Divorce Lawyers in Las Vegas Archives

Can I Date During a Divorce?

Posted on February 19, 2021 | by The Abrams Law Firm LLC

Divorce is an opportunity to kick-start the next phase of your life. You get to decide who you want to be after your divorce. That could mean finding new hobbies, moving to a new location, getting a new job, or starting a new relationship. While you are not legally prohibited from dating while the divorce is still pending, there are important considerations to take into account in deciding whether to do so or not. If you do choose to date, you need to consider the affects it will have on your pending divorce case. Experienced divorce lawyers in Las Vegas know that there are reasons why you might want to limit dating activity or at least keep it off of social media until the divorce is finalized. Below, we discuss a few of the issues to consider when deciding whether to date while your divorce case is active.

No Fault Divorce

Nevada, like every other state, allows for a no-fault divorce. In fact, Nevada is a “pure” no-fault divorce state. In other words, spouses seeking to divorce can only file for no-fault reasons such as irreconcilable differences. No one can legally allege improper behavior such as adultery as a reason to file for divorce.

However, if you are, or were, wasting marital resources on a third party, those funds could come out of your share of the marital property distribution. Waste or dissolution of marital assets may be alleged when a party spends amounts on gifts, vacations, or rent for a non-spouse. Outside of wasting your marital assets on your new relationship, you needn’t worry about fault allegations when considering whether to date or not. However, just because you can do something it doesn’t mean you should.

Child Custody Considerations

Family courts base child custody decisions on the best interests of the children. Introducing a new party into the lives of your children can be a disadvantage during the divorce process. This is particularly true if the new third party has a history of criminal behavior, mental health issues, or drug/alcohol abuse. In these instances, any qualified divorce lawyer retained by your spouse should argue that the presence of the new third party poses risks to the children. This could have a serious negative affect on a child custody determination. It’s also true that this could affect your child custody rights post-divorce. In either situation, you should carefully consider any new cohabitation arrangement when you have shared minor children.

Alimony and Cohabitation

Nevada courts may order one of several different types of alimony depending on the circumstance of the spouses. In general, alimony can be short-term with a set end date, rehabilitative, or permanent. In all cases, alimony is based upon the idea that one ex-spouse needs support from the other in order to be financially stable and independent. Any competent divorce attorney will include a clause in the final decree of divorce that ends alimony in the case of remarriage.

Additionally, since cohabitation is now so socially accepted, it may also be included as a reason to cease alimony payments. In Nevada, termination of alimony based on cohabitation usually requires that the new partner is financially supporting the recipient ex-spouse, thus removing the need for alimony payments. Merely entering into a new relationship before, during, or after your divorce does not constitute sufficient cohabitation to end the need for alimony. If you choose to date during your divorce you should nevertheless be wary. An aggressive divorce attorney on the other side may argue that your new partner is financially supporting you, thus reducing or eliminating your need for alimony.

Resolving the Divorce Amicably is Always Best

Divorces can be amicable or hard-fought. How the divorce process resolves depends in part on the complexity and significance of contested issues such as alimony, child custody, and the division of community property. It also depends on the personalities of the divorcing spouses and their relationship with one another. Dating while the divorce process is ongoing can create anger or resentment in your soon-to-be ex-spouse. In any event, you should never publicize your new relationship on social media and brag about how happy you are now. A divorce that could have been quickly and quietly resolved through your divorce lawyer’s negotiations might turn into a nasty court battle. If you can wait a few months to begin seeing other people or publicly announce the start of a new relationship, it is in your overall best interests to do so.

Legal Advice and Representation for Your Las Vegas Divorce

We are ready to lead you through all aspects of your divorce case, including division of complex assets, alimony, and child custody disputes. Our Las Vegas divorce attorneys will speak to you directly and assist you in setting up a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Community Property in Las Vegas Divorces

Posted on February 6, 2021 | by The Abrams Law Firm LLC

Every divorce involves the distribution of marital property in some form. Different states have different rules about what constitutes marital property. Complicating the divorce process are issues such as separate property before marriage and prenuptial and post nuptial agreements. These are some of the different factors family courts will use in evaluating who gets what share of which property. Below, our experienced divorce lawyers explain how community property works in Las Vegas divorce cases.

What is a Community Property State?

States take one of two general approaches to the distribution of marital property: equitable distribution or community property. Equitable distribution involves weighing a variety of factors in order to apportion marital property between the two parties based on principles of equity and fairness. Obviously there is a wealth of grey areas when using the terms “equity and fairness”.

Nevada, on the other hand, is a community property state. The concept in a community property state is that the divorcing spouses’ joint assets are distributed equally. That means that all income and assets acquired by either spouse during the marriage belong equally to both parties, no matter which spouse earned the income or in whose name the property is titled. Debts acquired by either party during the marriage are also equally shared by the parties and equally distributed upon divorce.

On its face, this might seem like there are no grey areas in community property distributions. However, there are numerous factors that make a fifty-fifty split more of a concept rather than reality.

Is Distribution Always 50/50?

Because Nevada is a community property state, the default approach is for the parties to each receive an equal, 50% share of the couple’s community property. There are, however, certain circumstances under which property will not be distributed equally, including:

You hire a divorce lawyer whose skill-set is superior to the divorce lawyer hired by your spouse. This is the primary reason that one spouse gets an advantageous share of the assets. In fact, the more complicated your divorce matter is, the more having the better divorce lawyer is a factor.
The parties entered a valid prenuptial agreement that provides for a different distribution of property.
The couple entered into a settlement agreement before or during the divorce that provides for a different distribution of property.
The family court determines that one spouse “wasted” or hid community property.

What Constitutes Community Property?

Only assets that constitute community property will be divided among the parties upon divorce. Each party’s separate property will remain their own providing that the property has been kept sole and separate during the marriage. Separate property can include property acquired before the marriage, as well as property that one party received during the marriage through inheritance or by gift. If by inheritance or gift, it must be explicitly intended for only one spouse. Personal injury awards can also be considered separate property. Other property (and debt) acquired by either party during the marriage can be considered community property and owned equally by each party.

Commingling Separate and Community Property

Commingling is a term that divorce lawyers come upon frequently. Commingling, in its simplest form, is defined as mixing separate and community property. For example, let’s say that one spouse owns a home as their sole and separate property before marriage. However, during the marriage, they use community funds for mortgage payments, to pay real estate taxes, or to otherwise maintain the property. This would be a commingling of separate and community property. There are times where the commingling occurs with such frequency, and/or for such an extended period of time, that it is impossible to ascertain what portion is separate and what portion belongs to the community. In these instances, the property can be deemed completely community property.

Prenuptial and Post-Nuptial Agreements

Our divorce lawyers in Las Vegas are well familiar with determining whether these types of agreements are valid or not. Many people are surprised when they learn that their agreement will not hold up in court. There are numerous reasons why an agreement can be invalid. These reasons can include:

Did each party have the benefit of independent legal counsel before signing the agreement?
Was there sufficient time to review the agreement before signing it?
Does the agreement comport will all aspects of Nevada law?
Does the agreement have a section regarding child support?
Is there a severability clause wherein if one section of the agreement is deemed invalid, the other aspects of the agreement remain enforceable?
Is the agreement worded in such a way that it favors one party over the other so much that it is unconscionable?

Call for Expert Legal Help with Your Las Vegas Divorce Matter

Our dedicated divorce lawyers in Las Vegas are ready to help you navigate all aspects of your divorce case. This includes complex asset evaluation and property division to alimony and child custody issues. We will help you locate all assets that make up the marital estate, ensure that you get your share, and protect you and your children. Our attorneys will speak with you directly regarding a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

International Divorce Matters

Posted on January 28, 2021 | by The Abrams Law Firm LLC

Divorce can be a complex, lengthy, and a difficult process when both spouses live in the same place. But when one spouse lives outside the United States, the challenges can be even greater. Divorcing spouses and their divorce lawyers will need to take into account questions concerning residency, international child custody, foreign assets, and other matters on top of the usual divorce issues. International divorce matters are complicated by their nature. If you are going through a divorce and you or your spouse resides in a different country, you’ll need the expertise of a divorce lawyer familiar with all the intricacies inherent in these cases. This article discusses some of the issues that are likely to arise in an international divorce case.

Where to File for Divorce?

If you and/or your spouse have dual-citizenship or otherwise reside in different countries, you will need to decide where to file for divorce. Typically, it is best to file where you currently live, even if you have a different home country. However, if you maintain a home and have other assets in a different country, there might be an advantage to filing there depending on that locale’s divorce laws. Each country has their own unique laws when it comes to divorce and marital property. If the lion’s share of your marital assets, evidence, and witnesses are in the other country, it may be necessary to file there in order to make a claim on the marital assets.

