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April 14, 2014

DENVER DIVORCE AND "DISCOVERY" (Part 1)

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In any Denver area divorce or custody case, each side is going to be required to complete and exchange regular financial disclosures pursuant to the Colorado Rules of Civil Procedure, Rule 16.2. Normal financial disclosures will include drafting what is called a "Sworn Financial Statement," which is a document essentially setting forth a party's income, assets, debts, and expenses. In addition to the Sworn Financial Statement, parties will also be required to provide various other documents, such as the last 3 year's tax returns, last 3 month's pay stubs, and current bank, credit card, insurance, retirement, and various other financial statements. The purpose behind this exchange to make sure that each party has the financial information he or she needs to make assessements as to various financial issues, whether income related to child support or alimony, or what property there is in a divorce case and how it will be divided.

The normal C.R.C.P. Rule 16.2 financial disclosures tell part of the picture, but sometimes don't give enough information for people to make informed decisions or prepare adequately for a court hearing. As such, the Rules of Civil Procedure also authorize various other mechanisms for gathering information from the other party. Specifically, there are various rules which allow depositions, requests for admissions or inspection, interrogatories, and requests for production of documents. In general, this body of requests that can be made is called "discovery." As Denver area family law attorneys we generally see the "discovery" issued, or received, in the form of the the latter two: interrogatories and requests for production of documents. In theory, discovery should be issued in instances when the financial disclosures just don't tell enough, or more information is sought, such as might relate to the children or job search efforts. Other instances in which our attorneys might issue discovery might be when the other party is self employed or owns an interest in a business, or perhaps has been the one who primarily, or solely, dealt with the parties' finances.

Discovery can be a useful tool in both a divorce or custody case. As a general rule of thumb, and keeping client funds and costs in mind, discovery should only be issued when needed. Issuing and responding to discovery bring certain additional costs and challenges. Sadly, there are attorneys out there who issue it "just because" or as a matter of course. In these instances, there is not much one can do, as each party has the right to request more information. Inevitably, when one party issues discovery, the other side will almost certainly return the favor. Though this might sound childish, the legal world can be very tit-for-tat.

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February 16, 2014

Colorado Divorce and Income Tax Ramifications

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A Colorado divorce case can have many facets to it, whether financial or child related. The financial aspects of a divorce case can include property division, alimony (properly termed "maintenance"), and child support. With those financial aspects come various nuances and intricacies of which your expercienced Colorado family law attorney should be aware. One category of nuances tied into the financial aspects of a divorce case relates to taxes.

Most Denver area divorce attorneys have a basic understanding or knowledge of tax implications tied into a divorce case. Because the Internal Revenue Code is a volumious and shifting literary compilation, most family law attorneys are hesitant to give concrete tax "advice" to their clients. That does not mean that we cannot import general tax information or knowledge to our clients with the caveat of, "you should follow up with an accountant to be certain." In essence, family law attorneys are not tax experts. Despite the lack of expertise as relates to taxes, set forth below are some of the basic topics in which tax issues can arise in a Colorado divorce case and basic information related to such.

MAINTENANCE:

"Maintenance" is the proper term for what people might often call alimony in Colorado. Alimony is essentially spousal support. Colorado statute and case law indicate that depending upon financial circumstances, one spouse may have a duty to financially support the other, for a certain period of time, during and after a divorce case. The issue of taxes arises in an alimoy situation in that the Internal Revenue Code allows the party paying alimony to deduct the payments he or she makes from his or her income on the tax return. This can include temporary maintenance paid while a divorce case is pending, maintenance paid after the divorce is done, or sometimes "unallocated" support that is not necessarily defined, so long as that "unallocated" support is not classified as child support. When one is in an alimony paying situation, it becomes important to speak with a learned accountant to find out specifically your rights, obligations, and what documentation you may need, from an IRS stand point, to be able to claim the deduction. An accountant can also strategize with you in terms of making sure you handle your tax affairs in proper fashion as relates to alimony. The tax code is tricky and subtle deviations in how you pay or what you pay can have an effect. For example, the IRS may allow you to deduct the $2000 in alimony you pay on a monthly or "periodic" basis, but might disallow the deduction if you pre-pay for the year in a lump sum. The primary point is that as an alimony payor, you need to be informed as to the tax benefits and consequences tied into your court orders.

