THE MARRIAGE ZONE
Child Custody
By
Christopher C. Meyer September 2009
Colorado no longer uses the term “Child Custody”. Instead, such matters are referred to as “Parental Responsibilities”. Parental Responsibilities are divided into “Parental Decision Making” and “Parenting Time”.
In all cases involving children a “Parenting Plan” must be submitted to the Court.
A Court will approve the Parenting Plan if it is in the ”best interests” of the children. The parenting plan must include provisions for parental decision-making and parenting time.
Parental decision-making involves decisions that affect the child such as where the child goes to school, what church the child attends, what doctor the child sees, etc. Parental decision-making can be joint or sole. Parents usually agree on joint decision-making. Even if parents cant’ agree on much, they usually can agree on what is best for the child. Joint decision-making involves the parents consulting with each other and coming to an agreement about what action is in the child’s best interests. Sole decision-making authority may be appropriate in unusual circumstances involving, for example, one parent’s absence or severe mental illness.
Parenting time is an area where parents may have trouble determining what is in the child’s best interests. A child ‘s best interests regarding parenting time is not merely a competition between parents to see who can win the most parenting time. It is becoming common for Courts to award equal parenting time to both parents, even with very young children. It is difficult to argue against a child’s spending as much time as possible with both parents.
If parents cannot agree on parenting time, a Court may appoint a parenting time evaluator who will investigate and report to the Court with a recommendation as to the child’s best interests. The evaluator must meet certain standards and is usually a mental health professional (psychologist).
One of the best things you can do to show that you are serious about parenting time is to meet your child support obligation.
Child custody law is the same as other law. You must remember that: you may not understand it; you may not like it; and you may not think its fair; but it’s the law!
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Tuesday, January 3, 2012
Short Sale Of The Home - Tax Consequences
THE MARRIAGE ZONE:
Short Sale Of The Home – Tax Consequences
By
Christopher C. Meyer, Ruth Bolas, and Kristina Kesselring
2010
Recent disturbing statistics show that 30 % of the homes in our area are worth less than what is owed on the loans on those homes! Ruth Bolas and I wrote a previous article about real estate short sales for this publication. We thought it would be helpful to expand on the short-sale subject by commenting on tax consequences, so we brought in our tax expert, Kristina Kesselring, CPA.
Whether you are involved in a divorce, or are just struggling to keep up with your monthly house payments, if you are thinking about a short sale as a way to get out from under your house and the mortgage, you must be aware of possible tax consequences.
It used to be that the amount of the loan that was forgiven in a short sale became taxable income to the seller. Talk about adding insult to injury! If John and Mary sold their house for $50,000 less than the mortgage amount, they would get an IRS form 1099 from the lender showing that they received $50,000 in income from the transaction! The amount of the debt forgiven (not paid back) was taxable income to the borrower.
Thanks to the anemic state of the economy, recent legislation and regulations eliminate the tax on this phantom income. The catch is that certain requirements apply.
The part of the loan that is forgiven must be on a mortgage on a principal residence. Sorry, vacation homes and investment properties do not qualify.
The amount of the mortgage debt that is forgiven can only relate to the purchase or improvement of the principal residence. If you refinanced your home to pay off credit cards, purchase a car, etc., that amount that is forgiven won’t qualify and will likely become taxable income to you.
The maximum amount of the phantom (debt-forgiven) income that can be excluded is $1,000,000 for a single taxpayer and $2,000,000 for joint filers. You have our sympathy if you need to exclude more than this.
You must take care that the appropriate forms are issued after the transaction.
In most instances you don’t have to worry about all these requirements if you are insolvent or bankrupt. Insolvent means your debts exceed your assets or you are unable to pay your debts as they become due. Most folks contemplating a short sale are probably insolvent. However, even if you are solvent, you can take advantage of this opportunity to get out from under your over-leveraged home without painful tax consequences, but you must meet the requirements. Of course, the better your financial condition, the harder it will be for you to convince your lender to approve a short sale.
