divorce lawyer

Division of Business in Divorce – St. Louis Divorce Attorney

February 24, 2017 by David Betz

Division of business in a divorce can be a contentious issue. Missouri is a dual property state and follows an equitable distribution policy. For property division, the Missouri court will first classify assets into marital assets (acquired during or after the marriage, or assets that have increased value due to the marriage), which are divided between the couple, and separate assets (that have been solely acquired before the marriage, inherited bequests, gifts or assets acquired with separate funds) that are not subject to division in a divorce. St. Louis divorce attorney explains this in detail.

Division of business in a Divorce

Dividing a business in a divorce is a complicated procedure. Categorizing assets into marital or separate assets presents several challenges. There are many factors that define the division of business and determination of the business into marital or separate. They are –

Date of marriage and date of commencement, investment or acquisition of shares of a business by one or both spouses.
The source and the number of funds used to fund the business
Amount of money contributed by both spouses in the business
Other non-tangible aspects like the amount of time, interest and work put in by either of the spouses towards the business.

While these factors can help define a business as marital or separate, the division is not determined by these factors only.

Valuating a business

Once the business is defined as marital property and a spouse’s valid interest is determined, the court seeks to determine and calculate the value of the business. This determination is done by using either one of the following three methods –

1. Asset formula – Asset-Liabilities = Value
Assets can be categorized into tangible and non-tangible. Where tangible assets include physical (touchable) assets like inventory, infrastructure, etc., non-tangible (non-physical) assets are accounts receivables, patents, goodwill, etc. However, the asset formula cannot be used for unrecorded assets and liabilities and the method is often used for smaller businesses.

2. Market Approach – The market approach compares the business to other similar businesses that have been sold in the market. The market approach, however, can pose to be a problem if no ‘similar’ sold businesses are available for comparison.

3. Income Approach – The income approach is a commonly used method where formulas and historical data are used to predict cash flow and business profits. In the income approach also calculates future benefits and rate of returns and risks.

Business Evaluation

While the value of small businesses can be evaluated by both the parties and then divided, bigger businesses with complexities need the expertise of an evaluation expert. These experts often qualified as Certified Business Appraiser (CBA) or an Accredited Senior Appraiser (ASA), look into the history, assets, finances, and liabilities of the business in order to evaluate it.

For a business that has a high monetary value, both the parties can seek to appoint different independent experts. After the experts determine the value of the business and testify their respective findings to the court, if the parties end up in litigation, it is up to the judge to give the final decision.

Get in touch with an experienced and competent St. Louis divorce lawyer for more information.

Aug 2, 2019 @ 3:54 pm

What Does “Modifiable” Mean Regarding Missouri Divorces?

January 30, 2017 by David Betz

Most lawsuits are pretty straightforward, you go to court, the case is tried and a judgment is entered. For example, if you have filed a lawsuit to recover compensation from a slip and fall injury on someone’s premises, and the judge orders the property owner to pay you $5000 in damages, then that is pretty much the end of the story. You can not go back to the judge and ask them to increase the amount, nor can the other person try to get the amount changed to $3000. However, in divorce cases, rules are different. St. Louis divorce lawyer clarifies that some types of judgments can be changed, and it is important to understand which ones can be changed and under what circumstances.

Understanding the term “modifiable” divorce in Missouri

Here, the term “modifiable” means that the court that has entered the judgment has the authority to change that term in the future under appropriate circumstances. However, courts do not modify judgments on their own. One of the parties has to make a request to the court to make the change. This change should only be based upon a change in circumstances. St. Louis divorce lawyer explains that certain divorce terms are always modifiable, while others may or may not be.

Child support: These judgments are always modifiable because courts have to protect the child’s best interests. No one, including the judge and the parents, has the ability to predict the changes that can occur in the family’s future. So, the court needs the ability to review the family’s situation from time to time and ensure that the child is financially stable. It’s important to note that child support can be modified if there is a continuing and substantial change of circumstances.

Alimony or maintenance: Alimony judgments can be modifiable or non-modifiable depending upon how the terms are written. If the judgment states that alimony is non-modifiable, the court no longer has the ability to change the judgment, regardless of the circumstances. However, if the judgment is termed modifiable, this means the court has the ability to modify the maintenance amount if there has been a continuing and substantial change in circumstances.

Child Custody: In Missouri, child custody is set using a parenting plan. It is always a modifiable judgment for the same reason as child support is: the court has to protect the best interests of the child. The judgment can be modified in case there has been a change in circumstances. The change has to be significant as in the case of child support. The court can then decide if a change in the parenting plan is in the best interest of the child.

Divorce and the surrounding legalities are extremely complex for anyone to navigate on their own. So, it’s important to have a competent and experienced St. Louis divorce lawyer on your side, who can protect your best interests.

Jun 24, 2019 @ 5:09 pm

St. Louis Divorce and Child Custody

January 20, 2017 by David Betz

Divorce is a complex legal process, which involves issues such as spousal support, property division, and most importantly, child custody.