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January 25, 2014

Is Sick Leave Considered Marital Property in Colorado?

summer-beach-1270002-m.jpgThe Colorado Supreme Court recently decided an interesting issue for the first time. It looked at whether accrued vacation and sick leave is considered marital property during a divorce. In the case a husband and wife petitioned for divorce in 2007. The trial court divided the husband's accrued unused vacation and sick leave, construing it as marital property.

The wife had submitted an exhibit during the divorce at the bottom of which she noted her estimate that the husband had accrued $23,000 worth of vacation and sick leave. The wife stated she would not ask for half of this sum if she could move to Florida with their kids. If she moved to Florida, she would leave the amount for the husband to use for visitation with the kids.

The court calculated that the husband had 452 hours of leave and sick time, which was worth $51.40 per hour or $23,232.80 in total. The husband's pay stub did not indicate whether the accrued leave had a cash value. However, the husband was entitled to payment of the accrued leave if his job was terminated.

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November 19, 2013

Gifts and Property Division During a Colorado Divorce

white-house-1426634-m.jpgFrom the wedding and throughout the course of a marriage, a Colorado couple may receive many gifts, including gifts of real estate or significant amounts of money. If the couple gets divorced, one of the major controversies of the divorce may be who gets the property that was gifted. Is it separate property belonging to the partner who is friends or family with the gift giver? Or is it property to which both partners have a right? How does property division work in the case of gifts? Disposition of property in Colorado is covered by Colorado Revised Statute 14-10-113 and case law.

In a recent case, a husband appealed as to the property distribution ordered in connection with his divorce, among other things. One major piece of property that caused contention was the marital home. The couple had purchased the martial home together as joint property while they were married. Years later, the wife's mother had paid off the mortgage by making a direct transfer to the lender. The couple was still married at the time. Soon after she paid the mortgage, the mother signed a trust instrument that described all her gifts to the wife as advances on her inheritance.

The mother's trust instrument did not mention the husband. At trial, the wife testified the mother did not intend the mortgage payments as a gift to the marriage, but just to her. The husband testified both the wife and mother had told him it was a gift for them both. The trial court classified the home as the wife's separate property because her mother had contributed to the mortgage. It found that the funds used to pay the mortgage were treated as part of the wife's inheritance, which would be separate property.

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July 29, 2013

Division of Property During Divorce in Colorado

photo_6288_20080611.jpgIf you file for divorce in Colorado, within 40 days of serving your husband or wife you must also file a sworn financial statement with the court and make various mandatory disclosures to your spouse. Unlike some other states, Colorado is not a community property state; not all of your property is considered equally the property of your spouse. Therefore, the judicial system requires that spouses make each other aware of their financial information while coming to an agreement on marital property, debts, and maintenance.

When the parties are unable to come to an agreement, the court divides the marital property by weighing several factors. Among these factors are: each party's contribution to acquiring the property, including the contribution of a homemaking spouse, the value of each party's contribution, economic circumstances of both partners when they divorce, which partner is going to have custody of the children, and any changes in property values where only one party owns the property. Some items often considered "marital property" by the court are pensions, life insurance policies, tools, businesses, houses, vehicles and furniture.

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June 12, 2013

DENVER DIVORCE AND YOUR BUSINESS

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As divorce attorneys in Denver, we deal with various issues in any case. This can include issues related to children, property, financial support, and more. Not all cases are the same. One of the significant issues that can arise in a divorce is the division of property. In most cases, the property to be divided consists of a home, retirement and bank accounts, vehicles, investment accounts, or the furniture and pots and pans. However, there are families or parties to a divorce case who own businesses or business interests. As part of our divorce practice, experienced family law attorneys at Plog & Stein assist with the valuation and division of business assets as well.

Colorado business interests come in all shapes and sizes. A person may own a large business, such as a chain of restaurants or a car dealership. A person may own a small business, such as a one person accounting firm or a mom-and-pop laundry mat. A person might also own a fraction or portion of a business, without owning the whole entity outright. In a Colorado divorce setting, a business, or interest in a business, is generally considered property. As property, the same principles for dividing other assets apply. Property acquired during the marriage, absent a limited exception, is marital. Increases in value during the marriage to property acquired prior to marriage are considered marital in nature. Titling on property determined to be marital does not matter and said property can be divided by the court regardless of whose name it is in.

