Family law covers many issues that are related to marriage and divorce. Some of the areas are as follows:
1. Prenuptial Agreements;
2. Divorce;
3. Alimony;
4. Child Support;
5. Child Custody; and,
6. Adoption.
Divorce is the most common aspect of family law. Some couples choose to enter into prenuptial agreements prior to marriage to protect themselves from an unforseen divorce. Prenuptial agreements are most common when it is the parties’ second marriage and/or when one party has children from a prior marriage. A prenuptial agreement may safe harbor some assets and limit spousal rights when the marriage ends in divorce or death. Often there is no prenuptial agreement between the divorcing parties. In such cases, either the parties must agree to the terms of the divorce; or, the Court, alternatively, decides the division of assets and divorce terms after a trial on the merits of the case.
When the parties agree to settlement of the terms of the divorce, this kind of divorce is called an “uncontested divorce.” When there is no agreement between the parties, the divorce is referred to as a “contested divorce.”
When the parties determine that divorce is imminent, there are many benefits to an “uncontested divorce.” In uncontested divorces the parties control the terms of the divorce provided that they are in compliance with Alabama law. Uncontested divorces are generally less expensive than contested divorces due to the bulk of the usual court process, such as discovery and a trial are eliminated. However, uncontested divorces are reached by agreement, which in some cases cannot be accomplished for various reasons, such as, but not limited to, the following: disputes in asset values, child custody issues, and/or emotional factors.
When there is no possibility of reaching an agreement in a divorce situation, a contested divorce is the primary alternative. Contested divorces are generally expensive due to they involve measures needed to prepare for trial, such as initiating and/or responding the divorce action, responding to discovery, and appearing in court. In some cases there is a temporary hearing at the beginning of a divorce case to establish by court order how assets, liabilities, and, as applicable, custody, child support, and visitation are handled until a final decree is issued. Usually it takes several months to prepare a divorce case for trial depending upon the extent of the assets and the allegations made by the parties.
In some instances, a divorce case may begin as a contested divorce but end up settling prior to trial. The parties by reaching an agreement save the costs and emotional toil of a trial. In other words, a divorce case may begin as contested but end in an uncontested manner.
Another aspect of family law is the adoption process. One form of adoption that sometimes results from a divorce and/or a situation when a child is born out of wedlock is a step-parent adoption. In this instance, one parent may be willing for various reasons to allow a step-parent married to the other biological parent to take his or her place via the adoption process. Adoption in these circumstances helps unify the family and gives the child an enhanced sense of security and belonging.
Dorroh & Associates, P.C., handles many aspects of family law. If you have a family law issue you should contact our office to schedule a consultation with a family lawyer in our firm.
Alabama State Bar rules require the following: “No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.”
A lot of times instead of “giving” assets away, the better plan is to use assets to take care of other matters that does not impact the person’s ability to qualify for Medicaid such as paying off unsecured debts (e.g. credit cards) and/or pre-paying for non-countable assets such as funeral expenses or life insurance that does not accumulate cash value.
Do not confuse gifts for Medicaid purposes with the Federal Gift Tax laws. Nothing prevents a person from giving away more than $10,000 (now the amount is actually $14,000) per person per year as some people believe. For Medicaid spend-downs gifts of any amount can be given away subject to the lookback and penalty provisions discussed above. However, if a person gives away more than $14,000 per person per year, then that person MUST file a Form 709 with the Internal Revenue Service stating the amount given away and possibly subjecting the gift to a Gift Tax.
All contracts for personal services (i.e. sitters, nurses, assistants) and rent agreements must be in writing, dated prior to commencement of services or term of lease, and contain specific details of the transaction.
Finally, this article does not represent an endorsement of any particular course of action. Decisions about whether to do Medicaid planning are VERY IMPORTANT and should only be entered into with a full understanding of the potential negative consequences. Before any actions are taken, we strongly encourage you to consult an attorney about your specific situation.
Alabama State Bar rules require the following: “No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.”
