Navigating the Transfer of Real Estate During a High Asset Divorce

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Real estate transfers are a crucial component in many divorces, and they often play an even bigger role in high-asset divorces. High-asset couples often own multiple pieces of property, with some serving as family or vacation homes and others serving as income streams. For this reason, it’s common for the division of assets to be a time-consuming and intense part of the divorce process.

Learn more about what to expect during real estate transfers and how to get what you need out of your split. For more personalized advice as you work through divorce, call Pence Law Firm at 304-345-7250.

Proper Valuation and Assessment of the Property

Proper valuation of every piece of real estate is crucial when you’re going through a divorce. This is especially true in today’s market, which seems to change dramatically on a near-weekly basis. The market has driven home prices upward, which may influence both parties’ decisions regarding selling or keeping the property. 

Investing in a qualified real estate appraiser is crucial, particularly in high-asset divorces that may involve valuable real estate. If both parties cannot agree on an appraiser, you may want to ask your attorney for recommendations or consider getting insight from two appraisers.

This step also involves considering the debts tied to each piece of property. Unless you own each piece of real estate outright, it’s important to consider the amount of debt tied to each property and how much equity is in each property. Again, the current market makes this even more important. If you bought one or more homes when interest rates were low, requiring one party to refinance into their name alone could lead to an unpleasant surprise.

Understanding Equitable Distribution Laws

Once you know what you’re working with in terms of debt, equity, and home value, you’ll have to talk to your attorney about how West Virginia’s equitable distribution laws may affect how the homes are split. West Virginia, like many other states, is an equitable distribution state. This means that assets should be split in a way that is fair, not necessarily in a way that is equal. Rather than both sides getting 50%, the courts consider a range of factors while deciding how each asset should be split up.

It’s important to identify which pieces of real estate are separate property and which are marital property. Even if a property is considered separate, it could still affect how assets are divided. If one party owns five homes on their own and the other spouse owns nothing on their own, the court would likely find it unfair to give each spouse half of the marital home.

One of the most important factors used in equitable distribution is both parties’ financial and non-financial contributions to the marriage and property. This is especially important in marriages involving one high-earner and one spouse who works as a homemaker or stay-at-home parent. It’s common to think about the working spouse’s financial contributions, but the non-financial contributions are also crucial and carry significant weight.

Negotiating the Division

Before you and your attorney begin negotiating with your ex, you should fully understand what is at stake and which outcomes are possible. If you don’t care about the real estate, you can use that to gain some leverage and fight for a greater share of other assets in exchange for giving up your share of the real estate. If you want the family home but are uninterested in the investment properties, that may also guide your negotiations. Perhaps you want to keep one investment property as a passive stream of income but do not want the baggage associated with the marital home. It all depends on your priorities.

Tax Implications

The good news is that property transfers between spouses during divorce are usually non-taxable. However, owning property does come with some tax benefits, so keep that in mind if you plan on signing away your rights to the family real estate. Additionally, if you get one or more pieces of real estate in the divorce and sell them later on, you could be hit with a capital gains tax.

Facing Divorce? Choose Pence Law Firm for Your Legal Needs

We know that divorce leaves you with more questions than answers, and that’s why we’re here to support you every step of the way. Let us help you navigate your divorce and prepare for a new chapter in life. Schedule a consultation now by calling us at 304-345-7250 or contacting us online.

How Prenuptial Agreements Protect Children in a Second Marriage

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Getting a second chance at true love is exhilarating. However, second marriages also bring a variety of complex financial situations and different family dynamics. When both parties have established themselves in their careers and acquired assets from their previous marriages, it can be difficult to figure out how to protect those assets should something happen. If one or both spouses have children from their previous marriages, it’s even more important to protect separate assets for the benefit of the children.

Wondering if you need a prenuptial agreement? Learn more about how prenuptial agreements can protect your children when you remarry. When you’re ready to discuss your prenup, call Pence Law Firm at 304-345-7250.

Protecting Your Children’s Assets and Inheritances

One of the main reasons you may seek a prenuptial agreement before you remarry is to protect your children’s assets and inheritances. You may think you’re in the clear if you own certain assets before marriage, but it’s not always that easy. 

Separate assets may become marital assets if commingled, making them subject to division. This means that the assets you intended for your children could end up split in a future divorce. Your prenuptial agreement will specify which assets should be considered separate in a divorce, safeguarding everything you’ve built for your children.