Prior to arriving at the actual division of a marital business asset, the parties must determine the value of a business. Contrary to popular belief, the value of any business is more that just looking at the assets/property and debt to arrive at a value from a balance sheet approach. Though this can be one facet of a business valuation, there is much more to the equation generally accepted by attorneys and courts in a Colorado divorce case. Beyond assessing assets and liabilities, a business valuation will entail an assessment of current and historical revenues and profits. This analysis also ties into the term "good will," which can be quantified into an actual dollar figure. We have seen cases in which there may be a two person professional operation in which one party or the other will say, "There's no value to the business; I am the business." Of course, this will be a statement made by a husband or wife who actually runs or owns the business. Conversely, the other party may find it meritorious to look into whether even a small business has value for asset division purposes. As part of the process, business valuators can also determine historical values, such as the value at the time of marriage or acquisition, as well as the current fair market value.

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April 10, 2013

DENVER DIVORCE AND CIVIL UNIONS

For years, we have listened to debates in the media regarding whether Colorado should, or should not, allow civil unions. The debate ended on March 21, 2013, when the Governor signed into law the Colorado Civil Unions Act, Senate Bill 13-011. Starting May 1, 2013, Colorado will allow civil unions. Under the new law, persons of the same or different gender will be able to enter into legally recognized unions. As civil unions are designed to be similar to marriage and allow the partners to such similar rights, it stands to reason that the new law will also have an impact in the area of divorce law. As a Denver family law attorney, I have started researching the subject and the coming changes, not only to educate myself, but to also prepare our firm to start handling cases involving the break up of civil unions. Just like marriages, people come together and grow apart. Just like in marriages, people fight. Now, just like marriages, there will be a legal process to get people through those break ups in an orderly, and legal, fashion.

The new Act, which will primarily be contained in Colorado Revised Statues, Title 14, Article 15, is full of new definitions, rules, and procedures. The Act contains language defining a civil union, indicating who can legally enter into one, setting forth the legal process for effectuating a union, and setting forth how to get out of one. Divorce law is generally set forth in C.R.S. Title 14, Article 10. Commencing May 1, 2013, Article 10 will now contain Section 106.5, which specifically states that the procedure for dissolving a civil union will be the same as the procedure for seeking a Colorado divorce.

Likewise, the new statute indicates that partners to a civil union will have the same rights as parties in a divorce case, meaning they will now have a family oriented forum to deal with issues of alimony(maintenance), property division, debt division, and other issues people will generally fight over in a divorce. Prior to the Act, people in a non-marriage situation, whether same sex or not, have been forced to litigate dividing up property in a regular civil court setting; and there was no right to alimony. Now they will be afforded a forum with more of a family law flare.

Once the law goes into effect, people will need to apply for a civil union license and register it in their county of abode. Once done, the State of Colorado will recognize the union and confer rights to the partners that might otherwise not be conferred in a boyfriend-girlfriend, girlfriend-girfriend, or boyfriend-boyfriend relationship. For Denver area divorce lawyers, this will certainly mean a new area of litigation. At the same time, those attorneys will already be fully aware of the substantive body of law which will apply to the dissolution of a civil union. The Act does contain language indicating that a marriage is still between a man and a woman. Rights and rules will be gender blind.

Under current law, same sex couples, just as couples of differing genders, can already fight for their rights regarding child support, custody, visitation, etc. in the domestic relations courts and under the domestic relations laws. As such, my immediate perception is that the law will likely have little impact on those types of issues. At the same time, one cannot anticipate all potential issues which may arise. Without much language on these subjects contained in the Act, as relates specifically to family law, the courts will likely be left to clean up any ambiguities or ommisions made by the legislature. Time will tell.

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March 25, 2013

COLORADO ALIMONY AND DIVORCE: POTENTIAL 2014 CHANGES (Part 2)

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In February 2013, we published the first segment of this posting regarding potential changes coming to Colorado divorce law and the issue of alimony, more properly termed "maintenance." The rumors still persist among Denver area family law attorneys, that our alimony statutes will be changing, commencing 2014.

Part 1 of this post discussed changes related to the creating of a guideline table, similar to child support statutes, setting forth a framework for judges to look at related to lengths of time that an alimony award should run and percentage amounts to be received by the payee spouse. The posting also dicussed another potential change coming to the Colorado maintenance statute related to termination or suspension of maintenance based on the recipient co-habitating. In this Part 2 posting, the remaining significant, potential statutory changes to be discussed stemming from House Bill 13-1058 include definitions of income, provisions for the protection of persons not represented by an attorney, and a rebuttable presumption that retirement at "full retirment age" is a good faith basis, or reason, to modify a maintenance award.

