You Get What You Pay For With Divorce Lawyers

Over the past several years, we here at the Law Blogger have noted several catchy marketing schemes involving divorce lawyers, especially from New York.  These schemes involve a bait and switch by promising a quick result for cheap, or just offering a divorce for an impossibly low fee.

Key word: impossible; at least in most cases. 

The first campaign we noted was touted in Manhattan as the "one-hour-divorce" for about $500.  For the low fee, clients meet with a paralegal and lawyer at the NYC firm to provide their personal information.  The details of their settlement are also, briefly, discussed.

The clients are next provided a ten dollar gift certificate to either McDonald's or Starbucks to burn-up the last hour of their ill-fated marriage while the law office prepares the canned document package for a "one-size-fits-all" divorce.

You cannot have issues, however, or it will cost you extra. The basic premise is that the divorce has to be absolutely 100% "pro confesso" (i.e. uncontested). Basic input is collected from the client and a set of pleadings are prepared within the alotted hour. A standard judgment is generated and executed for entry and filing with the court at the appropriate time, usually six months.

Hopefully nothing changes during the statutory wait period, or all bets are off. Also, under general rules of legal ethics, the firm could not represent both parties to the divorce; but they've apparently figured out which one is their "client".

If the divorcing couple has children, property, or needs support, these issues can be handled in an hour; but will cost more than double. A Prenuptial agreement would all but disqualify the client from the discount program, although a "conventional" divorce would still be available.

Not to be outdone, there is a storefront in Brooklyn that has a sign advertising divorce for $399.  It turns out that this storefront is not a law firm, but rather the office of a paralegal that merely acts as a scrivener for the divorce forms required by New York state laws. 

For the stated fee, the paralegals will assist you in the completion and filing of the forms which are then filed with the court.  Then, it's "up to the judge".  Translation: you are on your own.

This advertised fee is also a classic bait and switch.  Not only are there extra fees for just about everything, you also need to pay filing costs and court fees. 

Apparently, the idea behind the sign is to get you in the door for the advertised low fee.  Once inside, then you learn that you, like 99% of the rest of the population, do not qualify for the low fee, but for a few hundred more bucks, they will take care of you.

It is "buyer beware" for these outfits for sure.

Here in Oakland County, we here at the Law Blogger and at Clarkston Legal, believe that the most important asset of any divorce lawyer is their reputation.  If the attorney is experienced and gets good results, it will be reflected in their fees.

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Posted in: Brooklyn,child custody,divorce,divorce lawyer,legal fees,marital estate,New York City,Oakland County

Preparing for a Second Marriage

Many factors affect whether a second marriage will last: the relative age and incomes of the partners, whether either party has children, cohabitation prior to the second nuptials, and the education level of the parties.

And, of course, how could we forget the personality of the ex-spouse; perhaps the most important factor of all.

According to statistics published by the National Institute of Health, approximately 15% of second marriages end within 3-years; and 23% end within 5-years.  Overall, however, the divorce rate for second marriages has drawn even with that of first marriages; about 40%.  Also, in its 2009 report Marital Events of Americans, the Census Bureau claims first marriages last, on average, about as long as second marriages: about 8-years.

Here are some things to think about, and some steps to consider, before tying the knot for the second time.

Prenuptial Agreement.
For those with assets, this document is a must.  To be enforceable, the prenuptial agreement largely depends on two things: a) full disclosure by both parties of all their respective assets; and b) legal representation of each party by separate lawyers.  If your partner does not want to sign such an agreement, then you should seriously consider cohabitation rather than marriage.  This is a harbinger of trouble in the event of a split.

Couples with only modest estates going into second marriages generally do not need the complication of a prenuptial agreement.  If a marital estate grows during the second marriage, that estate will be subject to an equitable property division in the event of divorce.

Solid Estate Planning.
Prior to a second marriage, assets may be transferred into a trust for the benefit of the owner's children.  Also, retirement asset rollovers (from a 401(k) plan into an IRA, for example) can operate to protect the new spouse with survivor benefits, or not, as the case may be.

A Qualified Terminable Interest Property trust (QTIP) typically provides for interest income going to a surviving (second) spouse, with the principle going to the settlor's children from her first marriage upon the death of the second spouse.

Children from a prior marriage can also be provided for using an Irrevocable Life Insurance Trust.  This way, the new spouse can be designated as the beneficiary on the person's retirement assets and the children are designated beneficiaries of the death benefit from the life insurance policy.

Another common practice is to create a separate trust to provide for the distribution of separate property to the children from the first marriages and to create a joint trust to provide for the distribution of the marital estate of the second marriage.