Your prenuptial agreement can also specify how your assets should be handled if you pass during the course of your marriage. This is perhaps one of the most important aspects of a prenup in a second marriage. Without a clear division of assets, intestacy rules may leave your new spouse with the lion’s share of your assets, forcing your children to go without.

A clear and legally enforceable prenuptial agreement can also protect your children from the pain of a drawn-out inheritance dispute if you pass away. Without legal protection, it’s possible for your spouse to lay claim to assets you’d intended for your children. Fighting this could cost your children thousands in legal fees.

Clarifying Financial Responsibilities

A strong prenuptial agreement can open a discussion about financial responsibilities and your obligations to each other’s children. While the agreements you come to may not be legally enforceable, these discussions have saved many people from unintentionally entering a second marriage that would not have served them. 

For example, imagine finding out that your spouse-to-be expects you to financially support your children and their children from a previous marriage—even though you earn the same amount of money. Or, think about how stressful it would be to find out that your new spouse wants you to step fully into a parental role, even though it would mean stepping on the toes of the child’s other involved parent.

On the legal side, these conversations can lead to agreements that you can include in your prenup. You may specify how property acquired during the marriage is to be split should you divorce or come to an agreement regarding alimony, which is especially important if there’s a significant earning disparity.

Creating a Safe and Secure Environment for Children

While this isn’t necessarily a legal benefit of a prenuptial agreement, creating a prenup can help you build an environment where your children feel safe and secure. The discussions that lead to a prenuptial agreement also give you plenty of opportunities to discuss the role that both parents will have in the children’s lives, the division of household labor, discipline, and parenting strategies, and communication techniques. Starting a marriage on the right foot like this is beneficial for both the couple and their children, giving everyone the space they need to voice their concerns and advocate for themselves.

Additionally, if your children are older, they may be worried about the financial ramifications of your remarriage. Knowing their inheritances and assets are safe can help them accept your new spouse more readily.

Ready to Draft Your Prenup? Call Pence Law Firm

When you’re ready to start working on your prenuptial agreement, the team at Pence Law Firm is here to help. We will explain your options, how different choices may play out, and our recommendations. Get started now by reaching out online or calling us at 304-345-7250 to set up a consultation with our team of Charleston family law attorneys.

Pet Custody Battles in a Divorce

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Whether your family pet is a dog, cat, or a more unique animal, you consider them family. Getting a pet is a lifelong commitment, even when you face challenges like moving, changing career paths, adding to the family, or divorcing. Unfortunately, disputes over pet ownership can make the already difficult divorce process even harder on everyone involved. If you and your ex are arguing over who will take ownership of your shared pets when you split, learn about your rights and options.

The right legal support can make your divorce easier and less stressful. Let us support you as you prepare for the next step in life. Call Pence Law Firm at 304-345-7250 to set up a consultation now.

Understanding Pet Custody

The topic of pet custody has gained significant traction in recent years, with news agencies sharing stories of ex-spouses trading their pets on alternating weekends or allowing visits. This has led some couples to explore options beyond all-or-nothing agreements, much like they would discuss child custody.

However, this is very different from child custody in several ways. First, it’s usually not legally required. This means that it requires an enormous amount of patience, cooperation, and communication between both parties—and that can be challenging if the marriage ends on bad terms. Additionally, many divorced people “co-parenting” a shared pet often find it difficult to explain the arrangement to new partners. While new partners are likely to understand the need for co-parenting human children, they aren’t always quite as flexible regarding pets.

As a result, some people prefer to go the traditional route and have one spouse completely surrender ownership of the pet to the other.

What the Law Says

Each state has its own laws regarding pet custody. A growing number of states now allow the courts to consider the pet’s best interests when determining custody arrangements—and that may include joint custody, an arrangement that requires the ex-spouses to share ownership and legal responsibility for the pet.

However, West Virginia is not one of those states. In West Virginia, family pets are considered property, much like any other marital asset to be divided. This means that the circumstances of your pet’s adoption or purchase may matter. If one party owned the pet prior to the marriage, they may retain full ownership when they divorce. 

If the pet was purchased or adopted during the marriage, it will likely be considered marital property and be subject to division. Obviously, a pet is far more than just property to a divorcing couple, but just means the court wants to ensure that each party gets a fair share of the pet’s financial value.

Factors Influencing This Issue

While West Virginia does not have a law ordering that pets’ needs be taken into account when determining where they go in a divorce, it’s likely that their needs will be considered. No one wants to put an animal into a situation where they are likely to be mistreated or neglected. Furthermore, if one spouse has put more time and money into the pet than the other, the court will weigh those investments in their decision.

