Mattingly Cavagnaro LLP Mattingly Cavagnaro LLP 2025-03-31T13:00:54Z https://www.matcavlaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1204038/2021/05/cropped-favicon-32x32.png On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Issues unique to a high net worth divorce in New York]]> https://www.matcavlaw.com/?p=47272 2021-02-12T07:58:41Z 2021-02-17T07:57:41Z Hidden accounts Wealthier people tend to have a vast portfolio. As such, it is common for a multitude of accounts to exist. At the onset of a divorce, couples must disclose all financial accounts. However, one spouse may try to hide accounts from the other. Financial infidelity occurs when one spouse takes marital money and hides it for individual use. These hidden accounts will turn up eventually, and when they do, it may spell trouble for the sneaky spouse.

Splitting retirement

A high earning couple typically has an excess of funds tied up in retirement accounts. If the divorce occurs before the couple nears retirement age, splitting this money may prove costly. If possible, a couple may want to consider buying one or the other out of the retirement account with property or cash. This will stop either the tax implication of opening the retirement money too soon or payments towards court fees and costs of laying the legal groundwork for splitting it later. Under New York laws, the court distributes assets and debts equitably between a divorcing couple. This means one spouse may wind up with more cash and debt than the other. Having an idea of some of the issues at stake in a divorce may help a couple decide to negotiate and compromise, rather than leaving their futures up to a judge to decide.]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Collaboration, mediation: taking control of a post-divorce life]]> https://www.matcavlaw.com/?p=47264 2021-02-01T18:40:56Z 2020-11-04T17:15:46Z Divorce litigation is fundamentally adversarial, pitting one spouse against the other in a process that leaves the outcome to state law and the court's discretion. In addition to creating emotional and financial anxiety for both ex-partners, contentious court disputes often end in a resolution that neither party finds acceptable. When a divorce involves children or complex financial issues, an undesirable judgment may lead to consequences that last a lifetime.  Mediated and collaborative divorce are two forms of alternative dispute resolution that may be preferable for spouses who can agree to negotiate rather than litigate their separation. 

What is the difference between mediation and collaboration?

In both mediated and collaborative divorce, both parties must agree to work together constructively to resolve issues and agree not to pursue litigation.  Mediation involves couples meeting with a third-party advisor trained to help separating spouses settle issues ranging from property division and alimony to custody and visitation arrangements.  Under a collaborative approach, each spouse retains their own attorney, and both attorneys and both spouses agree to work together to negotiate a settlement outside of court. 

What are the advantages of a mediated or collaborative divorce?

These alternatives are not right for every divorce. However, when separating partners agree to negotiate reasonably, both collaboration and mediation may offer many benefits.  As opposed to the often steep costs, unforgiving deadlines, publicity and uncertain judgments involved in litigation, negotiation may allow parties to develop creative solutions on their own schedule and on their own terms. ]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Why 61% of divorced women wish they hired financial advisors]]> https://www.matcavlaw.com/?p=47263 2022-03-10T03:01:50Z 2020-08-05T12:45:37Z enlisted a financial advisor's help. However, 61% of them now wish that they had not only known about financial advisors but hired one.

Why women wish they had hired advisors

Many women working through the end of marriage want to set themselves up to achieve specific financial goals after embarking on life on their own. You may, like 66% of divorced women, want to take steps to eliminate debt. Another 41% of divorced women note that saving for retirement is a main financial goal, while 19% want to build wealth through investing and another 27% wish to buy a new home.

