or separation,” explains Elle Barr, an experienced family law attorney and a court-appointed guardian ad litem, or child welfare expert and attorney for children, for nearly 20 years.

Read the full blog post here.

The Ultimate Guide to Legal Software for New Jersey Family Law Firms

AAML NJ Administrator — Fri, 23 Sep 2022 17:36:43 GMT

By LEAP US, AAML NJ Silver Sponsor

New Jersey family law firms recognize the need to adopt technology to improve productivity, revenue, and overall client satisfaction. However, the legal technology market is growing with multiple offerings that can make it challenging for matrimonial lawyers to find the right solution that will improve law firm business practices. This article is the ultimate guide to legal practice productivity software for New Jersey family law firms and will answer the following questions:

What is legal software?
What are the benefits of legal software for New Jersey family law firms?
What does an all-in-one solution look like?

What is legal software?

Legal software helps matrimonial attorneys run and manage all aspects of their family law practice. These law firm software solutions can be a single, comprehensive, and integrated system or a collection of different systems with one goal: to help attorneys manage their law firm business and client needs. For family law firms, this would include centralizing contacts, documents, emails, and more in a single electronic matter and simplifying time recording for more frequent and accurate billing and invoicing. Other functions include managing, automating, and enhancing:

Business development and matter creation
Document assembly and management
Time recording on billable tasks
Trust accounting and bank reconciliation
Law firm reporting
And more

What are the benefits of legal software for New Jersey family law firms?

The right legal software will improve law firm productivity, efficiency, and profitability along with several other benefits. New Jersey family law firms that take advantage of legal cloud software technology also experience reduced overhead costs, less manual day-to-day work, better legal client services, and better financial management. Not only do these benefits improve law firm employee output but they also drive higher client satisfaction which improves business development. Additionally, New Jersey family law firms can reduce their risk of malpractice and noncompliance by implementing a solution that ensures the availability of up-to-date legal forms, elimination of data errors from multiple entries, and increased profitability with streamlined timekeeping, invoicing, billing, and trust accounting.

What does an all-in-one solution look like?

An all-in-one legal software solution should include everything legal professionals need to run a law firm including practice management, document assembly, legal accounting, and legal publishing. LEAP legal practice productivity solution includes all four aspects to support New Jersey family law firm’s daily operations.

Practice Management

LEAP enables matrimonial attorneys to manage their practice whether they are in the office, in court, or on the go and with a secure connection through Amazon Web Services (AWS). Remote accessibility for matter and case management means that lawyers can onboard legal clients, access files and documents, manage legal deadlines, capture more billable time, send invoices, and receive payments from anywhere.

Document Assembly & Management

New Jersey family law firms using LEAP can auto-populate forms and documents, with client information and commonly used clauses, with only a few clicks. This document automation starts by pulling details from electronic matters that are then filled into the correct document fields. This eliminates redundant data entry and potential errors that arise when manually keying in information. Update the client details once and use it for all legal documents and forms.

LawConnect integrates with LEAP so matrimonial attorneys and clients can share large files through a secure portal. Given the nature of family law matters, these extra security layers provide the needed protection to store, access, and share documents. LEAP makes it easy for matrimonial attorneys to collaborate with clients on documents and request e-signatures for filing.

Legal Publishing

Access to automated legal documents and matter types helps to reduce time spent on manual tasks and errors caused by duplicate data entry. LEAP offers access to legal forms and pre-built matter types for New Jersey matrimonial lawyers to eliminate hours of administrative work. The LEAP Content team ensures that all forms are up-to-date so that New Jersey firms can rest assured that they are maintaining compliance. Additionally, attorneys have access to the LEAP Clause Library to simplify and expedite the legal drafting process. Matrimonial attorneys can easily find and complete legal forms like Certificate of Insurance Coverage Pursuant to R. 5:4-f (LD-NJ-FAM-0025), Summons (Divorce) (LL-NJ-FAM-0123), Case Management Order (R. 5:5-7) (LL-NJ-FAM-0011), and Confidential Litigant Information Sheet (LD-NJ-FAM-0328). This tool helps save time and reduce potential errors from copying and pasting each clause.

Legal Accounting

Office and trust accounting are crucial functions to law firm success and compliance. LEAP makes it easy to generate invoices, manage retainers and trust accounts, and directly capture disbursements in the system to simplify compliance with IOLTA and New Jersey state bar rules with built-in office and trust accounting functionality. Law firm staff can use built-in time recording, legal calculators, and legal billing codes to make it easy for matrimonial lawyers to instantly capture billable time in a timesheet without starting or stopping a timer. LEAP also helps New Jersey family law firms make more invoices with customizable billing templates to create, edit, and send invoices. Additionally, Xero and QuickBooks Online integrate with LEAP to reduce redundant data entry and enable online payment options to improve client experience and get paid faster.

Conclusion

Legal technology is no longer optional if New Jersey family law firms want to remain competitive and experience longevity, productivity, and profitability. As the #1 legal practice productivity solution on the market, LEAP Legal Software offers all the tools matrimonial attorneys need in a single, cloud-based solution, including practice management, document management, legal publishing, and legal accounting. New Jersey legal professionals will have access to dedicated support teams, user feedback forums, and ongoing training resources to be up and running on LEAP in as little as two days. To learn more about LEAP and how it can benefit your New Jersey family law firm, schedule a demo today!

6 Top Tips for Clients who Remarry

AAML NJ Administrator — Tue, 20 Sep 2022 14:59:16 GMT

By Sharon L. Klein, Executive Vice President and Head of National Divorce Advisory Practice, Wilmington Trust, AAML Bronze Sponsor

Remarriage that results in blended or stepfamilies can come with challenges. As part of Wilmington Trust’s monthly tip series for Family Lawyer Magazine, Sharon L. Klein leveraged the celebration of National Stepfamily Day in September to share key strategies to help blended families live in harmony. Read Sharon’s 6 Top Tips to check your clients’ estate and financial plans reflect their evolving family dynamics.

Link to the article here.

For more information, reach out to Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com.

Divorce and Taxes: 6 Absolutely Critical Considerations To Get It Right

AAML NJ Administrator — Mon, 22 Aug 2022 17:45:05 GMT

By Jonathan Blinken | Strategies For Wealth, AAML NJ Bronze Sponsor

Divorces are major undertakings. Dividing up jointly owned property and assets, managing custody arrangements for children, and exchanging payments of alimony or child support can all have a significant impact on your life – both emotionally and financially. You should consult a family law attorney for their expertise in divorce matters, however, it is important to recognize that they may not possess expertise regarding tax implications impacting their divorcing clients. Hiring a financial planner in addition to your legal counsel will help you properly address the tax consequences of proposed divisions of property or alimony payments.

1. Alimony is poised to transform divorces in 2019.

Alimony is traditionally fraught with complications and often, resentment. State laws vary widely concerning calculations of alimony, and whether or not one of the parties is eligible. But the federal tax laws have been clear for at least 75 years, easing the pain for at least one party: the paying spouse was allowed to deduct their payments, while the receiving spouse had to account for alimony received as income. But starting Jan 1, 2019, this certainty is gone. The Tax Cuts and Jobs Act, passed in late 2017, has abolished the principle, meaning the payment of alimony is no longer deductible, and the recipient no longer has to pay taxes on it. This makes it more akin to child support payments, where the obligor cannot deduct, and the recipient is not taxed.

The law will apply to divorces finalized in 2019, so divorces finalized before that day will be ‘grandfathered' into the current regime. Still, most family law professionals are apprehensive. Previously, at least the paying spouse had the benefit of deducting this payment, which helped push negotiations along. Now, without any incentive, divorces might be messier, longer and ultimately, more expensive. The recipient spouse might be less able to use the alimony money in retirement accounts like IRA’s, which require payments to be made from taxed income. While there are still many questions about the full extent the tax cuts will have on alimony and divorce, a qualified financial planner can help mitigate any problems stemming from the changes in the law.

2. Know how you will be filing your taxes during and after the divorce.

Most people assume that if you are married for part of a year, you will have to file taxes as married. But, if your divorce is finalized in that year – even on the last day – then you are free to file taxes as a single person. Additionally, you can still file as a couple, but that often does not make sense financially. If one spouse files as head of household, for example, they might receive a boon in tax savings. But, you would have to live separate and apart at least six months, and pay more than half of the costs to the household. The other spouse would have to file single.

3. Understand that the division of assets carries significant tax implications

Divorcing couples need to worry about the actual value of their debts and assets when they begin dividing up their estate. But many assets can affect the tax liability of each party. First, married couples receive a relative windfall on their principal residence if they decide to sell – up to $500,000 gain on their principal residence without incurring a tax liability. Of course, once divorced, then each party can only realize $250,000.00 in the event of a sale. If one party is awarded the property, then they might be entitled to use the mortgage interest deduction. This is only attractive if the house still has an outstanding mortgage, which might not be the case for long-term couples.

4. Lingering taxes after divorce

Wealthy couples or individuals who are self-employed might have to pay estimated taxes, sometimes resulting in an overpayment of taxes owed. If a couple filed a joint tax return in previous years, and the overpayment of tax was applied to any tax owed the year of the divorce, then any overpayment is equally allocated between the spouses. Each gets to benefit from the overpayment, even if one spouse earns significantly more than the other. The same concept applies to joint tax returns filed during the marriage if taxes are still owed. However, courts do have the discretion to determine whether or not one party is assigned the existing liability during the division of property.

5. You need to figure out which parent can claim the child’s tax dependency, or you will be subject to the default rules.

Only one tax return can claim each child on the dependency exemption. If the divorce decree assigns one parent as the primary custodial parent, then by default, this parent will get to use the tax dependency exemption. Generally speaking, the custodial parent is the party who has had actual possession of the child the longest. Courts will be allowed to approve agreements between the parents who might alternate which parent claims tax dependencies each year. For families with multiple children, some parents might agree, for example, that each parent can claim one child in a family with two children. By claiming the dependency exemption, parents stand to benefit from other benefits, like the child tax credit or various education credits. If you have questions about the implications of a divorce on child tax dependencies, it is best to seek out a qualified financial planner in addition to your family lawyer.

6. Retirement accounts have some of the biggest tax penalties if handled wrong.

For long-term marriages, retirement accounts are often the largest assets to be divided up. If done inappropriately, it can carry a tax penalty as well as an early withdrawal penalty, decimating the account. Therefore, for many retirement accounts, like 401(k)’s, if the parties choose to divide the funds, they must be done through a qualified domestic relations order (or QDRO). These essentially allow one party to ‘roll over’ their retirement savings to another without the IRS treating it as a taxable distribution.

If you are in the middle of a divorce, you should seek out expert guidance for every aspect – both legal and financial. Contact a qualified financial planner who can give you comprehensive and competent guidance through the many tax issues associated with a marriage dissolution.

Jonathan Blinken is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Strategies for Wealth is not an affiliate or subsidiary of PAS or Guardian.Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2018-59852 Exp. 5/20.

Determining Appropriate Child Support in Above-Guidelines Cases

Tue, 02 Aug 2022 15:11:19 GMT

By Jeralyn Lawrence | Law Law Firm, AAML NJ Immediate Past President

In New Jersey, child support guidelines were established to ensure consistency in child support awards and to provide courts with the financial information needed to issue appropriate child support orders. The guidelines provide a framework for courts to use when making child support determinations for people whose incomes fall within the guideline amounts. Currently, the child support guidelines apply to parents with combined net incomes ranging from $8,840 per year to $187,200 per year.

While judges can deviate from the guideline amounts to account for a child's extraordinary needs, most child support decisions typically adhere to the guideline amounts. However, the determination of appropriate child support amounts differs when the parents have a net combined income exceeding $187,200 per year. Here is how courts make child support determinations when the parents' incomes are above the child support guidelines.

Understanding the New Jersey Child Support Guidelines

The New Jersey child support guidelines were initially adopted in 1986 and can be found at Child Support Guidelines, Pressler & Verniero, Current N.J. Court Rules, Appendix IX-A to R. 5:6A (2017). They were established following the federal government's passage of the Child Support Enforcement Amendments, which are codified at 42 U.S.C. § 651. These amendments provided federal matching funds to help states enforce child support orders. In 2007, the guidelines were amended to cap combined parental net income at $187,200.

Under R. 5:6A, the child support guidelines provide a rebuttable presumption that the appropriate child support order should be the guideline amount. However, courts can deviate from the guideline amounts for good cause when the guidelines are inappropriate in a specific case. When New Jersey courts deviate from the guidelines, they must specify their reasoning for doing so per the decision in Ordukaya v. Brown, 357 N.J. Super. 231, 241 (App. Div. 2003).

Above-Guidelines Cases

While the guidelines provide a rebuttable presumption of child support for parents whose combined net incomes fall within the guideline amounts, they do not address couples with net incomes exceeding the maximum income contemplated by the guidelines. While some people might believe that they can simply extrapolate the child support amount by using a similar factor as what is used under the guidelines, courts have held that such an extrapolation is inappropriate.

In Walton v. Visgil, 248 N.J. Super. 642 (App. Div. 1991), the court found that extrapolating the guideline calculations to parents with high incomes is inappropriate. Instead, courts should take into consideration both the child's basic support needs and any extraordinary expenses to determine the appropriate amount to award.

In many divorce cases involving children with high-net-worth parents, child support issues typically turn on the children's extracurricular activities and extraordinary expenses. Courts recognize that children with high-income parents deserve to share in their parents' good fortune and to enjoy a standard of living in line with that. In Zazzo v. Zazzo, 245 N.J. Super. 124 (App. Div. 1990), the court noted that these types of additional expenses often exceed what might be contemplated as a part of the basic support obligation.

Several types of additional expenses that might be considered under the decision in Isaacson v. Isaacson, 348 N.J. Super. 560 (App. Div. 2002) include the following:

Private school tuition
Private tutoring
Summer camps
Art/music lessons
Vacations
Sports camps
Clothing/incidentals for teenagers
Insured vehicle for teens who drive
Costs for studying abroad
Home renovations for the primary custodial parent to have a more presentable home for the children
Establishment of a trust for the children to share in the high-income parent's good fortune beyond a 529 plan

The child support award should be determined by the child's interests rather than by the parent's interests. The determination is also case-specific and can vary based on the circumstances of both the child and the parents. For example, in Loro v. Del Colliano, 354 N.J. Super. 212 (App. Div. 2002), the appellate court remanded the case to the trial court to determine the extent of appropriate home renovations. However, it did uphold the trial court's award of cellphone costs for the child and the cost of Philadelphia Flyers season tickets.

If a child is attending college, other considerations will be important, including the location and cost of the school, the child's tuition, books, and housing expenses, any scholarships that might have been awarded, and any expenses the parents have been providing for to the college-aged child for transportation, cellphone bills, entertainment, and others.

In many cases, divorce attorneys will begin with the child support guidelines as a basis. However, instead of extrapolating the guidelines amount from $187,200 up to the amount of the parents' combined net income, the calculation will instead be case-specific and include consideration of all of the extracurriculars and extraordinary expenses of the child in light of the high-income parent's good fortune. It should be noted that an award of child support should not be used as a substitute for spousal support.

If a parent's spousal support ends, the court will not modify the child support amount higher to replace it, but the end of alimony may trigger a review of child support. Even for high-income parents whose incomes exceed the child support guidelines, child support is meant to provide the child with the standard of living appropriate for his or her position as a child of a high-income parent instead of enabling the lower-earning spouse to enjoy a higher-income lifestyle.

Conclusion

Determining the appropriate amount of child support for above-the-guidelines cases can be complex. Attorneys should always try to negotiate reasonable amounts on behalf of their clients that take into account all of the child's extraordinary and extracurricular expenses. In most cases, mediation or the collaborative process might provide a way for parents to reach a decision outside of an expensive court battle. In most cases, families are happier when they can reach a negotiated agreement rather than leaving the decision up to the court. Focusing on the best interests of the child and meeting the needs of the child generally leads to a successful resolution.

Things New Jersey Family Law Firms Need to Look for in Cloud Software

AAML NJ Administrator — Tue, 26 Jul 2022 17:26:52 GMT

By LEAP US | AAML NJ Silver Sponsor

New Jersey family law firms already recognize the need to move their operations into the cloud to avoid the mishaps that come from manual and paper-based processes. Moreover, the cloud offers several benefits to law firms like streamlined tasks to improve employee outputs, reduced data errors, increased profit margins, reduced noncompliance, and enhanced security. In fact, 31% even said that they trust cloud solutions over their on-premises systems for increased security, according to an American Bar Association survey. However, it’s often difficult for matrimonial lawyers to identify the right cloud technology for their firm and what characteristics make up a “good” cloud-based legal software.

Here are three characteristics New Jersey family law firms should look for when purchasing a cloud solution.

1. Legal Expertise

Law firm staff need to trust that the software provider they select genuinely understands the needs, complexities, and nuances of New Jersey family law practices. While engineers are experts at understanding and building software that looks and runs great, if they don’t have the industry expertise for the solution they’re building, it won’t truly address the needs of its users. The legal industry especially poses its own challenges as family law and New Jersey regulations, forms, and processes constantly change.

Software providers like LEAP avoid this by employing the top legal talent needed to update common family law forms and templates across New Jersey jurisdictions, address current and emerging challenges legal professionals face, and ensure that all users get value from the software, regardless of their role in the firm.

LEAP offers 11K+ forms and 2.5K+ pre-built matter types, including Summons (Divorce) (LL-NJ-FAM-0123), Certification of Insurance Coverage Pursuant to R. 5:4-f (LD-NJ-FAM-0025), and Case Management Order (R.5:5-7) (LL-NJ-FAM-0115), that are regularly updated for users to reduce double work and maintain compliance for users. Additionally, LEAP is a product of constant innovation and technology advancements based on legal technology trends and direct user feedback to solve common issues faced by family law practitioners that cost them time and money across the business. That’s why the first thing a firm should look for when purchasing legal software is if the company is using legal industry experts and customer feedback to build its solution.

2. Comprehensiveness

The second characteristic law firms need to look for in legal software is the comprehensiveness of the platform. Many software solutions only focus on one or two problem statements and don’t address all the challenges a family law firm faces in its daily work. These niche solutions lead to only partially digitized firms, select users having access to information and advanced technical skillsets, and high technology spending as firms invest in multiple solutions over time to address specific challenges.

A comprehensive cloud solution creates a more productive firm with all team members accessing the same real-time information and updates to improve efficiency so more time can be spent on taking new clients, billable work, and better legal services. This also helps law firms reduce technology spending with one solution that immediately positively affects the firm’s bottom line. LEAP is the leading, comprehensive legal practice productivity solution for New Jersey family law firms and allows them to have practice management, legal accounting, document assembly and management, and legal publishing in a single solution. The LEAP implementations team can get firms onboarded in as little as two days to start taking advantage of a one-stop productivity solution.

Another benefit is that law firms can foster their employee’s growth through new skillsets. As law firms continue to see growth, it means that law professionals have more options to find an organization that will support their career growth. If all staff members can use the same platform, the firm can then support them in training and developing new skill sets to support their career development and potentially identify new skills or areas of expertise.

3. Scalability

At its core, cloud software naturally lends itself to scalability as firms can use resources as needed instead of having to over-purchase on-premises software or risk the chance of being under-resourced by purchasing only what they need at the time. However, not all legal software is built to address growing family law firms.

Family law firms may expand the areas of law and regions they practice in to grow their reach and potential client base. An excellent legal software solution will be built to address the varying regulations, processes, and forms that are used across different areas of law and regions. If that flexibility is not offered, law firms that want to expand will outgrow the software and run the risk of malpractice and cause permanent damage to their reputations and the future careers of their staff. Additionally, a cloud solution will need to enable organization across the firm to avoid creating confusion across team members due to a lack of transparency when it comes to up-to-date information, forms, and communication internally and with clients.

The software provider should also offer law firms ongoing support as they grow and evolve to get the most out of their partnership. For example, LEAP offers a dedicated Practice Management Advisor, online help cent ers, and ongoing training and webinars for new features or releases that law firms may need to use as they continue to grow. It is difficult for law firms to bring on and train new staff members on solutions and processes when this level of support is not offered.

Conclusion

With so many legal software solutions on the market, New Jersey family law firms are faced with a difficult choice to narrow down which solution is right for them. Whether a firm only has a sole practitioner or a full team, it’s critical to identify the right cloud solution by ensuring that the provider offers the expertise, comprehensiveness, and scalability needed for the firm to have long-term success and scalable processes. In addition, once a firm implements a fully encompassing cloud solution, it can solve current and future roadblocks to improve productivity, profitability, security, compliance, and client satisfaction across the business.

Ready to bring your firm into the cloud to improve productivity, communication, collaboration, and profitability? Schedule a demo of LEAP to see why over 61,000 global legal professionals made the switch.

Intrastate Relocation: The Standard and Burden of Proof

AAML NJ Administrator — Wed, 20 Jul 2022 13:24:52 GMT

By Jeralyn Lawrence | Law Law Firm, AAML NJ Immediate Past President

New Jersey courts previously analyzed divorce custody relocation cases differently, based on whether they were intrastate or interstate. Intrastate relocations of the parent with primary physical custody did not require that parent to file a motion with the court for permission to move the child. Instead, the other parent had the burden of proof and was required to file a motion objecting to the primary parent's move. By contrast, a primary parent who wished to move out of state had the burden of filing a motion with the court if there was a disagreement. While this difference between who has the burden in interstate and intrastate relocations has not changed, divorce lawyers should consider factors courts consider when analyzing divorce custody relocation cases have. In both types of relocations, courts now analyze them under the best interests of the child standard following the New Jersey Appellate Division's decision in A.J. v. R.J., 219 A.3d 579 (App. Div. 2019).

Historical Treatment of Relocation Cases

The New Jersey court had previously treated interstate and intrastate relocation cases differently. Relying on social science research, the New Jersey Supreme Court established 12 factors to consider when determining whether to allow an out-of-state relocation in Baures v. Lewis, 167 N.J. 91 (2001). Following that decision, the court gave more weight to the primary parent and would generally allow them to move out of state if good cause for the move was demonstrated.

In Schulze v. Morris, 361 N.J. Super. 419 (App. Div. 2003), the Appellate Division distinguished between interstate relocations like in Baures and intrastate relocations in which a primary parent relocated to a new city or county within New Jersey. Under the Schulze decision, the court did not consider intrastate relocations to be true relocations. The primary parent who wanted to move was thus not required to file a motion to relocate with the court. Instead, the alternate parent had to file a motion to oppose the primary parent's intrastate relocation with the court and present evidence that the relocation amounted to a substantial change in circumstance that was contrary to the best interests of the child because of the change in the alternate parent's parenting time with the child. If the parent could show that, the court would then consider the Baures factors.

The New Jersey Supreme Court overturned its decision in Baures for interstate moves in Bisbing v. Bisbing, 230 N.J. 309 (2017), holding that courts must apply the best interests of the child factors found in N.J.S.A. 9:2-4(c) to interstate moves instead of presuming that such a move was better for the child. However, while this decision made it clear that the best interests of the child standard was to apply to interstate relocations, the Supreme Court did not address intrastate relocations. This question remained until the New Jersey Appellate Division's decision in A.J. v. R.J(commentary) in 2019.

Standard for Intrastate Relocations Under A.J. v. R.J.

In A.J. v. R.J., the mother, who had primary residential custody, moved her child more than 60 miles away from the father's residence but remained in New Jersey. She did not ask for permission from the court or the father. The father filed a motion opposing the relocation, and the trial court issued an order to the mother to move back and live within 15 miles of the father's home so that the father's parenting time with his child would not be disrupted. However, the mother refused. The father filed a motion with the court to transfer custody of the child to him because of the mother's contempt of the court's order.

The Appellate Division reversed the lower court's transfer of custody, holding that the trial court relied on Schulze when making its decision. The Appellate Division pointed out that Schulze, which dealt with intrastate relocations, had relied on the Baures factors. Since the Baures case was overturned by the New Jersey Supreme Court, the Appellate Division found that the factors no longer applied. Instead, the Appellate Division held that the best interests of the child factors in N.J.S.A. 9:2-4(c) must be considered to determine whether an intrastate relocation is in the child's best interests.

While this decision means that both interstate and intrastate relocations now must be analyzed according to what is in the child's best interests instead of giving a presumption that the primary residential custodian's choice to move will likely increase the child's happiness, there is still a difference in which parent has the initial burden.

In interstate relocation cases in which a primary parent wishes to move with a child out of state, the parent wishing to move must seek permission from the court by filing a motion to relocate. He or she will then have the burden of proving that the proposed relocation is in the best interests of the child before the court will permit the move.

By contrast, in intrastate relocation cases, the primary parent does not have to ask the court's permission before moving with the child within New Jersey. Instead, it remains the other parent's burden to file a motion in opposition to the relocation, and he or she must also present evidence showing that the intended move is inimical to the best interests of the child in order to prevail.

Conclusion

While it is good that both interstate and intrastate relocation cases are now analyzed under the best interests of the child factors, the difference in who has the burden of proof in interstate vs. intrastate relocation cases seems somewhat arbitrary. For example, if a primary parent decided to move to New York City from Bergen County, New Jersey, the moving parent would have the burden of proof even though the relocation would be relatively close to the alternate parent's residence.

If the same parent decided to relocate across the state of New Jersey from Bergen County to Cape May, but remained within the state, the other parent would have the burden of proof regarding that move. Regardless of which parent has the burden of proof, the parent must present evidence about what is in the child's best interests whether the proposed relocation is interstate or intrastate.

What is the American Academy of Matrimonial Lawyers and Why Should You Hire One of Their Fellows?

Fri, 01 Jul 2022 17:04:42 GMT

By Carolyn Daly | Daly & Associates, AAML NJ President

As I am sworn in as the President of the New Jersey Chapter of the American Academy of Matrimonial Lawyers, it occurs to me that many people may not be aware of the American Academy of Matrimonial Lawyers (AAML) and who we are. The AAML is a national organization with chapters in most states. There are approximately 1,650 Fellows in the United States and 52 Fellows in New Jersey. The AAML is dedicated to providing and promoting the highest degree of professionalism and excellence in the practice of family law. To be represented by a Fellow of the American Academy of Matrimonial Lawyers is to be represented by a leading practitioner in the field of family law.

To achieve this goal, admissions standards require that an attorney wishing to become a Fellow must have been practicing for at least ten years and at least 75% of the applicant’s practice must be devoted to family law. The attorney must also be a member in good standing of the state bar. Applicants must demonstrate substantial involvement in the area of matrimonial and family law, beyond just their firm. They do this by teaching, lecturing, serving as court appointed guardians ad litem, serving as mediators and authoring articles on family law.

All Fellows must be able to competently handle complex family law cases and have substantial trial experience. However, AAML fellows must also be able to settle cases when appropriate.

Importantly, Fellows in New Jersey must also be certified by the New Jersey Supreme Court as a Matrimonial Law Attorney (a designation that only approximately 2.5% of New Jersey attorneys possess). Finally, Fellows must take and pass a National Exam given by the National Academy.

Why is any of this important for you and your family law case? Simply put, those who successfully obtain membership in the AAML have devoted themselves to the practice of matrimonial and family law. Many of the Fellows are involved in making or changing laws involving divorce and families in New Jersey. Others are mediators and certified arbitrators who assist families in resolving disputes outside of court. Family law is a complex and high-stakes area of law that often becomes emotionally charged. Contested family law cases often involve the care and custody of children, alimony, child support, life and health insurance, financial protection, and the division of assets such as a business, the family home(s), stock options, restricted stock units, retirement accounts, Bitcoin, NFTs and other assets. To make decisions on these issues you need sound advice from someone who is specialized in the practice of family law. You wouldn’t have just any mechanic service your 1967 Austin Healey. Having a Fellow as your attorney, you know you have a lawyer who has specialized in divorce and family law who can handle any range of complex issues and who will help you to arrive at a fair and equitable solution so that you can move on with your life.

Carolyn N. Daly is a Fellow and current President of the New Jersey Chapter of the American Academy of Matrimonial Lawyers. She is the Founder and Managing Partner at Daly & Associates in Morristown, NJ and has been practicing family law for more than 25 years. Carolyn’s practice includes complex matrimonial cases, mediation, arbitration, and much more.Visit www.dalyfamilylaw.net for more information on her practice and the AAML.

No aspect of this advertisement has been approved by the Supreme Court of the State of New Jersey.

Custody Battles Can be Fierce… Over the Pets! Protect Pets in Marital Agreements

AAML NJ Administrator — Wed, 08 Jun 2022 11:31:29 GMT

By Sharon L. Klein, Senior Vice President and Head of National Divorce Advisory Practice | Wilmington Trust, AAML NJ Bronze Sponsor

Pet custody issues are real! As part of her monthly tip series for Family Lawyer Magazine, Sharon L. Klein leveraged May’s National Pet Month theme to share how proactive planning can help prevent heartache by ensuring that pets are properly cared for, whether a couple stays together or not.

Link to the article here.

Let’s Talk About… Summer 2022

AAML NJ Administrator — Wed, 01 Jun 2022 12:22:00 GMT

By Lesnevich, Marzano-Lesnevich, O'Cathain & O'Cathain

It’s finally spring: tulips are blooming, baseball is back, and spring break is now in the rearview mirror.

Which makes it the perfect time to talk summer ’22.

Long, lazy days of sunlight and surf, ice cream and watermelon—everyone loves summer! Memorial Day weekend is on the horizon (seriously, we’re less than two months away…), and then June, with the end end of the school year. Before you know it’ll be July 4th weekend, and we’ll be deep in the heart of suntan lotion, rose, and let’s-just-throw-something-on-the-grill and stay outside. In other words, our favorite season.

If you’re separated or divorced, what do you need to do now—while we’re still in spring, while there’s still time to do it—to get ready for summer 2022? Here are four steps to take:

Talk to your co-parent about what the children’s summer will look like—now is the time. While it’s undoubtedly most children’s favorite season, it’s often parents’ least favorite season, because with summer comes many, many questions: are the children going to camp? (And if so, is it sleepaway or day? And for how long?) If the children are not going to camp, or they attending recreational sport or day-camp put on by the town or a local youth group? Who is the primary caregiver for the children day-to-day, when they don’t have to be at school for the morning bell? Are you (and, potentially, your current significant other) taking the children on a summer vacation somewhere? Who has custody of the children for which summer holidays? Put simply: what are we going to do all day?!

All these questions are best addressed now. Schedule a time, whether over the phone or over a cup of coffee, to sit and civilly address all these questions with your co-parent. Bring your calendar, your daybook— whatever you use to schedule your busy life. By creating space now to do it, you’ll be able to handle emergencies down the road. For instance, if a plan falls through because of work or a family emergency, you can consult your calendar and adjust, knowing you put in the time prior to be able to do so.

Be honest with yourself and your co-parent about what you can afford. Summer fun, while awesome, adds up quickly! Vacations, souvenirs, surf lessons; trips to the beach or the boardwalk— this all costs money, to say nothing of camp costs these days. Talk with your co-parent: is there a way to make one week special? One day special? (A great summer memory could hang on that one mid-week trip to Six Flags Great Adventure. Not in the budget this year? The zoo, an ice cream parlor: anyplace you don’t normally go can go a long way in creating a great summer memory.) If you can, keep a couple bucks on you at all times— you never know when the sound of the ice cream truck may be heard in your neighborhood.

No matter the budget, look at local library programs, town events (a lot of towns have free outdoor concerts and/or movie screenings this time of year) and other free or free-ish activities to fill those long summer days.

Get in touch with your inner child this summer. Separation or divorce takes a toll. Whether it’s running through the backyard with a water gun or making sure you get an ice cream cone as well, be sure to treat yourself with kindness this summer. Be goofy, be silly, be kid-like… it’ll connect you more with your child, and with summer.

Get creative about creating summer memories. We talked above about spending some money to create a great summer memory. However, as most parents know, it’s not really about the money, it’s about something more precious: the time. Putting in the time to be with your child—whether by creating a summer scavenger hunt, a DIY picnic or simply setting up the sprinkler in the lawn and taking that box of ice-pops out of the freezer—is what summer is all about. And looking back on it what your child will remember is you taking the time to create a summer memory with them.

Everyone at our firm hopes you and your family have a safe and amazing summer, creating summer 2022 memories that last a lifetime!

No matter the season, divorce is hard (and, with all the extra family time, summer may be one of the hardest times). If you need help, reach out to Lesnevich, Marzano-Lesnevich, O’Cathain & O’Cathain, LLC: (201) 488-1161.

Originally published on April 22, 2022. Link to the original article here.

You Decided You Want To File…Now, What? How to afford to divorce your spouse

AAML NJ Administrator — Mon, 23 May 2022 12:58:18 GMT

By Lesnevich, Marzano-Lesnevich, O'Cathain & O'Cathain

Divorce is expensive. While there is, of course, an emotional toll, there is also a heavy financial toll for which many clients are not prepared. This is a problem not only for clients but also for the divorce lawyers and experts representing them. Even under the best circumstance, divorce is difficult and costly.

Options when you can’t afford a divorce

In a perfect world, both spouses have money set aside, though, in reality, people save for weddings, not divorces. While it would be wonderful if both spouses got along and could agree on how assets should be divided, unfortunately, this is not always the case. It is important for clients to know about options they have to fund their divorce.

Application To The Court

As an alternative to saving, the moneyed spouse could be ordered by the court to pay both sides’ legal fees and expert costs, but even getting to motion practice can be expensive and time-consuming. Not to mention, there are no guarantees the client will be awarded fees. Further, many judges defer a decision on fees to the end of the case.

Credit Cards

Putting the cost of a divorce on a credit card is another option, but for many, the credit card limit would not meet the cost of the legal fees. Additionally, interim payments have to be made which may not be possible for some clients (and please know that low credit scores may prevent a spouse from being eligible for a credit card after the divorce).

Home Mortgage

Clients sometimes look to a bank to refinance the marital home to help pay for their divorce. Litigants may pull equity from a house in order to pay for interim support and legal fees until a divorce is final. Home equity loans can take many months to be approved, and the loss of a home can threaten custody battles. On the other hand, lenders may not approve clients during a divorce, causing a variety of roadblocks to a divorce. Sometimes couples going through a divorce don’t know where to turn.

Divorce Funding

For many couples, one spouse has easier access to their combined wealth. Oftentimes the monied spouse will cut off access to funds by the non-moneyed spouse entirely, a court will freeze assets, or assets are not liquid. Divorce funding provides a cash advance of the client’s potential settlement for legal fees, expert costs, and living expenses. It “levels the playing field,” enabling litigants to afford their attorney and expert fees, while maintaining their standard of living. Repayments are not made until a settlement is reached and cases can be funded in as little as two weeks. Divorce funding provides access to this essential capital.

Clients may not have the liquidity to engage in divorce proceedings and simultaneously afford living expenses, such as mortgage payments, school tuition and other personal costs during the proceedings. These expenses are sometimes used as leverage by the moneyed spouse, forcing clients to agree to an inequitable settlement. With the liquidity of divorce funding, no one is forced into a settlement less than they deserve.

Nicole Noonan, Esq., CEO of New Chapter Capital Inc., specializes in divorce funding. She formerly served as President of Novitas US. She is a nationally recognized divorce expert and pioneer of divorce funding. Crowned the “Fairy Godmother of Divorce” by the New York Post. Formerly President of National Divorce Capital, prior to which she was Director at BBL Churchill.

Originally published on March 25, 2020. Click here for the original article.

Our Ultimate Guide to Buying Your First Home

AAML NJ Administrator — Fri, 06 May 2022 13:17:36 GMT

By Marc Demetriou, SVP of Mortgage Lending/Branch Manager | AAML NJ Gold Sponsor

As a member of the AAML, you know firsthand that your divorce clients face many new challenges as they rebuild their lives. We’re here to help. At Guaranteed Rate, we understand that purchasing a new home could be an overwhelming task. Our 67-page FREE guide has everything your clients need to know about purchasing a home. Written specifically to help first-time homebuyers, this instructional ebook will take your clients through the home purchasing process, step-by-step. Our Ultimate Guide to Buying Your First Home is an essential reference source for any homebuying questions that might crop up along the way and can save your clients time and money on their journey to homeownership. Download this guide today.

Click Here. It's Free.

Tips to Work Effectively With Your Divorce Attorney

AAML NJ Administrator — Mon, 02 May 2022 15:00:00 GMT

By Lesnevich, Marzano-Lesnevich, O'Cathain & O'Cathain

Divorce is a difficult process which can be emotionally draining and exhausting for all parties involved. While the divorce process may feel like it consumes your life from the very beginning, there are practical ways that can assist you to work with your attorney to streamline the process as much as possible and make the process feel less overwhelming. In order to ensure that you can resolve your matter as expeditiously as possible follow these seven tips on how to effectively work with your attorney during your divorce.

#1: Read and reread correspondence from your attorney: When you see an email from your attorney that appears lengthy, it can be intimidating and daunting, but sometimes lengthy correspondence from your attorney contains vital information and legal advice that it is important to your case. Even if you discuss the same information with your attorney over the phone, it is in your best interest to actually read all correspondence from your attorney as well. It is often difficult for litigants to retain all of the information about the law that they are given, which is why if legal advice is written, it is easier for litigants to reread the correspondence at a time that they are able to understand and emotionally process the information.

#2: Provide your schedule: Although the divorce process can feel like an all-consuming venture, attorneys understand that you have your own life and responsibilities. We acknowledge that you may have children to care for or an occupation that takes a majority of your time. We also acknowledge that you have holidays, vacation time, and travel plans. It is best to let your attorney know about your schedule, your feelings and your time-table. If you have a huge project at work, upcoming travel plans, business trip for work, your children’s spring break, or really anything that means you cannot concentrate on your divorce, try to make sure your attorney knows that. Sometimes litigants have other ongoing problems in their lives and simply cannot emotionally handle what is occurring in their divorce. If you advise your attorney you will not be available – physically or mentally -for a certain time, your attorney will be respectful. However, if you do not let them know, then they may continue to ask you questions regarding your position, how you want to proceed or follow up on documents they have been seeking. To make sure you and your attorney are on the same page, just make sure your attorney knows when you will not be available.

#3 Be Responsive: During your divorce, if you and your attorney are working to expeditiously resolve your manner, and it is not one of the times you are unavailable discussed above, then try to be as responsive as possible when your attorney or their firm contacts you. In being responsive, it is less about an immediate response and more about providing a complete answer. Often immediate responses do not directly answer the attorney’s question and means the attorney will need to ask more questions to obtain the necessary information. Answering your attorney as completely as possible means that your attorney will not have to continually re-ask and follow up on the same question. This will make the communication between you and your attorney more efficient, which also means less costly.

#4 Be Transparent: While you should be answering your attorney’s questions as completely as possible, you should also make sure you are providing them with all of the pertinent information – the good, the bad and the ugly. Your attorney can only properly advise you of how you should proceed if the attorney knows ALL the facts – even if you believe some information is unfavorable or embarrassing. In order to properly protect you and your interest, the attorney needs to know the potential issues that could arise. Attorneys know how to represent you even if you have had some unflattering past transgressions. Therefore, it is best to be candid and straightforward with your attorney. Your attorney will not think any less of you, but if something you hide from your attorney becomes an issue later, it could cause a strain on your attorney-client relationship.

#5 Keep Your Attorney Informed: During the divorce process, and often during post-judgment litigation (i.e. you are already divorced), there are usually ongoing problems festering between the parties. The problems can sometimes be resolved through a quick letter or a quick conversation between attorneys, but if there is an ongoing problem that needs Court intervention, then it is better if your attorney is already aware of the ongoing issues. If Court intervention is necessary and your attorney is already aware of the issues, then you and your attorney will not need to spend extra time and energy playing “catch-up” on the events that occurred over the past few weeks, months or even years.

#6 Keeping Logs: Regardless of the issues in your case, it is always a good idea to keep a log of what is occurring between you and your spouse or former spouse. While it is suggested to keep your attorney informed of what is going on (see #5), it is easier for you than your attorney to keep a log of events and to compile documentation, such as text messages or emails, that demonstrate what transpired and is outlined in your log. It is your daily life. No one can monitor it as well as you can – especially as the events are occurring. A log of events is often seen in cases where there are parenting time issues such as missed parenting time, interference with parenting time, late pick-ups or drop-offs, missed extracurricular activities, etc. If you keep a log of these events, that log can be used to demonstrate the problems that keep occurring and how often the problems occur. These logs are often utilized as critical exhibits in motions. For financial issues, if there are arguments or conflicts with payment of regular expenses, it is good to keep track of when those incidents occur. (i.e. On March 10th he removed money from the savings account without notifying me. On April 8th she refused to allow me to use our joint account to pay the mortgage.) As previously stated, you should be keeping your attorney aware of these problems as they are occurring to strategize on the best way to handle the issues, but if you have a log of events that log can be helpful to your attorney who is advocating on your behalf.

#7: Listening/Reading Legal Advice: In conjunction with Tip #1 above regarding reading and rereading correspondence that you receive from your attorney, it is important to acknowledge and understand that the advice your attorney provides to you is just that: advice. Your attorney works for you and is there to provide you with insight into the law and how your case could be resolved. The best way for you and your attorney to make strategic decisions about your case is for you to understand their explanations about the current law. When an attorney tells you what the law is and how it could affect your case, try to understand that the attorney did not make the law and may not even agree with how the law is applied. When explaining the law, the attorney is not making personal judgments about you, your marriage or your children, but advising you of your options under the current law. Accept that your attorney is looking out for your best interest and sometimes that means providing you with information that you may not want to hear. Just remember the attorney is there to guide you through this process and to be your advocate.

If you are looking for a matrimonial attorney to advise you on how to proceed with your divorce or post-judgment issues, contact us today to set up a consultation.

Originally published on October 22, 2020.

Protecting your children during divorce: What does this look like?

AAML NJ Administrator — Tue, 19 Apr 2022 11:45:31 GMT

By Michelle Barr | Our Family Wizard, AAML NJ Silver Sponsor

Protecting your children through a divorce may look a bit different for every family, but at its heart, it means that both parents are always looking out for their child's emotional and mental health. Children deserve the chance to just be kids without being worried about getting caught in the middle of their parents' conflict. OurFamilyWizard provides families with a lasting solution that can improve parent communication once and for all. Curtail trips back to court to resolve disputes and protect the best interests of children with tools that help parents reach peaceful agreements on their own. Below please find tips and insights on ways clients can improve communication and work as a team to protect their children during a divorce or separation.

Read the full article here.

Tips for Pet Custody from a Divorce Lawyer

AAML NJ Administrator — Tue, 12 Apr 2022 09:34:52 GMT

By Lesnevich, Marzano-Lesnevich, O'Cathain & O'Cathain

As a full-blown crazy cat parent, it’s hard for me to believe that New Jersey courts consider our beloved pets (“fur babies,” if you will) as “chattel” or property. Although New Jersey courts recognize that pets have a special subjective value, they are not bound to address custodial arrangements as they are in cases involving human children. However, New Jersey courts will honor an agreement between two parties with regards to actual ownership of or time-sharing with a formerly shared pet.

In Houseman v. Dare, the trial court initially found that pets are personal property that lack the unique value essential to an award of specific performance (in this case, actual ownership as opposed to the distribution of the property’s monetary value). Therefore, the trial court denied Plaintiff’s request to enforce an oral agreement between her and her former fiancé, Defendant, in which Plaintiff claimed Defendant had agreed to give her possession of the dog upon their separation. Instead, the trial court awarded Plaintiff a total of $1,500 for the purchase price of the dog, but denied her request for specific performance of the oral agreement.

In its review, the Appellate Division remanded the case back to the trial court. The Appellate Division rejected the trial court’s initial ruling that the parties’ oral agreement may not be specifically enforced by the court. In fact, the Appellate Division went to great lengths to liken pets to heirlooms, family treasures, or works of art – all tangible property that induce a strong sentimental attachment from their owners. The Appellate Division noted that money damages cannot compensate the injured party for the special subjective benefits derived from those possessions. Therefore, the request for specific performance as to ownership of a pet is appropriate and can certainly be addressed by the Family Part. The Appellate Division remanded the case back to the trial court and ordered that the trial court to conduct further proceedings on the existence of an oral agreement about ownership and possession of the dog and the propriety of specific performance as a remedy in the matter. After the case was remanded back to the trial court, the trial court reversed their initial decision and ordered that the parties alternate time with the dog every five (5) weeks. However, since custodial arrangements are still reserved solely for human children, the trial court could not award custody and, instead, awarded “alternating possession.”

Because custody is not awarded when it comes to our beloved pets, the courts are not bound by the custody statutes and case law as with human children. New Jersey courts have not caught up to courts in other states such as Alaska wherein pet custodial arrangements are now being treated more like those of human children including joint decision making, shared visitation time, and the consideration of the pet’s best interest. Therefore, the “best interests” of your pet are not part of the court’s analysis – the court will only consider the special subjective value held by the human parties. So, how do you protect your rights to share your fur baby in the event of a separation or divorce?

Our number one tip is to formulate a written agreement with your partner. This will ensure that your wishes are enforced by a New Jersey court. Following the court’s holding in Houseman v. Dare, New Jersey courts will honor an agreement between two parties with regards to what happens with their pets upon separation. However, absent an agreement, the courts will treat your beloved pet as though he or she were akin to a family heirloom – that means there is a possibility of shared possession, but same is not required.

If you and your partner adopted or purchased your pet prior to marriage, and you both decide you want to enter into a prenuptial agreement before marriage, including your pet in your prenuptial agreement is certainly a good idea. In the event you did not execute a written agreement prior to entering into your marriage, you can certainly address who retains your pet in settlement discussions.

Originally published on January 19, 2021. Link here.

Tax Season Reminders to Save Your Divorcing Clients Money and Stress

AAML NJ Administrator — Mon, 04 Apr 2022 15:03:36 GMT

By Sharon L. Klein, Senior Vice President and Head of National Divorce Advisory Practice | Wilmington Trust, AAML NJ Silver Sponsor

Tax season is intimidating enough for clients without the added burden of navigating it through divorce. In this month’s Family Lawyer Magazine monthly tip, Sharon Klein shares what those maneuvering through divorce need to know before they file.

Link here to monthly tip.

For more information, reach out to Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com.

Remote Alcohol Monitoring for Safer Co-Parenting Practices: Help Your Clients Provide Peace of Mind and Regain Trust

AAML NJ Administrator — Fri, 01 Apr 2022 08:05:40 GMT

By Chris Beck | Soberlink, AAML NJ Bronze Sponsor

Nearly every day, matrimonial law practitioners work with people whose most intimate relationships have deteriorated to a point where parties’ emotions alternate from disappointment to anger and from sorrow to perhaps fear. This is acutely evident when clients have to navigate matters involving child custody and visitation issues – a course made that much more difficult when one parent struggles with alcohol abuse.

One of the most difficult hurdles to overcome in any Family Law proceeding is reaching a parenting-time agreement when one of the parties has a history of misusing alcohol. Settling custodial and visitation issues is further complicated when one parent’s distrust of the other is fueled by their fear that alcohol misuse will endanger the child during unsupervised visits.