Identifying Foreign Assets

Nevada is a community property state. That means that each spouse generally owns half of the assets and debts acquired during the marriage. There are exceptions to this with the primary one being a valid prenuptial agreement. Absent any exceptions, acquired assets belong to the marital estate whether they are located in the United States or elsewhere. International disputes often involve a variety of assets in different locales. Your divorce lawyer will need to ensure that all assets (including foreign bank accounts, corporate ownership, real estate, etc.) are identified and incorporated into the marital estate for distribution. They should ensure that no assets are hidden from the divorce proceeding, and that no foreign laws get in the way of obtaining those assets for distribution. Your divorce lawyer may also need to obtain orders from foreign courts concerning real estate and other assets or get official documents certified and translated from other languages into English.

International Divorce Child Custody Issues

We explore international child custody matters in another post, but it is worth briefly highlighting some of the challenges to international custody matters. Spouses with different home countries or international residences will need to address, for example:

How parenting time and custody will work if one parent moves to the other country, especially if the moving party wants primary custody
What happens when a spouse wrongfully removes a child to another country
Precautions to take if one spouse moves to another country that is not governed by important international laws such as the Hague Convention
Incorporating communication and travel arrangements into the child custody agreement

Validity of Prenuptial Agreements

International divorces also involve issues that arise because of language barriers. If one party speaks limited English or did so at the inception of the marriage, then they might have lacked the capacity to fully understand and agree to a premarital agreement drafted in English. If English is not your primary language and you are surprised about the contents of your premarital agreement at the time of your divorce, you might have grounds to challenge the validity of the agreement.

Expert Legal Guidance for Your International Divorce

Call a dedicated Las Vegas divorce attorney for assistance with your divorce or divorce related matter. Our expert divorce lawyers in Las Vegas are ready to lead you through all aspects of your divorce case, including residency determinations, alimony, property division, child custody disputes, and all other related issues. They will help you decide if a consultation is right for you. Call our office at 702-222-4021 to personally speak with one of them.

9 Critical Questions to Ask Your Divorce Lawyer

Posted on December 8, 2020 | by The Abrams Law Firm LLC

Finding the best legal representation for your divorce can feel overwhelming. There are hundreds of options, and it may seem difficult to evaluate whether a lawyer is qualified and a good fit for your unique circumstances. When you are looking to retain an attorney, take consultations with a few candidates and make sure their skill-set, usual case type, and billing rates are compatible with what you have at stake in your divorce case. Read on for the 9 critical questions to ask your divorce lawyer.

How Long Have You Been Practicing Divorce Law?

When you hire a divorce lawyer, make sure that you retain an experienced one. You do not want a general practitioner who accepts whatever case type walks through their door next. If you have a lot at risk, you will want a divorce law specialist. Make sure to ask your attorney how long they have been practicing, and how long they have focused on divorce law specifically.

What Kind of Divorce Cases Do You Typically Handle?

In addition to divorce law specifically, it is important to retain a divorce lawyer that has worked on many divorce cases similar to yours. An attorney who primarily does uncontested divorces for a discount rate usually does not have the skills appropriate for a contested complex matter. So it is important to consider the facts of your case. Does your case involve a cross-state or international custody dispute? Do you and your spouse share complex assets such as multiple real estate holdings or a business? Are you and/or your spouse concerned about your privacy? Are you worried about your spouse hiding assets? Make sure that your divorce lawyer can tackle the issues that make your case unique.

What is Your Fee Structure?

Before you retain a divorce lawyer in Las Vegas, one of the most important things to know is how much you may have to pay for your divorce. Different attorneys have different fee structures; some charge by the hour and some have a flat fee for certain types of divorce cases. If you have a complicated contested case, do not expect an exact amount but rather a general range. Marital law cases can have many twists and turns that are impossible to predict. Additionally, no attorney knows how your spouse and their divorce lawyer will behave.

In your initial consultation, the prospective attorney should be comfortable when informing you of their fees. If they do not offer the information, ask about their fee structure and a possible cost range for your case. Reputable divorce lawyers have no problem answering this question. The absolute most important issue is to make sure that their fees are appropriate for what you have at risk in your divorce. In other words, you should never hire a high-powered divorce lawyer for a case where there is no financial or child custody reason to do so. Conversely, hiring a discount attorney for a complex matter is a huge mistake. This often results in you dismissing your first attorney and hiring a second one when you realize that your first choice is not up to the task. Further, your new divorce lawyer has to take additional time to “adjust” what your first lawyer has done and get you on the right course.

What is Your Communication Style?

The best Las Vegas divorce attorneys encourage you to communicate with them any time you have a concern. They are also prompt at responding to you. It’s a big red flag if your attorney or their staff is not communicating back to you. Some attorneys like phone calls while others prefer email. Some attorneys keep their clients updated very regularly, while others only update their clients when something important happens or when a matter requires the client’s input. During the coronavirus pandemic, it is even more important to know how your lawyer communicates, such as whether they have video conferencing capabilities. When you meet with potential attorneys, ask about their communication methods, and make sure that it lines up with your expectations and needs.

Who, Exactly, Will Be Working on My Case?

Some divorce lawyers will have support staff manage much of the issues of your case. While there is always a need for an attorney’s staff to perform skill appropriate tasks, they should not be in charge of your case. In these instances, you may believe that you are getting dedicated work from the experienced divorce lawyer (which is what you are paying for) when in reality you are not. In your initial meeting, find out whether your attorney will directly work on and manage your case. You may also wish to meet key support staff members that work under your attorney’s direct supervision so you are comfortable with the entire team. Every divorce matter in our law firm is directly worked on and managed by one of our attorneys. There are no exceptions.

Do You Have Any Disciplinary History With the Bar?

It may feel awkward to ask, but it is important to find out whether your potential lawyer has ever been disciplined by the state bar association. In most states, you can contact the state bar and find out this information if you do not want to ask the attorney directly. If they have ever been in trouble, find out the details so you can evaluate whether their history will be a problem for you. They may have been disciplined for something as innocuous as being late with an annual fee for the state bar, or it may be something more problematic like misappropriating client funds.

Can You Help Me Understand All the Implications of My Divorce?

The effects of divorce pertain to more than just property divisions, child custody, and child support. Ask your divorce lawyer if they can help you understand and deal with other issues connected to your divorce, such as tax consequences, asset valuations, child custody experts, and other matters of concern. Most, if not all, experienced divorce lawyers know specialty lawyers and court certified experts in these areas. It’s not uncommon for divorce attorneys to consult with colleagues and experts in complex matters.

What Will My Divorce Entail?

Unless you have been through the divorce process in Nevada before, it is likely that you only have a vague idea of the process. A few words of caution: Do not rely on the input from well-meaning family members and friends. Their divorce case was unique, as is yours, and their experiences could very well be completely different than yours will be.

Different states have different divorce procedures and requirements. Moreover, depending on how cooperative you and your spouse are able to be, the time frame and cost for your divorce can vary widely. Ask your attorney to explain the steps involved in a divorce proceeding, the possible timelines, and what you should be doing while your divorce matter is active.

What is Your Strategy for My Case?

Once you have discussed your case with your divorce lawyer, ask them to give you an idea of their anticipated strategy. What will they do to protect your share of the marital assets such as real estate, investments, retirement plans, checking and savings accounts, etc.? What will they do about temporary spousal support and alimony? What’s their plan for child custody disputes? Get a sense of how they will handle the details of your divorce matter to ensure that they can properly fight for you.

Las Vegas Divorce Lawyers

Our divorce lawyers in Las Vegas have decades of experience in all manner of divorce and marital law issues. Whether you are currently seeking a divorce, looking for a new divorce lawyer, or dealing with post-divorce issues, our legal team is here to help. Our divorce attorneys can answer your questions to help you decide if a consultation is right for you. Call our office at 702-222-4021 to personally speak with one of them.

What if Your Spouse is Hiding Assets?

Posted on November 29, 2020 | by The Abrams Law Firm LLC

All divorce matters require the division of assets and debts. Both spouses are required to be completely forthcoming concerning their finances. The assets generally fall into two categories: community property or separate. A third possible category is when the assets are partially commingled which means that marital assets were used in support of a “separate property” asset. Separate assets must be disclosed because they can be relevant when determining issues such as alimony and child support. These are complex financial issues.

Some divorcing spouses think they can protect certain assets by hiding them from the divorce process. Hiding assets in a divorce may be unscrupulous and illegal, but it happens nonetheless. And there are countless ways a marital asset may be hidden. Consulting with one or more seasoned divorce lawyers in Las Vegas is the best way to get your proper share. Learn below about what may happen if you suspect that your spouse is hiding assets in your divorce.

Locating Hidden Assets

When you are going through the divorce process, our divorce attorneys do not take your spouse at their word when it comes to financial disclosures. Your spouse must produce copies of all financial records, including documents pertaining to stocks, corporate ownership, business ownership, bank accounts, real estate, and other assets. If our divorce lawyers have any reason to suspect there may be any other assets, they will request additional documents using legal discovery requests, such as the following:

Requests for Production of Documents, such as tax returns, financial statements, accounting reports, etc.
Interrogatories or Requests for Admission to answer specific questions.
Inspection Demands, for property like safety deposit boxes, storage units, commercial properties, etc.
Depositions, where your spouse will be required to speak under oath and answer questions posed by your lawyer.

