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Concealed marital property in a high-asset divorce

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Our location at Laughlin Law Coquitlam

On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Wednesday, February 8, 2017.

In many British Columbia marriages, one spouse would be in charge of the finances, leaving the other spouse vulnerable in the event of a divorce. The lack of financial skills and a comprehensive knowledge of the marital assets — especially in a high-asset divorce — can leave one spouse ignorant of the other’s attempts to hide assets. People in this position may want to question and examine the property declared by their soon-to-be ex.

Common ways for hiding assets include transferring mutual funds into personal accounts, or to friends who would pay it back after the divorce is finalized. It is possible to shield assets by the overpaying of income tax and arranging with an employer to postpone a promotion, salary raise or bonus. Payment of expected commissions can be delayed in a similar way. Another trick is to frequently withdraw small amounts of cash while grocery shopping because cash withdrawn at the checkout will show as part of the purchases on the receipt.

If the deceptive spouse owns a business, the opportunities to hide assets are even more. Some hold back on issuing invoices to clients, thereby creating false cash flow problems. It is also easy to record false expenses by pre-paying vendors, adding fake employees to the payroll and more. Augmenting business expenses by purchasing costly pieces of art or paying for exotic holiday packages can also reduce the value of marital assets.

It may be comforting for divorcing spouses to know that a seasoned British Columbia divorce lawyer will likely know where to look for concealed marital property. Experienced legal counsel will assist a client in gathering the necessary financial information. A lawyer with substantial work in commercial law will have the skills to understand multifaceted financial portfolios and know how to deal with business valuations and other intricacies of a high-asset divorce.

Source: aol.com, “10 Easy Ways to Hide Assets From Your Spouse“, Robert Pagliarini, Accessed on Feb. 3, 2017

Attorneys Port Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

High-asset divorce need not cause financial ruin

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Wednesday, December 28, 2016.

One of the primary concerns of people in British Columbia who are considering divorce may be the cost. Contested divorces — especially a high-asset divorce — can cost tens of thousands of dollars and in some cases even hundreds of thousands. However, some steps can be taken to limit the costs — before, during and after the filing.

Before filing for a divorce, each spouse may want to prepare him or herself financially by educating themselves about all their debts and assets. Then, they should draft a budget based on the money currently spent on all expenses, followed by a post-divorce budget. This must include rent, vehicle costs, living expenses, child-care charges and — where applicable — spousal and child support. Not only assets are split in the property division process, but also debts, so attention should be paid as to how that will be divided. Discussing the divorce options with an experienced divorce lawyer can further help to identify ways to save time and money.

It may be best to try to check emotions during this time and avoid any actions that involve revenge, payback or settling of scores. Couples who can communicate and compromise to reach mutual agreements can bring about significant savings. During negotiations, it is important to understand how the court will determine child support and an estimate of the amount the court will order. Also, remember that spousal support is not guaranteed and settling that in negotiations may be wise. Each party may benefit from adding professionals, such as tax and property advisors, to their respective support teams to provide advice on tax implications and more.

During all the preparation and negotiation proceedings, each spouse’s legal counsel can provide valuable support. The time and money involved in a high-asset divorce depend largely on the ability of the parties to resolve contentious issues. However, with the professional guidance of a seasoned British Columbia divorce lawyer, a divorce that fits the family dynamics while being financially fair at the same time can prevent either party from going broke in divorce.

Source: business.financialpost.com, “Divorce is never easy and your heart may be broken, but that doesn’t mean your wallet needs to be too“, Melissa Leong, Accessed on Dec. 24, 2016

Coquitlam, British Columbia Lawyers

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca/

High-asset divorce: Hidden assets can be discovered

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Monday, December 5, 2016.

During the process of divorce in British Columbia, each spouse must provide full disclosure of all his or her assets. Sometimes, one spouse may try to slant the property division for his or her personal benefit by hiding assets. Although this is not a phenomenon limited to a high-asset divorce, the many levels of investments held by affluent couples may make it easier to leave some assets undisclosed.

With the appropriate legal assistance, a British Columbia spouse can ensure his or her spouse does not hide any assets. The spouse who handled the family finances and taxes may have an advantage when it comes to identifying assets for property division. Both spouses are expected to provide asset declarations voluntarily, but it is advisable to study such a document carefully. If any omissions of errors are present, the suspecting spouse can demand copies of financial records for which court-issued subpoenas may be required.

A spouse also has the right to serve an ex with interrogatories — written questions that require truthful answers — within a specified time. He or she may personally inspect assets or use the services of professional appraisers if values of assets are disputed. In addition to being required to answer questions in writing, an ex can be compelled to give sworn testimony. Called a deposition, this testimony is typically admissible in court.

If a spouse suspects an ex of hiding assets, the most appropriate step may be to consult with an experienced divorce lawyer. The attorney will know which discovery tools are appropriate for achieving a fair outcome. With a seasoned lawyer’s guidance, a divorcing spouse may receive a fair share of property — regardless of whether it is a high-asset divorce or not.

