1. Divorce: Divisions and Decisions
Presented by UAW-FCA-Ford-General Motors Legal Services Plan
May 30, 2019

2. Divorce: Things to consider
Process
Property Division
Custody and Visitation
Child Support
Post-Judgment Checklist

3. Process Rules vary from state to state
Consult with your Plan attorney for process rules in your state
Divorce petition or complaint is prepared and filed with the court. It usually includes:
- date of marriage - minor children,
- reason for divorce
In some states, proposed settlement is filed at this time
This means parties don’t file with the court until they have worked out property division, etc.
Protective orders: domestic abuse, prevention of disbursement of assets
Interim support orders to maintain the status quo

4. Personal service if amicable divorce; give to the other spouse and complete and sign a form to file with the court
May need to use a process server
If spouse’s whereabouts are unknown, will need to use different service method as authorized by court in your jurisdiction
Publication
Mailing to the last known address
Service on other party

5. If you are served with a complaint or petition
There are time limits to file an answer; consult with your Plan attorney immediately if you are served
An answer should be filed even if the divorce is not contested and you think you can work out a settlement; your Plan attorney will draft an answer for you
If an answer is not filed and the time to answer passes, the other party can ask for a default; this means an order can be entered setting terms without your input
If you are served with a complaint or petition

6. Waiting periods
Most states have waiting periods between time of filing and granting final judgment.
The time may be different if minor children are involved.
For example, the waiting period is 60 days in Michigan. But the waiting period is 180 days if there are minor children of the marriage.
Consult your Plan attorney for the waiting periods in your state.

7. While you are waiting
Negotiate property division, custody and support issues
In some states, this is in the judgment of divorce
In other states, a separate agreement is drafted
Both parties sign judgment or settlement agreement
Default if other party does not respond
Final Judgment of Divorce or Order of Dissolution is entered with the court, dissolving the marriage and detailing property division, custody, support

8. Property Division
This includes real estate and personal property. Consider what assets you value most and what assets you can let go of.
In community property states, property is evenly divided because both parties are considered to own the property equally.
In most other states, property is divided equitably or fairly. The parties can negotiate and decide what is fair for them.

9. Real estate Marital home considerations:
ability to make mortgage, tax, insurance payments
ability to maintain the property
if there are minor children, whether they should stay in the marital home
Real estate – particularly the marital home – can be:
Sold and the proceeds divided
Consider mortgages, liens (impact net value)
Calculate net proceeds (total sale price minus broker’s commission, closing costs, mortgage balance)
Given or sold to one of the spouses
If given to one party, the net value can be offset against other assets
For example, Spouse 1 gets the house but releases all claims to Spouse 2’s pension
One spouse can buy out the other spouse by refinancing and paying the other spouse their share of the equity (value of the home minus outstanding mortgage or other liens)
Mortgage issue: Both names remain on mortgage unless refinanced

10. Personal Property Considerations
Personal property includes:
automobiles/trucks
recreational vehicles
tools
collections 
Considerations when dividing personal property:
valuation: dollar value of each item or group of items
liens: how much is owed, on a vehicle, for example
furniture: do you want it or need it
Collectibles: who spent time acquiring the items and appreciates them
items of sentimental value: family heirlooms, for example
how important the property is to you
Personal Property Considerations

11. Personal Property Division
The parties can agree
The parties can “trade” one item for another
expensive – court and attorney fees
delays the completion of the proceedings
can turn an otherwise friendly divorce into a battle
may not be happy with the result
The parties can let the judge decide, but:
Personal Property Division

12. Bank/investment accounts
Division considerations:
How held? In one name only or jointly?
Who deposited the funds?
What is offset against other assets?

13. Factors to consider include: length of marriage, length of employment, total assets, ability of the parties to support themselves
Division of retirement accounts can be complex and a QDRO may be needed. You will want to discuss valuation and the specifics of each spouse’s pension or 401(k) with your Plan attorney.
Watch the Plan’s QDRO webinar on our website or YouTube channel. It details the division of pensions and 401(k)s in divorce.
Retirement Accounts

14. In addition to dividing assets, think about who will be responsible for the debts of the parties. Debts include:
Mortgages
Other loans
Credit card debt
Things to consider:
Is the debt in one or both names?
What is the balance owed?
What is the debt for and who is getting that property?
Usually, the person who gets the property gets the debt.
To take your name off a mortgage, loan or credit card, an agreement to refinance or pay off the debt can be included in the divorce settlement
Marital Debts