Whether you represent the concerned party who is fearful for their child’s safety during a co-parent’s visitation or you represent the parent struggling with alcohol misuse, all hope – of your client experiencing peace of mind or regaining trust – is not lost. Despite what may appear to be the crux of an impasse during settlement negotiations or litigation, a mutually convenient and proven solution that offers streamlined litigation, peace of mind, and improved child safety is available – remote alcohol monitoring.

This article will discuss:

Overcoming the Challenge of Assuring the Child’s Continued Contact with Both Parents
Accepting Responsibility and Rebuilding Trust
Remote Alcohol Monitoring as Best Evidence

Ensuring the Child Maintains Continued Contact with Both Parents

As outlined by New Jersey law, it is crucial in custody and alcohol cases that children maintain a healthy relationship with both parents:

“Declares that it is in the public policy of this State to assure minor children of frequent and continuing contact with both parents after the parents have separated or dissolved their marriage and that it is in the public interest to encourage parents to share the rights and responsibilities of child rearing..." (N.J. Stat. § 9:2-4).

When alcohol abuse is introduced as an issue in a divorce or child custody dispute, the matter is investigated and not easily brushed aside. Family Court Judges, social workers, guardians-ad-litem, and psychologists involved in the case will focus on the alcohol abuse allegations as a genuine concern that will dominate the court’s assessment of what co-parenting arrangement is in the best interest of the child.

The traditional remedy for these situations was a requirement that visitation with a noncustodial parent be supervised. It was thought that only with the oversight of another adult can the child be assured of the visiting parent’s sobriety. However, arranging for a visit to be supervised has proven to cause significant stress on the child’s parents and court’s child welfare support apparatus.

Unless an agency official supervised the visitation, some families had no trusted family member to provide adequate supervision. Therefore, some visits would need to be canceled or rescheduled if the designated observer was unavailable. If a state employee or contracted therapist were assigned to provide visit supervision, the visits were necessarily short, infrequent, and often expensive.

Fortunately, Soberlink, a comprehensive real-time remote alcohol monitoring system, was designed for co-parenting agreements involving alcohol abuse. Providing court-admissible, documented proof of sobriety during parenting time, Soberlink is trusted by Family Law practitioners to promote child safety and help address concerns of alcohol misuse before or during visitation. Family Court Judges and domestic litigation parties across the country use Soberlink’s wireless alcohol testing devices to monitor alcohol abstinence, assuring the children’s continued contact with both parents.

Rebuilding Trust

If your client struggles with alcohol addiction or Alcohol Use Disorder (AUD), the social barriers and stigma attached to the chronic illness can be painfully difficult to overcome. Moreover, concerned parties, family members, opposing counsel, and court personnel may doubt or distrust your client’s alleged sobriety. Soberlink allows your client to demonstrate their abstinence from alcohol while maintaining a relationship with their children and offering peace of mind to loved ones.

As Soberlink supports accountability for sobriety, a client’s willingness to use a Soberlink remote breathalyzer can also be pivotal in helping clients accept responsibility for their actions and make changes in their child’s best interests.

For parents committed to abstaining from alcohol and rebuilding trust with their co-parent, Soberlink offers two monitoring programs for improved co-parenting agreements. Level 1: Parenting Time Only is designed with flexibility in mind, offering monitoring only during parenting time with schedules managed between both parties. Alternately, Level 2: Daily Testing is consistent monitoring, seven days a week, with schedules managed by Soberlink.

When trust has been broken, and child safety is in jeopardy, Soberlink is best utilized when a client begins their monitoring journey on Level 2, completely abstaining from alcohol use. Once a Level 2 client who is testing several times a day demonstrates consistent compliance, addiction professionals suggest stepping down to Level 1, where monitoring is only conducted during parenting time.

The Family Court and Legal Community’s New Best Evidence – Remote Alcohol Monitoring

Beyond providing court-admissible evidence and offering relief to concerned parties, Soberlink’s comprehensive alcohol monitoring system, which combines a professional-grade breathalyzer with wireless connectivity to send results in real-time, also incorporates tamper detection, adaptive facial recognition, and Advanced Reporting capabilities to ensure the integrity of each test. The system’s intuitive design has positioned Soberlink as the go-to solution for Family Law professionals looking to improve child safety and prove their client’s sobriety with the highest level of reliability and accuracy.

Before systems like Soberlink revolutionized divorce litigation, witness testimony, or hearsay, was traditionally the only evidence a Family Court Judge could rely on to find facts relating to a party’s history of alcohol use. Rulings issued in a case involving one party’s alleged misuse of alcohol were based on what evidence the judge deemed most credible.

The Family Court Judge no longer must rely on witness testimony or historical records of a party’s past behavior with alcohol. Soberlink provides reliable, real-time results at whatever time intervals the Court or the parties establish, and their Advanced Reporting feature allows courts to review a person’s test results at a glance.

Conclusion

Informed Family Court professionals in New Jersey, Family Law attorneys, and presiding judges may find it constructive to advise litigants of the benefits of Soberlink to eliminate any guesswork or conflicting reports about a parent’s alcohol misuse in an effort to uphold the best interests of a child.

Is Collaborative Divorce Right For You?

AAML NJ Administrator — Tue, 22 Mar 2022 12:34:48 GMT

By Lesnevich, Marzano-Lesnevich, O'Cathain & O'Cathain

It is certainly no secret that going through a divorce can be one of the most difficult periods in anyone’s life. Divorces can be emotionally-charged, expensive, and contentious. The family court system still encourages couples to work together, if they can, through divorce disputes. When spouses agree on more things than not, the process is more comfortable and smooth for everyone. It isn’t uncommon for spouses to find help through a mediator or neutral third person who can facilitate a conversation.

If you can tolerate your spouse enough and are willing to work with them, you may want to consider the benefits of a collaborative divorce.

About Collaborative Divorce

Collaborative divorce is a legal process that enables couples to negotiate the terms of their divorce, without having to fight intensely in court. Couples can use various negotiation and mediation tactics to reach a solution they are both somewhat happy with. Of course, there will be times when a spouse may have to compromise more than they’d like, but at least it guarantees some of their preferences will be considered. As compared to family court, where the judge will ultimately have the final say. Examples of topics the couple will have to discuss include:

Debt division
Property division
Child support
Spousal support
Child custody

Is It Best For Your Divorce?

Not all divorces will benefit from a collaborative divorce, simply because some spouses are just not able to cooperate together. Spouses who are less contentious with one another may want to think about a collaborative divorce, which is often less stress and money overall.

To learn more about whether a collaborative divorce is right for you, contact a reputable collaborative divorce family law firm, such as The McKinney Law Group.

Originally published on April 20, 2021.

Divorce & Asset Protection

AAML NJ Administrator — Thu, 17 Mar 2022 14:30:00 GMT

By Sharon L. Klein, Senior Vice President and Head of National Divorce Advisory Practice | Wilmington Trust, AAML NJ Silver Sponsor

Are your clients’ assets protected from a future potential divorce? In her article just published by WealthCounsel, Sharon Klein outlines the five key components to a well-crafted plan and illustrates how a multi-pronged strategy is often the most powerful approach.

Link to the article: Divorce & Asset Protection

For more information, reach out to Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com.

Family Law Attorney and Client Expectations: How to Establish Them and What to Deliver in Cases Involving Alcohol Abuse

AAML NJ Administrator — Fri, 04 Mar 2022 15:30:00 GMT

By Soberlink, AAML NJ Bronze Sponsor

Perhaps the most emotionally charged area law is the area of matrimonial and family law. Besides the parties confronting the breakup of what once was a romantically inspired partnership, there are often the issues of the equitable distribution of accumulated assets, alimony (also known as spousal support), child support, childcare, custody, and visitation.

The entire family relationship is in play, and it is not always hyperbole to state it is sometimes under attack by the parties, with the attorneys as the designated fighters in the courtroom ring and the judge as (hopefully) an impartial referee.

While the attorney is presumably licensed and experienced in dealing with domestic legal issues, they are often called upon to play the part of de facto therapist in order to understand the emotional drives of the client and how they can impact not only their expectations of the outcome but the reasonability of the positions they wish to take in light of statutory law and current case holdings.

There are times that a client will openly admit that they wish to use financial and custody/visitation issues as a hammer to punish the other spouse. There are also times where the client is not consciously aware that that is what they are doing.

It is the family law attorney who must be cognizant of these emotional issues, to acknowledge them, to explain to the client that the best possible outcomes legally are those where the parties act both reasonably and responsibly in trying to achieve the best possible outcome in accordance with the rules and precedents to which they will be subject.

The attorney is the client’s guide and protector, but, among the list of New Jersey Client Rights:

Clients have the right to make the final decision as to whether, when, and how to settle their cases and as to economic and other positions to be taken with respect to issues in the case.

The experienced practitioner knows that sometimes they have to protect themselves by detailing their advice and instructions in writing to a client, having the client acknowledge the receipt of this advice and instructions, maintaining the decision to ignore or deviate from them.

Equally important are the client’s responsibilities:

Clients shall not take any position in their matter for any improper purpose, such as to delay the proceeding or intentionally to increase the cost to other litigants.

Alcohol Misuse and the Attorney/Client Relationship

When alcohol misuse is involved by either one or both parties, issues can become more difficult to resolve. The attorney must have the experience and the ability to liaison with the requisite addiction professionals and be aware of the tools at their disposal to do justice for both parties, especially keeping in line with the best interests of the child principle.

Alcohol Use Disorder is often weaponized in court, causing a decided conflict between the attorney and opposing counsel. In this instance, family law practitioners should educate clients on systems available to them that can help to empower both parents while maintaining child safety.

Helping Your Client by Ensuring Their Child's Safety in Cases Involving Alcohol Abuse

As it states in New Jersey Children Juvenile and Domestic Relations Courts section 9-2-4(c) regarding the fitness of parents with respect to custodial and visitation awards:

A parent shall not be deemed unfit unless the parents' conduct has a substantial adverse effect on the child.

Unfortunately, over 10% of children live with a parent that misuses alcohol.

In custody and alcohol litigation, many times, a parent will falsely accuse the other parent of substance misuse, and that is where technology can play a major part in proving the contrary and making it more likely that the accused party will be vindicated, resulting in a positive impact for them in a custody or visitation dispute.

As co-parenting often requires a great deal of trust, the attorney representing the party either struggling or accused of alcohol misuse should discuss what technology is available to them to prove their sobriety during parenting time, providing peace of mind to opposing counsel.

A convenient and discreet option is Soberlink, a comprehensive remote alcohol monitoring system that sends real-time results and helps parents improve accountability.

Soberlink consists of a wireless remote breathalyzer that uses facial recognition and tamper detection to ensure the integrity of each test. In addition, its Advanced Reporting capabilities provide simplified analysis of test results and court-admissible reports for streamlined litigation. Soberlink is widely trusted by thousands of family law practitioners across the United States, including in the State of New Jersey.

Soberlink’s unique design allows for swift intervention for improved child safety in co-parenting arrangements and, in many cases, helps make visitations possible—especially unsupervised visitation.

Further, Soberlink can be a tool for managing recovery from alcohol abuse. The system is not just a tool of strategy and tactics in a court proceeding; it offers a way for parents to maintain sobriety so that they can improve their lives and the lives of their children, offering them a safe and stable home environment.

The family lawyer’s role is much more multifaceted than it used to be with respect to establishing client expectations and accomplishing client goals. Today, the family law attorney is the legal advisor, the agent for therapeutic liaison, and the technology-savvy counselor.

The Marital Balance Sheet and Common Errors in a Divorce Settlement and the Division of Marital Assets

AAML NJ Administrator — Wed, 02 Mar 2022 17:30:00 GMT

By Kriste J. Rodriguez, CPA/ABV | EisnerAmper, AAML NJ Gold Sponsor

Overview of the Marital Balance Sheet

Real estate

Bank accounts

Automobiles, boats, etc.

Tangible property, including artwork, furniture, jewelry, collectible items, wine, etc.

Brokerage accounts including stocks, bonds and securities

Retirement accounts, including pensions, IRAs, profit sharing plans, 401(k)s, etc.

Value of a business interest

Employee benefits, such as restricted stock, stock options, etc.

Cash surrender value of life insurance policies

Liabilities include mortgages, lines of credit, notes payable personal loans and credit card liabilities

Failure to Consider Tax Implications Could Result in Inequitable Division of Assets

Certain assets may appear to be equal in value on the surface. However, certain events could trigger tax consequences, which could result in very different values.

Retirement Account Division – Understanding the Rules

Liquidity of Assets

Life Insurance Policies

Conclusion

Marriage Separation Advice: 7 Tips for a Healthy Process

AAML NJ Administrator — Fri, 18 Feb 2022 17:30:00 GMT

By Christina Vinters, J.D., Family Law Mediator, “ex” Divorce Lawyer, and Author of Pathways to Amicable Divorce: Directions for the Beginning of Separation | Our Family Wizard, AAML NJ Silver Sponsor

Looking for relatable marriage separation advice that doesn't leave you feeling overwhelmed? And wondering what should you not do during separation? Most people have heard horror stories about married couples turning on one another during divorce and would like to avoid that. An adversarial divorce could involve massive legal expenses, high levels of stress, and prolonged conflict which ends up harming the children.

The good news is that there are ways of managing separation that will help your family make the transition during divorce from one household to two without destroying the functionality of your partnership as parents and your respective savings.

Some of the steps you will need to take to get started on a healthy marriage separation may seem counter-intuitive to you. However, there are specific strategic advantages for each one. Keep in mind that de-escalation of conflict needs to be an ongoing priority. Keep reading for our conflict-free marriage separation advice.

1. Treat Your Co-Parent as you Would Treat a Business Partner

These are the basics of any decent relationship but are frequently overlooked or disregarded during separation. When you get separated you need to start a new relationship paradigm – that of business partners:

Be courteous.
Answer emails, text messages, and phone calls.
Don’t badmouth your co-parent, especially not on social media or to your children.
Do what you say you’re going to do.
Communicate important information.
Provide requested documentation in a timely manner.
Do not treat the other person as the enemy.
Model desirable conduct.
Demonstrate that you can be trusted and that you do not want to participate in a race to the bottom in terms of your behavior.

You will have to continue to work together on the resolution of all of the issues arising out of the breakdown of your relationship, and if you have children, you will have to continue to work together and co-exist as parents of shared children for years to come (including attending birthday parties, graduations, weddings, and so forth).

It can be helpful to consider how you’d like to see your relationship years down the road – for example, you probably don’t want your children to have to worry about how to plan a wedding with both of you in attendance. Don’t do anything now in the heat of the moment that will create tension and unpleasantness for years to come.

Separation can be an overwhelming time of intense mixed emotions, including sadness, guilt, denial, relief, anger, and fear, to name only a few.

Although it can be tempting in a moment of disagreement to let your anger flow, it's better in the long-term for your family if you take a deep breath and maintain your patience.

Sorting out the details of a legal separation usually takes longer than people hope and expect. Give both you and your partner time to understand the shifting needs of your family as you move from being a one-household family to a two-household family.

Handling your emotions in a constructive and respectful way is an important component of moving ahead on the path towards an amicable divorce.

2. Don’t Make any Significant Changes

If you have been paying for all of the family bills, continue to pay all of the bills until you and your partner have reached an agreement on how expenses will be handled going forward.

Neither of you should withdraw or spend significant sums of money without the consent of the other – in most cases, this is not the time to buy a new vehicle or take a trip to Las Vegas!

Some people find comfort in making arrangements with their financial institution to require both of their signatures for withdrawals from savings and investment accounts until they have divided their accounts.

If there is no safety concern, do not move out with the children. The children are entitled to a stable environment and shouldn’t be moved around more than necessary.

Wait to move until you have worked out a parenting plan. However, safety is the first priority and you should obtain legal advice immediately if you believe that you need assistance with moving yourself and your children to a safe location.

3. Discuss the Various Options for Pathways to an Amicable Divorce

A little individual reading and research can be helpful before discussing your dispute resolution options. Familiarize yourself with mediation, mediation/ arbitration, and collaborative law, and then discuss the options so that you are on the same page in terms of pros and cons.

Discuss which option seems appropriate given the level of complexity of your issues and the state of your ability to communicate with each other at the present time.

You may find that one person has no particular preference while the other person is drawn to a certain process option. It may or may not be difficult initially to agree on a process.

Take the path of least resistance and choose a process that you could each “live with” as a test run. You can then work on choosing the appropriate professional(s). The processes are voluntary so either of you could choose to end the initial process if you feel that it is not working well for you.

4. Choose Your Family Mediator and/or Lawyer

Regardless of which dispute resolution process you choose and even if you don’t hire a lawyer to represent you throughout the process, you should get independent legal advice from a family law lawyer at some point in the process, whether it is at the beginning, partway through negotiations, and/or before signing the draft Separation Agreement.

Ask for a Referral

Ask around for recommendations. Ask your friends, neighbors, co-workers, and family members for feedback regarding specific family law lawyers.

You should find out what they liked about certain lawyers and what they didn’t like – this is important because it may be that the other person’s goals were quite different from yours and that the recommendation would be poorly suited to your situation.

Consider Personality

Don’t forget that lawyers are not one uniform kind of person, even within a certain area of law – some are peacemakers at heart while others enjoy the thrill of debate and banter; some are diplomatic and some take pride in their reputation for being a bulldog; some are more focused on the big picture of reaching overall resolution while others are focused on advocating for a win on every legal issue.

Some might say that these are all strategies that can be employed by any lawyer depending on the situation, rather than being characteristics. Regardless, in my opinion, it is the rare individual who does an excellent job with both styles of dispute resolution.

An amicable problem-solver and a tenacious litigator have very different skill sets, experiences, outlooks, and instincts. Most lawyers will have a dominant strength in one or the other style. Lawyers who also do a lot of work as mediators will often have a more resolution-oriented style.

There is no right and wrong in terms of style and each style has merits in certain circumstances. The key is to choose the right style to help you reach your goals in your circumstances.

If you and your partner are both reasonable people who disagree about some issues, you will probably benefit from a mediator or lawyer who will work towards a resolution with you without involving court processes.

In this case, you will do well to research the professionals in your area who are trained in mediation or collaborative law.

Consider Your Personal Scenario

If you are in a relationship with someone who is a bully, an abuser, and/or has a serious personality disorder, mental health issue, or substance use problem that prevents him or her from engaging in rational discussion, you may do better with a family law litigator who takes an aggressive court-based approach.

Trust Your Gut

Lastly, given that we’re human, there’s no getting around that some professionals are more knowledgeable, better organized, more emotionally intelligent, and/or better communicators than others, attributes that don’t necessarily have anything to do with a person’s years of experience or hourly rate. Try to find out about these types of characteristics as well.

Make your choice based on a trusted recommendation and some of your own research.

5. See a Counselor and/or Doctor

Separation can be devastating for families, whether or not there are children involved. There are many issues that arise with which a lawyer can’t help because they are not legal issues.

Our society has become overly focused on the law with respect to the breakdown of a family but the law is not equipped to provide all of the assistance that most families need.

Mental Health is Just as Important as Legal Counsel

Serious emotional issues can arise for the separating couple and for the children, during the deterioration of the relationship and upon separation. These issues will not resolve themselves.

There are many different approaches to counseling so research the options to decide which will work best for you and your family. Many people don’t want to be involved in the stereotype of counseling: flaky discussions reflecting back on their childhood.

There are now future-focused, pragmatic, behavior-based methods that can help with specifics, for example, appropriate communication for co-parenting or handling feelings when the other person re-partners.

Unresolved emotional issues very frequently interfere with the resolution of legal issues. It can lead to one or both people causing long delays by refusing to engage in discussion.

Parties may get stuck on a particular issue, and/or create conflict in situations that should objectively be fairly uncomplicated.

In addition, even if you and your partner are doing your best in good faith to move towards an agreement, it may be that you experience a significant amount of stress and anxiety during the process due to the many unknowns in your future.

Gathering and exchanging the necessary documentation and negotiating the terms of an agreement can take longer than people hope and expect. Unfortunately, when you are working towards an agreement, you need to move at the pace of the slower person.

Be Patient Even When it's Difficult

One person will always be further ahead than the other in the grief cycle relating to the breakdown of the relationship and therefore will have to wait for the other person to become mentally ready to finalize the details of the separation by agreement.

The very nature of an agreement is that you need the other person to agree with you, which cannot be forced. If you are the person who is ready to move on and waiting for the other person to come around, you may need to deal with your anxiety with the help of a counselor or medical professional. There’s no remedy in law for anxiety.

Provide Emotional Support and Resources for Your Children

If you have children, there is no question that your children have been affected by your separation. They may seem fine. They may be acting out. Either way, allow them to express their emotions and get some professional assistance with the best way to help your children move forward.

6. Wait to Start a New Relationship

This suggestion is not based on moral considerations; it is a strategic issue. More often than not, a new boyfriend or girlfriend on the scene is massively disruptive to the negotiation process underway for the Separation Agreement.

Regardless of which person ended the relationship, a new relationship can cause surprisingly intense emotions for the “replaced” partner. This often translates into complications such as some manner of a financial backlash, parenting altercations, and general escalation of disagreements.

Depending on the nature of a new relationship, it can have bearing on whether and how much spousal support may be payable.

The new partner may also become a factor in the parenting arrangements for the children (for example, the new partner will be under scrutiny to determine whether his or her presence around the children is in their best interests).

If you can manage to wait to start a new relationship until your Separation Agreement has been finalized, you will avoid one possible hot button issue that commonly derails originally amicable discussions.

7. Start Your Dispute Resolution Process Sooner Rather Than Later

I have found that the longer uncertainty continues, the more likely it is that communication will deteriorate and tension will escalate. Change is difficult for most people and particularly so when they are not in full control of the outcome.

You can reduce the fear and anxiety that arise for most people during separation by dealing with your issues promptly.

Don’t encourage your partner’s imagination to wander into worst-case scenarios by dragging your heels on starting the resolution process.

Conflict-Free Separation is Possible

The separation will be challenging, but if you follow most of these 7 tips, you will give yourself the best chance of achieving a healthy and efficient resolution. It will be hard work and it will likely take all of your willpower but your future self will thank you for your effort.

How New Jersey Law Firms Can Master Quality Client Service

AAML NJ Administrator — Wed, 16 Feb 2022 15:30:00 GMT

By Kelly Clifford, Vice President, Sales | LEAP Legal Software, AAML NJ Silver Sponsor

There are plenty of ways New Jersey law firms can make their business different from the next. One way to set yourself apart from other businesses is by providing quality services to your clients. Legal professionals can utilize available technology in order to do so.

In 2015, Nielsen conducted a study that resulted in many insightful statistics about consumers. One of them being that two-thirds of all consumers choose to do business with entities that have been referred to them before. This means that the quality of services that New Jersey law firms provide could be the deciding factor for a client choosing your firm over another.

LEAP has been a legal technology leader for nearly thirty years, setting the standard for firms looking to maximize efficiency, productivity, and profitability. Here are 4 tips on mastering quality client services, from LEAP Support:

1. Be Flexible

Helping clients is more than answering emails and phone calls. When it comes to receiving information, clients’ preferences can vary and it’s important to accommodate them.

How LEAP Support achieves this: LEAP provides the following features at no additional cost:

Unlimited access to support communication channels including online chat, email, phone, online case creation, and more
Online training courses via LEAP University
A dedicated Practice Management Advisor as a fixed point of contact
Troubleshooting self-help guides and discussion spaces via LEAP Help Center
Regular training webinars and videos explaining new and advanced software features

How law firms can achieve this: LEAP offers several channels that law firms can use when communicating with your clients. With LEAP, law firms can:

Call or text clients using the LEAP Mobile app
Schedule video conference meetings using integrations with Microsoft Teams and Zoom
Give clients the ability to schedule appointments based on real-time availability
Collect client information with online intake forms
Share and collaborate on documents via a secure web portal

2. Ask Questions

Be sure to listen to your clients for feedback. One of the best ways to know if you are providing quality client service is to ask.

How LEAP Support achieves this: After each support case is resolved, the client that reported the case will receive a short survey asking for their thoughts on their experience with us. Each response is reviewed by a manager to determine if the case is resolved, or if further action is required.

How your firm can achieve this: Implementing a dependable feedback loop doesn’t need to be difficult. By creating a simple online survey for your clients to complete periodically you can avoid the interviewer effect. Regardless of the application, it’s important to view all feedback with an open mind and be willing to make necessary changes.

3. Always Reply

This doesn’t mean you must respond to everyone at any hour of the day or night. Instead, focus on making sure that channels of communication are clear, and prompt. Taking more than a day to reply can turn away clients and prospects alike.

How LEAP Support achieves this: Replying to any communication in a timely manner is important at LEAP. The average time anyone can expect to wait for a chat support response is no more than 13 seconds. We prioritize ensuring that an experienced specialist is available to discuss any issue or question almost instantly.

For more complex issues, clients can submit a request via email or our website and will receive a response after more consideration. Clients can also use our online booking system to schedule meeting time that works best for them.

How your firm can achieve this: Set up an automatic responder if an email inbox will be unmonitored for a period of time. Establish client expectations by explaining when they will get a response from you. In addition, you can review and update any voicemail messages regularly.

LEAP Web Portal is another option to allow your clients to get in touch without your direct involvement. Here are just a few of the many tools you can use:

Clients can utilize the booking calendar, powered by LawTap. This allows you to select your availability, then clients and prospects can request an in-person or remote appointment that can be confirmed or rescheduled as necessary.
Clients can utilize the inquiry page that lets prospects log their details, which you can access using the built-in Customer Relationship Management (CRM) dashboard. This allows you to record calls, send emails, and transfer the details directly into LEAP.

The LEAP Web Portal feature is available to every user at no additional cost.

4. Go Mobile

In 2015 the ABA found that lawyers were doing 25% of their work away from the office, this number has likely increased due to the pandemic of 2020. It is increasingly important now more than ever to have access to everything on-the-go.

How LEAP Support achieves this: From ticket creation to internal messaging and document storage solutions, LEAP utilizes the cloud. This results in a seamless switch to working remotely for all LEAP users, so much so, that LEAP offers further support to help clients make their own pivot to working from home.

How your firm can achieve this: Consider how you access your most important data. How many times during the day do you need to access important case information while away from your desk? With LEAP, you can be sure that all your data is securely stored via Amazon Web Services . This means you can access all your matter information at any time, from anywhere, with one single sign-on.

Quality service is more than offering support to clients when things go wrong. It’s receiving a clear communication in a way that suits their needs, getting access to helpful knowledge, and dedicated specialists providing the best possible experience.

Implementing quality service can be difficult, but instead of feeling stuck, know that there are legal technology tools available to help your New Jersey law firm grow in this area. Contact us today and schedule a demonstration to see how LEAP, the #1 legal practice productivity solution, can help your law firm master quality client service.

Pathri v. Rakarlamath: Appellate Division Creates Framework for Video Testimony in Family Matters

AAML NJ Administrator — Mon, 14 Feb 2022 17:32:21 GMT

By Jeralyn Lawrence, AAML NJ Chapter President

In January 2020, the New Jersey Appellate Division made an unexpectedly timely ruling on the use of video testimony in family matters being heard by the court. While the state's Court Rules neither explicitly allowed for nor prohibited video testimony, courts have made an array of rulings in different cases regarding the acceptability of witnesses appearing over a video link. In Pathri v. Kakarlamath (462 N.J. Super. 208 (App. Div. 2020)), the Appellate Division refined the factors for judges to consider when responding to a request to deliver testimony via video.

Only a few short months later, the COVID-19 pandemic dramatically changed the way all cases, including family matters, are heard in the New Jersey courts. Even if that change is temporary, the decision in Pathri helped to lay a firm foundation for the ensuing hearings. Whether due to health considerations or other concerns, the technical revolution in video technology made the court's decision timely and highly relevant for all practitioners in New Jersey. Many are hopeful that these technological advances remain in place indefinitely.

Case Background

The Pathri case concerned a family that had immigrated to the United States, arriving from India in 2007. In 2018, the husband filed for divorce shortly before returning to India; the wife then filed a counterclaim. She lived in Maryland with the couple's two children. Once the case was scheduled for trial in May 2019, the plaintiff sought an order granting permission for him to appear via video remote testimony, saying he was unable to obtain a visa to the United States to appear in court.

While it does not appear that contradictory facts were presented indicating that the husband would in fact be able to receive a visa, the trial court rejected his motion after the wife opposed it. To this end, the court relied on Aqua Marine Products, Inc. v. Pathe Computer Control Systems Corp. (229 N.J. Super. 264 (App. Div. 1988)) a contract case in which a witness sought to present testimony via telephone link.

The Aqua Marine court created a two-part test to determine whether remote testimony was acceptable:

Special situations in which there is either exigency or consent; and
When the witness’s identity and credentials are known.

In the Pathri case, the judge ruled that her ability to determine the credibility of the plaintiff's testimony would be negatively affected by his lack of physical presence. The plaintiff then appealed, and the decision from the Appellate Division followed.

A Modern Approach to Video Testimony

In Pathri, the Appellate Division recognized the necessity of an approach to remote testimony that reflects the array of technological options that were impossible and, indeed, unimaginable, at the time of the Aqua Marine decision. The court began by noting that the Court Rules allow for testimony to be presented without physical presence, as in the case of capacity hearings or physicians providing trial testimony via videotape.

Distinguishing the present case from Aqua Marine, the court noted that there had been no prior discovery of the witness who sought to testify remotely in that case. In addition, the only option offered for contemporaneous remote testimony was telephonic, without the additional opportunities that modern video technologies offer to allow thorough questioning and examination of the witness.

In the Aqua Marine ruling, the court noted that it would be difficult to determine the credibility or even verify the identity of the speaker, given that they would appear only as a voice over the telephone. While modern technology eliminates some of the practical issues in Aqua Marine, there remain important reasons why courts may remain skeptical of video testimony, at least when other witnesses will appear in person at the same time. (When all witnesses appear via video, the same limitations are broadly shared.)

The court did not overrule Aqua Marine, noting that the test presented in the case was correct. It referred to the Federal Rule of Civil Procedure 43(a), which allows testimony via live video transmission "for good cause in compelling circumstances and with appropriate safeguards..." a standard very similar to that applied in Aqua Marine. While the two texts use different language to describe those circumstances, the rationale presented is equivalent: That is, witnesses may testify remotely when the circumstances are appropriate.

Pathri Test for Remote Appearances

The court laid out seven factors for judges to consider when evaluating a request to appear via a live video link. These factors are:

The importance of the witness for the proceedings
The severity or sharpness of the factual dispute to which the witness will testify
Whether a judge or jury will find facts in the case
The costs of requiring physical appearance in court vs. receiving the testimony in another way
The delays caused by requiring physical appearance in court vs. allowing a live video transmission
Whether the witness’s inability to be present in court on the trial date was preventable or foreseeable
The difficulty for the witness of appearing in person

The court noted that video testimony is most appropriate when witness testimony is not essential. The more heavily disputed the facts relayed by the witness, the greater the weight against live video testimony. In addition, in cases where a judge is finding facts rather than a jury, video testimony may be more acceptable, as judges are more experienced than laypeople in determining credibility and assessing the value of testimony.

The court also noted that the interests of justice allow for video testimony that alleviates problems with scheduling, prevents delays or allows greater efficiency in the trial process. To this end, the court noted New Jersey Rule 1:1-2, which notes that the rules should be construed to "secure a just determination, simplicity in procedure, fairness in administration, and elimination of unjustifiable expense and delay." It emphasized that decisions about video testimony should serve the aims laid out in this rule.

Further, the court did not distinguish testimony on matrimonial matters from other types of testimony. The Aqua Marine case reviewed as precedent was a contract dispute, while the court referenced telephonic hearings in guardianship procedures as a useful example.

However, the court warned of attempts to avoid appearing at trial, noting that if the witness is responsible for their inability to be present, this may weigh against allowing video testimony. In light of these factors, the Pathri court sent the case back to the trial court for further consideration.

Repercussions of the Pathri Decision

The Appellate Division's ruling reflects a preference for obtaining testimony, even if imperfect, over not allowing testimony at all. The court noted the potential unfairness in disallowing remote testimony with the effect of leaving only one party to speak. However, the court also made room for many conditions on the testimony as well as consideration of multiple factors that could weigh against allowing such video appearances. The court also noted practical factors that judges may consider, such as the ability of the judge or jury to see the witness's face or body language as they speak or potentially requiring testimony to take place in a specific location.

The court also requested the rules committee of the Supreme Court to consider the issue for formal inclusion. Since the Pathri ruling, live video testimony has become the norm, as have remote appearances by judges and members of the jury. The changes created by the COVID-19 pandemic built upon an existing technical framework and the decision in Pathri, allowing the courts to continue to function despite significant limitations on the ability of people to appear in person.

Video Testimony After the Pandemic

In March 2020, the Administrative Office of the Courts issued a directive allowing trials to proceed via Zoom, Microsoft Teams and other platforms, including divorce proceedings. Even as the pandemic waned and attorneys, litigants and judges returned to some in-person hearings, many matters have continued to proceed remotely. Judges have the authority to schedule in-person proceedings based on the circumstances or facts of each case.

Remote trial testimony outside the pandemic may raise additional concerns for some of the reasons cited by the court. Witnesses may attempt to avoid more thorough scrutiny by making themselves absent for trial, leading to credibility determinations becoming more challenging. Technical glitches, certainly a factor in court-over-Zoom during the pandemic, could also make remote testimony an additional challenge during an in-person hearing. However, there are also significant positives to remote proceedings, such as convenience and in keeping costs down.

Takeaways for Practitioners

There are a number of issues with which practitioners may wrestle when dealing with requests for video testimony, especially as an exceptional matter. When representing a client or seeking to present a witness who is unavoidably overseas, engaged in work travel, located in a remote or inaccessible area (such as oil and gas workers) or unable to attend the trial for any reason, the ruling in Pathri provides clearer guidance as to the arguments that must be made. The Appellate Division provides seven factors that are relevant to a judicial decision,and presenting arguments for each of those factors would be beneficial to any practitioner seeking approval for remote testimony.

When the opposing party seeks to present remote testimony, the court also provides useful factors for determining whether to oppose the application. If a practitioner is concerned that the opposing party is specifically seeking to avoid scrutiny or dodge questions of credibility, the Pathri factors provide space to emphasize these issues. The ruling, while providing a broader scope for video appearances, also presents clear issues of concern for the court.

While video testimony and Zoom court have become the norm in the period following the Pathri decision, the elucidation of clear factors for video testimony and the recognition of modern technologies present a useful framework for all practitioners seeking or opposing permission to appear remotely.

Collaborative Divorce: Separate Lawyers, Yes; Antagonistic Litigation, No

AAML NJ Administrator — Thu, 10 Feb 2022 16:47:37 GMT

By Carla Fried | Marc Demetriou - Guaranteed Rate, AAML NJ Gold Sponsor

Save Money and Reduce Emotional Wear and Tear

Making the decision to end a marriage sets off a string of consequential decisions, starting with the framework you’ll rely on to navigate the legal process of a divorce.

There are alternatives to the traditional model of straight-out litigation, in which you each hire your own lawyer, who then are predisposed to “fight” for your best interests.

Most litigated divorces are settled long before it is necessary to have a judge step in, but it’s important to understand the dynamic with litigation. The lawyer you hire is motivated to do right by you. That can mean pushing hard, or spending lots of billable time in back-and-forth discovery with your spouse and his/her lawyer.

Collaborative Divorce Option

Collaborative divorce is another option. You each have your own lawyer, but the dynamic is not competitive. As its name implies, the process is one in which all four of you work together to hash out an agreement.

The heart of the process is done in real time with the four of you sitting together (in person, virtually) to discuss matters. Right off the bat that reduces the usual back and forth in which clients only communicate with their lawyers, who then discuss among themselves and return to their respective clients with a report on progress or lack thereof.

A key element of most collaborative divorce proceedings is that the lawyers explicitly agree that if you can’t reach an agreement using this process, neither lawyer will be involved if you and your spouse start over with full-blown litigation.

The In-Between Route

Collaborative divorce might be the Goldilocks option for couples who don’t want the aggressive nature of litigation, but are not sure divorce mediation is the right approach either. With divorce mediation, you and your spouse hire one mediator. The mediator works for both of you, helping you navigate through issues to reach agreement.

Once a mediated settlement is agreed to, a lawyer (it may be the same mediator) will draft the legal divorce agreement and shepherd it through your state’s filing system.

If that approach doesn’t appeal to either of you, or if you sense it’s not the right method — say, if there is a significant power imbalance in the relationship — the collaborative divorce approach gives each of you your own legal representation, but without the more aggressive nature of litigation.

State Laws About Children

It’s important to understand that a state’s laws regarding childcare, child support and alimony provide the framework for all divorces. No matter which approach you take, at the end of the day your agreement must abide by state law. Sure, there is room for negotiation, but this is not some free-for-all. You can begin to get a sense of your state’s laws at Divorce.net’s website.

And you can arrange a consultation with a divorce lawyer to walk you through the ins and outs of the process in your state. (You don’t have to hire them to be your lawyer, just agree to an hourly fee to give you an Intro to Divorce in your state.)

Cost of Collaborative Divorce

In terms of cost, collaborative divorce will typically fall in the middle ground between mediation (less expensive) and traditional litigation (more expensive).

With mediation you’re hiring one professional to do most of the heavy lifting with you; lawyers might only come in at the end to help each of you review the agreement. Collaboration involves two lawyers, each charging you an hourly fee.

A survey by Martindale-Nolo found that the average national hourly rate is $270, though there is wide variation, depending on location. The Nolo book “Divorce Without Court” offers an illustrative example using a $350/hour lawyer fee. The all-in cost for both parties using a collaborative divorce was less than $24,000, compared to more than $90,000 for the same divorce conducted through litigation. Mediation would typically cost less than half the charge for collaborative.

The Mediation Option

If your motivation for collaborative divorce is because you have complicated financial issues to work out, and think you both need separate lawyers, you may find that mediation can work.

The reality is that when there are tricky financial matters to consider — valuing an interest in a business, computing the future value of pensions, etc. — a lawyer is likely going to turn to a financial pro, such as an accountant. If you’re both open to hiring one pro as an uninterested third party to do the number-crunching, you might not need to hire either a collaborative lawyer or a divorce litigator.

Hiring a divorce mediator along with using a financial pro to spreadsheet the financial issues may be sufficient. Your mediator will likely have leads. Or you can search the website of the Institute for Divorce Financial Analysts for someone who specializes in divorce valuation matters. Once you have an agreement in principle, you can hire a divorce lawyer on a “consulting” basis to review the terms before you proceed with finalizing the divorce by filing the agreement with your state court.

Originally published on August 26, 2020.

COVID-19, Your Divorce, and Your Financial Future

AAML NJ Administrator — Mon, 24 Jan 2022 16:29:11 GMT

By Christy L. Watkins, CFA, Senior Investment Advisor and William T. Bennett, CFA, Wealth Investment Advisor | Wilmington Trust, AAML NJ Silver Sponsor

With the rise of the omicron variant across the nation, divorcing clients continue to face numerous obstacles. During this tumultuous time, what additional factors should those navigating divorce consider? Wilmington Trust’s Christy L. Watkins, CFA, Senior Investment Advisor and William T. Bennett, CFA, Wealth Investment Advisor explore key post-COVID adjustments as clients develop their long-term financial roadmap including detailed investment plans, cash flow expectations and tax considerations.

Link to article: COVID-19, Your Divorce, and Your Financial Future

For more information, reach out to Sharon L. Klein at 212-415-0531 or sklein@wilmingtontrust.com.

Is Cloud-Based Legal Software Right for Your Law Firm?

AAML NJ Administrator — Fri, 21 Jan 2022 14:56:10 GMT

By Kelly Clifford, Vice President, Sales | LEAP Legal Software, AAML NJ Silver Sponsor

Is Cloud-Based Legal Software Right for Your Law Firm?

To answer this question simply; yes. More New Jersey law firms are choosing cloud-based legal practice software because it’s naturally better than the alternative, on-premises software.

On-premises software lives in a physical server at your law firm’s location. Some requirements that come with on-premises software include:

A secured space where the server is stored
Upkeep of hardware for sufficient speeds and storage
Regularly updated operating system software and security patches
Backups that are available around the clock
Manual updates to the most current version of the actual legal practice software

Before the internet, staff at New Jersey law firms were settled into the responsibility of maintaining this type of data. With new technology advancements, we have higher expectations of data maintenance being incorporated into these software products.

LEAP is a one-of-a-kind, true cloud-based legal practice productivity solution that provides what on-premises software can’t. Some examples of this include:

Decreased IT costs, with far less risk of inflation
Universal and mobile features across multiple devices – including iOS, Android, Apple Watch, and Amazon Alexa
Advanced data security and user access control
Sustainable foundation for growth

Decreased IT Costs, With Far Less Risk of Inflation

Cloud-based legal software products include data maintenance built-into the system, whereas on-premises software requires law firms’ employees to maintain their data. Because of this, on-premises software costs less initially because you get less.

On-premises legal software costs are never static. This model requires New Jersey law firms to increase their investment in the software over time as the firm grows, and software or hardware updates are needed. These expenses can be very costly, and depending on your provider, can have a price tag upwards of $10,000.

LEAP exclusively offers consistent per user pricing, which keeps your budget planning simple, resulting in a decrease in overhead for the long term.

Universal and Mobile Features

We know that on-premises software does not include data maintenance, but it also lacks several other features such as email management, automated legal forms, and document automation.

LEAP is a great solution for New Jersey law firms with all the needed features available in one place:

Provides 24/7 online client services like online client intake, appointment scheduling, online bill payment options, and more
Integrates seamlessly with Microsoft 365, Outlook, Word, Teams, Zoom, and more
Includes free, secure document and file sharing with LawConnect
Maintains a growing library of 10,500+ automated legal forms
Provides built-in document automation for firm templates
Includes timekeeping and legal billing software integrated with leading accounting platforms like QuickBooks Online and Xero
Includes flexible, client-focused online payments through RapidPay

LEAP is also available across multiple devices, so your law firm can access cases and matters via desktop, web browser, iOS, Android, Apple watch, and Amazon Alexa.

With LEAP, you can avoid “tech bloat” or investing in a new software for each additional feature you need. Find everything in one place at a simple per user price.

Advanced Data Security and User Access Control

Data maintenance can set attorneys back from doing what they need to do, but it’s important to have data security and access control, all of which are included with LEAP.

LEAP is powered by the global leader in data security, Amazon Web Services (AWS). This allows New Jersey attorneys to focus their time on clients, while LEAP provides easy practice management, and AWS keeps everything secure. It’s difficult for IT providers to compete with the world-class security that AWS provides.

It’s never been easier to control user access with LEAP. Attorneys, paralegals, legal assistants, and other legal professionals only need one login for everything they do. LEAP allows complete control over who has access to online intake, scheduling, document management, and more. All of this can be managed from anywhere with an internet connection. Clients’ important information is accessible to anyone who needs it, and no one else.

Sustainable Foundation for Growth

With any business, there are plenty of hard decisions to make as the company grows. With on-premises software, there are even more:

Negotiating contracts with IT providers to cover increasing costs
Updating hardware to allow for more storage of data
Investing in a larger physical space to store the server(s)

LEAP makes growing your New Jersey law firm as easy as adding another user account. Data maintenance, security, and unlimited storage are all included in LEAP’s pricing model. LEAP’s cloud-based software doesn’t take up any physical space other than the device used to log in.

Law firm management has never been easier when using LEAP. New Jersey law firms that use LEAP have one all-inclusive product for working with clients digitally, and there is no longer a need to maintain their own IT.

Learn more about how to make your law firm more productive with LEAP today.

What You Need to Know About Updating Estate Plans Following Divorce

AAML NJ Administrator — Wed, 19 Jan 2022 14:56:36 GMT

By Alex Krasnomowitz and Rory Gannon | Smolin Advisory, AAML NJ Gold Sponsor

Divorce is often a stressful and time-consuming process. For family law attorneys, you may find that estate planning is the last thing on your clients' minds during their divorce proceedings. Still, it's vitally important that they update their estate plans to reflect their new situation.

Here are a few estate planning strategies you can use to help your clients protect and control their assets after a divorce.

Using Trusts to Control Assets

It's unlikely that an ex-spouse will directly inherit a client's property since divorce usually extinguishes an ex-spouse's rights under a will or other trusts. However, it's still possible that an ex-spouse could have more control over their wealth than they'd prefer, especially if they have minor children.

When a minor inherits property, that property is generally held by a custodian until the child reaches the age of majority, which may be either eighteen or 21, depending on the state. A surviving parent (including an ex-spouse) may act as the custodian in some cases—and this could allow them to make decisions about how inherited assets are spent or invested until the minor child comes of age.

Creating a trust (or several trusts) for the benefit of your client's children is an excellent way to avoid this situation. Trusts allow the grantor to appoint a trustee with authority to manage the trust's assets and make distributions. Since the grantor can choose this trustee, your client will ensure that assets within the trust won't be controlled by their ex-spouse.

Different Types of Trusts to Consider

The following types of trusts may play a valuable role in the estate planning process for recently divorced individuals.

Revocable Living Trusts

This type of trust allows grantors to arrange for the transfer of specific assets to designated beneficiaries. Revocable living trusts are commonly used to complement a will, as they allow the assets they contain to bypass the probate process.

Irrevocable Life Insurance Trusts (ILIT)

These trusts allow the grantor to remove the proceeds of their life insurance policies from their taxable estate by transferring the policies to the trust. An ILIT also allows the grantor's family to pay estate costs using the life insurance proceeds from the trust.

Credit Shelter Trusts

Credit shelter trusts can allow the grantor to maximize the benefits of the estate tax exemption and are particularly useful in cases where the grantor has children from a previous marriage and intends to ensure a new spouse's financial security.

Qualified Terminable Interest Property (QTIP) Trusts

These trusts may be helpful for clients that have divorced and then remarried. The surviving spouse will receive income from the QTIP trust until their death—after which the beneficiaries are entitled to the remainder.

Making the Right Estate Plan Revisions

The above strategies may allow your clients to exercise greater control over their estates following a divorce. If you have further questions about any of these strategies and how they may help your clients, contact our experienced accountants at any time.

Legal Briefs: Words Matter – Clarify and Define Financial Terms for the Sake of Your Settlement

AAML NJ Administrator — Wed, 12 Jan 2022 14:43:57 GMT

By Noel Capuano CPA, CFF, CVA, Principal at Friedman LLP | Friedman LLP, AAML NJ Gold Sponsor

As accountants, we are frequently asked to quantify provisions of settlement agreements. Often, this becomes necessary in post judgement situations, when the memory of the intent of the agreement - at the time it was negotiated - has “faded” and any ambiguity can provide an opportunity for disagreement. In these situations, accountants may be asked for guidance regarding the interpretation of those agreements.

In divorce matters, attorneys generally spend a great deal of time negotiating the specifics of parenting time – down to memorializing pickup times, holidays, grandparents birthday visits – all with the goal of avoiding future conflict. Unfortunately, for a variety of reasons, certain aspects of the financial settlement may not receive the same attention. Financial terms can be misused/misunderstood and/or not adequately defined; this very often leads to confusion, conflict, and post judgement litigation over the original intent of the agreement. The following terms are just a few examples of language that is often used incorrectly and/or misinterpreted. By understanding the potential for misinterpretation one can design agreements that proactively address those issues that may otherwise arise down the road.

