by Cynthia M. Lifson | Aug 30, 2017 | Notes from the Desk of Cynthia Lifson
In thinking about those who are to receive our possessions after we pass from this earth, many of us weigh and balance this decision carefully. For example, it is not uncommon during the estate planning process for people to create extensive lists of their tangible personal property – including jewelry, tools, art, furniture, and other important items – and designate specific items to many different individuals. It is also not uncommon to name various individuals or charities to receive sums of money specified in a will. While deciding how to distribute our property is a key decision in preparing a will, it is equally important to think through the choice of a personal representative. A personal representative, who may also be called an executor, is the individual who is responsible for paying the final bills and taxes of the decedent, distributing the property of the decedent in accordance with his or her wishes, and generally interfacing with appropriate governmental agencies to ensure that all the business affairs of the decedent are conducted appropriately. It is important to remember that a personal representative is a type of fiduciary. When acting as a fiduciary a special relationship is established. One party places trust, confidence, and reliance in another. A fiduciary has a duty to act for the benefit of the party who nominated or appointed him or her. In the context of estate planning, at its most basic, a personal representative must be able to account for every dollar that flows into the estate and every dollar that flows out of the estate. The goal of the personal representative is to...
by Cynthia M. Lifson | Jun 10, 2017 | Notes from the Desk of Cynthia Lifson
No matter how long spouses have lived apart, no matter what the financial arrangement between spouses is, and no matter if spouses interact with one another or lead completely separate lives, a married couple cannot be legally divorced without an order from a court. At a minimum, to obtain a legal divorce, one spouse must initiate a divorce action by filing a complaint in court alleging specific facts to meet certain statutory requirements and must subsequently prove his or her case before a judicial official. While a legal divorce requires certain action by the court, the manner in which divorce litigation proceeds is greatly influenced by the behavior of the parties. Most people seek an “amicable” divorce, but the legal way of framing this procedure is either as a “contested” or an “uncontested” divorce. Interestingly, the overwhelming majority of family law cases settle before a judge has to make a decision. In cases with protracted litigation, a judge’s decision may be the only way a case can resolve. With this in mind, it is important to understand how the “emotional divorce” and the “financial divorce” affect the “legal divorce.” The likelihood of a procedurally simple legal divorce is greatly enhanced if parties make the effort to work through emotional and financial issues ahead of a formal filing with the court. In particular, a comprehensive and clearly written marital settlement agreement that is reached by the parties can serve as a map to remind the parties of their obligations to one another and to their children. While it may be confusing to enter the realm of contracts and courts, depending...
by Cynthia M. Lifson | Apr 25, 2017 | Notes from the Desk of Cynthia Lifson
Generally speaking, there are three interrelated aspects of divorce: the emotional divorce, the financial divorce, and the legal divorce. While each phase of the divorce process has its distinct characteristics, for many people it is usually the financial aspect of divorce that provokes the greatest anxiety. Transitioning from one household of composed of two adults to two households composed of one adult in each household can be a major undertaking that may require a new evaluation of income and expenses, along with an overview of assets and liabilities. This anxiety is typically enhanced when children are involved in the re-organization of the family. It is not unusual for people to panic when facing this situation. While panic may be an understandable reaction to the prospect of divorce, cool and calm collection of information while facing a new financial situation is an effective way to reduce anxiety and prepare for a new living situation. To the extent possible, it is a good idea to become a bookkeeper and become well informed about recurring monthly expenses. Many people simply do not know with great precision where they spend their money or how to budget effectively. To become more aware of spending habits, it is very useful to do something as simple as keeping receipts in an envelope each month for each and every item that is purchased (including coffees at Starbucks!). In this way, an accurate picture can emerge. Similarly, it is important to know sources of income which can typically be determined by reviewing pay stubs, tax returns, or attachments to a tax returns such as a W-2 form or...
by Cynthia M. Lifson | Jan 12, 2017 | Notes from the Desk of Cynthia Lifson
At the start of the new year it is common for many of us to face the challenge of an unknown future while reflecting on our experiences of the past. This is especially true as we contemplate our choices about the structure of our families. For most people, the decision to remain in a marriage or to disengage from a marital relationship is a radical change that may promote serious anxiety. To address the anxiety that comes from this uncertainty, I have found it useful to consider three intertwined yet distinct aspects of divorce: the emotional divorce, the financial divorce, and the legal divorce. As I have come to understand it, an emotional divorce occurs when a spouse truly realizes that there is nothing more that can be done to ameliorate the unhappiness that he or she feels in relation to the marriage. This unhappiness can be manifested in many ways: constant bickering, stony silences, or eruptions in physical violence. Typically, at the root of this unhappiness is a profound difference in basic values held by each spouse. An emotional divorce often – although not always – precedes a financial and legal divorce which I will discuss in future newsletter articles. Thinking about the signs of a healthy relationship may be useful in determining whether or not a spouse believes an emotional divorce is either happening or has occurred. Here is a brief– and non-exhaustive – list of some elements that mental health professionals suggest are signs of a healthy relationship between spouses: Sensitivity to the feelings of the spouse; Respect for the spouse’s opinions and values; Acceptance of...
by Cynthia M. Lifson | Jun 21, 2016 | Notes from the Desk of Cynthia Lifson
Am I required to pay for my children’s college expenses? In Maryland, mothers and fathers are generally not required under the law to pay for college expenses of their children. Child support obligations for fathers and mothers terminate when a child attains the age of 18 years or graduates high school, which ever one occurs last and child support generally will not go beyond the age of 19 years. If parents are committed to paying for a child’s college expenses, the law will enforce a contract, usually in the form of a separation agreement. This may later become a part of the final judgment of absolute divorce between the parents. Of course there is nothing that prevents either parent from paying for a child’s expenses, but without a contract, a parent may not be legally obliged to do so. If I don’t live with my children, how can I maintain a relationship with them after the divorce? When a family reorganizes, parents can decide, or if necessary courts can determine, where children live. In Maryland law, we have three general concepts that address this. One is called sole physical custody, where a child lives primarily under the roof of one parent. Another concept is shared physical custody which means a child lives for a minimum of one third of the year, or 128 overnights, with one parent or up to one half of the time, or approximately 182 overnights with each parent. A third concept is known either as visitation, also known as an access schedule, which means something less than the shared physical custody. Visitation...
by Cynthia M. Lifson | May 26, 2016 | Notes from the Desk of Cynthia Lifson
It is not a big revelation to notice that the widespread use of the internet has hugely changed the way all of us operate. With easy access to information through the world wide web, we can readily learn new things and become quite self-sufficient in managing our lives. As we evaluate how to allocate our resources – both time and funds – one of the things to be considered is whether or not we will engage in “do it yourself” or engage in hiring someone to assist us with important transactions. In thinking about this basic question, I have come to conclude that the “do it yourself” approach is appropriate in many situations. As I see it, if something ultimately does not have a serious impact on health, finances, or children, I will choose to undertake the research and do the work myself to accomplish what needs to be done. I will also frequently recommend that clients do the same. But in situations where the impact of an intervention or the lack of an intervention may involve long-lasting consequences, I approach the internet as a starting point to gather information and then engage expert assistance. In my professional life, I have had the experience of guiding clients through difficult times when their families are in transition. It is my job to know and understand and explain how the law might affect my clients and how a judge in the City or in any one of the counties where I practice – Howard, Montgomery, Frederick, Anne Arundel, Baltimore or Prince George’s – may view the case. I have repeatedly observed...