Since West Virginia does not have a law regarding pet custody, don’t expect an arrangement that allows you and your ex-partner to share custody of them. Any arrangement made will be informal and revocable at any time.

Fighting for Your Pet

If your pet is one of your main priorities in your divorce, it is important to talk to an attorney about your next steps. We can help you gather relevant documentation proving that you deserve full pet ownership and can best care for them. We will also lead the way in negotiations, striving to come to an agreement that allows you to keep your pet without leaving it up to the court.

Discuss Your Concerns with the Team at Pence Law Firm

We know divorce can be overwhelming and confusing, but we’re here to help you every step of the way. Set up a consultation with our team of experienced divorce attorneys in Charleston now—just call us at 304-345-7250 to set up a consultation now. Whatever matters to you most in your divorce, we will help you fight for it.

Protecting Intellectual Property Rights During High Asset Divorces

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When you get divorced, some assets are easier to divide than others. While retirement funds, bank accounts, and vehicles are relatively easy to split, those with unclear financial value are much more complex. Enter intellectual property: it is incredibly valuable in the right hands, but valuation is a complicated process. If you own intellectual property and are getting divorced, it is crucial to work with an attorney with experience in this area. Call Pence Law Firm at 304-407-7852 to set up a consultation with our team now.

Identifying Your Intellectual Property Assets

Due to their intangible nature, intellectual property assets are sometimes overlooked during the divorce process. However, for many people, they are arguably the most valuable assets they have. Intellectual property is the result of creativity and ingenuity, and it often serves as a healthy stream of income for entrepreneurs. In order to safeguard your intellectual property, you must first identify your relevant assets. These include:

  • Patents: Patents protect your inventions. If there are any patents granted or pending, they must be addressed in the divorce—it’s likely that they have significant financial value.
  • Copyrights: Copyrighted work included literature, art, music, and software. Copyright exists automatically when a creative work of authorship is fixed, but owners may still take additional legal steps to strengthen the protection granted to their work. Copyrighted work, including books and music, may be a significant source of income for its creator and must be accounted for in the divorce.
  • Trademarks: Brands, logos, and signs associated with brands can all be trademarked. Identifying and securing a fair valuation of trademarks is crucial if your brand has a presence in the market.
  • Trade secrets: Many established businesses rely heavily on trade secrets as a way to set themselves apart from competitors. Confidential business information can devastate a company when it reaches the wrong hands, so you must take steps to protect trade secrets as you navigate a divorce.
  • Licensing agreements: If you license any of your intellectual property to other individuals or companies, the revenue streams and agreements must be counted among your assets.

How to Protect Your Intellectual Property

The earlier you begin working with an attorney with experience in high-asset divorces, the more work you can put into safeguarding your intellectual property. There are various strategies that your attorney may recommend.

Prenuptial and postnuptial agreements are powerful tools when it comes to protecting intellectual property and other assets. While they aren’t an option if you already have a divorce in the works, they should definitely be considered if you are engaged or currently married.

A fair valuation of each intellectual property asset is another important part of securing your property. Valuing intellectual property isn’t like valuing a house or vehicle, so you’ll need to work with the right appraisers for this step.

If your main fear is that your spouse will disclose trade secrets in retaliation for your split, you may want to explore non-disclosure agreements with your attorney. This is a complicated subject, as non-disclosure agreements have recently been challenged repeatedly in court and many courts have chosen not to uphold them. If you go this route, ensure that your agreement is enforceable.

The primary tool available to you at this point is effective negotiation. You know your intellectual property is valuable, and it’s likely your ex does as well. It’s time to consider how important it is to you to keep your IP, what you are willing to give up in order to keep it, and how hard you think your spouse will fight to get a share.

Specialists Who Can Help with This Process

The first person you need on your team is a high-asset divorce attorney. Lawyers with experience in this are usually familiar with intellectual property, its significant value, and what it takes to protect it in a divorce. They will often have connections with other experts that can help you, including forensic accountants, business valuators, financial advisors, and mediators.

Prepare for Your Divorce with the Team at Pence Law Firm

With the right high-value divorce attorney fighting for you, you can get through this challenging time with as little stress as possible. Set up your free consultation with Pence Law Firm now by calling us at 304-407-7852 or contacting us online.

Divorce and Blended Families: Legal Rights and Co-Parenting Challenges

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Navigating life as a co-parent can be hard, and it gets even more complicated once parents remarry and start building their own blended families. Feelings can get hurt, boundaries may get trampled, and misunderstandings are all but guaranteed. It’s important to have a variety of tools you can use to figure out these challenges, but also to know your legal rights and how to protect them.