Short sales typically result in no taxable income to you if you meet all the requirements, or you are insolvent or bankrupt. However, short sales are complicated transactions and can result in horrendous tax consequences for the unwary homeowner or person considering this option for in investment property. At a minimum, you should consult with a real estate broker who has expertise in these transactions as well as a tax expert.
A short sale can be an effective damage control device for homeowners, but it requires patience, knowledge, and expertise.
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Ruth Bolas is a licensed Real Estate Broker with Keller Williams and is also an attorney. She grew up in the Monument area and serves the Front Range specializing in working with buyers as well as home sales and short sales. Ruth Bolas can be reached at ruthbolas@msn.com or 719-488-3026 or 303-437-6010.
Kristina Kesselring is a licensed Certified Public Accountant in the state of Colorado. She has more than 15 years experience in small to mid-sized business accounting and management. She specializes in tax debt negotiation, bankruptcy and divorce accounting, business planning and taxation. Kristina Kesselring can be reached at klkaccounting@msn.com or 719-290-9871.
Short Sale Of The Home – Tax Consequences
By
Christopher C. Meyer, Ruth Bolas, and Kristina Kesselring
2010
Recent disturbing statistics show that 30 % of the homes in our area are worth less than what is owed on the loans on those homes! Ruth Bolas and I wrote a previous article about real estate short sales for this publication. We thought it would be helpful to expand on the short-sale subject by commenting on tax consequences, so we brought in our tax expert, Kristina Kesselring, CPA.
Whether you are involved in a divorce, or are just struggling to keep up with your monthly house payments, if you are thinking about a short sale as a way to get out from under your house and the mortgage, you must be aware of possible tax consequences.
It used to be that the amount of the loan that was forgiven in a short sale became taxable income to the seller. Talk about adding insult to injury! If John and Mary sold their house for $50,000 less than the mortgage amount, they would get an IRS form 1099 from the lender showing that they received $50,000 in income from the transaction! The amount of the debt forgiven (not paid back) was taxable income to the borrower.
Thanks to the anemic state of the economy, recent legislation and regulations eliminate the tax on this phantom income. The catch is that certain requirements apply.
The part of the loan that is forgiven must be on a mortgage on a principal residence. Sorry, vacation homes and investment properties do not qualify.
The amount of the mortgage debt that is forgiven can only relate to the purchase or improvement of the principal residence. If you refinanced your home to pay off credit cards, purchase a car, etc., that amount that is forgiven won’t qualify and will likely become taxable income to you.
The maximum amount of the phantom (debt-forgiven) income that can be excluded is $1,000,000 for a single taxpayer and $2,000,000 for joint filers. You have our sympathy if you need to exclude more than this.
You must take care that the appropriate forms are issued after the transaction.
In most instances you don’t have to worry about all these requirements if you are insolvent or bankrupt. Insolvent means your debts exceed your assets or you are unable to pay your debts as they become due. Most folks contemplating a short sale are probably insolvent. However, even if you are solvent, you can take advantage of this opportunity to get out from under your over-leveraged home without painful tax consequences, but you must meet the requirements. Of course, the better your financial condition, the harder it will be for you to convince your lender to approve a short sale.
Short sales typically result in no taxable income to you if you meet all the requirements, or you are insolvent or bankrupt. However, short sales are complicated transactions and can result in horrendous tax consequences for the unwary homeowner or person considering this option for in investment property. At a minimum, you should consult with a real estate broker who has expertise in these transactions as well as a tax expert.
A short sale can be an effective damage control device for homeowners, but it requires patience, knowledge, and expertise.
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Ruth Bolas is a licensed Real Estate Broker with Keller Williams and is also an attorney. She grew up in the Monument area and serves the Front Range specializing in working with buyers as well as home sales and short sales. Ruth Bolas can be reached at ruthbolas@msn.com or 719-488-3026 or 303-437-6010.