If your spouse is likely to have more complex hidden assets such as foreign bank accounts, our divorce lawyers may bring in experts such as forensic accountants, actuaries, and investigators to sweep through your spouse’s finances and possibly identify anything not yet disclosed.

Consequences for Hiding Assets

If your spouse is hiding assets during a divorce, they might be subject to strict penalties. Financial certifications, deposition testimony, and other official court responses are made under oath. That means that lying is a form of criminal perjury. While a court is unlikely to seek criminal charges for one or two mistakes, if a party is consistently and intentionally hiding important assets, the court could indeed look to such severe measures. The court might also hold a party in contempt of court for failing to comply with a court order. In any case, a spouse found to be hiding assets is generally subject to heavy fines and financial penalties.

Additionally, a court may impose penalties on a party who hides assets by ruling in favor of the other spouse on financial matters relating to the divorce. In one extreme example, a woman won a $6 million state lottery jackpot shortly before divorcing her husband. She hid the lottery win from her husband and the court. When the court discovered the hidden assets, the court ordered the woman to turn over the entire lottery jackpot to her spouse in the divorce.

Help With Your Nevada Divorce

Our experienced divorce lawyers in Las Vegas are prepared to help you resolve all issues relating to your divorce proceeding, including identification of any hidden assets, property distribution, child custody, alimony, and others. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Can My Divorce Be Kept Private?

Posted on November 20, 2020 | by The Abrams Law Firm LLC

If it’s not specifically requested and handled properly, divorce proceedings can be the ultimate form of “airing your dirty laundry” in public. The fact that your marital relationship is ending isn’t the only issue that becomes public. Details of your private life make their way into public court filings and hearings insofar as they relate to the proceedings. Divorce related disputes, including personal and financial details concerning your children and your property, are also available to anyone who cares to find them.

Privacy during divorce proceedings is not just for high-profile individuals such as actors, athletes, C- Level executives, and public figures. Anyone can have their divorce lawyer request to seal their divorce proceedings from public view in Nevada. Below, our knowledgeable Las Vegas divorce lawyers discuss your options for keeping your private life just that – private.

Court Filings are Public by Default

In the United States, with exceptions for national security and related issues, most court filings are available to the public by default. This is true for all divorce cases in Nevada. So anyone can obtain the documents in your divorce proceeding. Court filings become a matter of public record unless there is a specific request to the family court to keep those proceedings sealed from public view. With the advent of the internet, looking through court documents is exponentially easier than when someone would have had to sift through paper records. Unless your divorce attorney takes steps to make court records private, they remain visible to the public.

Sealing Divorce Court Records

Your divorce lawyer can file a request to seal your entire divorce case from the outset. If the court grants the request, which is commonly done, all files, exhibits, records, and testimony will be sealed from public view. All court hearings will also be private. The judge will clear the courtroom of all parties not associated with the hearing before it begins.

When a divorce case is sealed, the only people who can attend the court hearings and see the details of the sealed documents are the two spouses involved, the parties’ divorce lawyers, and the judge. In some cases, court certified experts may be granted access to limited documents in order to perform their professional duties.

Divorce Mediation is an Option with Privacy

If you can resolve all of your issues outside of the courtroom, then you will never have to worry about the public nature of court documents. Most divorcing spouses have the option of going through mediation. Divorce mediation is a non-court proceeding for resolving marital disputes, and is both private and confidential. Unless all parties agree, or there are very exceptional circumstances, nothing that happens in divorce mediation proceedings will be disclosed, either to the court or the public.

Two Methods of Private Case Resolution

If you resolve all of your issues outside of court, either through settlement negotiations or mediation, then the final decree of divorce can be a very plain filing ending the marriage. The filing simply refers to a confidential settlement agreement. It leaves out the private details of the divorce matter. In these instances, the parties’ attorneys request that the court incorporate the settlement agreement by reference rather than including it in the public filing. Therefore, the only information the public sees is that the marriage ended and an agreement was reached.

Keep Your Las Vegas Divorce Under Wraps

Our Las Vegas divorce lawyers know how to protect your privacy and your interests in your divorce proceeding. We fight for your rights across all divorce-related issues, including property distribution, alimony, child custody, child support, and others. Whether you are currently contemplating divorce or dealing with other marital law issues, our family law team is ready to help. They will speak to you directly and assist you in setting up a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Living With Your Spouse During Divorce is a Bad Idea

Posted on October 31, 2020 | by The Abrams Law Firm LLC

Divorce matters are complicated for a variety of reasons. Divorces involve complex and heated emotional issues, affect the lives of both parties and their children, and can impact your financial security. Some people consider continuing to live with their spouse during the divorce proceeding. They also may think that keeping the family together can help the children through the transition. As we mentioned in a recent post, we strongly advocate against living with your future ex during your divorce case. The consequences far outweigh any benefits of doing so. In this article, we cover a few of the reasons why living with your spouse during a divorce is a bad idea.

Divorces Involve Conflict

Even the most amicable divorces can dredge up unexpected conflict. While you and your pending ex-spouse might agree that divorce is necessary, unless you have minimal assets and debts and no children, you will still have issues about which you disagree. You may not see eye-to-eye about alimony, how property should be divided, child custody, or any number of other life changing issues. The more complicated your divorce issues are, the more opportunity for disagreements. Most importantly, if you could have worked out your differences before, you wouldn’t be getting a divorce at all. Now that you are in a legal proceeding over these issues, if you live together there is simply too much opportunity to get drawn into arguments. These arguments cause further conflict and make a bad situation worse. You should leave all conflict resolutions to your divorce lawyer. They know how to “turn down the heat” and negotiate or litigate in your best interest.

Divorces are Emotional

While some parties are able to maintain a civil demeanor during divorce proceedings, those divorces are the exception, not the rule. Divorces are inherently emotional. Deciding to separate from someone with whom you thought you’d share a lifetime is a difficult and complicated experience. Combined with the complexity of legal proceedings, it is likely that matters will get heated inside and outside the courtroom. Living together is likely to lead to blowout fights and screaming matches about your relationship, your children, your finances, and any number of other issues. It is better to keep distance between you and your soon-to-be ex. You’re much better off focusing on resolving the legal disputes and preparing for your future.

It’s Not Better for Your Children

You are getting divorced for a reason. Your marital relationship is fundamentally not working, and you have decided that you will be better off apart. If you have children together, you have already decided that your family will not be better off by “staying together for the kids.” Trust that instinct. Divorce is going to be a transition for everyone involved. Trying to make the process smoother for your children by living in the same home often does more harm than good. It is more likely that your children will witness arguments, or being passive-aggressive, or being simply being unhappy around one another. Exposing your children to your conflict every day is likely to cause more harm than simply having one party move out and live on their own.

It Will Limit Your Ability to Move On

Divorces take time. Each divorce case is unique and the time frame varies. You may be going through the process for six months or for two or more years. The time frame is often related to the nature of the disputes involved, the types and values of assets being distributed, and child related issues. If you are waiting for the divorce to finalize before moving out, you are essentially putting the next chapter of your life on hold. It is unlikely, for example, that you would feel comfortable to begin dating while still living in the same home.

Seasoned Legal Guidance

Our highly effective divorce lawyers in Las Vegas are ready to guide you through all of your divorce issues, including complicated property divisions, alimony, and child custody matters. We are dedicated to defending your rights and protecting your family. Our experienced attorneys have handled the most complex and sensitive divorce law matters for over two decades. They will explain to you what we offer our clients. Then you can decide if a consultation is right for you. Call our office at 702-460-8005 to personally speak with one of them. They will put your mind at ease and explain how to best resolve this difficult time in your life.

How is Alimony Taxed or Deducted?

Posted on October 22, 2020 | by The Abrams Law Firm LLC

Divorce comes with a whole host of financial considerations. Property divisions and alimony are two of the most important financial aspects in a divorce proceeding. These two issues will affect the quality of life of both parties immediately, and many times, for years after the divorce is final. Our Las Vegas divorce lawyers typically find that clients are aware of some of the financial implications of divorce but are surprised to learn about others. In this article, we discuss one question that commonly arises in a divorce: How is alimony taxed or deducted? Continue reading for the answers to these important questions.

Note: The content of this article is not meant to be specific legal or tax advice. You should always seek the counsel of your own divorce lawyer and tax professional based on your individual circumstances.

What is Alimony?

Alimony is a cash payment, or more commonly, a set of cash payments over time, from one ex-spouse to the other. Alimony differs from spousal support in that alimony occurs after the divorce is final. Spousal support typically is a temporary financial arrangement that occurs during the divorce proceeding.

There are no guarantees that alimony will be agreed to or awarded in a divorce case. Each set of financial circumstances is unique. There are, however, certain factors that usually affect whether alimony is part of a divorce matter. These include, but are not limited to, the length of the marriage, the financial condition of each party after divorce, and the educational level and earning capacity of each ex-spouse – to name just a few.

Alimony is one of the most complex issues in a divorce matter. You should always consult with an experienced divorce lawyer on any alimony claim. So if alimony is awarded, does the alimony recipient have to pay income tax? Does the alimony payer get a tax deduction?

