Tag: divorce housing

Inflation and Your Divorce

Posted by Ron Kauffman on

Inflation rates are the highest they have been in 40 years. Around the world couples are under pressure from today’s high costs of living. Many economists are discovering there is a surprising and ambiguous link between inflation and your divorce.

Inflation Divorce

Divorce and Inflation Trends

In the U.S., the annual inflation rate is 6.4 percent for the 12 month period which ended in January. Inflation in the United Kingdom peaked at 11.1 percent last October. The Euro area’s annual inflation is expected to be 8.5 percent.

For families, higher prices at the gas pump can fuel marital conflict and instability. Surprisingly, many economists have noted that in the population at large a high inflation rate can have two opposite impacts: (a) either cause marital break-ups, or (b) make people more appreciative of their marriages.

For example, in the 1980s, the last time inflation was high, divorce rates fell as the recession worsened. Then during the 2008 financial crisis, economists predicted sky-high divorce rates which never materialized.

Critics have pointed out that divorce rates had been soaring since the 1960s, when no-fault divorce laws were enacted. Previously, couples had to prove infidelity, addiction, dangerous behavior or another fault to obtain a divorce. But with the introduction of no fault divorce around the globe, divorce rates started to settle.

Another phenomenon is that across the world, marriage rates have been decreasing since the 1960s. In 1964, eight marriages for every 1,000 people across the EU. That figure dropped by over 50 percent in 2020. In the U.S., the marriage rate stood at six per 1,000 people of the population. This is a decrease from 1990 levels, when the marriage rate was 9.8.

Florida No Fault Divorce

The official term for divorce in Florida is “dissolution of marriage”, and you no longer need to prove fault as a ground for divorce. Florida abolished fault as a ground for divorce.

I’ve written about no fault divorce issues before. The no-fault concept in Florida means you no longer have to prove a reason for the divorce. Instead, you just need to state under oath that your marriage is “irretrievably broken.”

Before the no-fault divorce era, people who wanted to get divorce either had to reach agreement in advance with the other spouse that the marriage was over or throw mud at each other and prove wrongdoing like adultery or abuse.

No-fault laws were the result of trying to change the way divorces played out in court. No fault laws have reduced the number of feuding couples who felt the need to resort to distorted facts, lies, and the need to focus the trial on who did what to whom.

Inflation and your Settlement

The ambiguity around the connection between inflation and divorce is puzzling. Some economic analysts believe that the ability to divorce during inflation may simply be different among households depending on their individual economic status.

Inflation brings higher food, gas, electricity, and housing prices. These price increases impact low income families much more than they do high income families because food costs, electric bills, and gas prices represent a large percentage of lower income households.

Conversely, an increase in prices may even positively impact higher income families because they own more assets and have more expensive properties.

In your divorce, you may have a concern about keeping the marital home for the children. Many homeowners have adjustable rate mortgages – which used to have a small payment over a short-term. Now, however, adjustable rate periods may be ending and the cost of paying for your house can increase dramatically. The high prices for homes, the mortgage rate,. and the increasingly expensive cost of affording a home, can impact your decision to keep your home.

Alimony can also be impacted. There are various forms of alimony in Florida: both short-term, bridge-the-gap, and longer durational alimony. Divorce settlement agreements sometimes spell out guidelines for payments, such as decreasing or increasing the amount paid over time. In some cases, the adjustments in payments can be tied to the consumer price index generally, or fixed to the paying party’s income.

The Euronews article is here.

A Fast and Furious Divorce Property Division

Posted by Ron Kauffman on

Jordana Brewster’s divorce got expensive. The Fast and Furious star’s property division comes at a steep price as she has to buy out her ex-husband from their Los Angeles former marital home.

Fast & Furious 5,000,000

According to news reports, Brewster, 41, agreed to pay her ex-husband, Andrew Form, $5 million as part of their divorce settlement, The figure represents his half of their marital home in Los Angeles, which she will keep.

Additional details of the divorce settlement include that any income Brewster makes from the latest “Fast and Furious” movie is her separate, non-community property.