Kristina Kesselring is a licensed Certified Public Accountant in the state of Colorado. She has more than 15 years experience in small to mid-sized business accounting and management. She specializes in tax debt negotiation, bankruptcy and divorce accounting, business planning and taxation. Kristina Kesselring can be reached at klkaccounting@msn.com or 719-290-9871.
Wednesday, May 5, 2010
THE MARRIAGE ZONE: REVIEWING YOUR WILL
THE MARRRIAGE ZONE: REVIEWING YOUR WILL
By Christopher C. Meyer 2010
This article is not about your personal determination. It is about your last will and testament. When should you review your will?
Generally speaking, you should review your will: whenever you have a major change in your personal situation; whenever you have a major change in your financial situation; or, annually, to determine if there are any changes in the law that should be reflected in your will. A divorce usually generates reasons to review your will because big personal and financial changes result.
If you already have a will, what happens to it if you get divorced? Married folks typically list their spouse as a beneficiary. Divorced folks rarely do this. After you are divorced, you usually don’t want much to do with a former spouse, much less gift them the property you have left after the divorce. Talk about adding insult to injury!
Fortunately for a lot of folks, the law assumes that you will forget to change your will after you are divorced and remove your now former spouse as a beneficiary. Absent an agreement between the parties or a Court order, a divorce invalidates testamentary (will) gifts to former spouses. The same is true for powers of attorney, insurance beneficiary designations, and pay on death designations for various accounts. The same is also true for folks who never had a will. If your estate passes via intestate succession, it is not going to a former spouse.
Situations may arise where there are good reasons to maintain a former spouse as a beneficiary in a will. An example might be to insure continued maintenance payments after a long-term marriage. The best practice in such instances is to make a new will after the divorce.
After you have exited from the marriage zone, you should make a new will. If you don’t, and your former spouse is your only beneficiary, when you pass away your property will be distributed according to the plan the legislature has determined for such situations (intestate succession) and involves your property being distributed to your closest blood relations.
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
By Christopher C. Meyer 2010
This article is not about your personal determination. It is about your last will and testament. When should you review your will?
Generally speaking, you should review your will: whenever you have a major change in your personal situation; whenever you have a major change in your financial situation; or, annually, to determine if there are any changes in the law that should be reflected in your will. A divorce usually generates reasons to review your will because big personal and financial changes result.
If you already have a will, what happens to it if you get divorced? Married folks typically list their spouse as a beneficiary. Divorced folks rarely do this. After you are divorced, you usually don’t want much to do with a former spouse, much less gift them the property you have left after the divorce. Talk about adding insult to injury!
Fortunately for a lot of folks, the law assumes that you will forget to change your will after you are divorced and remove your now former spouse as a beneficiary. Absent an agreement between the parties or a Court order, a divorce invalidates testamentary (will) gifts to former spouses. The same is true for powers of attorney, insurance beneficiary designations, and pay on death designations for various accounts. The same is also true for folks who never had a will. If your estate passes via intestate succession, it is not going to a former spouse.
Situations may arise where there are good reasons to maintain a former spouse as a beneficiary in a will. An example might be to insure continued maintenance payments after a long-term marriage. The best practice in such instances is to make a new will after the divorce.
After you have exited from the marriage zone, you should make a new will. If you don’t, and your former spouse is your only beneficiary, when you pass away your property will be distributed according to the plan the legislature has determined for such situations (intestate succession) and involves your property being distributed to your closest blood relations.
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Tuesday, May 4, 2010
Military Retirement
THE MARRRIAGE ZONE: MILITARY RETIREMENT
By Christopher C. Meyer copyright 2010
A lot of military and former military folks live in our area. It is not surprising that I am often asked “If I get divorced, will I get part of my spouse’s military retirement?” Fortunately for the person posing the question, the answer is yes, you will receive part of your spouse’s military retirement if you were married to your spouse during at least part of the time your spouse was serving in the military.