15. Spousal Support Alimony Has become rarer over the years
If awarded, is usually provided for a limited period of time
Generally awarded as a set weekly or monthly amount
Each party’s work history, income, assets and ability to earn income is considered
A limited period of alimony may be a better option for some than giving up part of pension

16. Each party is often responsible for their attorney fees
In some contested matters, the court may order one party to pay all or part of the other’s attorney fees, particularly if:
there is a large disparity in income
one party is deemed responsible for causing the other to incur additional attorney fees
Can be awarded at different times in the divorce proceedings
Attorney fees
A party may want to restore their prior name
In some states, this can be addressed in the judgment of divorce to avoid the need for additional proceedings
Name changes
Additional issues

17. Custody and Visitation Issues
The custody of minor children is one of the most important decisions made in a divorce proceeding.
Even if the parties agree, some courts require the parents of minor children to attend an educational class regarding divorce and its effects on children.
The parties can agree to a custody arrangement and save time, money, and emotional upheaval.
If the parties can’t agree, the court will decide who should have custody of the minor children.
Custody and Visitation Issues

18. Custody: Legal and Physical
Legal custody: Defines who has the right to make medical, educational decisions for the minor children.
Many courts favor shared legal custody when possible so both parents play a role in the children’s lives.
Physical custody: Defines where the minor children live.
Physical custody may be awarded to one parent or shared by both.
The parent with physical custody usually gets the dependent tax deduction. If joint physical custody, the parties need to negotiate.
If shared custody, set a schedule to avoid future misunderstandings and conflicts. Example: Parent 1 has child from Sunday morning through school drop off on Wednesday; Parent 2 has child from Wednesday school pick up through Saturday night.
The parent with physical custody may have to petition the court if he/she wants to move a distance away from the non-custodial parent.
If one parent is awarded physical custody, both parents will need to agree on a visitation schedule.

19. Contested Custody Proceedings
The court will consider the best interest of the child. Many factors are considered and weighted for and against each parent.
Some factors are:
Age of the children
Each parent's living situation: appropriate housing, ability to support, clothe and feed the children
Each parent's willingness to support the other's relationship with the children. Does the parent speak badly about the other parent, interfere in visitation, or support the relationship with the other parent?
Each parent's relationship with the children before the divorce. Did the parent participate in the children’s activities, assist with school work and doctor visits, etc.
Established custodial relationship: relationship with parent, extended family, community
Substance abuse by or instability of one of the parties
Children's preferences are not determinative
A child may prefer the more lenient parent but this doesn’t mean the judge will agree.
A child will be consulted depending on their age. This is often done in a private setting
Contested Custody Proceedings

20. This sets the days that the non-custodial parent sees the children
Visitation Schedules
This sets the days that the non-custodial parent sees the children
This can be for a couple of hours a week; for example, dinner every Wednesday
This can be for days or weeks; for example:
Every other weekend
Alternate holidays (Parent 1 has children for Thanksgiving 2019 and Parent 2 has children for Thanksgiving 2020)
Two weeks each July
The custodial parent cannot interfere with the children’s visitation with the other parent.

21. Child Support
Non-custodial parent is usually required to contribute to the support of minor children.
The amounts are usually set in state guidelines.
The state may require the parties to provide the court or “Friend of the Court” information (wage stubs, tax forms) for an investigation to calculate the appropriate level of support.   
There can be variances or reductions for certain reasons. For example, if the child receives Social Security benefits through the parent.
One or both parents may be required to keep the children on their employer’s health insurance .
The parties may be required to divide medical or dental expenses not covered by insurance. The percentage each party is responsible for is specified in the judgment or settlement agreement.

22. Post Judgment Checklist Issues you’ll need to address once you are divorced
Close any open joint accounts
Transfer funds as agreed to and directed in the final divorce papers
Change beneficiaries on:
Bank accounts
Life insurance
401(k) accounts
Investments
Refinance home to remove former spouse’s name and get payoff funds
Record deeds to reflect new ownership status
Review titles on vehicles and change if needed

23. Post Judgment Checklist (continued)
Remove spouse from insurance and give employer ex- spouse’s address for COBRA notice
Change beneficiaries on employment-related benefits, including life insurance, 401(k)
Complete and return new beneficiary forms as directed by employer
Change homeowner and auto insurance policies to the name of the party awarded the property
Get QDRO if there are retirement benefits to be divided

24. It’s Your Plan Call to open a case: 800-482-7700
© 2019 UAW-FCA-Ford-General Motors Legal Services Plan