How Much Child Support Can You Expect to Pay In Your New Jersey Divorce?

Divorced parents in New Jersey are legally obligated to financially support their children until emancipation.   A child is most commonly deemed emancipated upon age 19 or completion of a full-time college education.

So if you’re separated or divorcing from your spouse, how much child support can you expect to pay in New Jersey?

The amount of child support is generally calculated once you and your spouse agree on a custody and parenting time arrangement.  The arrangement should outline at a minimum (1) the number of overnights the children will spend with each parent and (2) which parent will have primary residential custody the children.

So generally, if you’re the “noncustodial parent,” you could expect to pay child support for your children to your former spouse.

What is your child support amount based on?

The state of New Jersey developed the “New Jersey Child Support Guidelines” to ensure that divorced parents share the financial and healthcare responsibilities of raising their children.

What is included as “income” for calculating child support?

Each parent’s total income from all sources is used. Total income includes a variety of sources, including employment income, overtime, bonuses, tips, and commissions.

Taxes and other specific deductions are then subtracted from each parent’s total income.  Both parents’ net income is then added together.  The child support guidelines use the parents’ combined net income to calculate the amount of child support to be paid based on the number of children.  Each parent contributes to the child support amount in proportion to their respective percentage share of combined net parental income.

How do your current child expenses affect your child support amount?

• Parenting Time

The number of overnights that each parent spends with the children is converted to a percentage.  This percentage is then applied to each parent’s proportional share of the above child support amount.

This is because generally, the more overnight parenting time a parent spends with the children, the greater the amount of expenses that parent is presumed to be paying for the children’s expenses while the children are with the parent.

• Medical Insurance Premium

Whichever parent provides the health insurance for the children is generally entitled to a “credit” for how much that parent pays for the child’s share of the health insurance premium.

How is the child support amount calculated for higher-income families?

For parents whose combined net income exceeds the Guidelines threshold of $187,200 per year ($3,600 per week), New Jersey law requires that child support be calculated to account for the greater financial resources available and the higher expenditures typically made in higher-income families.

Therefore, for such higher-income families, a base child support amount is determined using the Guidelines formula.  That base amount is then supplemented with an additional support amount based on the remaining family income, the children’s needs, and certain other statutory factors.  Private elementary or high school and extracurricular expenses are examples of such expenses.

Which child expenses does your child support payment cover?

Child support payments cover specific types of expenses incurred by the primary residential parent.  To found out which expenses are covered by child support, take a look at this post.

How can you calculate your child support amount under the New Jersey Child Support Guidelines?

Your lawyer can calculate the appropriate child support amount by using specialized software available to attorneys and court staff.  Or you can access a New Jersey child support calculator offered on the New Jersey child support website here:

But calculating your child support amount is typically not straightforward.  Essentially all components that go into calculating your child support  – which might include income for you and/or your spouse, parenting time, health insurance, includable child expenses, or daycare costs – are subject to interpretation.  Therefore, it’s your lawyer’s job to advise you and advocate on your behalf when negotiating with your spouse or the other lawyer to obtain the best result for you and your children.

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Four Key Ways to Save the Family Business from Sibling Squabbles

 

Surprisingly, according to a recent study in psychology today, one-third of adults have distant or contentious relationships with their siblings.

When two or more siblings work in the family business, hostilities from old sibling rivalries can jeopardize the very survival of the business in the wake of the founder’s impending retirement or death.

What causes sibling rivalries in the first place?

Oftentimes, siblings receive unequal treatment or affection from one or both parents while growing up.   Or parents and other relatives label each child, perhaps as the smart one or the friendly one.  As a result, siblings can learn from a very young age they need to compete for their parents’ attention or live with the labels imposed on them.

Such struggles often continue into adulthood and can become intensified when the family runs a business together.  Here are 4 key ways to improve harmony between siblings and preserve the family business.

1.          Work outside the family business.

Working outside the family business often helps younger generations gain outside exposure to alternative business techniques.  But the primary benefit can be to foster each sibling’s confidence and maturity and help them each build a personal foundation for success.

2.          Play to each sibling’s strengths.

Ideally, running the family business should be shared, not divided.  This is best achieved by recognizing what each sibling is particularly good at and assigning roles accordingly.

Brothers Walt and Roy Disney are a perfect example.  Walt was the dreamer and visionary for Disney.  His older brother Roy was the detail-oriented businessman with the financial acumen to achieve the company’s vision.  This successful collaboration resulted in the empire that Disney is today.

