Trends In Family Law
Over the past five years, there have been many changes in family law. Some have slowly emerged, while others appeared without much warning. A good divorce, like anything else, requires planning. A few of the changes include the child benefit by the Federal coronavirus bill, trends in custody awards, the importance of mental health issues in custody awards and the changing use of retirement savings.
Starting on July 15, 2021, the Internal Revenue Service began delivering a monthly payment of $300 per child under 6 and $250 per child 6 or older for those who qualify. Monthly benefits are deposited in qualifying families’ bank accounts on the 15th of each month. This benefit and the three 2021 Federal Stimulus offerings have been important financial assistance for eligible families. When drafting a Marital Settlement Agreement, it is important to consider the $300 per child/per month benefit and how future stimulus payments may be allocated. Often, Federal payments like these payments are deposited into an account that only one now controls and that party sometimes refuses to equitably share the monies.
Child custody awards are gradually changing. Fathers are receiving more custody and parenting time than in the past. There is no longer a presumption that child custody should be awarded to Mothers simply based on gender. The law says neither parent is to be favored because of gender. Courts and society better appreciate that children need strong relationships with both parents. However, inherent biases are still present.
Careful attention to a parent’s mental health issues is also a trend. Mental health issues and addiction diagnosis, counseling and treatment are now common elements during divorce. Working with a mental health professional prior to a divorce action is wise.
Treatment of retirement savings has evolved. Often, parties have significant marital debt and must cash out retirement savings to meet cash flow needs for two households. Although cashing out retirement comes with tax liability, many couples have no choice. One strategy available is awarding retirement funds to the party with the lower tax rate and requiring that party to pay specified marital debt with the net 401(k) award. This can be especially helpful when the 401(k) cannot otherwise be cashed out.
These are a few of many changes that could impact a divorce. Contact our firm to discuss your specific needs.