1. Net Income

“Net Income” is defined, in the most simplistic terms, as revenue minus expenses. Revenue and expenses can legitimately vary (perhaps greatly) between the books and the tax returns. Both are “correct” but each paints a different picture. We frequently see significant confusion with regard to whether “net income” - as used in the agreement - is calculated before Perks, Owners Compensation, Draws or Distributions. Depending on the type of entity, these items (which are frequently disputed during the pendency of the divorce) may or may not be included in the determination of net income. Don’t assume the parties are informed of your definition of “net income;” include a clear definition in the agreement.

A few key considerations for defining net income: Is it before Owners Compensation/Perks? If there was a valuation performed, is the net income based on the reasonable compensation adjustment used for that valuation? The difference can be substantial, and the time taken to clearly define the specifics is well worth it.

As an example, take the situation involving a buy-out of equitable distribution based on a percentage of the “net income” reported by the business owner. There was a “floor” based on the prior three years of reported net income, which was clearly meant to be a safety net for the very situation that was to follow. The first year after the divorce, the owner increased their salary, thereby reducing net income. The spouse, who was entitled to review the annual tax returns, objected for various reasons – since net income was much lower than its historic norms. The spouse’s position was that the owner increased their salary solely to reduce the buyout, not to recognize any post-marital increase in responsibilities, etc. The spouse represented that they were not aware that officer compensation was deducted in the determination of net income, and that had they understood that, they would not have agreed to the arrangement.

Could this situation have been avoided by using more specific language? Perhaps. Had there been a discussion regarding these very issues that the spouse simply does not recall? Possibly. The inclusion of the wording that the buyout was to be based on “net income prior to Officer Compensation/Perks etc.” would have not only removed the potential for future disagreement, but also eliminated any potential “divorce-related” incentive for the owner to increase their salary. The previously referenced “floor” on which the buyout was based most likely accomplished the same outcome, however, the spouse clearly did not understand that and the outcome was post-judgment litigation and additional attorney/expert fees.

2. Net Proceeds from Sale

In a situation where a residence or other asset is sold and the “net proceeds” are to be divided between spouses, there should be a clear stipulation as to specifically how net proceeds is defined.

For example, consider a recent case in which a vacation home that was deeded to the wife was to be sold shortly AFTER the divorce, with the “net proceeds” to be split equally thereafter. (Remember a second home is not eligible for the exclusion of the gain). In this situation, the sale would be reported on the wife’s individual tax return in the year following the divorce; as such, any potential gain would be reported by the wife as well.

The husband, based on consultation with his tax advisor, was of the impression that he would not be responsible for any tax on the potential gain because a) the sale would be reported on the wife’s tax return and b) he was not on the deed. Based on the wording of the settlement agreement which referenced “net proceeds,” that was not clear. The fact that the sale would be reported on the husband’s individual tax return is more a formality, and practitioners unfamiliar with divorce negotiations can often over simplify the impact of the “mechanics” on the intent of the agreement. Since the tax to be paid was not insignificant, it is unlikely that the agreement did NOT intend for the “net proceeds” to include a provision for the associated tax liability as the property was going to be sold as part of the divorce and said tax was easily quantified (see below regarding situations in which this is not the case).

3. “Net of Tax”

Unlike the prior example, where the tax burden on a sale can be relatively easy to determine, other situations can pose a myriad of more nuanced issues. These situations often involve a spouse’s continued “participation” in a future benefit stream. For example, where a spouse may have stock based compensation that will vest in the future or where they are owners in a pass-through entity from which they receive distributions. In these instances, the recipient/owner spouse will incur a tax liability that most would agree the payee spouse should share in some way. This is where very specific language can be of great benefit in avoiding future conflicts. Limiting the reference to “net of tax” can lead to a variety of interpretations, and in turn, significantly different conclusions. Will there be an agreed-upon “effective” rate used? Will there be an accountant appointed to prepare a more “exact” computation of the tax liability attributable to the specific income source to which the recipient spouse is entitled? Considering that taxes are often paid, at least in part, the year AFTER the “income” is received, is there a matching of taxes paid to income received? The possibilities are numerous, and while it is often desirable to keep things simple, the mechanism for doing that is to make sure the agreement is as detailed and specific as possible.

There is no such thing as a perfect agreement. Having your financial professionals review the language before the final settlement may ultimately save legal and accounting in the long term. If you have any questions about the financial language within a proposed or pending agreement, contact a Friedman professional today.

4 Ways LEAP Makes New Jersey Law Firms More Productive

AAML NJ Administrator — Mon, 20 Dec 2021 21:00:00 GMT

By Kelly Clifford, Vice President, Sales | LEAP Legal Software, AAML NJ Silver Sponsor

Advancements in legal technology are helping New Jersey law firms rethink how they run their businesses. Many legal professionals are shifting their focus to “practice productivity” to enhance quality legal services, improve operational efficiencies, and grow their firms.

Here are four ways that LEAP helps New Jersey law firms, just like yours, become more productive:

1. Using Automation to Eliminate Inefficiencies

LEAP enables New Jersey legal professionals to rely on technology for work like client intake, opening and managing mat ters, and completing legal forms. A prospective client will complete online intake through the LEAP Web Portal and the matter is automatically pre-configured based on area of law and jurisdiction, without any manual setup.

One of the most popular automation features in LEAP is document assembly. A court form library, with thousands of forms and templates, is readily available for New Jersey law firms. This library includes popular legal forms like Seller’s Residency Certification, 1099-S Reporting, Certification of Insurance Coverage, Summons (Divorce), Affidavit of Title- Individual or Married Couple, Case Management Order, and more. The forms are instantly pre-filled with information directly from the electronic matter. This eliminates any time spent searching for forms and entering information in multiple places to complete a document.

The latest version, LEAP 2.3, also includes a Clause Library so that New Jersey attorneys can add their most used clauses with only one click.

2. Organizing Information in One Place

Law firm staff often spend too much time trying to find sticky notes, following up with colleagues for updates, and switching between multiple computer systems to work on a matter. LEAP eliminates all this hassle by keeping all matter information, files, correspondence, and financial records in one place.

LEAP also leverages Amazon Web Services, with 99.99% uptime, to provide a secure and modern database for easy access to information and “one version of the truth.” LEAP is a cloud-based legal practice productivity solution that eliminates time being spent on dealing with data corruption, server downtime, managing IT resources, and more. The time saved from these types of tasks can be spent on being productive in other areas of the firm, like business development.

3. Ensuring Critical Deadlines are Met

The latest version of LEAP allows New Jersey attorneys and litigators to streamline how they manage different matters with critical court dates and legal deadlines. A seamless integration with LawToolBox allows law firms to map critical dates, pre-set from the court, and calculate them according to LEAP matters.

This workflow allows legal professionals to stay on top of complex legal cases with critical due dates so they never miss a deadline. It also protects New Jersey law firms from legal malpractice risks. With LEAP and LawToolBox, attorneys have peace of mind and can easily calculate, create, and track legal deadlines with only a few clicks.

4. Keeping Your Law Firm in Your Pocket

Technology is changing the traditional work model and allowing consumers to have healthcare, banking, and legal services readily available to them from anywhere. This ease of access to information is creating greater expectations from consumers who are paying for these types of services.

New Jersey law firms are getting more inquiries, questions, comments, and more at all different times of the day. To keep up with the demand, it’s imperative for law firms to adopt a work model that allows for staff to have flexibility to work from anywhere. The LEAP Mobile App keeps New Jersey legal professionals productive while away from their desks, enabling them to easily correspond with clients, access files, scan documents, instantly capture billable time, and more.

With the latest version of LEAP, New Jersey law firms will also benefit from an updated user interface making the mobile app even more intuitive with dashboard overviews for matter details.

LEAP is the legal practice productivity solution helping New Jersey law firms exceed client expectations, enhance work efficiencies, and be more profitable. Learn more about how to make your firm productive by visiting www.leap.us/new-jersey/ and schedule a time to meet with a productivity specialist.

Divorcing and Want to Keep the House?

AAML NJ Administrator — Mon, 20 Dec 2021 14:57:56 GMT

By Carla Fried | Guaranteed Rate

Separate emotion from your financial well-being and make a new plan

During a divorce, it can make all the emotional sense in the world to want to hold on to the house. You love it. You don’t want to add to the tumult younger kids already feel by adding a disruptive move. You simply can’t imagine uprooting.

But holding on to the home can be financially risky. Sure, your lawyers will work with you to come up with an equitable split of assets if you keep the house. That’s not the main problem. It’s everything that comes after the divorce.

Can you afford to refinance? If the home isn’t paid off, you will need to take out a new mortgage. Everything peachy with your soon-to-be ex? Perhaps you’re (both) thinking it’s no problem to just keep the existing mortgage? That’s setting you up for problems down the line. Your relationship may change. And it leaves you legally exposed to each other: If your ex gets sued, the home could be exposed.

Are you relying on alimony to keep the house? If you can’t cover all your housing costs from your own income, think twice about staying put. What if your ex loses a job? Or falls behind in payments?

Do you really have the cash flow to handle taxes, insurance and maintenance? Property tax is an especially big issue if you live in a state with high income tax and home values. The tax reform package that went into effect in 2018 sharply limits the total amount of state and local taxes you can deduct on your federal return. That effectively has raised the cost of home ownership in pricey states with pricey homes.

Will it be affordable in retirement? If you are within 10 or so years of retirement, you need to think long and hard about this. Yes, there are reverse mortgages, but taking out a reverse mortgage in your 60s or early 70s because you can’t otherwise afford to keep the home is a sign that you in fact can’t afford to keep the home.

Agreeing to sell the house today could do wonders for your later years. If you downsize, you can reduce your living costs, and perhaps your share of a home sale can plump up your retirement savings. Let’s say the two of you sell the big house, you’re able to downsize, and you pocket $100,000 to invest. At 7% compounded annually, you’d have roughly $195,000 more in savings in 10 years.

Given all the moving pieces you will be considering, it can be helpful to get an expert’s insight on how best to think about keeping or not keeping the home. A certified divorce financial analyst is trained to help you – and your divorce attorney – understand how decisions made today will play out in the future.

LV vs RS 347 NJ Super 33 Child Support as a Child's Right: L.V. v. R.S.

AAML NJ Administrator — Fri, 17 Dec 2021 14:33:34 GMT

By Jeralyn Lawrence, AAML NJ Chapter President

The principle that child support belongs to the child and not to the custodial parent is firmly established in New Jersey law. As a result, the misconduct or failures of their custodial parent may not be used to unduly burden children or deprive them of necessary support. This principle has come up for discussion on multiple occasions, especially in cases relating to child support claims filed later in the child's growth and development and after they have been estranged from the non-custodial parent for a significant period of time. One such case, L.V. v. R.S, 347 N.J. Super. 33, 788 A.2d 881 (N.J. Super. 2002), decided by the Appellate Division in 2002, has become a widely-cited precedent, especially when a noncustodial parent seeks to rely on the delay of the custodial parent to bar the collection of child support.

The doctrine of laches applies to bar claims or allow for relief when one party has engaged in a "delay for a length of time which, unexplained and unexcused, is unreasonable under the circumstances and has been prejudicial to the other party." W. Jersey Title & Guar. Co. v. Indus. Trust Co., 27 N.J. 144, 153 (1958). Therefore, in theory, and in practice in several cases, it has been relied upon in order to deny an action for child support many years after the birth of the child. Unlike a statute of limitations, laches is an equitable principle, and the court may exercise discretion as to what type of delay is unreasonable and thereby bar relief.

As noted in L.V. v. R.S., "Laches is an equitable doctrine which penalizes knowing inaction by a party with a legal right from enforcing that right after passage of such a period of time that prejudice has resulted to the other parents so that it would be inequitable to enforce the right." (347 N.J. Super. at 39)
However, as noted by the Appellate Division, "[s]ince welfare of children is a paramount concern, a public policy conflict arises from the application of the equitable doctrine of laches to a demand for child support." (L.V., 347 N.J. Super. at 40). The Appellate Division has repeatedly ruled that the application of the principle of laches to child support matters is closely circumscribed and that, even if it may be applied to actions by the custodial parent, that principle may not carry over to a claim by the minor child themselves.

Facts of the Case

In L.V. v. R.S., the plaintiff, who was the mother of the child and her custodial parent, appealed to the Appellate Division after the lower court denied her application for child support after a trial. The application was filed on behalf of her daughter Michelle in 1998 when Michelle was 16. The case began by seeking a paternity adjudication as well as a child support order, but the defendant, R.S., conceded that he was the father of Michelle after a genetic test established paternity with 99.99% confidence.

During the case, a pendente lite child support order was entered against the defendant for support of $183 paid weekly via wage garnishment, although its enforcement was deferred until the case was heard. The current wife of the defendant also filed a counterclaim against L.V., stating that she and R.S. had agreed to waive claims for child support, and the two claims were consolidated. The two parents, who were never married, had an off-and-on relationship between 1978 and 1981; in April of 1981, after their relationship had ended, L.V. and R.S. engaged in sexual intercourse. L.V. informed R.S. that she was pregnant with his child, and he sent her $100 for expenses.

Michelle was born in 1982, and her birth certificate named only the mother as her parent. L.V. testified that she did not want any contact with R.S. nor did she want his involvement in their daughter's life. They had little to no contact in the ensuing years, although R.S. sent L.V. a letter when Michelle was 7 years old, providing contact information and apologizing for past misconduct. L.V. did not respond to the letter or seek child support, although she stated that she was aware of how to file a child support action.

When Michelle was 16, she sought to find her father, using the internet and other public information. Eventually, Michelle found R.S.'s brother, who provided her with R.S.'s email account. Michelle and R.S. began communicating via email, sharing details of their lives and current photographs; during these email conversations, R.S. referred to himself as "Dad." L.V. called R.S. at work after learning of the conversations, and Michelle expressed that she was angry at her mother for doing this. After the conversations progressed over several months, Michelle asked R.S. for his address. He provided his work address but not his home address. However, Michelle told him that she already had found his address on her own.

At the trial, Michelle stated that she had asked for the address to file a child support application but said she did not start the relationship with her father for that reason. After R.S. received notification of the support claim, he angrily responded to Michelle, who responded in kind, ending the several months of friendly communication over email. The trial court judge denied L.V.'s support claim on the basis of laches, noting that L.V. did not want R.S. to be part of Michelle's life for many years and that, after their arguments following the support application, they would be unable to establish a bond.

In terms of any claim by L.V. herself, the Appellate Division agreed that the finding was fair. "While laches does not arise from delay alone, the actions and non-actions of the plaintiff are sufficient to justify the bar of laches to deny her any claim for reimbursement. The record shows that she was aware of procedures to obtain child support and to locate the defendant but chose not to do so in order to inhibit any daughter-father relationship." However, the court differentiated between any monetary award to L.V. and the rights of Michelle to make a claim for ongoing support moving forward. Specifically, the court held that "there is no basis to impute to a child the custodial parent's negligence, purposeful delay or obstinancy so as to vitiate the child's independent right of support from a natural parent." (Id. at 40)

The New Jersey Parentage Act provides recognition of the child's independent right to seek support or paternity, even if the action is filed by another on behalf of the child. Further, "a child is barred from relief by a prior paternity action only if the mother fully represented the child's right in the prior proceeding." (Id.)
Therefore, the Appellate Division reversed the trial court's findings and remanded for further proceedings. Specifically, the court noted, "We see no reason why he should not be compelled to support her in spite of plaintiff's actions. As her father, he owes her the duty of support regardless of the quality of their relationship. There is no such tilting of an equitable balance to deprive his daughter of on-going support." (Id.) The date of support would extend from the filing of the complaint to the daughter's emancipation, but the plaintiff could not seek retroactive child support prior to that date.

Child's Right to Support

Despite the acts of Michelle's mother, which may have severely hampered the father-daughter relationship and in fact prevented Michelle from benefiting from financial support from her father prior to the age of 16, the Appellate Division was clear that the child would not lose her rights as a result of the actions or inaction of her parent. This has been one of the enduring legacies of this case, which has been cited dozens of times in ensuing actions. While the acts of the custodial parent may bar that parent from a later claim, they do not prevent the child from enforcing his or her own interests, especially when, as is the case here, the child is clearly old enough to understand the action and express her own needs and wants.

The case also highlights another key principle in New Jersey's child support jurisprudence: The right to support cannot be waived on behalf of the child by the parent. This comes up not only in cases like L.V. v. R.S., where one parent is estranged for many years but also in cases where parties seek to make agreements that do not require child support to be paid by one parent or where parents seek to extinguish child support obligations as part of a property settlement agreement during a divorce. "The purpose of child support is to benefit children, not to protect or support either parent. Our courts have repeatedly recognized that the right to child support belongs to the child, not the custodial parent." J.S. v. L.S., 389 N.J. Super. 200, 205 (App. Div. 2006)

The Appellate Division distinguished the case from two prior cases in which laches was used to deny a child support claim. In State v. Volk, 280 N.J. Super. 57, 654 A.2d 500 (App. Div. 1995), the Appellate Division held that laches barred a claim for child support which had remained dormant for nine years after the mother and child relocated to Virginia. In the Volk case, no contact had been reestablished between the father and the child, and the prior pending claim had been dismissed after the family moved. Still, the court noted that the child may have an independent claim for support that could potentially be taken up by a guardian at litem.

Previously, in Moore v. Hafeeza, 212 N.J. Super. 399 (Ch. Div. 1986), the Appellate Division denied a plaintiff's action for support 15 years after a previous claim had been dismissed when filed by the Board of Social Services. The claim was dismissed on the grounds of res judicata and collateral estoppel, but the court noted that laches was an alternative grounds for dismissal.

However, in L.V. v. R.S., there was no prior dismissed action, and contact, however fleeting, had been reestablished between parent and child. The Court noted, "however sharp the serpent's tooth, an ungrateful child does not relieve a parent of the duty of support ...To the extent that either Volk or Hafeeza may be read to indicate that laches of the custodial parent may vitiate a child's right of on-going support, we disapprove and decline to follow such a holding." (L.V. , 347 N.J. Super. at 43)

Implications for Practitioners

L.V. v. R.S. is a widely cited case in a number of New Jersey family law matters, ranging from the right of a child to pursue support to the applicability of laches in child custody, support, or paternity issues. Even when a custodial parent has engaged in some form of wrongdoing or may be barred from seeking a claim against the other parent, this does not extinguish the rights of the child. Further, if the claim could be made in the case of the custodial parent's abandonment or death, it is likely that the claim can still be made by the child in their own interest. Even when the fault of one party may be relevant to property division or spousal support in a divorce action, it is not relevant to child support, as it is the right of the child and not of either parent. This means that children may be able to pursue claims for child support, even after lengthy estrangement and even if their custodial parent is partially or wholly at fault for the estrangement itself.

Further, the principles underlying the case serve as another reminder that parents may not contract away their children's right to support, whether through a property settlement agreement or another form of contract negotiated between them. The child would retain their rights and may be able to file a claim at a later date. Similarly, children may have a right to intervene in their own interests against both of their parents in marital settlement agreements and divorce proceedings. When constructing a marital settlement of any kind, it is important to explicitly provide for suitable child support, even if this means altering other aspects of the agreement in order to make it clear that the children's interests were not harmed in any future review.

Podcast: Divorce Tax Considerations at Year End and Beyond

AAML NJ Administrator — Thu, 16 Dec 2021 17:28:58 GMT

By Rachel Leberstien, Senior Wealth Relationship Manager and Sharon Klein, President, Family Wealth, Eastern U.S. Region and head of the National Divorce/Matrimonial Advisory Practice | Wilmington Trust, AAML NJ Silver Sponsor.

As the year comes to an end, your clients face key tax considerations.Your client’s marital status, alimony payments and other divorce related issues can impact their end of year planning, and beyond. Listen as Rachel Leberstein discusses Divorce Tax Considerations at Year End and Beyond with Sharon Klein.

For more information, reach out to Sharon Klein at 212-415-0531 or sklein@wilmingtontrust.com.

A Business Owner’s Prerogative: Why Market Rate Rent Adjustments are Necessary in Business Valuations

AAML NJ Administrator — Mon, 13 Dec 2021 15:07:07 GMT

By Jasmina Woodson | Withum, AAML NJ Gold Sponsor.

As business appraisers, we often have conversations like this:

Business Owner: These amounts were actually paid! Aren’t I entitled to make decisions regarding my company’s operations that will benefit me?

Appraiser: When it comes to business valuation, not exactly…and here is why.

A key step in preparing a business valuation under the Income Approach to value is determining the income stream a business would earn if it was managed by an independent party whose objective was to report the highest amount of earnings for the business. We call these earnings “normalized earnings”. Often, in matrimonial matters we deal with the owners of closely held businesses, whose goal is to lower reported earnings in order to reduce taxes. Because these owners typically have the discretion to adjust the operations of the business to achieve their goal, the appraiser must assess the business’ financials (tax returns, financial statements, detailed general ledgers, etc.) to determine what, if any, adjustments are needed to normalize earnings (i.e., what the company would have earned if managed by the unrelated party described above). Some of the more common normalization adjustments are reasonable compensation, personal expenses (perquisites), unreported income and expenses, and extraordinary or non-recurring items.

However, when valuing the subject interest of a business the appraiser must also consider all related party transactions. One such transaction is rent for the business premises. Most businesses need to rent space for operations or at the least, storage. There are instances, particularly with closely held businesses, in which this property is owned by 1) the business itself, 2) one or more owners of the business, either personally or through a real estate holding company, or 3) a related party of one or more of the business owners (i.e., relative, friend, business partner, etc.). In any of these situations the business appraiser has to assess if the rent paid by the business is at the market rate. For many reasons it may be above or below what is considered market rate. The following examples illustrate some of the motivations for business owners not to pay market rate rent.

As discussed above, for tax purposes the owner(s) of the business may increase the rent expense to reduce reported earnings.
The mortgage and expenses related to the property exceed what would be collected as rental income using market rate rent. As a result, the business pays an inflated rent expense to cover any shortfall.
The business is not earning enough to pay market rate rent; thus, the rental expense is reduced.

In order to calculate the normalized earnings, when the business is not paying market rate rent because the property being leased is owned by a related party or entity, the appraiser should consider making a normalization adjustment. To effectuate this market rate rent adjustment the appraiser typically relies on the following sources of information:

Real Estate Appraisals - The real estate appraisal performed by an independent third-party real estate appraiser may contain the market rate rent for the property. This information is available if the real estate appraiser considered an income approach in their valuation.
Lease Agreements with 3^rd Parties - Another source of information is a lease agreement with an unrelated party. If the property has multiple occupants and one or more are unrelated, the lease agreements with those tenants can be used as an indication of the property’s market rate rent.
Online Data –The appraiser can also perform a search of reputable websites for the rental rates of comparable properties to determine the market rate rent based on the square footage and type of space utilized.

So, overall, how does the market rate rent adjustment impact your client? Without considering any of the other factors that go into preparing a business valuation, if the business owner is paying rent in excess of market rate, then an adjustment to market rate rent will decrease expenses and increase earnings and the value of the business. Conversely, if the business owner is paying less than market rate rent, then the adjustment will increase expenses and decrease earnings and thus, lower the value of the business.

Key Takeaways

What is a Market Rate Rent Adjustment?

The market rate rent adjustment is a normalization adjustment used when preparing business valuations in which the company pays above or below market rent to a related party or entity.

Why do appraisers make this adjustment?

Using the Income Approach to value, the market rate rent adjustment is made to normalize earnings so that the earnings represent those of a business managed by an independent party whose goal is to maximize profits.

How does this adjustment impact the business valuation?

With all other factors of business valuation remaining constant, if the business is paying more than market rate rent, the adjustment will result in an increase in earnings and an increase in the value of the business. If the business is paying less than market rate rent, then an adjustment will result in a decrease in earnings and a decrease in the value of the business.

Marital Lifestyle/Spending Analyses - The Obvious and The Not-So-Obvious

AAML NJ Administrator — Wed, 08 Dec 2021 16:46:45 GMT

By Kriste Rodriguez, CPA/ABV | EisnerAmper, AAML NJ Gold Sponsor

Often times, marital lifestyle/spending analyses are required in order to assist judges and attorneys in developing the amount of support to be paid to one party. The analysis is time consuming, tedious and costly but necessary. The process includes: 1) inputting transactions from the parties’ bank, brokerage, savings, and credit card statements for a certain period of time depending on the issues of the case; 2) categorizing the data into Case Information Statement (“CIS”) categories; and 3) totaling the categories by year. The analysis will show the total amount spent from the accounts for each CIS category. However, the analysis can identify so much more than the obvious!

Uncover Hidden Assets

Once the data has been entered from the statements, each transaction must be traced and verified. Any unidentified transaction can lead to the discovery of hidden assets. For example, the identification of an unknown transfer can discover an undisclosed account. Large withdrawals or checks payable to cash for large amounts can reveal potential undisclosed accounts. Alternatively, it can potentially mean that one party is diverting funds to third parties, in an effort to “hide” money.

Payments that appear to be legitimate can bring light to something much more. Take for example a single payment to a homeowners’ association. This would seem normal to most; however, if the homeowners’ association is something that one of the parties is not familiar with, it could lead to a hidden asset. This single nominal payment could reveal the purchase of a home by one of the parties without the others’ consent or knowledge.

Dissipation of Assets

Often times, infidelity is the reason why the parties are divorcing and there may be suspicion that monies have been spent on the paramour. A spending analysis may prove the amount spent on the paramour, which could result in a credit to the other party.

“Gaps” or “Holes” in Spending

Identifying holes in spending can imply numerous red flags. Unusually low or no spending in certain categories such as food and home supplies, restaurants, clothing and fuel can indicate that these items are paid for in cash. The payment in cash for expenditures can indicate any of the following:

Cash as a source of income;
Implication that these expenses are paid through an owned business;
Implication that there may be other accounts that weren’t disclosed where these expenses could be paid from.

Indication of Other Sources of Income

A marital SPENDING analysis is more than just that! This type of analysis can also reveal undisclosed income sources. An analysis of the inflows into the accounts could identify deposits for which the source is unknown to one of the parties, thereby indicating another source of income that must be identified by the other party in order to account for the amount when calculating support.

The analysis can also indicate that the parties are spending well in excess of their disclosed income. If the spending exceeds the disclosed income and is not reconciled through inheritances, loans, debt balances, gifts. etc., then this could imply that the spending is being funded from an undisclosed source of income.

As can be seen from the foregoing, although the analysis is timely and at times costly, the red flags that the analysis can reveal can produce benefits that can significantly outweigh the time and cost!

Process Service via Social Media in Matrimonial Law

AAML NJ Administrator — Mon, 06 Dec 2021 15:56:22 GMT

By Alana Gibson Chief Operating Officer | DGR, AAML NJ Silver Sponsor

You’ve been served—by Facebook.

While personal service is still the gold standard of service of process, electronic service of process via social media has become much more commonplace over the years. Back in 2011, a judge approved the first case of alternative service via Facebook after a defendant in a divorce case couldn’t be located or contacted through postal mail. Since then, we’ve noticed a significant uptick in court orders for alternate service by social media coming into our office from throughout the country.

Here’s what you need to know about the background of these requests and what to expect.

Social media can be an effective form of alternate service

When a spouse simply walks out on their marriage without providing a new address or is evading service, the legal processes for divorce get complicated. Without a known address, personal service becomes much more difficult. Social media provides an opportunity for an alternate method of service that’s likely to reach the recipient.

When the individual to be served has left the country, international process service is the next option for service. This means going through either formal or informal methods depending on the need to enforce a judgment. However, another option when not seeking to collect a judgment aside from service via agent could be social media service when appropriate according to the rules of each country.

These conditions can make service by social media a better option. After all, as the court stated in Noel B. v. Anna Maria, Facebook has no geographical constraints and currently has 2.91 billion active monthly users, with almost 90% outside of the US and Canada.

But service via social media isn’t just for international service. Since the early 2010s, there have been numerous cases that have established firm precedent for alternative service via social media in cases pertaining to matrimonial law.

For example, in Baidoo v. Blood-Dzraku, the application for alternative service was submitted under a New York rule that permitted a court to order any method of service that was appropriate for a case’s circumstances, as long as it could be shown that other options were “impracticable.”

Due process requires any service method devised by a court to be reasonably calculated to notify the defendant of the court proceedings. As noted in Baidoo, publication service, though it has long been permitted, usually doesn’t provide a reasonable probability of actual notice.

Presiding New York Supreme Justice Matthew Cooper even commented on the common use of publication in the Irish Echo and New York Law Journal in New York County in his opinion, saying, “If that were to be done here, the chances of the defendant, who is neither a lawyer nor Irish, ever seeing the summons in print, either in those particular newspapers or in any other, are slim to none.”

Given that reality, when service by publication is the last available option, it begs the question whether service via social media may in fact be the better choice.

Requesting alternate service

In New Jersey, a family court plaintiff can request permission from the court to use an alternative method of service if a spouse has no known address. This is usually either substituted service by a third party who can serve divorce papers to the defendant; or service by publication, usually in a newspaper in the county where the action is filed.

Before a court will permit the request, however, the plaintiff must provide an affidavit of diligent inquiry that demonstrates the completion of specific efforts to locate the spouse. Even after years of court precedent, personal service is the preferred method for service of process by far. If there’s a known address or ability to conduct an investigation to locate a new address for an individual, courts still require that the established steps of due process are followed prior to approving service via Facebook.

When seeking alternate service via Facebook or any other social media platform, it’s important to have conducted the appropriate due diligence prior to requesting. This includes searching for forwarding addresses, potentially bringing in a private investigator, and more.

Pursuing service through social media

In cases where service via social media has been ordered, the judges clearly articulated that they viewed this method as useful and were unopposed to bringing technology into legal practice when necessary.

In each case where service via social media has been ordered, there were several things the courts looked for prior to approving the request:

Is this the right individual?

Many critics of the practice of service via social media point out that it’s easy to create fake accounts. This is true—and it means that it’s important to do the necessary research. Clients should be prepared to submit affidavits of communications with the defendant through that account. If that’s not available, then other concrete evidence the account belongs to the defendant should be produced, such as regularly posting pictures of daily activities or updates containing information that’s not common knowledge.

Why is social media a better method than others?

This goes back to the need to attempt personal service first. This type of service will only be approved once other options have been exhausted.

In Baidoo v. Blood-Dzraku, the wife sought a divorce from her husband whom she didn’t live with or see for five years after the marriage. Serious attempts were made to locate the husband.

After moving in 2011, the post office had no forwarding address for him.
His pre-paid cell phone company was contacted and an investigator was hired to locate him.

These efforts failed to turn up an address for him. In situations where there’s clearly no other way to effectuate service, service by Facebook would seem to be a logical path forward given that the wife and husband communicated regularly on Facebook Messenger.

Can we be sure they will receive notice?

Receiving notice and establishing jurisdiction are key elements of service of process. The courts want to be confident that an individual is likely to receive the documents. That’s why it’s important to have proof that a subject regularly uses their social media account, whether it’s for using direct messages, posting updates, or interacting with other account users.

Account authentication is key

As noted above, fake accounts are a real concern when it comes to service of process via social media. The Baidoo court addressed this by requiring the plaintiff to submit an affidavit verifying that the defendant owned the account in question.

She provided copies of messages between herself and the defendant and identified photos of the defendant on the account. While this wasn’t absolute proof of ownership, the court determined that it was sufficiently persuasive.

The court also required her to show that the defendant logged into the account on a regular basis. Another step the court took to ensure that the account was legitimate and belonged to the defendant was to require that the notice be posted three times, at weekly intervals. The plaintiff also had an active mobile phone number for the defendant, making voice mail and/or text available as a backup notification method.

While the effort required to authenticate account ownership and ongoing use is significant, it doesn’t appear to be more strenuous than the work that goes into getting service via publication approved and completed. What’s more, in most cases it’s likely more effective.

Pitfalls of e-service

Service of process via social media has its pitfalls. It’s possible that an account is fake, or that the owner stops using the account, or that a message might go to the wrong person. However, the measures used in Baidoo offer a degree of security. It’s also important to point out that the method under discussion is Facebook’s private instant messaging service, Facebook Messenger, and not a public post.

When a private message is opened on Facebook Messenger, Facebook provides a “seen” message with the time and day the message was received. It is of course still not possible to prove that the person who saw it was the account owner—for example, a friend or family member may have access to a defendant’s account and open the message. This is also the case with email.

For these reasons, e-service is by nature less reliable than personal service or mail service with return receipt requested. Even considering these pitfalls, though, notification by instant message seems to be more reliable in this day and age than notification via publication.

What’s more, not all cases will get approved. Take Fortunato v. Chase as an example. Fortunato claimed the credit card debt in her name was actually accrued by her estranged daughter. In an effort to implead the daughter on the suit, Chase was unable to locate an address and requested to effect service through Facebook. Yet the court denied the request, stating there wasn’t enough evidence that the profile belonged to the correct individual and “the Court’s understanding is that anyone can make a Facebook profile using real, fake or incomplete information.”

Looking forward

Service of process via Facebook as an alternate service method has become more widely accepted these days, and its use suggests that it’s a more effective option than service by publication. Prior to pursuing this service method, however, it’s critical to demonstrate necessary due diligence in attempts at personal service as well as proof of ownership and frequent use of the Facebook account.

What Do You Need to Show for Discovery on a Cohabitation Claim? (Wajda v. Wajda, April 2020)

Alexandra Loukeris — Mon, 08 Nov 2021 21:18:26 GMT

By Jeralyn Lawrence, AAML NJ Chapter President

Alimony allows former spouses who were financially dependent on their partners during their marriage to meet their own needs. It takes into account the economic entanglement that the two people had. Therefore, the resources of the former spouses, the marital standard of living, and the age and health of both parties, along with the duration of the marriage, have long been substantial factors in determining an alimony award.

When circumstances change, an alimony order may also change. This means if one party's income changes significantly, it may be a reason to reevaluate or terminate the obligation. In New Jersey, alimony may also be terminated when the recipient remarries or cohabitates with another partner.

In the past, while it was clear that remarriage terminates an obligation to pay alimony, some recipients have chosen to live in marital-like situations with combined finances but without a legal marriage in order to preserve their alimony. Therefore, the question of when cohabitation similar to marriage emerges has become a subject of disputes between former spouses when alimony has been ordered.

In 2014, an amendment to the state's alimony statute (N.J.S.A. 2A:32-23n) laid out specific factors to be considered in order to determine when cohabitation is present sufficient to cause the termination of alimony. One unpublished 2020 case considered by the Appellate Division, Wajda v. Wajda, lays out some guidance about how the Appellate Division views what is needed for a movant to present a prima facie case of cohabitation sufficient to receive discovery or move forward to a plenary hearing.

Ending Alimony for Cohabitation in New Jersey

Prior to the 2014 legislative reform, several cases established principles on which alimony could be ended when the recipient became seriously involved with another partner, even without a remarriage. The 2014 reform aimed to codify and clarify the factors that could lead to a determination of cohabitation. Cohabitation under the law does not necessarily require the couple to reside in one household, but it is defined as an "intimate, mutually supportive personal relationship wherein a couple shares duties and privileges typically associated with marriage or a civil union."

Overall, courts reviewing these types of petitions focus on the financial aspects of cohabitation, which may be considered to differentiate cohabitation from a dating relationship. A dating relationship is not a sufficient reason to terminate alimony, while the "marriage-like" relationship of cohabitation is sufficient. The elements laid out in the statute that point toward cohabitation are the following:

Intertwined finances such as joint bank accounts and other joint holdings or liabilities;
Shared or joint responsibility for living expenses;
Recognition of the relationship in the couple's social and family circle;
Living together, the frequency of contact, the duration of the relationship, and other indicia of a mutually supportive intimate personal relationship;
Sharing household chores;
Whether the recipient of alimony has received an enforceable promise of support from another person within the meaning of subsection h. of N.J.S.A. 25:1-5; and
All other relevant evidence.

In order to move a petition for termination forward to discovery, a movant must make out a prima facie case for cohabitation. It is not necessary to show that all of the above factors are present in order to make a case for cohabitation, and the definition includes both emotional elements like recognition of the relationship, living together, and sharing lives as well as primarily financial elements such as joint liabilities and joint budgeting. However, the financial elements may provide the clearest demonstration of a difference between cohabitation and a dating relationship, both of which are often public and supportive.
At the same time, these are the most difficult elements to prove without some access to discovery. People are generally not in the habit of sharing their personal financial decisions, so while a movant may be able to show photos of a couple traveling together, it may be very difficult to present any evidence of intertwined finances without access to discovery.

It should be noted here that a prima facie case does not necessarily require extensive evidence. A prima facie case is one that is "sufficient to establish a fact or raise a presumption unless disproved or rebutted; based on what seems to be true on first examination, even though it may later be proved to be untrue." (Black's Law Dictionary). It is therefore unnecessary for a movant to prove cohabitation in fact in order to make out a prima facie case.

Wajda v. Wajda

In 2019, the Appellate Division ruled in Landau v. Landau (461 N.J. Super. 107, 218 A.3d 823 (N.J. Super. 2019)) that applicants seeking a termination of their alimony obligations must establish a prima facie case for cohabitation in order to proceed with discovery. However, the court did not specify what type of evidence or how much was sufficient to make out such a case, nor did it evaluate any presented evidence of cohabitation on the merits.

The Landau court reversed a trial court decision granting discovery to an ex-husband and alimony payor who argued that his ex-wife and her new boyfriend traveled together and enjoyed a shared social life, noting that the two maintained separate homes but often slept at each other's home. The Appellate Division reversed the discovery order on the basis of the privacy rights of the supported spouse in her private relationships because the court did not state that a prima facie case was made While the court indicated that discovery could not be used to make a prima facie case where none existed, it did not spell out which elements movants needed to meet in order to make out such a case.

Wajda v. Wajda, decided approximately 7 months later on April 23, 2020, was an unreported and therefore non-precedential decision of the Appellate Division. Here, the Appellate Division reversed a trial court judge who had denied discovery and found that the movant did not make a prima facie showing of cohabitation. In the Wajda case, the movant presented a certification stating that his former wife's new boyfriend often stayed in the ex-wife's home, alleging that they had established cohabitation.

The payor paid $425 in alimony weekly to his ex-wife, and he presented a report by a private investigator detailing the above assertions. In response, the ex-wife said that her boyfriend lived in New York and only stayed with her and that they did not share joint finances. As the court noted, "The report also indicated that A.S. remained in the home when defendant was not present and when the parties' daughter was there, kept his car there, often drove defendant's car, did some household chores, and kept his two dogs there."

The Appellate Division did not rule on the merits of the underlying cohabitation claim. However, it overturned the trial court, affirming that the movant had made a sufficient showing to warrant further discovery and thus a prima facie case. The Appellate Division recognized that it would be nearly impossible to address the economic factors of cohabitation without moving forward to discovery, ordering the case to be returned to the trial level for further proceedings. "We recognize the difficulties of developing proofs of things such as intertwined finances, joint bank accounts, shared living expenses and household chores, and recognition of the relationship in the couple's social and family circle, without either invading a former spouse's privacy or taking some discovery on the issue... The question is whether plaintiff made a sufficient showing to warrant further discovery. We think he did." The court, however, did not explicitly address the issue of what was necessary for a movant to make out a prima facie case.

After Wajda: The Temple Decision

The Appellate Division's later decision in Temple v. Temple (A-0293-20 (N.J. Super. Jun. 17, 2021)) provided much greater clarity to movants seeking to terminate an alimony obligation on the basis of cohabitation and move forward to a plenary hearing on their case. The decision in Temple, which reiterates many of the principles expressed in the Wajda decision, was originally issued as unpublished but was later published, becoming binding authority in New Jersey alimony cases.

In the Temple case, the Appellate Division once again dealt with a situation where a trial court had erroneously denied further discovery to a movant who had laid out a claim to terminate alimony on the basis of cohabitation. The payor alleged that his ex-wife had been in a relationship with the same person for 14 years, during which her new partner had referred to her as his wife, that the couple lived together, and that they shared a common lifestyle. However, the trial court denied the ex-husband's petition for further discovery because his petition did not address all six of the enumerated factors in the statutory definition of cohabitation.

The Temple court noted, as the Wajda court had prior, that it was extraordinarily difficult for movants to make out any claim regarding the financial elements of cohabitation without a successful motion for discovery. Requiring such at the motion level would make a successful claim "as rare as a unicorn," the Appellate Division noted in their decision. The court held that the trial court was incorrect in requiring movants to make a showing of all six factors for cohabitation before being granted discovery on the basis of a prima facie case.

Going further, the Appellate Division likened the consideration of such a motion to that given to a summary judgment motion, in which the court determines whether issues of material fact are being presented. Given that such issues were clearly at hand, the movant should have received an assumption of truth to the extent of allowing discovery to move forward in the case. Of course, the facts in the Temple case may be stronger than those in the Wajda case or other cohabitation claims, but the published ruling lays out clear guidelines that can help movants make out such a claim in a petition to terminate alimony obligations.

Lessons for Practitioners

The Wajda case was a precursor to the Temple decision. Both indicate thought from the Appellate Division about how payors of alimony may access the necessary information to make out a claim of cohabitation sufficient to reach discovery or, after that, a plenary hearing for termination. They provide additional clarity to a matter that has long been murky for many practitioners and may correct the tendency on the part of some trial courts to quickly dispose of cohabitation claims.

Of course, the strength of any claim for termination of alimony relies most on the facts of the specific case as well as the arguments that can be marshalled to support the claim. Timeliness can be another significant factor, although the Wajda case points to a much shorter relationship of months, rather than the Temple relationship of over a decade, as a potential example of cohabitation. Practitioners should keep a fact-sensitive approach at hand, using the approach laid out in Temple to point to sufficient evidence to move forward to obtain further financial or other relevant details.

Guiding Your Business Clients through the Tax Implications of Divorce

Wed, 27 Oct 2021 15:43:44 GMT

By Alex Krasnomowitz and Rory Gannon of Smolin, AAML NJ Gold Sponsor

A business owner’s ownership interest is often one of their most significant personal assets. Many business owners are surprised to learn that the courts consider some or all of it marital property. Tax issues related to the family business can complicate divorce matters, often to a far greater degree than owners anticipate.

Tax-free transfers

Following a divorce, most assets can be divided between the business owner and their soon-to-be ex-spouse without any federal income or gift tax consequences. These tax-free transfer rules cover cash and business ownership interests.

Suppose the business owner’s spouse receives an asset under this rule. In that case, they inherit the tax basis (for tax gain or loss purposes) and its current holding period (for short-term or long-term holding period purposes) from the other spouse. In other words, the spouse who winds up with the asset will have the same tax liability as they would have had if they had been the one to own the asset from the beginning.

Say, for example, that a business owner swaps their share of the house in exchange for keeping 100% of the stock in their business. This type of transfer would be tax-free, and the existing basis and holding periods for the stock and house would carry over to the person who receives them.

This kind of transfer appeals to many business owners because their business is their source of pride and income. Most business owners have put in a lot of effort and sleepless nights to build or grow their business. They are often justifiably proud of what they’ve created.

Additionally, for small business owners, finding and keeping good employees can be a severe difficulty. This challenge often provides an extra incentive not to rock the boat by involving a soon-to-be ex-spouse in the business.

Tax-free window

The tax-free federal transfer rule for the existing basis and holding period applies during a divorce or when it becomes final. It can also apply after the divorce, so long as changes are made “incident to divorce”—meaning that the transfer must occur within a year of when the marriage ends or within six years of the marriage ending if the transfers are made under the divorce agreement.

Additionally, the tax-free transfer rule is now extended to ordinary-income assets, not just to capital-gains assets. If a business owner transfers receivables or inventory to their ex-spouse in a divorce, the transfer is tax-free.

Tax implications down the road

However, while assets can be transferred tax-free during the divorce, that doesn’t mean they won’t be taxed ever. The person who winds up owning an appreciated asset (an asset for which the fair market value exceeds the tax basis) must recognize taxable gain if and when the asset gets sold.

For instance, if the business owner’s ex-spouse ends up owning a percentage of their highly appreciated small business stock, the ex-spouse won’t face any tax consequences when they initially receive the shares. Instead, it will be as if they owned the shares all along. That said, when the ex-spouse ultimately sells the shares, they’ll owe capital gains tax. Since the business owner no longer owns those shares, they won’t owe anything.

Thus, the person who winds up owning the appreciated assets must pay the built-in tax liability when they decide to sell them.

Net-of-tax perspective

If you factor capital gains tax into the overall value of the appreciated assets, then their value isn’t the same as an equal amount of cash or assets that haven’t been appreciated. This net-of-tax perspective matters immensely for any business owner negotiating a divorce settlement.

Note that the same net-of-tax perspective would apply to any ordinary-income assets held or transferred during the divorce. When the asset is later sold, converted to cash, or exercised (in the case of non-qualified stock options), the person who owns the asset at that time must recognize the income and pay the tax liability.

Helping clients avoid surprises

For many people, getting divorced can feel like taking on an extra job. The legal process can make significant demands on a business owner's time, their most precious asset. However, it’s vitally essential for a divorce client to plan.

If you’re handling a divorce case that requires careful tax considerations around a business’s appreciated value or if you have questions about the process, the experienced professionals at Smolin Lupin can assist you—get in touch.

How to Complete Your Toolset for NJ Court Form Management

Alexandra Loukeris — Mon, 25 Oct 2021 20:23:44 GMT

By LEAP Legal Software

New Jersey attorneys need an easier way to manage the onerous task of creating, filing, and storing legal court forms.

Microsoft 365 is an excellent place to start for any small to mid-sized New Jersey law firm. Programs like Microsoft Word are now “must-haves” for attorneys who also manage their practice but it still doesn’t complete a law firm’s practice management toolset. Even with if-then-else statements, merge fields, and Find and Replace, no attorney can argue that Microsoft Word is an application built specifically for legal professionals - whom have the responsibility of creating and filing multiple court forms without any room for error.

The following scenario is all too common for law firms in New Jersey: you search for the right court form, consolidate client information from loose post-it notes and journals, and manually key in matter details only to find that you’re missing information from your client or you have accidentally made a mistake.

Microsoft 365, although important to your business, is only the first step in properly managing court forms and legal documents. These applications still fail to sync information between client and matter information, provide data input, or follow the strict guidelines of integrity that are applied by New Jersey bar associations. It’s important to take these Microsoft 365 tools and enhance them for your practice with the latest legal technology. Doing so will make your workflows more efficient, your services more attractive for clients, and your firm more profitable.

Is there a solution that will allow your law firm to adopt this way of practicing? There is.

LEAP Legal Software is a true-cloud practice management solution that offers New Jersey attorneys the ability to simplify legal court form and document management with strong Microsoft 365 integrations. In fact, these integrations are part of a feature simply called “LEAP for Word.”

With strong Microsoft 365 integrations, and a dedicated Design & Automation team with over 25 years’ of expertise, your management of court forms will look much like the scenario above with the adoption of strong legal software like LEAP.