That’s where we step in to help. The Charleston, West Virginia family lawyers at Pence Law Firm have helped many parents just like you explore their legal options during disputes. Set up a time to talk to our team now by calling us at 304-407-7852.

Legal Rights of Parents

During a divorce and in blended families, understanding the legal rights of parents is crucial. A wide range of factors play a significant role in establishing parental rights.

Divorcing parents must establish custody arrangements that outline where the child will live and the visitation rights of the non-custodial parent. The courts generally recognize two types of custody: physical custody, which determines where the child lives, and legal custody, which specifies who has the right to make decisions about a child’s upbringing. Parents with legal custody can make decisions regarding religion, healthcare, and education.

The courts prioritize the best interests of the child when making custody and visitation decisions. The child’s best interest outweighs all issues of parental rights—if having a relationship with a parent puts a child in danger or harms them, the court will decide in favor of what is best for the child. Factors such as the child’s relationship with each parent, their physical and emotional well-being, and their developmental needs are all weighed when a court makes its decision.

Both custodial and non-custodial parents have rights and responsibilities concerning child support. Non-custodial parents typically contribute financially to the child’s upbringing and expenses, including food, housing, extracurricular activities, clothing, school fees, and other costs. The custodial parent’s contribution is assumed to happen naturally as a result of the child living with them.

Challenges of Co-Parenting

Co-parenting can present unique challenges, and the unfortunate thing is that these challenges are always evolving. Just as you’ve learned how to co-parent as two single parents, you may need to change your strategy when one or both parents remarry. Your techniques may need to change again as your child reaches different stages of development. We’ll explore some of these issues below.

Effective communication and cooperation between parents are crucial for successful co-parenting. Depending on where they are in the healing process, divorced parents may have strained relationships, making it difficult to communicate openly and work together.

Disagreements may arise around parenting decisions, visitation schedules, and other aspects of co-parenting. Figuring out these issues is hard enough with married parents; when you throw divorce into the mix, it’s even harder.

Maintaining consistency in parenting styles and establishing clear boundaries are top priorities for co-parents, but they’re also some of the hardest aspects of this relationship. Differences in values, rules, and expectations between households can lead to confusion for the child.

In blended families, co-parents may face the additional challenge of integrating new partners or step-siblings into the family structure. Ensuring all family members feel included and supported can be complex, especially when there’s jealousy between step-siblings.

Navigating Co-Parenting Disagreements

Resolving disagreements requires a proactive and cooperative approach. Establish open lines of communication with the other parent, and always remind yourselves that you both want what is best for your child.

When there are persistent conflicts, a mediator or counselor can be beneficial. These professionals can facilitate productive discussions, help identify common goals, and provide useful communication strategies.

A comprehensive parenting plan that outlines important aspects of co-parenting sets clear expectations and provides a document that both parties can refer back to when there are issues. However, creating this type of plan requires communication and cooperation, so this may be another area where you want to bring in a mediator.

In consistently difficult co-parenting situations, consulting with a family law attorney can provide valuable guidance. An attorney can help you assert your parental rights.

Need Help with Your Family Law Case? Call Pence Law Firm Today

We understand that co-parenting issues can be deeply personal and significantly affect your quality of life. We’re here to provide professional guidance and support that can help you protect your relationship with your child. Set up a consultation now by calling us at 304-407-7852 or reaching out to our team online.

The Effects of Social Media on Divorce Proceedings

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Social media has become integral to almost every aspect of modern life, including school, work, family, and even divorce. If you are contemplating a divorce or going through one, you may be experiencing high levels of overwhelming emotions and stress.

A study conducted by the Pontifical Catholic University of Chile and Boston University found a negative correlation between the quality of relationships between spouses and their use of social media.

While social media may not necessarily be the sole deciding factor in ending your marriage, your digital life and social media engagement may play an important role in divorce proceedings. Be prepared to consult with experienced divorce attorneys to learn more about the impact of your digital and social media presence on your divorce.

Avoid Social Media Use During Your WV Divorce

Social media can be a great outlet for communicating digitally and expressing creativity. But it has the potential to wreak havoc on a marriage and cause potential harm during divorce proceedings. There are several things you need to avoid when contemplating a divorce – and limiting your social media activity is one of them.

With emotions and tensions running high, you may get tempted to rant about or snub your partner online. You should avoid doing this at all costs. Your profiles (even the private ones) can be used against you as evidence in a family court.

