Kennedy Law AssociatesKennedy Law Associates2024-02-27T17:56:43Zhttps://www.kennedyfamilylaw.com/feed/atom/WordPress/wp-content/uploads/sites/1603772/2022/07/cropped-KLA-favicon-32x32.jpgOn Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506672024-01-16T19:19:41Z2024-01-16T19:19:41ZNorth Carolina family law attorney, Marsha Kennedy for being recognized by North Carolina Lawyers Weekly for her outstanding work in 2023! The magazine's annual Power List "recognizes the most respected and accomplished attorneys in an area of practice."
In honoring Marsha, the magazine noted her work with the Council for Children's Rights, her work as a licensed Parent Coordinator, and her proven commitment to helping individuals throughout the Charlotte area successfully navigate the emotional and legal aspects of ending a marriage. The magazine also recognized Marsha as the author and leader of "Divorce With Dignity," which is a series of seminars and workshops designed to help divorcing individuals restore and rebuild their lives with grace, optimism and dignity.
To arrange a consultation regarding your own North Carolina family law concerns, please call [nap_names id="FIRM-NAME-1"] at [nap_phone id="LOCAL-CT-NUMBER-2"] or complete our contact form. Our Charlotte area law firm serves clients throughout North Carolina.
]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506652024-01-02T23:16:29Z2024-01-02T23:16:29ZEstate planning is crucial for parents with a special needs adult child. It ensures that the child is cared for and financially secure after the parents can no longer provide support.
For parents in this situation, understanding the options and implications of different estate planning tools is key. This knowledge helps create a plan that secures the child's future and maximizes their access to essential services and benefits.
Special needs trusts and their benefits
One of the most critical tools for a special needs adult child is the special needs trust, which is part of a comprehensive estate plan. This trust allows parents to leave assets to their child without jeopardizing their eligibility for government benefits like Medicaid or Supplemental Security Income.A trustee manages assets in a special needs trust to benefit the adult child. The trust can be used to pay for expenses not covered by government benefits, such as personal care, education or recreation. By using a trust, access to public benefits is preserved while additional resources for their care and quality of life are provided.
Choosing the right trustee
Selecting a trustee is critical in setting up a special needs trust. The trustee should be someone trustworthy, financially savvy and familiar with the unique needs of the beneficiary. Some families opt for a professional trustee, such as a lawyer or a trust company, to ensure ongoing management and compliance with legal requirements.
Life insurance as a financial tool
Life insurance can be a strategic part of estate planning, especially for parents who may not have substantial assets to leave. A life insurance policy can fund the special needs trust, ensuring sufficient resources are available for the child’s care over their lifetime.Understanding how estate planning impacts eligibility for government benefits is crucial. Parents should seek guidance on structuring their estate to maximize the child's access to these benefits. This often involves working with individuals familiar with special needs planning.]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506642023-10-14T21:35:40Z2023-10-14T21:35:40ZEmotional and psychological well-being
Coping with change is an essential aspect of this process. It’s vital to seek emotional support through therapy, support groups or confiding in friends and family. Moreover, divorce can affect adult children in various ways. Some may feel relieved if they witnessed a tumultuous marriage, while others might struggle with the changes. Be prepared to provide emotional support and encourage open conversations with your children about their feelings.
Practical considerations
Don’t forget to review and update your legal documents, including wills, trusts and life insurance policies. Try to ensure that these documents reflect your post-divorce wishes, especially regarding the beneficiaries and guardians for any remaining minor children.
Legal implications
Property division in a divorce is often a contentious issue. You may have substantial joint assets, such as a family home, when divorcing as parents to adult children. Understanding the legal framework for property division in North Carolina is vital. If your adult children are still financially dependent on you due to a debilitating medial condition, alimony and child support arrangements may be considered to help ensure the financial stability of your children during and after the divorce.
Divorcing as parents to adult children is a convoluted process that requires careful consideration of the emotional, legal and practical aspects involved. Remember to seek legal counsel and emotional support to help ensure a smoother transition for both you and your adult children.]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506522023-08-22T22:06:35Z2023-08-22T22:06:35Zfamily business often represents a significant financial asset and a shared vision and effort. Navigating the division or continuation of the company during a divorce requires careful consideration.
Determining the value of the business
Determining its value is the first step in addressing a family business in a divorce. This might involve hiring a business appraiser who can assess various factors such as assets, liabilities, income, market conditions and other applicable factors. The valuation provides a basis for negotiations regarding the division of this asset.
Understanding how the business is legally structured can significantly influence how it is handled during divorce. Different business types, such as sole proprietorships, partnerships, corporations or LLCs, may be affected by different rules and considerations. If only one spouse is the legal owner, the other might still have a claim to a portion of its value, depending on the situation.