Now, consider how LEAP could improve court form and document management for your New Jersey law firm:

You have a client and need to fill out a form for a New Jersey court. Luckily, LEAP Legal Software has imported and customized the templates into your practice management software already.
Don’t already have what you’re looking for? LEAP provides an ever-growing library of updated New Jersey court forms readily available. You didn’t have to search a court’s website or have multiple applications running at once - you find these forms in the same place where all your matter information is already located.
- See a full list of New Jersey court forms that are provided in LEAP: https://leap.us/legal-forms/new-jersey/
LEAP for Word instantly pre-fills your legal forms with the detail from the electronic matter, allowing customizable options, saving you time and the worry about entering incorrect information on accident.
You securely share the document with colleagues, clients, and third-parties as needed and request e-signatures once the form is complete.
You file the form with your New Jersey court and then keep a saved electronic file in LEAP, readily available when needed.

Court form and document management can be easier for your New Jersey law firm if you adopt the right tools.

LEAP Legal Software is everything that you need to run your New Jersey law firm. Learn more about what’s possible with LEAP by visiting www.leap.us.

The Temple Decision

Fri, 22 Oct 2021 17:25:14 GMT

By Jeralyn Lawrence, AAML NJ Chapter President

A June 2021 ruling by the Appellate Division has clarified our law on the amount of evidence required to obtain discovery related to the cohabitation of a supported spouse in alimony cases.

Alimony in New Jersey may be terminated when the supported spouse remarries or cohabitates with another partner. In 2014, the New Jersey legislature created statutory amendments to the alimony statute (N.J.S.A. 2A:32-23n), laying out specific factors that may be evaluated to determine cohabitation. While it has long been understood that remarriage terminates alimony obligations, some recipients instead chose to live in marriage-like relationships, including having intertwined finances, in order to preserve their alimony. This legislative reform aimed to close that loophole, but it has been difficult to define exactly how a payor may document their argument.

The Appellate Division ruling in Temple v. Temple (A-0293-20 (N.J. Super. Jun. 17, 2021)), decided on June 17, 2021, lays out specific guidance about how a payor may make an argument for cohabitation and seek a plenary hearing for termination or alteration of their alimony obligation. It also may make it easier for practitioners to obtain the evidence they need to make this showing of cohabitation. The Temple decision was originally issued as an unpublished ruling but has since been published and as such is binding authority.

Landau v. Landau

In Landau v. Landau (461 N.J. Super. 107, 218 A.3d 823 (N.J. Super. 2019)), decided in 2019, the Appellate Division addressed the effect of these amendments on a party seeking to prove cohabitation in order to terminate their obligations to pay alimony.

Specifically, the Landau decision confirmed that applicants seeking to terminate alimony obligations must establish a prima facie case for cohabitation before obtaining discovery on the issues. However, the court did not address how much evidence was sufficient for a prima facie case for cohabitation nor did it address the merits of any particular claims for cohabitation.

In the Landau case, the ex-husband argued that the ex-wife and her boyfriend traveled and attended social events together and that they slept over at each other's separate homes. While the court did not address the merits of these claims, it ordered discovery to be conducted, never ruling, however, that a prima facie case had been made.

The Landau court placed restrictions on the use of discovery to compel evidence relating to the private relationships of a supported spouse, upholding the privacy rights of the supported spouse. It upheld existing case law requiring a prima facie showing of cohabitation to order discovery rather than allowing for discovery to move forward to make that prima facie showing upon the filing of a petition for suspension or termination of alimony.

As the matter of what constitutes such a prima facie case was left undefined, practitioners were left without clear guidance on what was needed to fulfill the requirements of the statute.

Temple v. Temple

Temple v. Temple provides much greater clarity, noting the limitations of the Landau decision in providing an analysis of cohabitation and the need to balance the interests of both parties in arriving at a decision.

The parties in the Temple case were married in 1986 and divorced in 2004. Per their divorce settlement, the husband was required to pay $5,200 monthly in permanent alimony. However, in July 2020, the husband sought to terminate his alimony obligation on the basis that his ex-wife was cohabitating or remarried to another man. He further asserted that she had been in a relationship with this other party for at least 14 years. Based on the divorce agreement between the parties, cohabitation was a reason to modify or terminate the ex-husband's alimony obligations.

The trial court misapplied the Landau decision and held that the application made by the husband failed to make a prima facie showing of cohabitation. While the ex-husband provided a range of evidence obtained by a private investigator showing that the ex-wife had lived with the other person for some time, that the other person had called the ex-wife his "wife" on social media, and other indications of a shared lifestyle beyond that of a dating relationship, the trial court stated that the husband did not address all six of the factors specifically elaborated for cohabitation in the statute.

Statutory Definition of Cohabitation

The elements defined by N.J.S.A. 2A:34-23(n) to indicate cohabitation are as follows:

Intertwined finances such as joint bank accounts and other joint holdings or liabilities;
Sharing or joint responsibility for living expenses;
Recognition of the relationship in the couple's social and family circle;
Living together, the frequency of contact, the duration of the relationship, and other indicia of a mutually supportive intimate personal relationship;
Sharing household chores;
Whether the recipient of alimony has received an enforceable promise of support from another person within the meaning of subsection h. of [N.J.S.A.] 25:1-5; and
All other relevant evidence.

As noted by the Temple court, it is difficult to make a clear prima facie case for either points 1 or 2 without discovery, as people are generally private about their finances and financial planning. They do not make this information available publicly nor to their former spouses with whom they have been in litigation.

While the trial court implied that a showing of all six specific factors was necessary to make the prima facie case required for discovery, the Appellate Division indicated that such would present a nearly impossible barrier, making such cases "as rare as a unicorn." An applicant is not mandated to make a prima facie case of cohabitation for all six statutory factors before being granted discovery.

Approach Akin to Summary Judgment

The Temple court likened the issue to that of a summary judgment motion:"We cannot emphasize enough that judges must be cognizant that most information relevant to cohabitation is not readily available to movants. These motions are akin to summary judgment motions filed prior to the completion of discovery ... Although it is true family judges should be careful not to permit a fishing expedition into a supported spouse's private affairs on a weak claim, judges must also remain aware that movants ... do not have access to much of the information relevant to a dispute about cohabitation. In civil matters, courts often quite correctly deny or continue summary judgment motions until discovery is completed ... Contrary to that well-established approach, Jeffrey was put to the burden of demonstrating the factual sufficiency of his claim when most of the relevant information remains in Cynthia's possession."

Given that issues of material fact were presented by the payor and rebutted only by a statement denying those allegations by the supported spouse, the payor was entitled to an assumption of truth in order to determine whether or not discovery could be ordered in the case.

The trial court placed an undue amount of weight on the certification of Ms. Temple as opposed to that of Mr. Temple, even though the statements in the certification were unsupported by evidence. The certifications of both parties indicated the existence of a genuine dispute about the material facts in question that went beyond a mere fishing expedition in the private life of the supported spouse. In fact, many of the references to the relationship between the supported spouse and the other party were scrubbed from social media following them learning of the ex-husband's investigation.

Seventh Factor of Cohabitation

In the Temple decision, the court emphasized the importance of the seventh factor defined by the Legislature in determining whether a sufficient prima facie case was made out to order discovery to proceed. That is, "all other relevant evidence."

A dating relationship is not equivalent to cohabitation, and the financial factors are important in proving cohabitation sufficient to suspend, modify or terminate an alimony obligation, which is primarily a financial matter. However, in order to reach the point of a plenary hearing, it may be impossible for the payor to establish any sort of prima facie case on these matters without discovery. As the court noted, the six enumerated factors do not constitute "the alpha and omega of what ultimately persuade a court that a supported spouse is cohabiting."

Previous cases have indicated that discovery was not available to assist in making that case, while the Temple ruling establishes that a movant must show simply that the supported spouse and another person are in a mutually supportive, intimate personal relationship that indicates the undertaking of duties and privileges commonly associated with marriage, especially when taken together and when the statements presented by the payor are taken for the purposes of assessment as true. While social media posts and the like may not be sufficiently probative to actually terminate an alimony obligation, they can be considered by the court in determining whether discovery may be ordered.

It should be noted that the strength of the arguments presented in the Temple case vary significantly from the underlying facts in the Landau case and in several other Appellate Division cases since that time which have denied discovery related to a claim of cohabitation.

In the Temple case, Mr. Temple argued that Ms. Temple and the other party had shared the same home on multiple occasions, had been in a relationship for over 14 years, publicly referred to themselves as married, traveled together extensively and publicly and had spent significant time on vacation together. While the payor's presentation was not sufficient to make the prima facie case of cohabitation necessary for a plenary hearing, it was sufficient to receive discovery that could enable him to do so if the appropriate evidence regarding living circumstances and finances was brought forward in the discovery process.

Previous cases may be differentiated from the Temple case by the length of the cohabiting relationship alleged and the multiple public declaration by the other party that the supported spouse was his "wife," as well as other factors. While Mr. Temple may have presented a strong enough prima facie case to receive discovery to compel the financial information needed to prove cohabitation for the purposes of terminating alimony, the same is not necessarily true for movants with underlying claims that are weaker.

The Appellate Division reversed on the discovery matter and remanded the case for further proceedings at the trial court level.

Key Takeaways for Practitioners

The significant Temple decision may make it possible for more payors of alimony to make successful efforts to compel discovery in cohabitation cases. Should that evidence establish a clear claim of cohabitation, they may then move forward to a plenary hearing to prove their case and reduce, suspend or terminate their alimony obligations. It provides much greater clarity about the amount of evidence and types of claims necessary, when taken in totality, to move forward to discovery. It should also help to correct the misapplication of the Landau decision in cases where discovery is wrongly denied to movants, removing a seemingly impossible burden in many cases.

In all cases, the strength of a cohabitation claim depends on the underlying facts and legal argumentation, as well as proper timing of the filing. Cohabitation claims that are brought too quickly following the divorce or the inception of a new relationship may be far more likely to fail than ones that can demonstrate a lasting relationship that can be compared to marriage. Cohabitation inquiries are particularly fact-sensitive, and the unique circumstances of each situation may lead to different outcomes as the factors set out in statute are weighed.

International Process Service in Family Law Matters

Tue, 19 Oct 2021 15:58:58 GMT

By DGR, AAML NJ Silver Sponsor

Generally speaking, all legal matters are at least somewhat time-sensitive. While some cases are truly urgent (and others aren’t), individuals tend to initiate legal action because they are seeking a resolution—and attorneys want to keep matters moving so that they can collect payment and manage internal workflows. In other words, nobody is happy when a case drags on and on.

Although they may not come with a set-in-stone deadline, family law matters tend to fall on the “more urgent” side of the spectrum. Whether they involve child support, custody arrangements, asset division, alimony, or something else entirely, these cases have a particularly profound effect on people’s lives, and they are also frequently of a personal or sensitive nature. It benefits both attorneys and clients to effectuate process services as quickly and efficiently as possible.

So what happens when a family law matter involves serving papers in another country? International service of process is complex, and it can take time to complete. How much time exactly (and the quickest way to conduct the service) depends on the country involved. There’s no one-size-fits-all solution: different countries allow service to be completed through different channels, and there are exceptions, additions, and little quirks and nuances to every national system.

When handling international service of process in a family law matter, it’s particularly important to work with an experienced process server who can help you identify the best method of service for your specific situation, navigate the existing system in the relevant country, and quickly and effectively troubleshoot when things go awry.

Methods of international service

Broadly speaking, there are three primary ways to effectuate service abroad: service via agent, service through the Hague Service Convention, or service via Letters Rogatory. Service via agent is sometimes referred to as “the informal method,” while the other two methods of service are known as formal methods. Different countries allow service in different ways.

Using the Hague Service Convention

The Hague Convention was established in 1965 in order to create an avenue for service outside of diplomatic channels, reducing the amount of time needed to effectuate service.

If a country is a signatory to the Hague Service Convention, you can pursue service through this route. Currently, the Convention has over 70 signatories.

Servicing under this method is a multi-step process:

A “letter of request” is completed and sent to the appropriate central authority along with all necessary documentation
The central authority reviews the documents before submitting them to the local court that has jurisdiction over the defendant.
The local court sends service to an individual to serve the document, then submits documentation to the central authority indicating service was effectuated.
The central authority completes paperwork verifying service
The central authority forwards the documentation back to the United States

Service of process through the Hague Service Convention takes, on average, three to six months.

Using Letters Rogatory

Not all countries are signatories to the Hague Service Convention. If you need to complete service in a country that isn’t a signatory, Letter Rogatory will likely be the avenue you use. Letters Rogatory is a request to complete service in accordance with another country’s internal rules and regulations. This method uses diplomatic channels and relies on foreign courts to complete service.

Once the foreign court receives the Letters Rogatory request, they can decide to comply with the request or deny it. If the foreign court agrees to grant the request, service is then completed under the local rules of their jurisdiction.

Service via agent

Also known as the “informal” method, service via agent is the quickest method available for effectuating services of process. The catch? Service via agent doesn’t produce an enforceable judgment—think of it more as means of notification. If you need to let somebody know that they’ve been served, service via agent can accomplish this in a matter of weeks. If you need the country in which this service is completed to recognize or enforce a judgment, however, this method is not appropriate.

Additionally, some countries do not allow service via this method. Check with your international process server to be sure.

Best practices for international service of process in family law matters

If you need to papers internationally in a family law matter, it’s key to work with a process server who has experience effectuating service in the country in which you need to serve.

You can also help expedite service by gathering as much information as you can about the location of the individual you need to serve. Depending on the country involved (and the method of service used), an exact address might also be needed to determine the translation requirements to which your request is subject.

Starting the process

If you need to effectuate service internationally, it can be hard to know where to start—and for family law matters, where your client’s personal relationships and financial future may be at stake—it’s critical to keep the process moving.

If you have questions about serving abroad, we can help. DGR has experience effectuating service in over 100 countries, and we’re committed to getting the job done as efficiently as possible (and keeping you informed at every step of the way).

Alcohol Monitoring in the Digital Age: How Soberlink Challenges the Status Quo

Mon, 11 Oct 2021 13:45:58 GMT

By Soberlink, AAML NJ Bronze Sponsor

According to the American Bar Association, approximately 55 thousand divorce cases involving children also involve a parent who uses alcohol. Unfortunately, alcohol use can add an extra layer of complication to a child custody case, specifically if a co-parent abuses it.

Studies have repeatedly shown the importance of shared custody of children. In a meta-analysis of 1,846 sole-custody arrangements and 814 joint-custody arrangements, psychologists concluded that children who get time with both parents are much more settled. These children had fewer behavior issues, higher self-esteem, better family relations, and better school performances.

With the understanding of shared parenting time often having such a positive influence on the child or children involved, Family Law Professionals have more reason to take steps to make that possible. In co-parenting agreements where excessive drinking may be an issue, alcohol monitoring can foster accountability, provide peace of mind, and ensure safer co-parenting arrangements.

This article will discuss:

How digital technology affects all professions and industries
Why it is important to stay ahead of technology trends in Family Law
What Soberlink technology is and how it works
Why remote alcohol monitoring technologies are valuable in Family Law
How remote monitoring is directly related to offering empathy to clients

The Digital Revolution: How it Affects All Professions

The Digital Revolution has led the shift from manual or mechanical processes to digitized functions, and these changes have affected all professions, including Family Law. Digital technology is often thought of as something that simplifies mundane functions, such as record-keeping or analyzing documents. However, technology affords numerous techniques to make formerly difficult actions easier in every profession. For example, a doctor can monitor a patient at home via a remote pulse oximeter, a teacher can instruct an entire live class from her kitchen, and a legal professional can use an online AI tool to review extensive contracts in a matter of minutes.

Why Family Law Professionals Should Stay Ahead of Technology Trends

Technology also has a place in the legal field, whether speaking at virtual client meetings or utilizing tech-based devices to streamline litigation. For one, the adoption of new technology may lead to increased revenue. An analysis covered by Family Lawyer Magazine found that using digitized client portals helped law firms grow revenue by an average of $37,000. Even more noteworthy, those firms carried an average of 17 percent more cases.

Law clients have grown much more accustomed to legal services with technological elements. For example, 56 percent actually prefer video conferencing instead of interacting over the phone by voice, and 69 percent prefer to electronically submit documents to their lawyer. By staying ahead of technology trends that could heighten the efficiency of everyday processes, a Family Law Professional can better serve their clients, reap new time to dedicate to more clients, and possibly even build more revenue.

What is Soberlink?

Soberlink is a comprehensive remote alcohol monitoring system that combines an FDA-cleared alcohol testing device with automated alerts and reports to document proof of sobriety in real-time. Unlike lab or EtG testing, Soberlink combines facial recognition with tamper detection and Advanced Reporting capabilities to remotely monitor clients for alcohol use. Designed with flexibility in mind, Soberlink’s customized testing fits into any parenting agreement to ensure child safety. Practitioners receive client test results in real-time, allowing for swift intervention if necessary.

Soberlink is most used in Family Court to uphold the best interests of the child in cases involving alcohol abuse. Depending on the co-parent’s program level, the Monitored Client will submit 2-3 scheduled tests a day with results sent instantly to all parties listed on the Monitoring Agreement. Innovative technology like Soberlink allows parents to maintain relationships with their children and provides peace of mind to Concerned Parties worried about a child’s safety.

How Technology Like Soberlink Puts a Professional Ahead of the Curve

Using technology like Soberlink for remote alcohol monitoring offers various advantages for Family Law Professionals. For one, results gleaned from Soberlink are court-admissible and trusted by judges. Therefore, data mined from tests can be used in court proceedings to substantiate or dispel alcohol abuse claims.

A Family Lawyer whose client is facing hearsay could offer Soberlink’s Advanced Reporting as evidence of sobriety in court. Using a universal color code to indicate compliant, non-compliant, and missed tests, Soberlink reports offer helpful insight into a co-parent’s alcohol consumption, helping streamline litigation.

Utilizing the latest technologies like Soberlink could be what sets a legal professional apart from the competition. Modernizing your practice may help foster trust amongst clients who rely on your expertise and guidance during a case.

The Importance of Empathy in Custody Cases

According to Lawyer Monthly, empathy is a valuable way to develop rapport with clients. Empathy is perhaps of the utmost importance in child custody cases. The clients that seek legal counsel can be facing some of the most challenging, worrisome circumstances in their lives. Offering empathy and compassion to clients as they work toward a desirable co-parenting outcome can ease some of the emotional turmoil for the client. A professional who can simplify something like alcohol monitoring with technology can display empathy to their clients by offering peace of mind.

Conclusion

Alcohol monitoring can be the defining key in a child custody case and one that makes all the difference in keeping both parents involved in the lives of their children. Thankfully, remote technology like Soberlink can make alcohol monitoring far easier to manage, helping Family Law Professionals streamline custody cases, improve outcomes, and remain an invaluable resource to their clients.

Income – Why the Tax Return Doesn’t Paint the Whole Picture

Wed, 06 Oct 2021 20:06:09 GMT

By John O’Grady, CVA, MSA – Eisner Advisory Group LLC, AAML NJ Gold Sponsor

Often times we are told “just look at the tax return” when it comes to determining a party’s joint or individual income. The reality is that the tax return does not paint the whole picture. In this blog, I will explain what is presented on the tax return, what else should be considered, and what other documents and information should be obtained in order to determine the party’s true income/cash flow available to them.

What information is presented on the tax return?

Income information that is typically presented on a personal income tax return includes:

Salaries and wages – Form W-2 wages earned by one or more of the parties.
Interest and dividend income – information regarding both taxable and non-taxable (such as on municipal bonds, etc.) interest will be contained on the tax return.
IRA, pension, or annuity distributions – not all distributions are taxed, however; taxable and non-taxable portion amounts will be presented on the return.
Social security benefits.
Capital gains or losses.
Sales of business assets or ownership in business entities.
Business income or losses reported on Schedule C.
Pass-through income for rental real estate, partnerships, S corporations, trusts, etc. (Schedule E income).

Most of these items are straight-forward and represent true income received by the parties. However, pass-through income needs to be discussed a bit further.

What is pass-through income and why is it misleading?

Pass-through income, especially from partnerships, S corporations, trusts, etc., represents an individual’s share of the entity’s income based upon ownership interest. The term “pass-through” indicates that the taxes are paid by the individual owner(s), not by the entity. For example, if a party owns 50% of a business that is organized as an S corporation, that party will report 50% of the business’s net income on their individual tax return; the entity itself will not pay any income tax. This income (or loss) could be misleading in that it doesn’t necessarily mean that the party received that income personally. Many times, entity income that is reported on a pass-through basis is retained in the entity, and the owners instead receive distributions. In some situations those cash distributions can be significantly less than the income reported on the party’s Schedule K-1. Owners are not taxed on distributions, therefore, they are not included in the calculation of taxable income on their individual tax returns. Distribution totals can be found on the Schedule K-1 that the entity includes with its tax returns and issues to the owner(s). Therefore, it is important to reconcile the income reported on the K-1 with any distributions received to arrive at the actual cash flow received by the parties.

What else is not included on a tax return?

There are other items that could be additional income available to a party that may not be reported on the party’s tax return. For example, a business owner may have sold their ownership interest to another individual or a trust, and rather than take a one-time payout for their ownership interest, the business established a note payable to the selling owner. Many times, when this situation arises, the selling owner may have the business pay expenses directly or receive funds from the business and the business treats these expenses or transfers as pay-down of principal and interest on the note payable to the owner. This activity would not be reflected on the tax return of the individual and would require review and analysis of the books and records of the business, primarily on any transaction activity in the notes receivable/shareholder loan accounts on the balance sheet.

Additionally, as we see with many closely held businesses, the business pays various perquisites on behalf of the owner(s). These could include such items as cell phone expenses, automobile insurance, meals and entertainment, travel expenses, etc. However, there are many instances when the perquisites paid on behalf of the owner(s) include many more items. Often times, these items are not included in distributions or taxable compensation to the owner(s). In order to quantify the total amount of perquisites paid, thorough review of the general ledger of the business is required, as well as potentially a review of the bank account and credit card account statements of the business.

Other potential income items that should be evaluated include deferred compensation, stock options, inheritances or gifts, or additional income received from third parties not listed in the categories discussed. The parties’ personal bank accounts should be reviewed to determine if any other income sources may exist.

Summary

In summary, when determining the income of the parties in a divorce proceeding, it is critical to look beyond the federal income tax returns as there could be a number of income categories that are not presented on the returns. At a minimum, information to review to determine available income should include bank statements (personal and business), credit cards statements, business tax returns, and general ledgers of the business.

Why New Jersey Law Firms are Missing out on Potential Revenue

Mon, 27 Sep 2021 14:36:34 GMT

By LEAP, AAML NJ Silver Sponsor

A senior partner in a law firm once said, “Our client base is a huge and neglected source of potential business. It’s ridiculous that we ignore it and convince ourselves that we are too busy to make the most of it.” How often have you thought about leveraging your client base, if only you had the time?

The fact of the matter is that New Jersey law firms are busy. Proactive business operations are often sacrificed because of workload, volume of cases, the number of legal matter types firms offer, the number of staff, use of technology, etc. Running a law firm is challenging but growing your law firm can be even more so.

Technology and automation can help law firms do a lot of the heavy-lifting. From streamlining existing processes to automating repetitive tasks, legal technology can help free up room to focus on other critical functions, such as growing your firm into a more profitable business.

Once you’ve freed up additional time to implement strategies to grow your firm, where should you start? An often overlooked, but huge, source of potential business is your current client base. According to business-development and client-marketing expert Ian Cooper, most lawyers discover that between 80-90% of new files and matters opened are from either their own existing clients, word-of-mouth referrals from clients, or professional introductions. So, building a communication strategy to help you stay top-of-mind with your existing client base can be paramount to your firm’s overall success.

Furthermore, legal practice management software can be a fundamental part of building a successful client communication strategy. Once your technology is mastered and legal automation is set, communicating with your clients becomes much easier and more frequent. Building a repeatable process for regular communication touchpoints is a powerful way to gain access to new and untapped revenue sources.

Interested in learning more about how your law firm can leverage technology and a communication strategy to become more profitable? Download the free e-book, “Lawyers: How to Market to Existing Clients and Contacts” today.

Business Valuations’ Impact on Divorce: What to Expect for Your Clients

Wed, 22 Sep 2021 19:27:12 GMT

By Smolin Lupin, AAML NJ Gold Sponsor

Given the daily work they do to maintain their business, many business owners think they know everything a person can about the business, inside and out. However, that everyday experience doesn’t necessarily mean that the business owner can value their business accurately.

Particularly in a divorce, where emotions run high, a business owner, spouse, or a spouse who is a co-owner may not have as clear a picture of the business’s financial value as they would like to think.

Therefore, having a valuation done by a valuation professional can be immensely helpful in putting together an accurate financial picture of the business’s worth—and setting the stage for a potentially amicable divorce.

Discovery Phase

In the discovery phase, all relevant documents related to the business’s finances are gathered for review. This process can be pretty straightforward or a source of tension, especially over which documents are considered relevant. Having one of the parties attempt to block access to records through claims of “overreaching” can considerably extend the back-and-forth.

If the business owner owns more than one entity, it may also be necessary to combine the operations of various entities to come up with the cash flow relating to the owner’s interest in the combined business enterprise.

Family law attorneys can work with their clients to gather and make copies of the relevant documents early in the process to reduce the likelihood of the opposing party blocking the valuation professional's request for documents. Unfortunately, the longer the wait to gather the documents, the more objections are raised, and the more likely it is that the process will become a significant challenge with increased cost caused by the motion practice and third-party subpoenas.

Family Ties

Complications can arise if more than one person has an interest in the business or its related entities. For instance, if a family member owns a real estate entity leasing the building to the company in question, adjustments may need to be considered to adjust the rent to fair market value based on a real estate appraisal.

Due to the family connection, the rent may be lower or higher than the market rate. Moreover, there may be instances in which there are intercompany loans between the various entities. As part of the forensic analysis, it will need to be verified that the loans are indeed loans (and not disguised distributions) and that the intercompany balances agree between the various entities. The multi-entity business structures lead to more complicated valuations.

Multiple Dates

There are also instances where a business needs to be valued over multiple dates.

Suppose the business interest is in part premarital. In that case, the business will need to be valued at the date of marriage and the date of divorce complaint to determine the incremental increase in value subject to equitable distribution.

Additional steps and valuation periods may need to be considered if interests were acquired through gift or inheritance during the parties' marriage. While an initial valuation may have been done for gift tax purposes, the valuation would need to be reviewed to determine whether it accurately captures the value at the point of the gifting transaction. The valuation may also need to be adjusted from a fair market valuation to a fair value valuation to adhere to the law in New Jersey. Suppose the parties are unable to stipulate to the prior gift tax valuations. In that case, business valuations may also need to be completed as of the acquisition date and then compared to the values at the date of the divorce complaint.

Approaches to Business Valuation

When it comes to valuations, it’s essential to understand and explain to your client the three different approaches to valuing a business: income, asset, or market.

Income

To value a business by its income, a valuation professional looks at historical income and current income, as well as risk and other business-related benefits. They then calculate the business owner’s income in the future based on the expected rate of return (as drawn from historical patterns) or by using other forecasting information.

Asset

The asset approach considers and values tangible assets (i.e., anything physical, like inventory or a building) and intangible assets (i.e., assets such as patents and goodwill). Liabilities are then subtracted from the total assets to determine the net value.

However, the process can get complicated if the tangible assets aren’t easy to value, as is the case with restaurant furniture, fixtures, or other used items.

Market

A market approach aims to determine how much the business owner would get if they sold their business. In this approach, the valuation professional makes comparisons to other similar companies that have been sold.

Suppose the business owner has an active intent in selling a business, which may be revealed through the discovery process. In that case, a market approach may be more relevant to the value of the business interests.

A Clear Picture

Even in divorces that seem amicable, one spouse can hide the actual value of the business from the other. This situation comes to the surface more often if one spouse is involved in the company and the other isn’t.

Conversely, it’s common for the non-business owner spouse to think of the business as providing a steady stream of income while the profit margin can sometimes be very thin.

In both instances, your clients benefit from obtaining a professional valuation of the business rather than allowing an over- or under-valuation to result in one person taking a financial hit that may not be fully evident until years later.

If you’re handling a divorce case that requires a business valuation or have questions about the process, the experienced professionals at Smolin Lupin can assist you—get in touch.

Get the Most Out of Your Process Server in Family Law Matters

Mon, 20 Sep 2021 16:01:45 GMT

By Alana Gibson, DGR, Chief Operating Officer, AAML NJ Silver Sponsor

There are a number of things lawyers can do to ensure the fastest and most efficient turn-around time possible when working with a process server.

Efficient service that holds up in court is always important, but it is particularly critical in family law matters where efficiency and sensitivity to the nature of the service are key. Family law cases more frequently involve evasive individuals, and because matters like child support, custody arrangements, asset division, and alimony are at stake, a speedy resolution is often particularly important to your clients.

Even the most proficient and adept process servers know there are certain pieces of information that can help speed up effectuating service.

1. If you are attempting service at home or work, see if your client knows when the subject will be at that location.

It’s easier to effectuate service if you know where somebody is. If we know the subject works from 9am to 6pm and usually goes to the gym afterward for an hour, we might attempt service after 7:30pm. This minimizes the number of attempts that will need to be made, but more importantly, it will also produce a higher chance of the individual being served, moving the case forward.

In addition to knowing when would be a good time to serve, it’s also beneficial for the process server to know when not to serve. Letting your process server know as much as possible about an individual’s schedule might make it possible for your server to avoid effectuating service around children involved in the matter. In the above case, for example, we might intentionally attempt to effectuate service on the individual’s way into or out of the gym, minimizing the effects on children and increasing the likelihood of a smooth and efficient service.

2. Provide as many details about the subject as possible.

The goal for all parties in a family law matter, including the process server, should be to reach an amicable conclusion. AS process servers, we try to do our part to be as discrete as possible and not agitate an already sensitive matter. These cases tend to be close to home, and with that, your client has more information than they may know. Important details that can contribute to timely service are vehicle information and photos of the subject.

Knowing which car in the gym parking lot belongs to the subject lets the process server situate themselves accordingly. Similarly, having photos of the subject allows the process server to easily identify the subject while entering/exiting the facility or while walking through the parking lot.

3. Include all possible service locations in your initial request.

If no secondary address is given and the individual isn’t at the first address, this is what happens: The server attempts service at a residential address and then comes back to the office and notifies you that the individual is not at the location. You then provide an alternate address, and if possible, the server attempts service later in the day. If not, the service must wait until the following day.

If you provide both addresses upfront, however, the server can simply go from the original location to the next available address, cutting down on the amount of time it takes to complete the service.

All of the above are tips meant to help you speed up the time in which your process service or due diligence is completed (and to move your case along as quickly as possible!).

4. Process service and family law matters.

Family law matters are personal. There’s no way around it. Whether it’s child custody, divorce, guardianship, or something else, family relationships and financial futures hang in the balance.

It’s important to keep your case moving in order to minimize the negative impacts on all parties—and to help your clients move on towards a healthy future.

For a process server you can count on to handle your family law matters, we’re here to help!

How Does Covid Affect Couples on the Brink?

Thu, 09 Sep 2021 18:41:44 GMT

By Marc Demetriou, CLU, ChFC, CDLP | SVP of Mortgage Lending/Branch, Manager at Guaranteed Rate, AAML NJ Silver Sponsor

Relationships can be turbulent. Even for the best of couples. According to an article in the National Law Review from last year, relationship counselors routinely rank financial stress, boredom, parenting disagreements and arguments over domestic chores as the most common obstacles to wedding bliss. And that was before the Covid-19 outbreak.

During the early stages of the pandemic, most employees were required to work from home for safety reasons. But if a couple’s relationship was already showing signs of emotional wear and tear, being forced to share the same space twenty-four-seven in a state of perpetual lockdown might not help matters much.

If a marriage was already starting to go bad, the pandemic was almost certainly going to ratchet up the domestic tension. Before Covid, if a couple was having issues, both spouses could probably talk to friends or family members to blow off steam. Once the quarantine began, those pressure values might not have been so easily accessible. In those early days of the lockdown, no one knew exactly how physically close they should get to one another.

The stats are staggering

Being in forced seclusion could create tensions in even the healthiest of marriages. But for ones that were already on the rocks, Covid could create the makings of a powder keg. According to one legal website, 34 percent of couples considering divorce had children under 18 years of age, an increase of five percent from 2019. Here are some other startling stats from that same website:

Interest in marital separation spiked to 57 percent in April 2020 from the prior two months.

58 percent of those “pursuing a divorce” were married in just the past five years – an increase of 16 percent over 2019.
Couples who were married for five months or less and then actually got divorced jumped to 20 percent in 2020 – an increase of 9 percent from the year before.
Divorce rates in the South were two to three times higher than in the rest of the country due to the pandemic.
Out of fear of a spouse’s sudden death from Covid, 31 percent of divorcing couples increased their life insurance holdings.

Women and Stress

A recent U.S. Census report stated that women were twice as likely to not be working due to Covid-related child care issues. Over two million women left the workforce entirely due to the pandemic.Some experts predict the Covid crisis may have set back women in the workplace for the next decade.

Even couples currently in relationship therapy saw Covid creep into their sessions. One recent article pointed out that some couples would even argue about whether their current counseling environment was Covid-safe. Tina Timm, PhD, associate professor at Michigan State University’s School of Social Work in East Lansing, said that one couple’s wife “was going crazy” during one session, worrying about whether her gym was safe to go back to due to Covid instead of focusing on her current therapy visit.

The Good News

The news on Covid and divorce is not all negative. For some, the pandemic has been a learning experience of a different sort. According to Professor Amanda Miller, Chair of the Department of Sociology at the University of Indianapolis, the pandemic might have the effect of delaying some couples’ decision to marry altogether.At least for a while. The reason? Divorce is expensive. Better not to jump into matrimony in haste.

A recent American Family Survey (AFS) stated that 58 percent of married couples, ages 18 to 55, said the pandemic had made each spouse appreciate the other even more, while 51 percent said their commitment to marriage had only grown deeper. The same AFS data also stated that the share of married couples who said their marriages were “in trouble” fell by 11 percent (from 40 percent to 29 percent) in 2020, from the prior year.

The Washington Post also reported last year that the number of engagements seems to be rising, even in the age of Covid. University of Indianapolis Professor Miller was not surprised. She said that “getting engaged can be a low cost” and “certainly much cheaper than having a baby or getting divorced.”⁹

When Special Needs Issues Arise in Your Family Law Matter

Alexandra Loukeris — Tue, 24 Aug 2021 14:03:45 GMT

By: Beth C. Manes, Esq., Manes & Weinberg, LLC

Our practice areas frequently overlap. Parents of special needs children face many challenges, not just during their marriage, but also upon its dissolution. In addition to the added financial stress of specialized activities and services, parents also find themselves juggling schoolwork assistance, driving to and from appointments with specialists, managing difficult and oftentimes aggressive behaviors, all underscored by chronic worry about their child’s medical, academic and social progress, and potential future. Parents very often do not agree on educational, medical, and other decisions impacting their child. We have assisted many family law practitioners navigate this complex situation by providing the following services:

IEP Review/Mediator: Many children have IEPs (Individualized Education Programs) and 504 Plans, to provide special education and related services, as well as modifications and accommodations to help them learn. Frequently, parents do not agree with each other about what is best for the child educationally. We can review the documentation, provide an opinion, try to get the parents on the same page, and help advocate with the school district if necessary. Alternatively, we can conduct mediation between the parents to help them overcome an impasse that is preventing their child from moving forward with a meaningful education plan.
Special Needs Consultant: Our firm has provided guidance to many family law practitioners who have a client with a special needs child in terms of issues that may be relevant to custody, and/or explaining the child’s school programming and needs. We have also referred practitioners to educational experts when parents are unable to agree upon a school placement for their child. Finally, we have reviewed Family Court motions to ensure the appropriate legal terminology is being utilized.
Guardianships and Contested Guardianships of Children: When children turn 18, they are considered adults in the eyes of the law. This means they can make their own educational, medical, and financial decisions, unless a guardian is appointed. The process should be fairly simple, and we can sometimes coach a client through the forms and court procedures so that they do not need to hire a lawyer. However, sometimes, it turns into another custody battle, this time in Surrogate’s Court. We often serve as co-counsel with family lawyers to manage these cases.
Guardianships of Litigants: As you know, given S.T. v. 1515 Broad Street, LLC, a Family Court judge cannot simply appoint a GAL to act on behalf of an alleged incapacitated litigant, but rather the parties must utilize the R. 4:86 guardianship process. Family lawyers often turn to us to explain the process to their clients, and then file a guardianship complaint.
Court Appointed Attorneys/GALs: We can be a great resource when the Family Court is asked to appoint a GAL for a child with special needs. We work with many educational and health (including mental health) providers for children around the state. We have advocated in school districts in almost every county.
Special Needs Trusts: When a child turns 18, child support is deemed income to him/her. If that child will need to qualify for public benefits (i.e., SSI, Medicaid, Division of Developmental Disabilities Services), there is an asset and income limit that must be maintained in order to ensure eligibility. We often consult with both parents, and are retained jointly, to draft Special Needs Trusts in order to protect the child’s eligibility.

If you have any special needs related questions, we are happy to answer them, and brainstorm your options. Sometimes a few minutes on the phone with us can save you a significant amount of time, and help you navigate unfamiliar areas of the law into which your matrimonial matter has veered.

Serving Interstate Subpoenas and Requests for Records Using the UIDDA

Mon, 16 Aug 2021 14:10:35 GMT

By Alana Gibson, Chief Operating Officer, DGR Legal

Prior to the introduction of the Uniform Interstate Depositions and Discovery Act (UIDDA) in 2007 and its adoption in 2014 by New Jersey, deposing individuals or conducting discovery outside of the state a case originated in was a daunting task.

The UIDDA created a streamlined way to domesticate a subpoena across state lines without needing to retain counsel there.

For family law attorneys, this means that soliciting testimony or gathering evidence from an out-of-state party is a significantly simpler process. This is particularly helpful for divorce cases, which frequently require requests for financial documentation and records related to asset valuation and ownership.

While not every state has adopted the UIDDA, it’s a useful method for requesting discoverable evidence in family law matters and scheduling depositions where permitted.

Resolution of Difficulty in Serving

The UIDDA was created due to the many variances in state rules and cumbersome procedures required to serve a subpoena in another jurisdiction. Out-of-state discovery involved complicated procedures that differed from state to state and often required retaining local counsel. Every state had its own laws, and it was necessary for family law attorneys to be familiar with each state’s particular requirements in order to conduct discovery.

Some states also required that a notice of deposition be shown to the judge or clerk in the discovery state, where a subpoena would then be automatically issued. Others required a notice of deposition to be filed in the trial state and the witness to then be served a subpoena according to the rules of the trial state. There were also states that required letters rogatory requesting the reissuing of the subpoena in the trial state, with other states requiring the attorney in the discovery state to file an action to establish jurisdiction over the witness.

The process through the UIDDA is much more efficient and removes the need for local counsel or for a family law attorney to maintain knowledge of the varying rules and requirements of each state. It also eliminates the need for letters rogatory or a commission from the discovery state.

Most importantly, it saves judicial resources, as it takes significant time for the courts to handle domesticating a subpoena. This is particularly critical for family law attorneys, who often deal with high-stakes and emotionally charged cases like divorce and child custody matters.

How the UIDDA Works

To serve a subpoena through the UIDDA, a draft subpoena that complies with the rules of the other state must be created.

It’s important to remember any motion to quash or modify is governed by the rules of the state where the subpoena will be domesticated. Applying for the reissued subpoena can be done by mail to the clerk in the state where it needs to be domesticated. If there is any kind of deadline in place, this could cause a significant problem due to delays in both receiving and sending back the subpoena via mail once reissued.

The reissuing of the subpoena is handled by the clerk or prothonotary depending on the state. In most commonwealth states, the prothonotary will handle this. Once the subpoena is reissued it will either receive a new index number or be signed by the clerk.

If scheduling a deposition, this must happen in the same county where the document is being served. The domestication of the subpoena must take place in that county in order for it to be enforceable.

After the subpoena is domesticated, it can then be served according to the rules and laws of that state. There are particular requirements for what documents must be served along with the reissued subpoena. Be sure these are included or else the service will be not be considered valid.

The State of New Jersey Law Revision Commission’s final report relating to the UIDDA provides an example as to how the new process works:

“A witness in Florida needs to be deposed in preparation for a Kansas trial. Under the UIDDA, a lawyer of record for the plaintiff in the Kansas action issues a subpoena in Kansas as the lawyer routinely would issue in pending actions. That lawyer then obtains a copy of a form of subpoena from the clerk’s office in the Florida county where the witness to be deposed lives. Using the Florida subpoena form, the lawyer prepares a Florida subpoena that incorporates the terms and conditions of the Kansas subpoena. The lawyer then arranges for the executed Kansas subpoena, along with the completed by not yet executed Florida subpoena, to be delivered to the clerk’s office in Florida. The transmittal letter advises the clerk that the Florida subpoena is being sought pursuant to the Florida statute (citing the appropriate statute or rule quoting the UIDDA). The clerk of the court issues a Florida subpoena incorporating the terms and conditions of the Kansas subpoena and a process server, in accordance with Florida law, then serves the Florida subpoena on the deponent. Appropriate filing and service fees are paid as required by Florida law.”

A Process Server's Role in the UIDDA

Even though the process has been simplified, it doesn’t mean that the documents can be served as they are within a state other than the original jurisdiction. The UIDDA process requires dealing with the clerk of the court in the jurisdiction where discovery is being pursued.

While a family law attorney doesn’t need to file a motion, this subpoena does still need to be reissued in the new jurisdiction. Additionally, using a process server ensures your subpoena is brought to the court clerk in person, cutting down significantly on the time need for domestication and avoiding the possibility of missed deadlines. It should be noted, however, that with the impact of COVID, turn-around time can vary based on the court and staffing. In some instances, extensions it has been necessary to request an extension.

Given the variances in state rules and policies, using a process server can be extremely beneficial in expediting the timeline and accuracy of domesticating a foreign subpoena.

Process servers who regularly serve UIDDA subpoenas become familiar with every court clerk and can hand-deliver documents anywhere in the country. As a result, family law attorneys save time and money on the research involved in locating the correct court clerk and local process, while ensuring accuracy and speed of completion.

States that Are Part of the UIDDA

While not every state has adopted the UIDDA, many have.

Please note: the states listed below are subject to change at any time. For a complete list of states that have adopted the UIDDA, please visit the Uniform Law Commission’s website.

States which are part of the UIDDA:

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Michigan
Minnesota
Mississippi
Missouri*
Montana
Nebraska
Nevada
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
U.S. Virgin Islands
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin

* Missouri has adopted the UIDDA, but as of the time of this article, they are still operating under their previous rules.

Looking Forward

Family law attorneys should take advantage of the UIDDA to gain a more efficient and cost-effective discovery process by limiting judicial oversight and eliminating the need to obtain local counsel in the discovery state.

A process server can cut down on costs even further by removing the burden of researching state-specific information and expedite timelines by personally handling the reissuing and domesticating of the subpoena with the court clerk. In states where the UIDDA has been adopted, expect a significantly improved experience when dealing with subpoenas for depositions or the production of documents for family law matters.

9 Ways Legal Automation Makes Every Step in a New Jersey Case More Profitable

Mon, 09 Aug 2021 15:34:10 GMT

By LEAP, AAML NJ Silver Sponsor

Legal professionals often follow manual processes of managing cases from beginning to end. This often makes matter management a tedious task. Consider what this looks like for many New Jersey law firms today:

Referrals from previous clients come to your firm looking for legal help.
Initial intake is written down on a piece of paper, to be manually checked for any conflicts.
You reach out to this new client, via email or phone, to begin the case and have notes in different places.
Legal assistants manually write up notices and motions based on templates downloaded from your court years ago.
You meet with your client to print, mark up, revise, finalize, and sign documents whenever you both are available.
Documents are submitted via the NJ courts’ websites, potentially not being saved back to your files.
The recorded billable time is estimated based on your memory and the invoice for this client is created manually.
You have no client reminders for this outstanding payment so it takes longer to get paid.
You assume that you need to hire additional firm staff because there has to be a more efficient way to get work done, only accruing an overwhelming amount of administrative tasks and overhead costs.

This scenario is far too common for New Jersey law firms. Every step in this process causes inefficient workflows for you and your clients. Any combination of these points can be detrimental to your business’ bottom line, ultimately leaving you feeling exhausted.

There is a solution. Legal practice management technology is being adopted by New Jersey law firms, making matter management, document creation, time recording, billing, and trust accounting a more profitable and efficient workflow.

Changing the above habits and using automation techniques via legal software will make matter management look more like this:

Clients and prospective clients are all managed within an online web portal; they complete online intake forms and submit case information 24/7, and schedule appointments based on your set availability.
Cases are automatically created in a software database from the online intake form.
Client communications are initiated through this software, and saved to a centralized location, so all your phone and email communications are updated in the matter at all times.
The details of this matter are automatically pre-filled into the updated court form for this New Jersey-specific matter type.
All client collaborations on the document are managed through the same software and e-signatures are requested to notify all parties of completed documents without hassle.
The latest court details, case parties, and documents are synchronized back to your central database.
You have instantly recorded your time on each of these steps so you can get accurate invoices to your clients quickly.
Your online web portal allows you to send payment reminders to your clients, provide links to pay via credit card, and accept online payments so you get paid faster.
Your legal automation software is taking care of all the tedious administrative tasks that you would have otherwise hired for. You also generate automatic reports that provide you with insights for productivity, fees earned, and profits and losses so you can improve your law firm.

Generally, you need multiple software programs to cover all of these steps. But, legal practice management solutions like LEAP Legal Software provide New Jersey attorneys with everything they need to automate their firm and make more money.

“With LEAP, my practice is streamlined and efficient. The automated document production feature and the ability to bill my clients on the go is life changing! The use of this product has allowed everyone in my office to have the ability to be more effective and we now have the capability to invoice for time that we never did before." The Law Offices of Ma'Isha Aziz, New Jersey Law Firm

Learn more about LEAP Legal Software by visiting www.leap.us and get everything you need to run your firm.

Executive Compensation in a Post-Pandemic World

Wed, 04 Aug 2021 16:06:18 GMT

By Ryan Magath, CPA, CFE, Financial Research Associates

Over the last year and a half, a lot has changed in our post-pandemic world. Some changes have been positive, some changes have been negative; however, it is inevitable that many changes are here to stay as the “new normal”.

During the pandemic, many companies implemented changes to their executives’ compensation in order to address liquidity concerns, align company and executive incentives, and to better position companies for the unknown that lies ahead. Understanding the changes to a spouse’s compensation that may have occurred during the pandemic and how the changes will affect compensation going forward as well as the related assets is imperative for a matrimonial matter.

Discovery

The first step to understanding any changes that may have occurred to a spouse’s compensation package starts with discovery. The following documents include examples of items that should be requested in order to analyze a spouse’s compensation and identify changes that may have occurred to a spouse’s compensation. It should be noted that the following list is not all inclusive and should be tailored based on the specific facts and circumstances of the case.