Under the current alimony statute, C.R.S. 14-10-114, there is no concrete definition of income. In part, the current maintenance statute has deferred to C.R.S. 14-10-115 for such definition. If changed, the alimony statute will now have a definitive list of what is income for maintenance purposes, including language related to reductions for child support obligations, the ability for the court to impute income to someone, and definitions of volutary unemployment or under-employment. Like the child support statute, the list defining income is lengthy, and can include most sources, such as income from employment, self employment, retirement or pension pay, interest, dividends, Social Security payments, workmen's compensation, monetary gifts, lottery winnings and more. As practicing Colorado divorce lawyers, we have largely, though such has been somewhat unwritten, deferred to the child support statute for guidance as to what a court would, or might, consider income for alimony purposes anyway. That being said, it would now be set forth in black and white, for all to see, with little grey areas to argue over.

The next potential change to the Colorado maintenance statute relates to built in protections for a person not represented by an attorney. Currently, the courts have had the ability to step in and assert their input regarding whether an award of alimony, or the waiver of alimony, is fair. Cases in which a court will actually undo an agreement without one of the parties raising the issue are few and far between. I cannot say that I have ever actually seen a court disturb a maintenance agreement. Furthermore, when parties are waiving the right to receive maintenance, they are generally setting forth, whether in writing or orally in court, that they are freely and voluntarily making the waiver. If the House Bill is passed, courts will not be allowed to approve an agreement waiving maintenance or an agreement regarding maintenance which does not follow the guidelines, unless the unrepresented party has specifically indicated that he or she has been made aware of the guidelines. In practice, this will mean that attorneys will now need to make sure that they provide the other side, if unrepresented, with a copy of the guidelines prior to having them sign an agreement. In theory, if there are two parties to a divorce, both of whom have no attorney, they will need to do the same for the courts to approve any agreement. In essence, this creates a safeguard for people without attorneys. It also creates one more step that must be taken to get your divorce completed.

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February 10, 2013

COLORADO ALIMONY AND DIVORCE: POTENTIAL 2014 CHANGES (Part 1)

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As experienced divorce attorneys in Denver, the lawyers at Plog & Stein, P.C, have seen, over the years, various changes to the law related to many aspects of both divorce and custody statute. From time to time, the state legislature, with some input from the bar association (not always listened to), decides to make changes to the existing body of work that encompasses what I will call the family law statutes. This has included simple changes, such as adjusted child support guideline amounts to reflect changes in economic trends, or changes to the timing of the filing of certain pleadings or documents in a court case.

However, from time to time, there are also sweeping, and radical changes which ultimately get enacted into law. Pending before the legislature is a bill, which if passed, stands to radically change the way courts assess maintenance, or alimony, in Colorado divorce cases. Again, at this stage, it is only a proposal. That being said, the rumors among learned and seasoned family law attorneys, and some judges, is that the bill will likely be passed, with the new provisions taking effect for Colorado divorce cases filed after January 1, 2014. The specific bill is House Bill 13-1058, and must still meet both state senate and the Governor's approval before becoming law. Again, the prevailing rumor right now is that this will happen. The question then becomes how does this affect you, the litigant in a Colorado divorce?

Alimony, or maintenance, stems from C.R.S. 14-10-114 and is essentially court ordered spousal support to be paid from one spouse to another. Factors going into an award of maintenance include incomes, financial needs, length of the marriage, time for one spouse to attain financial self sufficiency, etc. Maintenance in divorce cases has always been somewhat of a gray area or subject. Unlike child support, there has been no guideline or formula. Thus, how much maintenance and for how long has always been up to a judge's discretion. Discretion can vary from judge to judge and court to court.

This posting is not intended to weigh in on whether the proposed changes are good or bad, but rather to identify the significant proposals and potential effects upon the practice of divorce and alimony law under Colorado statute. From a cursory reading of the Bill, it appears that the significant changes coming are as follows:

1. GUIDELINE AMOUNT: As with child support, the proposed new legislation sets forth a formula related to how much alimony should be paid, and a time table for suggested appropriate lengths for the payment of it. A cursory read of the bill seems to indicate that the temporary maintenance formula set forth in C.R.S. 14-10-115 regarding 40% of the higher earner's income minus 50% of the lower earner's income will be applied to awarding maintenance at a final or "permanent orders" hearing. However, unlike the child support statute, the Bill indicates that the guidelines are not mandatory and are not a "presumption." At the same time, the Bill seems to indicate that a court must consider the guidelines and set forth specific reasons for its ruling should it differ from such. Language set forth in the draft indicates that primary purposes of the proposed guidelines are to enhance "predicatability" in alimony cases, which in theory will then promote settlement.

