Divorce Different

by Jef Henninger, Esq. Serving all of New Jersey.

Break the log jam by pushing it to the side

Posted by jefhenninger on January 16, 2010

A settlement negotiation is often like putting a puzzle together.  You have all of these pieces that have to eventually fit together and when the puzzle is solved, the case is over.  When there are many pieces left to put together, one of them can bog down the entire case.  As a result, nothing gets accomplished and the puzzle is not even close to completion.  In other words, there is a log jam.

The funny thing about log jams is that they are often not the most important issue to the case, at least to a rationale observer.  Instead, they are often one of the most emotional issues in the case and thus, you have a fairly unimportant issue bogging down the case. Of course, there are times when the most major issue is holding up the case.

Regardless of why the log jam exists, it has to be cleared or the case will drag on.  Some puzzle pieces are linked to each other.  In other words, you’ll only give up one piece in exchange for another.  So, in order to break the log jam you first need to figure out what pieces are related to the piece that is causing the jam.  If you cannot separate these pieces, they are also part of the log jam.

Once you have figured out the real problem spots, see what is left on the table.  Push the log jam to the side and work out those issues.  If you can start to agree on the balance of the issues you will both see that the two of you can come to an agreement without going through World War 3.  Hopefully, this will create some momentum so that when the only issues left are the log jam issues, you will re-examine your original position on these tough issues.

While it may not work every time, I have seen time and time again how those tough issues that threatened to derail the whole case became complete non-issues once the parties have pushed it aside for a while only to return to it after having worked through the other issues in the case.  

There are any number of reasons for why this occurs, but one explanation is that the more two people fight about an issue, the more they dig in their heals.  Instead of fighting over an asset in the divorce case, they are actually just fighting each other.  Conceding their position in anyway is a sign that the other party beat them down into submission because they are weak which neither side wants, so the fight continues. 

Pushing the log jam to the side stops the fight and shows both parties that they can work together to come to an agreement.  Now that emotions and nerves are calm, they can re-examine their positions from a rationale posture.

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The Cost of a New Jersey Divorce

Posted by jefhenninger on January 16, 2010

When it comes to divorce, there is one question that everyone asks no matter what their situation is.  How much will my divorce cost?  In other words, how much will your final bill be?  It is a question that is impossible to answer. 

Many people get concerned due to the horror stories that they have heard from friends and family about how they spent tens of thousands of dollars in legal fees associated with their New Jersey divorce case.  In my opinion, it is unethical to give any type of estimate since there is no way that I can predict the future as to what you will do and what your spouse and his/her lawyer will do.  There are just too many variables.

If you believe that you need a lawyer for your divorce, then you cannot escape some legal fees.  I tell my clients several things to give them a few ideas about what the final bill may look like.  First, our goal is to get the best possible result for the best possible price.  I think this only makes sense because if you spend $30,000 to fight over something that is worth $10,000, you are out $20,000.  That was not a great result in the end was it?

I also explain that we are looking to set up life-long relationships with our clients.  We want to be the go-to lawyers for all of your legal needs for you and your family.  We can’t exactly do this if you feel that your bill was artificially inflated.  Thus, we have a long-term financial interest in keeping your bill reasonable.

Furthermore, I teach my clients how to save money.  Some of those tips are on this blog.  Who else does this?  Not too many lawyers that I know.  Finally, I explain that a majority of my divorce cases settle for less than what another lawyer may take as an initial retainer.

In the end, while I cannot guarantee a final cost, I can assure them that my office will do whatever it takes to make sure that at the end of the case, they will feel that my representation was not only worth the money, but that the cost was reasonable.

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Getting your spouse to pay for your lawyer

Posted by jefhenninger on January 16, 2010

It seems like no one ever wants to pay for their own divorce lawyer.  I often get asked if the other spouse can reimburse them for counsel fees.  Since almost every case settles, that is something the other side would have to agree to.  I suggest you speak to your lawyer about that but it rarely happens.

The more important issue is what to do if you cannot afford a lawyer because your spouse is the one with all the money.  In New Jersey, you can file a motion (through a lawyer or on your own) to have the Court order your spouse to pay for your counsel fees subject to equitable distribution.  That means that while the spouse must give you the money now, you may have to pay that back, usually via an offset, at final settlement. 

Of course, if your spouse already has a lawyer, the best course of action may be to have your prospective lawyer call the other lawyer to try to resolve this out of court. 