Employee’s annual compensation statements / summaries.
Grant award letters.
Settlement / vesting letters.
W-2 statement.
Annual earnings statement and paystubs.
Personal tax returns.
Schedule K-1’s.
Employment agreement.
Deferred compensation annual statements / summaries.
Brokerage or other investment account statements.
Employee handbook.
Plan documents (retirement, deferred compensation, stock option, other).

In addition to the documents listed above, it is best practice to request any personal financial statements and debt applications that may exist. These documents may help identify streams of income or other assets received as compensation (e.g. stock options, restricted stock units, stock appreciation awards, etc.).

A few examples of areas to look out for are discussed below.

Pay Reductions and Compensation Deferrals

When Covid-19 first shut down the United States in March of 2020, many companies were panicking. The panic and fear of the unknown resulted in pay reductions for some individuals, including executives. The reductions to an individual’s pay may appear to be their “new normal”; however, such reductions may be temporary or otherwise subsidized. For example, many executives agreed to pay reductions when the pandemic first hit in exchange for additional deferred compensation. The restructuring of compensation packages from cash payments to deferred compensation allowed companies to maintain liquidity, while keeping their executives incentivized.

Deferred compensation can be awarded in various forms such as stock option plans, restricted stock units, stock appreciation awards, phantom stock plan awards, carried interest or other forms. Deferred compensation awards often have a vesting schedule; therefore, it is important to understand when the deferred compensation was earned. Just because some awards may be worth “zero” at the cut-off date or not yet vested as of the cut-off date, does not mean that they should be ignored.

Stock Option Re-Pricing

Further, companies that were negatively impacted during Covid-19 often have seen a large decrease in their stock price. Due to this large decrease in stock price, executives were holding equity awards (generally stock options) with no value because the price to exercise the equity award was greater than the current market value of the underlying stock. Consequently, these “underwater” equity awards may no longer incentivize the individual. To address this issue, some companies implemented stock option repricing, option for option exchanges, or grant refresh options in order to provide value to the equity award and incentivize their executives. Therefore, these equity awards that previously had “zero” value may now hold significant value.

Summary

All of the various changes that have occurred and continue to occur to executives’ compensation packages need to be identified and evaluated. Simply reviewing an individual’s year-end paystub or Form W-2 from 2020 likely will not identify the complete picture of an individual’s income. Some changes to executives’ compensation have been positive, some changes have been negative; however, it is inevitable that we need to analyze all of the necessary documents and be on the lookout for pandemic-related changes that might have occurred in order to determine what the “new normal” level of compensation for our clients looks like.

Ryan Magath is a senior financial analyst at Financial Research Associates. He is a licensed Certified Public Accountant in New Jersey and a holder of the Certified Fraud Examiner credential. He is also a member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. He provides forensic accounting services, valuation services, and other litigation-related services.

A House Divided

Wed, 28 Jul 2021 13:16:02 GMT

By Marc Demetriou, CLU, ChFC, CDLP, SVP of Mortgage Lending/Branch, Manager at Guaranteed Rate

In the 1980s, the mainstream media shockingly reported that half of American marriages ended in divorce. Now forty years later, there’s some good news and bad news regarding divorce stats. The good news is divorce rates are down, from approximately 50 percent to 39 percent in 2020.¹ The bad news is the divorce rate in America is still too darn high. Which means that there’s still a lot of heartache and a lot of broken homes, literally and figurately. So, how do divorcing families deal with a divided house while also trying to sell it?

Each state makes its own rules

As anyone who has ever been through a divorce knows: there are no “typical” divorces. For example, if you live in a “community property” state, assets that were accumulated during the marriage are split fifty-fifty. But as they say: “the devil’s in the details.” If your spouse moved into a home that you already owned and the spouse’s name was never added to the house’s title, things could get complicated in a divorce. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and sometimes Alaska.²

In the remaining 40 states, marital assets are distributed in a relatively fair manner. But sometimes “fair” is not the same as “equitable.” Judges are human, with human frailties and biases. And let’s not even talk about prenups. If a spouse signed a pre-nuptial before saying “I do”, most judges will treat that agreement as a legal document. Judges love documentation. It’s less work for them.

The three main options for selling the marital home

Many real estate and financial experts say that there are three main ways³ to divide property in a divorce:

Sell the properties and split the equity – If a couple chooses to go their own way, it would make sense to hire an appraiser who can generate a document that can be taken to a real estate agent or attorney who can then prepare a preliminary closing statement that tells both parties what home assets are available to be divvied up and what outstanding costs (such as title insurance and HOA transfer fees) will have to be paid at closing time. As they say, “the best surprise is no surprise.” From a tax perspective⁴, when you sell the martial home could be very important. If you sell it jointly before the divorce is final (assuming that the family has lived in the house for over two years), both spouses qualify for tax exclusion of $250,000 per person and $500,000 per couple. However, if the home is sold after the divorce is finalized, there could be some capital gains tax issues to settle. A tax attorney can break down the tax obligations in each scenario in the state you are filing in.
One spouse buys out the other – If one spouse wants to keep the house, typically that spouse buys out the other and refinances the original mortgage loan under that buying spouse’s name. The new loan will pay off the prior loan and give the other spouse a cash payout for half of the home’s value. Speaking with a mortgage lender or real estate agent can answer many questions regarding how to execute this option successfully.
Both parties agree to defer selling to a later date – Sometimes certain factors come into play that make selling the marital home not feasible or too disruptive at the time of the actual divorce. If both parties agree to postpone – and sign an agreement to that effect – selling the family home for whatever reason (i.e. the children are still in school and moving might be a big disruption for the kids), this scenario happens occasionally. The obvious point to be made here is one that the mortgage payments still have to be paid on time – by somebody. Also, whichever spouse leaves the home, that spouse can no longer claim the home as their primary residence, thus possibly losing whatever capital gains tax exclusion that spouse qualified for when the house was finally sold. Consult a tax attorney with expertise in divorce cases to get more clarity on this issue.

Other joint decisions are crucial as well

There are other decisions⁵ that need to be resolved jointly that will directly affect the sale of the marital home as well, such as:

What home improvements should be made before the home goes on the market?
Which real estate agent does both parties mutually trust?
What price does both spouses agree the house should be listed for?
How will the mortgage payments by divvied up until the sale and for how much?
How will the profits from the home’s sale be divided up?

Divorce can be a painfully emotional process for all concerned. But keeping a level head, being pragmatic, and maintaining reasonable expectations can help ensure that neither spouse loses their shirt when the martial home is finally sold. Again, consulting a tax attorney (especially one who has experience working with divorced couples) can help both parties move forward with open eyes.

Marc Demetriou “The Divorce Lending Expert” is an SVP of Mortgage Lending & Branch Manager at Guaranteed Rate and is currently licensed in all 50 states successfully serving his clients in traditional and reverse mortgages. He consistently ranks in the top 1 percent of mortgage originators in the U.S., according to leading industry sources Origination News, Mortgage Executive and Scotsman Guide. In his home state of New Jersey, Marc has been featured in NJBIZ's "40 Under 40" and is called upon frequently by the real estate, finance, accounting and legal communities as a trusted expert and speaker.

DISCLAIMER:

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.

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What Matrimonial Attorneys Should Know About Valuations

Mon, 26 Jul 2021 14:41:11 GMT

By Smolin Lupin, AAML NJ Gold Sponsor

An attorney advocates for their client. Part of that is choosing a trusted valuation partner who can give a fair valuation, uncovering all the details and information to create an accurate big picture analysis. Another part of that is knowing what the valuation process looks like.

Below, we delve into what matrimonial attorneys should know about valuations.

Not all assets are obvious

Each spouse’s income and cash flow may not be obvious from tax forms alone. An experienced forensic accountant knows to cast a wide net. While this may mean looking for a Form 3520-A to identify any offshore foreign trust accounts or review of the Report of Foreign Bank and Financial Accounts (FBAR) on Fincen Form #114, it may also mean a streamlined document request, such as reviewing the wills of relatives, like parents, grandparents, or other family members.

Expect thorough document requests

Some clients may be surprised by extensive document requests, yet it’s a crucial part of the process. Forensic accountants are adept at looking for clues to discover hidden assets, such as whether or not reported income can support the family’s current standard of living.

Expect document requests for income and assets, as well as everything where a client is either a fiduciary or beneficiary of any trust assets.

Cash-intensive businesses will be scrutinized

In any business that conducts a lot of cash transactions, owners are susceptible to underreporting income. Valuation accountants may examine the books with an eye toward whether or not the business’s numbers match up to other, similar businesses.

If they suspect not all the cash is being accounted for, they may use surveillance to monitor the level of business to see if it matches up with reported numbers.

Valuations must be independent

A client may sometimes assume that because you recommended someone, they can produce results favorable to the client. Since this isn’t the case, it can be helpful to emphasize their independence upfront.

Stay tuned to professional standards, statutes, and case law

When valuation accountants don’t follow the objective standards set out by their profession, they may be barred from testifying in court. Needless to say, this does your client more harm than good.

If your client understands that having an impartial valuation is in their best interest, that recognition can make the process proceed more smoothly.

Calculations aren’t valuations

Your client may want to save money by paying for a calculation of value as opposed to a more costly valuation. While calculations typically cost less, they are limited in scope. They aren’t subject to the same complex process that attempts to determine, say, the market value of a business. Calculations are like trying to get a sense of a house by looking through the window. They gather information, but they aren’t the same as actually walking around inside.

Frequently, the valuation provider will even include a disclaimer in their final report which says that if a valuation had been done instead of a calculation, the results might have been different.

In short, divorce can be a costly process, but clients trying to cut costs by getting a calculation will ultimately do themselves more harm than good. The same can hold true for using a joint service provider.

Seek providers who understand simplicity

If you’re recommending a list of service partners to clients, make sure those partners understand the value of simplicity when presenting in court. It will make your life much easier if they can use everyday language instead of accounting jargon or an overwhelming amount of data. Instead, encourage your client to seek someone who can succinctly convey information and use visual supports, such as pictures and graphs, to effectively communicate their point.

Stay on top of tax changes

While the Biden administration has not yet passed any tax changes through Congress, President Biden has repeatedly communicated his desire to do so, including by releasing the Green Book breakdown of what he would like to see happen.

If new tax laws are passed, valuation providers will need to move quickly to have their analysis processes reflect the new reality. Matrimonial attorneys should keep an eye on the news—and make sure the valuation providers they work with are doing the same.

Have further questions about valuations? We’d love to help—contact our experienced CPAs at any time.

Supervised Parenting Time: What’s the Standard?

Fri, 23 Jul 2021 12:19:39 GMT

By Carolyn Daly, Esq., Founder and Managing Partner of Daly & Associates, LLC

It happens all the time: a parent makes an accusation against the other parent and the court has to make a quick decision, based on limited information, on what to do with parenting time for the accused parent. It should be unsurprising that courts faced with this situation will claim they lean toward protecting the child, even if it means a parent’s right to parent their child will be curtailed. Most often, the court’s solution is to restrict parenting time with the accused by either suspending that parent’s parenting time, or instituting supervised parenting time pending a hearing. But does this actually protect the child?

Our custody statute, N.J.S.A. 9:2-4, “declares that it is in the public policy of this State to assure minor children of frequent and continuing contact with both parents” and “it is in the public interest to encourage parents to share the rights and responsibilities of child rearing.” So when is restricting a child’s contact with a parent actually in the best interests of that child?

Our courts do not appear to have really addressed this issue head-on, as there are very few cases that address supervised parenting. So what, exactly, is the basis to implement supervised parenting time? Pursuant to N.J.S.A. 2A:12-7, “in the area of child visitation a court often orders supervised vitiation where there has been a history of child abuse, medical disabilities, psychiatric problems or other situations where the safety and welfare of the child may be jeopardized.” If you think that’s pretty broad language…well, it is. Thankfully, a recent case in the Appellate Division may have given lawyers and their clients better guidance for future cases. In P.T. v. A.T., 2021 N.J. Super. Unpub. LEXIS 789 (App. Div. 2021), a father had his parenting time suspended after his child’s mother accused him of watching pornography in front of his daughter. The father repeatedly did everything the court asked of him to get his parenting time back, including multiple evaluations, but the trial court kept ‘moving the goalposts,’ and as a result the father was not allowed to see his child for over four years.

The Appellate Division reversed the trial court orders noting at the outset that the trial court never found that the father posed a danger to the child. The appellate court reiterated that our laws protect against the thwarting of parenting time. Thus, a court may exercise its authority to restrict parenting time “only when credible evidence clearly and convincingly establishes parental unfitness or harm to the child.” The trial court “had not determined the child needed protection from [father]” and thus the suspension of his parenting time was unreasonable. The Appellate Division thus sent the case back to the trial court to hold a hearing. At that hearing, it was the mother’s burden to prove (1) that the father watched pornography in front of the child, and (2) if proven, that this rendered the father unfit or put the child in danger. Only then could the court consider restricting father’s parenting time.

Although P.T. dealt with a case of suspended parenting time, the standard enunciated by the Appellate Division can clearly apply to supervised parenting time as well. No longer should courts simply err on the side of restricting parenting time, either through supervision or suspension, when an accusation is made. Doing so has the effect of placing the burden on the accused to prove himself or herself innocent of the accusation. The court was clear in P.T. that the burden is on the accuser to prove by clear and convincing evidence that the accusation is true and that the accusation, if proven, either renders the accused parent unfit to exercise normal parenting time, or would place the child in harm’s way. It is only then that the court should act to restrict the accused’s parenting time.

While placing the burden on the accuser is significant in itself, the amount of proof required is also significant. In most family matters, the party who has the burden of proof simply needs to prove their position is “more likely than not;” they need only a scintilla more evidence to learn toward their side. That is not the case here. Now it is clear that accusers must prove by clear and convincing evidence, a high standard to meet, that the accusation is true and renders the other parent unfit.

Unfortunately, P.T. is still not perfect. As just one example: how long should the supervision be in place? Most experts agree supervision should only be kept in place long enough to get past the harm and should not be used more permanently. The hope remains that one day the court can more clearly delineate standards for trial courts to follow, for example, period reviews every few months to determine whether supervision should continue or cease. Until then, parents will simply have to stress to the courts that supervision should not be a long term solution.

The safety and well-being of a child is arguably any parent’s primary duty. If you have had your parenting time restricted, or if you believe you have evidence that the other parent of your child should have his or her time supervised, call Daly & Associates today to set up a consultation with one of our attorneys. We’re working “Daly” for you and your children.

Divorce Talk: Back to School

Mon, 19 Jul 2021 19:27:52 GMT

By Peter C. Paras, Esq.

Children of all ages will be returning to school in the next few weeks. Many high school students will soon be taking the PSAT, SAT, or even submitting college applications. In New Jersey, divorced or separated parents can be required to contribute to their children’s post-high school educational expenses. That not only applies to four-year college programs, but to junior colleges, trade schools, and vocational schools.

Each case is fact specific, taking into account the unique circumstances of each family. Among them is the child’s aptitude. Is he a serious student? Are her grades and test scores high enough for admittance by the schools of her choice?

Also important are the family’s finances. Does the divorce, which usually spawns two households with the expenses that go along with each, have enough family income to contribute to college? And, in what proportions? Are there savings that were earmarked for college? Are there savings that were not, but can be used for college?

Is financial aid available – scholarships, grants, and loans – and have the student and the parents cooperated in applying for it and submitting all required financial documents (e.g., income tax returns)? If loans are available, are they taken in the parents’ or the student’s name and who will repay those loans, regardless of whose name they’re in?

These are some of the factors to consider when the time comes to think about college. There are many more. This is one area divorced parents have in common with parents who aren’t divorced.

Post-high school education is expensive. It is almost always an extraordinary expense that goes well beyond the monthly family budget. Prudent parents plan for these expenditures well in advance. Often divorced parents are at odds. They have competing interests, each trying to safeguard as much of the available income for himself or herself as possible.

Cooperation is never more important than when a child’s future is at stake. College costs are high. There is no denying that. But what better to spend your money on than your child’s education? To give your child the tools to see the world with a wide lens and to begin a productive and prosperous life are among the best things parents can do for their children.

Think about (and talk about) these issues early. Don’t avoid them until the last minute. They won’t go away. By sharing information and ideas, and by being willing to sacrifice a little, you can ensure your child has the opportunities you want him or her to have for a bright future.

Peter C. Paras is a shareholder in the Family Law Firm of Paras, Apy & Reiss, P.C. For more information please see the firm’s website at www.par-law.com.

The information in this article is not intended as legal advice. For legal advice you should consult your attorney.

Navigating COVID Disruptions

Wed, 14 Jul 2021 17:08:41 GMT

By Randall M. Paulikens, CPA, ABV, CFF, CITP of Friedman LLP

Do AAML fellows really need to hear another person talk about what has happened in the last 18 months? All of us, as family members, business owners, employees and employers, buyers and sellers - know what has happened.

What we need to think about is - what will happen. Some ramifications of COVID may not be as obvious as we would like/hope them to be.

Most professionals in the family law arena normally rely on the fact that the recent past is indicative of the near-term future. That is the family spending, income, etc. will largely continue into the future and the recent past allows us the opportunity to predict and advise clients, draft agreements, and settle cases that implicitly assume past is prolog.

For valuation purposes, in most cases, the privately owned business was/is expected to continue in a similar manner as historically occurred. When the expectations are vastly different (positive or negative), additional thought, creativity, and investigation is necessary. We have all heard the terms “passive vs active”, “marital momentum”, “Goldman vs Goldman”, “change of circumstances”, “earnouts”, etc. etc.

Will the December 31, 2019 economy return? When will it return? How do you know? How can your clients make educated financial decisions post pandemic?

The economic news reports discuss emerging issues that affect businesses and could affect your clients’ finances. Therefore, all of us should discuss these issues and discuss the potential of any potential, future, changes. These issues include industry, worker, and geography specific.

Oversimplifying completely – business that were operating in 2015 to 2019 – now in 2021 basically fall into three categories.

Businesses that have failed.
Businesses that have muddled through.
Businesses that have had banner years.

The first is straight forward – or is it? Did the business fail only to be reopened in a new incarnation? Is the demand for the service still there and did the business fail due to the lockdown itself?

Businesses that had banner years – can the business and/or industry sustain their recent trend? Are the 2020/2021 levels of revenue, profit, backlog realistically expected to continue? In 2020, when vacation travel was severely limited, people spent significant amounts of money on their homes. At some point, this will slow down or end, as competition for a family’s cash flow will increase as travel and leisure venues open.

Here is the hard one – companies that have muddled through. What does their recovery look like – recovery of revenue, recovery of profit – or some other measure?

Most will not argue that a restaurant that is/was limited to 25% or 50% capacity is not fully open. Now that the capacity constraints imposed by various governments are lifted – does this mean that these restaurants are able to run at 100% capacity? With continual staffing problems, I am aware that some amusement parks are only open five days a week since they can’t staff entirely. I have seen many Starbucks close early for the same reason. From the valuation and income perspective, if these issues affect your case, how should you handle it? Is this a temporary issue, a permanent issue, or do we treat is as a hybrid?

Continuing with the restaurant example – did they ever really run at 100% capacity? Can we define 100% - does that mean a line for tables every night - or seven of ten tables being occupied for dinner?

Pre-pandemic, we might assume that the business was running at its effective capacity if its operations were consistent prior to marital discord. Don’t let the pandemic create an excuse to lower expectations and perhaps settle for less. Also don’t let the pent-up demand lead you to believe that the current situation is sustainable either.

I suggest that you use all of you own life/finance experiences, to create flexibility where possible as the long-term ramifications and adjustments we all make resulting from the last 18 or so months are yet to be known and measurable.

Mediation: Don't Sign Anything Without Your Attorney

Fri, 09 Jul 2021 14:46:34 GMT

By John P. Paone, Jr., Esq. and John P. Paone, III, Esq.*

When attempting to settle issues in a divorce case, parties frequently employ the services of a mediator. In many cases, mediation works as a successful alternate dispute resolution tool allowing parties to settle their matters without the necessity and costs of a trial. However, often times parties attend mediation without having independent counsel. This is usually a mistake, as the mediator (even if he or she is an attorney) does not and cannot represent either party. Therefore, it is important that parties understand the consequences of their actions when going into mediation without an attorney.

If the parties come to an understanding in mediation, the mediator will usually draft a document known as a “Memorandum of Understanding” or otherwise called a “MOU.” While a MOU lacks the detail and specificity of a full-blown, formal settlement agreement, it is recognized as a binding agreement if and only if it is signed by the parties. If parties want the benefit of independent advice of counsel before entering a binding and enforceable agreement, they must be careful not to sign a MOU.

Recently, the New Jersey Appellate Division weighed in on this very subject in the case of Glowzenski v. Glowzenski. In Glowzenski, the parties attended mediation which resulted in the mediator preparing a MOU. The parties, with counsel present, signed the MOU. Although the Husband believed that the matter was resolved, the Wife did not. As a result, the Husband filed an application with the trial court to enforce the terms of the MOU.

After a three-day plenary hearing regarding the enforceability of the terms of the MOU, the trial court ruled that the MOU was a binding and enforceable contract between the parties. The Wife appealed to the Appellate Division and argued that the term sheet's lack of a title and the absence of the parties' attorneys' signature on the term sheet evidenced that no agreement was reached between the parties. These arguments were rejected by the Appellate Division, which determined that “a contract does not need to be labeled a contract to be a contract” and that the fact that the attorneys did not sign the MOU was immaterial as “it is the client's assent that is relevant.”

The lesson to be learned from Glowzenski is that once a MOU is signed by the parties, the document becomes a binding agreement. An MOU is not enforceable, however, if only the mediator signs the MOU.

It goes without saying that negotiating a divorce settlement can be a difficult, stressful, and tedious process. Each party must make compromises and concessions on issues that may be extremely emotional and personal to them. There are also many relevant issues which arise in the course of divorce litigation which could be swept under the rug if spouses sign a hastily drafted agreement without taking the time to contemplate all potential issues. Or, as the adage goes, settle in haste – repent in leisure. If you are attempting to negotiate a settlement agreement at mediation as part of a divorce action, remember the age old adage: “don’t sign anything” without first consulting an experienced family law practitioner who can review your agreement to ensure that it is fair and complete.

*John P. Paone, Jr., Esq. and John P. Paone, III, Esq. are divorce and family law attorneys with the Law Offices of Paone, Zaleski & Murphy, with offices in Red Bank and Woodbridge.

Ten Tax Considerations in Divorce

Wed, 07 Jul 2021 16:24:14 GMT

Taxes may not be the top priority of your client when you are helping them through their divorce, but many decisions can be costly if you are not aware of the tax implications, significantly impacting your client’s tax situation, sometimes permanently. Listen as Rachael Leberstien discusses the Ten Tax Considerations in Divorce with Sharon Klein.

For more information, reach out to Sharon Klein at 212-415-0531 or sklein@wilmingtontrust.com.

A Cure for Your Pandemic Backlogged Divorce or Other Family Law Matter

Thu, 01 Jul 2021 16:17:37 GMT

By Carolyn Daly, Esq., Founder and Managing Partner of Daly & Associates, LLC

Since the pandemic began, the backlog on cases in the New Jersey court system have more than doubled. Judge Glenn A. Grant, the administrative director of the state’s court system, told the New Jersey Legislature in April of this year that a perfect storm was about to thrash New Jersey between the effects of the pandemic and the vacancies on the trial bench in New Jersey. Chief Justice Stuart Rabner recently described the “rate of vacancy on the trial bench in New Jersey as ‘unsustainable’ and the equivalent to losing 90 years of judge time,” in a state of the judiciary speech in May, as reported by State Bar President Domenick Carmagnola, Esq. By May of last year, the Administrative Office of the Courts, which monitors this data, reported that the backlog in non-dissolution family part cases grew by 531%, from 502 cases in May 2019 to 3,170 by May of 2020 and the backlog of domestic violence cases statewide increased from 231 in May of 2019 to 1,370 in May of 2020. In divorce cases, the backlogs grew 70%, from 1,185 cases in May of 2019 to 2,016 in May of 2020. So, how does a person looking to get divorced, or to resolve a post-judgment divorce case, custody, alimony, child support or other family law case get to a resolution? How can you avoid being stuck in this backlog?

The answer is simple: by mediating or arbitrating the dispute. This can be done by videoconferencing utilizing the Zoom platform which will continue to allow people to miss less work, or time with their children as things open up again.

You probably know what mediation and arbitration are, but if you don’t, visit https://dalyfamilylaw.net/mediation/ for an explanation of those two alternate dispute resolution options.

Here is how most attorneys mediate and\or arbitrate by videoconferencing:

First we set a date for the mediation or arbitration that works for all parties, working around everyone’s schedule. Our office sends a Zoom invitation to appear on the date set.
Counsel and each of the parties accepts the invitation for the Zoom meeting.
On the date set, our office, as the host, starts the mediation and each counsel and each party join the videoconference from a desktop or laptop computer, an iPad or iPhone or even just by phone if that is all they have available. If you join by any method, other than just by phone, you should join with video and with audio so that everyone can be seen and heard
Following introductory remarks about the process we are engaging in that day, we will typically meet with the attorneys in a breakout room first and put the participants back in the waiting room.
After meeting with the attorneys to address preliminary issues, we will then bring everyone back into the conference again.
If we are mediating, we will break out each side into a breakout room and then we can go from room to room to mediate as we try to help the parties reach a resolution. For the most part, the parties will not work directly with each other, so if you don’t want to see the other side, you don’t have to. Instead, the mediator will go back and forth between breakout rooms.
If we are arbitrating, everyone stays in the main room and we can have a court reporter join in the process or the Zoom session can be recorded for transcription later. Any witnesses can be sent an invitation as well and be in the waiting room, ready to testify, as the arbitration proceeds.
In either process, we can share documents by sharing the screen or by email. Documents can also be pre-marked and sent to everyone via courier or mail or even electronic delivery – drop box or otherwise.
In mediation, the mediator can be working on the MOU (Memorandum of Understanding) or other document memorializing any resolution as the mediation proceeds.
In arbitration, the arbitrator can be keeping notes and has access to the recordings of sessions so as to review testimony when they are working on their decision which can then be emailed to the parties and\or counsel.

At least in Morris County we are being told that even if you case is settled, it will be a few months until a hearing can be settled to enter your divorce and that trials are being scheduled out two years. My goal at Daly & Associates is to resolve even the most complicated cases within a matter of months, not years through mediation and/or arbitration.

View a list of AAML NJ Certified arbitrators.

5 Digital Tools Helping to Improve Co-Parenting Agreements

AAML NJ Admin — Wed, 23 Jun 2021 19:30:00 GMT

By: Soberlink, AAML NJ Gold Sponsor

Family Law professionals know that going through a divorce is often an emotional time. With 10% of children living with a parent who abuses alcohol, it is common for substance abuse allegations to arise in court. For kids, this can mean unsafe parenting environments, and for concerned parties, this can result in increased anxiety around adhering to specific child custody parameters. No matter the case, as you help your clients navigate the details of their co-parenting agreement, it’s important to keep the child’s best interests at the center of each decision.

Fortunately for counsel and co-parents, various apps and tools are designed to help litigants and their representatives stay organized, streamline litigation, and minimize the friction between parties.

Communication Tools

Practitioners are aware that families tend to communicate in nuanced ways, whether that's by phone, text, or e-mail, but sometimes that isn't enough for parents to achieve peace of mind their child is with a sober parent.

"Hostility makes co-parents work against, rather than with, each other: sometimes, they use the kids as messengers, or they withhold support or visitation to punish the other parent. Rather than being a focused parent who acts for the kids’ sake, it’s really a way of excusing yourself from your co-parenting responsibilities," says Jeffrey Cottrill in an article for Divorce Magazine.

Many apps exist designed to help clients maintain their co-parenting relationship, allowing parents, and sometimes counsel, to sync up in a united digital space. As a litigator, you may already be familiar with:

OurFamilyWizard — a tone meter that allows co-parents to make sure you are communicating what you're feeling
2Houses — an app that offers messaging and mediator access well as document storage
Coparently — an online directory offering contact storage and printable records for shared expenses

Remote Alcohol Monitoring

Suppose custody and alcohol are present in your case. In that case, incorporating technology like a remote alcohol monitoring system may be an excellent solution to streamline custody, support professionals, and offer concerned parties peace of mind.

Soberlink ensures child safety by providing a reliable tool to document proof of sobriety in real-time. A favorite amongst Family Law professionals, the comprehensive system combines wireless technology with facial recognition, tamper detection, and Advanced Reporting to ensure the integrity of each test and allow swift intervention should a drinking event occur. With Soberlink, counsel can work in conjunction with the ex-spouses to determine custom testing times, receive text alerts, and set up automated reporting options to track an individual’s progress. Further, Soberlink can provide monitored clients with a sense of accomplishment while reassuring counsel and concerned parties the children are safe and with a sober parent.

While Soberlink can help substantiate alcohol abuse claims in court, it can also help dispel false allegations. Using a universal color method, green for Compliant, yellow for Missed, and red for Non-Compliant, the system’s court-admissible reporting makes it easy for Family Law professionals to track client progress and present factual data to the court. Daily, weekly, or monthly client-detail reports provide a comprehensive snapshot of either the presence or absence of a parent’s alcohol abuse.

Scheduling Apps

There can be many details in a child's life, and scheduling apps help keep that all in one place. Various apps designed explicitly for co-parenting communication already offer these features. Still, additional scheduling apps exist if concerned parties or counsel find that a simple calendar works best.

Scheduling apps allow families to keep to-do lists, photos, and recipes on hand with minimal stress. As a bonus, co-parents can also share their schedule with a Family Law professional, babysitter, grandparent, or anyone else who may want to be kept a brief of childcare responsibilities.

Shared Documents

During litigation, both parties must have the documents they need to take care of their child's wellbeing. One way to help ensure this is to make sure that both co-parents have access to all of the child's essential records.

While there may be plenty of occasions where one parent or another may need a copy of the child's birth certificate, this can also be useful in communicating information about school projects or health care decisions, especially when a joint decision is required.

Ensuring all the documents required by each co-parent are accessible may keep minor disputes from ending up in court. A variety of cloud systems are available through co-parenting apps and more traditional cloud-based storage such as Google Drive or Dropbox.

Video Chats

There may come a time when one of the co-parents can't physically be in the child's life. This could happen due to travel or an illness, and the COVID-19 pandemic has introduced more considerations to this list.

In New York and surrounding areas, shelter-in-place orders might make it harder for some families to adhere to their visitation schedules. Some homes may have unique characteristics that make it a more suitable environment for home confinement, such as a better internet connection for school, a private room, or less risk of exposure depending on the jobs both parents work during the pandemic.

However, the isolation caused by COVID-19 is not meant that the parent should be out of the loop completely. Video chat platforms help make it easy to schedule regular calls with the parent who can't physically be present until they can once again.

Incorporating these calls into a parenting plan is essential to maintaining the parent-child relationship, whether the cause of the separation is a pandemic or travel.

Conclusion

Much like their litigating parents, practitioners, too, want what’s best for the child. Child custody litigation can be long and tedious, but spending some time thinking about communication expectations can help mitigate the significant discord that could further complicate matters in court.

In instances of alcohol abuse, remote alcohol monitoring systems like Soberlink can help rebuild trust, streamline custody, and help keep the best interests of the child front and center throughout litigation. Trust the Experts in Remote Alcohol Monitoring Technology in your next custody case and end the tireless he-said-she-said disputes.

Who’s Getting Paid? Divorced Parents and the New Child Tax Credit Payments

AAML NJ Admin — Mon, 14 Jun 2021 20:00:00 GMT

By Alex Kransnomowitz, CPA and Rory Gannon, CPA at Smolin Lupin

Next month, about 39 million households—with roughly 88% of children in the U.S.—will begin receiving payments from the federal government. As part of the American Rescue Plan Act (ARPA), the IRS will make 2021 advance child tax credit (CTC) payments to eligible parents, starting on July 15.

Divorced parents, however, face a question: which parent will receive the payments?

Why are these new child tax credits different?

The ARPA has temporarily changed child tax credits rules from July 15 through December 2021. The amount has increased, the qualifying threshold has come down a little, and how parents receive credits has changed. Payments will now be received in advance: $300 per month for children under six and $250 per month for children six to seventeen.

The CTC used to be $2000 per qualifying child, but that’s changed for the remainder of this year. Starting in mid-July, the CTC will be $3,600 for each qualifying child younger than six years old and $3,000 for children ages six to seventeen.

The increased credit amount will be reduced or phased out for households with a modified adjusted gross income above the following thresholds:

● $150,000 for married taxpayers filing jointly and qualifying widows or widowers;

● $112,500 for heads of household; and

● $75,000 for all other taxpayers.

However, even if a parent’s income is too high to receive the increased advance CTC payments, they may still qualify for the $2,000 CTC on their tax return for 2021.

What is a qualifying child?

For 2021, a “qualifying child” must be under age eighteen, related to the taxpayer, and claimed by the taxpayer as a dependent. Generally, it also means the child has lived with the taxpayer for at least six months during the year. The child must also be a U.S. citizen or national or U.S. resident.

How and when will advance payments be sent out?

From July through December 2021, the IRS will make advance payments of 50% of the parent’s estimated 2021 CTC. The payments will start on July 15, 2021. After that, they’ll be made on the 15^th of each month, unless the 15^th falls on a weekend or holiday. Parents will receive the monthly payments through direct deposit, paper check, or debit card.

According to the IRS, eligible parents “are slated to begin receiving monthly payments without any further action required.”

For divorced parents, who receives the payment?

For divorced parents, however, the payments can create a bit of a tangle

The payments will flow to the custodial parent who’s claiming the child as a dependent in the preceding tax year. If the parties have an agreement in place to alternate the years for which children are picked up as dependents, then the parent who claimed the children in 2020 will likely receive the automatic payment, if they fall below the income thresholds.

Yet the payments are advance tax credits for 2021—not 2020. The result may lead to a dispute over who should receive the payments. Ultimately, parents will need to discuss the receipt of these funds so that they are reallocated to the parent who is claiming the children as dependents in 2021, based on the divorce agreement.

With the first payment slated to arrive next month, proactive discussion among the parents may help reduce the stress of all involved.

Have questions about this new credit? We’d love to help—contact our experienced Tax Professionals at any time.

Alex is a Member of the Firm and a licensed Certified Public Accountant in New Jersey with over 15 years of experience. Alex is a Certified Valuation Analyst and member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. In his role on Smolin’s Litigation Support team, Alex leverages his extensive track record and experience servicing clients in both the private and public sectors.

Rory Gannon is a Forensic and Valuation Services Manager with the Firm. He is a licensed Certified Public Accountant in New Jersey. He has experience working in insurance, investment banking and public accounting for over 8 years. He provides companies and their clients with forensic accounting services pertaining to matrimonial litigation, fraud investigation, commercial litigation support, business valuation, and shareholder dispute resolution.

Why the New Stimulus Bill is Set to Cause Headaches for Divorced Parents.

AAML NJ Admin — Fri, 30 Apr 2021 16:00:00 GMT

By Carolyn Daly, Esq., Founder and Managing Partner of Daly & Associates, LLC with help from special guest contributor Barbara Bel, CPA

The new stimulus bill sounds like a great deal: extra money the government is giving you, including your children, as long as your income is below certain thresholds. There’s just one problem: who does the IRS give the money to? To better understand the benefits and potential threats to parents, let’s examine what is in the American Rescue Plan Act of 2021.

Stimulus Funds – where is my money?

The Rescue Act is the third COVID bill to grant “stimulus funds” to individuals, and it’s the largest award yet: $1,400 per person, including children. There are, once again, caps – you may not receive any stimulus funds if your income is over $80,000 if you file Single, $120,000 if you file Head of Household, and $160,000 if you file married. The IRS is in charge of distributing these payments, and will do so based on your 2019 tax returns (unless you filed 2020 taxes). Like with the last set of payments, the IRS attempts to pay these funds by way of direct deposit.

This presents the first challenge for those who are recently divorced: what if you filed joint taxes in 2019 and/or 2020? Did previous stimulus funds get deposited into a joint account? Who has access to that account now? If one spouse received all of the funds and refuses to share those funds, what action you should take? To file a motion and recover those funds can cost you more than $1,400.

For each child or other dependents, you receive $1,400 (again, provided you meet the income requirements). If you are divorced, the IRS will not split the funds. Instead the IRS pays to whoever claimed the children as dependents. This could produce a windfall to one parent. It may not be worth filing a motion to recover the funds. If your dependents are eligible for all stimulus payments, that means for each child the IRS has paid $2,500 over the past year. If you have multiple children and all the payments went to a single parent, it may be worth filing a motion, although that’s still a costly decision to you.

Temporary Increase to Child Tax Credit set to cause havoc

If you thought the stimulus payments were difficult, they’re nothing compared to the new rules on child tax credits. Previously, qualifying individuals received up to $2,000 per qualifying child as a credit against taxes owed (up to $1,400 of the $2,000 was refundable if you did not owe). However, the Rescue Act changed the rules for tax year 2021 only. While this may not impact your 2020 taxes, how you file in 2020 may impact who receives money in 2021, so it’s important to start thinking of this issue now.

First, the maximum credit has been increased, and is also different depending on the age of your children. Assuming you meet income requirements, for each child up to 5 years old by December 31, 2021, you will receive a $3,600 credit, which is fully refundable if you do not owe taxes for 2021. For each child between the ages of 6-17 you will receive a $3,000 credit, also fully refundable if you have no income for only 2021.

The changes don’t stop there. The Biden Administration wants to get these credits out as soon as possible. They have thus directed the IRS to begin making monthly payments of up to ½ of the benefit amount beginning in July of 2021. In other words, instead of claiming a $3,600 credit for a 4 year-old child on your 2021 tax returns that you have to file by April 15, 2022, you will instead receive $300 per month for each month (July-December 2021), and then claim the additional $1,800 on your 2021 returns next year.

There are a number of issues with this new plan, the first one being logistical. The IRS has said they cannot guarantee the system will be up and running in July, so it is unclear whether or not the monthly payments will happen as planned. Now that the tax filing deadline is May 17th, this gives the IRS even less time after tax season to implement new programs. The bigger issue is with the money itself. It is customary in divorce cases that parents alternate the deduction, meaning that the parent claiming a child in 2020 is not the same parent claiming the child in 2021. When the IRS pays these advances, they will be paying the parent who claimed the child in 2020 meaning, in most cases, they may be paying the wrong parent.

There is also an issue because this is a “one time” change to the child tax credit. While the purpose of alternating the deduction is so that each parent gets the same benefits over a two-year period, the parent who is allowed to claim the child in 2021 may actually get more money assuming the advanced monthly payments are made to that parent, but again, it is probably not enough to make it worth the cost to file a motion.

In households with multiple children, the issue may be the amount of the credit now is different based upon a child’s age. It is common in a household with two children for each parent to claim one child each year. If one of those children are under 6, that parent may be receiving a higher amount for the tax credit than the other parent, when the plan was for the parents to receive an equal exempt amount.

While these changes currently only apply to 2021, there is already a strong push to make them permanent. Parents and attorneys must thus begin preparing for multiple future scenarios – scenarios such as what to do if the changes do become permanent, or do not. According to Barbara Bel, CPA and tax partner at PKF O’Connor Davies who helped with this article, the new Congressional changes impact cash flow in divorce and the negotiations on who gets the child exemptions.

Who claims the exemption and what happens as a result, are not an IRS problem. It will fall upon the divorced parents, and possibly their accountants and attorneys, to handle these issues. It is therefore essential to know what is in the new law, and what implications it can have for your clients. Here at Daly & Associates, we have worked with our network of outside advisors to understand how this new law will impact our clients, and we are ready to help you work through it as well.

If you have questions and would like to set up a consultation, call us at (973) 292-9222 or e-mail assistant@dalyfamilylaw.net. We’re working “Daly” for you!

Barbara Bell is a Tax Partner with PKF O’Connor Davies’ Harrison, New York Office and a Certified Public Accountant. See more at Barbara Bel | PKF O’Connor Davies (pkfod.com)

SPAC-tacular Valuations!

AAML NJ Admin — Tue, 20 Apr 2021 13:00:00 GMT

By Daniel Roche, CPA/ABV, ASA and Stefanie Jedra, CPA

The year 2020 may best be known for COVID-19, but it was also the Year of the SPAC. Everyone has one now – from high powered Wall Street investors to celebrities like Shaquille O’Neal, Serena Williams and A-Rod. But what are SPACs and why did they rise to such prominence in 2020? The answers to these questions are not that difficult. What may be difficult however is the valuation of these speculative investments and how that may affect our clients.

Special Purpose Acquisition Companies, better known as SPACs, have been around for decades. They are basically publicly-traded cash shell companies (with no operations), with the ultimate goal of acquiring a privately held operating company. Upon acquisition, this privately held operating company will then become a public company without having to go through the rigor of an IPO process – the IPO process for a cash shell company is much simpler. Basically, a privately-held operating company either “reverse merges” or is combined with the public cash shell, and viola!, it’s a public company (slightly oversimplified).

The economics around SPACs are also very interesting. Most SPACs are funded through sponsor investors. These sponsor investors provide cash to the SPAC in return for “Units” in the SPAC. Units typically consist of one (1) common share and one (1), ½ or ¼ of a common share warrant to buy shares in the SPAC in the future at a specified price. Investor cash is then held in a trust earning interest during the period where the SPAC locates a target company to acquire. The SPAC then has a finite amount of time to identify and acquire a privately-held operating company – this timeframe is typically between 21 months and 24 months. If an acquisition is not made during this time period, investor cash (plus interest) is returned and the SPAC fails. However if the SPAC does make an acquisition, significant returns on investment can be had. This is because, typically, SPACs look to acquire companies that are significantly larger (4x – 6x) their initial capital funding and will look to the private markets to raise capital once a target company is identified. Therefore, SPAC sponsor investors, some of whom could be your clients, could reap significant returns on their investments if and when a successful acquisition takes place.

While the shares of the SPAC are publicly traded, there is a time period between the IPO of the cash shell SPAC and the acquisition of a privately held company. Between this time period, investors with significant influence, who may be your client(s), participate in due diligence and vote on any potential merger. This process is not public and therefore the publicly traded shares will not reflect this activity. However, the knowledge of this activity does exist.

As you’re probably now thinking, the valuation of equity and derivative investments in SPACs can be quite complex. Let’s consider the impact on the valuation of SPAC investments in the divorce arena. With the significant amount of SPAC IPOs in 2020 and 2021, it is likely that we, in the divorce community, will begin to see more and more of these investments sponsored by our clients – or the marital estate in which we are involved. Since the success of a SPAC is ultimately rooted in a successful acquisition made by this SPAC, there can be significant amount of speculation around the ultimate returns of these investments. This is where niche expertise comes in. As always, the concept of known or knowable will be a primary issue in the valuation process as well as the rigor of any amount of due diligence done by the SPAC around a potential acquisition and the ability to acquire information related to these transactions.

Marcum LLP is the #1 firm bringing SPACs to market. Our practitioners have worked through vetting large amounts of external valuations of investments in SPACs and have significant institutional knowledge. If you find that your clients have investments in SPACs or similar investment vehicles, please reach out to us for advice.

You’ve Made the $plit – now what? A guide to your financial freedom post-divorce

AAML NJ Admin — Wed, 14 Apr 2021 19:30:00 GMT

By: Judy Doyle, CPA and Jasmina Woodson, CPA, CFF

Getting a divorce can be one of the hardest and most life-changing events in a person’s life. Even the most amicable divorces can be draining both mentally and emotionally. For some people, getting to “D” Day is the light at the end of the long, dark tunnel. Alimony has been calculated and the assets have been divided, it’s time to move on. But for others, this day brings on a new set of challenges and fears, as they are being forced into the driver’s seat to make financial decisions they never had to make before. How much do I need for retirement? Can I afford to pay for my children’s college education? Will I have enough money to support my lifestyle and if so, for how long? All of these are valid questions and often times on the forefront of our client’s minds as they are signing their Property Settlement Agreements. So how can our team at Withum help?

Our firm offers a wide array of accounting and advisory services, one of them being Withum Wealth Management. Withum Wealth is an independent registered investment advisor offering private wealth management solutions to develop a plan to help your clients move forward confidently into the next phase of their lives. What helps set Withum Wealth apart is that as an RIA, they are true fiduciaries and held to a higher standard than the traditional investment firms. Withum Wealth is legally required to provide ongoing advice that is in clients' best interests and not simply recommendations that are suitable and which may lead to additional commission or compensation. There are many ways in which Withum Wealth may be helpful to your clients. Here we highlight just a few of those areas.

Financial Independence Analysis

As mentioned above, going through a divorce is a difficult and scary situation for many clients. For individuals who are not used to making financial decisions this can be paralyzing. Withum Wealth has developed several methods to help ease client’s fears both during and after the divorce is finalized.

Cash Flow and Budgeting Analysis– Withum Wealth has the ability to prepare various analyses to assist the client in determining their expected ongoing cash flow to support their daily expenses and budgeting to help plan for the future, whether this be during the divorce negotiations or immediately after the divorce is finalized. This analysis takes into consideration all sources of income available to the client, including alimony and income producing assets received in equitable distribution. As it relates to the investments held, Withum Wealth is able to determine exactly how the asset division would occur, the types of assets held, any imbedded tax consequences, and how easily said assets could be transferred between parties. They are then able to run various scenarios to determine how much income could be earned from these assets to support the required lifestyle. This analysis is intended to help the client with their short-term needs following the divorce.
Full Life Expectancy Analysis– This analysis is intended to help clients in the long-term. Using various models, Withum Wealth has the ability to determine the amount of income required to maintain one’s lifestyle based on the estimated life expectancy. Similar to the above, all sources of income available to the client are considered, including potential inheritances, as well as various major life expenses, such as children’s college expenses and retirement.

The goal in preparing the types of analyses outline above is to assist the client in gaining control of their finances. These provide a starting point in the form of an individualized financial framework so the client can make smart financial decisions moving forward.

Customized Investment Management

Once an individual has an understanding of the assets he/she will receive in equitable distribution, they can begin to start planning for their new future. Withum Wealth works with their clients to determine the types of accounts held and appropriate strategies in order to move forward. This requires in depth discussions with the client to determine their needs and the related risks involved. Each individual has unique circumstances, tolerance for risk, investment objectives and income requirements that need to be considered.

In addition to the services outlined above, Withum Wealth also has the ability to provide useful analyses throughout the divorce process. Some examples include the preparation of a rate of return analyses. This may be of assistance in instances where one of the parties has a pre-marital component to their retirement account which needs to be considered. Withum Wealth is also able to assist in complex investment consulting in cases where the parties hold highly volatile funds that may require daily monitoring.

Withum Wealth’s client-first approach means they are always acting in the best interest of the client, whether it be assisting the client with ad hoc projects or building a long-term relationship in which they manage the client’s assets. Throughout the divorce process the client has an advocate, their attorney, guiding them every step of the way. It is important that after the divorce is finalized the client knows they still have a trusted advisor supporting them as they tackle life after divorce.