3.          Communicate freely and often.

Be sure to communicate all expectations upfront and put it in writing.  It’s important for siblings to treat each other as they would a non-family business partner.  For instance, by not taking your sibling for granted or assuming you can each read each other’s minds.

Likewise, consult each other on key decisions that affect the daily and long-term planning of the family business.  In doing so, each sibling brings his or her unique skills and abilities to the table for a successful family business.

4.          Mediate financial risk-based conflicts.

Sibling conflicts can also arise when each sibling has different ideas about how the business should be run or how key decisions should be made.  For example, one brother might see an opportunity to diversify the business through acquisition, while the other enjoys the stability that the business has achieved.  In these cases, business meetings with a neutral mediator or essential for finding an optimal strategic solution.

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Save Big on Divorce Lawyer Fees with this Eight-Step Do-It-Yourself Divorce Plan

The key to getting a Judgment of Divorce from the court is for both you and your spouse to first sign a divorce agreement, commonly called a Marital Settlement Agreement.

The Marital Settlement Agreement resolves all issues relating to your marriage.  These typically include child custody, parenting time, child support, college costs for children, alimony, and division of the marital assets and debts.

If you and your spouse are both committed to settling your divorce between yourselves (preferably with legal advice for each of you), here’s a general 8-step divorce plan that can save you big on divorce lawyer fees.

1.     Agree about the Kids.

Draft up a written custody and parenting time agreement for your children.  You can use this form as a guide.

2.     Inventory the Marital Assets and Debts

Make a joint list or spreadsheet of all marital assets and debts owned in either or both your names.  For the assets, include real property, bank accounts, investment accounts,  and all pension or retirement accounts (IRAs, 401ks,  pension and/or profit-sharing plans, annuities).  For any accounts in one spouse’s name, it’s generally a good idea to exchange account statements for the last three years or so to identify additional sources of income and any large withdrawals.  Also include personal property, such as furniture, art, and jewelry.

Significantly, if there are any businesses, or premarital, partially premarital, inherited, or other more complex assets, you should consult with an experienced divorce and family lawyer about how such assets are treated under New Jersey law and to protect your interests.

For the marital debts,  it’s generally a good idea for each of you to obtain a current credit report that will list the outstanding debts in each of your names.  These typically include mortgages, home equity lines of credit, and outstanding credit card balances.  Include the current approximate values and balances for each asset and debt.

3.     Gather Insurance Policies

Make a joint list of all health insurance policies, health savings accounts, life insurance policies, and safe deposit box contents.

4.     Calculate the Marital Income.

Make a separate list or spreadsheet for joint marital income.   Separate the list into two columns, one for each spouse.   Identify all sources and amounts of income for each of you.   Have each column totaled.

If there is any employment compensation involving bonuses, commissions, stock options or other incentive compensation,  be sure and consult with an experienced divorce and family lawyer as to how such compensation is valued and divided under New Jersey law.

5.     Calculate Your Expenses.

On the income spreadsheet above, list and total each type and amount of all current expenses for each of you.   Include expenses for the children and college costs, if being paid.  Make sure all expenses are accurate.

6.     What Does the Future Hold?

Identify what you would each like your post-divorce financial life to look like.  For example,  does one of you want to keep the marital home?  Do you want to sell the home and/or other real property and each purchase separate residences?  How much do each of you want to have saved in retirement?   Use your goals to list anticipated post-divorce expenses, including future college costs, if any.

7.     What Will You Need?

Ideally, have a financial or tax advisor for each of you run a cash flow analysis for each spouse.   The cash flow analysis will incorporate your income, assets, debts, and expenses so that you can each get an idea as to which settlement scenarios would work best to achieve what you each want after the divorce.  The cash flow analysis would also account for tax consequences with respect to income and assets.

8.     Your Lawyer’s Role

Many separated or divorcing couples approach lawyers without any prior planning.  As a result, they leave it up to the divorce lawyers to do all work, which they’re more than happy to do, charging you big fees along the way.

By doing the legwork yourself and sharing your divorce plan with each lawyer, you use your lawyer strategically and cost-effectively.  For instance, you and your spouse should each consult with separate attorneys to make sure you don’t overlook anything significant and to advise you on alimony and other applicable New Jersey laws.

