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Divorce and Family Law Office of Joanne Kleiner

Amicable Divorce Attorney

property division

Jun 04, 2024

Why Wealthy Couples Might Opt for a Collaborative Divorce

Wealthy Couples Often Opt for Collaborative Divorce

The collaborative divorce process has gained in popularity in recent years because it can save couples both time and money. High-net-worth spouses tend to favor collaborative divorce because it allows them to resolve sensitive personal matters behind closed doors. Collaborative divorce is an alternative dispute resolution method similar to mediation, but no independent third party is present and both spouses are represented by their own attorneys. If the discussions are unproductive and an understanding cannot be reached at the negotiating table, the spouses must start again from square one and hire new lawyers. This ensures that the spouses and their attorneys work hard to find common ground and reach an agreement that they can all live with.

The History of Collaborative Divorce

The collaborative approach to conflict resolution during divorce was created in 1990 by a Minnesota family law attorney named Stuart Webb. Mr. Webb decided to pioneer a new way of dealing with delicate matters like property division, spousal support and child custody after noticing how the adversarial nature of traditional litigation often damaged his clients emotionally and financially. When a new client contacted Mr. Webb about getting a divorce, he told them that he would be happy to negotiate on their behalf during collaborative sessions but would not represent them in court. This approach proved to be extremely successful, and the collaborative divorce movement was born.

Since Mr. Webb had his epiphany in 1990, the collaborative divorce approach has taken root across the United States and in Canada, Australia and Europe. The process was formalized in 2009 when the Uniform Collaborative Law Act was adopted by the Uniform Law Commission. The ULC, which was founded in 1892, provides lawmakers with drafted legislation that can add clarity and bring stability to important areas of state law. Lawmakers in Pennsylvania adopted the Uniform Collaborative Law Act in 2018.

The Collaborative Divorce Process

Before collaborative divorce sessions begin, both spouses sign a binding agreement that states they will participate in the process and hire new lawyers if an agreement cannot be reached. In traditional negotiations, each spouse lays out their position when talks begin and then does all they can to make as few concessions as possible. In collaborative discussions, spouses voice their reasons for wanting to avoid conflict and then work to find common ground. The attorneys present work together instead of against each other to help their clients get through difficult issues, and experts like therapists, child psychologists, forensic accountants and asset appraisers may be called upon to answer questions and provide advice.

Why Wealthy Couples Often Choose Collaborative Divorce

The adversarial nature of the legal system can drag divorces out and make them messy and expensive, and this is especially true when the spouses involved are wealthy and have much to lose. The collaborative process makes a great deal of sense for high-net-worth spouses because it offers them:

  • Privacy: Courtrooms are public venues, which means anything said or disclosed in them can be discussed freely or published in print or online. Collaborative discussions take place behind closed doors, which means they are private.
  • Reputational protection: The allegations made in a divorce case can be salacious and damaging to the reputations of individuals in the public eye. Uncomfortable revelations about financial matters could be fuel for gossip or give business competitors information they could use to their advantage.
  • Cost savings: Wealthy individuals tend to hire the best divorce lawyers, which means a protracted trial could be quite expensive. Wrapping things up quickly and discreetly could save the spouses a lot of money.
  • Time savings: High-net-worth individuals often have busy schedules and little free time. If they are able to negotiate divorce settlements quickly, they can use the time they save to build their businesses or brands.
  • Control: Taking a divorce case to court ensures that a final decision will be made, but there is no guarantee that either party will be happy with the judge’s decision. Reaching an agreement in a collaborative fashion gives spouses control over their fates. Avoiding court also makes divorce far less traumatic for any children involved.

Is the Collaborative Approach Right for You?

If you are contemplating divorce and would prefer to avoid conflict and confrontation, the collaborative approach could be a good option for you. If you decide to explore this alternative, you should look for a divorce lawyer who understands the process and has a track record of success. Joanne Kleiner is a member of the International Academy of Collaborative Professionals, and she has been practicing family law for 35 years. You can schedule a confidential consultation with Ms. Kleiner at our Jenkintown office by calling (215) 886-1266 or filling out our online form.

Mar 07

The Key Differences Between Separate and Marital Property

How to Classify an Asset for Property Division Purposes

You may believe that you are at risk of losing half your belongings if you leave your spouse. However, this isn’t necessarily the case. Instead, you generally only risk losing a portion of the assets held inside of the marital estate.

What Is the Marital Estate?

Generally speaking, any assets that are acquired during a marriage are considered to be part of the marital estate. This may be true even if only one person’s name is on the deed or title to the asset. For instance, if you buy a home with your spouse, you generally have an ownership interest in that home even if it is held in your spouse’s name.

It’s also worth noting that price appreciation that occurs in a separate asset after marriage becomes official may be part of the marital estate. For instance, let’s say that you own a home that is worth $100,000 on the date of your wedding. Let’s also say that the home is worth $200,000 when your divorce becomes official.