The services we have available at Withum bring world class service to your clients as our knowledge base expands across various industries and service lines. Withum Wealth is just one of the many areas of expertise our firm has access to which we are able to utilize in your divorce case.

***

For more information or any questions please do not hesitate to reach out to our team.

Judy Doyle, CPA is a Senior Manager and Lead of Withum’s Matrimonial Litigation team. She can be reached at jdoyle@withum.com

Jasmina Woodson, CPA/CFF is a Manager and a member of Withum’s Matrimonial Litigation team. She can be reached at jwoodson@withum.com

To learn more about our Withum Wealth Management services, please visit http://www.withumwealth.com/

For more on Withum’s Matrimonial Litigation services, please visit https://www.withum.com/sub-service/matrimonial-dissolution/

Important Disclosure: This message is limited to the dissemination of information pertaining to Withum Wealth Management (“Withum Wealth”) and general economic market conditions. Nothing contained herein should be construed as personalized advice, or an offer or solicitation to buy or sell any securities. Past performance is not indicative of future results, and there is no guarantee that the views and opinions expressed in this commentary will come to pass. Withum Wealth is neither a law firm nor an accounting firm, and no portion of this commentary should be construed as legal or tax advice. You are advised to consult with separate legal or tax advisors with respect to any legal or tax advice. Withum Wealth does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Withum Wealth is an investment adviser registered with the SEC. For information pertaining to the registration status of Withum Wealth, please refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). For additional information about Withum Wealth, including fees and services, send for our written disclosure statement as set forth on Form ADV Part 2A.

Wealth, thy name is woman!

AAML NJ Admin — Mon, 05 Apr 2021 14:30:00 GMT

By Sharon L. Klein, Wilmington Trust, N.A.

Are your female clients equipped with the knowledge and resources to manage divorce settlement funds? Wilmington Trust’s paper, Women & Investing: A Stronger Grip on Their Financial Futures, points to the fact that, while women are innately talented when it comes to making investing decisions, many still face unique challenges, which can be overcome by aligning with the right advisor.

Link to article: Women-Investors.pdf (wilmingtontrust.com)

For more information, reach out to Sharon Klein, Head of National Divorce Advisory Practice at (P) 212-415-0531 or sklein@wilmingtontrust.com.

The Cyber Threat Landscape and Digital Forensics

AAML NJ Admin — Tue, 23 Mar 2021 18:30:00 GMT

By Andrea Valencia, Manager, Advisory Services, Withum

Have you ever thought about what type of data your phone is collecting? Anything you do online leaves a digital footprint. As technology moves more to the Internet of Things (IoT) and Mobile devices, digital forensics helps us bridge the gap between what you think you know about your day-to-day and what is actually being collected.

Stayed tuned for our in depth presentation on digital forensics on March 25! https://aamlnj.org/event-4176828

When Life Changes, So Should Your Case Information Statement

AAML NJ Admin — Mon, 22 Mar 2021 16:30:00 GMT

By Amanda S. Trigg, Cohn Lifland Pearlman Herrmann & Knopf LLP

As your family starts to recover from the financial impact of the COVID-19 pandemic and financial crisis of 2020-21, you and your attorney will have many questions about your personal and business finances. In New Jersey, all courts require financial disclosures on a form called the “Family Part Case Information Statement.” If you prepared the "CIS" before March 2020, and if your life has changed in the past year, it is time to update that CIS.

In 2021, a CIS includes information not previously seen, including the various benefits of the 2021 Families First Coronavirus Response Act (FFCRA) and other benefits that arose in 2020. PPP loans, stimulus checks, mortgage forbearance or any other new financial issue that you encountered during the pandemic will need to be addressed.

Everyone filing for divorce in New Jersey uses the same form for financial disclosure, to ensure that each party has the same information. It also helps Judges, mediators, and arbitrators to assess the parties' situation, including what assets and liabilities might be divided, how much each party earns, and how much everyone spends. We provide our clients with an electronic data input form, to be filled in, saved as a "Word" document, and emailed back to us. We then import the data into the software approved by the New Jersey Courts for final formatting and review by you.

You will need to disclose your income, a budget of your joint lifestyle expenses, a budget of your current lifestyle expenses including the expenses for the house, transportation, and personal costs, and a summary of the value of all assets and current debts, to show your total financial circumstances. Your Case Information Statement must be as accurate as possible because you are required to certify that the contents of the form are true. It helps establish your lifestyle which is an important component of alimony/spousal support if any is appropriately considered. The monthly expenses must be reviewed and should be based on actual expenditures such as those shown from checkbook registers, bank statements, or credit card statements from the past 24 months. The asset values should be taken, if possible, from actual appraisals or account statements. If the values are estimates, it should be noted that they are estimates. It is also very important that you attach copies of relevant documents as required by the Case Information Statement, including your most recent tax returns with W-2 forms, 1099s, and current income information.

To make this as easy as possible, find as many of the following documents as you can:

2019 income tax returns
2020 and 2021 year to date bank statements and credit card statements
2020 investment or retirement account statements
Current mortgage statement, showing the balance due, interest rate, monthly payment, escrow for taxes, and insurance.
Vehicles – lease or loan agreements or recent/ current statements.
Your credit report and your social security earnings history from ssa.gov.

Preparing the CIS takes time and careful attention to detail. It must be updated when it is out of date, especially after any type of big financial change such as you may have experienced due to COVID-19 or the recent economic upheaval. We understand the importance of your CIS and that your finances may include much more than we can address on this standardized form. Talk to your lawyer about adding footnotes, comments, and attachments so that you use this opportunity to explain your situation to the Court and your spouse as clearly as possible. The experienced family law attorneys in the AAML can help you, answer your questions, and provide additional assistance with making this full financial disclosure, for everyone’s benefit in protecting your family’s finances.

*Updated blog, originally posted on www.njlawfirm.com on August 5, 2020.

Is Alimony Recapture a Thing Anymore?

AAML NJ Admin — Tue, 09 Mar 2021 17:30:00 GMT

By Stefanie Jedra, CPA and Amy Sara Cores, Esq.

Before the Tax Cuts and Jobs Act (“TCJA”), which was enacted on December 22, 2017, alimony was deductible for federal and state tax purposes. With the deductibility of alimony came the dreaded discussion of alimony recapture, which could cause alimony to be taxable if payments were frontloaded. The Internal Revenue Code (“I.R.C.”) outlined the calculation to determine whether alimony payments had been frontloaded in I.R.C. § 71(f).

For divorces finalized after December 31, 2018, alimony is no longer deductible for federal tax purposes and in most states. It seems as though alimony recapture is something that we have not had to think about when drafting inter-spousal agreements for the last few years. While alimony is deductible for state tax purposes in six states (namely, Arkansas, California, Massachusetts, New Jersey, New York, and Pennsylvania), the state tax laws in these jurisdictions do not mention alimony recapture or any similar disincentive to front-load alimony payments. So why are we talking about it now, is alimony recapture even a thing anymore? It is.

I.R.C. § 71(f) outlines the calculation to determine whether there has been front-loading of alimony payments leading to alimony recapture. The calculation involves 2 years post separation. As we all know, there was a rush to finalize divorces in 2018 in order for clients to be grandfathered-in and maintain the deductibility of alimony going forward. We are now in the 2020 tax season and alimony recapture may really be a thing right now. For that reason, a brief refresher is appropriate.

For divorces finalized in 2018:

In the first-year post-separation (or 2019) alimony was taxable to the extent that payments received in the first-year post-separation exceeded $15,000 plus the average of:

alimony or separate maintenance payments paid by the payor spouse during the 2nd post-separation year, reduced by the excess payments for the 2nd post-separation year, and
the alimony or separate maintenance payments paid by the payor spouse during the 3rd post-separation year. I.R.C. § 71(f)(3)

In the second-year post-separation (or 2020) alimony was taxable to the extent that payments received in the second-year post-separation exceeded $15,000 plus:

the amount of the alimony or separate maintenance payments paid by the payor spouse during the 3rd post-separation year. I.R.C. § 71(f)(4)

Unless alimony becomes tax deductible again, and the repeal of I.R.C. § 71 is revoked, this may be the last time that alimony recapture is a pertinent issue for many of our clients.

Amy Sara Cores, Esq. is a Fellow of the International Academy of Family Lawyers, Certified by the Supreme Court of New Jersey as a Matrimonial Law Attorney, a Fellow of the American Academy of Matrimonial Lawyers, and a National Board of Trial Advocacy Board Certified Family Law Trial Advocate. She is the owner of Cores & Associates, LLC a boutique family law firm in Freehold, New Jersey where she handles a variety of complex and high conflict family law cases.

Stefanie Jedra, CPA is a business valuation and forensic accounting expert who specializes in valuation of privately held businesses, complex asset tracing, cash flow and lifestyle analyses, and analyses related to equitable distribution.

The Impact of the Coronavirus Pandemic on Your Client’s Business

AAML NJ Admin — Mon, 22 Feb 2021 19:30:00 GMT

By Tom Fulton, CPA, Cowan, Gunteski & Co., P.A., Litigation & Valuation Services Group, 732.676.4117, tfulton@cgteam.com

We are almost a year into the coronavirus pandemic, and have heard and seen the impact upon the country, the state, and the community. On a national level the US economy contracted 3.5% on an annual basis in 2020, the largest contraction for any full year since the demobilization from World War II in 1946. However, there was a precipitous contraction in the second quarter followed by a partial rebound in the second half of 2020. According to statistics by the International Monetary Fund¹, the proportion of people out of work in the US hit an end of year total of 8.9% although it was in double digits during the year.

Yelp’s Local Economic Impact Report (September 2020)² provides the Covid-19 pandemic hit restaurants and retail businesses the worst. We all have had some experience with this. Nationally, as of August 31, 2020 the restaurant industry witnessed 32,109 closures with 19,590 of those closures likely to be permanent. Breakfast/brunch restaurants, burger joints, and Mexican restaurants were among the types that reported the highest business closures. Additionally, the pandemic has affected gift shops, men’s clothing, and women’s clothing boutiques the second hardest after the restaurant industry.

When a new client calls, and he or she is the owner (or the spouse of an owner) in one of these hard hit small business sectors, should you instantly assume it’s all doom and gloom? The statistics, the news, and other media sources seem to indicate it is. However, this is when you and your forensic accountant need to understand the facts and circumstances of that business, its operations, and the capital and monthly cash flow requirements. This can be even more critical if you are representing the non-business owning spouse.

Some restaurants have maintained their cash flow with take-out services and those that can adapt have survived and even flourished. Living in a New Jersey beach town all my life, I have seen different businesses handle this crisis in their own way. Some popular summer bars and restaurants chose to close, even all summer. Some stayed open and put up tents in their parking lot and effectively brought the restaurant and social scene outside.

As many are aware, if you live at the Jersey Shore, the beach towns have an annual influx of recently graduated twenty-something year-olds, and in some areas this year was no exception. These twenty-something year-olds stayed the whole summer, worked remotely, often didn’t go back to their parent’s home during the week, and went out to eat, drink, and socialize every day during the summer rental season. Many of the bar/pubs and restaurants that had an outdoor space had a great year. Additionally, many people had more disposable money because they didn’t have commuting costs and other costs associated with the pandemic. Is your new client in one of these situations or the spouse of your client? A site visit and an in-depth knowledge of what actions were taken during the crisis to gain specific knowledge is more important than ever.

Like many large retailers, small retailers mostly struggled in 2020, but some business sectors were minimally affected by the coronavirus pandemic. Firms of lawyers, accountants, architects, and other professionals may not have had the dramatic negative financial impact. Accounting firms may have picked up a lot of new business with the PPP loan process including the initial applications and the subsequent applications for debt forgiveness. Your client may have had a significant increase or decrease in cash flow.

Auto related businesses and the construction trades both had under 10 out of 1,000 businesses close up for the six month period ended August 31, 2020. Professionals (lawyers, architects, and accountants) had an estimated 2.0 closings per 1,000 businesses. That’s not bad. By contrast restaurant and small retailers had as high as 55 out of 1,000 closures nationally. Keep in mind these statistics were only through August. A December 2020 poll by the “New Jersey Restaurant & Hospitality Association”³ found that more than a third of restaurants polled felt they may close in the next six months.

Conversely, real estate professionals at the Jersey Shore have been very busy. By way of example, in Monmouth County, New Jersey new home sale closings were up 13.3% in 2020 over 2019. While simultaneously, the closing time decreased by 13.1% and the median price increased 17.1%. People were moving out of New York city and North Jersey and were looking for homes with space and yards in some areas and willing to sink some money in them. Other counties experienced similar statistics including Morris, Ocean, and Somerset. Some counties were negatively impacted. If you have a client or the spouse of a client who owns a real estate agency, law office, title search company, or is in one of the construction trades, you need to know the unique circumstances of the area that they are located. And certainly, your retained expert better know the uniqueness.

Understanding the specifics of your client’s or the spouse of your client’s business has always been important. Much of the impact from the coronavirus pandemic may have led to a significant change in your client’s ability to meet alimony and child support obligations as well as in the value of their businesses. That said, there have been unique opportunities for success and prosperity and your client may have encountered one of those opportunity areas. Just don’t assume everything and everybody’s business was negatively impacted. As always, It’s a case by case basis and fact sensitive.

1. Jones, L., Palumbo, D., & Brown, D. (2021, January 24). Coronavirus: How the pandemic has changed the world economy. BBC News. https://www.bbc.com/news/business-51706225

2. Bialik, C., & Gole, D. (2020, September). Yelp: Local Economic Impact Report. Yelp Economic Average. https://www.yelpeconomicaverage.com/business-closures-update-sep-2020

3. Nearly 40% of New Jersey Restaurants May Close Within 6 Months: Poll. (2020, December 9). NBC New York. https://www.nbcnewyork.com/on-air/as-seen-on/nearly-40-of-new-jersey-restaurants-may-close-within-6-months-poll/2769293/

Attacking and Defending Trust Assets in Divorce

AAML NJ Admin — Wed, 03 Feb 2021 22:33:22 GMT

By Sharon Klein of Wilmington Trust

When a marriage ends and a spouse is a trust beneficiary, are the trust assets accessible or off limits in a divorce? Wilmington Trust’s Sharon Klein, president, Eastern U.S. Region and Elena Karabatos, partner at Schlissel Ostrow Karabatos, PLLC in New York met with Dan Couvrette, CEO of Family Lawyer Magazine, to examine what types of trusts, trust provisions, trust history and trust administration make trusts more vulnerable to attack in divorce; how to potentially change even irrevocable trusts; and ways to ameliorate surprising tax consequences that might otherwise distort results.

Link to the interview:

https://cdnapisec.kaltura.com/html5/html5lib/v2.82.2/mwEmbedFrame.php/p/1971712/uiconf_id/39341551/entry_id/1_tjw5uwix?wid=_1971712&iframeembed=true&playerId=kaltura_player_1581352506&entry_id=1_tjw5uwix

A Little Thanks...

AAML NJ Admin — Tue, 24 Nov 2020 19:37:51 GMT

By Daniel Roche and Stefanie Jedra, Marcum LLP

The Holiday Season is almost upon us, and it really makes us wonder where this year went. Did you order your holiday gifts yet? I ordered a Peloton in September and it just got here today – 8 weeks later. So if gifts are ordered today, they’ll arrive on…January 15? Just in time for … the Symposium?

On a serious note, over the past few months, we’ve been lucky enough to host many virtual “social hours” with law firms in our professional network. Beyond enjoying social interactions during these isolating times, the focus has been to share insights about how we saw COVID-19 impacting matrimonial engagements – specifically, the impacts on business valuation, settlement offers, mediations, maintenance/support modifications, alimony calculations, and the additional discovery nuances/hurdles we’ve been experiencing since mid-March. It has been profound to see how these conversations have changed over the weeks and months as we have moved through this pandemic.

We enjoyed the exchange of interesting insights and experiences. What began as a small series of one-off social hours became a great knowledge-sharing platform for all of us.

We must acknowledge that COVID-19 has affected every business and individual differently. For this reason, care must be taken and diligence exercised to understand the distinct impact of the pandemic on each of our clients personally and the privately held businesses that they have worked so hard to build. As much as we all wish the pandemic were already over, unfortunately it is not. It continues to impact our clients, their businesses and how attorneys and forensic accountants operate in the litigation landscape.

The most important takeaway is that the facts, circumstances, and story are more important than ever. Ask questions. Listen. Don’t forget that no single fact or circumstance exists in a vacuum – and the facts and circumstances as a whole dovetail into a cohesive story of what each client and/or business owners has individually experienced.

It has been profound to think about how all of our practices have been affected by this terrible pandemic. As a profession, we’ve worked together to educate one another and help our collective clients move their matters forward despite these unprecedented circumstances. Let’s remember how far we’ve come and the successes we’ve had through this process.

We sincerely thank all of you who welcomed us to discuss these important topics, and we look forward to continuing our conversations as we move to a hopeful end of this pandemic and beyond.

Wishing you and your families a Safe and Happy Thanksgiving.

Hope to see you all in person soon!

Dan & Stef

Top Tips in Leveraging Life Insurance in Pre-Marital Planning and Settlement Agreements

AAML NJ Admin — Tue, 03 Nov 2020 14:00:00 GMT

By Sharon L. Klein, Wilmington Trust

In this video interview by Family Law Magazine, Sharon L. Klein, president of Family Wealth in the Eastern U.S. for Wilmington Trust & Lee Rosenberg, New York Fellow, American Academy of Matrimonial Lawyers, reveal their top tips & traps for leveraging life insurance in premarital planning and settlement agreements.

https://familylawyermagazine.com/articles/life-insurance-premarital-planning/

Sexting is a Dating Relationship

AAML NJ Admin — Thu, 15 Oct 2020 14:30:00 GMT

By Carolyn N. Daly Esq.

Do you have a “Sexting” Partner? If so, the Appellate Division says you could be in a “Dating Relationship” under the NJ Prevention of Domestic Violence Act

Want to obtain a restraining order in New Jersey? The appellate division made that a little easier with a published decision in C.C. v. J.A.H., released on May 4^th.

First, a little background: you cannot simply obtain a restraining order in New Jersey against a stranger. Restraining orders, in a non-criminal case, are issued under the Prevention of Domestic Violence Act, and, in order to obtain one, you must be a “victim of domestic violence.” Pursuant to New Jersey Statute 2C:25-19d, a “Victim of domestic violence’ is defined as:

“…a person protected under this act and shall include any person who is 18 years of age or older, or who is an emancipated minor and who has been subjected to domestic violence by a spouse, former spouse, or any other person who is a present household member or was at any time a household member. “Victim of domestic violence” also includes any person, regardless of age, who has been subjected to domestic violence by a person with whom the victim has a child in common, or with whom the victim anticipates having a child in common, if one of the parties is pregnant. “Victim of domestic violence” also includes any person who has been subjected to domestic violence by a person with whom the victim has had a dating relationship.

It is the context of a dating relationship that the court had to address in C.C. Did the relationship in this case constitute a dating relationship?

Testimony by C.C. revealed that the parties met in 2018 at a fitness center. Plaintiff, a 22 year-old gym manager, engaged in frequent conversations with the Defendant, who was 42 and a member at the gym. The conversations became more intimate, and in September, the two began to text each other. The messages included a number of “sexts,” or sexually explicit messages. Although the two discussed meeting up, they never did. In November, Plaintiff advised she just wanted to be friends. At that point, Defendant became aggressive and threatening and started harassing Plaintiff. Plaintiff then sought a domestic violence temporary restraining order and was granted one.

At the hearing to obtain a Final Restraining Order (FRO), Defendant argued that the parties were not in a dating relationship and Plaintiff therefore could not obtain a restraining order under New Jersey law. The judge disagreed, and, after conducting a hearing, granted Plaintiff an FRO. Defendant appealed.

The appellate court ultimately agreed with the trial judge that the relationship in this case constituted a dating relationship. The court reasoned that despite never engaging in a sexual relationship or, indeed, going on a single in-person “date,” the sexually explicit conversations between the parties turned their relationship into that of the dating variety. In fact, the court held this was more of a dating relationship than two individuals who had actually been on a date (albeit only a single one). The difference between the two, the court noted, was that the parties in this case had known each other for several months and engaged in profoundly intimate conversations.

This decision is particularly interesting in light of present circumstances, during the COVID-19 pandemic. As relationships take place online, rather than in person, victims should take note that even if there is not a single in person date, a lengthy on-line intimate relationship can still be considered a “dating relationship,” provided it advances far enough, and they are thus, protected by New Jersey law from acts of domestic violence.

If you need an attorney, or have any questions about the issues raised in this article, we encourage you to reach out to Daly & Associates at (973) 292-9222. We are here for you during this difficult time.

The Future of Discovery and Data Analytics in Divorce

AAML NJ Admin — Tue, 06 Oct 2020 14:00:00 GMT

Daniel R. Roche, CPA/ABV, ASA and Stefanie A. Jedra, CPA

During our presentation “The Future of Discovery and Data Analytics in Divorce” we shared how our team at Marcum has utilized artificial intelligence (“AI”) and machine learning to extract data and significantly reduce the time spent on data entry. We also discussed how we seek to continually improve the depth and quality of our analysis using data analytics.

There were some questions regarding Marcum’s processes related to data extraction, the review / analysis of the extracted data and how conclusions derived using extracted data would be perceived in the court room. These questions lead to a discussion about whether other companies and/or accounting firms were utilizing similar technology. This blog post seeks to address these questions and provide some additional background on the reach of AI in the accounting, finance, and legal communities.

The Data Extraction Process

In forensic accounting engagements, data is generally required to be entered into a useable electronic format – preferably Microsoft Excel. From there, the data is analyzed and conclusions presented in a summary format to educate the trier of fact about the conclusions reached.

Historically, this data was manually entered by administrative assistants / paraprofessionals and, depending on the amount of data, the process could take weeks or months to complete. Not only was the work tedious and time consuming, but these administrative assistants / paraprofessionals often had other competing tasks to accomplish. Utilizing computer processes and AI to extract data allows us to get the needed information into a useable format quicker and more accurately than the manual processes historically utilized. This technology also allows the administrative assistants / paraprofessionals to be more focused on their other job responsibilities.

Regardless of the data entry method (human vs. computer) Marcum’s Quality Control procedures with respect to vetting the underlying data and review of the analyses completed remain unchanged. With the ability to extract larger volumes of data, we have been able to more thoroughly understand the universe of information affecting our conclusions, while reducing the cost to our clients. This has enabled us to provide conclusions that are more informed and meticulously supported.

AI in the Courtroom

There appear to be many court cases involving the extraction of data; however, these cases involve the extraction of data from cellphones using software that requires specialized or technical knowledge to get the data in a format useable / presentable in the court room. Accurately and reliably extracting the data from a cell phone requires technical knowledge based on training and experience that a lay person does not possess. It is not possible for a lay person to verify the resulting extracted data, which has caused questions about the reliability of the data under the rules of evidence.

Unlike the extraction of data from cellphones, it would be possible for a lay person to verify each line of data extracted from any bank statement, general ledger, or other document. As demonstrated during our presentation, a column populated with the bates numbers, pages numbers, or another identifier is included within the extracted data and enables a lay person to easily source the information back to the source document.

AI in the Accounting, Finance and Legal Communities

Artificial Intelligence is not new in the accounting, finance, and legal communities; however the use of AI has become further reaching over the last few years. In June 2016, JP Morgan launched “COiN” which stands for Contract Intelligence. Using image recognition software the program reviews commercial loan agreements, which the bank indicated once took lawyers 360,000 hours of work each year! In JP Morgan’s 2016 annual report, the bank highlights the success of this program by noting the capabilities have “far-reaching implications considering that approximately 80% of loan serving errors today are due to contract interpretation errors.”

Even more impressive, in JP Morgan’s 2019 annual report, the bank indicated that they have “used technology and machine learning to reduce fraud losses in the credit card business by 50%”. In the same report, the bank stated that they plan to continue to “evaluate emerging technologies and reshape [their] approach to data to bring the power of artificial intelligence and machine learning to all [their] businesses”.

It was great seeing everyone at our presentation. Please reach out to us if you have any questions on this topic.

Sources:

https://www.supremecourt.gov/DocketPDF/18/18-8600/92968/20190322193407473_McLeod%20CERT%20Final1.pdf

https://www.bloomberg.com/news/articles/2017-02-28/jpmorgan-marshals-an-army-of-developers-to-automate-high-finance

https://www.jpmorganchase.com/corporate/investor-relations/document/2016-annualreport.pdf

https://www.jpmorganchase.com/corporate/investor-relations/document/annualreport-2019.pdf

Ibid.

Why COVID-19 Might Not Be a Good Reason to Deny Parenting Time

AAML NJ Admin — Wed, 30 Sep 2020 13:39:43 GMT

By Jeralyn Lawrence Esq.

As of August 2020, over 150,000 Americans have died because of COVID-19. While evidence suggests that children are at a lower risk of experiencing symptoms of the illness, this is not always the case. There is also a possibility that they will acquire the illness and spread it to others, and this may be something to consider when it comes time to hand your child over to his or her other parent.

You Generally Cannot Unilaterally Modify Parenting Time

It is important to understand that you don’t have the authority to defy or attempt to modify a parenting time schedule on your own. Instead, you can talk to the noncustodial parent about any concerns that you have about your child’s safety during this unprecedented time. If you have a good relationship with the noncustodial parent, it may be relatively easy to come to an agreement without the need to go to court. However, if issues do arise, don’t hesitate to contact Lawrence Law to speak with one of our divorce attorneys to learn more about your options.

Review the Parenting Plan

Ideally, you and your former partner created a parenting plan that would outline how you two would work together to raise your child. The plan should spell out what happens in the event of a custody dispute and how any arguments should be resolved. For instance, the document might stipulate that disagreements are to be resolved with the help of a mediator.

Most mediators have worked as family lawyers or otherwise have the training and experience to help resolve issues in a timely and civil manner. Working with a neutral party can be especially helpful considering that you probably didn’t anticipate custody issues stemming from a global health emergency.

Gather Evidence to Justify Your Position

If you’ve already taken steps to limit parenting time, consider reaching out to an attorney. A divorce lawyer can help you gather evidence that might justify any steps that you took to defy or modify an existing custody order. For instance, if the other parent tested positive for the virus, you may be justified in not allowing your child to see that individual. If you know that your child has shown symptoms of the condition, you could claim that you were looking out for the other parent’s health and safety.

Medical records or physician testimony could be used to show that you have been immunocompromised and at higher risk for contracting COVID-19 after spending time in close proximity with others who tested positive. Medical professionals have also found evidence that individuals with asthma, who are overweight or who have diabetes experience greater side effects of the coronavirus. One of our family lawyers at Lawrence Law could help you obtain medical records or help to put them into context during a court hearing.

A judge might agree with your decision to withhold custody in the event that the other parent has traveled to an area where the virus is prevalent. Finally, it may be possible to avoid penalties for defying an existing court order if you can show that your child will be exposed to individuals who don’t practice social distancing.

The Other Parent Still Has Rights

As a family law attorney will likely tell you, the other parent still has the right to be in your child’s life. Even if arrangements are made to avoid physical contact for the time being, you should allow your child to call or write letters to that person. Depending on your child’s age, it might be appropriate to allow your child to communicate with a parent through social media.

It may also be a good idea to allow for video chats so that your child doesn’t have to go weeks or months without actually seeing his or her mother or father. Whatever arrangement that you and the child’s noncustodial parent come to, it is important that it takes your son or daughter’s best interests into consideration.

What Happens If You Violate a Custody Order?

You could face a variety of consequences for violating a visitation order. The severity of those consequences will depend on your actions, if you have violated the order in the past and the judge’s discretion. In some cases, offenders are simply be told to comply with the order or risk being in contempt of court. If you are in contempt of court, you could be fined, sent to jail or lose custody of your children on a temporary or permanent basis.

A family law attorney may be able to provide greater insight into what will happen if you don’t follow the parenting time schedule. Legal counsel could help you prepare for a hearing and share advice about how you should act in court. Ideally, you will come to a hearing well-rested and looking respectable, and it is also a good idea to be polite to the judge and the child’s other parent. By showing that you take the matter seriously, the judge will more likely to show leniency when making a ruling.

The Parenting Time Schedule Might Be Modified

There is a chance that the judge overseeing your case will modify the current parenting time schedule. This may ease your concerns while still doing what is in the best interest of the child. For example, the noncustodial parent might be allowed to come over for a family dinner once or twice a week. It’s possible to stipulate that visitation will be suspended until after the noncustodial parent tests negative for the coronavirus for a certain period of time.

Consider Whether Your Objections Are Truly Related to COVID-19

When a relationship ends, there is a good chance that you will experience a variety of emotions such as anger and sadness. However, it is important that you don’t let your personal feelings for your former spouse or partner get in the way of doing what is best for your children. One of the best ways to avoid allowing negative emotions to stop you from being a great parent is to process them in a healthy way.

For instance, it might be a good idea to talk with a therapist, enroll in a yoga class or start running every night after work. Any healthy hobby can be good for dealing with stress. A divorce lawyer will tell you more about the benefits of controlling your emotions and where you can get help coping with what has happened in your life. Generally speaking, learning how to become mentally strong makes it easier to help your child deal with the changes that he or she is being forced to adapt to.

Seek Legal Assistance Before Making Rash Decisions

If you need a family law or divorce attorney, feel free to contact Lawrence Law at your earliest convenience. You can reach us by calling 908-645-1000. It is also possible to get in contact with us by sending an email to info@lawlawfirm.com. We’re prepared to answer any legal questions related to child custody and the COVID-19 crisis.

Original Post: https://lawlawfirm.com/why-covid-19-might-not-be-a-good-reason-to-deny-parenting-time/

Financial Information Family Lawyers Need to Negotiate the Best Deal for Clients

AAML NJ Admin — Wed, 16 Sep 2020 15:02:17 GMT

Post by AAML NJ Electrum Sponsor Wilmington Trust

In this podcast by Family Lawyer Magazine, Christy Watkins, Wilmington Trust’s Senior Investment Advisor and member of the National Matrimonial/Divorce Advisory Practice, discusses the types of financial information family lawyers need in order to negotiate the best deal possible for their clients.

Link to the podcast: https://familylawyermagazine.com/articles/financial-information-family-lawyers-need-negotiate-best-deal-for-clients/

Parenting Time Issues During the COVID-19 Pandemic

AAML NJ Admin — Fri, 14 Aug 2020 17:00:00 GMT

By Jeralyn L. Lawrence, Esq.

One of the most stressful things that parents are dealing with is parenting time issues during the COVID-19 pandemic. I came up with these general guidelines regarding custody and parenting time during this crisis.

If there is an order in place addressing custody and parenting time, follow that order. The only exception is if the best interests of the child dictate otherwise.
Courts do not like self-help and unilateral violations of court orders. How one behaves and co-parents now and the good faith, or lack thereof, shown to the other parent will matter. Courts will hold the parent acting unreasonably or in bad faith accountable, in time.
Now more than ever, parents must work their hardest at cooperating, communicating, compromising, and co-parenting.
Executive Orders issued by a State’s Governor must be followed. Social distancing, stay-at-home and all other COVID-19 directives are to be followed.
Exposure alone to someone infected to COVID-19 is not enough to deprive a parent of their parenting time. Should someone show symptoms or evidence of illness, that may yield a different result and an expectation to self-quarantine away from the child.
Your child is listening to you. Be careful in how you speak and what you say. Do not instill unnecessary fear or worry. Limit exposure to the media.
Be creative. If one parent misses parenting time, offer virtual time and be generous with make-up time.
Find ways to turn this crisis into an opportunity to create vivid, yet fun, memories with your child with stories for them to tell for years to come.

The above guidelines are achievable. I recommend that you adopt them. By doing so, parenting time issues during the COVID-19 pandemic will be limited. Please let me know if you have any questions about this blog post.

Top Tips and Traps for Negotiating Divorce Settlement Agreements

AAML NJ Admin — Tue, 14 Jul 2020 16:42:48 GMT

Post by AAML NJ Electrum Sponsor Wilmington Trust

In this video interview by Family Law Magazine, Sharon L. Klein, Wilmington Trust’s President of Family Wealth, Eastern U.S. Region and Head of the National Matrimonial/Divorce Advisory Practice, and Mark Bank, Michigan Fellow of the American Academy of Matrimonial Lawyers, review their top tips & traps for negotiating divorce settlement agreements.

Link to the interview: https://familylawyermagazine.com/articles/top-tips-for-negotiating-divorce-settlement-agreements/

Keep the Fireworks in the Sky— Not in Your Marriage

AAML NJ Admin — Sat, 04 Jul 2020 13:00:00 GMT

By Madeline Marzano-Lesnevich, Esq.

New Jersey has entered Phase II of its reopening, and more and more people will be venturing out of quarantine, into what’s being called ‘the new normal’: six feet apart, outdoors, wearing a mask, etc. We urge you to follow CDC guidelines and take the necessary precautions, but also to enjoy some summer sunshine (for more on this, please see my previous blog post: https://lmllawyers.com/save-the-pandemic-summer-from-being-a-total-bummer/).

Part of summertime is, of course, celebrating our country over the Fourth of July weekend. With the global pandemic still in effect, and each state at a different timeframe in their re-openings, we realize some of the July 4^th weekend may look different: postponed fireworks, so as not to attract large gatherings; a car parade instead of a traditional parade; and smaller grill-outs that may include ‘doubling your bubble’ or only taking your mask off to eat.

You can still, of course, celebrate the Fourth, and if you have children, and are in the middle of a divorce, or just in a rocky place in your relationship (heightened by quarantine!), here are three tips on how to celebrate nevertheless:

1. Consult with your co-parent/spouse/partner. Now more than ever keeping the lines of communication open are vital. It’s important to know what your co-parent is comfortable with: going to a public beach, and staying socially distanced? having a child’s best friend over to use the pool? venturing out to a theme park? Everyone’s going to have different opinions as to what’s safe to do this summer, and it’s best to consult with your co-parent, and respect his or her level of comfort.

2. Be creative! Use this odd time to find new ways to celebrate July 4^th, and even educate your children about the history of America. That could mean writing and performing a short show in which your children play Uncle Sam, George Washington and Betsy Ross, or leaving it to the professionals and firing up Disney+, popping the popcorn, and settling in with your family for a quarantine-watch of the mega-smash, original cast Broadway musical Hamilton on Friday, July 3^rd. Either way if you’re not yet comfortable gathering with folks outside your bubble— or if rain dampens your socially-distanced, outside celebration— there are plenty of innovative ways to celebrate the founding of the country.

3. Remember the ‘me’ time! Our Megan Hodes has written before on the importance of ‘me’ time as it relates to co-parenting (https://lmllawyers.com/good-co-parenting-means-making-me-time/), and it’s even more relevant both during this global pandemic, and when a holiday weekend comes up during ‘the new normal.’ Everyone’s given to feelings of stress, exhaustion and overwhelmingness, and even though it can be tough to carve out just one hour to soak in a bath, take a walk, get lost in a novel or have a glass of wine and just sit, it’s more important than ever to take some ‘me’ time. Not just for you, but for your mental health, for your ability— and patience— to parent, and for your ability to really relate to your co-parent.

Everyone at our firm wishes you a safe, healthy, fun and Happy 4^th of July weekend!

A version of this article already appeared on my blog, https://lmllawyers.com/category/lets-talk-about-divorce/

*****

Madeline Marzano-Lesnevich, Esq. is the co-Chair of the Family Law Department at the New Jersey-based law firm of Lesnevich, Marzano-Lesnevich, O’Cathain & O’Cathain, LLC (www.lmllawyers.com). Madeline is a Diplomate of the American College of Family Trial Lawyers. She is a prior President of the national American Academy of Matrimonial Lawyers, as well as past President of its New Jersey Chapter, and past Chair of the Family Law Section of the New Jersey State Bar Association.

Top Tips and Traps for Negotiating Premarital Agreements

AAML NJ Admin — Tue, 23 Jun 2020 18:00:00 GMT

In this video interview by Family Law Magazine, Sharon L. Klein, Wilmington Trust’s President of Family Wealth, Eastern U.S Region and Head of Wilmington’s National Matrimonial/Divorce Advisory Practice, and Madeline Marzano-Lesnevich, past president of the American Academy of Matrimonial Lawyers, reveal their top tips and traps for negotiating premarital agreements.

Link to interview: https://familylawyermagazine.com/articles/watch-top-tips-for-negotiating-premarital-agreements/

Save the Pandemic Summer from Being a Total Bummer

AAML NJ Admin — Fri, 19 Jun 2020 16:27:25 GMT

By Madeline Marzano-Lesnevich, Esq.

Warmer weather and longer days are here— we’re officially in summertime— but let’s face it: this is weird. Coping with the ongoing novel coronavirus, and dealing with phased re-openings as the pandemic persists throughout summer, will feel different because it is different. And if you’re co-parenting, it may even feel more difficult than co-parenting through quarantine, because our— and our kids’— natural desires are to go out and enjoy summertime fun in the sun!

And you still can. But there are a few things you and your co-parents should talk about, and do, before you all leave the house and enjoy the season.

1. Prioritize health: Agree with your co-parent that everyone’s health and safety is paramount. If that means strict quarantining for 14 days before or after taking a trip or expanding your circle (or “bubble,” in our new pandemic language), so be it. If it means patiently explaining to a child that they have to wear a mask when they go to a park with a friend, it’s worth it. Safety first.

2. Consult with your co-parent: With summer plans changing (okay, we’re not going on our usual getaway this year) or outright canceled (goodbye, summer camp! Maybe, to the beach?) it’s more imperative than ever to consult and talk honestly. It means being flexible and adaptive in giving your children— and your co-parent— a chance to enjoy a bit of my favorite season, and everyone a chance to make a summertime memory during the pandemic.

3. Be creative: A day at the beach too crowded? What about a wading pool in the backyard, complete with all the make-your-own popsicles you can eat? You can even set up a lawn chair with amenities and escort your child to their reserved spot. An afternoon movie matinee at the local cinema out of the question? Screen a classic summer blockbuster and set up a snack stand, with admission tickets and hand-drawn movie posters. Family trip to the ice cream place after dinner out of the question? Set up a make your own sundae bar or, if you really want to go for it, make your own mason jar ice cream. Use your imagination this summer!

4. Make it fun-damental: Just as it isn’t a ‘normal’ summer, it wasn’t a ‘normal’ school year. Most schools transitioned to remote learning at some point, and pretty much any teacher or parent will tell you something was lost in translation in Google Classroom, or over the transom of the Chromebook. Therefore, encouraging children to pursue a vigorous summer reading list, or keep a journal of their pandemic summer, or watch online educational videos relating to science, math, English and history could be a positive way to continue learning throughout the summer— especially if you and your co-parent can agree on how to jointly promote learning. The same way adults working from home many not realize what day it is, the lines between summer and school are going to be blurred this year.

5. Stay cool— and stay safe: Even without the ongoing threat of the novel coronavirus, we know, due to climate change, it’s going to be another hot summer. The temptation may be to flee to the beach or town pool immediately, but even if these facilities are open, it’s important to use them wisely. Wear a mask. Consult with your co-parent so that everyone’s following the same recommended guidelines. Stay 6 to 10 feet apart from other families on a beach. And if you don’t feel comfortable cooling off in a public place, see if you can make your home a cool one. That doesn’t mean you have to rush to add an expensive pool; an investment in a long, new hose, plenty of water balloons on hand, or a reasonably priced slip-and-slide might just do the trick.

6. Give everyone a break: Just like a normal summer family trip or experience, there’s going to be meltdowns. Rainy days when no one wants to do anything but sulk. Tears over something not being the way it used to be— and not just from the kids. And that’s okay. It’s okay to be not okay this summer, and to try and simply get through it— and to try to enjoy what summer moments you all can.

7. Remember: how we act toward each other, during this pandemic, will set a tone for after the pandemic. We hope you have a responsible, safe, happy— and healthy— summer!

A version of this article already appeared on my blog, https://lmllawyers.com/category/lets-talk-about-divorce/

The Goal of Divorce

AAML NJ Admin — Fri, 12 Jun 2020 13:40:56 GMT

By Jeralyn Lawrence, Esq. Managing Member and Founder of Lawrence Law

The main goal of divorce is to reach an agreement with your spouse. The terms of the agreement are memorialized, in writing, in a Marital Settlement agreement. This agreement is also known as a Property Settlement Agreement. A very high percentage, meaning almost all, divorce cases settle. In other words, a very small percentage of cases go to trial. At trial, a Judge will decide the issues relative to the divorce.

There are two people that control how long a divorce takes and how much it costs. Those two people are the couple getting the divorce. As soon as they are able to agree upon terms, their case will be settled and a divorce decree obtained. To be able to reach an agreement, both parties will need to be able to communicate, cooperate and compromise. Any agreement reached will contain many compromises by the parties. As such, they will each have had to give up on issues to gain an advantage on other issues. It is important that both parties make concessions, not just one party. In the end, both parties must feel that they are reaching a durable and sustainable agreement. And that, the agreement meets both of their needs.

Transparency is a Requirement

It is important for both parties to feel fairly treated through the divorce process. This starts with full and fair disclosure of all financial records. Both parties need to be open and fully transparent about their assets and debts. The value of all assets must be ascertained to get a complete financial picture. This is common with business owners. A value of the business must be ascertained, as well as an accurate understanding of cash flow, before the settlement of a case.

While a divorce is painful and emotional, there is no substitute for preparation. Preparation will allow you to negotiate and to reach an acceptable agreement. When settlement is impeded by the emotions of one of the parties, it may be important to bring a mental health expert into the process. This expert can address and strengthen the client throughout the process. Once the divorce is over, to goal is for the client to be able to embrace the next chapter in his or her life with a renewed sense of hope. And, a restored sense of self and security.

As a lawyer, it is my job to lead the client to a better place. The goal of a divorce is to reach an agreement while positioning the client for long-term success. In my view, long-term success includes financial and mental health.

Original post: https://lawlawfirm.com/the-goal-of-divorce/

COVID-19 and Estate Planning While Divorce is Pending

AAML NJ Admin — Fri, 29 May 2020 19:09:04 GMT

Sharon Klein, president of Wilmington Trust Family Wealth, Eastern U.S. region, discusses the urgency for estate planning while divorce is pending, particularly in light of COVID-19, with Dan Couvrette, publisher of Family Lawyer Magazine. Now is the time to confirm designated heirs are up-to-date and that the right people are named to make important financial and health care decisions on documents like Health Care Proxies and Powers of Attorney.

Click on the link below to watch.

https://www.divorcemag.com/articles/watch-estate-planning-and-covid-19

The New 'Virtual' Reality for Court Proceedings

AAML NJ Admin — Wed, 20 May 2020 17:10:08 GMT

By Carolyn N. Daly, Esq. of Daly & Associates LLC

With the onset of COVID-19 and Governor Murphy’s stay-at-home order, the court system has had to implement a number of procedures and protocols in order to allow courts to continue functioning while we all continue to social distance. Although jury trials and other criminal proceedings are suspended, most other dockets are continuing. The court system has indicated that, come May 10^th, they have enough confidence in their online operations to largely proceed “as normal” (albeit a new normal), with more and more proceedings happening every day. According to Morris County, they are conducting an astounding 420 virtual proceedings each week, or 60 per day.

However, with these virtual proceedings come questions on the ability of the judiciary and the attorneys to perform the same functions they would be performing in the courtroom. How does an attorney deal with scheduling meetings while also needing to parent young children? How do litigants, particularly in divorce matters, attempt to work out parenting time schedules and other issues related to the children when the children may be there, listening? It’s a difficult situation that everyone has had to adapt to, but there’s no denying that some proceedings are better able to adapt than others.

Take trials, for instance. While jury trials are postponed indefinitely, other types of trials and testimonial hearings are moving forward. The judiciary has made clear that divorce trials, custody hearings, domestic violence trials, and more should proceed forward. In fact, if the court is ready to hear your matter, they will hear the matter by Zoom, or other video teleconferencing platforms whether you consent to proceeding in this matter or not.

When it comes to testimonial proceedings, this can be particularly concerning. In a courtroom, a judge can see all the parties – the witness, the litigants, the attorneys – and make assessments in real time. He or She can assess credibility not just from the witness testifying, but also from the parties, when they are sitting at counsel table and listening to the testimony, and perhaps even from the attorneys themselves. But on a video call? A judge can often only see a portion of any individual on a call and they may not be looking at the camera or in front of the camera all the time. In court, the judge knows exactly what a witness has in front of him. On a zoom call, the court has no idea what the witness has in front of them or who may be in the room with them helping them, outside of the view of the camera. It raises some sticky questions, and in some cases, some serious due process concerns.

In what can now be viewed as an ironic coincidence, the court actually set the table for allowing virtual hearings in a decision published in January, just before entry of the stay-at-home order, in Pathri v. Kakarlamath, Docket No. A-4657-18T1 (you can read the decision for free here).

In the Pathri case, the parties filed for divorce in 2018, and the matter was scheduled for trial in June of 2019. (Attorneys and litigants who are currently going through divorce proceedings will likely express shock at the speed of this trial as most divorce cases take significantly longer than one year to proceed to trial.) Mr. Pathri, the Plaintiff, moved back to India after filing for divorce. One week before the trial, he informed the court he could not get a Visa to fly back to the United States, and asked to instead appear and testify from India via video conferencing.

The Judge denied Plaintiff’s motion to testify from India. In doing so, the Judge relied heavily on a case from 1988 entitled Aqua Marine Products, Inc., v. Pathe Computer Control Systems Corp., 229 N.J. Super. 264 (App. Div. 1988). In Aqua Marine, the court ruled that telephonic testimony could only be taken in limited circumstances where (1) the party testifying telephonically could somehow verify that he or she was who he or she claimed to be, and (2) there was some exigency, or emergency, that required testimony by telephone, unless the other party consented. The court ruled there was no exigency, and thus denied Plaintiff’s motion in Pathri.

Plaintiff appealed, and the court reversed. Noting first that Aqua Marine came from a time when video conferencing was not only unavailable, but largely unfeasible, the court set down factors for a court to consider when determining whether to allow testimony via video or telephone, although the court clearly expressed a strong preference for video technology:

The witness’ importance to the proceeding;
The severity of the factual dispute to which the witness will testify;
Whether the factfinder is a judge or a jury;
The cost of requiring the witness’ physical appearance in court versus the cost of transmitting the witness’ testimony in some other form;
The delay caused by insisting on the witness’ physical appearance in court versus the speed and convenience of allowing the transmission in some other manner;
Whether the witness’ inability to be present in court at the time of trial was foreseeable or preventable; and
The witness’ difficulty in appearing in person.

The court then walked through each factor, providing guidance to judges of the importance of each factor and considerations a judge should take into account when evaluating each factor. Left untouched, of course, is the continued requirement of authentication; the court still must confirm that the person testifying is in fact who he or she says he or she is.