Child custody also happens to be the most emotionally challenging part of divorce for both the parents as well as the children.

All U.S. states have adopted the Uniform Child Custody Jurisdiction and Enforcement Act, which mandates that the custody orders are followed and enforced no matter which state the child resides in. This discourages interstate kidnapping of a child by a non-custodial parent.

St. Louis divorce lawyer explains that like all other states, Missouri child custody laws also consider the best interests of the child when deciding custody.

According to Missouri Revised Statutes, Sections 452.375, “[i]f the parents cannot reach a mutual agreement concerning custody of the children, the court shall determine custody based on the best interests of the child factors.”

There are several factors that are taken into account when determining child custody. These include:

The parenting plan proposed for the child by each parent
Child’s wishes, provided he/she is mature enough to make such claims. The child’s decision may or not be in his/her best interests.
The parents’ ability and willingness to provide for the child’s needs
Child’s emotional needs with regards to maintaining a close relationship with each parent
Each parent’s willingness to encourage the child to have a meaningful relationship with the other parent
Any relocation plans
The child’s adjustment to his/her home, school, and community
Any history of neglect or abuse
The physical and mental well-being of each of the parents

Missouri laws prohibit any partiality based on the parent’s financial status or child’s gender.

According to the Missouri child custody law, there are five types of child custody arrangements that are considered before reaching a decision. These child custody arrangements include:

Joint legal and physical custody to both parents
Sole physical custody to one parent, joint legal custody to both parents
Sole legal custody to one parent, joint physical custody to both parents
Sole legal and physical custody to one of the parents
Visitation or custody by third parties

The last arrangement also includes grandparent visitation. Missouri law says that:

“A court may award visitation rights if the child’s parents have filed for divorce, one parent is deceased and the other parent has unreasonably denied visitation to the grandparent, or when a parent or parents unreasonably deny visitation to a grandparent for more than 90 days.”

Missouri law requires divorcing parents with minor children to go through a mandatory parenting class before granting them a divorce. This is intended to help parents and children deal with the trauma associated with separation and divorce. These classes are available online as well.

Divorce and child custody are very sensitive issues. You need a highly competent and experienced St. Louis divorce lawyer on your side, who can work to protect your best interests and that of your child.

Aug 2, 2019 @ 3:39 pm

Award of Spousal Support in Missouri Divorces – St. Louis Divorce Attorney

January 15, 2017 by David Betz

Spousal Support or Spousal Maintenance, also known as alimony, is a payment made by one spouse to their former spouse after the divorce.

In Missouri, there is no set method to calculate Spousal Support. Whether or not you will be paying or receiving spousal maintenance, the amount is usually decided on a case-to-case basis.

Typically, during your initial consultation with a St. Louis divorce attorney, he/she will evaluate your circumstances and determine if one spouse will be required to pay spousal maintenance to the other spouse after completion of the divorce process. In this post, we will discuss the factors that your lawyer and judge will consider in making the maintenance evaluation.

Missouri Spousal Support Threshold Test

In Missouri, a two-part threshold test is used for evaluation.

Step 1: Is there sufficient property, allocated to a spouse to meet his/her reasonable needs?

Step 2: Is the spouse capable of meeting his/her reasonable needs through appropriate employment, or is an employable spouse the custodian for a child whose circumstances are not appropriate for the spouse to seek employment?

Factors considered in determining the length and amount of spousal support

If the abovementioned threshold is not met, it is unlikely that spousal maintenance will be awarded. However, if the threshold is met, the court will consider other factors to decide the length and amount of the spousal maintenance award. These factors include:

The abovementioned threshold factors will be considered along with a separate award of child support
The comparative earning capacity of both spouses
The amount of time that the spouse requires to get adequate training to find a job to meet his/her needs
The length of the marriage
The standard of living of both parties
The age, physical and emotional condition of the spouse seeking spousal maintenance
The ability of the other spouse to pay maintenance considering his/her ability to meet their own reasonable needs
The conduct of both parties during the marriage

How does a judge decide on the award?

The family law judge has the discretion to consider any relevant factor including, but not limited to the above factors. Also, there is no specific method to determine the amount of the spousal maintenance and no legally defined amount for the judge to consider. The judge evaluates the case based on the factors that he/she believes are important to the specific case.

You will be required to submit a financial disclosure that details your monthly expenses, monthly income, and financial assets and liabilities. Both spouses will be required to file this financial disclosure. These documents are often used to make an early evaluation of the need to request spousal maintenance and the ability of the other spouse to pay maintenance. These filings need to completed thoroughly and accurately.

It is important to have a competent and qualified St. Louis divorce lawyer on your side, who can help present your case so that your interests are protected.

Aug 2, 2019 @ 3:14 pm

Settle Financial Matters and Alimony Before a Divorce – St. Louis Family Law

January 10, 2017 by David Betz

When a couple decides to part ways, both parties are often eager to complete the proceedings as soon as possible. However, it’s important that the couple seeking legal separation should settle financial matters, particularly those pertaining to alimony and other support issues before finalizing the divorce.

