Wednesday, June 18, 2014

"Good" Grandparents Not Taxed Twice

Child support, under Florida law, is calculated based on two main factors:

1)     The net incomes of both parents, and
2)     The number of overnights that each parent has with the child or children

So what happens when a child lives with grandparents instead of the parents. These situations are not as uncommon as one might think. Well, certainly the grandparent is entitled to apply for child support. But whose income is considered for making the calculation of the support amount?

Both the First and Second District Courts of Appeal in Florida have consistently ruled that only the incomes of the parents are used to make the child support calculations, and not the income of the grandparents.

In both DOR v. Channey ,  37 Fla.L. Weekly D1369(1st DCA 2012) and  D.F. v. Department of Revenue ex rel, 736 So.2d 782,784 (Fla. 2d DCA 1999), the courts determined that, notwithstanding that children lives with grandparents, only the two parents’ incomes were to be used to calculate the support.

The rational, in citing to Chapter 409 Florida Statutes, was that “It is…the public policy of this state…that children…be maintained from the resources of their parents…”

Now that’s a novel concept….parents actually being responsible for the support of their children.

Wednesday, June 11, 2014

Father's Day...Not Only A Hallmark Moment

                  Well, here we are, less than a week before “Father’s Day,” and I thought, what a good time for families going through a divorce, or families living in their post-divorce era, to contemplate an appropriate way to celebrate this “Hallmark moment” occasion.

                  Now, for a little history (and yes, I did look this up…I mean I can’t be an expert in everything and, lawyering aside, I was always enamored by history).  Turns out, my “Hallmark moment” remark is not that far from the truth, but the origins of the holiday were purer.  In fact, Father’s Day was an offspring from Mother’s Day that had its roots much earlier in our country’s history dating back to the Civil War era.

                  In the 1860s, a divided West Virginia town proclaimed a “Mother’s Work Days” and joined together mothers of Confederate and Union   soldiers in solidarity.  Presumably the appeal was that even though these mothers’ sons were on opposite sides of the battlefield, they were all mothers and loved their children.  Eventually, the Mother’s Day we celebrate today evolved into a national holiday (but I will save more of that history for next May).

                  Father’s Day didn’t catch on that fast.  As one florist noted, “fathers haven’t the same sentimental appeal that mothers have.” (Okay, keep in mind this was, from all accounts, in the early part of the 20th Century..these mothers may have deserved flowers, but our country didn’t even give them the right to vote).  One of the first “celebrations” however, was held in a West Virginia church on July 5, 1908,(hey, do you see a pattern here…trivia question…what state first celebrated Mother’s Day and Father’s Day…?  I would never have guessed West Virginia…someday when you blurt out this little known fact and impress your friends and family you will thank me) where a preacher’s Sunday sermon memorialized 362 men who died seven months before in a coal mine explosion.  A year later, Sonora Smart Dodd, one of six children raised by a widower in Washington State, tried to establish the equivalent of Mother’s Day for fathers. Two years later, on July 19, 1910, the nation’s first statewide Father’s Day was celebrated. 

                  Nonetheless, apparently it was the fathers who “scoffed at the holiday’s sentimental attempts to domesticate manliness with flowers and gift-giving….often paid for by the father himself.”

                  During the 1920s and 1930s a movement arose attempting to combine Mother’s Day and Father’s Day into a Parents Day.  A radio performer of the day, Robert Spere said that, “both parents should be loved and respected together.” You see where that went…as it was apparently retailers who fought a consolidation of the holidays concerned that it would limit  consumer spending.                 

                  Father’s Day was not officially declared a national holiday until 1972 by President Richard Nixon (though I’m pretty sure we celebrate this in our house long before 1972). Okay, so he was a crook, but  he fathered Father’s Day!

                  But as noted above …Father’s Day did not have its roots in commercialism.  It seems that the nation’s fathers themselves were not interested in a holiday celebrated by gift-giving. That first West Virginia father’s day commemorated the loss of 362 fathers, parents to children who would never again feel a father’s love, or learn the life lessons he could teach.  And that second Father’s Day was promoted by a daughter who, having lost her mother, knew only too well the importance of a father.

                  So moms, yes, I know your children’s father may not be the “top dog” at present, and last month he did nothing for Mother’s Day,  perhaps he was late paying child support (or, heaven forbid, you’re paying it to him and you can’t stand it that you make more money than he does…but that doesn’t make him a bad dad, does it?), and he’s done a bunch of other things that not only do not make him a candidate for “Husband of the Year”(that’s why you’re getting divorced) let alone “Father of the Year,” (and sorry, my guy has both of those awards locked up). But your kids (those little men and women) are made up of equal parts of BOTH OF YOU.


                  So suck it up… Help your kids make it a special day for dad.  That doesn’t mean expensive gifts or any gifts at all.  It could be as simple as a card (hand- made is even better), or baking a cake or some cookies, or helping them plan a picnic (PB&J is fine…it’s the thought that counts).   Will it do anything to smooth relations between the two of you?  Who knows?  But what it will do is make your children feel that THEY have done something special for their father, and since they are 50 percent of him, it will likely make your kids feel special too.  And as parents, isn’t that really what it’s all about?

Wednesday, June 4, 2014

No Trust in Trusts as Largest Divorce Judgment Busts Billionaire’s Attempt to Conceal Assets

        A Geneva, Switzerland court last month handed down “the most expensive divorce in history,”  according to the happy wife’s lawyer.  At least I assume the Russian tycoon’s lawyer is happy since Dmitry Rybolovlev, the former husband, was ordered to hand over an estimated $4.5 billion (4 billion Swiss francs) to his former wife, Elena Rybolovleva, amounting to half of his fortune.

        According to the Guardian newspaper in London, the divorce began in 2008, when the former wife (and currently really rich person) filed for divorce in Switzerland.  Her attorney’s initial actions included winning a freeze on a number of the now only semi-uber rich Rybolovlev’s  assets, including a majority interest in AS Monaco, a French soccer club, a $295,000,000 interest in the Bank of Cyprus and Donald Trump’s former Palm Beach mansion, La Maison de l’Amitie, that he bought for $95 million in 2008. (Maybe he was trying to get away from his wife).

         It appears from the article I read that the sly Mr. Rybolovlev, who made his fortune in post-Soviet Russia in the fertilizer business, transferred a significant amount of his assets to other relatives and into trusts and offshore accounts, allegedly prior to his wife beginning divorce proceedings.

        The Swiss court was apparently not persuaded by the attempts to shield Mr. Rybolovlev’s assets from his wife through these trusts, and threw all of the assets into one very large pot, dividing that stew equally between the parties.  So, if you are contemplating divorce and want to put your trust in a trust to shield assets from your spouse, you may want to think twice.  This guy, with all of his money, should have been really good at trying to protect these assets.  He failed (at this point), and if he can’t win, think about your chances. 

       Not surprisingly, Rybolovlev’s attorney, Tetiana Bersheda, said the decision will be appealed. 

       Of course, there is always the possibility that the parties will settle before the appeal is resolved.  I mean, really, is it going to make a big difference in Elena’s life if she ends up with, say, $2 billion?  In the mean time, I suppose the fees each party’s legal team earns continues to mount as the case goes on… Hmmmmm.

       Oh, and by the way, Elena also won custody of the parties’ 13 year-old daughter.  Glad the child was such a priority.