In order to help their family thrive, many grandparents financially support their adult children and grandchildren. For example, let’s think about a couple that lives in Manhattan with an income of $350,000 – $400,000 a year. In many places, that would be a decent amount of money. If someone’s living on the Upper West Side, Upper East Side, or SoHo, it’s not nearly enough. In these situations, grandparents often give their children very large sums of money on a routine basis as well as make direct payments towards expenses like the grandchildren’s private school tuition and high-end camp experiences. 

I wrote an article called “Good Samaritan Divorce,” which talks about how the Good Samaritan often gets “punished” in some way. For your convenience, you can read the article here.

What does this have to do with matrimonial law? There are standards and statutes in matrimonial law, and grandparents’ consistent and unwavering financial support can affect the support payments. The general support standards are set forth in “The Child Support Standards Act” and “The Notice of Guideline Maintenance” – advisory guideline statutes for child support and spousal support (aka maintenance and alimony). 

The golden rule is maintaining the standard of living.

At the outset of a divorce case, both sides are required to accurately complete, legally acknowledge, and file with the courts a comprehensive document called a Statement of Net Worth, which sets forth the standard of living. 

The standard of living analysis is the most critical and guiding factor in negotiating support and arriving at a final agreed upon amount. The system wants children’s material lives to remain intact. The system wants the lower income earning spouse to have a window of time when they are getting support from their higher earner ex to give them a cushion and bridge towards being more self-supporting. 

I’ve had many cases where grandparents steadily gave money to their children’s family throughout the marriage to subsidize housing, car payments, parking, vacations, and tuition – like a weekly or monthly allowance, but for adults.

If the couple divorces, the idea of imputation comes into play.

Imputation: The assignment of a value to something by inference from the value of the products or processes to which it contributes.

Let’s say it was the husband’s father that helped support the family, the wife is going to want to come after that additional money, even though it doesn’t show in the husband’s W-2 or tax returns – that’s the inference.

Some grandparents feel like imputation codifies an agreement that would have happened anyway. Other grandparents react differently and chafe at the idea of being required to do anything. They also don’t want to be passengers on the roller coaster of their child’s divorce. 

In many instances, grandparents enter into promissory notes with their child for some or all of the funds they give – thereby making their child their debtor. They are trying to ensure that the monies are legally recorded as debts and not gifts or supplemental income. This is done to shield both the grandparent and their child in the event of a divorce. Both the grandparent and child should, however, consult with a qualified attorney when navigating this strategy. 

Understanding imputations and standard of living analyses takes a skilled matrimonial attorney – and the more experience they have, the better. Contact me at The Law & Mediation Office of Cheryl Stein to schedule a consultation.

Cheryl Stein, Esq.
The Law and Mediation Offices of Cheryl Stein
745 Fifth Avenue, Suite 500
New York, NY 10151
Phone: (646) 884-2324
E-mail: cheryl@cherylsteinesq.com

The post Required Reading for Involved Grandparents appeared first on Cheryl Stein, Esq..

Prenuptial Agreements:  

Many citizens who marry immigrants choose to have a Prenuptial Agreement in place prior to entering the marriage. 

Prenuptial Agreements are a sound measure for their protection and I highly recommend them. But, if you are doing a Prenuptial Agreement, you need to do it the right way. Make sure you are not just pushing meaningless ineffective paper around that isn’t worth the paper it’s written on. 

Many marriages involving immigrants happen in a speed of lightning way to offer the immigrant protection. The problem is that Prenuptial Agreements should not be done in such a mirrored manner. Chik chak hurried for a Prenup is asking for problems if the Prenup is later questioned and challenged. 

It is especially important that the Prenup be objectively fair and one that a reasonable person of sound mind and not at the heels of utter desperation would sign. 

It is also critical that both parties be represented by attorneys. I am often the lead drafting attorney. My clients time and again ask me if their soon to be spouse really – truly – absolutely needs their own attorney? Like they are willing me to respond something other than an unequivocal, affirmative, and trumpeting YES! 

These Prenups also tend to demarcate all property as exclusive separate property of the parties as dictated by title of ownership. 

While many Prenups do this, the Prenups involving immigrants do so at a higher average than others. Exclusive separate property Prenups, such as these, are an opt out of the New York Domestic Relations Law that dictates that acquisitions after the marriage date are marital, and to be split equitably, regardless of how title is held. 

See, https://www.nysenate.gov/legislation/laws/DOM; https://www.nysenate.gov/legislation/laws/DOM/236.

As we noted in “The Intersection between Divorce & Immigration: Part 1,” joint and commingled finances is one of the cogent persuasive points of evidence the immigration authorities look for to satisfy them that a marriage involving an immigrant is a bona fide marriage. 

So, we need to satisfy the seeming contradiction of a Prenup that designates all property as separate and the immigration authority’s criteria of evidence demonstrating joint ownership and commingled finances. 

We do this by carving out an allowance in the Prenup for a joint household account held in joint names. There is no minimum the parties must maintain in this account. The question becomes how the account funds would be split in the event of a divorce. Cash accounts are most typically split equally in divorce, but for these couples, we often specify in the Prenup that the funds will be split pro rata to contribution so that the spouse who funded it more heavily does not lose out. 

International Travel with Children:

What comes to mind most commonly is a fear that the immigrant parent will abscond with the children back to their native country and create hardship and aggravation for the American parent to get the children back. Depending on the immigrant parent’s country of origin and such country’s recognition of international law and conventions, this can be a real concern. We often work with international experts for these cases. You would also want to look at the Hague Convention and signatory countries to better grasp your situation. Non-signatory countries should justifiably evoke a healthy dose of trepidation and concomitant precautionary measures to ensure the children remain safely on American soil. See here to learn more:

https://travel.state.gov/content/travel/en/International-Parental-Child-Abduction.html

Another aspect though is the perspective of the immigrant parent. They want protection and assurance that the children will be able to travel to their native country to spend time with grandparents and cousins for, say, a summer or long holiday break. The desire for the children to develop a strong relationship with family members abroad and also be immersed in the native culture of the immigrant parent sings loudly. This is often honored by the American parent as they too recognize the enriching benefits this can have on the children. We can address this by specifying in the parties’ divorce agreement the times and parameters for such extended travel and visits the children may have with extended family abroad. So long as the visits are to a country that is a signatory to the Hague Convention, the cost benefit analysis of them weighs in favor of the benefits. 

To learn more about these and further nuances of marriages and divorces involving an immigrant spouse and how to handle them, including: a) VAWA (The Violence Against Women Act, 34 U.S.C. § 12471 et seq.) claims and protections where domestic violence is involved (See here:  https://www.uscis.gov/humanitarian/abused-spouses-children-and-parents); in addition to those cases where, unfortunately, VAWA is manipulated and domestic violence is falsely claimed to gain an advantage; as well as b) difficulty locating your spouse when it’s time to serve them with the summons for divorce because they conveniently disappeared into the thickets of their ethnic enclave communities, contact The Law & Mediation Offices of Cheryl Stein at https://www.cherylsteinesq.com.

Cheryl Stein, Esq.
The Law and Mediation Offices of Cheryl Stein
745 Fifth Avenue, Suite 500
New York, NY 10151
Phone: (646) 884-2324
E-mail: cheryl@cherylsteinesq.com

The post The Interplay Between Divorce and Immigration: Part 2 appeared first on Cheryl Stein, Esq..