Her producer ex-husband also agreed that any income either earns “as a result of their personal and professional effort” from May 13, 2020 and beyond “shall be the separate property of the earning party.”

Neither Brewster nor Form will receive or pay spousal support. While a judge still needs to sign off on their agreement, Brewster and Form are legally single and co-parenting their two sons.

Florida Divorce and Property Division

I’ve written about houses and property divisions before. California is a community property state, but Florida is an equitable distribution state. In Florida, every divorce requires the court has to set apart nonmarital property, and distribute the marital property.

Florida judges always begin with the premise that the property distribution should be equal, unless there is a reason for an unequal distribution based on several factors.

One of the factors the court has to consider is the desirability of keeping the home for the kids or a spouse, if it’s equitable to do so, if it’s in the best interest of the child, and financially feasible.

Some spouses decide to sell but schedule the sale months or years into the future. This happens when a couple has kids, and both parents agree that the house shouldn’t be sold to preserve the school district or allow for easier timesharing.

There are other problems in a keeping a house in which your name is still on title. In the even that your ex-spouse does not pay the mortgage timely, your own credit will suffer the late notices.

And, if someone invited to your old home is hurt, that person will sue the record title owners for their damages. If your name is on title as an owner, that’s you! Making sure you have decent insurance on the house may be in order.

Many communities are experiencing a red hot real estate market. If you can’t wait for years, and need to sell immediately, there’s a silver lining in addition to this being a seller’s market. A fresh start and new beginning after a complete division of all of the assets tying you together with your Ex is the best way to go forward for some people.

However, there’s a cost of sale. When you sell your house, you pay a commission, and other expenses, like taxes, title expenses, repairs which can average about 10 percent of the sale price.

The California Marriage Massacre

Brewster and Form met while working on “The Texas Chainsaw Massacre: The Beginning.” Form was a producer on the film.

“We started dating in secret — you know, hanging out in my trailer — because it would have been unprofessional otherwise,” she previously told InStyle Weddings (via People). “But every day, Andrew wore these work boots to the set, and if I was lying down in the shot or there was equipment in the way, I’d look for his shoes. It was comfortable just to know he was nearby.”

They called it quits after 13 years of marriage in June 2020, and the actress filed for divorce the following month. In a deeply personal essay she wrote for Glamour, Jordana says she was compelled to divorce Andrew due to their vastly different schedules.

‘Most of why my marriage didn’t work was not my ex-husband’s fault,’ she said. ‘He loves work. He loves being on set, on location. I knew this from ages 27 to 32, but it became a problem for me once the kids were older. I wanted a partner.’

‘So, toward the beginning of the pandemic, Andrew and I decided to separate. The combination of being apart for most of the year for many years and growing apart emotionally took its toll.’

Just days after their separation, Jordana would reconnect with her current boyfriend Mason Morfit, whom she first met a few years earlier when they were both still married to other people.

‘Four days after I separated from Andrew, I was on a plane to San Francisco to visit this man I had met only once but who had stayed on my mind. I knew he’d been separated for two years. I wanted to see him, to confirm whether the image I’d built up in my mind matched reality. What I got was far more than I expected.’

During a time when the world avoided all contact, when it was mandated that everyone stay six feet apart, Mason and I blended into each other.’

The couple shared a five-minute long embrace and a kiss when they reunited at the airport. As far as Andrew, the movie producer has since moved on with actress Alexandra Daddario, who debuted their romance in May 2021 with a kissing snap.

‘I love you . . . and even that is an understatement,’ she captioned the photo.

The Fox News article is here.

An American learns about Divorce and Housing in Saudi Arabia

Posted by Ron Kauffman on

An American nurse involved in a long divorce battle in Saudi Arabia, and claims authorities have consistently discriminated against her because she is a foreign woman, is getting a quick lesson on who pays for temporary housing costs in the desert kingdom.