Remove questionable friends and any connections that you are unsure about. Always be mindful that a private post on social media can be easily retrieved and used against you.

Effect of Digital Activity During and After a Divorce

You should take added precautions when online. Make sure the people you call friends are truly looking out for your best interests. An experienced divorce attorney will strongly encourage you not to post anything about your divorce on social media. This includes talking about your children and spouse or drafting an agreement.

Once the divorce is finalized, you should typically be free to post anything you want on your social media accounts. Besides that, if you have children, you may want to limit your online activity and avoid posting anything about your ex-spouse. Always remain cordial during your interactions with the ex-spouse – on digital platforms too.

Social Media Can Be Used as Evidence During a Divorce Proceeding in West Virginia

You and your digital activity will be perused closely by your spouse and their attorney. All aspects of your online presence will be investigated, and they can use anything they find against you. You can save yourself from pursuing difficult defenses by reviewing your past and censoring any current activity on social media.

For instance, liking inappropriate posts or comments, or posting a photo with a new date drinking at the bar could potentially be used against you. You should also consider the state of privacy of all your online accounts. You and your spouse may share mutual friends or the same network. It only takes one friend with less than sincere motives to divulge damaging information.

Further, the other side may request copies of your social media presence, including posts and accounts during the discovery process.

Impact of Social Media on Divorce Settlements and Child Custody

While you may not overtly post your latest salary check or income, there are more subtle ways of flaunting wealth on social media, which may make things difficult for you in a divorce settlement. It will reflect poorly on you if you claim not to be able to afford spousal maintenance or child support yet post photos of a lavish ski resort vacation, for example.

The same holds true if you claim to be out of work yet post photos of your office and coworkers. The news is full of people that believed they could hide income and assets in a divorce but slipped up on social media. The fact is that social media can give people a high level of information about your life.

Social media can also have an impact on child custody matters. It’s all too common for judges to negatively react to posts where a parent can be seen binge drinking when they should have been at home watching the child. The same holds true if you post pictures of your child on dangerous excursions or doing dangerous things.

Telling the mom that you are visiting the zoo, but taking the kids paragliding may not sit well with the child’s mother, and vice versa. Honesty matters.

Get a Skilled and Compassionate Family Law Attorney on Your Side

If you are contemplating a divorce or are already going through one, the experienced family law attorneys at Pence Law Firm, PLLC can lend insight into the various issues that may impact your future and the best course of action to take. Our lawyers will work with a singular goal of achieving what matters to you the most – a successful divorce resolution to your best satisfaction.

Schedule your free and confidential consultation with us today. Call (304) 345-7250 or write to us online.

Is My Spouse Entitled to Half of My Business in The Divorce Settlement?

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You may have built a great business during your marriage with lots of hard work, risk-taking, and professional enterprise. But things can quickly get complicated for the survival of your business if you are going through a divorce. You need to take steps to protect your business assets during this process.

A seasoned family law attorney can help you understand the effects of a divorce on the ownership of your business and the steps to take to protect your company.

Impact of Divorce on Business Ownership in West Virginia

Divorce can place you in a difficult situation if you own a thriving business or where the business has significant assets. You probably don’t want to be in a business partnership with your ex-spouse after the divorce, so this can cause a big dilemma.

Even though West Virginia is not a community property state, you may end up losing part of your business during the division of marital assets. This makes it important to work with an experienced divorce attorney who understands property division laws and can use that knowledge and experience to protect your interests.

Depending on the circumstances, you may be asked to give up half of your business in the form of assets or through liquidation. Liquidation is usually not the first choice of courts, especially if the business is a profit-making enterprise with promising future growth. But if you and your spouse are unable to come to an agreement, this may be the only solution left – unless you can buy out your ex’s share in the business assets.

There are also instances when the spouse who is less interested in the business knowingly does things to sabotage it. You need to put effective plans in place to prevent these things from happening.

The Future of Your Business is at Stake in Your Divorce

Your divorce may not necessarily have an impact on the business if it was started by one spouse and the other has no involvement in it. This is especially true if it was started before the couple was married. But that said, many businesses lose their separate property status during the marriage.

For example, the increase in the value of a business can be considered marital property, and that portion of it may need to be divided between the two spouses. The business may also be considered marital property subject to distribution if the spouse contributed to it either financially or by working in it. A business formed during the course of the marriage can also be considered marital property and subject to distribution.

If it is determined that part or all of your business is marital property, there are other ways of compensating your spouse for their share of it.

