Economic Issues Flashcards
What are the steps for dividing property/assets between separating spouses?
- Equitable distribution— categorise the assets— distribute the assets based on their distribution rule
- Consider alimony/maintenance payments
Which property is “separate”?
—Anything a spouse owns prior to the marriage
—Inheritance
—Individual gifts
What is marital property?
Anything that comes into the marriage unit during the marriage, irrespective of who pays for its or in whose name it’s in.
How can separate property become co-mingled?
It’s inextricably mingled with marital property such that you couldn’t trace the original, separate property.
When it comes to distributing assets according to their distribution rule, separate property is kept by each spouse, but what 7 factors will a judge consider as part of the division of marital assets?
— Age and health of each spouse
— Duration of the marriage
— Education and Earning capacity
— Standard of living they’ve grown accustomed to
— How much separate property will they have
— Will they have custody of the children?
— Each spouse’s contribution to the household
If one spouse has committed adultery during the marriage, can the judge award the other more marital property to account for the other’s wrongdoing?
Most states will not consider adultery when dividing assets.
Can a judge order one party to pay cash equivalent to the other, rather than physically splitting the assets?
Yes, judge can divide or order a spouse to pay cash to the other.
Is the judge’s decision about how to divide marital property final?
Yes
What is alimony?
It’s a continuation of the obligation of support that spouses owe to one another during the marriage.
When will alimony be awarded and what’s the trend in terms of the awards now?
Alimony awarded when there is a showing of need; it’s not automatic.
Trend is towards less frequent, smaller and shorter duration awards because usually both spouses work now.
What factors will the court consider when awarding alimony?
The same factors they consider when dividing martial property
What is the main difference between the factors that the judge can consider when making an award for alimony vs. dividing marital property?
For alimony awards, the judge CAN consider marital misconduct and reduce awards for those who are more to blame.
What are the 4 types of alimony a judge may award?
- Permanent periodic alimony
- Rehabilitative support
- Lump sum
- Reimbursement
What is the (1) description of Permanent Periodic Alimony, (2) can it be modified, and (3) when does it terminate?
- It is an open-ended obligation for one spouse to pay a certain amount of money every month, for the lifetime of the recipient
- Modifiable upon a substantial change in circumstances
- Terminates upon death of either spouse or remarriage of the recipient spouse.
What is the (1) description of Rehabilitative Support, (2) can it be modified, and (3) when does it terminate?
- Periodic payments made for one spouse to gain necessary training and skills to self-support. It’s therefore time limited.
- Modifiable upon substantial change in circumstances
- Terminated upon death of either spouse or remarriage of recipient spouse