Changes to the Federal Tax Law in 2019

For many years, alimony was federally tax-deductible to the payor and taxable as income to the payee. This arrangement made sense: Wealthier spouses were encouraged to agree to a more substantial alimony payment because they knew that the payments would be tax-deductible on their federal income tax return. Alimony recipients, in turn, relied on alimony as their source of income and it was taxable just like any other form of income.

In 2017, the federal government enacted the Tax Cuts and Jobs Act (TCJA). One of the principal effects of the TCJA for divorcing spouses concerns alimony. Essentially, the new law shifts the tax burden from the recipient to the payor. The new law also applies to alimony agreements entered into before 2019 but modified after the TCJA’s effective date.

The TCJA completely and permanently eliminates the federal tax deduction for alimony payors, for anyone who gets divorced after January 1, 2019. Recipients of alimony, in turn, no longer report alimony as taxable income. This results in more total income tax to the federal government as the payor is typically in a higher tax bracket than the recipient. It also provides an incentive for wealthier spouses to fight tooth and nail to reduce their alimony obligation.

Nevada State Tax Law

Nevada is one of nine states that have no income tax. The others are Alaska, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Since there is no income tax in Nevada, neither ex-spouse has any state tax penalty or advantage regarding alimony payments.

Trusted Advice and Legal Representation Concerning Alimony

Our seasoned divorce lawyers in Las Vegas are ready to lead you through all aspects of your divorce case. One of our attorneys will speak with you directly regarding a consultation. Call our office at 702-222-4021 to see if what we offer is right for you.

How Can You Challenge a Las Vegas Prenuptial Agreement?

Posted on September 23, 2020 | by The Abrams Law Firm LLC

Prenuptial agreements, often called “prenups,” are contracts entered into between parties in anticipation of marriage. Prenups are increasingly common among couples marrying in the 21st Century, and no longer just reserved for the wealthy and the famous. Family courts may, or may not, defer to prenuptial agreements when it comes to dividing marital property and deciding other economic issues in a divorce. If you are stuck with a prenup that leaves you with nothing or less than you deserve, what are your options? We discuss how you can challenge a Las Vegas prenuptial agreement below.

The Prenup is Invalid

The principle way to challenge a prenup, either before or during a divorce, is to establish that the agreement itself is invalid. Prenuptial agreements are civil contracts. This means that they follow the principles of contract law. There are various legal grounds commonly used to establish that any sort of contract is unenforceable because it was invalid when executed. If your divorce attorney in Las Vegas can demonstrate that a prenup is invalid, then it will have no legally binding effect on your divorce proceeding. The typical grounds to invalidate a prenup include the following:

Lack of Independent Legal Counsel

Your spouse must provide you the opportunity to secure the advice of your own attorney. Using your spouse’s attorney is not good enough unless you agree to it. Nonetheless, if you choose to use your spouse’s attorney or decline to get your own independent legal counsel, your decision to do so must be in writing and not relate to any other grounds for invalidity.

Adequate Time Frame

If your spouse did not allow you an adequate time frame for you to review the prenup, or have your independent divorce attorney review it, you may have an argument for ruling the agreement invalid.

Fraud, Misrepresentation, or Deception

A prenup is invalid if a party can prove that they were tricked into entering the agreement. If you can show that your spouse lied about material matters pertaining to your marriage, or hid assets or financial obligations when negotiating the prenup, then you have a case for getting the prenup ruled invalid.

Involuntary Signing

A prenup is only valid if both parties entered into the agreement voluntarily. If one party was coerced into signing the prenup through force, threats of force, threats of financial ruin, or other forms of coercion, then the agreement may be invalidated.

Capacity

Contracts are only valid if the parties who enter into them are of sound mind and of legal age. If one party to a prenup lacked the capacity to consent, then the agreement may be ruled invalid. A party might lack capacity if they were intoxicated at the time of signing, if they have a mental disorder, or if they were not a legal adult when they entered the agreement.

Unconscionability

The Las Vegas Family Courts may invalidate a prenuptial agreement if the terms are so shocking that they run afoul of public policy. In simpler terms, unconscionability means that the agreement favors one party so much more than the other that the courts find it invalid.

Unenforceable Terms

In addition to invalidating the agreement in its entirety, a party can refuse to comply with certain terms of a prenup that are legally unenforceable. Not everything is subject to contract, and there are terms common to prenuptial agreements that the law refuses to enforce on public policy grounds. Specific terms that are not enforceable in prenups include:

Child Support

Child support is a legal obligation owed to the child, not a parent. A prospective couple cannot include a term in a prenup that lowers the amount of child support one parent will owe in the event of divorce. A prenup can be used, however, to agree to a greater child support obligation than that required by law.

Illegal Conduct

A prenup, like any other contract, cannot call for a party to violate the law.

Child Custody

A prenup cannot preemptively determine child custody. The parties and the court will decide upon child custody based on the best interests of the children at the time of divorce.

Alimony

A prenup can limit alimony to some extent, but it cannot eliminate alimony altogether or set alimony at too low a level if either action would leave one party destitute.

Best Interests of the Child

A prenup cannot waive the court’s right to determine the best interests of the child for specific purposes.

Las Vegas Prenuptial Agreement Experts

Our divorce lawyers in Las Vegas have decades of experience with complex prenuptial agreements, including those covering hundreds of millions of dollars. They are ready to draft and execute a valid prenuptial agreement or challenge invalid provisions in an existing agreement. One of our lawyers will explain to you what we offer our clients. Then you can decide if a consultation is right for you. Call our office at 702-460-8005 to personally speak with one of them.

Can Alimony Be Changed After Divorce?

Posted on August 26, 2020 | by The Abrams Law Firm LLC

Alimony, also called spousal support, is an aspect in some divorces. Alimony is not always granted but can be, especially when one spouse has a significantly higher income. In Nevada, alimony awarded at the end of a divorce proceeding is generally categorized in one of three ways: permanent, temporary, or rehabilitative.

Temporary alimony typically has a defined amount and set end date or triggering event; for example, $2500 per month for three years. Rehabilitative alimony is meant to provide support for an ex-spouse while they get the education or training necessary to get a job and support themselves. Permanent alimony typically does not have a specific end date or event, with the exceptions of death or remarriage of the receiving ex-spouse. Regardless of the type of alimony awarded, is it possible to change alimony after divorce?

Alimony Change of Circumstances

Regardless of when alimony is set to end, an ex-spouse paying alimony can seek to reduce or terminate their support obligation through a showing of changed circumstances. A party may also petition the court if they uncover fraud or mistake. NRS 125.150 defines the laws regarding alimony and the associated three year limitation to file a petition for change in alimony based on fraud or mistake.

Changed circumstances involve some unexpected life event that affects the party’s ability to continue paying support, or the receiving party’s need for support. Typically, changed circumstances involve either significant unexpected expenses (such as a serious injury or illness), or significant changes to the payor’s income such as a job loss. As a benchmark, a change in the payor’s income by 20 percent or more will be a change of circumstances sufficient to seek modification of alimony.

Assuming the paying party shows a changed circumstance sufficient to justify modifying alimony, the court will weigh the factors it originally considered when granting alimony in order to establish whether alimony should be modified or terminated. These factors include the financial condition and property of each spouse; each spouse’s earning capacity, the standard of living during the marriage, and other factors. The court will also consider whether the reduction in the payor’s income was by choice, i.e., if they are intentionally unemployed or underemployed, or out of the payor’s control, such as a job loss. Petitions for modification must be in good faith, and a party cannot intentionally reduce their own income just to pay less alimony.

Alimony Changes and Cohabitation

Most divorce lawyers in Las Vegas will include a clause in the final decree of divorce where alimony will end when the recipient gets remarried. What is less common is a clause in the decree where alimony arrangements will end upon the recipient’s cohabitation with a new partner. As a general rule, family court judges do not want to force a former spouse to continue paying an ex when they now have someone else to support them. Nor do they want to force a former spouse to subsidize the life of their ex’s new spouse.

Cohabitation occurs when a party begins to reside with a new romantic partner. Knowledgeable divorce attorneys understand the possible temporary nature of cohabitation and often will not agree to include any alimony termination provisions in the decree of divorce based on cohabitation. Nonetheless, a party may petition the court for an end to alimony if the recipient is being financially supported by a cohabitating partner, even before remarriage. Even parties who maintain a separate residence may still be “cohabitating” if they reside together most of the time and there is financial commingling. Your divorce attorney should gather evidence to demonstrate cohabitation if it is not obvious on its face.

Speak With a Las Vegas Alimony Attorney

If you are seeking to reduce or stop your alimony obligation, or if you are receiving alimony and need additional funds, our knowledgeable divorce lawyers are ready to help. We are here to guide you through the process and fight to protect your family, your interests, and your well-being. Our Las Vegas alimony attorneys will speak with you directly regarding a consultation. Call 702-222-4021 to speak directly with one of them about your alimony or other divorce law concerns.