Military retirement benefits, like civilian retirement benefits, are marital property to the extent they are earned during the marriage. Marital property will be divided between the parties by the Court in a divorce.
Military retirement, or “disposable retired pay”, is divided using a formula: months of marriage during military service are divided by the total months of military service; disposable retired pay is then multiplied by this fraction to arrive at the total marital portion of the disposable retired pay. Fifty percent of the total marital portion is then typically allocated to the non-military spouse.
For example: military spouse has 252 months (21 years) of military service; the parties were married for 216 months (18 years) during that military service. In this example the disposable retired pay is $2000 per month. Therefore, the marital portion of the retirement is $1714.28 per month (216 ÷ 252 × $2000). The non-military spouse’s share will be $857.14 per month ($1714.28 ÷ 2), and the military spouse’s share will be $1142.86 ($2000 – $857.14). Sorry about all the math, but it may be useful to you if you need to crunch some numbers.
If a divorce happens prior to retirement, some provision should be made to protect the non-military spouse in the event the military spouse should die. Payment of military retirement ceases upon the death of the retiree. A survivor benefit plan (SBP) is available through the military, or life insurance can be purchased to cover the amount of the anticipated retirement funds. Either method will insure that the non-military spouse continues to receive their share of the retirement after the retiree dies.
Keep in mind that flexible and creative solutions can be substituted for the actual division of the military retirement in certain instances when the parties agree. For example, a lump sum payment calculated on the present value of the military retirement can be substituted for an actual division of the retirement.
You may have heard of the “ten year rule”. Many mistake this rule to mean that the parties have to have been married for ten years during the military service to be eligible to receive a portion of the retirement in a divorce. This rule only means that the parties must have been married for ten years during the military service in order for the non-military spouse to paid their portion of the retirement directly from the military (DFAS). If the parties are married for less than ten years during the military service, the military spouse pays the non-military spouse directly, rather than the payment coming from DFAS.
Make sure you cover all your bases when you exit from the marriage zone, and don’t forget to arrange to receive your fair share of your spouse’s military retirement.
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
By Christopher C. Meyer copyright 2010
A lot of military and former military folks live in our area. It is not surprising that I am often asked “If I get divorced, will I get part of my spouse’s military retirement?” Fortunately for the person posing the question, the answer is yes, you will receive part of your spouse’s military retirement if you were married to your spouse during at least part of the time your spouse was serving in the military.
Military retirement benefits, like civilian retirement benefits, are marital property to the extent they are earned during the marriage. Marital property will be divided between the parties by the Court in a divorce.
Military retirement, or “disposable retired pay”, is divided using a formula: months of marriage during military service are divided by the total months of military service; disposable retired pay is then multiplied by this fraction to arrive at the total marital portion of the disposable retired pay. Fifty percent of the total marital portion is then typically allocated to the non-military spouse.
For example: military spouse has 252 months (21 years) of military service; the parties were married for 216 months (18 years) during that military service. In this example the disposable retired pay is $2000 per month. Therefore, the marital portion of the retirement is $1714.28 per month (216 ÷ 252 × $2000). The non-military spouse’s share will be $857.14 per month ($1714.28 ÷ 2), and the military spouse’s share will be $1142.86 ($2000 – $857.14). Sorry about all the math, but it may be useful to you if you need to crunch some numbers.
If a divorce happens prior to retirement, some provision should be made to protect the non-military spouse in the event the military spouse should die. Payment of military retirement ceases upon the death of the retiree. A survivor benefit plan (SBP) is available through the military, or life insurance can be purchased to cover the amount of the anticipated retirement funds. Either method will insure that the non-military spouse continues to receive their share of the retirement after the retiree dies.
Keep in mind that flexible and creative solutions can be substituted for the actual division of the military retirement in certain instances when the parties agree. For example, a lump sum payment calculated on the present value of the military retirement can be substituted for an actual division of the retirement.
