Robinson ♦ Thatcher, LLP

Posts Tagged ‘Divorce’

If laughter is the best medicine, we hope to get you through your divorce healthier than when you started.

This morning on CBS’s The Early Show, they had a wonderful piece on Co-parenting after a divorce.  Since I started my practice, I have maintained the philosophy that although it is sometimes healthier for a couple to no longer be married, when there are children involved, you are going to be a family forever.

This morning’s piece provided some good information and examples of successful co-parenting.  Dr. Jennifer Hartstei spoke about some of the key things to remember in co-parenting.  The Early Show also included a segment showing an example of a successful co-parenting (but separate family).  The Thomas’ have a website for parents who want to try co-parenting, co-parenting101.org.

Going through a divorce is traumatic for all parties involved.  Shouldn’t we do everything possible to minimize the harm it does to our children?

If you are going through a divorce and want to minimize the traumatic impact on your children, Laura L. Thatcher of Robinson – Thatcher, LLP can help you create parenting plans that work for you and your family.

Wishing you peace.

This morning, I saw a news report about a company that offers divorce insurance. I did a double take. Divorce insurance? What is that?

The company that offers the divorce insurance is called Wedlock. WedLock is offered by SafeGuard Guaranty Corporation, a company created by John Logan. The insurance startup based in Kernersville, NC and underwritten by Prime Insurance Company, a surplus lines insurer based in Salt Lake City, Utah.

Cost and Benefits of Divorce Insurance

Insurance plans start at approximately $16 per month “unit” of coverage, which equals $1,250 in benefits. You can buy additional units at the same price — and keep going right up to 200 units, or $250,000 of coverage. As long as you continue paying the premiums, the company adds $250 of coverage every year per unit. The kicker is that there is a five year waiting period before benefits are available (for an extra premium the waiting period can be reduced to three years).

The policy is designed to cover the costs of divorce, including attorney fees, moving expenses, new digs, child support and alimony. However, it does not appear that there are any restrictions on how the benefits must be spent. It should be noted that if a couple pays for the insurance with community property funds, any benefits payable would also be community property.

I frequently advise my clients regarding the necessity of having all types of insurance, liability insurance, life insurance, earthquake insurance, and professional malpractice insurance. Did you know you can even get insurance for your wedding reception?  However, I’m not sure divorce insurance is something I would recommend.

The average cost of divorce in Southern California is approximately $70,000. Add that to the fact that nearly half of all marriages end in divorce, insuring against this risk does not seem like a bad idea.  That said, I just can’t think of a good way to start the conversation to purchase this insurance. It seems to me that purchasing divorce insurance may ensure you do get a divorce.

A Better Alternative

I think a better approach would be to have a prenuptial agreement.  If you are already married, rather than purchasing insurance, invest in a postnuptial agreement.  In previous posts, I have discussed my views on these agreements. In my opinion, both pre- and post-nuptial agreements can actually strengthen a marriage.  When done correctly, the process of preparing one of these agreements reinforces the intimacy and responsibilities that are essential for a healthy marriage (or will streamline the divorce process).

If you are contemplating getting married and need a prenuptial agreement, or if you wish that you had one, please contact Laura L. Thatcher at Robinson-Thatcher, LLP.

Wishing you peace.

One of the funniest stand up comedy performances that I have ever seen was Eddie Murphy’s Raw. I will never forget the sketch about community property and divorce in California. I can still hear Eddie Murphy’s voice in my head, saying “Eddieee, I want half!”

Unfortunately, the reality of divorce is simply not funny.

Married Couples who live in California are subject to California’s community property laws. Simply put: all income or property acquired while the couple lives together during the marriage is owned equally by both spouses. There are some exceptions to this, including property acquired before marriage, income from separately owned property or property that is inherited or a gift.

Upon divorce, the value of community property assets must be equally divided. This division includes not only assets but debts as well. So, if one spouse accumulates a large amount of debt during the marriage, the other spouse is equally liable for that debt. This sometimes comes as a great shock to the other spouse.

California’s community property laws can be easily avoided. Before marriage, a couple can enter into a prenuptial agreement which states the couples intention regarding property rights, or if issues arise during marriage, the couple can enter into a postnuptial agreement.

Property issues are frequently complex and it is often helpful, or necessary to talk to a lawyer about these issues. If you have questions, please contact Laura L. Thatcher at Robinson-Thatcher, LLP.

Wishing you peace.