COVID-19 and Your Las Vegas Divorce Case

Posted on August 10, 2020 | by The Abrams Law Firm LLC

If you are in the middle of a divorce case, or if you were gearing up to file for divorce, the COVID-19 coronavirus pandemic has likely affected your plans. In Las Vegas, divorce cases are still proceeding through the family courts, but there are important changes to take note of. Read on to learn about some of the principal ways in which COVID-19 is likely to affect your divorce proceeding.

Some Court Delays and Remote Participation

One of the primary effects of the pandemic has been the closure of businesses in order to fight the spread. Except for trials, Clark County family courts are generally closed for in-person proceedings, and some hearings and deadlines (motion filing, discovery, etc.) have extensions. And even many divorce trials have been pushed back on the court’s calendar. The family courts are using remote access through BlueJeans videoconferencing software for nonessential matters such as standard court hearings. The family court judge in your divorce matter has likely issued orders concerning the scheduling of future events in your case. So your Las Vegas divorce attorney will communicate to you on how your case will proceed. Our office will also assist you with BlueJeans so you can participate in all court hearings as necessary.

Outside of the courtroom, you can still communicate with your divorce attorney remotely via video conferencing tools such as Zoom or FaceTime. Likewise, mediation, arbitration, and settlement negotiations can also be held remotely. Discuss the matter with your divorce lawyer to explore how best to keep your case moving in light of the changing environment.

Changed Economics

We discuss the economics of divorce during the COVID-19 pandemic more fully in another post. Briefly, it is important to take stock of how the pandemic has affected the economic calculations involved in your divorce. If your divorce involves the distribution of assets such as business ownership, stocks, and real estate, the pandemic might affect your property’s value. Always discuss with your attorney whether an updated valuation is appropriate in light of the current circumstances.

Additionally, if you or your future ex-spouse has had a significant change in income or expenses due to the pandemic, such as job loss or furlough, business closures, medical expenses, this change may affect calculations of child support and alimony, both temporary and permanent. Income changes might also affect your division of property. For example, one party may have a different view on whether they can afford to buy out the house or keep up with a mortgage and property taxes.

Child Custody and Visitation

The pandemic has everyone on edge, rightfully so, about the spread of COVID-19. If one spouse has symptoms of the virus, or if they work in a high-risk job such as healthcare, the parties may choose to put into place a temporary child custody and visitation arrangement that best protects the health of the children. The arrangement could have an expiration date, with a permanent plan to take over once the danger has lessened. It’s important to get any form of child custody arrangement, even temporary ones, in writing and family court sanctioned.

Custody and visitation arrangements must also take into account travel restrictions. If you and your soon-to-be ex-spouse live far apart or in different states, a custody plan should limit the number of necessary trips. Even parents living close by may wish to limit the number of exchanges to avoid exposure. For example, instead of custody changing every weekend or every other week, the children could stay for two weeks or a month at a time in each location, especially if schools will be operating remotely. If you have any concerns, discuss your options with your divorce attorney and your co-parent.

Get Expert Counsel for Your Las Vegas Divorce

Our seasoned divorce lawyers in Las Vegas are ready to help you navigate all aspects of your divorce case, from complex asset evaluation and property division to alimony and child custody issues. They will speak with you directly regarding a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Who Moves Out During a Las Vegas Divorce?

Posted on August 4, 2020 | by The Abrams Law Firm LLC

One of the most contested issues in many divorces involves the distribution of real property, particularly the family home. Do you sell the house and split the proceeds? Does one spouse buy out the other? What if both spouses want to keep the house? Who should move out of the house while the Las Vegas divorce is ongoing? Can you force your spouse to move out? The following article discusses the answers to these vital questions.

The Most Important Factor

Living with your soon-to-be ex-spouse during a divorce proceeding is never a good idea. There are too many opportunities for conflict. Most significantly, the end result will be the same. If you and your spouse could resolve your conflicts, you wouldn’t be getting a divorce in the first place.

For these reasons, and many others, living together while your divorce is on-going is not an option you should consider. Divorce is an unpredictable and emotional situation, and many spouses cannot reasonably live together once the divorce process begins. Assuming someone is going to move out, who should it be?

Can I Force My Spouse Out?

You cannot unilaterally decide that you get to stay and your spouse must leave the marital home. You do not have the right to evict your spouse, even if you believe the house belongs to you. Even if you have the title and mortgage in your name, even if you were the sole income-earner, and even if you decided alone to purchase the home, you cannot simply decide that your spouse is no longer allowed to live there. Division of assets is a matter for the divorce proceeding to resolve, including who winds up with the house. Until the issue is finalized, it is technically still up in the air on who will get the residence. It surprises some people that having the title in your name is relevant, but it is not the only deciding factor.

If you believe the house is solely yours, the family court judge presiding over your Las Vegas divorce, might determine that the home is your sole and separate property and should belong to you. But until you get a court order to that effect, your spouse likely has an argument for at least a partial ownership interest in the house. And until you get a court order, you cannot unilaterally force your spouse to leave. Changing the locks while they are out is likely to get you in trouble and never looks good to a family court judge. If the house is community property, either the parties or the court will have to resolve ownership.

Before finally determining ownership, you may be able to petition the court to have your spouse move out while the divorce is pending. The court has the authority to issue temporary orders on a variety of matters connected to the divorce that will not have a permanent effect. The court will consider factors such as the presence of minor children and which party has custody while the divorce is pending. Las Vegas Family Courts prefer that the parties agree on these issues on their own, but many times this is not possible.

There is an additional situation under which you can get your spouse to leave: If your spouse is abusive or violent toward you or your children, or if they are threatening to be so, you can seek a protective order from the court. A protective order for you and your family can force an abusive spouse to move out.

Determining Who Moves Out

The best way to resolve the situation, is for you and your spouse, with your respective divorce lawyers’ advice, to agree on who moves out. It also helps to address other issues at the same time, such as a temporary custody and visitation arrangement, agreement on financial terms about housing expenses and support, etc. If an agreement cannot be reached, the family court judge handling your case will make a decision after a motion hearing. Regardless of how these situations are resolved, the judge issues a legally binding court order addressing all the temporary order issues for the duration of the divorce proceedings. Keep in mind that staying in the home might be a financial benefit that will come from one spouse’s share of the marital property division.

Trusted Las Vegas Divorce Lawyers

Talk to a family law attorney to discuss your living situation and determine the best approach for who stays and who leaves during your Las Vegas divorce. Our divorce lawyers have the dedication and institutional knowledge to guide you through all aspects of your divorce, from temporary spousal support, alimony and property division, and child custody issues. They are familiar with the most complex and sensitive of divorce issues. They can answer your questions to help you decide if a consultation is right for you. Call our office at 702-222-4021 to personally speak with one of them.

Las Vegas Divorce Mediation

Posted on July 25, 2020 | by The Abrams Law Firm LLC

Spouses going through divorce proceedings in Las Vegas are often surprised to learn how strongly the legal system encourages reaching an agreement outside of family court. Conducting a full trial and having the judge decide the matter is typically the last resort, costing the divorcing spouses involved more time, stress, and money. Therefore family judges presiding over Las Vegas divorce matters routinely encourage spouses to reach an agreement either by settlement negotiations through their respective Las Vegas divorce attorneys, or through mediation. In divorce matters involving child custody disputes, the family court actually requires the parents to enter mediation under Nevada State law.

How Does Divorce Mediation Work?

Typically, mediation is an optional alternative for divorcing spouses to resolve their disputes efficiently and cost-effectively. The parties can enter mediation before filing for divorce in an effort to resolve all issues and then file for divorce with a settlement agreement in place. Divorcing spouses can also choose to enter mediation after a divorce proceeding has begun.

In an ideal world, both parties, with the counsel of their Las Vegas divorce lawyers, would reach a complete agreement on all issues and the divorce matter would be settled. Divorce attorneys for both spouses would then incorporate the settlement terms into the final decree of divorce, resolving all issues. In fact, most divorce cases eventually resolve this way and only a small fraction of divorce cases go to trial. Mediation is another tool to encourage divorcing spouses to reach a settlement agreement.

Mediation is a form of informal, non-binding negotiations overseen by a neutral mediator. Divorcing couples often choose to go through mediation rather than a formal court process in order to avoid the time, money, and hassle of court proceedings. The mediator’s role is that of a settlement facilitator. They are not a judge and cannot make a legally binding determination on any issue.

Instead, the mediator is there to help the divorcing spouses find common ground and resolve disputes on any issues that require legal determination, including child support, child custody and visitation, alimony, and property division.

When is Mediation Required in Las Vegas?

Nevada law, however, requires mediation under certain circumstances. Parents proceeding in Clark County Family Court must undergo mediation at the Family Mediation Center (FMC) when they are unable to agree on child custody and/or visitation rights. The case cannot proceed if one or both parents refuse to participate in FMC child related mediation, and refusal to do so can subject a party to court penalties. There are exceptions to mandatory attendance, such as if one parent lives out of state, or if there are issues with abuse or domestic violence.