Your lawyers can also help generate settlement options and conduct strategic negotiations on your behalf.  Ultimately, the lawyers will draft the formal Marital Settlement Agreement and file the legal documents with the court required to obtain your Judgment of Divorce.

Not only can you save big on divorce lawyer fees, but you will also be in charge of your own future and the future of your kids.

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How Marital Mediation Can Help Save Your Marriage

It’s not uncommon for couples to struggle in bad marriages, often for many years.  In such instances, while the marriage might not be good or even healthy, it’s not quite bad enough for divorce.

Some couples consider getting help with marriage counseling.  What many don’t know, however, is there’s an alternative that can save your marriage.

It’s called marital mediation, where couples work together with a trained mediator.  The mediator uses proven conflict resolution techniques to identify sources of conflict and open up and improve communication.  As a result, couples learn to use new techniques to identify and productively address conflict in their own marriage.

How Marital Mediation Can Help You

Very often, lack of communication or poor communication are the root causes of why marriages break up.  Fortunately, these skills essential for successful marriages can be taught and learned.  Marital mediation helps couples understand the source of conflict and to see a positive future for the marriage.

Other times, problems arise in a marriage as the result of difficult events, such as job loss, serious illness, or infidelity.  Marital mediation can help spouses work together as a team with greater understanding.

Divorce mediation uses many of the same conflict resolution strategies as marital mediation.  Ironically, spouses in divorce mediation will often comment that if they knew what they learned about conflict resolution in their divorce mediation while they were married, they might not have divorced.

How Does Marital Mediation Differ from Marriage Counseling?

Marriage counseling is practiced by a mental health professional who uses therapeutic analysis and insights.   In contrast, marital mediation is conducted by a mediator and uses conflict resolution techniques rather than therapeutic techniques.

For more information or to find out if marital mediation is right for you, please click here.  Or feel free to call or email me directly at mhart@michelehartlaw.com.

 

Can You Avoid Getting Lawyers Involved in Your Divorce?

Divorce lawyers – could easily be one of the most hated groups of individuals out there (second only perhaps to “lawyers” in general…)

So, it’s no wonder many separated or divorcing spouses are reluctant to get lawyers involved.  And I get it – many divorce and family lawyers are overpriced and needlessly aggressive.

There are certainly plenty of horror stories involving long, drawn, out, painful and astronomically expensive divorces.  And in the media, there’s no shortage of news involving crooked lawyers.  Not to mention TV shows and movies starring especially sleazy-looking divorce lawyers (greased back hair and all…)

Naturally, if you’re separated or considering divorce, you might want to avoid divorce lawyers at all costs  (no pun intended…).  Perhaps you prefer to try and work out a divorce agreement on your own or head to mediation (check out this article on to tell if divorce mediation is right for you).

The truth is, when it comes to choosing any professional, whether doctor or surgeon, accountant, plumber, contractor or anyone else, including a lawyer, there are good ones and there are bad ones.  The good ones will truly help you and get you to a better place.  But the bad ones can make your life a living hell.

The same is true with divorce lawyers.  And unfortunately, it’s far more often the bad experiences we hear about.  So, when choosing a lawyer to handle your divorce, it’s important to choose wisely.

Because even if you prefer to work things out between you and your spouse, it’s important not to overlook key issues and provisions that can land you in court after the divorce.  The most commonly overlooked areas generally involve alimony, child support, and college expenses.

By the same token, when it comes to things like amount and duration of alimony, and dividing retirement plans, premarital assets, inheritances, and businesses, you’ll need to defer to New Jersey law to determine what’s fair.

And overlooking such key issues not only can harm you financially, it can often require costly and unpredictable legal action to correct.  And perhaps most important is making sure your children’s needs in the divorce are properly taken care of.

It can be far more expensive to pay an attorney to try and fix a bad divorce judgment after the fact than to have a competent family lawyer in your corner in the first place.

Hiring the right divorce and family lawyer can give you the peace of mind that your divorce is being properly handled from the start so you can avoid costly mistakes you can regret for the rest of your life.

Also, a competent divorce and family lawyer can draft up your divorce agreement in the proper legal form so that it’s properly incorporated when the court enters your divorce judgment.

For more information about how to settle your divorce out of court or for a personalized consultation, please click here.

 

Four Actions to Take Now to Protect Your Family Business in Divorce

If you own a family business with other family members, this article gives you 4 ways to protect the family business if one family member-owner were to get a divorce.