Finally, in order for all of this  to work, you must show that you cannot afford a lawyer.  Bringing this motion just because your spouse makes more than you may be a very bad idea if it is shown that you have the income/assets to afford representation.

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How long does it take to divorce in New Jersey?

Posted by jefhenninger on January 3, 2010

In New Jersey, there is no real time limit to a divorce but it will end at some point even if it doesn’t seem like it.  New Jersey courts are “graded” based upon how fast they move cases.   The cut off mark for a New Jersey divorce case is one year.  Of course, there are plenty of cases that drag on for two years or more.  Thus, I would say the average case takes 9 to 12 months to settle. 

However, in my practice, I prefer to settle cases in 3 to 6 months.  I have settled cases in a matter of weeks, but that is a rare event.  What really eats up a lot of time is the production of discovery.  If both sides keep good records and can exchange all discovery in a few weeks, than most cases can settle within 3 months.   

There is almost never a delay with the court.  I can call up most judges and get into court within a week to put through a settlement.  Courts are happy to move another case off the calendar.  Thus, the length of your divorce case will depend, largely on you and your spouse.  If you want it to move quickly, you can both make sure it will.

Jef Henninger, Esq. is a Monmouth County divorce attorney with offices in Eatontown, Red Bank and Freehold.  If you are ready to divorce different, call the divorce different attorney today to discuss your Monmouth County divorce case.

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Stay in touch with your divorce lawyer

Posted by jefhenninger on January 3, 2010

So many people just want the divorce over right away and who can blame them?  However, I’ve had several clients that just went MIA on me.  There’s no one explanation for it as every one of them had something different to say.  I try to work as efficiently as possible on all of my cases but this is hampered when I cannot reach my client.

As a result of not being able to reach the client, an attorney has to waste time trying to get a hold of a client.  When the other side calls, the conversations are less productive because the client’s position on several issues may be unknown.  This all creates extra work that the client pays for.  In addition, the longer a case drags on, the more expensive the case can get with regard to house hold bills, credit cards and other expenses that would cease had the case been settled earlier.

So, keep in touch with your divorce lawyer at all times.  If you change your number, let your lawyer know.  If you are going on vacation, tell your lawyer ahead of time.  Also be sure to check your mail every day.

Jef Henninger, Esq is a New Jersey divorce lawyer that can represent you in any court in New Jersey, including Morris County, Warren County and Sussex County.  If you are ready to divorce different in New Jersey, call us today.

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How divorce attorneys bill

Posted by jefhenninger on December 30, 2009

Many people come to me after being dissatisfied with the first attorney they chose.  Amazingly, many people have no idea how much money they spent with that attorney as they have not received any updates since the case started (probably one of the many reasons they are in my office).  I am also amazed by the amount of people that have no idea how attorneys bill.  Hopefully, this article will clear up the confusion.

No flat rates

In New Jersey, attorneys cannot charge flat rates for divorce cases (and related matters) because flat rates are non-refundable.  Instead, we set a retainer which is a fancy word for a credit that you have with that attorney’s office.  I tell all of my clients that the retainer is not an estimate.  So, just because I charge one retainer, do not expect that it will exceed it or that it won’t. 

Trust Accounts

Since your retainer is a credit, it is not spent until it is earned.  Thus, all of your initial retainer is put into a trust account.  It is then moved into the business account as it is used up.  At the end of the case, any money left in the trust account is returned to the client.   In New Jersey, it seems that most attorneys start divorce retainers at $5000.  At my firm, we start most retainers at well under $5000 and settle a majority of our cases for under $5,000.

Hourly Rates

Attorneys charge hourly rates for just about everything done on the case.  Hourly rates vary depending on location, experience and other factors.  In New Jersey, the average hourly rate for a divorce attorney is  about $350 an hour.  Time is billed in either tenths of an hour or quarter hours.  For example, a 2 minute phone call is billed at 0.1 while a 6 minute, 30 second call is billed at 0.2.  With quarter hour billing a 2 minute call or a 14 minute call is billed at 0.25.  My firm bills by tenths of an hour.

Assume that all time will be billed. This includes court time, phone calls, reading letters, typing letters, research, etc.  I know it sounds like a lot and it can add up quickly.  However, a good attorney can draw on past experience to get a lot done in a short amount of time.  That is how I am able to settle so many of my cases for under $5,000.

Monthly statements

At my firm, we send out monthly statements for just about every case each month along with a letter to let you know how much of your retainer is remaining.  Thus, my clients do not have to be in the dark with regard to how much their divorce is costing them.  I’ve heard clients tell me that their prior attorneys would never send them a bill until the end of the case when they were surprised with a huge bill that needed to be paid right away!