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January 30, 2013

THE RIGHT TIME TO FILE YOUR COLORADO DIVORCE: ANSWERS (Round 5)

No one rushes to something chaotic and potentially painful. Divorce can be just that. The decision to be made is not one to be made with haste, but rather with thoughtfulness and strategy in mind. The Denver divorce attorneys at Plog & Stein, P.C., are ready to assist you in assessing the right time to get your divorce case filed. Each case is different and each set of circumstances can lead the conclusion of whether or not the time to start the divorce process is now. As part of the on-going continuation of the article or posting on the subject, below are more scenarios related to the the timing of filing your Colorado divorce.

15. My employer may transfer me to Minnesota and my wife wants to stay here with kids. WAIT

The answer of "wait" in this scenario primarily relates to the children. The uncertainty that comes with divorce can bring great emotional and financial strain on anyone. Likewise, a move to another state also comes with its own set of challenges, whether related to finding a new home, new schools, finances in general, or otherwise. It would make no sense to file for divorce only to find out a few weeks or months later that you are definitely being transferred to Minnesota. Filing for divorce in Colorado will start the litigation process, which will include making decisions regarding visitation, custody, or perhaps sale of the marital home. Thousands of dollars could be invested in the process trying to arrive at a resolution, only to find out shortly thereafter that things have changed. For example, a visitation and custody schedule could be reached which will become moot the minute you leave for Minnesota. Likewise, you may come to agreements or reached orders related to who will keep the marital home, sale of the home, etc. which could become impractical if one party moves to another state. Furthermore, one could find himself or herself in a situation in which he or she is living in one state and fighting a legal battle in another. Another facet of this scenario and answer relates to the notion that the wife may change her mind and decide she will come, with the children, to Minnesota. If everyone moves together, Minnesota would ultimately become the proper state to deal with the divorce issues, as well as the child issues. If one elects to file, then move, the children and the case will likely remain in Colorado. In essence, it is better to have clarity in your personal life before going into the unknown that comes with a divorce case. The lack of clarity can ultimately have an impact on the outcome of that case.

16. Our house is on the market and we have a couple of offers. WAIT

A common aspect of any divorce case can be what to do with the marital property, including the home. It is not uncommon for people to argue over this issue in terms of whether one party will keep the home, will the home be sold, and how, if sold, the money will be divided. With the home on the market, it would be more prudent to wait until it is sold before filing for the divorce. If a divorce is filed and then the home is sold, the proceeds could be tied up for quite some time without either side really being able to utilize the funds, absent an agreement. Pursuant to C.R.S. 14-10-107, property may not be disposed of while the divorce case is pending. Better to let the home sale go through, discuss how the funds will be allocated or divided, thereby potentially removing any legal argument or battle over division or use of the proceeds. Additionally, if the home is on the market and the divorce is filed, one party could be ordered to leave by the court within a few weeks of the case commencing. In that instance, one party could either be left holding the proverbial bag in terms of paying the mortgage on his or her own. Conversely, one party could be out of the home, yet still ordered to pay on the mortgage. Generally, housing is going to be the largest monthly cost that a party in a divorce case will pay. Why not get the issues related to the marital home, including division of any proceeds, resolved prior to giving the courts power over the issue?


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November 30, 2012

Making It Through The Holidays While Contemplating Divorce

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Thanksgiving has come and gone and now we are approaching the winter holidays, including Christmas and Hannukah. The holidays are wonderful times of the year for families and especially children. These upcoming days can be particularly stressful for couples contemplating divorce in the New Year, while remembering happier times.

Putting off filing for divorce until after the holidays is quite common. However, do not allow your sadness and tension to put a damper on the excitement for your children. Here are a few tips on how to make it through the end of the year.

Try and make this holiday season extra special. Perhaps being together with family during this joyous time of the year will allow you and your spouse to reconsider the impending divorce. It might be a time to sit down and consider counseling or mediation to resolve some of the issues prompting your decisions.

Most importantly, focus on your children. They are about to be impacted by decisions that you and your spouse are about to make, although they have had no input in the decision process. Allowing them to see that you both love them and are able to communicate, without fighting, will help them to accept the separation once it becomes a reality.

Go out and buy holiday decorations and decorate the house together. Go shopping and buy some of the items on the children's wish list, including something for yourself. Just remember not to go overboard. The last thing you want is to have large credit card debt added to the stress of going forward with the divorce at the beginning of the year.

