Owning a home remains the American Dream.

And for many singles to achieve it, they are buying with another person who is not their spouse.

From a legal standpoint, this requires some extra legal preparation.

Frank conversation about mutual expectations, finances and debt and credit.

Reducing the terms of the arrangement to a written contract.

Some points to be covered:

1. Do the co-owners have identical interests, equal interests, or unequal interests?
2. What happens to the co-owner’s interest if that co-owner dies?
3. What happens if one co-owner wants to sell that co-owner’s interest?
4. What happens if the co-owners have a fight and cannot bear to occupy the house together anymore?
5. How are the co-owners’ respective interests valued?
6. What if one co-owner’s debts result in a lien on the property?
7. How will the mortgage be paid?
8. How will mandatory expenses of the property be paid (real estate taxes, probably homeowner’s insurance)?
9. How will (semi)optional expenses of the property be paid (repairs, improvements)?
10. How will a co-owner’s share of expenses be paid in the event of that co-owner’s death?
11. Should each co-owner be required to maintain life insurance for the benfit of the other co-owner?

A little advance consideration and planning is crucial to a successful real estate joint venture outside marriage.

Read more in this MS NBC article: Pros and cons of buying a house with friends.

New clients often come in spewing legal terms that are thoroughly out of favor with modern courts.

A handy little article concisely explains modern child custody terms and concepts in a way that is not specific to any particular state.

The terms explained are listed below, with a Florida-specific twist:

• Legal Custody or Decisionmaking Authority
• Sole Custody or Decisionmaking Authority
• Physical Custody or Residential Custody
• Joint Custody
• Joint Legal Custody or Shared Parenting Responsibility
• Joint Physical Custody or Rotating Custody or Equal Timesharing

Read more in this Mississippi Clarion Ledger article: A look at different custody arrangements.

This article is recommended reading for anyone involved in a child custody case.

For those struggling financially through divorce, it may console them to know that millionaires may not be any happier in their marriages – or divorces.

About half of wealthy people describe themselves as unhappy in their marriages, and just as many admit to cheating on their spouses in the last three years. (Interestingly, more women than men owned up to affairs.)

Somewhat ironically, the excuse cited for unfaithfulness was desire for variety.

Although half of the affluent were unhappy in their marriages, just thirty percent were considering divorce…

Primarily because divorce is expensive in more ways than one – and could adversely affect a spouse’s business standing and dealings.

But despite the greater aversion of the well-off to divorce, they do tend to plan ahead and prepare.

More than half of wealthy women take steps to assure a private nest egg to see them through, and about one-third of comfortable men do the same. And the greater the couple’s wealth, the greater the likelihood that one or both spouses had tucked something away for that rainy day.

Surprisingly, relatively few rich people had prenuptial agreements. Only 6% of millionaires and only 11% of multi-millionaires with $10 million or more.

Just as surprisingly, postnuptial agreements (property settlement agreements made during marriage) were slightly more common among millionaires generally, but with the highest concentration among multi-millionaires with $10 million or more.

Read more in this Forbes piece: The Wealthy – The Rich And Unfaithful.

It may not last, but collaborative divorce is slowly gaining traction. But it’s certainly not appropriate for many types of people and cases.

It is actually questionable whether collaborative divorce is less expensive than traditional divorce, but it is generally more harmonious.

But it has its critics.

The Colorado Bar Association has, in effect, banned collaborative divorce in Colorado, characterizing it as unethical. Why?

Because “every attorney has an obligation to fight for a client’s interests” and, under collaborative divorce, an attorney is required to drop out of the case if it can’t be settled. Reaching settlement sometimes requires one party to accept an unfair deal.

Other critics point out that the friendlier-divorce model may facilitate fraud and deception by a spouse, since there is no judge to referee and impose order.

Of course, in the end, it’s really about the priorities of the parties in the case at hand. For some clients, peace and harmony are more important than pursuing everything they are entitled to financially.

Read more in this Washington Times article: Rise of collaborative divorce is not for everyone.