Divorce Housing Costs

Shifting Sands

Teresa Malof, 51, says she has been mistreated in her attempts to divorce her ex-husband Mazen al-Mubarak, the father to her three children. Malof, who is originally from Cincinnati, Ohio, married al-Mubarak in 2000 and filed for divorce in 2015. While the divorce was approved, the settlement is now bogged down in the courts and entering its fifth year.

al-Mubarak, the son of Saudi Arabia’s former ambassador to Qatar, has used his wife’s unfamiliarity with the Saudi legal system and inability to speak Arabic to turn the tables against her, she told Insider.

The most obvious injustice, in Malof’s view, is that al-Mubarak lived alone in a house in Riyadh for many years, for which she paid the mortgage of $2,831 a month for years while he lived in it alone.

According to Insider, which has reviewed official Saudi court documents, the court documents confirm that she launched legal proceedings to evict her ex-husband, made payments for the house while he lived there, and that she submitted formal complaints about the judge’s conduct.

It came to a head in August 2018 when she broke into her house and changed the locks while al-Mubarak was abroad, she said. Malof claimed that recently the judge in her case abruptly annulled her divorce, making her technically married again. Malof contends that the judge did not have the power to do this.

“I just want it to be finished,” Malof told Insider. “Foreign women are discriminated against here in the courts.”

The US Embassy in Riyadh confirmed to Insider that it was assisting Malof. US Embassy press attaché Peter Brown said: “We are aware of the case and providing appropriate consular services. Due to pending legal proceedings, we have nothing further to share.”

Florida Divorce Housing Costs

I’ve written about the marital house during a divorce before. In a dissolution of marriage, temporary alimony can be awarded so that the home mortgage is paid for. Each party’s sources of income and ability to pay are factors to be considered in determining whether alimony is appropriate, and if so, in what amounts.

There are a few other issues when it comes to housing in divorce:

Children’s Issues

Until a divorce parenting plan in place, if you are interested in maintaining a meaningful relationship in your child’s life, leaving the home before a timesharing agreement is entered may show a lack of real interest in the child’s daily life.

Moving out can create the appearance of a new ‘primary residential parent’ by default. Worse, if the process takes a long time, it creates a new status quo.

Cost

The person leaving during a divorce may still have to contribute for the expenses of the home while also paying for a new home. It can be costly, and prohibitive expensive when you know that the process will take a long time.

Settlement

Staying in the same home could create an incentive to negotiate a final settlement because living with your soon to be ex-spouse is very uncomfortable. However, if someone moves out, the person remaining in the home is sitting pretty and may be less inclined to settle.

Fold Up the Tent?

Malof told Insider that her house, in the al-Khozama district of Riyadh, was part of the agreement when the two split. She said al-Mubarak agreed to pay for $183,000 for it, but has yet to produce the money. Malof has been prevented from selling the house by the judge’s decision to freeze the deed at the request of al-Mubarak. Malof has compiled a wide-ranging list of grievances against the court.

She claims that the judge has held court hearings without her knowledge, has omitted evidence from court minutes, has refused to give her an interpreter, credited her with making statements that she never uttered, and has met with al-Mubarak separately behind closed doors.

Malof says she was not informed of hearings on April 11, June 25, and September 5 last year. The last of these, she says, was the one where the judge froze the deed on her house, blocking her from selling it. Malof told Insider that the judge “has put several times in the minutes that there is an ‘agreement’ between me and al-Mubarak and the house is shared, which is not true.” Minutes are the formal legal record of how a case is progressing.

The case follows that of Bethany Vierra, a US citizen who became trapped in Saudi Arabia by the Kingdom’s guardianship laws in March, and later lost custody of her child when her ex-husband used images of her in a bikini to show she was unfit to parent.

Malof’s and Vierra’s stories highlight the reality for non-Saudis under their legal system, which is based on the Qur’an, which contains God’s revelations to the Prophet Muhammad, and the Sunnah, the traditions of the Prophet Muhammad.

In some cases, evidence submitted to court is invalid unless witnessed by two Muslim men.

Malof was given an attorney by the Saudi government’s Human Rights Commission at first, but has now hired her own, Hazim al-Madani. “I have lived in this country for more than twenty years” she told Insider. “Going public and talking badly about Saudi Arabia has never been my goal. However, what choice do I have?”

The Insider article is here.