Author Archives: Jason Grubbs

How is Child Support Calculated in North Carolina?

parent-child holding handsNorth Carolina Child Support Guidelines

Child support generally is resolved by an application of the North Carolina Child Support Guidelines, which are adopted by the Conference of Chief District Court Judges at least once every four years.  The current guidelines were adopted in 2011, so they will likely be revised sometime in 2015. 

When do the North Carolina Child Support Guidelines Apply?

The guidelines apply as a rebuttable presumption in every child support case, which means that a Judge will use them in calculating the parties’ respective child custody obligations, unless one or both parties can show the court why they should not apply.  It is possible to request a deviation from the Child Support Guidelines. Presently, the Guidelines are applicable to cases where the combined household incomes are less than $300,000.00 per year.

How do the North Carolina Child Support Guidelines Work?

In most cases, child support is calculated based upon the following:

1. The gross monthly income of each parent

2. The monthly cost of work-related child care; and

3. The monthly cost of health insurance benefits for the children. Health insurance benefits include vision and dental insurance.

What About Extraordinary Expenses?

The court may consider extraordinary expenses which are defined in the Guidelines as including (1) uninsured medical expenses in excess of $250.00 per year; (2) medical expenses for costs that are reasonably necessary for orthodontia, dental treatments, asthma treatments, physical therapy and any insured chronic health problem; (3) expense for attending any special or private elementary or secondary school to meet the particular educational needs of a child; or (4) transportation expenses for the child to travel between the parents homes.

The Judge will generally require the parents to share uninsured medical and dental expenses in the same proportions as their respective incomes.

What Happens if the Court Finds that the North Carolina Child Support Guidelines Don’t Apply?

If the Guidelines are not applicable or if the Judge deviates from the Guidelines, the court determines child support based upon the reasonable needs of the child, taking into the account the accustomed standard of living of the family and the reasonable needs of each parent.  The Judge then considers the incomes and earning abilities of the parents, and their respective abilities to contribute to the needs of the child, taking into consideration their own needs for support. This is a very unscientific process, and results often vary widely from case to case.

When Do Child Support Obligations in North Carolina Stop?

Child support is payable until the child is 18. If the child has not graduated from high school when he or she reaches 18, then the obligation continues until the child graduates from high school or stops attending school on a regular basis, whichever first occurs.

Guidelines do not require parents to contribute toward the cost of private school education, unless the child has some special educational needs which cannot be met in a public school system.

The court cannot order a parent to contribute to a child’s college education. When parents are negotiating an agreement for child support, they may address these costs.

The tax laws provide that the custodial parent is entitled to the dependency exemption of the child in connection with income tax returns unless the custodial parent waives such right. Our state courts have the discretion to require a custodial parent to give up the dependency exemption and to award it to the other parent.

What If I Need Help With Child Support?

A variety of factors can affect child support, including the number of nights each of the parties’ children spend with each parent, whether one or both parents are self-employed or own businesses, whether one or both parents receive a significant amount of “fringe benefits” from their employment, etc.  It is important to consult with an experienced family law attorney if you have questions about child support.  Contact our office today to schedule a consultation to discuss your child support needs.

 

IF YOU ARE GOING TO BE THE BANK ... ACT LIKE THE BANK

We often receive questions from clients who are thinking about loaning money to a friend, family member or business associate, or are thinking about co-signing a loan with them. Sometimes our clients are thinking about “seller-financing” someone else’s purchase of real estate or a vehicle they own. In these situations, our clients are putting themselves in the position of a traditional bank or other lender and their questions revolve around “Should I do it?” and, if so, “What should I do to protect myself?” Our advice in these situations is always the same: “If you’re going to be the ‘bank’ in this transaction, you have to do things the way a bank does them.”

BankHow Do I “Act Like the Bank?”

When we tell folks they should “do the things that a bank does” we’re telling them to approach the potential transaction from an objective, business-like perspective. Banks make decisions about extending credit based on the likelihood that they will be repaid in full and with interest, and they evaluate potential borrowers based on what the bank believes is their ability to repay the loan (this is the foundation of credit reporting and scoring). This evaluation process includes gathering information about the borrower, checking credit reports, asking for references, etc. Another part of the evaluation process is determining if the potential borrower has enough equity or “skin in the game” in a potential transaction to ensure that they won’t walk away from an obligation to repay borrowed money. For instance, if a borrower doesn’t pay a down payment on the purchase of a vehicle and borrows the entire purchase price, if soon after the purchase they decide to walk away from the vehicle, they have nothing to lose.

Once a bank has made a decision to make a loan, they use legal documents which help protect the bank from the risk that the borrower will stop repaying or “default” on the loan. These documents include promissory notes (contracts to loan and repay money), and security instruments, which make personal property or real estate “collateral” or “security” for the loan (these can include liens, deeds of trust, security agreements, etc.). An individual who makes the decision to loan money, co-sign, seller finance, etc. needs to use the same type of documents to protect themselves. Our firm can help you put these documents in place so that you have the best possible chance of being re-paid.