How financial advisors help

Financial advisors may help you position yourself in a manner where achieving these goals is possible. This might include seeking spousal maintenance and finding money to put away for retirement. Ultimately, the goal of the financial advisor is to help you maximize your future finances, and this is why many women who never hire one regret not doing so after the fact.]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Considerations for small business owners during divorce]]> https://www.matcavlaw.com/?p=47238 2022-03-16T08:48:08Z 2020-06-01T16:00:04Z Marriage is the union of two lives. If you are a business owner, marriage can also be the union of two owners.  When times are good, this may not be a concern; however, life can easily change. Divorce is common. Marriages often end due to spousal disagreements, especially those in financial nature.  If you own a business and you are considering divorce, it is a good time to think about how you want to move forward. Premarital solutions such as prenuptial agreements can alleviate some of the legwork needed in a divorce, but there are still options if you do not have one in place.  Weighing factors  If you are divorcing without a prenuptial agreement, a postnuptial agreement may be a solution.  Before you decide what to do, it can be helpful to gather a list of considerations. Any divorce can be difficult, but there are more complexities involved when a couple shares a business. Money is important. Keep track of where it comes from, who spends what and when you pay expenses.  Here are some questions to consider: 
  • What kind of industry is your business in? 
  • What does the formal legal structure look like?
  • What is your role in the company? 
  • What is your spouse's role in the company? 
  • When were your assets acquired: before or after opening the business? 
  • Do you have children? 
Weighing options  After taking a closer look at your business and how it fits in with your life, you can then ask yourself where you want to go next. Do you see yourself owning the business without your spouse? Could you work together as co-owners after the divorce? What matters most to you?  Business owners facing divorce typically have three options: 
  • One spouse can buy out the other to take on sole ownership of the business 
  • Spouses can agree to sell the business  
  • Spouses can remain co-owners after the divorce 
Which of these options seems most realistic for you? Divorce brings great changes, and a business is a substantial investment. Taking time to think can pay off. ]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[What happens to intellectual property during a divorce?]]> https://www.matcavlaw.com/?p=47208 2021-02-01T18:44:48Z 2020-04-29T19:00:06Z From photographs to letters, virtually everyone creates some type of intellectual property during a marriage. While some mementos are purely sentimental, other works may have significant financial value on the open market. If you are a scientist, artist, inventor or writer, you likely have a keen interest in what happens to your intellectual property during a divorce.  In New York, judges divide marital wealth according to what is equitable. While this approach does not necessarily give you exactly half of the marital estate, it should leave you with a fair share. Still, when it comes to dividing intellectual property, you may have some obstacles to overcome.  The valuation problem   Intellectual property can be incredibly difficult to value. For example, you may have a patent for a device that has not gone into production. Alternatively, you may have written a novel with future royalty potential. Either way, you may need some professional assistance when determining the worth of your intellectual property.  Marital vs. separate property  Before you think about dividing the intellectual property you own, you must determine if it is marital or separate property. With some exceptions, marital property is the property you acquired during the marriage. Therefore, if you created your work during your marriage, it is likely part of the marital estate.  A division strategy  Dividing intellectual property that is part of the marital estate is not an exact science. Because they must be equitable, judges are likely to consider the contributions each spouse made to the creation of the intellectual property. Furthermore, judges may weigh whether post-divorce action is necessary for the intellectual property to generate income. If so, the contributing spouse may receive a larger share.  Both you and your soon-to-be ex-spouse likely have a financial interest in your intellectual property. Therefore, it is a matter you must address during your divorce. By understanding the ins and outs of property division, you can better advocate for your fair share. ]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Property division in New York divorce]]> https://www.matcavlaw.com/?p=46985 2022-03-16T08:47:19Z 2020-04-27T19:36:35Z Whether you married your spouse decades ago and amassed significant property together or you each entered the marriage with assets, divorce brings serious property division concerns. New York follows the equitable division standard, so divorcing couples must split marital debts and assets fairly.  When you cannot reach an agreement on property division, the court will decide during your divorce proceedings.  Separate vs. marital property  When the judge determines property division, the court requires a full accounting of marital and separate property. In general, an asset earned or acquired by either spouse during the marriage constitutes marital property. Assets that either spouse owned before the marriage fall into the category of separate property. If only one spouse receives a personal injury settlement, gift or inheritance during the marriage, those funds are also separate property. However, when separate property increases in value during the marriage, such as with real estate, the law categorizes the appreciation amount as marital property.  Factors in property division  New York courts establish an equitable division of marital property by considering these factors: 
  • How long the marriage lasted 
  • Each spouse's individual financial circumstances and earning potential 
  • Each spouse's individual debts, benefits and separate property 
  • The age of each spouse 
  • Each person's health status 
