fbpx

Divorce and Family Law Office of Joanne Kleiner

Amicable Divorce Attorney

Divorce

Dec 07

The Role Of A Financial Neutral

What Does a Financial Neutral Do in a Divorce?

Debt and disagreements over money and assets are major sources of contention in many divorces in the United States. An estimated 54% of Americans believe that debt is a solid reason to divorce, and 35% of Americans say that finances are the leading cause of stress in their marriages. If your marriage has come to an end, working with a financial neutral in addition to a divorce lawyer could help you set up a more secure and less stressful future.

What Is a Financial Neutral?

A financial neutral is an independent, third-party expert or professional who focuses on the financial aspects of a divorce. They do not represent either of the spouses and thus does not advocate for one party or the other. If there is future litigation, neither party can contract with the financial neutral for future representation. The financial neutral may be retained by the divorce lawyer or by the couple if they both agree to the collaborative process.

What Are the Qualifications of a Financial Neutral?

The qualifications for a financial neutral encompass a wide range of degrees, certifications, and experience. Some of the certifications held by financial neutrals include certified public accountant, business appraiser, certified fraud examiner, certified divorce financial analyst, or certified financial planner. Most financial neutrals participate in many hours of annual continuing education in order to maintain their license to practice accounting and to maintain their certifications. A financial neutral usually holds a bachelor’s or master’s degree in business, finance, accounting, or a related field of expertise.

Which Services Can a Financial Neutral Provide?

During a collaborative divorce, these professionals focus on the financial aspects of the divorce. Their role often begins with information gathering. They may gather information from both parties. The financial neutral usually asks for documentation of income, debt, retirement savings, taxes, bank accounts, investments, and other assets and liabilities. They do not duplicate the efforts of the divorce attorney. The financial neutral provides copies of information to both parties as requested by the attorneys. After reviewing what both parties provide, the financial neutral may identify missing documents and overlooked debts or assets and request them before the divorce process can proceed.

How Does a Financial Neutral Participate in a Collaborative Divorce Process?

A financial neutral meets with spouses on an individual basis as well as during joint sessions. The spouses’ respective family law attorneys are usually present during joint meetings in order to represent the best interests of their clients. If one spouse plans to request spousal or child support, the financial neutral participates by creating budgets for one or both parties. They may also perform cash flow analyses for each spouse in consideration of what their post-divorce financial futures will look like.

Who Would Benefit From Working With a Financial Neutral?

Any divorcing couple in disagreement over the distribution of assets would benefit from working with a financial neutral. Divorcing spouses who do not have any major areas of contention may also benefit from working with the financial neutral in order to have a more clear picture of their finances after the divorce. A spouse who earns significantly less than the other may wish to work with a financial neutral in order to make a support request that is likely to be agreed to out of court.

If you’re facing a complicated financial future, a consultation with our divorce lawyer gives you insight into structuring a fair settlement and helps you understand more about your financial future. To learn more information about the impact of a divorce on your finances and the role of a financial neutral in the divorce process, arrange a consultation with the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania. Contact our office by phone at (215) 886-1266, or fill out and submit our online form to make an appointment.

Nov 12

Divorce and your medical practice

The Impact of a Divorce on Your Private Medical Practice

The divorce rate among all physicians is 21.8%, which is lower compared to many other occupations. Scientists theorize that physicians marry later and spend more time choosing their spouses. However, when your marriage has come to an end, and you’re a practicing physician who owns a medical practice, speaking with a divorce lawyer will help you know how to protect your reputation, finances, professional reputation and future.

Evaluation of the Medical Practice

You will have some questions to address during your initial consultation with a divorce lawyer. These relate to the evaluation of your medical practice. Your lawyer may inquire about when the practice began to determine if you had it before your marriage or started it after your wedding. You may also need to answer questions about the type of entity your practice is under IRS regulations, how you funded the practice, whether or not there are co-owners and if shares were issued, if there is a buy/sell agreement in place, and if there are future vesting or stock options that others would be entitled to if you were to stay married. Remember that your soon-to-be ex-spouse may hire a forensic accountant to dispute your accountant’s findings.

Determine the Practice’s Assets and Liabilities

As the owner of a medical practice, you will want to work with a forensic accountant to categorize its assets and liabilities, and your divorce lawyer will need this information. This will include the list of long-term patients, office equipment, the building if you own it, accounts receivable and furniture. Your medical practice’s liabilities include rental or mortgage payments, equipment payments, taxes, payroll, insurance, retirement contributions, employee benefits and loans.

Evaluation of Your Income From the Practice

Working with a forensic accountant will also help determine if you’ve been getting a fair income from your medical practice. Many physicians only take a small salary and reinvest their earnings into their practice. The accountant may evaluate your income compared to other physicians within the same field and your income compared to other physicians who work in the same specialty and have the same level of experience.

Regulations Pertaining to the Ownership of Medical Practices

According to Pennsylvania law, only a physician can own a medical practice or be a shareholder in one. Because of this, your non-physician spouse can’t be awarded any ownership interest in the practice in your divorce settlement. Therefore, while the court will consider the value of the practice when approving the settlement, ownership will not be on the table.