In New Jersey, the spouse of a family business owner could acquire ownership rights in the business simply by being married.  Therefore, the time to protect your family business is now.  Because once the divorce papers are filed, it could be too late, risking the profitability and future successful operation of the business.  Below are 4 important actions to take now to protect the family business:

1.        Put it in writing.

The shareholders’ or similar family business agreement should clearly set forth each family member’s specific or percentage share in the business.

Significantly, your family business agreements should also include a provision that addresses the interest, if any, those non-owner spouses have in the business and what happens to stock or ownership interests in the event of divorce.

Ideally, family business agreements would require all owners to obtain their non-owner spouses’ written agreement to be bound by such provisions.  These are often called Agreements to be Bound.

2.        Put it in writing again.

Where an Agreement to be Bound is not feasible or insufficient, consider a prenuptial agreement that provides for the waiver by the spouse of an interest in the family business.

Alternatively, consult with a reputable business and estate planning lawyer to consider whether an estate planning device, such as a trust, would be more effective.

It’s important that your business lawyer works with your divorce and family lawyer so that all legal requirements are met and to ensure your family business is sufficiently protected.

 3.        Limit the non-owner spouse’s role.

It’s generally best for non-owner spouses not to be involved in the operation of the family business.  This can help defeat the spouse’s claim to have contributed to the profits of the business and receive a greater share in the business.

4.        Keep it confidential.

Most divorces in New Jersey are settled by way of a divorce agreement (typically referred to as a “Marital Settlement Agreement”).  Significantly, Marital Settlement Agreements are considered public records.

Therefore, to the extent the Marital Settlement Agreement identifies the value of the family business, names of officers, and additional confidential business details, a confidentiality provision should be included.

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Three Things No One Tells You About Divorce Mediation

Divorce mediation is when you and your spouse enlist a neutral third party to help you agree on things like child custody, parenting time with your children, alimony, and division of marital assets and debts.  Divorce mediation is voluntary, so either you or your spouse can withdraw at any time.

And divorce mediation can often save you money on lawyer fees.  Because once a divorce complaint is filed with the court, you often have to comply with court-mandated timelines and appear for mandatory court settlement conferences, which your lawyer will charge for.

But before deciding if divorce mediation is right for you, here are 3 things you need to know first that no one tells you.

1.        In most cases, you’ll still need a lawyer.

I often hear people tell me, “we want to avoid lawyers and keep things amicable by going to mediation.”  And that’s partly true.  Divorce mediation can definitely help keep things amicable.  And most lawyers generally charge much less if you come to them with a mediated agreement.  But agreements reached in divorce mediation generally are not legally binding.

Instead, the divorce mediator typically draws up a document called a “Memorandum of Understanding.” You take that to your lawyer to draft up the legally binding agreement called a “Marital Settlement Agreement” and file the required legal documents with the court to enter your divorce.  Importantly, your lawyer can also suggest certain provisions in the Marital Settlement Agreement to protect you and keep you out of court after the divorce.

2.        Divorce mediators cannot give legal advice to either you or your spouse.

Only a lawyer can give you legal advice about how your decisions in divorce mediation will affect you.  Your lawyer can also advise you during mediation so you can make informed decisions that impact your legal rights and obligations.

3.        Divorce mediation can be a waste of time and money if both spouses don’t have similar knowledge about the marital finances.

It’s common in many marriages for one spouse to know more about the marital finances than the other.  But in divorce mediation, you’ll both be making decisions about such things as how to divide the marital assets and how much alimony or child support, if any, is appropriate.

So, unless you and your spouse are both relatively familiar with the incomes, assets, and debts of the marriage, or you have joint bank accounts or other assets in joint names, divorce mediation may not be productive – or even worthwhile.

The exception is where the spouse with the greater knowledge, access, or earnings will be completely transparent and forthcoming in disclosing all assets and financial statements.

This is more likely to happen when both spouses (1) have accepted the divorce is going to happen, (2) are able to make the necessary commitment to reaching an agreement; (3) are each willing to try to see the other’s perspective, and (4) are able to focus on achieving their most important goals while letting go of some of the less significant issues.

Admittedly, none of this will be easy, but it will be worth it when you, instead of the court, are in charge of the decisions for your children and your financial future.

To find out more about how you can benefit from divorce mediation, please call or click here to schedule a personalized consultation or email me directly at mhart@michelehartlaw.com.