If you are ready to divorce different, call Jef Henninger, Esq today.  Jef can represent you in any court in New Jersey including New Brunswick, Somerville and Elizabeth.

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How to deal with your house

Posted by jefhenninger on December 30, 2009

In any divorce, the house is usually the largest asset that needs to be divided.  If the house was purchased during the marriage, then the available options are easy to identify.  If it is a pre-marital asset, it becomes much more complicated.  For purposes of this article, I will assume that the house was acquired during the marriage.  

There are going to be one of three scenarios with your house:  It either has equity,  it doesn’t or it has a little equity.  Equity is determined by taking the value of the house and subtracting the mortgage(s).  The value of the house is usually determined by an appraisal company.  They can run $250 to $500 and they value in quality and dependability.  Your attorney should have several that he or she relies upon.  Both sides usually chip in to get one appraisal although either side can get their own.

Scenario One – little equity in the house

There is equity and then there is equity.  If the value of the house is $310,000 and the balance of the mortgage is $300,000,  then there is little to no equity in the house as the sale price subtracted by real estate commissions and other expenses associated with the sale will eat up all of the equity in the house.  This is a complicated situation and your attorney will be in the best position to advise you on your options.  The bottom line is that each side does have equity in the house that should balance out somehow.

Scenario Two – equity in the house

If there is equity in the house, then the entire case should be a little easier.  You can either sell the house and split the proceeds or one side can buy out the other.  Again, your attorney should be able to guide you through this process.

Scenario Three – no equity in the house

This is tough.  Rarely does a couple owe the an amount that is the exact value of the house.  Instead, they are usually underwater which means that a sale of the house will leave the couple still owing money (this is called a short sale).  Clearly, selling the house will be a disaster.  In these situations, foreclosure and bankruptcy are considered.  The best thing to do is to work with both your attorney and your spouse’s attorney to brainstorm how this situation will be handled. 

If you are ready to divorce different, call Jef Henninger today.  Jef can represent you in your divorce case in any New Jersey Court including Mount Holly, Trenton and Camden.

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Divide small property on your own

Posted by jefhenninger on December 30, 2009

Thankfully, I rarely get involved in dividing furniture and silverware.  I say thankfully because it would be such a waste of my client’s time and money for me to get involved.  When it comes to house hold items, courts generally put a minimal value on everything.  Thus, you will most likely upset the judge by complaining about a division of furniture.  This could be tough because you probably paid good money for the items in your house.  As always, I suggest you discuss these issues with your divorce attorney but you should work out the division of most of the small items on your own. 

Here are some tips:

1.  First decide what belongs to you,  what belongs to your spouse and what belongs to you both of you.  Family heirlooms, pre-marital assets and hobby specific items such as golf clubs are usually pretty easy to decide.  If you are the husband, what are you really going to do with her craft supplies?  Likewise, as a wife, do you really want the neon NY Jets clock? 

2.  Now that there are three piles of items, create some lists and each spouse should have a copy.   Going forward, we are only talking about marital property since that is the only class of items that are in dispute.

3.  Is there anything that is truly personal to one of you even though it is technically a marital asset?  If your spouse really has an attachment to something, fighting with him/her over that item is not going to make things any easier.   Giving in a little could help  you in the long run.

4.  Examine the post-divorce living arrangements.  If you are both moving into a new place, you each need forks, plates, couches, etc.  However, if someone is moving in with a friend, family member or will otherwise have a furnished place, then those items are unnecessary.  Thus, the spouse moving into a furnished place may want to give up furnishings like couches and tables for more luxary items such as the big screen TV.

5.  Do not worry that the lists are not 100% even.  No one says it has to be.  You want to be comfortable and you should want your soon to be ex-spouse to be comfortable as well.  Even if you don’t care about your spouse’s comfort level at this point, remember that this is not a competition.

6.  Sell items on Craigslist.  Remember that if you are both moving out, you both have to get all of that stuff to two other places.  Are you really going to use all of it?  If neither of you are really fond of the sofa but it is in good condition, try putting it on Craigslist.  It will  cost you nothing and any sale will put money in both of your pockets.

7.  Reduce the final lists into an agreement and have both parties sign it.  While it doesn’t need to become a part of your property settlement agreement (PSA), you should still have some type of record as to  who got what.  If items are thrown out, include those too in another list. 