Your spouse will likely be entitled to a portion of the $100,000 in price appreciation that took place while you were married to them. It’s worth noting that they would be responsible for paying capital gains taxes on any profits that they received from selling a joint asset obtained in a divorce settlement.

What Is Commingling?

Commingling can occur in several different ways. For example, if your spouse deposits money into your personal bank account, that asset may now be considered joint property. The same may be true if your spouse used their money to make repairs to your home, car or other property. Separate assets may become joint assets because you failed to keep accurate records of when they were acquired and who paid to obtain or maintain them.

Tips for Retaining Control of Property After Getting Married

The use of a prenuptial agreement may make it easier to exempt property from being distributed to your spouse in a divorce settlement. Such an agreement may stipulate that your business, home or other property is to be classified as separate property. A divorce lawyer may be able to help you draft a prenuptial agreement that is likely to hold up under scrutiny.

If you aren’t able to create such a contract before your wedding takes place, you can draft a postnuptial agreement after your marriage becomes official. Regardless of when this type of agreement is executed, it’s important to allow your spouse to review it with their own attorney. This may help to ensure that the document won’t be invalidated based on a claim that it was signed under duress.

Putting assets into a trust may also be an effective way to retain control of them after a divorce. In most cases, property held in a trust is considered to be kept outside of the marital estate. Of course, your spouse may challenge the validity of the trust, and it’s possible that a judge will nullify it in the event that the document is not structured properly.

Certain Assets Won’t Automatically Become Part of the Marital Estate

If you received an inheritance while you were married, it remains a part of your separate estate. The same is true of anything that you received as a gift from your spouse, a friend or a family member. Of course, these items can become joint property if they are commingled, which is why it may be best to keep them in a separate account or place them in a trust.

If you need the assistance of a divorce lawyer, you’re encouraged to contact the Law Office of Joanne Kleiner at your earliest convenience. You can call our Jenkintown office by dialing (215) 886-1266, or you can fill out and submit the contact form located on our website.

Jul 11

What You Should Expect From a Collaborative Divorce

What the Collaborative Divorce Process Involves

While divorces can be messy and time-consuming, it’s possible to avoid some of the frustrations that come with divorce by obtaining a collaborative one. In 2017, there were more than 787,000 divorces, which equates to a rate of 2.9 for every 1,000 people. If you’re seeking a divorce and you would like to explore the collaborative process, our divorce lawyer can help you understand more about this method and what it entails.

What Is a Collaborative Divorce?

This is a type of divorce that’s designed to eliminate the need to go to court by negotiating many of the issues that the divorcing couple has. This process can involve a series of negotiations in order to come to an agreement that both spouses agree on. Certain courts require the divorcing parties to attempt a collaborative divorce before going through with the litigation phase of the divorce, which occurs in court before a judge.

If the issues that you are having with your spouse are somewhat minimal in nature, this type of divorce may be possible for you and will allow you to avoid the lengthy process that comes with a court divorce. Everything from child custody and child support to property division can be negotiated during collaborative divorce proceedings.

What Are the Advantages of a Collaborative Divorce?

The benefits of obtaining a collaborative divorce as opposed to a contested divorce are numerous, the primary of which is that you will be able to save both time and money. When a divorce goes to court, there’s no way to be certain about when the divorce is going to be finalized. A collaborative divorce is much more straightforward with a timetable that’s dependent mainly on how fast you and your spouse are able to come to an agreement.

These proceedings also take place in an informal setting, which should be able to keep tempers from flaring while discussions are ongoing. It’s also important to understand that a collaborative divorce is one where you and your spouse have a substantial amount of control over the results of the divorce. When a divorce goes to court, the judge will have almost complete say over how your property is divided and what kind of spousal support is allotted. By making an agreement during a collaborative divorce, you may be able to avoid an unfavorable result for either party.

Collaborative Law Divorce Process

The collaborative divorce process begins with the hiring of attorneys who are familiar with this area of the law. Each party will hire their own attorney who understands how to progress through the mediation process. In many cases, the spouses will then speak with their attorneys privately to let them know exactly what they want from the mediation. While it’s possible that compromises may eventually need to be made, having a list of “demands” at the beginning will provide the attorney with a good starting point for the negotiations. To avoid prolonging the negotiation process, many spouses choose to provide their attorneys with lower limits that they are willing to accept. For instance, a spouse can demand weekly child support of $250 but set a lower limit that they are willing to go to of $150.

Both spouses will then meet along with their attorneys, which is a four-way meeting that will occur on a regular basis as negotiations continue. In the event that an agreement is proving to be difficult in some matters, it’s possible that a licensed mediator can be brought in to handle the negotiations. Once an agreement has been reached on all the particulars of a divorce, both spouses and their attorneys will be required to sign an agreement to avoid contesting their settlement in court, which denotes that the attorneys will remove themselves from the case if it continues to litigation despite the agreement. At this time, divorce papers can be filed, which can make for a very straightforward and seamless procedure.

If you’re thinking about starting the divorce process, call our divorce lawyer in Jenkintown today at (215) 886-1266 to schedule your first consultation and to learn more about the services we offer.