You may have heard of the “ten year rule”. Many mistake this rule to mean that the parties have to have been married for ten years during the military service to be eligible to receive a portion of the retirement in a divorce. This rule only means that the parties must have been married for ten years during the military service in order for the non-military spouse to paid their portion of the retirement directly from the military (DFAS). If the parties are married for less than ten years during the military service, the military spouse pays the non-military spouse directly, rather than the payment coming from DFAS.
Make sure you cover all your bases when you exit from the marriage zone, and don’t forget to arrange to receive your fair share of your spouse’s military retirement.
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Tuesday, February 23, 2010
Valuation of the Marital Residence
THE MARRIAGE ZONE: What is Your Home Worth?
By
Christopher C. Meyer and Ruth Bolas
January 2010
Your home is often your biggest financial asset. What your home is actually worth can be a major issue in a divorce case. The following discussion of home valuation methods is not limited to the family law context.
There are several ways of determining the value of your home. There is the “guesstimate” method, too often used by homeowners. This can result in erroneous conclusions due to faulty real estate data. Homeowners are not professional evaluators. Many of the valuation systems available to the public have incorrect data. Two other valuation methods that are often used are appraisals and comparative market analyses (CMAs). An appraisal is performed by a certified professional appraiser. A CMA is performed by a licensed real estate broker.
An appraiser analyzes recent sales of other houses and makes standard adjustments for differences between the sold houses and your house in order to arrive at the value of your house. A CMA involves an analysis of active, pending, and sold listings, original list price, final sold price, days on the market, and seller concessions involved, such as payment of a portion of the buyer’s closing costs.
The valuation method that is best for you may depend on practical matters such as the ultimate use of the evaluation. If a Judge is going to determine the value of your home, an appraisal may be preferable to a CMA. However, there is a trend for more acceptance of CMAs by Judges. A lender will demand an appraisal. Appraisals cost money (starting at around $350). Many real estate professionals offer CMAs for no charge.
The most accurate method will depend upon the evaluator. The results provided by a well-experienced professional appraiser and a similarly experienced real estate broker should be very similar. However, a real estate broker who lives and works in your community may have a better grasp of the market value of your house than an appraiser who does not live or have experience in your community. Similarly, an appraiser who lives and works in your community may be more accurate regarding your home than a real estate broker who lives and works in Fort Collins.
Good luck with your home valuation and remember that both an appraisal and a CMA are vastly superior to a guesstimate. Keep in mind that what your home is worth to you is not necessarily its market value. The market value, whether determined by an appraiser or a realtor, is simply the price your home is likely to sell for in the current market. You should also keep in mind that savvy buyers working with a realtor will almost always get a CMA before they make an offer!
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Ruth Bolas is a licensed Real Estate Broker with Keller Williams and is also an attorney. She grew up in the Monument area and serves the Front Range specializing in working with buyers as well as home sales and short sales. Ruth Bolas can be reached at ruthbolas@msn.com or 719-488-3026 or 303-437-6010.
By
Christopher C. Meyer and Ruth Bolas
January 2010
Your home is often your biggest financial asset. What your home is actually worth can be a major issue in a divorce case. The following discussion of home valuation methods is not limited to the family law context.
There are several ways of determining the value of your home. There is the “guesstimate” method, too often used by homeowners. This can result in erroneous conclusions due to faulty real estate data. Homeowners are not professional evaluators. Many of the valuation systems available to the public have incorrect data. Two other valuation methods that are often used are appraisals and comparative market analyses (CMAs). An appraisal is performed by a certified professional appraiser. A CMA is performed by a licensed real estate broker.
An appraiser analyzes recent sales of other houses and makes standard adjustments for differences between the sold houses and your house in order to arrive at the value of your house. A CMA involves an analysis of active, pending, and sold listings, original list price, final sold price, days on the market, and seller concessions involved, such as payment of a portion of the buyer’s closing costs.
