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Defenses in Fault-based Divorce: Condonation and Reconciliation
States traditionally have considered condonation and reconciliation to be common law affirmative defenses to fault-based divorce actions. Under that scenario, the defendant was required to plead and prove the defense. In states that allow fault-based divorce and that have comprehensive divorce statutes, the general movement has been to limit or eliminate common law divorce defenses such as condonation and reconciliation.
Effect of Annulment
Usually, an annulment action involves issues of property distribution together with problems involving maintenance, custody, and child support. Annulment nullifies the marriage, but not the legitimacy of the children born to the marriage. Parents in an annulled marriage have a duty to support their children born before and after annulment. Children born during the annulled marriage are considered legitimate, and they have the same rights as children of divorced parents. During annulment proceedings, when a wife applies for child support and the husband insists that he is not the father of the child, the court has jurisdiction over the paternity question.
Modification of Orders Affecting Use of Marital Home
One issue that arises in divorce proceedings is the use and possession of the family home, particularly when the spouses are living in the same house and both require use and possession of the home. If the parties have minor children, the custodial parent usually receives the right to use and possess the home in order to safeguard the children's interest. This right is given to the custodial parent as a form of maintenance or support, in the court's discretion. The right given to one of the spouses is limited to a specific period after the divorce, which is determined by the court. That benefit may last in some form until the parties' youngest child no longer is a minor.
Property Division in Divorce: Valuation of Marital Property
In divorce cases, courts usually must divide the parties' marital property between them. Marital property usually includes both marital assets and marital debts, and generally consists of all property acquired by both or either of the spouses during the marriage, other than property acquired by inheritance or gift from a third party. State divorce laws handle marital property differently depending on whether the state follows equitable distribution, straight community property, "all property," or dual property rules.
Valuation of Closely Held Businesses in Divorce Proceedings
Generally, divorce cases involving thorny property issues can be complicated to resolve. This especially is true when the marital estate includes a closely-held business. A closely-held business usually presents one of two scenarios in the divorce context. The business may be tied to one spouse who is responsible for the business's success. Distribution of the business to one spouse often creates asset allocation and business valuation issues. It presents the problem of valuing the business and structuring the parties' assets and liabilities in order to provide the other spouse with a comparably valued property distribution. If the business depends on the operating spouse's good will and management, which many closely-held businesses do, then the true value can suffer under the emotional stress common in divorce even if the business is distributed to the key-person spouse. A business having one value when operated by the key-person spouse can have a far different value when distributed to the non-operating spouse.