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Divorce Newsletters

Fault-based Divorce: Adultery

There can be various grounds for seeking a divorce; adultery is stated as a reason for divorce in the laws of the majority of states that allow fault-based divorces. Adultery is defined as voluntary, consensual sexual intercourse or sexual activity by a married person with someone other than their legal spouse. While intercourse is usually required, something less may amount to adultery under the divorce laws in some states.

Valuation of Closely Held Businesses in Divorce Proceedings

Generally, divorce cases involving thorny property issues can be complicated to resolve. This especially is true when the marital estate includes a closely-held business. A closely-held business usually presents one of two scenarios in the divorce context. The business may be tied to one spouse who is responsible for the business's success. Distribution of the business to one spouse often creates asset allocation and business valuation issues. It presents the problem of valuing the business and structuring the parties' assets and liabilities in order to provide the other spouse with a comparably valued property distribution. If the business depends on the operating spouse's good will and management, which many closely-held businesses do, then the true value can suffer under the emotional stress common in divorce even if the business is distributed to the key-person spouse. A business having one value when operated by the key-person spouse can have a far different value when distributed to the non-operating spouse.

Use of Collaborative Law in Divorce

Collaborative law is a method of family law dispute resolution in which divorcing spouses settle their differences out of court. The trend towards collaborative law developed from a desire to avoid lengthy legal and court proceedings while still reaching a compromise mutually acceptable to all parties. Parties to divorce, their attorneys, and any other professional involved agree to make a good faith attempt to reach an amicable settlement without going to court; collaborative practice is intended to minimize difference while working toward that resolution.

Community Property in Divorce

In a pure community property system, property acquired during marriage other than by gift or inheritance from a third party is presumed to be community property and will be divided equally between the parties in divorce. Property that a spouse brings into the marriage or acquires during marriage by gift or inheritance from a third party is presumed to be separate property. Community property states generally consider a gift from one spouse to the other to be the recipient's separate property.

Grounds for Annulment: Mental Incapacity

Under the law, a marriage is voidable in cases where either of the spouses is incapable of understanding the contract of marriage. Some states hold that if the party is incapable of understanding because of insanity or serious mental disorder, the marriage is void. Some state statutes provide that mental illness can be a ground for annulment if the defect prevents the afflicted spouse from appreciating the contract and conferring thoughtful consent to the marriage.

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