  • Each spouse's monetary contributions to the marriage as well as non-monetary contributions such as raising children and keeping the home 
  • The tax consequences of property division decisions 
While New York does not recognize fault in a divorce, if one spouse wasted marital assets on gambling, substance use or extramarital affairs, the court may award the other spouse additional property to compensate.  Some types of assets, such as real estate equity and business ownership, can be difficult to divide compared to liquid assets like cash. In this situation, the judge may order temporary or permanent spousal support or a one-time cash payment to balance assets such as stock or a business that the other spouse receives. ]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Protect your business during your divorce]]> https://www.matcavlaw.com/?p=46980 2022-03-16T08:47:03Z 2020-01-30T22:15:07Z When one spouse owns a business, the other spouse may contribute in many ways. They may be an active supporter behind the scenes.  A divorce that tears your marriage apart threatens your business, too. Plan before your personal life falls apart to preserve your business investment.  A contract makes your divorce easier  One of the keys to a successful business is protecting your investment by planning. You can achieve this through a prenuptial or postnuptial agreement.  The agreement can establish that your business is your separate property. You can make it exempt from marital property and division during your divorce.  You may agree that your spouse has rights to business assets. If so, the agreement can determine how to appraise the value of the business. The agreement also can set a percentage of business assets that your spouse receives. This approach avoids a costly valuation process and haggling in court.  The agreement also can spell out any other conditions. If you and your spouse were business partners, it could establish who has the right to buy out the other spouse.  Keep thorough records of your business  If you and your spouse do not have an agreement, you can still document yourself as the sole owner. This can make the business exempt from transfer during your divorce.  Records should detail all financial matters that may come up in divorce proceedings. Identify whether premarital or marital funds were part of your business capital. Keep business and personal accounts separate while also recording all cash transactions.  Pay fair salaries to both yourself and your spouse. Paying yourself too much or your spouse too little looks bad for you.  Make a good business deal  A good business person does not wait for a crisis to happen. She or he expects problems and prepares for them.  The best business deals benefit both sides. While it sounds cold, take the same approach when preparing for a possible divorce. ]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Calculating maintenance payments in New York]]> https://www.matcavlaw.com/?p=46963 2021-02-01T18:50:09Z 2019-11-20T15:30:09Z Aside from dividing any marital property or assets, another financial consideration that many couples face is the subject of maintenance or spousal support. Spousal support, which dictates an amount of money one spouse must pay to the other during the marriage, can sometimes continue after divorce as maintenance.  Formerly known as alimony, these maintenance payments are a temporary measure to ensure that each party in the divorce has the financial support needed during the transition to living separately. Especially if one spouse had been primarily contributing to the marriage by taking care of the home or children rather than through a traditional job in the workforce, the court might determine that spousal support maintenance is necessary.  What is the difference between maintenance and child support?  Unlike child support, which is a legal obligation for both parents to financially support their children until those children turn 18, maintenance payments may have a shorter time frame. Additionally, child support payment calculations will take into account the custody arrangement. In contrast, the court calculates maintenance primarily based on the financial situation of each party in the divorce.  Depending on the financial arrangements, assets, health and earning capacity of each spouse, the court may determine that one party should pay the other maintenance payments or that neither spouse must pay.  What documents do New York Courts use to determine the spouses' financial situations?  The judge or Support Magistrate presiding over a divorce hearing will use the following documents to measure the financial situation of each spouse:  Even if there was previously spousal support during the course of the marriage, maintenance payments will not automatically continue unless the judgment of divorce specifically notes that the payments must continue after the finalization of the divorce. ]]> On Behalf of Mattingly Cavagnaro, LLP <![CDATA[Two ways to protect your trust fund in a divorce]]> https://www.matcavlaw.com/?p=46921 2022-03-10T03:03:15Z 2019-10-18T14:00:26Z divide your marital property evenly and fairly. This might mean that one of you gets more assets than the other, but the value is key. However, some personal property is exempt from the property division in the divorce. This separate property is whatever you and you alone own. Your trust fund may fall into that category, but you need to plan ahead if you want to save it from your divorce. Here is a look at two ways Forbes says that you can protect your trust fund.
  1. Do not comingle
You should keep your trust fund money completely separate from your household money. Do not use it to help buy your home, pay for the electric bill or to do anything else associated with managing and upkeeping your marriage and home. You need to also avoid using any money from your trust fund to make joint purchases.
  1. Set the right terms
Make sure that before you marry your trust fund terms include wording that states this is money only for you and that it is not to become part of marital property should you marry. You need to make sure that it also is set up to not be used to figure alimony since you could end up having to pay your ex-spouse, which can eat up your trust fund. Losing your trust fund in your divorce can be devastating. You want to avoid it at all costs, so make sure that you plan far ahead just in case your marriage ever comes to an end.]]>