Laurie Schmitt Family Law

W. Michigan family law specializing in Collaborative Divorce

616.608.4634

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The Collaborative Divorce Process: What Is a Financial Neutral?

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In the collaborative divorce process, we utilize the team approach.  The team comprises of the clients, their respective attorneys, a coach, and if necessary, a financial neutral.  What role does a financial neutral play in this process as a team member, and what is the value to the client in retaining a financial neutral?

In many cases there are complex financial issues that must be addressed in the collaborative process.  Simply put, the financial neutral assists the team in answering all financial questions.

A financial neutral will sit down with the parties independent of the team to assist in creating a budget while the parties are going through the collaborative process.

financial neutral

The financial neutral also assists the parties in understanding the impact of different settlement options that are being addressed in the team meetings.  The financial neutral will review all of the assets and debts of the parties, and create a report for the team to review. These reports allow the team to fully understand the financial position of the parties, and to assist the parties in getting to an agreement that is financially fair and equitable for each party.

Financial neutrals also assist in valuing businesses of the parties, or valuing assets that may be difficult to value.

Often times, there may be one spouse who has never been responsible for maintaining the household finances. In these instances, the financial neutral can meet with that party individually, with the consent of the other, to assist them in learning how to create a budget, write a check, balance a checkbook, and pay bills.

Additionally, there is a cost benefit to the clients in hiring a financial neutral:  it allows the attorneys to focus on legal issues, while the financial neutral focuses on the financial issues.  Each part of the professional team is focused on what they do best and what they have been trained to do.

In the end, the financial neutral plays a valuable role as a team member: creating efficiency, saving money for the clients, and providing the team with a full understanding of the client’s financial situation.

Considering Divorce?  Learn your options with Schmitt Law, PLLC

Contemplating a divorce can be one of the hardest decisions to make in life. There are many complexities involving the divorce process, making it overwhelming for most. However, know that you are not alone, and help is available. At Schmitt Law, PLLC we are here to answer your questions, ease your concerns, and protect your rights.

To book a consultation, contact Schmitt Law, PLLC online or by calling (616) 608-4634.

What Is The Collaborative Divorce Participation Agreement?

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You and your spouse have decided to seek a divorce and have agreed to the collaborative divorce process.  You have retained your collaborative divorce attorneys.  Now you are being asked to sign a collaborative divorce participation agreement.  What is the purpose of this agreement and what does the agreement contain?

Collaborative Participation Agmt

The purpose of the collaborative divorce participation agreement is to ensure that the initial team (husband, wife, and their respective attorneys) understand the principles of the collaborative process.  It also identifies that the collaborative team may expand to include a financial neutral, or other necessary professionals.

The collaborative divorce participation agreement contains the following provisions:

  1.   It identifies the goals of the team.
  2.   It contains an agreement that the parties will not seek court intervention.
  3.   It lists cautions to the participants that the process cannot eliminate disharmony, distrust, and differences that may have existed in the past, but that the parties will commit to create an atmosphere of harmony, trust, and cooperation moving forward. 
  4.  It states that the parties agree to negotiate in good faith.
  5.   It states that the parties agree to make a full and fair disclosure of all assets, income, debts, and other relevant information necessary to reach settlement.
  6.  It states that the parties will maintain a high standard of integrity, not take advantage of each other, and will not mislead each other.
  7. It preserves the parties’ financial status quo while the parties are involved with the collaborative divorce process. 
  8. It states that the parties agree the professionals are entitled to be paid, and that the parties have individual financial responsibilities to their respective attorneys.
  9. It states that if experts and consultants are necessary, the team will agree to retain them jointly.
  10. It discusses confidentiality in that the team will treat all information provided during the collaborative process as confidential.  
  11. It discuses the participants rights and obligations pending settlement.
  12. It discusses termination of the collaborative process after settlement and termination of the collaborative process without settlement.
  13. It states that both attorneys are disqualified from representing either party in any adversarial or contested court proceeding, that all team members are disqualified as witnesses, and that their work product will be inadmissible as evidence in any court proceeding.

Before signing the collaborative divorce participation agreement, the team will have a discussion and fully review the provisions to ensure the parties have a complete understanding of the agreement.

Collaborative Divorce – The Litigation Alternative

Divorce is a stressful and difficult process.  That’s why more couples are turning to the collaborative divorce process.  A highly trained team of professionals work together with you to develop a fair, open and child centered resolution.  If you want to avoid going to court, reach your own agreement, and promote positive co-parenting post-divorce, the collaborative divorce process may be an alternative for you.