The mediation at FMC addresses child custody and visitation. The mediator will attempt to have the parents settle on a custody agreement and visitation schedule, based on what is in the best interests of the children. If successful, the mediator will draw up a full or partial parenting agreement based on what the parents can agree upon. It’s important to note that the parents attend FMC mediation without legal representation. Divorce lawyers are not part of this form of mediation. If some child related issues remain unresolved, the Las Vegas divorce attorneys for both parents will then find other avenues to resolve the dispute.

Help With Your Las Vegas Divorce Mediation

Our experienced divorce attorneys in Las Vegas offer two forms of mediation assistance. They represent clients at mediation sessions with an independent divorce mediator, or they act as mediator for both divorcing spouses. In either instance, they are ready to provide exceptional legal services for your divorce mediation. Our seasoned divorce attorneys will speak to you directly and assist you in setting up a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Nevada Child Support Laws

Posted on July 19, 2020 | by The Abrams Law Firm LLC

Nevada child support laws require that parents provide for their children. For divorcing couples, this means that both parents should contribute in some form. The support can take the form of financial, housing, educational, medical, and child care, to name just a few.

The financial aspect of child support is based on the physical custody agreement. As with all divorce aspects involving minor children, the financial support agreement requires court approval. Child support payments terminate when a child reaches age 18, or 19 if the child is still attending high school.

Nevada law sets guidelines on how family courts should evaluate and determine financial child support amounts. Any divorce decree concerning minor children must comport with the Nevada statutes, even if the parties come to a different agreement in a divorce settlement. Effective February 2020, the guidelines have changed, potentially allowing for higher financial support obligations than under the previous laws.

The New Guidelines

Under the previous child support guidelines in Nevada, child support payments were capped at a presumptive maximum of $1,165, per child per month, regardless of the paying party’s income. This was different from most other states which have no presumptive maximum amount.

For example, if a person makes $10 million a year in California, the guidelines there indicate a support obligation of over $50,000 per month, or over $600,000 per year. In Nevada, the previous guidelines would have capped at the payor’s obligation to $1,165 per month or $13,980 per year. So previously the children of high income parents in Nevada were afforded substantially less financial support than in most other states. Caring divorce attorneys in Las Vegas welcome the new guidelines and the elimination of the financial support presumptive maximum caps.

Now, the $1,165 cap has been removed and replaced with a calculation that changes the child support obligation of the payor based on their gross monthly income. For one child, the guidelines provide for child support in the amount of 16 percent of the payor’s first $6,000 of their gross monthly income, eight percent of the next $4,000, and four percent of any income over $10,000. The percentages change if there is more than one child.

For example, a person who makes $15,000 a month which is $180,000 annually, could now pay up to $1,480 for one child, rather than the previous limit of $1,165. Here’s how the calculation in this example works:

16% of $6,000: $960 and;
8% of the next $4,000: $320 and;
4% of the next $5,000: $200
Total: $1,480

The rules also allow a judge to impute income to a payor if they are unemployed or underemployed without good cause, i.e., if they should have a job at a certain income level, but they choose not to. Our divorce attorneys in Las Vegas also find that under-reporting income is easiest when the payor owns their own business.

Deviation from the Guidelines

The laws also recognize that the guidelines range will not be right in every situation. A person may be less able to pay, despite their gross income, or a family’s need may require additional amounts. Las Vegas divorce attorneys can have the court adjust the support obligation based on the needs of the family and the economic circumstances of the parties. This includes considerations such as special education needs, the payor’s ability to pay, the relative income of both households, transportation costs for visitation, and a host of other issues.

Modifications by a Change in Circumstances

The new child support rules apply to child support cases agreed to or by judge’s decision after February 1, 2020. The current rules do not modify existing child support obligations prior to that date. Regardless of the inception date, payment modifications require a “change in circumstances” that affects the financial situation of either the payor or payee. Typically this means an income change of one party that is +/- 20% from the original child support order. Most importantly, the new rules alone are not a consideration for change in circumstances.

Trusted Las Vegas Divorce Attorneys

Our seasoned divorce attorneys in Las Vegas are ready to help you navigate all aspects of your pending divorce, from child custody issues and alimony to complex asset evaluation and property division. They will speak with you directly regarding a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Nevada Community Property Laws

Posted on June 29, 2020 | by The Abrams Law Firm LLC

All divorce matters involve some form of division of spousal assets and debts. The manner in which the division occurs depends on the laws in the state with jurisdiction over the divorce case. Each state has their own individual laws, but the laws fall into two general categories: Community property or equitable distribution.

Nevada is one of only nine states that use community property laws. These laws govern property division in all Las Vegas divorce cases. The other eight states with community property laws are Arizona, California, Idaho, Louisiana, New Mexico, Texas, Washington, and Wisconsin. The other forty-one states (and Puerto Rico) base their marital asset and debt divisions on the legal concept of equitable distribution.

Nevada community property laws may seem simple at first. However, there are numerous factors that affect the status of a marital asset or debt. More importantly, even if an asset has community ownership, it does not mean that it is automatically subject to a fifty-fifty division between the divorcing spouses.

Community Property and Equitable Distribution

Community property states treat all assets and debts acquired during marriage, by default, as having joint spousal ownership. Whether only one, or both spouses, is responsible for the action is not material. If one spouse claims an asset as their sole and separate property, they are responsible to provide proof that it is so. The other spouse does not have to prove it’s not.

Equitable distribution states treat marital assets and debts differently than community property states. The legal concept of equitable distribution, in general, favors the spouse most responsible for the action. Apportioning each spouse’s equitable share can turn into a nightmare of legal wrangling. Unfortunately community property law is no less complex. The law just handles the complexities differently.

Community and Separate Property

In general, an asset acquired after the date of marriage is deemed to be the property of both spouses under Nevada community property laws. Examples of community property may include:

Income – This is often a surprise to a spouse who earns the lion’s share of the marital income. If there is no enforceable agreement to the contrary, every dollar either spouse earns during marriage is community property. Your spouse need not contribute at all and they still have a right to their community portion of all marital income.
Real Estate – The most common example of this is a marital home, regardless of who is on the title and/or mortgage. Many people confuse the policies of financial services companies with community property laws. The two are not the same. Just because one spouse is not on the title, it does not mean that they have no right to their marital portion.
Investments – If you or your spouse initiate or continue to support investments during marriage, the investments may be community property.
Commingled Assets – If either spouse supports an asset using community funds, it may be community property regardless of other factors such as ownership by one spouse prior to marriage.

Examples of separate property may include:

Any asset specifically listed in an enforceable pre-marital or post nuptial agreement. They key word here is “enforceable.” It is not uncommon for a family court judge to rule an agreement unenforceable for a variety of reasons. These may include whether both spouses had independent legal representation, each had adequate time before signing, the document contains proper wording, and a listing of all financial details, to name just a few.
Sole Inheritances – If one spouse receives an inheritance, that specifically bequeaths solely to them, and they keep the inheritance separate from all marital finances, it can be the sole and separate property of one spouse.
Social Security Benefits – Under federal law, social security benefits are always separate property. However, the amount of the benefits are routinely considered when dividing assets and debts during divorce.

Many believe that community property laws are straightforward. They interpret a community property state to mean that all marital property is divided fifty-fifty during divorce. The reality is that Nevada community property laws are fraught with legal gray areas. Factors such as prenuptial agreements, ownership prior to marriage, inheritances, and commingling of separate and community funds are examples which can affect the division of assets and debts during divorce.

Nevada Community Property Law Experts

Our Las Vegas divorce attorneys possess the knowledge and experience required to successfully navigate the intricacies of community and separate property. They will speak with you directly regarding a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Divorce and Business Valuators

Posted on May 18, 2020 | by The Abrams Law Firm LLC

Most business owners invest their savings and countless hours to make their business a success. And with almost half of new businesses failing within five years, there certainly are no guarantees. So when one or both divorcing spouses own a business, the process becomes complicated. Every business owner should know about divorce and business valuators.

Establishing the value of a business is a critical element for marital property division in a divorce. Typically only one spouse will own the business after the divorce concludes. Therefore, determining the value of the business in a divorce is an important factor because the other spouse must be compensated for their share of the marital asset.

Business Valuators

A business valuator is an independent professional that assess the value of a business. The business valuator compiles and analyzes the business’ financial and operating statements. These can include bank statements, inventory reports, tax returns, financial statements, and other documents. They may also conduct onsite interviews with senior staff members and key executives. Current market trends, the competitive environment, and earnings history are also valuation considerations.

Choosing the Proper Valuator

Valuing a business, whether for a divorce or not, is part art and part science. The professional opinions of reputable valuators may differ based on a variety of variables. So it’s preferable that the divorce attorneys for both spouses agree upon the selection of the business valuator. However, this is not always possible. But without such an agreement, one spouse may seek the assessment of a second business valuator. This doubles the valuator expense in divorce proceedings.