If you and your spouse have joint credit cards or bank accounts, budgeting during the holidays is important so that one spouse doesn't attempt to outspend the other. It can also be a good time to begin obtaining separate banking accounts and credit cards to make the financial transition easier later.

Try doing things that are inexpensive. Consider going to your children's holiday festival at school, riding around and looking at holiday lights and displays, lending a hand to an elderly friend or relative and attending a holiday service at a place of worship of your choice. Create fun traditions that can be transitioned into your new life after the divorce is final.

The timing of filing for a divorce is never easy and going through the holidays with this on your mind can be overwhelming. Embracing the holiday traditions and focusing on making this a special time for your children can help you to successfully navigate the season.

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November 15, 2012

THE RIGHT TIME TO FILE YOUR COLORADO DIVORCE: ANSWERS (ROUND 4)

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After practicing as a divorce attorney in Denver for over a decade, I have come to determine that there is no one "right time" to file for divorce. The timing for getting your divorce case started can depend on a wide array of factors. These factors can be financial, logistical, child related, or otherwise. Thought there is no one right time, there are certainly pivotal factors or events that should be considered when determing the time is right to end your marriage. Continuing with our April 2012 posting regarding the topic of filing your divorce and when, set forth below are more of the promised answers on the subject to consider. No case or set of facts is exactly the same, as each family is different. At the same time, there are some instances in which that right moment comes along.

12. I just cashed out my $50,000 stock account. WAIT

I answered this question with "wait" for various reasons related to disposition of the funds and the fact that they may be largely unusable once a Colorado divorce case is filed and while it is pending. Specifically, C.R.S. 14-10-107 sets forth an injunction which prohibits essentially the disposing or spending of assets such as this while the case is pending, but for the necessities of life. The stock account was definitely cashed out for a reason. If the intent in this instance was to use the funds on a vacation, for the purchase of a vehicle, to pay for your child's college, or for some other personal reason, holding off on the filing of the divorce will allow the person to make those expenditures without issue. Once the case is filed, one can presume it is likely that the court will divide the $50,000 equally as a final resolution, which could be months or more down the road, depending on which county the case is in. If significant purchases are made prior to the divorce being filed, the property purchased would still be subject to division. Nonetheless the account holder has at least had a chance to spend his or her stock proceeds as he or she sees fit. Furthermore, let's say those proceeds are used on a vacation or for your child's tuition. You can't really go back and divide those funds already expended later. Certainly, any remaining funds would likely be subject to division, but the account holder, by waiting a while to file for divorce, will at least have had options in terms of deciding how to spend those proceeds prior to filing the divorce case.

13. We have been separated for 6 months and my husband says he wants to move back home. FILE

In this situation, the parties have been physically separated for quite some time. At the same time, the presumption is that both parties own the home. As such, one would think that legally the husband can just move back home as he sees fit. In reality, he can, unless action is taken. As mentioned above, C.R.S. 14-10-107 sets forth an injunction which takes effect when a divorce case is filed, proscribing or prohibiting certain actions on the part of either party. One of the major tenets of the injunction relates to disturbing the peace of the other party. Most Denver area divorce courts ascribe to the theory that once the other party is served, he or she cannot just come and go as he or she pleases from the marital home if he or she has already moved out. In essence, most courts will view such to be a violation of the C.R.S. 14-10-107 injunction related to disturbing the peace of the other party. To have the legal power to keep your spouse from moving back in, coming and going as he or she pleases, etc., you must file for divorce. People separate for a reason and no one needs the acrimony and fighting that can affect their daily lives, or spill over onto the children. In addition to remedies that can be sought in your divorce case, such as contempt of court, some law enforcement entities will actually view someone coming into the marital home, uninvited, after separation and filing of a divorce case, as criminal trespass. The hope will always be that things never go that far. Sometimes they do. In essence, if you want peace in your home and the security of knowing your soon to be ex-spouse cannot just come and go, get your case filed.

Continue reading "THE RIGHT TIME TO FILE YOUR COLORADO DIVORCE: ANSWERS (ROUND 4) " »

September 29, 2012

THE RIGHT TIME TO FILE YOUR COLORADO DIVORCE: ANSWERS (ROUND 3)

The question of whether to file for divorce is not one easily answered. As a divorce attorney in Denver, I often meet with people pondering divorce, yet not quite sure whether they really want to go through with it. Deciding whether to completely alter your life, and perhaps that of your children, is a decision that should be weighed seriously. I, as well as all of the attorneys at Plog & Stein, am never one to push a person on the verge of making that decision one way or the other. It is not an attorney's place to make that life altering decision. It is an attorney's place to advise as to ramifications, outcomes, the legal process, etc. related to that divorce. A key factor in determining whether it's time to file for divorce, beyond the emotional notions of whether a marriage is truly over, relates to timing and the facts and circumstances currently at hand.

