Debts & Divorce FAQ

The Sunshine Isaacson & Hecht, LLP has extensive experience representing clients in divorce cases. Our team understands that when you’re getting a divorce, you have a variety of major issues on your mind. One big question you’re asking is likely, “What will my financial situation look like when this is all over?”

This can be an even more serious question when there are major debts involved. That’s why we’re focusing today’s blog post on answering our clients’ biggest questions about debts and divorce.

How are debts typically divided in a New York divorce?

Essentially, this will all come down to what the judge thinks is fair. However, we can say that the vast majority of the time, the judge is going to split your debts 50/50 unless there’s a good reason not to. If your spouse accumulated debt prior to commencing a divorce, it is likely that you will be sharing it.

What would qualify as a major reason not to split our debts 50/50?

A judge would be much less likely to split your debts 50/50 if the debts came about in a way that clearly only benefitted one of the pair. For example, if a spouse got deep into debt by gambling in Atlantic City, that person would most likely have to bear more of that burden of the debt that resulted from that. Even if there is other debt not associated with the gambling, the argument could be made that you wouldn’t have a large credit card balance had all of that other money not been lost on gambling. Judges do their best to be fair and equitable, but your attorney needs to make the right argument.

What about student loans?

If your student loans were taken out before your marriage, they will likely remain the responsibility of the party who took them out. However, if you took out student loans during your marriage, the judge may look at you furthering your education as an endeavor for the betterment of the entire family and that could possibly be divided 50/50. Typically we are able to negotiate that each party keeps their own student debt by arguing that our client should benefit from the debt if they have to pay for it post-divorce; i.e. the debt created more income not just for the spouse, but for them both – it was an investment for the family.

Can my spouse and I decide how to divide our debts outside of court?

Absolutely. If you, your spouse, and your attorneys can come to a mutual agreement about how to divide your debts outside of court, that is acceptable and can save you the time and effort of litigating another matter in the courtroom. However, many couples find that they simply cannot reach an agreement on their own. Debt is one of the most difficult things to resolve. In our experience, people are much more likely to agree to take fewer assets, than to take extra debt.

Who can represent me in my divorce?

If you need help with divorce, property and debt division, or any other family law matter, the Sunshine Isaacson & Hecht team would be happy to help. Contact us through our website to get started.

Three Reasons Unwed Fathers Should Establish Legal Paternity

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Three Reasons Unwed Fathers Should Establish Legal Paternity

There’s a common misconception about unwed fathers and legally establishing paternity — Many people believe that if you don’t establish your paternity, you can dodge the responsibility of paying for child support if you later discover that the child is not your biological child. However, the fact of the matter is that this is decidedly not the case. In fact, sometimes judges rule that a man who has lived with a mother and child should have to pay child support if he separates from them even if genetic testing shows that he is not the biological father!

So you see, failing to establish legal paternity won’t spare you from child support obligations if you and the mother break up down the road. However, lacking legal paternity will cause you and your child to miss out on several benefits of the father and child bond. Read on to discover the top reasons that legally establishing paternity is a good idea.

You get a say in important decisions that affect the child.

It is a parent’s responsibility to make educational and medical decisions on behalf of their child. Where will your child go to school? Are they allowed to join their classmates on a field trip? What happens if they get hurt? What happens if they get sick? As a father, it is your right to have a say in these decisions. However, you need to legally establish your paternity in order to be able to assert these rights.

Your child can take part in your benefits.

Do you get health insurance through your employer? Your child can only be on your insurance policy if you have legal paternity? Do you want your child to benefit from your life insurance policy if anything happens to you? Again, you need to legally establish paternity in order for this to happen. Your legally established paternity also makes it possible for your child to inherit your assets after your death if you do not have an estate plan in place.

Your child can access important genetic information.

Doctors use a family’s genetic history to understand a patient’s risk for certain health issues. Genetic history can also give them insight into what treatment and preventative measures will help your child most. If you want your child’s doctor to be able to access genetic information for your side of the family, you will need to establish legal paternity.

Once you support a child, you have to continue supporting a child, sometimes without the benefits that come with being a father.

Courts have held time and time again that if you learn later on that you are not the biological father, but you have spent months or years supporting the child financially in your home, you still have an obligation to the child despite the results of the paternity test. Sadly, we have seen situations where a father learned that the child was not his biological child, was directed to pay child support, but had no rights to see the child! Don’t let this happen to you!

If you haven’t legally established your paternity yet, don’t wait any longer. The Sunshine, Isaacson & Hecht team is here to help you. Contact us today to get started.

Divorce Perspectives: A Proactive and Personalized Approach

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Divorce Perspectives: A Proactive and Personalized Approach

It’s a cliché, admittedly. But the old adage that “an ounce of prevention is worth a pound of cure” rings particularly true when it comes to divorce. Even if an individual has the best of intentions, with emotions running high, one misstep, and what otherwise could have been a very simple matter, spirals out of control.

It is for this very reason that our firm views the initial consultation as an essential part of the process. We firmly believe that if we get to know our clients and what they hope to achieve, we can avoid many of the pitfalls that often hold parting spouses captive to litigation.

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Divorce for Business Owners

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Divorce for Business Owners

Divorce touches every aspect of your life, including, unfortunately, your professional life. For some it may be as straightforward as carrying an emotional burden into the office every day, but for business owners, it’s a little more complicated. If you’re a business owner considering divorce, do you know how the process will impact your business?

A big part of any divorce is the division of assets. In the eyes of the law, your business ownership may be considered marital property, especially if you started it during the marriage and your spouse contributed to making it a possibility. For instance, maybe your spouse took care of the household so you could focus on your business endeavor. Or maybe he or she contributed financially in the early stages when you were trying to get your feet off the ground. There are lots of ways a spouse can contribute to your business’s creation and success without being a co-owner or employed by the business in any capacity.

So if your business is considered marital assets, and marital assets have to be divided, what does that mean? Is your soon-to-be-ex going to get half of the business you’ve worked so hard to build?

You might be able to convince family court that your business is separate property. If this isn’t possible or if your spouse is in fact your co-owner, you still have some options for resolving this issue. Let’s take a look.

Option 1: You can buy out your spouse’s share.

If you have enough liquid assets outside of your business, you may be able to buy out your spouse’s interest in the company. This can be expensive and isn’t an option everyone can afford, but it’s a good path when possible because your spouse will feel that they are getting their fair share while you will be able to continue on leading your business as usual in your post-divorce life.

Option 2: You can remain co-owners post-divorce.

It is also possible to amicably remain co-owners. If your spouse plays an active role in the company, he or she will likely want to continue to do so. If not, he or she may comfortably settle into a role as a shareholder. How feasible either of these scenarios is will depend on the dynamics of your relationship as a divorce couple.

Option 3: You can sell the business and split the profit.

This option isn’t for everyone, but sometimes a divorce is the right time to move on in more ways than one. Some business owners choose to sell their businesses all together, let their spouse have their fair share, and use the money they make to start building a new dream.

If you are a business owner and you’re facing a divorce, the Sunshine, Isaacson & Hecht team can help you determine which path is right for you. We can guide you through the difficult process of negotiating and determining marital vs. separate property. If you have any questions about these matters or if you are ready to make moves to protect your business, contact us today. We can’t wait to hear from you!

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