Business Valuator Accreditations

Business valuators have specific requirements in order to achieve licensing. They must possess one or more advanced degrees and/or certifications. Each has their own set of requirements that valuators must adhere to. Advanced examinations, years of dedicated experience, and annual education commitments are necessary to achieve licensing and to keep an active status. The following is a partial list:

Certified Public Accountant (CPA)
Master in Business Administration (MBA)
Accredited Senior Appraiser (ASA) from the American Society of Appraisers (ASA)
Certified Valuation Analyst (CVA) from the National Association of Valuation Analysts (NACVA)
Certified Business Appraiser (CBA) from the Institute of Business Appraisers (IBA)
Accredited in Business Valuation (ABV) from the American Institute of CPAs (AICPA)

There are approximately 5,000 business valuators in the United States. However, not all accredited business valuators are certified as experts by the Clark County Family Courts. In order for their reports to be entered as evidence or for them to testify in divorce cases, business valuators need expert certification from the court.

Business valuators focus on the value of the business using several accounting methods. Understanding the limits of what a business valuator does is essential. It’s equally important to know what they don’t do. Business valuators prepare their reports using existing financial and market related data. Sometimes one spouse attempts to mask the value during divorce proceedings. But unless the business’ financials are obviously inaccurate, the valuator will not dispute the information provided to them. That’s the job of forensic accountants.

Intangible and Real Estate Assets

The business valuator also looks at intangible assets such as intellectual property rights, celebrity name value, patents, and trademarks – to name a few. Technology and entertainment businesses in particular have these types of intangible assets. Real estate properties also affect valuation. Appraisals are necessary to determine the current market value of commercial properties.

Professional Practice Valuations

Professional practices owned and operated by lawyers, dentists, real estate brokers, chiropractors, doctors, and other professionals are valued differently. These businesses require business valuators with specific professional practice valuation experience. Professional practices typically do not possess substantial physical assets, with the exception of real estate holdings or owned equipment. Therefore, a sizeable portion of the value is goodwill. In one sense, goodwill is based on the past performance of the business and the likelihood that the business will continue to generate income. Goodwill can also be the reputation of the business in the community it serves.

The goodwill value of a professional practice is often directly associated with the owner/ practitioner. This is particularly true when it comes to businesses run by a solo practitioner. In these practices, the owner’s labor is required in order for the business to generate income. The value of a professional practice, including goodwill, is like any other asset during the divorce process and thus part of the division of marital assets between you and your spouse.

Expert Divorce Attorneys

Our firm only retains accredited and court certified business valuation experts on your behalf. Our Las Vegas divorce attorneys possess the experience necessary to use the business valuation report in order to protect your interests. One of them will speak to you directly and assist you in setting up a consultation. Call our office at 702-222-4021 to see if what we offer is right for you.

Las Vegas Alimony Awards

Posted on April 27, 2020 | by The Abrams Law Firm LLC

The financial dealings in a divorce case often include a consideration of whether alimony is appropriate. Long term marriages generally have more positive alimony related factors than short term marriages. Las Vegas alimony awards are a form of financial support provided to one former spouse by the other. Either divorcing spouse can make a request for alimony. Gender is not a factor in determining whether alimony is suitable; both husbands and wives can pay or receive alimony.

Alimony awards may be appropriate, but are not mandatory, in Las Vegas divorce cases. There are no specific statutes in Nevada law which defines exact alimony amounts or if alimony is even suitable in a specific divorce case. Instead, alimony awards are based on the abstract concept of what is “just and equitable”. This imprecise definition leaves a great deal of latitude when it comes to determining alimony amounts and payment terms.

Alimony Payments

Alimony awards often entail regular payments for a specified length of time. However, in some cases, a lump sum payment covers the alimony issue. In rare cases, an ex-spouse may receive life-long alimony payments. These cases are typically based on “long-term” marriages. But just like the other alimony factors, Nevada law does not specify the number of years for a marriage to be long-term.

Alimony awards can be either non-modifiable or modifiable. When an alimony award is modifiable, a “change in circumstances” can cause the amounts or terms to be modified. A variety of conditions can trigger a change in circumstance. The most common examples are: The former spouse receiving the payments remarries, or; the former spouse making the payments becomes unemployed or disabled.

Tax Implications

Due to new IRS tax regulations, the former spouse receiving the alimony payments does not claim the payments as taxable income. The former spouse making the payments also does not report the payments as tax deductible. As with all tax related matters, you should consult with a qualified tax professional to understand your specific tax status.

Prenuptial Agreements

Prenuptial agreements that expressly address alimony can affect alimony awards and payment amounts. The validity of the prenuptial agreement is critical. Prenuptial agreements must meet certain criteria to be valid and enforceable. In cases where a prenuptial agreement is invalid, the resolution of alimony issues, as well as community property items, become negotiable.

The Tonopah Formula

Nevada law does not include any specific alimony statutes. However, some family court judges use the Tonopah Formula when considering alimony issues. The Tonopah Formula considers a number of factors including, but not limited to:

The relative financial condition of each party after their divorce matter concludes.
The length of the marriage.
The spouses’ careers prior to marriage.
The relative ages, health, formal education, and earning incomes of the divorcing spouses.
Child support payment amounts, if any.

The amount and payment terms of alimony awards are determined by:

Successful negotiations between your divorce attorney and the attorney representing your spouse, or;
The judge will consider the evidence and render a decision regarding the alimony issue and payment terms of the award, if any.

Alimony Professionals for You

Issues related to alimony awards are different for each divorce case. There is no single mathematical formula for calculating alimony awards. Our Las Vegas alimony attorneys have extensive experience with each of the Clark County Family Court judges. Therefore, they know if, and what amounts of alimony awards, can be reasonably expected based on the specific circumstances in your case. They will speak with you directly regarding a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

What Are Hidden Assets in Divorce?

Posted on February 14, 2020 | by The Abrams Law Firm LLC

Divorcing spouses in Nevada have to disclose their financial condition to the court. This includes a full listing of all their assets. This procedure is meant to ensure that all marital assets are disclosed and therefore subject to division during their divorce case. However, there are instances where spouses try to hide assets through unfair means. Our divorce attorneys in Las Vegas provide valuable information about marital finances, including what we do to uncover the hidden assets for your benefit.

What Are Hidden Assets?

Hidden assets are valuable possessions and assets that one party intentionally conceals from another. Spouses do this to attempt to cheat their soon-to-be-ex out of a share of assets that are rightfully theirs. The best divorce attorneys well aware of this tactic. They always advise to investigate marital assets and finances thoroughly. There are times where hidden assets are uncovered and times where they are not. In any event, a thorough investigation into all marital finances puts your mind at ease.

Common examples of hidden assets include:

Unreported retirement accounts or under-reported tax returns
Overseas bank accounts and real estate properties
Undisclosed business assets purchased with marital funds
Hidden luxury items and valuable possessions
Secret funds transferred or withdrawn from a business to a shell company

The above list is not all inclusive. There are numerous other ways a dishonest spouse can conceal assets. Your best bet is to retain a high net worth divorce attorney familiar with such cases. They know how to thoroughly vet all marital finances and uncover hidden assets during divorce matters. Our experienced attorneys also add a clause in the decree of divorce that entitles you to receive a share of marital assets you might discover after your divorce case concludes.

Is Your Spouse Hiding Assets?

If you suspect hidden assets, retracing your marital and spouse’s financial activities is a practical way to start. If your inquiries uncover items that cause you concern, our attorneys will retain a forensic accountant to conduct a formal investigation. However, the whole process is highly complex and time-consuming. That’s why we advise our divorce clients to look for a probable cause for their suspicion. This is to minimize the chances that the forensic accountant isn’t searching for something that doesn’t exist.

Here are a few warning signs you should consider:

Has your spouse ever lied about their salary and/or other income?
Do you have access to all bank account details and passwords, including those for a spousal owned business?
Did your spouse ever withdraw a significant amount of money to pay off an alleged debt?
Have you noticed unusual transactions from your joint accounts?
Do they hide information on financial investments from you?
Are they frequently transferring funds to offshore bank accounts or other vehicles without your knowledge?
Do they make contradictory statements about financial matters?
Have you checked your safe deposit box to make sure that everything is there?

Our Divorce Attorneys in Las Vegas Can Help You

Recovering hidden assets is not a simple process. Our attorneys have a successful track record in locating hidden marital assets. As a result, your spouse’s misconduct doesn’t deprive you of what’s rightfully yours. Our Las Vegas divorce attorneys will speak with you directly regarding a consultation. Call our office at 702-222-4021 to see if what we offer is right for you.

Las Vegas Divorce Guide for Business Owners

Posted on November 16, 2019 | by The Abrams Law Firm LLC | Leave a Comment

Getting a divorce is a difficult situation for both spouses. It’s more so if the divorce involves a small business. Business owners going through divorce inherently have a complex divorce matter. Therefore, we’ve created this Las Vegas Divorce Guide for Business Owners. Your business may be the largest marital asset. One or both spouses likely worked long and hard to build it. Now it’s time for a new phase and the challenges that go with it. This guide is not a substitute for, nor is it meant to be, direct legal advice. Rather our Las Vegas divorce attorneys offer the guide as an overview of the important issues that any business owner needs to consider during divorce proceedings.