Our St. Louis Family Law Attorney explains that getting a divorce while there are financial matters to decide is known as “bifurcation.” Bifurcation can cause a number of different problems, especially if one of the spouses dies or remarries before all issues are settled. In this post, we will discuss why it is important to decide the financial matters before finalizing the divorce.

Decide on Finances and Alimony before Finalizing a Divorce

While most couples decide upon the alimony before finalizing a divorce, they often do not consider what would happen if the spouse who is in charge of paying support dies first, and leaves the surviving ex-spouse in financial trouble.

Each state has different laws governing divorce and associated financial matters, and an experienced St. Louis divorce lawyer can provide detailed legal counsel.

But generally speaking, when a spouse is paying alimony, the legal system can require the person to provide security to protect the ex-spouse in case the paying spouse dies before the receiving spouse. This can be done in two ways: (1) by putting up money or property, or (2) by purchasing a life insurance policy with the ex-spouse as a beneficiary. This ensures that in the event of paying spouse’s death, the receiving spouse remains financially secure.

The key point to bear in mind is these details should be decided upon before the divorce is finalized.

What if an ex-spouse remarries

If one of the spouses is keen to remarry, it becomes even more important to resolve all financial matters beforehand. It may save a lot of time, effort, and possible complications in the future.

If there is a life insurance policy that provides backup for alimony, the receiving spouse should make sure that he/she understands the terms of the insurance policy and is named the beneficiary of the policy for as long as he/she is entitled to receive alimony. This ensures that remarriage does not affect alimony. It also gives peace of mind to both the parties, who no longer have to struggle with any financial contention later on.

It’s extremely important to settle all financial issues, such as alimony, beforehand as it can prove beneficial in the long term.

If you live in St. Louis and want to protect your legal and financial interests, you should seek help from an experienced St. Louis Divorce Attorney. A lawyer that specializes in family law and divorce can offer valuable guidance through all legal proceedings and will ensure that your interests are protected.

Jun 24, 2019 @ 5:52 pm

St. Louis Divorce Lawyer – What is the Average Cost of a Divorce?

January 3, 2017 by David Betz

A common question that couples seeking divorce ask is “what will be the average cost of the divorce?”

Truth be told, there is no “average cost of divorce.” However, there are many factors that affect the cost of getting a divorce. There have been cases with little money and a small number of assets involved, where the cost of the divorce has been high, on the other hand, there have also been cases where couples with huge assets and money have had minimal divorce expenses.

The most important and obvious factors that affect the cost of a divorce are the communication between the couple, the ability to come down to a consensus, choice of attorney, etc. While most costs can be controlled, there are also some that are inevitable. In this article, we will explain some of these costs.

Costs of a Divorce

Here are a few important things to know, understand and work upon to keep costs at a minimum:

Couples should always be well prepared for all meetings with their attorneys.
As a client, an individual seeking divorce should always be available for his / her attorney. Prompt response to phone calls and messages seeking information will help in reducing costs.
Some costs can be out of the control of the client. For example, one cannot control who the spouse chooses for representation. Costs are also dependent on how fast the spouse’s lawyer responds, what demands does the spouse and attorney put forth, how often motions are filed to get the necessary information from the other party, etc.
Divorce is a stressful process and clients often need counseling for the distress they undergo during the divorce. Counseling and emotional therapy can increase the costs of divorce.
Communication between both parties is also another factor that affects cost. The ability of both spouses to communicate well and resolve divorce-related issues like asset division, child custody, spousal support, etc. will decrease costs in terms of attorney fees, court fees.
Division of finances, assets, and property all affect the costs of divorce. For example, couples with significant assets, complicated financial situations, hidden or dissipated assets, etc. have higher costs of divorce. Such complications often require forensic accounting, asset appraisals, etc. are expensive processes that will be required. It is usually observed that the more assets the couple will have differences over, the costs will simultaneously increase.
Factors such as child custody and parenting plans also affect costs. It is often seen that in contested divorces, where parents cannot come to terms on child custody and formulate a clear parenting plan, the court appoints a “guardian ad litem”. This appointment is of an independent lawyer who represents the children’s interests. The ‘guardian ad litem’ is appointed in cases of child abuse or neglect. The fees for this lawyer are borne by both the spouses and can add significant costs.

The best solution, however, to reduce divorce costs is to ensure effective communication between both parties. It is the responsibility of both parties to resolve all divorce-related issues without any delay and have the ability to come to terms quickly. These will reduce the costs of divorce significantly. It is also important that you choose your St. Louis divorce lawyer wisely as it can impact the costs significantly and make the whole process a lot smoother.

The Betz Law Firm

The attorneys at The Betz Law Firm have effectively represented hundreds of clients in their divorce, whether it be in St. Louis City, St. Louis County, Jefferson County, St. Charles County, or even counties farther afield. Our knowledge of the law and the judges helps us achieve the results our clients are looking for.

Call us today at (314) 801-8488 or fill out our online contact form.

Jun 24, 2019 @ 5:11 pm