Source: FindLaw, “Legal How-To: Finding Assets in a Divorce Case“, Daniel Taylor, Accessed on Dec. 2, 2016

Lawyer in Coquitlam, British Columbia

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Property division in British Columbia must follow certain rules

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Friday, October 28, 2016.

Divorcing your spouse means that you will have to divide your property based on the laws that pertain to your case. Some property, such as the marital home, are always divided. Other property, such as certain inheritances, aren’t subject to the property division property.

In British Columbia, the property division process sets some specific property as separate property that doesn’t have to be divided. This includes money that is received or is payable through an insurance policy, a settlement or award that is compensation for an injury, inheritances to one spouse, a property that was owned before the relationship began and property that is in a discretionary trust for one spouse.

It is also possible that gifts would be considered separate property if those gifts were specifically given to one spouse. In many cases, how the property is handled once it is given to a spouse matters. If the property is held with marital property or if it is cared for by marital funds, it might be considered marital property during the property division process.

No matter how property is obtained or when it is obtained, the presence of a valid marriage contract means that the property would be divided how the contract notes it should be divided.

As you can imagine, the dividing property can be complex in some cases. If you and your spouse have considerable assets, this might be the case. It is crucial that you have a complete understanding of how different assets and liabilities should be handled in your case so that you can know what decisions you need to make.

Source: FindLaw Canada, “Gifts, inheritances and other excluded properties,” Miriam Yosowich, accessed Oct. 28, 2016

Law Firm Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca

Can a marriage contract address child support?

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Friday, July 8, 2016.

A marriage contract is a document that both parties sign before getting married, and it can address many topics, such as conduct within the marriage, what is to be done with assets already owned, and what happens with assets gained during the marriage. In most cases, the focus of the contract is on the financial side of things, as people want to protect their own interests so that a court ruling doesn’t force them to turn over assets in the event of a divorce.

One of the biggest financial impacts of a divorce, though, is child support. It is typically not legal to put any provisions for this in a marriage contract. The spouse expecting to get custody and payments cannot stipulate how much will be paid, and the other spouse cannot say that he or she will pay nothing.

Instead, this still has to be decided by the court. Other assets can be divided according to the contract.

The reasoning here is that the child is not actually participating in the signing of this contract at the time of marriage, and the child is the one mainly impacted by these payments. The parent does not have the right to sign away money that was intended for that child, as it would not be fair and could be detrimental to the child’s health and well-being. Any contracts containing such language may be thrown out, or that portion at least may not be used.

When setting up a marriage contract to protect assets, always make sure you know what it can legally cover and what has to be left up to the court in British Columbia.

Source: Advisor.ca, “Marriage Contracts Protect Assets,” Margaret O’Sullivan, accessed July 08, 2016

Divorce Lawyers Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca/

Post-divorce planning: Spousal support and settlement payments

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorceon Thursday, May 19, 2016.

High asset divorces often involve substantial settlements as well as long-term spousal support. It’s normal to get caught up in how much you will be paying or receiving, but there are other important details that you should be sure you understand before you agree to anything.

If you are the party receiving a bulk payment or spousal support payments as part of the divorce settlement, it’s important to understand how this money will affect your financial future. Planning is critical. Questions to ask your lawyer include when you should receive any bulk payments, such as your share of your ex’s retirement account, how long the spousal support will continue and what to do if your spouse doesn’t make these payments as he or she has been ordered to do.

For those making the payments, understanding the timing is also crucial. In some cases, you may need to make a bulk payment to your ex as soon as just a few weeks after the divorce. Some people think that their ex’s share of the retirement assets doesn’t get paid until the person actually retires, but this isn’t usually true. Knowing when the payments are due is just as important as knowing how much they will be.

Sometimes people get caught up in the fighting part of the divorce and don’t adequately prepare for what life will look like when the papers are finally signed. If you have questions about what your settlement means for your future or what to do if you think a proposed settlement is unfair, we can help.

Lawyers Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

High-asset divorce and property division

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Thursday, April 7, 2016.

While the basic process of divvying up the assets and debts is the same no matter how much the assets are worth, things do get more complicated when you start dealing with high-value assets. In some cases, you may not even be aware of all of the assets that qualify under the Family Law Act. This is one reason why it is so important to discuss your case with a lawyer in British Columbia who can help you understand how the property division process will take place and how to make sure there is full financial disclosure.

The first step is always for both parties to make a list of all of the assets. For most people, this includes bank accounts, real estate holdings and any automobiles. However, those going through a high-asset divorce may also need to consider things like investment accounts, antiques, and any businesses either party owns.

The next step is to discern the value of each of these assets. It’s important to understand that an asset is valued based on the date the couple separates or is no longer living together. This is important to keep the divorce proceedings moving along. If the property division had to be restarted every time a property value fluctuated with the real estate market, for instance, it would make coming to a settlement very difficult.