Ways to Protect Your Business Ahead of a Divorce

There are ways of protecting your assets so that your business can survive the divorce. These include:

Prenuptial agreement

Prenups are not guaranteed to save your business, but they can be very helpful toward that end. The agreement should be in writing and signed in front of a notary or witnesses. You should understand that you cannot coerce your fiancé to sign the document. This needs to be voluntary or else a court may declare the prenuptial agreement null and void.

Of course, you can only enter into a prenup prior to getting married. If you already missed that window, then you may want to look at the next option.

Postnuptial agreement

Postnuptial agreements are a lot like prenuptial agreements. The only difference is that these are entered into after the marriage. These agreements can cover the same general issues, including those pertaining to your business. The challenge is getting your spouse to sign such an agreement after you are already married. At this point, the business-owning spouse has far less leverage.

Buy-sell agreement

This is another way of protecting your business. Buy-sell agreements are useful in protecting interests when a business is sold or a partner dies. But they can also be useful in the event of a divorce. You can have a good business attorney draft this type of agreement.

Other solutions

You could lose your business after divorce if your spouse was involved, whether as an employee, consultant, advisor, or something else. You may want to start drawing a salary instead of reinvesting all profits back into the business. Your ex may end up getting a healthy chunk of that income if you continue to invest the surplus back into the business.

You should also keep your business and personal expenses separate so that the business remains a separate property. It may also be a good idea to place the business in a trust to reduce your ex’s controlling rights over it in the event of a divorce.

Get a Skilled Family Law Attorney on Your Side

The divorce attorneys at Pence Law Firm, PLLC will employ the right legal strategies to prevent your assets, including your business from getting unfairly divided. Our attorneys have substantial experience helping individuals protect their business interests during a divorce. To set up your free consultation, call us at (304) 345-7250 or reach us online.

 

Is an Inheritance Considered Marital Property in a West Virginia Divorce?

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Filing for a divorce is never an easy decision to make, even if it is the only recourse left under the circumstances. If you or your spouse received an inheritance during the course of the marriage, it adds another complex layer to the division of marital assets in a divorce.

Most couples don’t think about securing their inheritance assets as separate property during marriage until they find themselves in a situation where the marriage is about to end. Divorce-related property division can be difficult and confusing. An experienced divorce attorney in West Virginia can help you understand your rights and provide you with strong legal representation.

Inheritance is Considered Separate Property in WV

Inheritance money and property is usually considered separate in a divorce. In WV, all assets are divided into separate and marital property. Separate property refers to those assets that remain with the spouse owning it. By contrast, marital property is divided between the spouses. Generally, separate property is any property that is received by you or your spouse before the marriage.

Marital property refers to those assets that are obtained during the marriage. But inheritance is an exception. Inherited property is considered separate even when the inherited property is received when you were married. It’s important to understand that even though inheritances start as separate property, they don’t always remain separate.

Inheritance Can Convert to Marital Property

There are certain exceptions when inherited property gets converted to marital property. After inheriting separate property, it can get mixed with marital property. This is also known as commingling. Many spouses unintentionally commingle their inheritance and other assets during the course of the marriage.

For instance, if you inherit money from the will of a family member after they pass away, it will be considered separate property. But if you place it in a joint account where your spouse also keeps their money, it will be regarded as marital property.

Changing the nature of the separate property through transmutation is another possibility. For instance, you may inherit a house or some other property, and add your spouse’s name to the title. In this scenario, the house will be considered marital property.

Any type of inheritance can become commingled, such as jewelry, personal property, and guns among others. Inherited property can easily have a marital component to it under specific circumstances.

For instance, if you put your spouse’s name on the property, it becomes marital property. There are several other issues attached to property division during a divorce. You should speak with a skilled divorce attorney in WV to protect your legal rights.

Impact of Inheritance on a Divorce

Any inheritance you acquire once the divorce is finalized remains with you. It is considered separate property since there is no longer a legal marriage. If during the course of the divorce, your inheritance is deemed to be separate, it will remain with you. This is regardless of the manner in which any remaining property is divided.

If the inheritance is determined to be marital property, it will be distributed fairly and equitably. This means the inheritance will be divided in the same manner as the remainder of your marital estate.

Division of marital property is not always clear-cut. This is why you should have a knowledgeable divorce attorney look out for your best interests.