Good Premarital Counseling.
One of the best things a couple can do prior to tying the second knot is to participate in joint counseling.  This should include religious counseling or premarital couples therapy, financial advice, and (separate) legal consultation.  Once separate legal counsel is received, the couple can certainly compare notes in order to get on the same page.

Going into a second marriage with your eyes open improves the chances of a successful nuptials.  When selecting an attorney to assist you with the necessary planning, find one that truly listens to your expressed wishes and pays close attention to the characteristics of your estate.

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Posted in: divorce,estate planning,family law lawyer,marital estate,marital property,second marriage,trust

Proposed Divorce Legislation Distinguishes Marital From Separate Property

Two new bills pending in the Michigan legislature attempt to address a long-perceived problem in Michigan family law: how to classify property [separate or marital] in a divorce proceeding.  This legislative proposal has judges and divorce attorneys up in arms.

The tie-barred bills, 4672 and 4673, introduced by Livonia Republican John Walsh, propose standards for the division of marital property, and comingled marital and separate property; create a presumption of non-division for separate property; and revises the procedures by which a family court could "invade" one spouse's separate property and award it to the other spouse.

In Michigan, a family court judge's power to apportion property in a divorce comes strictly from statutes; a confusing patchwork of four separate statutes, to be precise.  Because of this legislative patchwork, a significant body of common law has developed over the past 30-years addressing the classification and division of property.

Although every divorce case is decided on its own merit, the present state of divorce law allows the distinct possibility, if sufficent and compelling factors are proven, for the invasion of separate property.  The new legislation is largely viewed as making such an invasion more difficult, if not impossible.

Birmingham divorce attorney James P. Cunningham summarized the problem in a 2008 Michigan Bar Journal article, calling for legislation to "fill the gap" between the cases.  Cunningham was on the floor of the house in Lansing last week to testify as an expert about the need for this legislation and, presumably, to endorse the content of Walsh's bills.

So why such a fuss from the family court bench and bar?  First, they contend that Walsh is fast-tracking the legislation without input from their professional organizations.  Second, these groups also assert the proposed measures are grossly unfair to the non-propertied spouse.

When cornered by a reporter at the Capitol last week, a lobbist for the bills denied they were being fast-tracked but wryly noted that the family court bar was a veritable "graveyard" for good ideas.

Is this going to be a case of the rich getting richer?  The so-called "missionaries for the family" certainly think so and are determined to quash the measures; you should have seen the chatter about these bills appearing on the State Bar of Michigan's Family Law listserve...

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Posted in: Attorny James P. Cunningham,divorce,family court,family law,family law lawyer,marital estate,marital property,Representative John Walsh,separate property,State Bar of Michigan

The "60-Minute" Divorce for Under $500

A new version of a "New York minute", or just another sign of the times? A law firm in New York City is offering clients divorce in under an hour, and for less than $500, not including filing fees, courier expenses, and other fine print.

For the low fee, clients meet with a paralegal and lawyer at the NYC firm to provide their personal information.  The details of their settlement are also, briefly, discussed.

The clients are next provided a ten dollar gift certificate to either McDonald's or Starbucks to burn-up the last hour of their ill-fated marriage while the law office prepares the canned document package for a "one-size-fits-all" divorce.

You cannot have issues, however, or it will cost you extra. The basic premise is that the divorce has to be absolutely 100% "pro confesso" (i.e. uncontested). Basic input is collected from the client and a set of pleadings are prepared within the alotted hour. A judgment is generated and executed for entry and filing with the court at the appropriate time, usually six months.

Hopefully nothing changes during the statutory wait period, or all bets are off. Also, under general rules of legal ethics, the firm could not represent both parties to the divorce; but they've apparently figured out which one is their "client".

If the divorcing couple has children, property, or needs support, these issues can be handled in an hour; but will cost more than double. A Prenuptial agreement would all but disqualify the client from the discount program, although a "conventional" divorce would still be available.

Perhaps the firm is onto something; anyone facing the stress and uncertainty of divorce will appreciate speed of service combined with an affordable price package.  The potential for a conflict of interest, however, is troubling.  Also, when something this important is done this fast, regrets are par for the course, and in some cases, missteps will be taken by either the client or the firm from Gotham.

If you are facing the stress and uncertainty of divorce, our law firm provides excellent service for reasonable fees.  We would be happy to provide a free legal consultation.

www.clarkstonlegal.com

info@clarkstonlegal.com

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Posted in: child support arrearage,divorce,family law,marital estate,New York City,pro confesso,uncontested