Any existing prenuptial or postnuptial agreements that specify how the business would be handled in a divorce will typically be honored. Without such agreements, the court may consider each spouse's contributions to the company, including financial investments, time, effort and even sacrifices made for the business's sake.
Options for moving forward
Several potential paths exist for dealing with a family business in a divorce. You and your ex must carefully consider each of these. One option is to sell the business and divide the proceeds. This choice might be suitable if neither party wants to continue running the business or an agreement on co-ownership can’t be reached.
Another is a buyout, which might be negotiated if one spouse wants to continue the business while the other doesn’t. This would require an agreement on the value and terms of the buyout, potentially involving a payment plan or trade-offs with other assets.
The final standard option is to continue co-owning and operating the business together. This arrangement requires a strong working relationship and clear roles, as well as a conflict resolution agreement (at minimum) in place moving forward.
Regardless of how the business is handled, the agreement should be in writing to avoid any confusion in the future. Seeking legal guidance is important so that you can get all the information you need to make a decision in your best interests.]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506242023-08-16T17:33:49Z2023-08-16T17:33:49ZPlease join us in congratulating Marsha Kennedy for being recognized by North Carolina Lawyers Weekly for her outstanding work in family law! The magazine's annual Power List "recognizes the most respected and accomplished attorneys in an area of practice."
In honoring Marsha, the magazine noted her work with the Council for Children's Rights, her work as a licensed Parent Coordinator, and her proven commitment to helping individuals throughout the Charlotte area successfully navigate the emotional and legal aspects of ending a marriage. The magazine also recognized Marsha as the author and leader of "Divorce With Dignity," which is a series of seminars and workshops designed to help divorcing individuals restore and rebuild their lives with grace, optimism and dignity.
You can see Marsha's featured section in the full publication here: North Carolina Lawyers Weekly: Power List 2022, Family Law.
To arrange a consultation regarding your own divorce and family law concerns, please call [nap_names id="FIRM-NAME-1"] at [nap_phone id="LOCAL-CT-NUMBER-2"] or complete our contact form. Our law firm serves clients throughout the Charlotte area.]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506152023-07-23T15:02:25Z2023-07-23T15:02:25ZHow much is your back-to-school budget?
On average, parents are budgeting $597 this year per child for their back-to-school shopping. While that’s down a little from last year, that’s only because a lot of parents are cutting back on anything they see as “non-essential.” Inflation is making everybody feel the financial pinch. Talk with your co-parent to see if you can strategize and divide the “must-haves” from the “would-be-nice-to-haves” on your child’s shopping list. You should also discuss ongoing monthly school fees, whether that’s transportation costs, school lunches or extracurricular fees and equipment. You should also include things like school photos, yearbooks, prom or homecoming and school field trips in your talks.
How will you split school expenses?
If you have fairly equal incomes, the easiest thing to do is to simply tally up the receipts and divide the total down the middle so that you can each pay half. If you have vastly different incomes, however, it may be fairer for one spouse to pay, for example, 75% of the costs while the other only pays 25%.
Will you divide the shopping duties?
If you divide the shopping duties, money may not even have to change hands. For example, if you agree to pick up the electronics your children need for school and pay for their school lunches each month, and your co-parent agrees to buy their school uniforms and cover the band instrument rentals, you can each take care of your responsibilities without involving the other. This might be ideal if your conversations with your ex tend to be difficult or you’re not comfortable handing them cash, since you can easily keep a record of exactly what you contributed to your child’s needs.
Ideally, you and your ex will develop a healthy co-parent dynamic as your situation continues to evolve. When that’s not possible, however, don’t hesitate to seek legal support to address your concerns.]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506112023-06-29T12:36:38Z2023-06-29T12:36:38ZWhat does a QDRO do?
There are certain assets that couples share that are more difficult to divide than others. For example, people tend to contribute significant amounts of their income toward retirement savings. They often use special accounts to minimize taxes now and maximize what resources they have later in life. To prevent people from abusing these special accounts or making poor financial choices that cause hardship later in life, there are tax consequences for withdrawals before someone reaches retirement age. There are often also penalties imposed. Therefore, it would logically follow that those who split an account during a divorce in their 40s would have to take a major loss of retirement savings.
When one of the lawyers drafts a QDRO in accordance with a property division order and has it approved by the courts, they can then file the document with the professional or business managing the retirement account. The QDRO gives the necessary information regarding how to divide the account and the identity of the person who will own the newly created second account. Used properly, a QDRO facilitates the transfer of a specific percentage of the original account's balance into a new account held by the other spouse without any taxes or penalties imposed. It is a powerful tool for preserving the retirement savings of those already absorbing the costs of a divorce.