Determining Spousal Support if There is an Inheritance

Spousal support is a payment made by one spouse to the other for helping them maintain a similar lifestyle as the one they had during the marriage. A spousal support award in West Virginia doesn’t necessarily impact the marital property received by a spouse. However, separate property owned by the spouse may affect the alimony award.

This is because spousal support is based on individual assets and income. If the paying spouse doesn’t earn enough to make fair spousal support payments, the court can order the spouse to use their separate property to make a lump sum payment, for example. By the same token, the court may reduce the alimony payment if the recipient spouse has a large inheritance.

Our Knowledgeable Divorce Lawyers are Here to Give You the Best Legal Advice and Support. Call Now.

Divorce is an emotional situation and tensions can run high. Adding inheritance can make the situation even more difficult. The experienced attorneys at the law firm of Pence Law Firm PLLC will look out for your best interests and advise you on the best way to handle your inheritance.

Schedule your free case review with our lawyers today. Call us at (304) 345-7250 or contact us online.

Divorce And Special Needs Children in West Virginia

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Going through a divorce is never easy, but it can be particularly difficult if you have a child with special needs. Having a special needs child can impact every aspect of your divorce – from marital property division to child custody, spousal support, and child support.

If you are the parent of a special needs child who is planning to file for divorce, you need a divorce lawyer who can provide you with the personalized legal representation you need. At Pence Law Firm PLLC, we have handled several divorce cases involving special needs children over the years and have a deep understanding of the issues that are unique to these types of divorces.

Contact us today to discuss your case with one of our experienced West Virginia divorce lawyers.

Divorce and Special Needs Children – Key Issues to be Considered

Child Custody and Visitation

Caring for a child with special needs is completely different from caring for a normal child. Depending on whether your child has a physical, cognitive, behavioral, developmental, or sensory-related impairment, they might have unique needs that other children might not have. This is something you and your spouse need to keep in mind during child custody and visitation negotiations.

Moreover, as your child grows, their needs might change drastically. You – or your spouse – need to decide whether you have the means (financial and otherwise) to care for your child and make sure their needs are met.

It’s crucial to consult with doctors and mental health professionals to get a clear idea of your child’s current and future needs so that you can come up with an effective parenting plan that does not disrupt your child’s life too much.

It should also be noted that as your child grows, you might have to adjust your parenting plan to accommodate their changing needs. If the child custody and visitation order does not give you the leeway to adjust parental duties and visitation schedules, you have to request the court to modify the order.

Spousal Support

Most special needs children require special medical care, mental health care, medications, and supplements. As a result, the custodial parent might have to spend a substantial amount of money (depending on whether these expenses are covered under the child’s health insurance plan) on a monthly basis. The court might take this factor into consideration while ordering spousal support.

Child Support

Child support payments are meant to be paid only until the child in question turns 18. Once the child reaches the age of 18, the payments stop. This is not the case with special needs children. Depending on the severity of your child’s condition, the court might order you to pay child support even after your child turns 18.

Another important issue to be considered is that your child might qualify for public benefits like social security disability insurance and Medicaid. If you pay child support directly to your child, it might be considered an income and your child might lose their benefits as a result.

You need to consult with a skilled West Virginia divorce and special needs lawyer to figure out a way to support your child without affecting their right to receive state and federal benefits.

Guardianship 

Depending on the nature and severity of your child’s condition, they might need the support of an adult all through their life. Keeping this in mind, you and your spouse should discuss between yourselves and decide who will become the legal guardian of the child once they turn 18.

If you fail to do so, the court will designate a guardian for your child once they turn 18. It could be someone who might not have been your choice for the role of guardian. It is why naming a guardian for your special needs child is so important.

You should also designate a successor guardian so that if you (or your spouse, depending on who the guardian is) become incapacitated or die, the successor you named can become your child’s guardian without requiring the court’s intervention.

Remember – the legal guardian has the right to make medical and financial decisions on behalf of the child. So, make sure you choose someone you can trust to be your successor guardian.

Special Needs Trust

Setting up a special needs trust is one of the best ways to provide for your child’s needs in the future. A special needs trust is relatively easy to manage and can be a source of reliable long-term income for your child.

Two of the most common types of special needs trust that can be set up for the benefit of special needs children and adults are first-party special needs trust and third-party special needs trust.

As mentioned above, any financial assistance provided directly to your child will be considered an income and affect their eligibility for public benefits. So, you should set up the trust in such a way that the funds in it will not be considered an income while determining your child’s eligibility to receive public benefits.

Importance of a Cordial Relationship between the Parents

Special needs children need parental love. The more involved the parents are in their child’s life, the happier the child will be. It’s why you and your ex-spouse should try to maintain a cordial relationship even after divorce.