Below are more questions and answers stemming from my April 2012 posting regarding the right time to file for divorce in Colorado. Each case is different, yet some circumstances may dictate that it's time to file in most. Others may lead to the conclusion that it might make sense to wait. The answers set forth below are general in nature, but may assist those sitting on the proverbial fence.

8. Our oldest child is 18 and turns 19 in 10 months. WAIT

I answered this question with "wait" from the perspective of a married person, in a still in tact relationship, who would likely end up paying child support. As the child in this fact pattern is no longer really a child for Colorado custody purposes, but rather an 18 year old adult, the only relevant issue is child support. Presuming the person asking is the one who will likely be paying, it would be more prudent to hold off on filing until the child turns 19, which is the age that child support generally stops. If possible to hold off until age 19, there will be one less issue to litigate and one less potential strain on cash flow. Depending upon which county the case is filed in, the child could turn 19 by the time the case is completed. It makes no sense to spend money litigating an issue that will soon go away as the child emancipates.

I could also answer this question from the perspective of the payee, in that the child's financial needs may be better met with the family in tact. As Colorado child support is calculated based on a statutory formula and the legislature's idea of what is needed monetarily to raise a child, one might find himself or herself receiving less in child support than what he or she is accustomed to spending on the child. Of course, if there are circumstances, such as domestic abuse or other extreme issues, which make immediate filing a necessity, then file right away. Absent those, it might make sense to hold off until the last child is truly a child no more.

9. My husband just got pulled over for DUI with the kids in the car. FILE

Driving drunk with children in the car is not only a safety issue, it also becomes a legal issue with ramifications for both spouses. If contemplating divorce and your spouse is pulled over for DUI, the time is right to file. Many Denver area custody courts take DUI seriously, whether kids are in the car or not. A DUI alone can potentially tip the scales in a Denver visitation or custody battle. Alcohol is an intoxicating substance, just as with other drugs. The general presumption is that someone with a recent DUI has a substance abuse problem which may make them a potential danger to the children. The concern a court will have regarding the safety of the driver with the children grows exponentially when there are children in the car. At risk of sounding mercenary, from an attorney's perspective, this is the type of situation that can be a game changer in a custody battle. From an attorney's perspective, when facts arise which can change the outcome of a case, it is best to seize the day and act upon them. Setting aside the legal aspects of this scenario, the reality is that a parent who drives drunk with the children is a danger. As such, they should be monitored. Additionally, driving drunk with the children can often lead to a criminal charge of child abuse, and potential involvement with your county's social services team. In such instances, both parents may be looked at. Filing immediately may take any scrutiny off of you, leaving it solely placed on the deserving party, your soon to be ex.

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August 28, 2012

THE RIGHT TIME TO FILE YOUR COLORADO DIVORCE: ANSWERS (ROUND 2)

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In April 2012, I started a multi-part blog posting regarding the right time to file your divorce case in Colorado. As a busy custody and divorce lawyer in Denver, the summer has flown by without affording me time to continue providing the rationale for the answers provided. After many battles regarding custody, visitation, modifications, alimony, and more, I am now in the position of having some time to get back to writing, with the hope of providing more useful Colorado family law information for those who need to know. Below is a continuation of the answers to the original questions posed, starting with number 5:

5. We are in the process of filing for bankruptcy. WAIT

I answered this question "wait" for various reasons, both procedural and substantive. Technically, pursuant to the US Bankruptcy Code and the Supremacy Clause of the US Constitution, a bankruptcy case and federal law supersede state law. Once a bankruptcy case is filed, there is an automatic stay issued, which, in essence, technically requires that the financial aspects of a Denver divorce case are "stayed" or put on hold until the bankruptcy case is resolved. Though we have seen many bankruptcies intercede in divorce cases, it is rare to actually see the stay raised as an issue, or enforced. Nonetheless, technically, it could stall your divorce.