Contracts Between Physicians Within the Practice

Another consideration for the future of your medical practice after a divorce is the terms of the contracts you have with other physicians in the practice. Some medical practices have contract stipulations requiring that if one member gets a divorce, they forfeit their stock. This stipulation is for the protection of the other members. Some contracts might allow you to repurchase your stock after a certain period, but this could allow your ex-spouse to protest the settlement and take you back to court.

If you’re a practicing physician and a divorce is in your future, a consultation with a lawyer could help you understand how divorce could impact your medical practice. For more information about the impacts of a divorce on your medical practice, schedule a consultation with the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania by calling us at (215) 886-1266. Our quick contact form also enables you to request a consultation. Complete and submit the form, and an office associate will be in touch with you.

Oct 09

What Are the Types of Divorce and the Litigation Alternatives?

Are There Alternatives to a Divorce in Court?

In 2020, 58,960 couples got married in Pennsylvania, and 28,884 got divorced. Many people are hesitant to proceed with a divorce because of how they perceive the attention, expense and stress of the process. If you’re considering a divorce, a consultation with a divorce lawyer will help you understand the alternatives to a costly, time-consuming and public divorce in a courtroom.

Collaborative Divorce

If you and your spouse are on good terms, a collaborative divorce offers an effective way to end the marriage. It’s designed to reduce the cost and stress of the divorce process. Both parties work with their individual divorce lawyers to resolve issues without the court having to decide for them. In some cases, such as child custody, the parties might work with other professionals in order to work through disputes. The final settlement comes from the decisions made by the two parties and their lawyers. A judge then signs and enters the final settlement into the public record.

Mediation With a Third Party

When you want to stay out of court as much as possible but you and your spouse also have a wide range of disagreements, working with a mediator may be your best option. When you choose this process, a neutral party works to resolve disputed issues. Mediation is common for helping couples make agreeable decisions on spousal and child support, child custody, pet custody and the division of assets.

The mediator doesn’t represent either party. They also don’t make any of the decisions. They simply facilitate communication with the goal of reaching a settlement as quickly as possible. If you choose to use a mediator, you and your spouse will each want to have an attorney. Mediation costs less than having attorneys argue for you in court, and it also gives you more control and privacy over the divorce process.

Arbitration

Using arbitration is another effective option when you and your spouse want to keep your business out of the public courtroom. This process features a private trial in which one or more arbitrators function as a judge. The arbitrators typically have several years of legal experience, and they may be attorneys who do this on a full-time or part-time basis. This type of alternative dispute resolution allows you and your attorney to present your case.

The hearing isn’t as formal as what takes place in a courtroom. Less evidence is required than what a judge would mandate in court. After a hearing, the arbitrator decides on the issues. One or more issues may be discussed at each hearing. The decisions made by an arbitrator can be non-binding or binding.

Using an arbitrator costs more than a mediator or the collaborative process, but it’s less time-consuming and expensive than handling these disputes in court. The downside of using an arbitrator is that you and your spouse lose control over the decision-making process.

Choosing an Alternative to Divorce

Many divorcing spouses start with a collaborative process. If you don’t make any progress on resolving your disagreements, you can then move on to another option, such as a mediator. Working with a mediator doesn’t prevent you from moving on to an arbitrator if the mediator can’t resolve the areas of disagreement.

Some divorcing spouses work their way through all of these court alternatives in order to reduce the cost, stress and publicity surrounding a traditional divorce process. No matter which type of divorce alternative you consider, consulting with an attorney helps you know what to expect and ensures that all documents are in order and filed with the court in a timely manner.

When you’re considering a Pennsylvania divorce, you may benefit from an appointment with attorney Joanne Kleiner. Contact our office in Jenkintown at (215) 886-1266, or fill out our contact form, and an associate will contact you with scheduling options.

Sep 09

Facilitating an Uncontested Divorce Through Mediation

Divorce lawyers often recommend mediation when there is any hope of achieving an uncontested divorce as it leads to an agreement in upwards of 80% of cases. The average mediation is completed in three to six months whereas the average contested divorce is far lengthier. In addition, the cost of a traditional divorce can be 10 times higher than the cost to have your divorce mediated.

Qualifying for an Uncontested Divorce in Pennsylvania

If you would like a “no court” divorce, you must meet three criteria. At least one of you – you or your spouse – must be a resident of Pennsylvania for no less than six months before filing. Both spouses must agree on whether the case involves fault grounds or no-fault grounds. Many uncontested divorces are filed based on the ground of mutual consent, which has some special requirements that your mediator can assist with, such as affidavits and a 90-day waiting period. Both spouses must also agree on the issues in the divorce, and this is where a mediator can be especially helpful.

Agreement on Divorce Issues

Even if the spouses have a good relationship and fully intend to compromise with each other, reaching agreements on all the issues that need to be resolved can be difficult. The mediator does not represent one spouse or the other but, rather, guides both parties through this process. This includes determining how to divide marital property, how to allocate responsibilities for outstanding debts, whether one spouse will pay alimony and the amount, child support for dependent children, and child custody and visitation. While the mediator does not represent either party, both spouses can opt to have their own legal representation whose job it is to preserve their client’s rights.