Ask Yourself: “Why Are We In This Situation?”

Keep in mind that, if you are in a situation where someone is asking you to take a financial risk to help them, it’s likely because they are unable to borrow on traditional terms from a traditional financial institution. With very few exceptions (mainly young adults who haven’t yet established credit), this is because a bank views the individual as too much of a credit risk to make the loan. Be sure to think long and hard about whether you are willing to take a risk that a bank is unwilling to take. Often the situation is made more complicated due to some close personal relationship between you and the potential borrower. While it’s difficult, we suggest that you try to be as objective as possible in these situations. If you’re in such a situation, please don’t hesitate to call Coltrane, Grubbs & Orenstein to help you navigate the decision-making process.

When Divorce Goes to the Dogs: Custody of Family Pets During a Divorce

When a marriage ends through separation and/or divorce, two of the primary issuesDog the spouses have to deal with are custody of minor children and dividing marital property and responsibility for marital debts. But what about beloved family pets? For many of us our dogs, cats, fish and other pets are an important part of the family. What happens when you and your spouse can’t agree on what happens to Fido or Felix?

Are Pets Property or Family Members?

Courts usually to take one of two approaches to how to handle custody or possession of pets during a divorce. Some states view custody of family pets the way they view custody of minor children: they analyze the needs of the pet and determine what is in the pet’s best interest and then award custody and/or visitation accordingly. Other states, including North Carolina, view family pets as marital property to be included in the overall process of classifying, valuing and dividing the marital estate. 

How Do North Carolina Courts Handle Pets in a Divorce?

In North Carolina, family pets are lumped in with other marital assets such as furniture, bank accounts, jewelry, vehicles, etc. which are first classified as either “marital” or “separate” property, and then each given a value, the total of which is then usually equally divided between the parties. In classifying a pet as martial or separate property, a court will look at whether one of the parties owned the property before the marriage or whether the pet was acquired during the marriage. If acquired during the marriage, the pet is then valued based upon replacement cost to acquire a pet of a similar breed, age, condition, etc. Intrinsic, emotional, or sentimental value is not taken into consideration in valuing the pet. Since the pet can’t be divided in half, possession of the pet will be awarded to one spouse or the other, and the spouse not receiving the pet will offset the pet by receiving other marital property of equal value. 

What If I Don’t Want a Judge to Decide Who Gets Fido?

An alternative to allowing a court to award a pet as part of the equitable distribution proceeding would be to include provisions related to “custody” and/or “visitation” of a pet in a Separation Agreement (learn more about those here).  Using this approach, the parties can craft an arrangement where each is allowed to enjoy time with a pet and share in the cost of the care and feeding of the pet.  If there are minor children of the marriage, we often counsel our clients to consider having the family pet follow the same custody schedule as the children.  Having a beloved companion with them as they navigate a shared custody arrangement is often reassuring for children.

What Should I Do If I’m Worried About Losing My Pets?

If you are in the middle of or thinking about a separation or divorce, and worried about what might happen to your pets, contact our experienced family law attorneys to arrange for a consultation to discuss your concerns. 

We've Been Separated for a Year ... Now What? The Basics of NC Divorce

Couple FightingMany of our clients have heard or understand that they must be separated for one year before they can obtain a divorce (if not, see our previous post here).  Many of them have questions about what to do to finalize their NC divorce once the year has passed.

WHAT IS AN ABSOLUTE DIVORCE?

An absolute divorce in North Carolina is the judicial severing of the marital relationship between husband and wife.  Although much of the disentanglement of ending a marriage often takes place through a Separation Agreement, the only way to legally end the actual marriage (besides the death of one of the spouses or an annulment, which aren’t covered by this post) is by the entry by of a Judgment of Absolute Divorce by a District Court Judge or, in some cases, the Clerk of Superior Court. The entry of the divorce judgment has important consequences such as ending the couple’s right to inherit from one another and changing the way the couple holds title to real estate.  In many instances, any claims spouses have against one another for alimony, post-separation support and division of marital assets are cut off by the entry of the divorce.

HOW IS AN NC DIVORCE OBTAINED?

An NC divorce judgment can only entered after a Complaint (a lawsuit) is filed by one of the parties.  One of the spouses must have lived in North Carolina continuously for at least six months before the case is filed.  Once the Complaint is filed, it must be served on the other party.  This is generally done by certified mail or by having the Sheriff in the county where the defendant resides delivery a copy to the defendant.  Once the defendant has been served with the Complaint, he or she generally has 30 days to file an Answer, admitting or denying the allegations in the complaint.  The allegations regarding divorce are usually limited to when and where the parties were married, when they separated, and that they’ve been separated for over one year at the time the Complaint was filed. Women seeking to resume the use of their maiden name upon entry of the divorce should include a request to do so in the Complaint (if they are the Plaintiff) or the Answer (if they are the Defendant).

