Divorce Newsletters

Attorney Fee Awards in Community Property States

In an action for divorce under the common law, the power to grant a party attorney's fees and expenses is within the discretion of the court. Some courts exercise such power as a part of general equity and when warranted by the parties' relative ability to pay counsel fees. Numerous factors are considered by the court in awarding such fees, the most significant of which being the time spent and the services rendered by an attorney in representing a party in the divorce.

Financial Discovery Issues in Divorce Cases

In divorce, financial discovery concentrates on the economic aspects of the marriage and the spouses' financial circumstances. Detailed financial discovery allows both spouses to obtain the information needed to present a complete and accurate representation of the family's assets and liabilities. With that information, the divorce court can fashion a fair marital property division and an appropriate support order.

Imprisonment as Grounds for Annulment of Marriage

Annulment is very different from divorce, even though some grounds for annulment are similar to divorce. Some grounds available in divorce are not available in annulment. In most states, if a spouse is convicted for a serious crime and imprisoned consecutively for three years, imprisonment can be a ground for a divorce. While imprisonment is generally not a ground for annulment of marriage, in some states, if the defendant conceals his or her criminal record such as conviction and imprisonment from another spouse, this is considered fraud and can be grounds for annulment. Further, in some states, inmates imprisoned for life may not marry.

Lump Sum Spousal Support

Spousal support can be one of the most difficult issues to resolve in divorce. Spousal support, which is also referred to as alimony, involves an obligation by one spouse to make financial payments to the other spouse. Permanent spousal support involves the payment of support after a divorce is granted and until a further court ruling modifies or terminates the obligation. Permanent spousal support may be ordered in situations involving long-term marriages or in situations where one party cannot earn a living due to a disability or injury. Such spousal support can be paid in lump sum or on monthly basis.

Valuation of Closely Held Businesses in Divorce Proceedings

Generally, divorce cases involving thorny property issues can be complicated to resolve. This especially is true when the marital estate includes a closely-held business. A closely-held business usually presents one of two scenarios in the divorce context. The business may be tied to one spouse who is responsible for the business's success. Distribution of the business to one spouse often creates asset allocation and business valuation issues. It presents the problem of valuing the business and structuring the parties' assets and liabilities in order to provide the other spouse with a comparably valued property distribution. If the business depends on the operating spouse's good will and management, which many closely-held businesses do, then the true value can suffer under the emotional stress common in divorce even if the business is distributed to the key-person spouse. A business having one value when operated by the key-person spouse can have a far different value when distributed to the non-operating spouse.