This decision and the factors set forth therein can assist us in determining whether, in fact, we can proceed via Zoom or other video conferencing platforms, even after this pandemic has ended. There is no question that there will be significant delays caused by insisting on the witness’ physical appearance in court (as of now, we don’t even know when courts will reopen for in person appearances) versus the speed and convenience of allowing the transmission by video or telephone. Many cases have been impacted and delayed because of the unavailability of a witness or party. This decision favors continuing proceedings, unless there are serious issues with respect to the other factors. For example, in domestic violence cases, attorneys (particularly for Defendants) are already honing arguments that their client’s rights under confrontation clause to a full and complete cross examination is hampered by having all parties proceed via video. Therefore, consideration should be given, if the Defendant wants, to simply continue the TRO until trials can occur in person as the victim is not negatively impacted by the delay since the restraints remain in place.

The bottom line is that it is clear parties will be required, for the foreseeable future, to conduct their conferences, trials, and other hearings via video conferencing or telephone. Parties and attorneys are going to have to adapt to this new normal and work together to ensure their matters proceed in a manner that ensures the best outcome for them.

Co-Parenting in the time of COVID-19

AAML NJ Admin — Wed, 13 May 2020 16:42:13 GMT

By: Madeline Marzano-Lesnevich Esq.

How to Protect Your Child During a Pandemic Situation

“Mommy, Daddy says you are overreacting, and I can go with him to Aunt Joanie’s wedding reception in two weeks— it’s only a short plane ride.”

“Daddy, Mommy says I don’t have to keep washing my hands that much. And she says you are wrong about the monkey bars at the playground— they’re clean enough.”

“Mommy… Daddy… is Disneyland really closed?”

Co-parenting is not a myth. It is not just an idea. It is not just a goal. Co-parenting is real, and you need to be able to do it, no matter how you feel about your spouse/partner or former spouse/partner. You need to avoid putting your child in the middle, and, most importantly, you must decide together how you are going to handle certain situations—including our current one, a pandemic.

How can you handle protecting your child and his/her family when that family, and that child, is split between two homes?

The first thing you need to do is talk to your co-parent. You need to agree on whether you both recognize the severity of a situation, and, if you don’t agree, you must decide that exercising caution is less detrimental to your child than not exercising caution. If you both agree on the severity of a situation but disagree on how to handle it, avail yourselves of the information and resources of individuals or institutions with more knowledge of the situation than you. If that information is overwhelming or even contradictory, call a trusted advisor—your child’s pediatrician, a psychologist, a family relative to you both trust.

You can both decide to follow the same rules in both houses— not forever, but for the time when special rules are necessary. If you are able to purchase items that will help keep your environment, and your child, safe, now is the time to share with your co-parent. When many others around your child may be expressing worry or even panic, you can both decide to have a united calm front. You can talk to each other about how to talk to your child and how to soothe, comfort and assure your child. If your child expresses fear or questions their health or yours, share those concerns with your co-parent.

Bergen County, NJ schools are being closed indefinitely. This obviously creates a burden for employed parents, but it also creates a further opportunity to co-parent meaningfully and successfully. Whether you currently enjoy a shared physical custody arrangement or a division of parenting time whereby one parent enjoys more or less than 50% of the time with your child, talk to your co-parent about sharing this unexpected and unique time with your child. Which of you has a more flexible work schedule? Which of you has an at-home spouse or partner? Which of you has other children whose school is also closed? Which of you is better equipped to assist with the on-line schooling which many districts are implementing? Which of you can work remotely?

You both only want what is best for your child, and now is the time to recognize and acknowledge that in each other. This is not your divorce. This is co-parenting.

Discuss all this with your co-parent. Do not be afraid to involve your co-parent’s current spouse or partner in the discussion. These are special times which call for special action. Your child deserves no less.

What a child needs are consistency and love, and you each can give that to your child— even now, in a time of uncertainty and caution.

***

You can contact author Madeline Marzano-Lesnevich, Esq. at 201.488.1161. Post originally posted at: https://lmllawyers.com/co-parenting-in-the-time-of-covid-19/

Top 10 Financial Considerations in Divorce: Through the Coronavirus and Beyond

(Past member) — Mon, 04 May 2020 13:54:17 GMT

By Sharon L. Klein, Family Wealth Strategist, Trusts & Estates Attorney

The dissolution of marriage is one of the most stressful and difficult experiences your clients may face. The COVID-19 pandemic has made the already challenging and uncertain journey of divorce more complicated for families and their advisors. With unpredictable court closings, hearing delays, the impact on employment and spousal support, and custody arrangements that involve child movement between households—now more than ever, trusted guidance and collaboration are key.

As your clients transition from one chapter of life to the next, what follows is our pick of the top 10 financial considerations to address with them. For seamless and integrated advice, your client’s financial advisory team should work collaboratively with you and your client’s other advisors, and have the breadth and depth to provide a full spectrum of services.

Here Are 10 Important Financial Considerations in Divorce

1. Have your clients established their own individual banking accounts for everyday financial needs and reviewed their new balance sheet?

Clients likely will need to open accounts in individual names and develop a list of revised assets and liabilities.

2. Do your clients need financing that is customized for their unique situation?

Custom credit can provide your clients with a reliable source of funding for unforeseen expenses, real estate purchases, and business investments. They will need an experienced professional to evaluate their options and provide lending based on their assets—including specialty or illiquid holdings. Solutions to consider include:

Marketable securities-backed lines of credit, including restricted and concentrated stock, which may be a valuable option to consider for preserving an underlying portfolio, instead of selling at a time of crisis
Bridge financing to help with a significant purchase
Specialized asset-backed loans secured by partnership interests, fine art, yachts, and aircraft
Residential and investment real estate financing, including lines of credit

3. Have your clients projected how their settlement will sustain their lifestyle?

An experienced financial advisory team should offer a comprehensive financial plan analyzing the changes in your clients’ cash flows from assets received, alimony, changes in expenses, and other cash flows expected after the dissolution of marriage. Having detailed financial projections may be particularly important given the pandemic’s dramatic impact on market volatility. By providing a comprehensive overview of the following factors, an advisor can help your clients balance their projected expenses while maintaining the lifestyle they seek:

• Cash flow planning for income and expenses

• Alimony/child support

• Asset sustainability study and portfolio risk analysis

• Tax situation review and appropriate planning

4. Have your clients reviewed their estate planning documents to make necessary changes?

An experienced financial advisory team can help your clients review all their important estate planning documents and feel confident they are providing for their chosen heirs, updating beneficiary designations, and naming new designees for healthcare and power of attorney documents. With court closings and potentially long delays in finalizing divorce, the need to have documents updated to reflect your clients’ intent is increasingly important. Some documents can be changed while divorce is pending, others must wait until the divorce decree is issued. Documents to consider include:

• Will and trusts (usually can be changed while divorce is pending)

• Power of attorney and healthcare directive (usually can be changed while divorce is pending)

• Retirement accounts and plans (usually cannot be changed while divorce is pending)

• Jointly named real estate and financial accounts (usually cannot be changed while divorce is pending)

• Authorizations to access digital accounts, including financial accounts, email accounts, social media accounts, etc. (usually can be changed while divorce is pending)

5. Do your clients have a fiduciary they can trust to oversee their trusts and assets?

When trusts are utilized to protect settlement payments, it is important to select a trustee who will be your clients’ fiduciary: A trustee whose first and foremost responsibility is to protect the best interests of your clients and their family.
6. Is there a business valuation involved in your clients’ settlement agreement?

The preparation of a business valuation is a lengthy and expensive process. As you well know, valuation reports can be very lengthy and difficult for even seasoned professionals to understand. The coronavirus pandemic may have substantially impacted business values. For any business that has been appraised as part of the settlement process, you will want to confirm that your clients’ financial advisors can review the appraiser’s valuation report and provide insights that may answer questions such as:

• Is the appraiser a qualified professional with experience and valuation credentials?

• Is the appraiser’s financial analysis of the company thorough and explained?

• Are the methods used appropriate and the reasons for their selection discussed?

• Is the value conclusion reasonable, based on the factors presented in the report?

7. Do your clients have the tools to set their short- and long-term investment strategies?

If your clients are receiving a settlement, particularly through times of crisis, they will want to be certain that their short- and long-term needs are met through the creation of a customized investment portfolio. It will be important to have a dedicated financial advisory team that can tailor a portfolio based on each client’s specific parameters, including liquidity and spending needs, time horizon, risk tolerance, cost sensitivity, tax efficiency and other factors.

8. Do your clients need to update their insurance coverage?

The coronavirus pandemic, with its tragic attendant death toll, has focused people’s attention on mortality. Now more than ever, you will want to ensure that your clients’ settlement entitlements are secured with appropriate life insurance, or potentially probe the value as a marital asset. Insurance review is very important to be certain clients have the appropriate coverage, have named the correct beneficiaries, and that the premiums are being paid. Health, life, disability, property & casualty, and long-term care insurance should all be reviewed to identify what actions might be recommended, including revising policy ownership and beneficiary designations, and understanding who has responsibility for premium payments.

9. Are your clients’ children’s college expenses covered?

An experienced advisory team can establish projections and analytics helpful to the settlement process by delineating the future costs of college based on the ages of the children and the potential colleges under consideration. This data can be coupled with merit-based aid scholarship strategies and other financial aid analytics. Often, trusts can be designed and created specifically (or in concert with other goals) to fund education.

10. Are your clients aware of the charitable techniques available to them?

A financial advisor should review any existing private foundations and charitable trusts to be certain they are still in line with your clients’ goals and wishes. The advisor should also review potential charitable techniques that could be utilized to support philanthropy and minimize taxes in the settlement process.

Wilmington Trust’s core objective, dating back over a century, is to serve families. We can help parse through complexity and manage, grow and protect wealth. In offering a broad spectrum of wealth advisory services, delivered through a dedicated team, our guiding philosophy is clear: It is our clients’ best interests that drives us. We can help you navigate the challenges you face today and prepare you for a new beginning, and a successful future.

To learn more: https://www.wilmingtontrust.com/divorce/

Sharon L. Klein is president of Family Wealth, Eastern U.S. Region, for Wilmington Trust. She is responsible for coordinating the delivery of all Wealth Management services by teams of professionals, including planning, trust, investment management, family governance and education, family office, and private banking services, to high-net-worth clients in the Eastern United States. Sharon also heads Wilmington Trust’s National Matrimonial Advisory Solutions Group, a team of Wilmington’s professionals from across disciplines who collaborate with family law practitioners in offering a comprehensive set of services for those considering or maneuvering through divorce.

Beginning her career as a trusts & estates attorney, Sharon has over 25 years’ experience in the wealth advisory arena and is a nationally recognized speaker and author. She is a Fellow of the American College of Trust and Estate Counsel. She chairs the Domestic Relations Committee of Trusts & Estates magazine, where she sits on the Board, and is a member of the New York City Bar Association’s Matrimonial Committee.

This article is for general information only and is not intended as an offer or solicitation for the sale of any financial product, service or other professional advice. Wilmington Trust does not provide tax, legal or accounting advice. Professional advice always requires consideration of individual circumstances. Wilmington Trust is a registered service mark used in connection with various fiduciary and non-fiduciary services offered by certain subsidiaries of M&T Bank Corporation. Wilmington Trust traces it roots to the founding of Wilmington Trust Company in 1903.

How We Choose to Act During the Coronavirus Will Define Us

(Past member) — Wed, 29 Apr 2020 13:43:25 GMT

By: Madeline Marzano-Lesnevich, Lesnevich, Marzano-Lesnevich, O’Cathain & O’Cathain, LLC

Although most of the States have set orders, guidelines or recommendations on where we may go, how far apart we should stand whether our place of business is open or closed, where and how we can travel—there are no set rules for how to handle ourselves in this pandemic. But in the context of family law, and the reality of where you might find yourself, please consider:

You may have started divorce proceedings, or told your spouse/partner, that you wish a divorce, but you may be still residing in the same house. Many divorcing couples are compelled to do this for financial reasons. Given New Jersey Governor Phil Murphy’s recent Executive Order, there are not many places one may go to in order to “escape” from home or from one’s spouse/partner.

Be mindful that your housemate may not wish to be quarantined with you any more than you wish to be quarantined with her/him.

Even if you solely own the house, now is not the time to remind anyone of that. Now is the time to discuss how to function civilly, smartly and safely. Share resources. Money may be tight, and so are available food products. Plan together. Chances are one of you is more resourceful than the other at cooking, stretching supplies, improvising, sanitizing; one may be more adept at technology. Discuss it all, without rancor, without judgment. This crisis will pass; you will be back on track for your divorce. Perhaps the spirit of cooperation you engender now will carry over to your divorce negotiations.

But if you are in any way being physically abused by your housemate, do what you should do when there is no pandemic: call the police. Your safety comes first.

If you are in the process of a divorce or are divorced and you and your co-parent reside in different households, do not deny your children SAFE access to their other parent—Skype, Zoom, FaceTime, telephone calls as frequently as desired. Social distance walking, bike riding, skateboarding, whatever your children are into. Try to imagine what it would be like if you were quarantined away from your children.

Now might be the time to share with your children who undoubtedly, like it or not, miss their other parent, some of the good times you all had together. Look at old photos, past videos. If you have the technological capabilities, scan and send the children’s photos, drawings, letters, etc. to your co-parent. When it comes to your children, whether you reside with your co-parent or not, you are in this together; making it less painful to your co-parent will make it easier for your children as well.

All you do during this pandemic will be remembered by your children, your co-parent, your former spouse/partner— and by yourself.

What Family Law Practitioners Must Know About Life Insurance

(Past member) — Mon, 27 Apr 2020 14:12:14 GMT

By Sharon L. Klein, Family Wealth Strategist, Trusts & Estates Attorney

The Role of Life Insurance in Divorce Proceedings

In many divorce proceedings, life insurance plays an integral role as part of the ultimate resolution/settlement, whether it is an asset to be allocated between the parties or is required to be maintained for some period to secure settlement obligations.

Now more than ever – with the coronavirus pandemic wreaking havoc in this country, unprecedented jobless claims, and highly volatile markets – parties are well-advised to ensure settlement obligations are appropriately secured and to consider existing life insurance as a potential marital asset.

Periodic Life Insurance Policy Reviews Can be Critical

It is important to review life insurance policies periodically to ensure they are performing as intended at the best cost, and that the premiums are being paid by the responsible party.

A policy review may uncover some or all of the following factors:

The interest rate environment could have affected the policy performance, particularly if initial illustrations were run in a different interest rate environment
Market returns may have underachieved expectations
Policies issued prior to 2009 are based on 1980 mortality tables. Life expectancies have increased over time which may generate lower premium rates in newer policies
Newer policies have guaranteed and/or extended Death Benefit Guarantees that may not have been available with the original policy
There may have been a change in market conditions, the health of the insured or the original intention in purchasing the insurance (for example, to fund education), which may make other insurance options more attractive to consider.

Irrevocable Life Insurance Trusts (ILITs)

Utilizing an Irrevocable Life Insurance Trust (ILIT) can be an advantageous way to purchase and maintain life insurance in divorce and other contexts. An ILIT is an irrevocable trust designed to hold ownership of an insurance policy. To create an ILIT, an individual establishes a trust and transfers funds to the trust. The trustee then purchases a life insurance policy payable to the trust upon the insured’s death. The primary benefit of using an ILIT is that, upon the death of the insured, policy proceeds pass to heirs free of estate taxes. An ILIT can also hold existing policies transferred to it by an insured. Provided the insured lives for three years following the transfer of the policy, the policy proceeds can avoid taxation in the insured’s estate.

5 Key Questions Family Law Practitioners Should Consider When Dealing with Life Insurance

Crucial questions a family lawyer or other family law practitioner should consider when dealing with life insurance in a divorce proceeding include:

1. Are premium notices being sent to the correct address and are premiums being paid on time?

It is critical to ensure that premiums are being paid in a timely fashion. Failure to maintain a policy can leave the obligor’s estate liable to pay the entire amount of the insurance proceeds – but full recovery might not be possible if the estate has insufficient assets.

In Woytas v. Greenwood Tree Experts, Inc.,⁽¹⁾ a Marital Settlement Agreement (MSA) required an ex-husband to maintain life insurance policies to secure his child support and alimony obligations. The MSA provided that, if either party failed to maintain the life insurance policy requirements, that party’s estate would be liable for any outstanding obligations owed under the agreement. The policy included a “suicide exclusion” barring recovery of benefits if the insured were to commit suicide within two years of purchase, which he did. The New Jersey Supreme Court affirmed that the ex-husband failed to “maintain” life insurance, and therefore breached the MSA, entitling the beneficiaries to payment from the ex-husband’s estate for the amount of the unrecoverable proceeds. Since the estate was less than the value of the claim, the court ordered that the entire balance of the estate be paid to the ex-wife.

Similarly, if no one is confirming that the premium notices are being sent to the right address, the result can be disastrous.

In Orchin v. Great-West Life & Annuity Insurance Company,⁽²⁾ the insured’s friend and fellow dentist Orchin served as trustee of a trust holding a life insurance policy. He did not miss a single premium payment from 1993 (when the policy was assigned to the trust) through January 2009. In April 2009, Orchin moved his residence. Though he claimed to have told the post office his forwarding address, the insurance company was never notified of this change. It continued to send payment notifications to Orchin’s old address, and as a result, Orchin never received them – nor the notices that the policy was in default, nor the notice that the policy eventually lapsed.

On January 15, 2010, the insured died suddenly. At this point, Orchin realized he failed to pay the previous premium payments. Omitting to mention that the insured had died, Orchin convinced a supervisor to exercise her authority to make a one-time exception and reinstate the policy.

When Great-West discovered that the insured had died before the insurance was reinstated, they denied the claim. The insured’s wife and Orchin brought suit against Great-West for improper termination of the policy and breach of contract, and the insured’s wife also brought suit against Orchin for breach of fiduciary duty.

The court held that Great-West’s decision to reinstate the coverage was unenforceable. Although “a close question,” the court denied Orchin’s summary judgment motion because issues of fact remained. Specifically, there were questions regarding whether it was reasonable for Orchin to expect the insurance notices to reach his new address and whether he exercised ordinary diligence.

As noted, if an insurance policy required pursuant to a settlement agreement or court order lapses for failure to pay the premium, there may be a claim against the insured (or his or her estate, if deceased). However, there may not be sufficient assets to satisfy the value of the claim. Accordingly, practitioners might recommend that duplicate premium notices and/or confirmations of payment are sent to the other spouse or another party, or that some other arrangements are made to check that the policy is maintained.

As well as emphasizing the importance of having a reliable policy review mechanism in place to prevent a policy lapse, the Orchin case also highlights the issue that, when friends or family members are appointed as trustees, oftentimes they are simply unaware of the myriad of duties to which they are subject. One important step a trustee can take to minimize fiduciary risk is to hire trusted professional advisors who are cognizant of the responsibilities imposed on fiduciaries, and have expertise in fulfilling those responsibilities.

2. Is the policy properly titled from an ownership perspective?

As noted, if insurance is held in a properly designed insurance trust, the proceeds should pass free of estate taxes to heirs. If, however, a policy is owned by the insured, the proceeds will be includible in his estate, and will be potentially subject to estate tax (in 2020 the top federal estate tax rate is 40% and top state estate tax rates are 16%).

Attorneys may be subject to a malpractice action if insurance is not appropriately titled, and attorneys have been sued for failing to correctly advise clients as to how insurance should be owned. Whether a third-party beneficiary can maintain a malpractice action against an estate planning attorney depends on state law, and most states permit those actions to be brought under the appropriate circumstances. Very few states follow the concept of strict privity, which provides that only the client who suffered the malpractice can maintain an action against the attorney.

A Sampling of How Different States Approach the Issue of Privity

California

In Biakanja v. Irving,⁽³⁾ the California Supreme Court rejected the strict privity test for professional liability. That court held that the determination whether in a specific case the defendant will be held liable to a third person not in privity is a matter of policy and involves the balancing of various factors, among which are:

the extent to which transaction was intended to affect the plaintiff,
the foreseeability of harm to him,
the degree of certainty that the plaintiff suffered injury,
the closeness of the connection between the defendant’s conduct and the injury suffered,
the moral blame attached to the defendant’s conduct, and 6. the policy of preventing future harm.

Florida

In Florida, generally, a legal malpractice claim may be brought only by one who is in privity with the attorney. However, an exception exists that permits an intended third-party beneficiary of the legal services to bring suit where “testamentary intent as expressed in the will … [was] frustrated by the attorney’s negligence and as a direct result of such negligence the beneficiaries’ legacy [was] lost or diminished.”⁽⁴⁾

Hawaii

In Hawaii, a beneficiary may sue a testator’s attorney for failing to draft an instrument that carries out the testator’s intentions.⁽⁵⁾

Michigan

In Michigan, a beneficiary may sue a testator’s attorney for failing to draft an instrument that carries out the testator’s intentions. However, Michigan courts have declined to allow plaintiffs to introduce extrinsic evidence to prove the testator’s intent when the trust terms are clear and unambiguous.^[6]

New York

Until recently in New York, absent fraud, strict privity was required to maintain a legal malpractice claim against an estate planning attorney. Since negligence in the estate planning context is usually not discovered until after a client’s death, the strict privity requirement often resulted in the cause of action dying with the client.

In Estate of Saul Schneider v. Finmann,⁽⁷⁾ the decedent’s estate commenced a malpractice action against the decedent’s estate planning attorney, alleging that the attorney negligently advised the decedent to transfer, or failed to advise decedent not to transfer, an insurance policy into his own name. The result was that the insurance proceeds were includable in the decedent’s estate and subject to estate tax. With proper planning, the policy should not have been in the decedent’s name, and the proceeds should have passed to heirs free of estate tax.

The New York Court of Appeals held that sufficient privity existed between the personal representative of the estate and the estate planning attorney for the personal representative to maintain a malpractice claim against the attorney on the estate’s behalf. According to the court, the strict privity rule leaves the estate with no recourse against an attorney who planned the estate negligently, and the estate essentially “stands in the shoes of a decedent,” giving the estate capacity to maintain the malpractice action.

West Virginia

In West Virginia, a direct, intended, and specifically identifiable beneficiary may sue a testator’s attorney who prepared the will where the testator’s intent expressed in the will has been frustrated by negligence on the part of the attorney so that the beneficiaries’ interest(s) under the will is either lost or diminished.⁽⁸⁾

Perhaps the most important lesson is not to rely on a privity doctrine to avoid liability, but for family law attorneys to be cognizant of adverse tax consequences and to carefully consider ownership of insurance policies with estate planning professionals.

3. Does the Policy Have the Correct Beneficiary Designation?

Divorced individuals and those in the process of getting divorced should update all their important planning documents, account titles and beneficiary designations to be certain chosen heirs are still appropriate. Of course, during the pendency of a divorce, parties may be prohibited from transacting financial affairs except in the usual course of business for customary and usual household expenses. This prohibition is designed to maintain the status quo and preserve marital property until final determination. Accordingly, clients should change the documents they are entitled to change immediately (in most jurisdictions a Will can and should be changed as soon as possible, subject to state rights and prior agreement), and be poised to change the balance as soon as they are permitted.

What if estate planning documents are not updated following divorce, and an ex-spouse remains the beneficiary at death? About half the states in the U.S.⁽⁹⁾ have so-called revocation on divorce statutes. These statutes can revoke bequests to ex-spouses in wills or other estate planning documents if those documents have not been updated to reflect the divorce at the time of an individual’s death. However, half the states in the U.S. do not have these statutes, and even among those that do, not all revoke life insurance designations. Moreover, even if a revocation on divorce statute does apply, the statute will be inapplicable during the pendency of the divorce, until the final divorce decree is entered.

In Sveen v. Melin,⁽¹⁰⁾ decided by the Supreme Court on June 11, 2018, the court determined that the retroactive application of a Minnesota statute does not vio late the Contracts Clause of the U.S. Constitution.

The statute under consideration provides that “the dissolution or annulment of a marriage revokes any revocable… beneficiary designation… made by an individual to the individual’s former spouse.” Under the statute, if one spouse has made the other the beneficiary of a life insurance policy or similar asset, their divorce automatically revokes that designation so that the insurance proceeds will instead pass to the contingent beneficiary or the policyholder’s estate upon death. The decedent’s children argued that under Minnesota’s revocation-on-divorce law, their father’s divorce canceled his ex-spouse’s beneficiary designation, leaving them as the rightful beneficiaries. The ex-spouse claimed that, because the law did not exist when the policy was purchased and she was named as the primary beneficiary, applying the later-enacted law to the policy violated the Constitution’s Con tracts Clause.

The court found that the law does not substantially impair pre-existing contractual arrangements. First, the law is designed to reflect a policyholder’s intent – and so to support, rather than impair, the contractual scheme. It applies a prevalent legislative presumption that a divorcee would not want his former partner to benefit from his life insurance policy and other will substitutes. Second, the law is unlikely to disturb any policyholder’s expectations at the time of contracting, because an insured cannot reasonably rely on a beneficiary designation staying in place after a divorce. Lastly, the law supplies a mere default rule, which the policyholder can undo in a moment. If the law’s presumption about what an insured wants after divorcing is wrong, the insured may overthrow it simply by sending a change-of beneficiary form to his in surer.

However, the most poignant lesson to be learned from cases like this is not to rely on state default law at all and to update all estate planning documents and beneficiary designations as soon as possible.

4. Are Taxes Apportioned as Intended?

A case decided in Georgia underscores the importance of having both the correct beneficiary designation and the tax apportionment result that was intended. In Smoot v. Smoot,⁽¹¹⁾ decedent’s ex-wife, Dianne Smoot, was the named beneficiary of life insurance and retirement assets that were included in the taxable estate. The decedent and Dianne had divorced in 2006, but the decedent had not changed any of his beneficiary designations. Having lost a previous action in which the decedent’s son from a prior marriage claimed that Dianne was not entitled to the decedent’s retirement benefits, the son argued in this action that Dianne was responsible for paying her pro-rata share of the federal estate taxes. The tax apportionment clause in the decedent’s will provided for taxes to be pro-rated against those who received property included in his taxable estate.

The court held that federal law governed the tax apportionment concerning the life insurance proceeds. However, regarding the retirement benefits, the court noted that, under Georgia law, “[a]ll provisions of a will made prior to a testator’s final divorce…in which no provision is made in contemplation of such event shall take effect as if the former spouse had predeceased the testator…” According to the court, because the will made no provision in contemplation of divorce, the tax apportionment clause had to be construed as if Dianne had predeceased the decedent. Accordingly, the tax apportionment clause did not apply to her, with the harsh result that not only did the exwife receive the retirement benefits, but she received them tax-free because her step-son was saddled with the tax liability.

Although some states may have default laws that would have prevented this result (because designations are revoked in the event of divorce or because of default pro-rata tax apportionment provisions), this case is another stark reminder not to rely on state law but to carefully update beneficiary designations.

5. What is the Value of Life Insurance Policies for Divorce Settlement Purposes?

Oftentimes, parties have existing life insurance policies, the value of which is factored into the division of property between them. Under the right circumstances, practitioners can consider a life settlement: the sale of a life insurance policy to a third-party investor, to raise cash for the divorce settlement. The policy holder can receive cash for the life insurance policy in exchange for the investor taking over the premium payments and receiving the death benefit upon the death of the insured. A life settlement could potentially yield a greater return for the policy holder than surrendering the policy to the insurance carrier for the cash value. The amount of the life settlement depends upon the policy’s death benefit and the insured’s life expectancy. If the death benefit is substantial and the insured is in poor health, the value of the life settlement will be greater. In comparison, if the death benefit is not very large and the insured is healthy, the value of the life settlement might not be cost-effective.

When calculating the expected proceeds from a life settlement, practitioners should be mindful of the tax consequences. The methodology for calculating the basis of life insurance contracts was recently revised under the Tax Cuts and Jobs Act of 2017. The new favorable law provides that no adjustment to basis is made for mortality, expense or other reasonable charges incurred under a life insurance contract.

The tax treatment of life settlement proceeds is generally determined in three tiers:

Proceeds received up to the cost basis of the policy are not taxed;
Proceeds representing the difference between the cost basis and the policy’s cash value are taxed as ordinary income; and
Proceeds received in excess of the policy’s cash value are taxed as capital gains.⁽¹²⁾

It will be important to value the proceeds from a life settlement after taxes to make sure the transaction is financially sound.

The Bottom Line: Collaboration Early and Often is Key

With many nuanced areas that cross professional disciplines, clients benefit when matrimonial, trusts & estates, accounting, and investment professionals partner throughout the whole divorce process – especially during the coronavirus pandemic.

(1)Woytas v. Greenwood Tree Experts, Inc., 237 N.J. 501, 206 A.3d 386 (2019)

(2)Orchin v. Great-West Life & Annuity Insurance Company, 2015 WL 5726334, 133 F.Supp.3d 138 (2015)

(3)Biakanja v. Irving, 49 Cal. 2d 647, 320 P.2d 16 (1958)

(4)Gallo v. Brady, 925 So. 2d 363 (Fla. Dist. Ct. App. 2006)

(5)Blair v. Ing, 95 Haw. 247, 21 P.3d 452 (2001)

(6)Mieras v. DeBona, 452 Mich. 278, 550 N.W.2d 202, at 209 (1996); In re Solomon Gaston Miller Trust, No. 341502, 2018 WL 6252061, at 7 (Mich. Ct. App. Nov. 29, 2018)

(7)Estate of Schneider v. Finmann, 15 N.Y. 3d 306, 933 N.E.2d 718 (2010)

(8)Calvert v. Scharf, 217 W. Va. 684, 619 S.E.2d 197 (2005)

(9)For example, the Uniform Probate Code, in effect in Alaska, Arizona, Colorado, Idaho, Massachusetts, Michigan, Montana, New Jersey, New Mexico, North Dakota, South Dakota, and Utah, revokes dispositions to and fiduciary nominations of the former spouse, as well relatives of the former spouse.

(10)Sveen v. Melin, 138 S. Ct. 1815, 201 L. Ed 2d 180 (2018)

(11)Smoot v. Smoot, 2015 TNT 69-13, No. 2:13-cv00040 (U.S.D.C. S.D. Ga. March 31, 2015)

(12)26 U.S.C.A. § 1016. See Rev. Rul. 2020-05

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Sharon L. Klein is President of Family Wealth, Eastern US Region, for Wilmington Trust, where she also heads the National Divorce Advisory Practice. She is a Fellow of the American College of Trust and Estate Counsel and a member of its Family Law Task Force, she chairs the Domestic Relations Committee of Trusts & Estates magazine, and sits on the Advisory Board of Family Lawyer Magazine. Beginning her career as a trusts & estates attorney, Sharon has over 25 years’ experience in the wealth advisory arena and is a nationally recognized speaker and author. https://www.wilmingtontrust.com/divorce/

This article was originally posted on the Family Lawyer Magazine

Unwelcome Side Effects of COVID-19: Impact on Domestic Violence

(Past member) — Fri, 24 Apr 2020 13:54:34 GMT

By, Carolyn N. Daly, Esq. of Daly & Associates LLC

The COVID-19 pandemic has impacted all of us with orders to stay at home, self-isolate and social distance. This presents a number of unique challenges for family law practitioners. One of the most serious challenges is that for some of our clients, that mandate means that it leaves them home with their abusers.

Domestic violence is never acceptable, at any time. But now that Governor Murphy has issued a “stay at home” order, there has been an increase in domestic violence situations reported. This is unsurprising as victims are forced to remain home with abusers on a continuing basis and the situation is becoming stressful, even for the most calm among us. The opportunity for the abuse to continue or to occur for the first has therefore grown dramatically. The Department of Children and Families has been trying to raise awareness regarding this issue, even tweeting about it, and on April 2, Governor Murphy spoke about it during his daily press conference.

If you are a victim of domestic violence, it is important to remember there is help out there for you, even now:

Your first line of defense is your local police department. The police are still working to ensure you are safe and if someone commits an act of domestic violence against you, you should call 9-1-1 or go to your police station. (The County courts are closed to the public at the moment and are not taking complaints for a temporary restraining order.) Complaints for a Temporary Restraining Order are being taken and processed at the police stations with municipal court judges. Remember that many police departments have specific policies for domestic violence cases, including removing an abuser from the home if there are signs of physical abuse. The police can also put you in touch with a member of their Crisis Response Team to connect you with resources and help you in applying for a temporary restraining order.
Remember that as part of a temporary restraining order, you can ask a judge to grant you a number of things, including temporary possession of the house, temporary custody of minor children, temporary possession of your car, and/or emergent monetary relief so that you have money to pay bills and buy groceries and other necessities. Thus, no victim should be afraid that by filing for a TRO, they risk being homeless, penniless, or leaving their kids with an abuser.
The courts may be physically closed, but they are still working virtually. If the court closure does not allow your matter to proceed to a final hearing, your temporary restraining order will remain in effect for the foreseeable future.

The courts are trying to find ways to have virtual final hearings to grant or deny Final Restraining Orders and move these matters forward. They are trying to address amendments to Temporary Restraining Order, voluntary dismissals by the victim and other issues such as support, parenting time and access to the home by the accused in order to obtain personal items if not addressed in the initial Temporary Restraining Order. In Morris County, at least, they are now taking amendments via email. Anyone seeking to amend a temporary restraining order should email the request to Leila.gonzalez@njcourts.gov Be sure to include all contact information when you send the request. Then, if an amendment requires a change to predicate act or reliefs, the court will be in contact with you to schedule a teleconference with a Judge.
If you need additional help, there are a number of other organizations working tirelessly to help you, including:

-JBWS, whose Morris County Helpline Number is (973) 267-4763. JBWS is still operating their legal advocacy services telephonically, as well as remote counseling services and an emergency shelter;
-Local police departments will give you the opportunity to speak to a crisis response team member if you call them;
-The New Jersey Coalition to End Domestic Violence, whose 24 hour helpline is (800) 572-7233 or visit https://njcedv.org/covid19/ for resources.
-The National domestic violence hotline (1-877-R.U.ABUSED; 1-877-782-2873) or visit https://thehotline.org
-If all you have is a phone text LOVEIS to 22522.

If you are afraid to pursue these avenues while in the home, remember there are still a number of legitimate reasons to leave the house. You can still go grocery shopping, order curbside takeout at many restaurants for pick up, leave to get something at your local drug store, etc. Once you are out of the home, and the eyes of your abuser, you can make the necessary calls or go to the police station to seek assistance.

If you or someone you know has any questions regarding these issues or other family law, domestic violence, municipal court, or criminal law issues, we encourage you to reach out to Daly & Associates at (973) 292-9222. We are working remotely but we remain fully available to help you and your family in this difficult time.

Trust & Estates CLE Webinar - Register Now!!

(Past member) — Wed, 22 Apr 2020 17:14:03 GMT

What Family Law Practitioners Must Know about the Latest Trusts and Estates Developments.

Please join May 2nd for a half-day webinar offering 4 CLE credits in NJ, NY and PA. It’s hosted by NJICLE, in cooperation with the AAML - NJ Chapter. Spanning the process from prenuptial planning, to accessing trust assets in divorce, to potentially changing “irrevocable” trusts, to the latest dramatic tax changes, we’ll review top tips and traps to add value to your practice. Moderating and speaking is Sharon Klein, Fellow of the AmericanAcademy of Trust & Estate Counsel (ACTEC), and speakers include AAML NJ Chapter President Noel Tonnemen and ACTEC Fellows Gerard Brew and Warren Racusin.

To register and for more information please visit the NJICLE website.

AAMLConference.pdf

The COVID-19 Coronavirus Crisis and modifications of alimony payments in New Jersey --“How Can I Possibly Be Expected to Pay Now?”

(Past member) — Wed, 22 Apr 2020 13:53:40 GMT

By Richard F. Iglar, Esq. of Skoloff & Wolfe

The COVID-19 coronavirus pandemic has plunged our world into a once in a lifetime crisis--we have not seen anything like this in the United States since the Spanish Flu pandemic of 1918. Many aspects of our society have ground to a virtual halt, and our economy has been decimated. Restaurants, hotels, airlines, manufacturers, small businesses and large businesses alike, are shuttered and at risk of going out of business. Fear of the loss of employment and income is pervasive. How will this pandemic impact one particular family law issue, the issue of the payment of alimony? The divorced individual paying alimony asks, “How can I possibly be expected to pay now?”

Alimony is often the most contentious economic issue in a divorce case and that is understandable given the raw emotions and resentment involved between divorcing spouses and the economic pressure on each of them in facing the reality of having a subset of the prior family income. The COVID-19 crisis exacerbates that dynamic, with the divorcing parties facing a given set of obligations and expenses and a likely unknown fraction of future income due to the economic ramifications of the pandemic. To what extent will income be impacted and for how long? The politicians, pundits and medical experts seem to give contradicting predictions of the duration of the crisis. Will the COVID-19 crisis cause merely a temporary economic setback with income slightly down overall for the year, or on the other end of the spectrum, will it result in the destructions of businesses and permanent losses of income, or perhaps, will it be something in between these two extremes?

Legally, alimony is a function of income, and as income changes, it is logical that alimony should be changed. As a general proposition, the law provides that alimony may be modified upon a showing of a changed circumstances under Lepis v. Lepis and subsequent case law. Therefore, if there is a substantial change in income there is a legal basis for seeking a change in alimony. However, New Jersey case law has also developed the principle that the change in income must be substantial, and not merely temporary, and cases have arisen as to what period of time should have to pass before a court will recognize a situation which warrants modification. In a scenario such as the COVID-19 crisis, the decrease in income may be more obvious and more severe than in many other everyday type situations presented to courts in the past. However, an essential variable remains unknown: how long will this crisis and the economic impact last? How long must a payor wait before seeking relief from the court to modify alimony?

It appears there is a clear answer for those who are employees, that is, those identified as “non-self employed” workers. The New Jersey alimony statute, N.J.S.A. 2A:34-23, modified in 2014, clearly addresses the issue of the timing of a modification application where the payor is unemployed or “has not been able to return to or attain employment at prior income levels.” The statute in subsection (k) provides that no application may be filed until the unemployment or reduction in income has lasted for at least 90 days. Although this may delay the filing of an application, it might not delay the actual benefit to be ultimately awarded. The statute provides that the court may grant relief which is retroactive to the date of “the loss of employment or reduction of income.”

Furthermore, despite the 90 day time frame set forth in the statute, we are confronted by an unprecedented situation and there may be a genuine legal issue as to whether that time frame should still apply. An argument might be made that with businesses physically closed it would be extremely difficult for a person who has lost his or her job to obtain a new one prior to the end of the crisis. Accordingly, it may be that a family court, as a court of equity, might be called upon to relax the 90 day requirement in light of the circumstances and as a matter of justice, but this is an issue which will have to be addressed by the courts in the days ahead.

In assessing the application of the “non-self employed” individual, the court must consider the following statutory factors under N.J.S.A. 2A:34-23(k):

(1) The reasons for any loss of income;
(2) Under circumstances where there has been a loss of employment, the obligor's documented efforts to obtain replacement employment or to pursue an alternative occupation;

(3) Under circumstances where there has been a loss of employment, whether the obligor is making a good faith effort to find remunerative employment at any level and in any field;

(4) The income of the obligee; the obligee's circumstances; and the obligee's reasonable efforts to obtain employment in view of those circumstances and existing opportunities;

(5) The impact of the parties' health on their ability to obtain employment;

(6) Any severance compensation or award made in connection with any loss of employment;

(7) Any changes in the respective financial circumstances of the parties that have occurred since the date of the order from which modification is sought;

(8) The reasons for any change in either party's financial circumstances since the date of the order from which modification is sought, including, but not limited to, assessment of the extent to which either party's financial circumstances at the time of the application are attributable to enhanced earnings or financial benefits received from any source since the date of the order;

(9) Whether a temporary remedy should be fashioned to provide adjustment of the support award from which modification is sought, and the terms of any such adjustment, pending continuing employment investigations by the unemployed spouse or partner; and

(10) Any other factor the court deems relevant to fairly and equitably decide the application.

But again, in an application filed based on the economic impact of the COVID-19 coronavirus, many of these factors might be more obvious than in situations the courts have typically considered. For example, where government actions have curtailed or closed business operations, there may be no reasonable dispute about the factual circumstances underlying the alimony modification application.

What about the business owner or other self-employed individuals? The New Jersey alimony statute, N.J.S.A. 2A:34-23, addresses those payors in a separate section (l). Interestingly, there is no requirement that the reduction in income must have lasted for at least 90 days before filing in cases involving self-employed individuals. However, the applicant will certainly still have to address the legal issue of whether the change is a substantial one that warrants relief or whether it is merely a temporary change which does not warrant modification. The statute requires a comparison of the benefits from the business to the business owner at the time the alimony obligation began and at the time of the application. Specifically the statute provides the application “must include an analysis that sets forth the economic and non-economic benefits the party receives from the business, and which compares these economic and non-economic benefits to those that were in existence at the time of the entry of the order.” These statutory provisions recognize that the business owner has more flexibility in how economic benefits are paid out, whether as salary or distributions, for example, or through indirect, but real economic benefits such as the payment of expenses or other perquisites. The court must consider all of these economic benefits in evaluating the alimony modification application.

The New Jersey alimony statute also specifies a range of relief that can be granted by the court. Aside from simply modifying the support obligation, N.J.S.A. 2A:34-23(m) provides that a court can order a temporary remedy. The court can temporarily suspend support or reduce support according to specific terms. The moving party should be aware that the statute also specifies that the court can direct that support be paid from assets pending further proceedings—something which might completely undermine the moving party who seeks relief on periodic payments and winds up having the court essentially take assets away and give them to the supported ex-spouse. The court also has to the power to direct a periodic review of the situation so what might have been envisioned as a straight-forward request might lead to an ongoing examination in multiple legal proceedings.

Finally, it should be noted that the statute provides that the court may enter any other order which the court finds appropriate to assure fairness and equity to both parties. This gives the court considerable flexibility. It also provides any party seeking relief with a legal basis for arguing for what should be the right result in any alimony modification application related to this unprecedented world crisis.

With the pandemic all around us, alimony payors are now raising the legitimate and logical question of how can they be expected to pay alimony at the same levels as previously. The 2014 amendments to the New Jersey alimony statute, N.J.S.A. 2A:34-23, discussed above, supplement the basic legal principles about modification of alimony and provide further specific statutory factors to be considered. New Jersey law does provide an answer to the question being asked by alimony payors and it does provide a mechanism in order to obtain relief. Family law attorneys will now be using these tools to try to address the difficult legal issues created by the impact of the COVID-19 coronavirus and obtain fair results for their clients.

Richard F. Iglar, Esq. is a partner of Skoloff & Wolfe, P.C. and President-Elect of the American Academy of Matrimonial Lawyers-New Jersey Chapter (AAML-NJ). This article was previously published at www.skoloffwolfe.com.

Co-Parenting Through a Pandemic

(Past member) — Fri, 17 Apr 2020 13:42:17 GMT

By Carolyn N. Daly, Esq. of Daly & Associates LLC

Many parents have questions about custody and parenting time during this pandemic. The problem is there is no one answer to any of those questions. The one thing that professionals and judges do seem to agree on is that this is an overwhelming situation for everyone and that during this time, when anxiety levels are high, it is important that children are reassured by their parents and caretakers that “everything will be ok.” Most of them also agree that children need to see their parents in order for this to happen and children need to see their parents working cooperatively and responsibly during this time. Our children are understandably watching all of us for how to react.

That having been said, COVID-19 is unprecedented and many are working quickly to respond to concerns with as much information they have and with thoughtfulness. It would appear that a consensus is emerging in cases where there is an existing custody and parenting time order. In those cases, unless and until there is an order or agreement altering the current parenting schedule, then the existing order or agreement, including holiday time, is to be followed during the pandemic.

The Case for Changes in Custody Agreements During COVID-19

When faced with a request to alter custody or parenting time, the courts are looking to see if one parent can show that the other parent has COVID-19, the child has COVID-19, the other parent or child has been exposed to COVID-19 (or is at a substantial risk of exposure), or the other parent is engaging in behavior which is inconsistent with COVID-19 protocols. A parent seeking to alter the custody or parenting plan for any of these reasons should be prepared with specific evidence, or examples of the other parent’s behavior which support their request to alter or end parenting time or custody. These factors also apply to cases where one parent, a child, or member of a parent’s household has a serious medical issue or pre-existing condition making them more susceptible to the virus. If that parent can demonstrate their medical issue and provide specific examples or evidence of how the other parent is not taking precautions or following COVID-19 protocols, a court may alter the custody or parenting time of the other parent.

There are some important things to consider if there is a change in custody or parenting time by agreement or otherwise. A parent who is not going to have parenting time should absolutely be afforded an opportunity to not only have phone calls, but to video chat by FaceTime, Skype, What’s App, Zoom, Microsoft Teams, etc. This time should be in a room or place where the child is alone with the other parent. The other parent can help with homework, e-learning, watch a movie, play a game, read a book or do hundreds of other things with the child(ren) that I am sure others have already suggested. If there is more than one child, then maybe there should be one video session for each child so that they can have time with the other parent. Additionally, the parties should absolutely agree, or the court should provide, that there will be make-up parenting time as soon as the stay at home mandate has been lifted, provided both parties are prepared to abide by any COVID-19 protocols that exist at the time, or any other protocols that the parties themselves agree are appropriate.

Parents can also consider alterations to their current parenting plans if they are going to continue exchanging the children during this time, such as the location of pick up and drop off. If it was previously in a public place or at school, then you may want to change it to somewhere more private or accessible. If there is restraining order in effect, or other concern, then the parties could alter their location for exchange to curbside at each other’s residence or a police station convenient to both.

If the parties’ parenting time provides for frequent exchanges of the children each week, for example if one parent has one overnight each week and every other weekend from Friday night to Monday morning then maybe the every other weekend should be extended to being from Thursday night until Monday night at 5 pm and the mid-week overnights suspended until the stay at home mandate has been lifted. For parents with 50-50 parenting that isn’t on a week on\week off basis, perhaps they should consider moving to that schedule on an interim basis so that there is an exchange only once per week. The children are all e-learning and have no extra-curricular activities they are attending in person so this might be a perfect opportunity to try other parenting schedules.

Making New Co-Parenting Decisions as a Family

What parents should always remember is that these are your children and your family and a court will never be upset if you reach an agreement on how to handle these issues amongst yourselves. In fact, they welcome it. With that in mind, parents should be aware that the courts have limited resources and these are only a few of many issues being raised to them on an emergent basis. Therefore, it would be wise to reach out to the other parent with concerns and attempt some simple problem-solving before initiating court proceedings. If the parents can’t resolve the issue amongst themselves, there are also a number of mediators, statewide, who are ready to assist them, by phone or video conference, from anywhere, to resolve this issue quickly.

The bottom line is the courts will address these issues on a case-by-case basis and what is needed now for families is more cooperation and less litigation. This situation should not be seen as an opportunity to withhold or terminate parenting time from a parent, absent truly emergent circumstances. The American Academy of Matrimonial Lawyers has put up guidelines for parenting during this time, which can be found here. A very thoughtful judge from Canada gave a well-reasoned decision in an application to alter parenting time during this pandemic, which has been circulated by professionals in this state, and can be found here.