Once the time to file the Answer has expired or an Answer admitting all of the allegations contained in the Complaint has been filed, either party may request that a Judgment for Absolute Divorce be entered.  This Judgment is usually entered by a District Court Judge in open court; however, in certain limited situations, North Carolina law allows the Clerk of Superior Court to enter the divorce judgment.  The NC divorce process generally takes approximately 60-90 days to be completed from the filing of the lawsuit to the entry of the judgment.  It is important to understand that the divorce judgment must be entered before either of the parties can re-marry.  We encourage our clients not to make any plans for a marriage ceremony until their divorce judgment has been entered, because occasionally delays occur which cannot be predicted.

DO I NEED A LAWYER?

It is possible for individuals to represent themselves in divorce proceedings in North Carolina.  However, the entry of a Judgment of Absolute Divorce has many important legal ramifications.  We recommend seeking the advice of an experienced family law attorney before you make a decision on whether or not you should represent yourself.  Many family law attorneys will charge a relatively minimal flat fee if their services are limited to obtaining an NC divorce for a client.  If you are interested in learning more about obtaining a divorce, please contact our office to arrange for a consultation.

 

 

The Value of a Skilled Real Estate Agent

Real Estate AgentWhen you’re buying or selling real estate, one of the first things you should consider is whether or not to engage the services of a real estate agent.  The answer, in short, is “Absolutely!”  Real estate transactions are really a team activity, and you should spend some time assembling the absolute best team you possibly can (real estate agent, closing attorney, mortgage lender, insurance professional, surveyor, home inspector, etc.).  These folks excel at getting their clients over, under and through all of the obstacles that tend to pop up in a real estate transaction.  A good real estate agent often “captains” this team as you move towards closing the transaction. 

Helping you define your goals in the transaction, advising you on a listing price or buying price range, and showing you properties or making sure your property receives plenty of traffic are just a few of the things a skilled agent will do to get the “Under Contract” sign out front as soon as possible.  Many folks see this as the end of the agent’s job.  However, that’s just a small part of the value that a quality agent brings to the table.  From the time you go under contract to the time you close is when the really good agents earn their commissions.  Arranging for inspections, repairs, surveys, soil tests; scheduling closing, helping you navigate the loan process and dealing with the 1,001 small issues that come up prior to closing is when you’ll really be glad you have a real estate agent by your side.

Be careful though, not all real estate agents are created equal.  Ask friends and family or other professionals you trust for referrals.  You want an agent who is organized, prepared, professional, and who knows the local real estate market.  Look for someone who returns your calls, leverages technology, pays attention to detail, and is willing to take the time to make sure you understand the process.  At Coltrane, Grubbs & Orenstein, we have the privilege of working with some of the best and brightest real estate agents in the Piedmont Triad.  We’d be more than happy to refer you to a few of them.  Feel free to contact our office for more information.    

When am I Separated?

Broken Wedding RingOne of the most commonly asked questions we receive from our family law clients is “When am I legally separated?”  In North Carolina there are two requirements for a married couple to become separated:

1. The Husband and wife must be living “separate and apart” from one another.  North Carolina courts have interpreted “separate and apart” to mean under separate roofs.  One spouse sleeping in the guest room or on the couch is not sufficient.

2. One or both of the parties must intend to remain separate and apart from one another.  It is not necessary for this intention to be communicated to the other party.

On the date that both of these requirements are met, the couple is legally separated.

This date becomes important later, as the primary basis for absolute divorce (the legal termination of the husband-wife relationship) in North Carolina is a separation of more than one year.  Provided that the couple has remained separated for one year and has not resumed the marital relationship (isolated incidences of sexual intercourse don’t count – but aren’t a good idea – for a variety of reasons), a divorce lawsuit can be initiated at the end of the one year period.

We’re often asked whether any written document is required to establish the fact that a couple is legally separated.  In terms of establishing the date of separation for the purposes of obtaining a divorce, the answer is generally “No.”  However, often there are other reasons for establishing in writing that a couple is separated.  The most common of these is so that the couple can begin the process of dividing marital property.  Another reason is to establish each party’s rights and obligations related to custody and support of minor children.  

In these instances, the fact that the parties are separated is often established in a written agreement known as a “Separation Agreement”. A Separation Agreement is a contract between the husband and wife and is usually negotiated by the parties or their attorneys.  

Coltrane, Grubbs & Orenstein’s family law attorneys have years of experience in preparing and negotiating separation agreements.  If you’d like more information regarding the separation process, we’d be happy to assist you.  Please contact our office to schedule a family law consultation.