divorce

Dealing with health problems during a divorce can make matters complicated.

Divorce is emotionally challenging and complicated time. There are several factors that can further complicate the whole situation. Dealing with health problems in divorce can make matters worse. Serious health issues such as chronic conditions, cancer and other potentially life threatening conditions in divorce can raise all kinds of problems ranging from practical concerns to moral dilemmas. In this article, we will discuss how health issues can impact a divorce.

Ill Health and Divorce

Some people argue that is a spouse’s duty to care for their partner when they are ill, regardless of the problems their relationship is going through. Divorcing an ill spouse can impact their relationships. They may end up alienating friends and family. Many people would think of it as one spouse abandoning another in a time of need. On the other hand, some people are of the opinion that ending a strained marriage can make things less stressful for the sick spouse and allow him/her to focus on recovery.

When encountered with such a situation, it is important to consider all the angles including the legal hurdles you may face. Here are some legalities that you may need to consider.

Health Insurance and Medical Bills

In most divorce cases, money is a major cause of contention, however, it is more so when there are health issues involved. When one spouse depends on the partner’s health insurance, and a divorce would mean that the person no longer has coverage for long term illnesses, and they may lose access to proper medical care.

In some cases, the ailing spouse may qualify for government assistance after divorce. Depending on situation, it is also possible for courts to order the other spouse to continue coverage.

Child Custody

For children, it is extremely difficult to watch their parents go through divorce or deal with a serious illness. However, when they have to deal with both simultaneously it can be extremely traumatizing.

When deciding on child custody, the courts give top priority to the child’s best interest. Usually, this would mean awarding child custody to the parent that can provide best possible care. When a parent is dealing with a serious illness, he/she may not be able to take care of the children.

Life Insurance

Life insurance is an important concern in a divorce particularly when minor children are involved. It is important that the current beneficiaries reflect the changed situation. Benefits from life insurance can be used to provide ongoing care or to pay for education in event of a parent’s death.

Estate Planning

How couples intend to distribute property will most likely change in the wake of divorce. When there are health issues in divorce, estate planning becomes even more crucial. It is also important to determine who has the power of attorney and authority in medical choices.
Dealing with health issues and divorce can be very stressful. It is important that you have an experienced St. Louis divorce lawyer on your side. The lawyer will help you make the right decisions and will protect your interests.

The Betz Law Firm

At The Betz Law Firm we are committed to guiding our clients through the court process with same level of professionalism that we would wish for our own family members. We are aware of the trust our clients place in us with the future of their family and we strive daily to earn it.

Call us today at (314) 801-8488 or fill out our online contact form to request a FREE 30 minute phone consultation.

An impending divorce affects all aspects of a person’s life. An owned or partnered business may also be affected in a divorce.

Usually, it is observed that couples with a clearly drafted Prenuptial Agreement face lesser hassles than those without one. Therefore, entrepreneurs going through a divorce need to have a clear understanding of the effects the divorce may have on their business.

When business is involved, one often sees issues arising out of the following scenarios –

• Both parties involved own and operate the business
• One of the divorcing spouses has operated and owned a business during the marriage
• One of the divorcing spouses has owned and operated a business before the marriage and continued to own it during the marriage
• The demands of spousal or child support require a clear accounting of the self-employed spouse’s income

These issues are typically sorted out in two ways – litigation and mediation.

Litigation

In the process of litigation, issues are taken to court. The divorcing couples usually have to hire one or more litigation experts. Litigation may involve a long, drawn out procedure with court proceedings soliciting the need for witnesses, extensive and expensive reporting and court intervention. Without an experienced St. Louis divorce attorney, the demands of litigation places on the divorcing couple often leads to stress, poor performance at work and more importantly, a formidable environment for conflicts.

Mediation

In mediation, issues are resolved by negotiations. These negotiations are conducted in a respectful and peaceful manner. Mediation can help the divorcing couple save time and money and can also aid in keeping stress at bay and conflict out of the way. Mediation also requires forensic accounting of the value of the business however, this evaluation is conducted by a neutral expert who usually represents both the parties. Mediation definitely has more positives and couples generally have the following options considering their business –

• Buy out – In a ‘buy out’, one of the spouse retains all the business interests and offers to buy out the other spouse’s share, based on an evaluation of the business. Buy outs provide a clear way out minimal conflicts.
• Continuing a joint ownership – Another option divorcing couples have is to continue a joint ownership of the business just as before. In such cases, the couple will have to work out a clear legal partnership or shareholder agreement to avoid future conflicts. While joint ownerships do not work in high-conflict divorces, they provide the ease of continuity, where partners in business do not have to seek other career options post-divorce.
• Selling to a third party – A divorcing couple with a joint business can also opt to sell the business to a third party. At times, when conflicts over ownership rule out all options, selling the business to third part can provide the best way out. Here both spouses have a chance of starting over with a clean slate. Couples should however remember that selling out takes time and could cause new conflicts, and avoid hasty decisions simply to gain closure.

During a divorce, joint financial accounts often become a source of contention between the parties involved.

These financial accounts include jointly owned checking and savings accounts, safety deposit boxes, credit cards, investments and other holdings and equity credit lines. Such accounts get impacted when the account holders decide to go separate ways.

How divorce affects joint accounts

Joint accounts should be dealt with as soon as possible to avoid giving the other party a chance to liquidate the funds in the account. There are a few viable options that divorcing couples may consider.

• Freeze all joint accounts where no transactions are allowed without the authorization of both parties
• Empty all joint accounts into one frozen account where any transactions need authorization from both parties.
• Open an ‘Escrow’ account where a banking officer monitors the account and requires a written authorization for any transaction to be conducted.
• The spouses can divide the amount in the accounts by half on the basis of a mutual agreement, where one spouse takes out half of the funds and leaves the joint account to be managed as an individual account for the other spouse.

Handling joint credit cards

Divorcing couples should write a formal letter via certified mail and retain a proof of receipt to notify them of an impending divorce and requesting to close the account and cancel the cards. Once notified, the creditors should be requested to provide a current statement of the account, and  they should be notified that for any further transactions after the date of the letter they cannot hold the account owner liable. If the creditors request full payment of the outstanding, it is better to comply, or as an alternative have the creditors change the status of the account as inactive, and request them to close the account once the balance is paid.

Equity Credit lines and divorce

An equity credit line is an open ended loan from a bank with marital property as the security. The loan is typically given against the house, wherein the bank can force sale of the property in case payments are defaulted. To find out if any equity credit lines have been opened, one can contact a title insurance company and request a search on one’s property. If any credit lines are found open on the property, one can then contact the institution to freeze the account.

Dealing with Security Margin Accounts

A security margin account is similar to an equity credit line and is available through a stock brokerage house, where ones stock holdings are used as security. One can contact the brokerage firm and request a freeze on all accounts to ensure no transactions or trading can continue on those accounts.

Safety Deposit Box

A safety deposit box is perhaps the most vulnerable in cases of divorce, as institutions usually do not check the marital status of deposit box owners. One can safeguard safety deposit box assets by –

• First, obtaining a restraining order from the court with respect to access to the safety deposit until the final settlement of the divorce is ascertained.
• Second, both spouses can surrender the keys to the banking officer.
• Third, keep a record of the valuables in the deposit box to have proof if anything is emptied out.