Laurie Schmitt Family Law

W. Michigan family law specializing in Collaborative Divorce

616.608.4634

Financial Issues

Common Divorce Questions: How Do We Keep the Cost Down in Our Divorce?

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Common Divorce Questions: How Do We Keep the Cost Down in Our Divorce?

A major concern of divorcing couples is the cost of the divorce.  The bottom line is that the more adversarial the couple is the more the divorce will cost.  The more the spouses fight about issues the more expensive the divorce will be.

Asking the court to settle issues that the spouses could settle between themselves costs money.  Motions are filed.  The other party responds.  Court time must be reserved.  All these things are costly.  The cost of divorce depends almost entirely on how much the couple fights and how willing they are to settle the issues amicably between them outside of court.

Avoid the “Tupperware Wars”

The cost of divorce is driven by the parties’ willingness to set aside their anger and to start making good and logical decisions.  Paying attorneys to fight with each other over something the couple could resolve between them does not make sense.

Spouses often argue over the division of petty items that can be easily replaced.  I refer to these fights as the Tupperware Wars.  There are sensible ways to divide or replace these items without court intervention.

For example, the parties fight over who gets an asset when it would be less expensive for them to let the other party have it and for them to go buy a new one.  People fight over things like who gets the Monopoly game?  Who gets the everyday dishes?  Who gets the Tupperware?  It is far less expensive to buy (new dishes, Monopoly game or Tupperware) than to pay for drawn-out court appearances where the court is forced to make a decision that neither party may be happy with.

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Suggestions for Dividing Heirlooms and Other Expensive Items

There may be heirlooms of sentimental value that cannot be replaced.  Perhaps the couple owns a grand piano or antique cars.  These items need to be appraised and a monetary value attached to them.  This still may not resolve the emotional issues attached to the items.

A spouse may need counseling to deal with the emotions involved in the divorce and over items with sentimental value.  That is not the role of the attorney who has no training in that area.  My office has a list of good counselors I feel confident recommending.  I work with my clients to find someone who is on their healthcare provider list.  In a divorce case it is better to have the attorneys work on the legal issues and allow those who are qualified to counsel to do so.

In reaching an out of court settlement the only time the court hears from the clients is at the final hearing.  The court will likely congratulate the parties on working well together to get it done without the court’s intervention.

For assistance on asset division and any other aspect of your divorce process, contact me, Laurie Schmitt, at Schmitt Law, PLLC.  I am an Attorney, Mediator, and Collaborative Divorce lawyer.

Enforcing Child Support / Friend of the Court

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The Friend of the Court is responsible for enforcing child support orders.  Many enforcement methods (described below) can be used if a parent does not follow terms of the order.

Income Withholding

An income withholding order can be used to collect both current and past-due support (arrearages).  All new and modified child support orders are required to include income withholding, unless both parents and the court agree on other payment methods.

Under income withholding, child support and medical support payments are deducted from the non-custodial parent’s paycheck.  The employer sends the support payments directly to the Michigan State Disbursement Unit (MiSDU).  Federal and state laws require employers to honor income withholding orders.

A parent’s income from other sources, such as unemployment benefits, Social Security benefits, independent contracting, workers’ compensation claims, and insurance claims are also subject to income withholding.

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Tax Refund Offset

If the amount of past-due support (arrearages) reaches a certain level (threshold), both federal and state tax refunds can be intercepted to pay support.

The past-due threshold for state tax refund offset is $150.  The federal past-due threshold is $150 for cases that receive cash assistance; the non-cash assistance threshold is $500.

For both state and federal tax refund offset, the person who owes the support receives a notice explaining his or her right to object to the tax refund offset and reasons to object.  In a joint tax return, a spouse may make a claim to retain his or her portion of the refund.

Show Cause/Bench Warrant

A person who has not paid child support or has not provided medical support can be ordered to appear before the court to explain to the court why he/she should not be held in contempt.  This is called a show cause hearing.

If the person ordered to appear at a show cause hearing does not show up, the court may order a variety of enforcement actions, including issuing a bench warrant for the arrest of the person who did not show up for the show cause hearing.

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Lien/Levy

The Friend of the Court or the Office of Child Support can initiate a lien/levy against real or personal property, financial assets, or insurance claims for collection of child support.