The valuation method that is best for you may depend on practical matters such as the ultimate use of the evaluation. If a Judge is going to determine the value of your home, an appraisal may be preferable to a CMA. However, there is a trend for more acceptance of CMAs by Judges. A lender will demand an appraisal. Appraisals cost money (starting at around $350). Many real estate professionals offer CMAs for no charge.
The most accurate method will depend upon the evaluator. The results provided by a well-experienced professional appraiser and a similarly experienced real estate broker should be very similar. However, a real estate broker who lives and works in your community may have a better grasp of the market value of your house than an appraiser who does not live or have experience in your community. Similarly, an appraiser who lives and works in your community may be more accurate regarding your home than a real estate broker who lives and works in Fort Collins.
Good luck with your home valuation and remember that both an appraisal and a CMA are vastly superior to a guesstimate. Keep in mind that what your home is worth to you is not necessarily its market value. The market value, whether determined by an appraiser or a realtor, is simply the price your home is likely to sell for in the current market. You should also keep in mind that savvy buyers working with a realtor will almost always get a CMA before they make an offer!
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Ruth Bolas is a licensed Real Estate Broker with Keller Williams and is also an attorney. She grew up in the Monument area and serves the Front Range specializing in working with buyers as well as home sales and short sales. Ruth Bolas can be reached at ruthbolas@msn.com or 719-488-3026 or 303-437-6010.
Wednesday, January 20, 2010
Emancipation
IT’S THE LAW!
EMANCIPATION - ITS NOT WHAT YOU THINK IT IS
By Christopher C. Meyer copyright January 2010
“Emancipation” refers to the removal of disabilities associated with childhood. Emancipation is not an all or nothing proposition. You can be emancipated for some purposes, but not for others: you can vote when you are eighteen; but you can’t drink alcohol until you are twenty-one. There is no set age of emancipatation for any and all purposes.
There is no specific lawsuit that you can file in Colorado to have a Court declare you emancipated. You have to file an action for declaratory judgment and request the relief you want the Court to grant.
The issue of emancipation most often arises in the context of parents’ child support obligations - since this involves money! For child support purposes, once a child is emancipated, parents no longer have child support obligations to the child. Let’s look at what “emancipation” means for child support purposes.
In Colorado the age of emancipation is nineteen for child support purposes, but there are some uncommon exceptions: the parties may agree otherwise in a written stipulation; if a child is mentally or physically disabled the Court may order child support to continue; if the child is still in high school, child support continues until the end of the month following graduation, but not beyond age twenty-one; or if the child is “otherwise emancipated”. A child is “otherwise emancipated” if: she has entered the military; she is married; or she is living away from home, she is self-supporting, and it is not a temporary situation.
A child who becomes emancipated for child support purposes may later become un-emancipated and the child support obligation may be reinstated. For example, if the child is married but the marriage is later annulled, dissolved or declared invalid, the child support obligated may be reinstated. Similarly, a child who moves out and is self-supporting loses her job and moves back in with her parents. This child may again be eligible for child support if she is not yet nineteen.
The law of emancipation is like any other law: you may not like it; you may not understand it; and you may not think it is fair, but it’s the law!
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
EMANCIPATION - ITS NOT WHAT YOU THINK IT IS
By Christopher C. Meyer copyright January 2010
“Emancipation” refers to the removal of disabilities associated with childhood. Emancipation is not an all or nothing proposition. You can be emancipated for some purposes, but not for others: you can vote when you are eighteen; but you can’t drink alcohol until you are twenty-one. There is no set age of emancipatation for any and all purposes.
There is no specific lawsuit that you can file in Colorado to have a Court declare you emancipated. You have to file an action for declaratory judgment and request the relief you want the Court to grant.
The issue of emancipation most often arises in the context of parents’ child support obligations - since this involves money! For child support purposes, once a child is emancipated, parents no longer have child support obligations to the child. Let’s look at what “emancipation” means for child support purposes.