Preparing, Filing and Serving Uncontested Divorce Papers

Paperwork must be completed and filed to begin the uncontested divorce process. Some Pennsylvania counties have their own forms as well, and your divorce lawyer can help ensure that all necessary documents are prepared and filed. The lawyer will also help you determine where to file. Typically, you should file in the county where your spouse resides, but that may not be the case if a couple is separated, or where they live presents issues. Once the documents have been filed, the divorce papers must be served to each spouse, which is an official process that the firm can oversee as well.

Uncontested Divorce Time Frame

As mentioned above, the average traditional divorce involving the courts takes 24 months. A mediated divorce will usually take at least three months as there is typically a 90-day waiting period requirement. It is unusual for a mediated divorce to take longer than six months to finalize.

Uncontested Divorce Expenses

There are costs to file with the courts, which are usually $200 to $300. The cost for mediation is typically $1,500 to $4,000 per person. There may be additional legal fees if you opt for personal representation. There can also be some additional expenses if you have to, for instance, make changes to retirement accounts. The average cost per person of a divorce that requires litigation is $20,000, and there can be many additional expenses as the case extends for months or even years.

Other Benefits of Divorce Mediation

Divorce mediation puts your children first as it creates a harmonious family environment and eliminates the need for them to take the stand. It lets you shape the divorce to the specifics of your family. It is much less stressful and protects your privacy as you are not exposed to public court cases.

Divorce Mediation in Pennsylvania

If you’re considering divorce mediation, the Law Office of Joanne E. Kleiner is here to help. Our law firm has more than 25 years of experience helping both men and women get divorced and move forward with their lives. If you would like to schedule a consultation with a divorce lawyer, you can contact our Jenkintown office online or call us at 215-886-1266.

Aug 09

The Benefits of Parallel Parenting After a Divorce

Reasons to Consider Parallel Parenting After Your Divorce

Although the divorce rate in the United States has been dropping for about 20 years, nearly 39% of first marriages end in a divorce. Many of these marriages include young children, and conflict around parenting and child custody is one of the primary areas of contention discussed with a divorce lawyer. One way that divorcing couples can reduce stress and conflict and minimize time in the courtroom is to create a plan for parallel parenting of their children.

What Is Parallel Parenting?

Parallel parenting is a method of raising children in which the divorced parents minimize interactions with each other. Instead of arguing with each other, they focus their time and energy on their children. This is an effective parenting method when you and your ex-spouse have difficulty being civil with each other.

How Does Parallel Parenting Differ From Co-Parenting?

In a co-parenting situation, parents regularly communicate with each other, present a united front, and have similar rules at each residence. It involves a lot of cooperation and communication. Parallel parenting divides parenting responsibilities and minimizes interactions between the adults. By dividing responsibilities and following the plan, the parents may rarely need to interact with each other.

Who Should Consider Parallel Parenting?

Divorced couples who can’t seem to agree on anything should consider developing a parallel parenting plan with a divorce lawyer. Instead of focusing on problems with each other, this plan focuses on the well-being of the children. Minimizing interaction between the divorced parents also reduces stress and the amount of time that is spent in a courtroom.

How Does Parallel Parenting Benefit Divorcing Parents?

A parallel parenting plan allows both parents to remain active in their children’s lives. It minimizes the stress on each other and disruption for the children. A successful parallel parenting plan demonstrates that parents can focus on what’s best for their children instead of their disagreements, dislike, or distrust for each other. The plan creates guidance for common issues that are likely to breed conflict, such as where children will spend the holidays or which parent will deal with behavioral problems at school. A well-thought parallel parenting plan also makes it easier for divorced parents to move on with their lives after a marriage filled with conflict and arguments.

How Do Children Benefit from Parallel Parenting?

When parents establish a parallel parenting plan, children tend to develop fewer behavioral and emotional problems. They’re more likely to do better in school, develop strong friendships, and have positive relationships with each parent. Parallel parenting also helps children build better self-esteem, and they may be able to avoid feeling as if they were the cause of their parents’ marital problems or the reason for the divorce.

What Should I Include in a Parallel Parenting Plan?

A plan for parallel parenting should include as many specifics as possible. Although you can’t possibly anticipate every event or emergency that could occur with your child or ex-spouse, some elements that you should cover include the start and end of each parent’s visiting time, how and where your child will be exchanged, who is responsible for transporting your child, what happens if one parent misses or cancels their scheduled visit and when each parent has exclusive decision-making power. Some other aspects of parenting to add to your plan include who will take your child to medical and dental appointments, how to handle accidents and injuries, scheduling social, school, and religious activities, and dealing with behavioral issues and daily routines.

If you’re considering a divorce and would like to know more about parallel parenting, you may benefit from speaking with a divorce lawyer. Contact the Law Office of Joanne Kleiner in Jenkintown, Pennsylvania, at (215) 886-1266, or enter your information into our contact form, and an associate will reach out to you to schedule a consultation.