License Suspension

Driver’s licenses, recreational or sporting licenses (hunting, fishing, etc.), and professional licenses can be denied, suspended or revoked if a parent is behind more than two months in payments.

Credit Reporting

If a parent is behind more than two months in payments, he or she is automatically reported to a consumer credit reporting agency.

Passport Denial

A parent’s passport may be denied or revoked when he or she reaches the past-due support threshold of $2,500.

National Medical Support Notice

Enforcement of medical support is done through the National Medical Support Notice for employer-provided insurance or through any of the other enforcement methods listed if cash payments are required.

Pension Account(s)

A Qualified Domestic Relations Order (QDRO) is a support order against a private pension account.  An Eligible Domestic Relations Order (EDRO) is a support order against a state or federal government pension plan.  A QDRO or EDRO can be issued for current support or past-due support (arrearages).

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Surcharge

A judge may order a surcharge be added to a case that has arrearages.  If a surcharge is ordered, it will be added to the case every January 1st and July 1st and become a part of the total amount of support owed.  The surcharge is a variable rate tied to five-year United States Treasury Notes, plus 1%.

Criminal/Felony Charges

The Friend of the Court can refer the case to the county prosecutor, who may charge the person who owes support with the crime of felony non-support.  In some counties, the case may be referred to the Attorney General for criminal prosecution of felony non-support.  Felony non-support charges are generally issued after other child support collection methods have not been successful.  Custodial parents may also ask the county prosecutor or Attorney General for felony non-support prosecution.

For assistance with your child support issue, contact me, Laurie Schmitt, at Schmitt Law, PLLC.  I am an Attorney, Mediator, and Collaborative Divorce lawyer.

Spousal Support Award based on income from illegal marijuana sales upheld by Court of Appeals

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Sally Ann Beauchamp v Ronald Robert Beauchamp

Unpublished: October 23, 2018
No. 340792
Delta Circuit Court
LC No. 16-023178-DO

In Beauchamp v Beauchamp, the Husband was deriving income from illegally selling marijuana.  Trial court awarded spousal support based on income derived from the marijuana income.  Defendant appealed that court couldn’t base spousal support on his illegal income.  Court of Appeals affirmed the award.

Defendant asserts that he is unable to legally profit from the growth and sale of marijuana under the MMMA.  In this regard, defendant appears to be correct.  See MCL 333.26424(f) (“A registered primary caregiver may receive compensation for costs associated with assisting a registered qualifying patient in the medical use of marijuana.”).

Defendant contends that, because it would be illegal to profit from the sale or exchange of medical marijuana, it was unlawful for the trial court to award plaintiff spousal support on the basis of income that defendant may have obtained via such illegal activity.

The essence of defendant’s argument is that the trial court effectively required him to participate in illegal activities in order to meet his spousal support obligations.  On this point, the Court of Appeals disagreed.

This case does not involve a situation, as defendant argues, where the trial court has effectively ordered him to engage in unlawful activities.  Indeed, the legality of defendant’s annual earnings is entirely irrelevant.

For assistance with your spousal support issue, contact me, Laurie Schmitt, at Schmitt Law, PLLC.  I am an Attorney, Mediator, and Collaborative Divorce lawyer.

Child Support Payments at CVS and Walmart

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The Michigan Department of Health and Human Services and Michigan State Disbursement Unit has once again made it easier for parents to pay their child support.

Parents who owe child support may now make payments at CVS Pharmacy and Walmart stores using the MoneyGram payment option.  This option will be available at CVS Pharmacy and Walmart stores only, and does not include CVS Pharmacy locations within Target or other retail stores, or online payments at MoneyGram.com.

The Michigan child support program is committed to providing alternative payment methods and increasing customer convenience in paying support.  With the addition of the MoneyGram payment option, Michigan child support is now payable at over 34,000 additional locations. Other retailers may be added at a later date.

The process is simple.  Parents simply need to:

  1. Find a MoneyGram location – over 34,000 agent locations – at moneygram.com/locations
  2. Bring these with you:
    • Cash – Enough to pay your child support + $3.99 fee
    • Order ID/Docket Number _______________________.  Parties needing their order ID or docket number can call 1-877-543-2660 to speak with a customer service representative.
    • Receive Code: 14689

For assistance with your child support issue, contact me, Laurie Schmitt, at Schmitt Law, PLLC.  I am an Attorney, Mediator, and Collaborative Divorce lawyer.