Laurie K. Schmitt, founder of Schmitt Law, PLLC, is an Attorney, Mediator, and Collaborative Divorce lawyer. When possible, she guides her clients through amicable divorce settlements so they can move forward with their life.  Contact Laurie online or by calling (616) 608-4634 to schedule a consultation to discuss the collaborative divorce process and how it can benefit you. 

What Is A Child Centered Divorce?

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You may be thinking what is a child centered divorce, and can a child centered divorce really be achieved?  A child centered divorce is where the parties are concerned about the impact of their divorce on the children and maintain the focus of the divorce on the needs of the children.  And yes, this can be achieved.

The following are important points you should know about a child centered divorce:

1.         Make your divorce “all about the children”, and agree to work together to keep the children’s emotional needs as their focus of the divorce.  This means that the parties’ actions, now and in the future, will be in the best interests of their children, and they will make their decisions and continue to communicate with this in mind.

Child-Centered Divorce

2.         The parties are banned from discussing details of the divorce litigation with them. This is not to say that they children should not be told about the divorce.  But information provided to the children must be in the most general terms, age appropriate, and without specific details or viewpoints.

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3.         Do not disparage the other or their family members in front of the children.  The parties shall refrain from disrespecting the other or their families and friends, and shall refrain from making disparaging remarks, false statement, and false accusations about each other and encourage their friends, relatives, and neighbors to avoid making the similar remarks.

4.         Agree never to place the children in the middle of the divorce.  It may be difficult to refrain from talking about the divorce, but with a little willpower, it can and should be done.  Children love both parents and should not be placed in a position that they feel they must take your side or choose between their parents.  Therefore, there should be no discussion, derogatory comments, or questioning of the children concerning the other parent, the other parent’s relationships, or the other parent’s activities.

5.         Children should be assured that they are not the cause of the divorce, and that both of you still love them even though you will not be living together as a family any longer.

In summary, children should be left out of disputes, and certainly do not need to know specifics about the divorce litigation.  The parents are the ones who should carry that burden of the divorce process, not the children.  Support the children by being civil to one another, and understanding that the children may be struggling with this process as well.  Put the children’s needs first to avoid putting the children through needless drama.

For assistance with your divorce process, contact Schmitt Law, PLLC to schedule an appointment.

The Difference between Legal and Physical Custody in Michigan

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The Difference between Legal and Physical Custody in Michigan

If you’re going through a divorce, or in the midst of a custody battle, it’s important to understand what the custody terms means in Michigan. In Michigan, the courts recognize two types of custody: physical and legal.

PHYSICAL CUSTODY:
Physical custody determines where the children will live and their living arrangements. Custody can be sole or joint. Sole physical custody means physical custody is given to only one parent. The child will primarily reside with that parent, and that parent provides most of the day to day care for the child. Joint physical custody means the parents share custody.

LEGAL CUSTODY:
Legal custody determines who will make important decisions for the children. If sole legal custody is awarded, only one parent has the authority to make these decisions. However, if joint legal custody is awarded, both parties will be involved in making important legal decisions for the child such as where they go to school, what religion they are, if and what extra-curricular activities the child will participate in, and major medical decisions. Joint legal does not depend on the amount of time that the child spends with each parent. No matter what the physical custody is, parents can share joint legal custody of the child.

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Examples of what joint legal custody is as follows:

  1. Each party will foster, encourage and support the relationship between the minor child and the other parent.
  2. The parties will consult together concerning major decisions involving the health, education, religion and welfare of the minor child. Neither party shall enroll the child in a school without agreement of the other or an order of the court.
  3. The parties will both use their best efforts to ensure consistency in matters affecting the upbringing of the minor child and to work together to promote the best interests of the minor child.
  4. Each parent will promptly advise the other of any illness, emergency, or other significant events concerning the minor child (including school or health problems) of which the parent becomes aware.
  5. Each parent will be entitled to complete access to the minor child’s school, medical, psychological, religious and other records.
  6. The parties shall each be entitled to be informed of all parent/teacher conferences and all other activities (including sports) and/or school programs in which the child are involved and parents are invited to attend.
  7. The parties shall each be entitled to copies of the minor child’s report cards, medical records and current school photographs.
  8. Each party shall keep the other party generally informed of his or her whereabouts in the event of an emergency, including their present address, personal telephone number, and any other emergency contact number.
  9. Each party shall decide all routine matters concerning the minor child during such time that he or she has physical custody of or parenting time with the minor child. The parties will each use their best efforts to provide consistency for the child in connection with such routine matters.
  10. Each party shall have the right to make routine emergency decisions regarding the minor child when the child are with him or her.
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DETERMINING THE CHILD’S BEST INTEREST: It’s always best when parents can agree on custody. However, when parents are unable to agree on custody, then the court must decide on custody and parenting time by reviewing the “best interest factors of the child”.