Property division in divorce is called equitable distribution in North Carolina, Florida and other states.

From North Carolina comes an article explaining equitable distribution under North Carolina law. Perhaps surprisingly, most of the explanation applies equally well to Florida.

Steps:

1. Identification or classification as marital or nonmarital – were nonmarital assets mixed up with marital assets?
2. Valuation at fair market value – may require nonlawyer accounting/appraisal experts
3. Distribution – presumed to be equal unless the presumption is overcome as inequitable under the circumstances of the case

Fault is largely out of the picture – unless there is economic wrongdoing by a spouse.

Property settlement agreements are generally forever, except in unusual circumstances. So now is the time to speak, not after the divorce.

Read more in this Winston-Salem Journal article: Be wary: Dividing property in a divorce can be easy, or a minefield.

Fifty-five children of American / Indian unions have gone missing in India.

That is why the US is asking India to join the many other countries tht have joined the Hauge Convention on the Civil Aspects of International Child Abduction.

If India did sign on, it would expedite case resolutions and tend to “assign” cases to the proper jurisdiction. It would also make India a less attractive haven for kidnappers.

Read more in this The Times of India article: US wants India to sign treaty on child abduction.

One issue that probably won’t come up during a divorce of non-senior citizens is social security retirement benefits.

But it is something that dependent ex-spouses should consider after both ex-spouses have reached 62 years of age, provided the marriage lasted at least 10 years and the dependent spouse is not married to someone else.

Once the dependent spouse applies for benefits, the Social Security Administration will determine whether the applying spouse’s own work record or an ex-spouse’s record will provided greater benefits, and should pay the highest benefit available to the applicant.

Read more in this Providence Journal MoneyLine column: Social Security survives divorce and at the Social Security Administration’s website.

Divorce is expensive.

Two households now have to be supported, often on the same income that previously supported one.

Many child-related expenses have to be duplicated in both households.

There are numerous special expenses incidental to a separation.

Lawyers have to be paid for the legal proceedings.

Sometimes accountants and a host of other experts in the legal proceedings have to be paid.

And on and on.

One, if not both spouses often find it tough to keep up.

So Japan has innovated a solution – or at least an aid.

The Divorce Loan.

A relatively low-interest special-purpose loan to divorcing parties.

This sounds like a great idea that would catch on here in the States, if given a chance.

Especially if the underwriting criteria are flexible enought to accommodate the current circumstances of dependent spouses and needy parents.

Read more in this Reuters UK article: From heart-broken to broke? Japan divorce loan helps.

One occupational hazard attorneys face is not-quite-ranting calls from (or appointments with) people who believe, rightly or wrongly, that they – or, worse, their kids – have been unfairly “beaten up” by the legal system, when they were represented by another attorney – or no attorney.

Those folks often have a lot in common with this Tennessee mother.

A Tennesee judge awarded custody of her child to the child’s father. After Tennessee’s Department of Children’s Service had allegedly already made a finding of abuse by the father.

But the story doesn’t end there.

The mother appealed the custody award.

And won. An appellate court reversed the trial judge’s ruling, and remanded to the trial court.

Only, reportedly, the trial judge obstinately refused to alter its custody award in accordance with the appellate court’s ruling. Just plain refused.

Forcing the mother to spend gazillion more dollars to compel the implementation of the appellate court’s ruling.

This Tennessee judge was ultimately publicly reprimanded, according to the article below.

But it wouldn’t be surprising if this mother had to do some almost-ranting before she got her child back, safe.

Still, things did get straightened out in the end.

At least for this Tennessee mother and her child. Who, somehow or other, could apparently afford the appeals.

Read more in this Macon County [TN] Times article: Judge Byrd reprimanded in Wilson County case.

Financial Considerations In A Divorce Settlement:

1. Personal exemptions for children
2. Child tax credits
3. Education tax credits
4. Future retirement pensions
5. Life insurance
6. Future income taxes on assets

Read more in this Kansas City Fox 4 News article, FOX 4 Finance: Divorce Settlements.