Aside from the automatic stay, which could delay your divorce, there are certain basic bankruptcy premises which can affect a divorce case, and vice versa. As a general premise, orders entered in a family law case related to Colorado child support or alimony are non-dischargeable, meaning there is no way to get around those orders. Additionally, orders stemming from a divorce case related to division of property or allocation of debt are also generally non-dischargeable in bankruptcy. As such, it makes no sense to spend money and time litigating your divorce case, including property and debt issues, if you know bankruptcy is on the horizon. Rather, it is more efficient and practical to get any issues related to separate and marital debt locked in and resolved at the federal level first. The divorce cannot undo the bankruptcy court outcome. One must keep in mind that the bankruptcy can affect property too, such as might related to a jointly financed home or a car, or even who gets what and the issue of handing it over. Once your bankruptcy is done, the ground rules are more clear in your divorce case.

6. My husband is threatening to take the kids to Florida and not come back. FILE

In this scenario, I indicated to "file." This should be done immediately. A Denver custody attorney should know that whether in a divorce or custody case, there is an automatic injunction in place which precludes the parties from taking the children out of the State of Colorado while the case is pending, without permission from the other or from the court. In a divorce case, this injuction is set forth in C.R.S. 14-10-107. In a custody case, the injunction stems from C.R.S. 14-10-123. The injunction set forth in solely custody cases was only added in the last few years. Until then, attorneys sat in frustration as they watched people in custody cases start out with less protection than those in a divorce matter. Fortunately, our legislature got wise to the gap and things changed.

Should your spouse threaten that he or she is leaving Colorado, to Florida or wherever else, you can legally stop him or her by virtue of getting your divorce case filed and getting him or her served. The statutory injunction will be set forth prominently in both the divorce petition and the summons. Once served, there will be no legally valid excuse for just taking the kids and going. In essence, they are legally blocked from taking the children pursuant to C.R.S. 14-10-107. Until such time as a case is filed and both parties are served, there are no black-and-white rules in terms of the children, meaning neither party is presumed to have an automatic right to custody, to determine where the kids will be, etc. Furthermore, assuming you get them served, there are expanded legal remedies available to you to get the children back and courts will take a violation of the injunction very seriously. As such, it will be easier to get emergency relief should your spouse elect to take the children on a permanent vacation elsewhere in the country. As the old saying goes, "a pound of prevention is worth more than a ton of cure." Therefore, you should file right away.

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June 2, 2012

THE RIGHT TIME TO FILE YOUR COLORADO DIVORCE: ANSWERS (ROUND 1)

At the end of April, I posted an article regarding the timing of filing your Colorado divorce case. Though I had strived to start answering questions sooner, May slipped away from me, with my children's school ending, vacations, and the busy pace that comes with being a Denver divorce attorney.

As we move into June, I am now refreshed, focused, and back in the literary saddle, ready to continue informing my readers as to all aspects of Colorado custody, divorce, and child support law. Below are what I will call "Round 1" of the answers and explanations related to the questions posed in my last posting.

As each divorce and custody lawyer in Denver has his or her own opinion, my answers and explanations are subjective in nature. Furthermore, there is no "right" or "wrong" answer and there are many differing factual variables which, in a real life divorce setting, could change the answer or explanation set forth below.

1. My husband is the primary bread winner and just lost his job. WAIT.

I answered this question with "wait" based on concerns regarding income and the assessment of alimony (maintenance) and child support. Contested Denver area divorce cases can take anywhere between 4 months and 2 years, depending on which county your case is in. That certainly would give the husband in this scenario plenty of time to find a job. C.R.S. 14-10-115, and case law interpreting such, indicates that you look to a person's employment or income potential. At the same time, the court is not going to automatically use the husband's prior income for purposes of assessing child support or alimony. The wife needs to wait a while to see what shakes out with the job search. At a "temporary orders" hearing, the court is going to look at the current financial status quo when assessing financial orders to govern while the case is pending. Likewise, if husband is still unemployed at the final or "permanent orders" hearing, this will likley affect the outcome on the issue of alimony, including potentially a claim for such against wife if she works and huband does not. A little patience is needed in this scenario, as no job for your soon to be ex spouse can either leave you receiving less, or even potentially paying more.


2. I am the primary bread winner and got laid off a couple of months ago. My husband works. FILE

In essence, the answer of "file" to this question is almost the reverse of the answer to Question #1 above. If you have been the primary breadwinner and the one who will likely be bearing the financial burden of supporting the other party, it is better for you to file your Denver divorce while you are in a lesser financial position, thereby making it less likely for the court to ding you financially in a battle over alimony, child support, or attorney fees. You must keep in mind that the court will still, of course, be looking at what efforts you make, or have made, to find similar employment. Thus, the job loss is not a free pass, but could mitigate your damages in the sense of what you might ultimately be paying your spouse.

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