Parenting time when there is domestic abuse could be a whole other discussion. However, what I can tell parents is that the courts are open and hearing emergent matters by phone or video conference. The same factors and considerations set forth above apply. If an abuser refuses to allow a child to return to the ex-spouse and there is no valid reason to do so and you can’t resolve it otherwise, you can file an emergent application for the return of the child. The application can be found here on our website under the button on the first page “Our Response to COVID-19”

This article was originally posted on New Jersey Family

COVID-19 and Parenting Time: A Guide for First Responders (and Others)

AAML NJ Admin — Mon, 13 Apr 2020 19:59:24 GMT

By Carolyn N. Daly, Esq. of Daly & Associates LLC

We are in the midst of a serious crisis. Unfortunately, some parties are taking that only too literally, weaponizing the current pandemic and social distancing guidelines to restrict the other party’s parenting time and ability to see his or her children. This is particularly true among first responders or other “high risk” individuals who are continuing to work and risk exposure to the virus. This crisis should not be seen as an opportunity to withhold or prevent parenting time between a parent and child unless there is a demonstrable risk to a child.

The American Academy of Matrimonial Lawyers (AAML) and the Association of Family and Conciliation Courts (AFCC) attempted to get ahead of this issue, and issued guidelines on March 17, 2020 regarding parenting time in the midst of our current “social distancing” which can be found here https://aamlnj.org/njresources However, stories continue to arise around the state of individuals who are going to the courts to attempt to suspend parenting time because of this pandemic or to seek the continuation of parenting time when one parent unilaterally stops parenting.

This is a difficult situation, and every case has its own unique circumstances which must be considered. The consideration changes if, for example, you live with individuals older than 65 or someone who has respiratory issues – in other words, if you risk exposing not only your child to the virus, but an at-risk individual who has a higher mortality rate because of their pre-existing conditions. Generally, however, the first thing all parents must be aware of is that they really have only three options: (1) they can work something out amongst themselves, taking into account the best interests of the child; (2) they can hope that a judge will see things their way and apply to change or limit parenting time when necessary; or (3) they have to follow the Court Order currently in place. What is not an option, however, is to knowingly violate any court order in place and unilaterally change parenting time – courts have never looked kindly on self-help. Parents also risk running afoul of criminal law. N.J.S.A. 2C:13-4 provides that if you withhold a child for more than 24 hours you could be charged with interference with custody, a crime that is a second degree offense and carries with it a presumption of imprisonment.

Work it Out

The one way to ensure everyone is safe, healthy and happy is to work things out amongst yourselves, with mediators, parenting coordinators, attorneys, pediatricians or other members of the community, as necessary. In doing so, you can craft a plan that works best for you and your children, as opposed to hoping someone else will make the right decision for you based on what information they have had thrust before them. Parents can always modify parenting plans amongst themselves in order to ensure minimal transfers. If, for example, you have “50/50” custody requiring multiple back-and-forths per week, you could instead switch to a “week on/week off” plan temporarily if that works for you. Such a temporary plan would allow for fewer transfers and, therefore, less risk of exposure. If someone does become positive for COVID-19, you should work to ensure liberal access to the children via all of the video conferencing applications available

today, as well as provide make-up parenting time once that individual is all clear. It is important to remember that central to any discussion should be what is best for the children – and that may not always be the same in each case. What matters is what works for your children and family.

When it comes to individuals who are still working and potentially risking exposure, you only need to peruse local Facebook groups to find a myriad of opinions of what should be done, ranging from “keep the kids home” to “follow the court orders.” What’s important to remember is that as recently as March 30th, the government has said that social distancing guidelines will continue to be in place for a month and that the “peak” of cases could be weeks away. Simply cutting off contact with one parent for a month or more is not acceptable if based solely upon a parent’s employment responsibilities.

Think of it this way: what if you were still living together? Would you think it reasonable to suddenly stop having contact with the children? What about a decision to move out and self isolate? In most cases, the answer is probably no, although there are some families who have done this or sent their children to live with relatives. Parents still living together would work cooperatively and take appropriate steps to minimize the risk of exposure; such steps might include completely disrobing in the garage and bagging clothes to go into the wash and then taking a towel and going right into a hot shower as recommended by some. Just because you’re divorced or living separately,the children should still be able to see both parents as long as there isn’t an emergent and clearly identifiable risk.

Of course, on the other side of this, it is important that both parents remain as healthy and mindful as possible. Wherever possible, practice social distancing. Children should not be exposed to two sets of rules – one parent allowing friends over, treating this as an extended summer vacation, and the other practicing strict social distancing with no friends and a strict school-like schedule. This will only confuse the children, and the parent not practicing social distancing (in spite of all the guidelines) will not find themselves in front of a very happy judge if it comes to that.

Parties also should remember that the other parent is not being “irresponsible” if they are continuing to visit with their new romantic partner, or exposing the kids to that partner. In fact, Governor Murphy’s Executive Order specifically allows visitation with “family or other individuals with whom the resident has a close personal relationship, such as those for whom the individual is a caretaker, or romantic partner. This also means that you are allowed to travel for purposes of picking up/dropping off children and would not be violating the Governor’s Order since this is a legitimate purpose.

Again, the most important consideration is what is in the best interests of the child. How do parents work together to ensure this? The answer will be different for each family, as each family has unique circumstances that require additional consideration.

The Right Solution for Your Children

Co-parenting is of the utmost importance to the courts and decisions should be made by both parents to ensure uniformity and access. You should also remember that if you cannot come to a solution on your own, family law attorneys trained to handle these situations are here to help. At Daly & Associates, we have attorneys who are ready to help. Ms. Daly is a trained mediator and has been appointed as a parent coordinator and guardian ad litem by the courts to help in these situations. If you are a first responder in need of assistance, call and ask about our special rates for you to help you while you are putting yourselves on the front lines to help us. We may be working remotely, but we are still here for you during this difficult time.

COVID-19 and Maternity Ward Visitation Restrictions: An Attorney's Take

AAML NJ Admin — Sun, 05 Apr 2020 18:38:07 GMT

By Carolyn N. Daly, Esq. of Daly & Associates LLC

It’s finally here. Some people dream of having kids from a young age, and others later. Regardless it becomes real and exciting and scary the moment you hear you are pregnant. Now you are finally at the point where mom is in labor (or is scheduled to go in for a pre-planned, medically necessary C Section), and you can’t wait to meet your newborn and neither can your family. But now, because of COVID-19, you may all have to wait. That’s what hospitals in New York were telling partners, grandparents, siblings, and more: that in the age of social distancing, you can’t come meet your newborn. You can’t care for your partner, who will have to go through labor, delivery, feeding, and recovery alone. And in New Jersey this restriction is being considered as well. A “necessary precaution” of the world we currently live in.

As just one example of this, Mount Sinai Health System’s restrictions allowed zero visitors (not even the father), until New York put a stop to it. Mount Sinai is a health system that has 15 locations around the New York Area. They justified their decision by stating that they are doing this “to provide the safest environment possible to protect our patients, staff and visitors.” (Well, if having birthing partners, who are emotional support in the very least. present is a risk, then perhaps there should be no visitors at all.) The hospitals say they want to “prevent avoidable exposure to mothers and babies,” and claim their moves are “critical to ensure that we can continue to slow the spread of COVID-19.” Mount Sinai acknowledges “how important it is to connect with loved ones,” but makes the decision to prevent such connections. More than 600,000 people had signed this petition to attempt to have these restrictions lifted.

Now here’s the good news for New Jersey residents (for now) – the two largest hospital systems in the state, Hackensack Meridian Health and Atlantic Health, are both allowing one visitor or “support person” in maternity wards. As recently as 8:48am on March 25^th, Atlantic Health updated their visitor policy to no longer allow visitors for surgical patients, but still allow a “designated support person for patients in the maternity centers.” We can only hope this continues – but what if it doesn’t?

While this is going on, the courts are doing everything they can to prevent the spread of this disease, including by going almost completely virtual. The Supreme Court, the Administrative Office of the Courts, and the local Assignment Judges should be commended on getting everyone “up to speed” on virtual hearings as quickly as possible, and so far the court system is moving as best it can. Obviously, in these times, it is important, as attorneys, that we not overburden the courts with issues that can be worked out between parties. At Daly & Associates, for example, we are encouraging all of our clients to utilize mediation and other “out of court” measures to settle their matters before going to court. However, a parent’s attendance at the birth of the child is a momentous occasion, which may not be repeated, and it’s not one that should simply be delayed. This is a potentially emergent matter – and it’s likely only a matter of time before the courts are asked to weigh in on this issue.

Here are some facts and arguments we suggest lawyers and litigants consider when advocating on behalf of a client should they seek to file an emergent application on this issue, taking into account the factors the Courts consider for emergent applications:

(1) Whether the petitioner will suffer irreparable harm.

In considering irreparable harm, one should first consider who the “petitioner” is. Should mom be suing for a support person? Should the partner be suing for the right to be a support person and to the see their child born? Or should the parents be suing on behalf of their unborn child?

Here is one of the most stunning facts that calls into question the decisions of hospitals that suspend all maternity visitations. The World Health Organization is against it, even in light of COVID-19. According to their “Q&A on COVID-19, pregnancy, childbirth and breastfeeding,” the WHO states that “all pregnant women…have the right to high quality care before, during, and after childbirth. … A safe and positive childbirth experience includes: … having a companion of choice present during delivery.” So in spite of COVID-19, the WHO still believes in the importance of having a support person present. It’s not hard to see why they’ve come to this conclusion. According to developmental and behavioral pediatrician at The University of California at Davis' Dr. Mary Beth Steinfeld, “a normal, full-term baby is…programmed to initiate and enter into a bonding relationship. … When a caregiver consistently responds to an infant’s needs, a trusting relationship and lifelong attachment develops. This sets the stage for the growing child to enter healthy relationships with other people throughout life and to appropriately experience and express a full range of emotions.” Dr. Steinfeld furthers “the first few days of life are believed to offer an optimum opportunity for bonding to take place.” But do they need both parents there? According to Dr. Steinfeld, “[a]bsolutely.” The National Institute of Health, WebMD, Psychology Today, Sanford Health, and Medscape have some of additional details on the data and research regarding the importance of immediate bonding for both parents.

Further, without a support person, moms may be more susceptible to post-partum depression (see the CDC's fact sheet on depression in women, which notes “stressful life events” and “low social support” as risk factors). And the newborn risks missing what Dr. Steinfeld calls the “optimum opportunity” for bonding to take place. Clearly, there is irreparable harm to all of these parties.

(2) The legal right underlying the petitioner’s claim is settled.

Once you have proven there is irreparable harm, you must show a settled legal right. In this case, one need only look to the WHO’s standards as showing a legal right. You could also look to the fact that most U.S. hospitals allow bonding as a standard practice. According to Dr. Steinfeld “standard practice in most U.S. hospitals allows mothers and babies as much time as possible together after birth. Even when babies are born ill or premature, the importance of bonding is recognized. Whenever possible, health care providers in intensive care units try to create opportunities for parents to spend time holding and caring for their babies.”

According to Atlantic Health, patients have a right “to receive considerate and respectful care consistent with sound nursing and medical practices.” Hackensack Meridian says right on their website for maternity services that they “encourage the father or support person to take an active role in the birthing experience,” and even note that “it takes a village to have a child.” The hospitals themselves recognize this important right.

(3) Whether the petitioner is likely to prevail on the underlying claim.

Given the wealth of information about the importance of bonding, as well as the rights as defined by the hospitals themselves, one can clearly make an argument that a petitioner is likely to prevail on an underlying claim. You may also have specific circumstances to further support your claim – for example, if mom is giving birth by way of Cesarian-Section, she will have limited mobility and it will be even more important to have someone there to help. And in the era of COVID-19, we already know nurses and doctors are stretched thin; won’t they feel better knowing someone else is there to watch over mom and baby and only alert them when something has gone wrong so they can focus on other patients?

(4) The relative hardship to the parties in granting or denying the requested relief.

The hardship to the hospital is obvious, and the factor the hospital will likely focus on the most is that they are trying to prevent the spread of COVID-19 to other patients and healthcare workers. They are doing their part to “flatten the curve” by mandating social distancing. But the articles referenced above make very clear the hardship to the parents and child may outweigh those and certainly a hospital, better than most institutions, can protect again the potential for cross-contamination. When balancing all of the factors, a court may have a difficult time finding the hospital’s hardship overcomes the hardship of the parents and child, especially given their parens patriae power.

All of this is very new with unforeseen consequences and it is obviously important that we all take part in “flattening the curve” to preventing the spread of this disease. However, it is also important that we look to protect our parents and children and their future. We certainly do not want to not handicap that future by over-restricting ourselves in the present.

If you or someone you know has any questions regarding the topic of this article or other family, domestic violence, municipal court, or criminal law issues, we encourage you to reach out to Daly & Associates at (973) 292-9222. We are working remotely, but are fully ready and able to help your family in this difficult time.

Will any children ever be able to leave NJ again?

AAML NJ Admin — Sun, 29 Mar 2020 18:53:50 GMT

By Paul Townsend, Esq.

Ever since the Seminole case of Bisbing v. Bisbing, 230 N.J. 309 (2017), New Jersey relocation law has been in a state of almost mandatory best interest hearings “ in all contested relocation disputes…” . In Bisbing, the Court held that a best interests analysis is required “in all contested relocation disputes in which the parents share legal custody - whether the custody arrangement designates a parent of primary residence and a parent of alternate residence, or provides for equally shared custody.” Further, the New Jersey Supreme Court concluded that a relocation decision when the parents share legal custody should be treated in the same manner as the original custody determination. To further compound the problem, most recently in the case of [A.J. v. R.J., 461 N.J. Super. at 176] a case of intrastate relocation post judgement the Appellate Division held.

in cases where a court exercises its authority pursuant to R. 1:10-3 and 5:3-7(a)(6), it must make findings under N.J.S.A. 9:2-4 that the sanction imposed is in the best interests of the children. We further hold the factors in Baures v. Lewis, 167 N.J. 91, 770 A.2d 214 (2001) no longer apply when a court is addressing an intra-state relocation, and instead, pursuant to Bisbing v. Bisbing, 230 N.J. 309, 166 A.3d 1155 (2017), the court must apply N.J.S.A. 9:2-4.

The area of New Jersey relocation law, whether it be intra or interstate relocation, will continued to demand a best interest evaluation and as such will be difficult if not impossible to prepare for and to schedule with the court. The consequences of this state of almost mandatory “best interests” analysis and its impact upon the already jammed court docket has yet to be seen by the family practitioner. But it certainly appears that all relocation matters are going to need a best-interest hearing under Bisbing. Which in turn leads us to the question: with the family courts as backed up as they are and with forensic evaluations taking as much as one year, will any child ever be able to leave New Jersey again? With the way the system is operating now I believe the answer could be no!

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5 Steps for Stepparents

AAML NJ Admin — Sun, 15 Mar 2020 19:00:00 GMT

By Amanda Trigg, Esq.

In 2020, families come in all shapes and sizes. Within each generation, there may be multiple combinations of parent/ child relationships that impact how your family functions. Help your family enjoy each other as much as possible by considering these practical tips.

Be Real. Don’t ignore the potential problems that your family faces if one parent who has children with multiple partners, or one parent has a partner who has children with others. Be realistic and address the questions about scheduling, rules, and plans that truly impact all of the children.
Be honest with each other. Learn and work with existing agreements about parenting schedules, a radius clause (which dictates how far parents can move away from each other), the choice of a child’s school district, transportation obligations, and, always, financial obligations.
Be literal. Get out that paper calendar, or invest in good computer software, to chart out the various parenting time scenarios. Do not risk creating last-minute problems when you realize that the kids’ schedules do not work the way you all expected. For example, it is almost universally accepted that the children will spend Mother’s Day with their mother and Father’s Day with their father, but that can result in step-siblings never sharing the day amongst themselves unless the parents can be selfless and see a different way to approach these days of cultural significance.
Be Inclusive. Without knowing how all of the adults feel and think about the children’s schedules, you cannot know the full range of options for maximizing everyone’s enjoyment of each other. Though it may be difficult, consider including the other parents in discussions, for the benefit of all of the children and adults involved., Many parenting plans include broad provisions for attendance at important family functions, but with multiple layers of family involved, you might propose opening the door to promoting broader involvement with all parts of the family. For example, some written agreements include specific clauses:

Family Events
: The parties will work together for the benefit of the children and be flexible with each other so that the children will not miss family events of either parent unless there is a conflict between two equal family events. In the event of a conflict, when both parties seek to have the children attend a family event, the regular parenting schedule shall control.

5. Be resourceful. Even the most open-minded parents cannot anticipate every scenario and opportunities to be contentious and to disagree will arise. Avoid taking that bait. If the situation needs professional input, call an experienced family law attorney, consider involving one therapist for all of the children and if necessary, an all else fails, seek a court order that all adults must cooperate or waive his/her right to give input or have the right to raise a parenting time dispute.

*****

Questions? Contact the Family Law Team at Cohn Lifland Pearlman Herrmann & Knopf, LLP at 201-845-9600.

Attorney fee awards may be enforceable through qualified domestic relations orders

AAML NJ Admin — Tue, 03 Mar 2020 17:50:00 GMT

By Jean Ramatowaski, Partner, Ramatowaski & Schwartz

There can be a significant injustice to a party seeking to enforce a support or property right against their former spouse. The cost.

Attorney’s fees may be awarded to help make the supported party whole. Attorney’s fees are granted based upon good faith versus bad faith standard amongst other criteria. A court order enforcing a previously ordered obligation, without addressing the cost resulting from the application to obtain the order, can only leave the moving party further in debt. This could make it cost-prohibitive to even seek to enforce a support or property right.

Attorney’s fees that are awarded in the establishment or enforcement of support obligations are enforceable through enhanced wage garnishments; up to 55% of the supported spouse’s disposable income. If retirement assets exist, an award of attorney’s fees can be collected along with support arrears from the payor’s share of these assets by way of a Qualified Domestic Relations Order.

The Appellate Division recently acknowledged the collection of attorney’s fee awards as an exception to the anti-alienation provisions of ERISA. “The anti-alienation provision reflects a policy ‘to safeguard a stream of income for pensioners (and their dependents, who may be and who usually are blameless) even if that decision prevents others from securing relief for wrongs done them.’” Orlowski v. Orlowski, 459 N.J. Super. 95, 104 (App. Div. 2019) citing Guidry v. Sheet Metal Worker’s National Pension Fund, 493 U.S. 365, 376 (1990). “When a marital decree qualifies as a QDRO, the anti-alienation provision does not apply.” Orlowski, at 105.

To qualify as a Qualified Domestic Relations Order under ERISA, the required payment must be allowed under the terms of the retirement benefits plan, must be made to a dependent, not their attorney, and must be related to the payment of support or equitable distribution.

A failure to grant this relief addressing collection when available would cause a reduction in the relief otherwise granted to the moving party by the number of the attorney’s fees it cost to obtain the court order.

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For more information, you can contact Jean Ramatowski at 732.613.8300.

Warn clients about the change in taxation of trust income after divorce

AAML NJ Admin — Fri, 21 Feb 2020 20:15:00 GMT

By Sharon Klein, Wilmington Trust

Does your client know that after a divorce he/she may be responsible for paying the income taxes on trust distributions made to an ex-spouse forever?

Check out my recent podcast recorded for Family Law Magazine regarding dramatic changes in the taxation of trust income after divorce.

https://familylawyermagazine.com/articles/podcast-new-tax-laws-for-trust-income-following-divorce/

The tax consequences of every trust created during a marriage should be factored into the divorce settlement negotiations or presented in evidence to a court.

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If you would like to discuss, please feel free to contact Sharon L. Klein, President, Family Wealth, U.S. Eastern Region, Head of Matrimonial Advisory Solutions Practice, sklein@wilmingtontrust.com, 212-415-0531

Divorce Talk: Wait! What?

AAML NJ Admin — Mon, 27 Jan 2020 17:00:00 GMT

By Peter C. Paras, Esq. Partner at Paras, Apy, & Reiss.

A few years ago a billboard prominently placed in Times Square read:

“Hi Steven,

Do I have your attention now?

I know all about her, you dirty,

sneaky, immoral, unfaithful,

poorly-endowed slimeball.

Everything’s caught on tape.

Your (soon-to-be-ex) wife,

Emily

p.s. I paid for this billboard

from our joint bank account.”

The attention of commuters, tourists, and New Yorkers was captivated by this assault on decorum for days. The media picked up the story and speculated about who Steven and Emily were.

And then, a few days later, it was revealed that this was a fictionalized marketing ploy by an ad agency charged with promoting a new television show. It seemed so real, so believable – and that’s why it was so effective. The billboard was certainly within the realm of bizarre behavior often exhibited by divorcing spouses.

The billboard wasn’t real, but these stories are. One late afternoon I received a call from a client who had retained me a day or two before. He explained that he had just gotten home from work and was sitting on the floor. Why, I asked, was he telling me that? “It’s the only thing left”, he replied. His wife had plotted to move out, lock, stock and barrel while he was at work.

Another client returned home from work one evening, opened his closet, and found the left sleeves of every garment he owned in a heap on the floor. In a fit of anger, his wife let her sharp scissor do her talking.

And then there was “Hairless Joe.” Joe had a side job that his wife knew about and benefitted from economically. Joe made pornographic films and that was alright with his wife. What wasn’t alright was when she returned home one afternoon to find him co-starring in his next film with two naked women. The film, titled “Hairless Joe” because Joe shaved his head, was an asset, his wife claimed, that was subject to equitable distribution. Joe argued that it wasn’t.

The Judge’s decision didn’t make anyone happy. He decided that the film was, indeed, subject to the wife’s claim for equitable distribution, making Joe unhappy. But then he found that the film had no value (after reviewing it in chambers several times), making both unhappy.

Just last month, billionaire Harry Macklowe took a parting shot at his ex-wife, with whom he had recently gone through an acrimonious divorce. He placed a 42-foot photo of his new fiancée and himself on New York City’s tallest apartment building, professing their love for each other. There was no missing the portrait, nor his point.

In a Seinfeld episode, Elaine, during a conversation with Jerry, remarked, “People!” Jerry responded, “Yeah, they’re the worst.” People aren’t “the worst”, but people going through divorce can be. Don’t be one of those people. No one can take your dignity from you, but you can give it away. Don’t do it.

*****

Peter C. Paras is a shareholder in the Family Law Firm of Paras, Apy & Reiss, P.C. For more information please see the firm’s website at www.par-law.com.

The information in this article is not intended as legal advice. For legal advice, you should consult your attorney.

Should more than two people be legally allowed to marry each other?

AAML NJ Admin — Wed, 15 Jan 2020 15:40:00 GMT

By Lynne Strober, Mandelbaum Salsberg P.C.

I thought I would use this blog as an opportunity to raise a very out of the box issue: Should more than two people be legally allowed to marry each other?

We see multi-person relationships in the news, in marriage columns, social discussions and political analysis.

The new term is “trouple” or “throuple”. A trouple is a relationship where three individuals are in an equally exclusive relationship. The circumstances currently vary. On some occasions two marry and the third comes along. In other situations none may marry.

In the University of Pennsylvania Journal of Constitutional Law on line January 2017 entitled “Plural Marriage: When One Spouse Is Not Enough”, the oral argument during Obergefell v. Hodges, 135 S. Ct. 2584 (2015), which is the case holding, by a five-four ruling, that under the Fourteenth Amendment of the United States Constitution all states must license a marriage between two people of the same sex and recognize such a marriage if it was lawful licensed and performed in another state, raised the issue of multiple party marriages. This article references comments made by Justice Roberts that the arguments supporting same-sex marriage could be used with equal force to justify plural marriage. There was another exchange during that oral argument when it was said, according to the law review article, Justice Alito asked:

Well, what if there’s no – these are four people, two men and two women, it’s not – it’s not this sort of polygamous relationship, polygamous marriages that existed in other societies and still exist in some societies today. And let’s say they were all consenting adults, highly educated. They’re all lawyers. (Laughter.) What would be the ground under – under the logic of the decision you would like us to hand down in this case? What would be the logic of denying them the same right?

Currently, more than two people can’t all marry each other. However, if the three people are in an equally committed relationship and two of them marry, the third person, who is unable to marry, risks suffering economic loss. Their property rights, rights to inherit, tax rights, interest in retirement assets and medical benefits all suffer. They cannot receive social security based upon the earnings of the two that are married. Survivorship benefits are gone. While there are no marital benefits for the non-married person, obviously, they can be provided for by a plan such as a trust or other financial arrangement. There is no spontaneous entitlement. The third person in the trouple is treated in a discriminatory manner. If the three members of the trouple decide that the three of them will not marry than all three lose rights. They are all discriminated against.

The seminal case on polygamy is the 1878 Supreme Court case Reynolds v. United States, 98 US 145. That case held that a religious belief could not be accepted where the law makes the act illegal. The evidence of religious beliefs was not admissible because the Court does not control ideas, it controls practices and behavior. The Court held the view that the marriage was perpetrating a crime against innocent woman and children; the argument that the law should not have been enacted is not a defense. Evil intent is not necessary. Knowingly violating the law for religious reasons does not make the law invalid. While the Mormon Church held to the position at the time that male members of the Church should marry more than one woman and not to do so risked the penalty of damnation in the life to come, it was not legal to do so. Therefore, religion pitted against the state created to say the least a very difficult problem. The law remains in effect; an individual cannot marry more than one person.

The University of Pennsylvania article goes on to discuss that applying the principles of same-sex marriage to plural marriage gives rise to its’ further consideration. These points are highlighted as follows:

Applying these principles to plural marriage, it can be argued that:

1. Plural marriage-like same-sex marriage is encompassed in the right to personal choice inherent in the concept of individual autonomy.

2. The right to marry is fundamental but nowhere is it required that it be limited to two people, just as it is nowhere written that it must be limited to individuals of the opposite sex.

3. Just as prohibiting same-sex marriages would harm and humiliate the children of such unions, so prohibiting plural marriages harm and humiliate the offspring of such unions who most likely would be more numerous.

4. Just as it would be demeaning to lock same-sex couples out of a central institution of our nation’s society, it would be just as debasing to bar polygamous couples from this institution.

So, we are faced with a quandary.

The same Law Journal article requires that we go back to Judge Roberts’ assertion that same-sex marriage gives rise to a reconsideration of plural marriage:

One immediate question invited by the majority’s position is whether States may retain the definition of marriage as a union of two people. Although the majority randomly inserts the adjective “two” in various places, it offers no reason at all why the two-person element of the core definition of marriage may be preserved while the man-woman element may not. Indeed, from the standpoint of history and tradition, a leap from opposite-sex marriage to same-sex marriage is much greater than one from a two-person union to plural unions, which have deep roots in some cultures around the world. If the majority is willing to take the big leap, it is hard to see how it can say no to the shorter one.

Of course, we then have the question of how many people can participate in a plural marriage. Can ten people marry? Are we limiting marriage to a certain number of people? So, what happens if some of the members of the plural marriage wished to get a divorce, but not all? How are their property and support rights addressed?

The biggest question here is the discrimination to the third or fourth or whatever number of people that are in the relationship with the two married people. They are being discriminated against and they are losing economic rights that belong to the two that are married.

Clearly, there is nothing in the law that addresses this issue. The laws are a reflection of a present society guided by precedent. This is a hot topic in the news as to the existence of the trouple relationship but not what happens if that relationship is fully legalized.

Some or all individuals in the multi-person are being denied the benefits of the law. They are being precluded from receiving some benefits that others receive. One of the questions is whether if the door is open to review the status of multiple individuals marrying, an article in the University of Illinois Law Review 2016 concludes with:

While voidance of the reference harms would certainly be a compelling state interest for criminalized polygamy, there are questions about whether the global empirical evidence is sufficiently strong to create the necessary foundation between polygamy and these harms giving the lack of statistical data on the outcome of polygamous Americans and the negative impacts of criminalization itself. A second concern is whether the prediction that decriminalization for religious practitioners will result in a non-trivial growth in the polygamous population in the United States is sufficiently convincing. This is relevant both to the issue of whether there is a compelling state interest in that exempting religious practitioners and whether the only possible less restrictive alternative to criminalization, legal non-recognition of polygamous marriages, would be a sufficiently effective way to keep polygamy in check. If, however, the decriminalization of same-sex marriage is a good analogy, then there’s evidence that decriminalization will lead to legal recognition, making legal non-recognition an entirely ineffective alternative.

If these questions can be successfully resolved, state criminal polygamy laws can survive the strict scrutiny required by many-RFRAs that allow federal RFRA juris prudence. Regardless of the outcome what emerges from this analysis is that scrutinizing polygamy poses difficult questions for RFRA strict scrutiny itself.

Allowing multiple marriages would create a floodgate of laws that would need to be modified. It would take enormous work to permit it. It will probably only occur in limited circumstances. Society may not be ready for this. Even if society is ready the legislatures may not be ready to change all the necessary laws. Reynolds, however, interestingly, seems to have the last word as the case holds that:

“The Court should consider the history of the times when the law was enacted.”

If we look at society now, the question is has the time come? How would we open up the floodgate of laws that would need to be changed? Is the risk of discrimination and loss of participation in the rights of married people enough for us to review the entire situation?

Again, what are the considerations in whether multi-person marriages should be permitted:

1. Are all the individuals in the multi-person relationship equally protected? Are all individuals treated the same and have the same right to be in the same relationship? If they are all not able to marry, will they all be receiving equal protection under the law?

2. Massive law changes are necessary so that marriage provides all the individuals that are married the same rights and not just to the actually married portion of the relationship.

3. What happens with regard to marital rights? As with all marriages, we have to assume that some of these multiple-person marriages will end in divorce. In a multiple marriage, would the whole unit have to terminate its’ existence or only those who wish to withdraw from the marriage/divorce be able to do so?

4. So hypothetically, if A,B,C,D and E are married, if A seeks a divorce and the remaining unit were to pay alimony and equitable distribution and then B were to seek a divorce, are B,C,D and E still paying alimony to A and then do they have responsibilities as to B? This would be very complicated, to say the least. As to children, what happens to custody. There would be may psychological parents and relationships that would need to continue to provide for a child’s best interests. What about child support? Who would be paying the child support? Would major decision-making powers belong to all the members of the marriage? One could only imagine the layers of multiple marriages with divorce and remarriage. However, the law managed to deal with two people at a time. It is assumed it will be able deal with more. The answer perhaps is that as issue arise the law will address them, as always

5. It is assumed that the percentage of the population desiring to be in a more than two person marriage is limited. Should the law provide for those individuals who desire to be in a multiple person marriage or not open the door?

6. Could more than two people adopt a child? When a child is born of a marriage of more than two people, are all the members of the marriage to be given parenthood rights?

Clearly, there are more questions than answers and more roads to travel. I offer this analysis of issues arising as a result of the presence in the news and in social commentary of multiple individuals in marriage-like relationships, and discussions of actual marriages between multiple parties. This analysis may spark discussion or go nowhere; who knows what the future holds.

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Grounds for Divorce in New Jersey

AAML NJ Admin — Wed, 11 Dec 2019 22:54:00 GMT

By Jeralyn Lawrence, Esq., Managing Member and Founder of Lawrence Law.

A client may want a divorce, but may be unsure on what basis a court would grant them a divorce. In New Jersey, there are several grounds for divorce. The legal term for grounds for divorce is “cause of action.” In every divorce, a party has to allege a specific cause of action that warrants a legally sustainable basis for a divorce.

Irreconcilable Differences

The most utilized cause of action is irreconcilable differences. A party may plead that there have been “irreconcilable differences which have caused the breakdown of the marriage for a period of six months and which make it appear that the marriage should be dissolved and that there is no reasonable prospect of reconciliation.” Accordingly, a party can simply plead irreconcilable differences, with no other allegation, and meet the legal standard of irreconcilable differences. There is no requirement for a period of separation. There is no need for name calling or disparaging the other party. A simple and innocuous assertion of irreconcilable differences is enough to meet the standard.

Filing under irreconcilable differences allows divorcing parties to proceed in a kinder, gentler fashion. This is extremely important to many couples, particularly those with children. Because divorce pleadings are public record, many clients are uncomfortable having to air the private and personal details of their married life in a divorce pleading.

Extreme Cruelty

Prior to the enactment of irreconcilable differences as a viable cause of action, most couples proceeded on the grounds of extreme cruelty. In this situation, a client has to assert acts of extreme cruelty that occurred during the marriage. I require my clients to provide me with six to eight allegations. Some struggle to have three allegations, while others give me hundreds. The beauty of irreconcilable differences is that a client no longer has to engage in this type of mudslinging. They still can, if they wish, but with irreconcilable differences available as grounds, they have the option not to.

18 Month Separation

In addition to irreconcilable differences and extreme cruelty, parties can file on the grounds of an 18-month separation. This cause of action is not widely utilized because most people cannot afford to live separate and apart for 18 months before filing for divorce. Therefore, these litigants were forced to allege extreme cruelty and come up with allegations against their spouses. Now the farce is over, and clients can simply say they have irreconcilable differences to meet the legal threshold necessary to file a complaint for divorce.

Other Grounds

In addition to irreconcilable differences, extreme cruelty, and 18 months separation, a party can proceed with an adultery cause of action which requires that they plead and eventually prove that their spouse had opportunity and inclination to cheat on them.

Desertion (12 or more consecutive months of no intimacy), imprisonment (18 or more months), deviant sexual conduct, habitual drunkenness, or drug addiction (12 or more months) still remain viable options as grounds for divorce. Filing under these grounds will not provide one with a financial benefit. In these cases, the client is often driven by his or her emotions to plead a cause of action.

It is the client’s personal decision as to which cause of action to assert in their complaint. New Jersey now provides litigants with a variety of grounds to obtain a divorce.

*****

Please contact me at jlawrence@lawlawfirm.com if you have questions about this post or any other family law matter.

Cohabitation & Alimony

AAML NJ Admin — Wed, 02 Oct 2019 11:57:00 GMT

By Amy Sara Cores, Esq.

On September 12, 2019, the New Jersey Appellate Division released its opinion in Landau v. Landau, ___N.J. Super. ___(App. Div. 2019). Of the many New Jersey opinions decided each year, few are actually chosen for publication as precedential. And Landau is noteworthy for a number of reasons.

First, the amount in controversy was unusual. At stake was the termination (asserted by the ex-husband) or the continuation (asserted by the ex-wife) of alimony payments of $40,000 per month or $480,000 per year. These payments had been agreed to as part of their 2014 New Jersey divorce agreement. Three years later, in 2017, alleging that his ex-wife was cohabiting with a man she had been seeing exclusively for over a year and relying on the anti-cohabitation clause in the divorce agreement, the ex-husband moved to terminate alimony.

Second, the opinion reemphasizes the continuing critical importance of Lepis v. Lepis, 83 N.J. 139 (1980), the seminal case that continues to be the bedrock of New Jersey matrimonial jurisprudence. In fact, it is no overstatement to suggest the Lepis decision, some 40 years later, remains the single most important precedent in New Jersey family law. Why? Because it authorizes (under the doctrine of “changed circumstances”) the potential for setting aside or modifying post-divorce orders or agreements for (a) alimony or (b) child support (including post-high school educational expenses, such as those for college) and or even (c) non-financial issues such as parenting time and visitation. Thus, Lepis is the conduit through which the Landau parties litigated their various cohabitation issues. It forms the foundation of the court’s analysis which begins and ends with the application of Lepis.

Third, it is clear that cohabitation, as evidenced by Landau, is such a “changed circumstance” and its most recent reported appellate example. Morevoer, this particular “changed circumstance” was deemed so crucial in New Jersey family law practice that it merited special attention in the major revisions to the New Jersey alimony statute enacted in 2014. Among the various statutory changes and revisions, the New Jersey legislature saw fit to update the definition of “cohabitation” by engrafting it in statutory form. Before then, “cohabitation” was defined and articulated through the well-known process of stare decisis and the peristalsis of the common law. Landau is thus significant because it is one of the first reported decisions expanding upon the legislative intent behind the 2014 statutory amendments.

Fourth, and on a practical level, the Landau opinion provides a road-map for navigating the risks, pitfalls, and costs of cohabitation litigation. In Landau, the ex-husband claimed his ex-wife and her alleged cohabitant traveled together, attended social activities together, posted photos and accounts on social media sites. He further contended that the man engaged in many activities with the Landau children, such as birthday dinners and others. The ex-wife countered that having a boyfriend does not necessarily equate with cohabitation and pointed out the absence of intertwined finances or shared expenses, as well as the absence of other indicia of cohabitation. The trial court ordered limited discovery, prior to a plenary hearing as to whether a prima facie case of cohabitation had been established. The ex-wife appealed these rulings and argued discovery was inappropriate, precisely because the ex-husband failed to meet his burden to establish a prima facie case of cohabitation. Therefore, the Appellate Division reversed and held that discovery was not warranted, relying on the guiding principles established in Lepis.

In the last analysis, the reversal just ordered by the New Jersey Appellate Division in Landau may result in a negotiated settlement. Or there may be further litigation, possibly by way of further appeal to the New Jersey Supreme Court. Stay tuned.

*****

Amy Sara Cores, Esq. is the Founder of Cores & Associates, LLC. She can be reached at 732-414-6669.

When Business Owners Divorce, Who Gets Paid?

AAML NJ Admin — Mon, 03 Jun 2019 12:06:00 GMT

By Amanda S. Trigg of Cohn Lifland Pearlman Herrmann & Knopf LLP and originally posted in Family Law on Monday, April 29, 2019.

If money was a person, how would you describe your relationship? Is friendly, or marked with tension and anxiety? In family law, we deal with that connection constantly, as we discuss alimony, child support, equitable distribution of assets and debts. Every family has its own method of managing assets, debts, expenses. When spouses divorce, it frequently comes to light that they had dramatically different ideas about money. Money might have caused strife, even if there was plenty to go around. Discussions about dividing assets and debts, and making appropriate arrangements for the support of the whole family, forces husbands and wives, mothers and fathers, to consider how they have acquired, spent and saved their money, and how they think they should be entitled to spend or save it in the future.

Educating each client about economic rights and responsibilities in a family law case takes time and careful attention to personal financial details. When one party owns a business, the details matter a great deal because it is not always simple to determine the value of that business, or the full economic benefit that the family unit obtained from the business income. When family wealth passes between generations, perhaps both spouses do not have the same claims to those funds when dividing marital assets.

Generally, all assets and liabilities acquired during the marriage can be divided as part of the divorce process. Important exceptions include inheritances and gifts received by one party from someone other than the spouse. Businesses owned or operated during the marriage, however, are (at least partially) joint assets regardless of which spouse is actually named as an owner or worked at the business. This frequently baffles the business owner, whether she is a professional, an entrepreneur, a franchise owner or self-employed in any capacity. We often hear an objection that the business does not have value, because "without me" it is "worthless." Business owners often produce an income tax return as proof of his/her income, usually without realizing that in Family Court we look far beyond the first-page declaration of "adjusted gross income" when the taxpayer is self-employed.

Lawyers quickly learn about each client's perspective, and each business owner's relationship with money. We use that starting point to teach the client about how the divorce court views businesses and business income.

Sometimes, the business owner correctly asserts that his/her operation lacks any value independent of personal efforts and the revenue generated by those efforts. More likely, from the perspective of the divorce court, the business operation has a value that someone else might pay to acquire, based upon the market value of that business (e.g. a franchise), the value of the future income stream (e.g. a professional services company like a law firm or medical practice) or the value of the assets held by the business (e.g. a real estate holding company). A profitable or asset-rich business probably has a value that can be calculated by a valuation expert and that value becomes another asset on the marital balance sheet. How to divide that value, or compensate the non-titled / non-owner spouse for his/her share of the value, is a topic for a future blog.

For anyone who requests, or who might have to pay, alimony or child support, we total income "from all sources". There can be a drastic but legitimate difference between the amount of a business owner's income that is taxable and the amount of total income that the court will consider for purposes of alimony and child support. For example, business owners frequently and reasonably deduct automobile, cell phone, some meals / entertainment paid through the business. To the extent that these payments defray personal costs, the value of the benefit to the business owner can be added into taxable income when calculating support payments. More technically, some perfectly acceptable tax deductions, like depreciation on assets, do not actually reduce a business owner's cash flow, and might also be added into taxable income. The complexity increases if there are questions of whether all receipts were actually reported to the taxation authorities.

Earning, spending and sharing money can be complicated. If you own your own business, and have questions about how it will be discussed in your divorce, alimony or child support case, the expert lawyers in the New Jersey Chapter of the AAML are available to talk if you are not sure about your own agreement or your own options. Find one of us near you by using the search function on this website.

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Alimony and The New Tax Law: A Whole New World

AAML NJ Admin — Tue, 26 Mar 2019 15:56:07 GMT

By: John P. Paone, Jr., Esq. and John P. Paone, III, Esq.

On January 1, 2019, new federal tax laws were ushered in, as part of the Tax Cuts & Jobs Act of 2017, which have revolutionized the financial landscape for divorcing parties. The most dramatic change is the elimination of the federal income tax deduction for individuals who pay alimony. This also means that persons receiving alimony will no longer have to declare these payments as income – thereby making the receipt of alimony tax free. It is important to note that this new change in tax law only affects alimony awards entered after December 31, 2018.

The result of alimony now being non-tax deductible is that ultimately more tax dollars are being clawed back by the federal government. This is because the spouse who pays alimony will not be able to claim alimony as a tax deduction and will likely pay taxes in a higher income tax bracket compared to the spouse who receives alimony. The net result of this is that there will be less available after tax dollars between the households in order to meet financial obligations such as alimony, child support, and college.

So what does the elimination of the alimony tax deduction mean for divorced parties in actual dollars? The following example will demonstrate the impact of the change in the tax law: Under the old tax laws, a spouse who was required to pay alimony in the amount of $1,000.00 per month and was in the 35% tax bracket in effect only paid $650.00 per month after taxes ($1,000.00 - $350.00 tax deduction = $650.00 net payment). The spouse who was the recipient of the alimony and was in a 20% tax bracket would only owe $200.00 per month in taxes leaving the recipient of alimony with $800.00 in net dollars ($1,000.00 alimony - $200.00 tax = $800.00 net payment). Therefore, through the benefit of an alimony tax deduction, the payor paid $650.00 in net tax dollars while the recipient received $800.00 in net tax dollars. The difference of $150.00 was effectively subsidized by the federal government. The loss of this “divorce subsidy” will inescapably mean that alimony payors will pay more and alimony recipients will receive less in future alimony awards.

Although alimony payors will no longer be able to deduct their payment of alimony on their federal income tax returns, they will still be able to claim alimony as a deduction for state income tax purposes in New Jersey. Similarly, spouses who receive alimony will still be required to report alimony as income on their New Jersey State Gross Income Tax Returns. This is because New Jersey law continues to provide for the deductibility (and therefore taxability) of alimony payments. It remains to be seen, however, whether over time New Jersey will adopt the provisions regarding alimony that have been enacted under the Tax Cuts & Jobs Act of 2017, to make the tax treatment of alimony in New Jersey consistent with federal law.

Divorcing spouses should also understand that while there may be less money for support between the households, there remains no exact formula or percentage for how an alimony obligation is calculated. Family courts are required to review the statutory criteria which references 14 factors that must be considered in rendering an alimony award. Among these factors (such as actual need and the ability of the parties to pay) includes “the tax treatment and consequences to both parties of any alimony award.” Therefore, even in the new world of non-tax-deductible alimony, the court must continue to examine what each party will be left with in after-tax dollars in order to calculate a proper award of alimony.

It is imperative that spouses going through a divorce who will either be paying or receiving alimony be aware of the new federal tax law and inevitably, the impact it will have on their case. If you are going through a divorce, you should confer with an experienced family law practitioner regarding the new tax change.

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John P. Paone, Jr., Esq. and John P. Paone, III, Esq. are divorce and family law attorneys with the Law Offices of Paone, Zaleski & Murphy, with offices in Red Bank and Woodbridge.

Who has the right to keep fluffy after the divorce?

AAML NJ Admin — Mon, 04 Feb 2019 19:16:05 GMT

By John P. Paone, Jr., Esq. and Victoria E. Paone, Esq.

Americans have a love affair with pets. According to a recent survey, “three-fourths of Americans in their 30s have dogs, while 51 percent have cats.” It is not uncommon for people to spend thousands of dollars per year on pet clothing/accessories, food, photographs, medicine and the like. But what happens to “Fluffy” when parties go through a divorce?

Under the common law, pets were treated as chattel-put another way-just a typical piece of property to be distributed like an automobile or a piano. In today’s world, however, there is a growing consensus that pets are more like family members and less like property. New Jersey courts have mirrored this sentiment and the leading case on this issue demonstrates that disputes over animals during divorce litigation can no longer be resolved by using basic property principles. In a case decided by the New Jersey Appellate Division, the court held that reimbursing a party for a dog's monetary value (i.e. what you paid for the animal) is not an adequate remedy for purposes of compensating a party for the loss of the “special value” that some pets hold to their owners. That’s right, the court decided that money cannot resolve all problems even in the context of divorce litigation!

This case further stands for the proposition that courts can and should determine which party has a “sincere” interest in possession of the pet and which party is merely asserting an interest in the pet “out of greed, ill-will or other sentiment or motive similarly unworthy of protection in a court of equity.” In determining whether a party or whether both parties have a true and equal interest in their pets, the court directs that focus should be placed on establishing “the facts and circumstances which endow the chattel with special…value.”

Most commonly, the court will consider testimony and other proofs from parties demonstrating which party acts as the primary caretaker of the pet. Meaning, the court can contemplate who “potty trained” the animal, takes the animal to medical and grooming appointments, feeds and bathes the animal, etc. In addition, the court can consider whether a party had possession of the animal prior to the marriage. Furthermore, the court can examine where the children of the marriage primarily reside and deem whether it is in their “best interest” to enjoy the animal’s companionship at their primary place of residence.

Less compelling factors that a court might also consider when determining possession of a pet is the party who is the title owner of the animal and if a certain party made the preliminary investigations or took the initial steps to acquire the pet. At this time in New Jersey, the test is not what is in the “best interest” of the pet. However, that may soon change based upon experiences in other jurisdictions.

On September 27, 2018, the Governor of California, Jerry Brown, signed into law Assembly Bill 2274 which provides for the courts to “assign sole or joint ownership of a pet animal taking into consideration the care of the pet animal” in the context of a divorce case. Considering the “care” of a pet is akin to considering the “best interest” of a child when determining custody. Assemblyman Bill Quirk, who introduced the law, said “it’s time family pets received the status they deserve — family members.” This law takes effect January 1, 2019.

It remains to be seen how New Jersey law will develop over the next few years regarding this very important issue of pet custody in divorce cases. Although the interpretation of pets as more than basic “chattel” is a fairly recent development in the law, it would not be surprising should New Jersey go the way of California and adopt a standard akin to that used for deciding child custody. In the interim, pet owners who are about to go through a divorce should consult with an attorney about how to pursue legal rights and remedies regarding custody and possession of Fluffy in a matrimonial action.

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John P. Paone, Jr., Esq. and Victoria E. Paone, Esq. are divorce and family law attorneys with the Law Offices of Paone, Zaleski & Murray, with offices in Red Bank and Woodbridge.