In Colorado the age of emancipation is nineteen for child support purposes, but there are some uncommon exceptions: the parties may agree otherwise in a written stipulation; if a child is mentally or physically disabled the Court may order child support to continue; if the child is still in high school, child support continues until the end of the month following graduation, but not beyond age twenty-one; or if the child is “otherwise emancipated”. A child is “otherwise emancipated” if: she has entered the military; she is married; or she is living away from home, she is self-supporting, and it is not a temporary situation.
A child who becomes emancipated for child support purposes may later become un-emancipated and the child support obligation may be reinstated. For example, if the child is married but the marriage is later annulled, dissolved or declared invalid, the child support obligated may be reinstated. Similarly, a child who moves out and is self-supporting loses her job and moves back in with her parents. This child may again be eligible for child support if she is not yet nineteen.
The law of emancipation is like any other law: you may not like it; you may not understand it; and you may not think it is fair, but it’s the law!
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Short Sale Of The Marital Home
THE MARRIAGE ZONE: Short Sale Of The Marital Home
By
Christopher C. Meyer and Ruth Bolas
copyright November 2009
What happens when you are getting divorced and your house is worth less than the loans associated with it? Is a short sale a potential solution?
A significant number of people who purchased or refinanced homes in the last few years are upside down in their homes. They owe more on the house than it is worth. In a divorce, the assets and debts are going to be divided between the parties. If the house sells for a net loss, that debt is going to be divided between the parties. Is there some way to avoid or minimize this debt without foreclosure or bankruptcy?
A short sale may be the perfect solution. Although it is not ‘short’ in duration, the short sale process involves a lender taking less or ‘short’ of what they are owed. In most circumstances there are two loans – a first and a second. To facilitate a short sale, the realtor would work with the lenders to negotiate acceptance of a lesser amount than what is owed. For example:
1st Mortgage $200,000
2nd Mortgage $50,000
Market Value $210,000
If the home could be sold for $210,000, then the first lender in this example could be paid in full and the second would have to accept a loss. Keep in mind this example does not include the costs associated with the transaction including commissions, title work, tax pro-rations, and closing fees (that are all paid by the lenders, not the home owners).If the property were foreclosed on, the second lender would get nothing, so better to accept a loss and recover some money in a short sale versus nothing in a foreclosure. Even where a mortgage holder in first position needs to accept less than what they are owed they typically will because in most foreclosures they will end up taking the property back for later sale as a bank-owned property. Banks make money by making loans – not by owning real estate.
Residual risk in a foreclosure or short sale is that the lender(s) could pursue a judgment for the ‘deficiency’ or amount still owed after the short sale or foreclosure, but this is not the general practice. In short sales, lenders used to issue a 1099 to the home owners for the deficiency, but now, with new legislation, in most situations the deficiency is not considered taxable income to the sellers/homeowners.
The lender’s motivation to accept a short sale is to get money quickly from the sale and avoid the expense of a foreclosure sale. The homeowners’ motivation is to avoid the adverse effect of a foreclosure on their credit ratings. When homeowners can demonstrate a legitimate hardship such as divorce, financial problems, loss of job, or health problems, lenders are very likely to work with them to facilitate a short sale.
If you struggling financially and you are upside down in your house, you may be able to avoid foreclosure with a short sale. A short sale is a complicated transaction and it can take a long time, but the credit damage is significantly less than that resulting from a foreclosure.
A short sale can be an effective damage control device for homeowners, but it requires patience and expertise. Keep this in mind if you are trying to minimize your losses as you exit from the marriage zone.
This article is for informational purposes only and does not constitute legal advice about your case.
Chris Meyer is an attorney practicing family law in Northern El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.
Ruth Bolas is a licensed Real Estate Broker with Keller Williams and is also an attorney. She grew up in the Monument area and serves the Front Range specializing in working with buyers as well as home sales and short sales. Ruth Bolas can be reached at ruthbolas@msn.com or 719-488-3026 or 303-437-6010.
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