For someone who has retirement savings, a QDRO may be a very important tool for the property division process. Learning more about the special terms used in family court and the ways people divide their property in a North Carolina divorce can help people prepare for the future more effectively.]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506102023-06-28T10:57:11Z2023-06-28T10:57:11ZStock options are one of many valuable assets that can make a high-income or high-asset divorce harder to settle. These two issues regarding stock options often influence the ways that couples address these assets during property division.
How much of the stock is marital property?
Stock options are frequently part of a deferred compensation package offered by an employer. Stock options can be a form of incentive or retention pay that helps to motivate people to meet certain performance metrics or stay at the company for a set amount of time. For example, after five years with the company, an individual may receive a certain amount of company stock as a way of rewarding them for their performance with company equity. Couples will have to establish how much of deferred compensation like stock options is part of the marital estate. Someone only three years into a five-year employment contract when they file for divorce shouldn't typically need to split all five years of accrued value with their spouse.
The value of the stock option
Sometimes, stock options represent a future value that has no current concrete value, as the organization may not yet even offer stock publicly. Even when an organization is already a publicly-traded entity, the value of its stock will likely fluctuate significantly from year to year, making it hard to know what stock options will be worth when someone is actually eligible to receive them. It can be quite difficult for people to set a reasonable price on the future stock that an employee will receive for their work. Those with more assets and higher income often have to think ahead to identify these challenging issues so that they don't overlook important resources during the property division process.
Establishing a reasonable value and an appropriate way to divide marital assets, like deferred compensation earned during the marriage, may be important for those seeking a fair resolution to their North Carolina divorces. Seeking legal guidance is often a good place to start.]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=506092023-08-16T16:22:54Z2023-05-29T23:34:04Za few important things to keep in mind.
Employer-sponsored retirement plans
First of all, you or your spouse may have an employer-provided retirement plan or a pension. In some cases, a plan like this can be divided between two married individuals by using a Qualified Domestic Relations Order (QDRO). It may qualify as a marital asset – at least for the portion earned during the marriage – even though only one person is employed and is technically earning the benefits of that plan.
Other retirement savings
These days, many people do not have employer-sponsored plans, but they have other retirement portfolios. Maybe you have your own investments that you’ve made over the years. Perhaps you have received an inheritance from your parents that you were planning to use to retire. You’ll need to seek legal guidance about protecting this type of asset, which may be considered separate or marital property, depending on whether it has been comingled, etc.
Major tangible assets
In many cases, the most valuable asset a couple owns is their house. Younger couples often struggle with what to do with their mortgage and they may be compelled to divide that debt. But in a gray divorce, a house may be paid off, so a couple may have to decide how to divide the value of that marital asset.
Navigating a complicated situation
These are just a few things to keep in mind as you get divorced. Seeking legal guidance concerning the division of your property can help to ensure that you receive a fairly-valued settlement that will allow you to move forward in a confident and financially-stable way.
]]>On Behalf of Kennedy Law Associateshttps://www.kennedyfamilylaw.com/?p=505822023-04-25T13:28:43Z2023-04-25T13:28:43ZEquitable distribution rules allow for creative solutions
Some North Carolina couples can work out their own property division agreements. Others will disagree so fiercely on the details that going to court will be the only viable means of resolving their property division disputes.
When couples go to court, the equitable distribution standard requires that a judge find a fair way to divide their property based on family circumstances. The judge will consider numerous factors including:
individual income
health
separate property
child custody arrangements
the duration of the marriage
financial and unpaid contributions to the household
Each of those considerations can influence what a judge believes would be appropriate for the family when dividing their property. Real property, being among the most valuable assets, will often receive the most consideration.
In some cases, one spouse might keep certain properties while the other keeps different real estate. For example, one spouse might keep the primary residence while the other retains the vacation home, and then they divide other assets to reflect the difference in values between those two properties. Occasionally, the sale of some of the properties and the division of the revenue generated will be the best approach.
In a scenario involving real estate owned for business purposes, one spouse might keep most or all of the properties while compensating the other spouse for their interest in those assets. When the case goes to court, the spouses have no control over the final terms. If they negotiate a settlement, they can potentially decide for themselves and keeps which home as long as they both agree that the final outcome is fair.
Recognizing that there are numerous viable solutions for dividing the value of each piece of real property included in a marital estate can help spouses set more informed goals for their high-asset divorce and increase their chances of successfully negotiating a settlement rather than going to court to litigate their differences.]]>