You should consult with each other while making important decisions on your child’s behalf and find a way to be actively involved in your child’s life – regardless of the differences and disagreements you might have with each other.

Legal Help is Here from Compassionate West Virginia Family Law Attorneys

At Pence Law Firm PLLC, we know that navigating a divorce when you have a special needs child can be extremely stressful. Our legal team has over 100 years of combined experience in handling divorce, child custody, alimony, child support, and guardianship-related cases.

We can handle your case with compassion and sensitivity, negotiate with your spouse’s attorney on your behalf, and go the extra mile to achieve an outcome that is in keeping with your child’s best interests.

Call us today at 304-345-7250 or use our online contact form to schedule a consultation with a West Virginia family law attorney from our firm.

 

Dealing with The Tax Consequences of a High Asset Divorce

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A high net-worth divorce requires a sound legal and financial strategy in order to protect your best interests. The decisions you make at the time of divorce will majorly impact your finances going forward. High-asset divorces come with significant tax implications because of the large financial stakes involved.

The most prudent way to deal with this situation is to hire an experienced divorce attorney in West Virginia that has a thorough understanding of the potential financial and tax implications. The right attorney can provide you with the right advice at every step.

Asset Division in a High Net Worth Divorce in West Virginia

In West Virginia, marital assets are divided based on the doctrine of equitable distribution. This means that assets are not necessarily divided 50 – 50. Instead, the court will divide them in a fair and equitable manner. Several factors come into play that may leave one spouse with a larger share of the property. These are:

  • Contributions made by both spouses towards upkeep and acquisition of marital property.
  • Earning capacity of the spouses.
  • Liabilities and debts of the spouses.
  • Length of marriage.
  • Factors leading to the divorce.

Marital property essentially refers to those that are acquired after marriage. Property acquired before marriage may be termed marital property if the contributions made by either spouse led to a significant increase in its value.

Different types of marital property can be divided in the event of a high net worth divorce, such as business assets, residential and investment properties, vacation homes, bank accounts, overseas accounts and investments, stock market investments, retirement accounts, automobiles, jewelry and antiques, life insurance policies, and trusts among others.

Typical Tax Consequences During a High Asset Divorce in West Virginia

Change of Tax Filing Status

Divorce is likely to change your filing status since you won’t be allowed to file joint returns with your spouse. You need to adjust your withholdings after understanding the implications of the status change as the divorce proceedings move forward.

Possible Capital Gains Taxes on Liquidation of Valuable Assets

Capital gains tax is a tax levied on the profit from the investment or sale of a property. Divorcing couples with several high-value assets and property may decide to liquidate a few of them. You need to be careful while doing this. Asset liquidation may trigger capital gains tax liability. This means you could be taxed on the property acquired through the divorce.

It’s possible that your property is worth more now than what you had initially paid for. It is recommended to transfer the property to the other spouse. This way it will be taxed only when the spouse decides to sell it down the road. Capital gains taxes are calculated on the value increase in the property. These taxes don’t take into account the property’s value during the transfer.

Exemptions Related to Child Tax Credits

You and your spouse need to decide who gets child tax credits and any related exemptions. Only one taxpayer is allowed to claim child tax credits in a specific tax year as per the IRS. You may be able to increase certain breaks by claiming a dependent child. This includes earned income credits, dependent tax credits, or a more favorable filing status.

It can be difficult to determine which spouse gets to claim the children if a couple gets legally separated or divorced. In general, the parent with the primary physical custody gets to claim the child as a dependent. An experienced divorce attorney will usually recommend allowing the higher-income parent to claim the child as a dependent to obtain more tax savings.

Division of Retirement Benefits and Accounts

Tax-advantaged savings accounts, such as IRA and 401K are also divided during a divorce. You may get hit with an early withdrawal penalty if you don’t take the right steps to protect your savings. It’s fundamental to have an accomplished and committed divorce attorney look at your finances if you don’t want to incur penalties while sharing the retirement holdings.

Choose a Results-Driven High Asset Divorce Attorney in West Virginia

The skilled high-net-worth divorce attorneys at the law office of Pence Law Firm can ensure that you have fully considered the tax consequences of your decisions made during the divorce. With our extensive experience in handling complicated divorce and financial issues, we can help you arrive at the best possible resolution that not only protects your financial and tax interests but also allows you to take care of your family’s needs.

To set up your free and confidential consultation, call 304-345-7250 or reach us online.