In this article we discuss:

Business Ownership
Prenuptial and Postnuptial Agreements
Buy/Sell Agreements
Outside Investors
Commingling Business and Community Funds
Establishing the Business Value
Business Valuators
Business Goodwill
Professional Practice Businesses
High Growth Businesses
Who Gets the Business?
Spousal Buyouts
Maintaining Profits During Divorce
Your Role in Divorce Proceedings

Business Ownership

Often times both spouses have, or claim to have, some form of business ownership. In divorce cases, there are several factors that can affect business ownership. These include prenuptial agreements, postnuptial agreements, outside investors, buy/sell agreements, and commingling of community and business funds, to name a few.

One or both spouses may own the business in its entirety. It’s also possible that outside investors have an ownership stake. Nevada community property laws are a significant part of marital business ownership. These statutes are complicated and there are a lot of “gray areas.” So only divorce attorneys with considerable experience in the finer points of financially sophisticated divorce cases should be representing you. Buyer beware. An inexpensive divorce attorney may seem like a business bargain at first. That is until you realize that you’re at a serious disadvantage and have to change attorneys in the middle of your case.

Prenuptial and Postnuptial Agreements

A prenuptial or postnuptial agreement can affect business ownership rights. These agreements must be valid in order to be enforceable. Again, the validity and therefore enforceability of these agreements is complicated. Just because the agreement was signed doesn’t mean it was drafted and/or executed properly. These agreements are “thrown-out” of divorce cases all the time. Most importantly, if an agreement is ruled unenforceable by the family courts, Nevada community property statutes prevail.

Buy/Sell Agreements

A Buy/Sell agreement is similar in nature to other marital agreements, however Buy/Sell agreements typically only govern the business specifically. A Buy/Sell agreement is often used when there are partners and/or other investors in the business. These agreements should always define the terms and conditions if the spouses divorce. Once again, any agreement can be contested in court. If the Buy/Sell agreement is deemed to be unenforceable, the terms of the agreement can be disqualified and Nevada community property statutes apply.

Outside Investors

Funds from outside investors also affect the business ownership percentages of the divorcing spouses. These investors are often family members of one divorcing spouse, or friends of one or both spouses. This situation adds an additional financial, and sometimes emotional, dynamic to the divorce matter. Divorcing spouses make outside investors wary because the outcome is unknown. Investors dislike uncertainty.

Commingling Business and Community Funds

Barring an enforceable marital agreement, funds earned prior to marriage can be viewed differently than funds earned after the date of marriage. Often the funds used to start or build the business were a combination of both. Determining the origination of funds is also a complicated process. Our attorneys are familiar with these situations. They often employ a forensic accountant to determine the premarital and post marital sources of business funding.

Establishing the Business’ Value

Most business owners reading this guide own a private company. So the stock of the business isn’t publicly traded and therefore the business’ value needs to be established. In these cases, hiring a business valuator to produce a business valuation report is necessary. The report will state, among other things, an opinion of business’ value according to several methods. These can include: cash, book, investment, fair market, and future earnings values. Additionally, the goodwill value of a professional practice can be a complex business value issue.

Business Valuators

The professionals that investigate the business and present their value findings in a report are called business valuators. It’s important that your attorney is well versed in both the business valuation process as well as the individual business valuator. There are various levels and some valuators are more suited to certain industries and/or business models than others.

Business valuation reports come in numerous formats. Each report is a custom project that details the value of a unique business entity in several ways. In addition to opinions of value, the report typically includes general geographic / demographic data about the business’ locale. It also includes specific information about industry health and trends, and numerous financial and other details regarding the business.

Business Goodwill

The business valuation process is not an exact science. This is particularly true when valuing the goodwill of a business. Goodwill, in a very general sense, is the value the business carries as an on-going concern. In addition to goodwill, knowledgeable divorce attorneys are aware that business valuations are also complex when dealing with intangible assets. Examples of intangible assets are: patents, copyrights, trademarks, brand recognition, customer lists, special licenses, and trade secrets.

Professional Practice Businesses

The value attached to a professional practice business also comes with its own set of complexities. Typically a business that requires a special license, in addition to the standard business license, is considered a professional practice. These include medical offices, law firms, architectural companies, CPA firms, real estate brokerages, etc. Absent real estate holdings or owned equipment, the value of a professional practice is often heavily dependent on the intangible asset of goodwill.

High Growth Businesses

Future earnings are typically a significant factor when determining the value of a high growth business. Businesses that are experiencing rapid income growth are difficult to value comparatively. If you and/or your spouse have a business that is experiencing a substantial growth in income, the previous and current earnings may be irrelevant to future earnings. Valuing a business that is experiencing a significant income upswing requires careful examination of the internal and external factors causing the growth.

Who Gets the Business?

Divorcing spouses must decide whether to sell the business to a third-party or to have one spouse buy out the other. If one spouse wants to keep the business and the other does not, or if only one spouse holds a special license needed to own and operate the business, this decision is easy. The only aspect left is establishing a value and the terms of the spousal buyout.

But what happens when both spouses would like to keep the business. This can cause an impasse in the divorce settlement negotiations. One way to resolve this is to hold an auction for the buyout amount between both spouses. At some point one spouse will be willing to pay more than the other for the business.

Spousal Buyouts

There are no set rules when it comes to structuring a divorce settlement including the buyout of a business. It’s whatever both spouses agree to. One of the most common approaches is to work out a trade-off of one asset for another. For example, let’s say that the business has an agreed upon value of $900K and you and your spouse are equal partners. You want to keep the business and your spouse agrees to a buyout amount of $450K. Here’s the problem – you don’t have the $450K in cash.

But you do have 50% of the equity in the house and your share is worth $400K. Trading off your share of equity in the house lowers your cash requirements down to $50K. You can continue these trade-offs with other marital assets as long as your spouse agrees to the terms. If you still have a liability remaining after these asset trades, a term note with a nominal interest rate often solves this problem.

A note of caution: You should make sure that the payment terms will not negatively impact the business’s cash flow. The same goes for your desired standard of living after your divorce concludes. Making smaller payments over a longer time period is always a better choice.

Maintaining Profits During Divorce

Many business owners facing divorce have valid concerns that the business may suffer during the divorce proceedings. Even the most agreeable divorce cases can take the focus off of growing and/or running the business. If the divorce is less than amicable, as many are, the business operations can take a serious hit until the divorce matter concludes.

So what do smart business owners do in these situations? They remain smart. They throttle down their emotions in order to minimize the impact on the business. It’s usually not realistic to think that there will be a completely smooth transition. But making a concerted effort to keep your cool will pay big dividends. Smart business owners also seek the advice of experienced legal counsel. Your rights and business are best protected by hiring a divorce attorney who has handled many similar divorce cases before.

Your Role as a Business Owner in Divorce Proceedings

Business owners in divorce proceedings should prepare themselves for a totally different role than the one they occupy when running their business. This cannot be understated. After years of running your own business you may be accustomed to people doing as you tell them. In your divorce case…not so much. All the inherent power of authority and control that you enjoy as a business owner have no bearing in divorce matters. The laws of the State of Nevada and the family courts are the “business owners” in divorce proceedings. What they say goes. Family court judges take a dim view of anyone who thinks and acts otherwise. Experienced attorneys are skilled at handling these situations. They understand that preparing you for the divorce process and providing guidance throughout your case is critical.

We hope you’ve found this information from our Las Vegas divorce attorneys valuable. They will also be glad to speak with you directly regarding a consultation. Call our office at 702-222-4021 to speak with one of them and see if what we offer is right for you.

Protect Your Privacy in Divorce

Posted on November 16, 2019 | by The Abrams Law Firm LLC | Leave a Comment

Las Vegas divorce proceedings are a rare event to most people. Therefore, the participants don’t realize that all divorce information is a matter of public record. That is unless your divorce attorney knows how to protect your privacy in divorce cases.

Public record means that anyone can attend your divorce court hearings. They can also see a summary of divorce case filings online. What’s even worse, they may get copies of your divorce case file by just by asking the court clerk for it. This file has all your personal divorce information. This includes the names of your children, child custody plans, and personal finances. If you or your spouse owns a business, confidential business information may also be in the file.

Divorce Privacy – It’s Not Just for Celebrities

Sealing a divorce case is almost always done by celebrities. But you don’t have to be a celebrity to want to keep your personal information private. Therefore, everyone who wants to deserves to keep their private life away from prying eyes.

How to Protect Your Privacy in Divorce

Our divorce lawyers know how important privacy can be to some people. One way we can protect you is to seal the divorce case from public view. The process of sealing a divorce case requires the proper court filings and court approval. Once the family court judge signs the Order to Seal your privacy is protected. Only the divorce attorneys of record for both spouses can see the court filings. No one else has access to the file. That means that family members, friends, neighbors, co-workers, and employers can never see your private dealings.

Ask to Seal Your Divorce Case

Not everyone going through a divorce in Las Vegas cares if their case is private. So it’s always best to ask your attorney to seal your case if it’s important to you. Please contact our office at 702-222-4021 if you’d like to discuss protecting your privacy during divorce proceedings.