8.  Once the lists are drawn up, speak to your attorney again to see if he or she wants the lists to attach to the PSA or the divorce file. 

If you are ready to divorce different, call Jef Henninger today.  He can represent clients in any court in New Jersey including Essex, Hudson and Bergen County.

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Equitable Distribution in New Jersey

Posted by jefhenninger on December 30, 2009

Equitable distribution is division of marital property or assets. In order to divide the property, we first have to identify the assets, then we value them and then they are distributed.  In general, it doesn’t matter who purchased the asset or whose name it is under as New Jersey law recognizes the spouses as an “economic partnership.”   However, equitable distribution applies to all assets acquired during the marriage and not assets that were owned prior to the marriage. Assets subject to equitable distribution include real estate, jewelry, mutual funds, stock options, bank and brokerage accounts, retirement assets, small businesses, all the way down to plates and forks.  

N.J.S.A. 2A:34-23 (h) and N.J.S.A. 2A:34-23.1 are the two major statutes that govern equitable distribution.  Theses statutes list fifteen factors but allows the court to consider any other additional factors it may deem relevant:

  1. The duration of the marriage;
  2. The age and physical and emotional health of the parties;
  3. The income or property brought to the marriage by each party;
  4. The standard of living established during the marriage;
  5. Any written agreement made by the parties before or during the marriage concerning an arrangement of property distribution;
  6. The economic circumstances of each party at the time the division of property becomes effective;
  7. The income and earning capacity of each party, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children, and the time and expense necessary to acquire sufficient education or training to enable the party to become self-supporting at a standard of living reasonably comparable to that enjoyed during the marriage;
  8. The contribution by each party to the education, training or earning power of the other;
  9. The contribution of each party to the acquisition, dissipation, preservation, depreciation or appreciation in the amount or value of the marital property, as well as the contribution of a party as a homemaker;
  10. The tax consequences of the proposed distribution to each party;
  11. The present value of the property;
  12. The need of a parent who has physical custody of a child to own or occupy the marital residence and to use or own the household effects;
  13. The debts and liabilities of the parties;
  14. The need for creation, now or in the future, of a trust fund to secure reasonably foreseeable medical or educational costs for a spouse or children;
  15. The extent to which a party deferred achieving their career goals.

When a court makes a ruling on equitable distribution, the court must make specific findings of fact based on the three step process that I outlined  above, i.e., (a) what assets are part of the marital estate; (b) what is the value of each asset; (c) the manner in which it should be distributed.  The value of each asset is determined at the date of the complaint and not the time that the ruling is made.

Except real estate and other major items, courts generally do not get involved in dividing furniture and other small items.

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Keep your emotions in check to keep legal fees down

Posted by jefhenninger on December 25, 2009

 Money hungry attorney love nothing more than an emotional divorce client with money. This is because when we are emotional, we do not think like normal, rationale people. Instead of worrying about what is best for your post-divorce life and/or what is best for your children, the fight between you and your spouse becomes paramount. As a result, you have your attorney fighting anything and everything.

For example, after a rather drawn out divorce case, I was walking into the court room to put through a settlement when the other attorney mentioned that she wanted my client to pay an additional $500 for something. This completely set off my client and he wanted to blow up the entire settlement. I had to talk him off the ledge so to speak to save the settlement because he was so furious. I told him that I refused to let him pay me thousands to fight over hundreds. That was about five years ago. Today, he still uses my firm.

I tell my clients that a divorce is like the dissolution of a business, especially when there is no issue with child custody. Thus, you have to decide what issues are truly important so that you can determine how you will spend your money and energy. Always remember that the more you fight, the more you pay. Don’t get me wrong, fighting is not a bad thing when the issue is truly important. But fighting over every little thing will send your legal fees through the roof. Thus, at the end of the case, what have you really won?

I advise my clients that it doesn’t matter that their spouse will get a little more. You don’t have to “win” or get back at them. The goal in a divorce case is to divide assets and liabilities in a fair way that allows you to start your new life in the best possible situation. If you spend a fortune on an attorney to fight over nonsense, then you will have less to start your post-divorce life with. Don’t get me wrong, there may be plenty of issues where you will have to spend a small fortune to get what you want. Whats important is that you make a truly rationale decision that the issue in dispute is worth your money and energy. Of course, it helps to have an attorney that will put your best interests over his or her financial interests.

If you are thinking about divorce in New Jersey and you are ready to divorce different, call me today.  I can represent you in any court in New Jersey including Ocean County, Monmouth County and Middlesex County.

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