This legal test requires the court to consider these 12 factors:

  1. The love, affection and other emotional ties existing between the parties involved and the child.
  2. The capacity and disposition of the parties involved to give the child love, affection and guidance and to continue the education and raising of the child in his or her religion or creed, if any.
  3. The capacity and disposition of the parties involved to provide the child with food, clothing, medical care or other remedial care recognized and permitted under the laws of this state in place of medical care, and other material needs.
  4. The length of time the child has lived in a stable, satisfactory environment and the desirability of maintaining continuity.
  5. The permanence, as a family unit, of the existing or proposed custodial home or homes.
  6. The moral fitness of the parties involved.
  7. The mental and physical health of the parties involved.
  8. The home, school, and community record of the child.
  9. The reasonable preference of the child, if the court deems the child to be of sufficient age to express a preference.
  10. The willingness and ability of each of the parties to facilitate and encourage a close and continuing parent-child relationship between the child and the other parent or the child and the parents.
  11. Domestic violence, regardless of whether the violence was directed against or witnessed by the child.
  12. Any other factor considered by the court to be relevant to a particular child. Schmitt Law, PLLC knows that your first priority is your children, and will find creative solutions that fits your specific situation.

Schmitt Law, PLLC can advise and represent parents throughout the entire custody process, offering skilled advocacy for parents, while being empathetic to the challenges involved in determining child custody. Laurie Schmitt of Schmitt Law, PLLC is a West Michigan family law attorney specializing in collaborative divorce as well as separation, divorce, child custody and support, paternity, and other family law litigation. She is licensed by Michigan State Bar and the U.S. District Court for the Western District of Michigan, and has extensive advanced training in divorce mediation and collaborative divorce. Contact Laurie at (616) 608-4634 for a confidential consultation.

Terms and Definitions

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Terms and Definitions

I receive many calls from potential clients that have been served with a Complaint for Divorce, or are wishing to file for divorce. For parties who have never been through the legal system, the terminology used in a divorce action can often be confusing and overwhelming. Below are basic legal terms associated with a divorce action.

PLAINTIFF: The Plaintiff is the party initiating the action (filing spouse).

DEFENDANT: The Defendant is the party whom the Complaint is filed against (the non-filing spouse).

SUMMONS: The Summons is the document that used to start an action. The Summons notifies the person named that an action has been filed against him. The Summons is issued by the Clerk of the Court in the county in which the Plaintiff is filing the action. The Summons indicates the name and address of the court, the names and addresses of the parties, and the name of Plaintiff’s attorney (if any).

SERVICE OF PROCESS: The service of the Summons and Complaint must be hand delivered to the Defendant by a third party (such as a process server), or through the U.S. Mail (certified mail/restricted delivery). Once service has been complete, an Affidavit of Service must be filed with the court. The Affidavit of Service indicates the date, time, and location of service on the Defendant. If the Defendant was served via U.S. Mail, the green card must be filed with the court.

COMPLAINT FOR DIVORCE: A Complaint for Divorce is the document that initiates the divorce proceeding. The Complaint for Divorce identifies the parties, states the claims against the Defendant, and petitions the Court to grant the divorce. If applicable, a Complaint for Divorce requests the Court to make a determination regarding custody, parenting time, child support, spousal support, and division of the marital property. The Complaint for Divorce must be filed with the Court, and served with the Summons on the Defendant. The Defendant will then have 21 days to respond the Complaint for Divorce.

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RECONCILATION AND DISMISSAL: Not all divorce cases filed result in a divorce. If the parties resolve their differences and wish to terminate the divorce action, an order of dismissal must be entered by the court. Once this Order has been, entered, the case is dismissed. In the future should either party wish to move forward with another divorce action, they must file a new case with the court.

LEGAL GROUNDS FOR DIVORCE: Michigan only provides for no-fault divorce. The Plaintiff will have to state in their Complaint for Divorce, and at the final hearing that there has been a breakdown of the marriage relationship to the extent that the objects of matrimony have been destroyed and there remains no reasonable likelihood that the marriage can be preserved.

WAIT PERIOD – BEFORE THE DIVORCE CAN BE GRANTED: If there are no minor children of the marriage, there is a two month wait period. If the parties have minor children of the marriage, there is a six month wait period.