Once the total value of the couple’s property has been calculated, any debts are subtracted off this amount. The resulting figure is divided in two and this would be the amount each party would get. However, this still depends on several factors. Often, a settlement will include payments from one party to the other, called equalization payments, and a lawyer can provide more information on this.

Source: FindLaw, “Calculating family and equalization payments,” Casey Watson, accessed April 07, 2016

Divorce Lawyer Coquitlam

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370
www.laughlinlaw.ca/

January continues as divorce month

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Thursday, February 4, 2016.

In the family law field, January is known as Divorce Month because it is one where attorneys often see a sudden influx of people wanting to know more about the legal and financial ramifications of ending their marriages. While many of these divorces won’t actually be finalized until months later, it’s important to gather as much information as possible so you can be prepared should you make the decision to move forward.

One possible reason for this increase is the normal self-reflection and reevaluation of life goals that happens around the first of the year. Many people are taking stock of their lives, relationships, current obstacles and where they hope to be in the next five to 10 years. This thought process often leads people to reconsider whether they are truly happy and fulfilled in their marriages or if they are just going through the motions.

The beginning of the year is also the calm after the storm and stress of the holiday season, and many couples find themselves dealing with unmet expectations and frustrations from the months before. However, a divorce should never be an impulse decision. It’s important to really think through your situation and discuss the particulars with a family law attorney who can provide some legal guidance and outside perspective.

It’s important to be fully informed of the possible options and outcomes. If you do decide to move forward and file for divorce, your attorney can help you understand what paperwork you will need and what particular issues you may be facing, whether they be child custody, complex property division or alimony.

Source: Huffington Post Canada, “Divorce Month: Why Marriages End In January,” Nathalie Boutet, Jan. 22, 2016

Coquitlam BC Lawyer

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Billionaire’s divorce finally settled

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorceon Wednesday, November 4, 2015.

High-asset divorces come with their own unique set of issues. Because of the world’s fascination with the wealthy elite, it’s also common for these divorces to play out in the public eye at least to some degree. This can mean that the couple’s private marital issues and their financial standing end up being discussed by the public at large. Such was true for one Russian couple who reportedly just finalized what was known as the “most expensive divorce in history.”

The couple’s divorce took six years to come to an end, and the final settlement remained undisclosed as the time of reports. However, the long legal battle caught the attention of the international media as people across the globe watched to see what would happen. According to reports, the Russian billionaire involved in the divorce has a net worth of $8.5 billion and is the 165th richest person in the world, as of 2015.

According to reports, the divorce was a contentious one, starting with the wife’s filing. The man was reportedly notified of the divorce petition at a New Year’s party after it was brought to his attention that his assets had been frozen. The man’s wife alleged that infidelity played a role in her decision to file for divorce. The divorce proceedings went on for years and were heard in several different districts. The wife was originally awarded $4.5 billion in the divorce settlement, but this was reduced to just less than $600 million after the husband decided to bring it to an appeals court.

In high-asset divorce, appeals are a common occurrence, and, as shown here, are important not to be discounted. Understanding how settlement decisions are made in these cases and who has the right to appeal is an important part of protecting your financial interests.

Source: Forbes, “The Saga Of Russian Billionaire Dmitry Rybolovlev’s $4.5B Divorce Comes To An End,” Agustino Fontevecchia, Oct. 20, 2015

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370

Ben Affleck and Jennifer Garner attend divorce counseling

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On behalf of Laughlin & Company Lawyers Mediators posted in High-Asset Divorce on Thursday, September 24, 2015.

Ben Affleck and Jennifer Garner are one of many celebrity couples to announce they are going their separate ways this summer. The couple has made headlines for their continuing commitment to co-parenting their children and have even gone so far as to take the children on joint outings as a family.

The couple was recently photographed coming out of a counselling centre, and this led to some media speculation that they were attempting to reconcile. However, reports later surfaced that the parents made a decision to attend counseling through their divorce process to help smooth the transition for the children and work on keeping their personal issues out of their parenting relationship.

While it may initially seem odd to go to counseling with your ex after the decision to divorce has been made, it can be helpful in many ways. Divorce brings up many issues, and no matter how prepared you think you are to deal with your ex as a coparent and keep your relationship civil, it’s very common for situations to get contentious as the parties move forward with their lives, establishing separate residences, executing the visitation schedule and even dating other people.

Keeping the lines of communication open with your ex is crucial to keeping a divorce centered on the two most important aspects: property division and the best interests of any children involved. Attending counseling as a couple or as a family if the children are not too young can help give everyone a safe space to express their feelings and work through budding issues before they become legal battles.

Source: International Business Times, “Ben Affleck-Jennifer Garner Visit Marriage Counseling Center To Make Divorce ‘As Easy As Possible’,” Minyvonne Burke, Sep. 04, 2015

Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
(604) 945-4370