Recently in Equitable Distribution Category

In a Rhode Island Divorce "pre-marital" assets are determined by the judge assigned to your divorce case.

However, Rhode Island family court judges are guided by statutes and cases decided by our Rhode Island Supreme Court when determining which assets are "pre-marital."

Generally, pre-marital assets are outside the power of the Rhode Island Family Court to divide, distribute, or control in a Rhode Island divorce proceeding.  

However, assets only fall outside the power of the Rhode Island Family Court after the judge assigned to your divorce determines that an asset is, in fact, a pre-marital asset.  Until that time, an asset is part of your divorce and falls within the power of the court and the laws and orders regarding divorces.

A pre-marital asset is an asset owned by only one spouse prior to the marriage, and remains completely separate from the other spouse during the marriage.  This includes, its ownership, its storage, its replacement, its repair, its enhancement, any insurance on the asset, and any other aspect of the marital relationship and/or income. 

If during the marriage an asset was treated or preserved in any way, legally or practically, which indicates that it was owned by both spouses, then the asset's character may change from pre-marital to marital.

Keep in mind that any change in value of a "pre-marital asset" during the marriage may be treated as a marital asset.  For example, Deborah buys a diamond ring at an estate sale while she is single.  Deborah marries Francis.  During Deborah's twenty-five (25) year marriage to Francis, the diamond ring appreciates in value by 30%.  Even though the ring may be a pre-marital asset and typically not within the power of the Rhode Island Family Court Judge to divide and distribute, the 30% appreciation of the ring during the marriage may be considered a marital asset if the Judge determines it to be so because it occurred while Deborah and Francis were married.


Authored By:

Christopher A. Pearsall, Attorney-at-Law

Rhode Island's Full-Time Divorce* Lawyer is Now
Rhode Island's Only Divorce and Family Law Coach
!!

Discover the Tremendous Benefits You Receive by 

Participating in Family Law Coaching Sessions!

Go to RhodeIslandDivorceCoach.com


Call (401) 632-6976 Now
to
Schedule Your Low-Cost Rhode Island Divorce* or Family Law* Coaching Session!

Copyright 2009 to Present.  Christopher A. Pearsall, Esquire
 Offering Divorce and Family Law Coaching for a New Millenium!

* Rhode Island licenses all attorneys in the general practice of law.

- - Recommended Websites - -

Pearsall.net | AttorneyPearsall.com | Rhode Island Divorce Tips | ChristopherPearsall.com | GuaranteedWealth.com | Rhode Island Divorce Attorney | Rhode Island Divorce Lawyer | ChrisPearsall.com | LegalScholar.com | Pearsall-Law-Associates.comRhode Island Divorce Attorneys | Rhode Island Divorce Lawyers | Rhode Island Divorce Coach  |  RI Divorce Coach | RI Divorce Lawyer on Twitter | Rhode Island Divorce Coach on Twitter | Rhode Island Divorce Lawyer on Facebook.com | 

In a Rhode Island divorce, separation and other miscellaneous family law matters which involve the equitable division of the marital estate of two individuals, the Rhode Island family court has the power to divide the marital assets of the parties.

The specific focus of this Rhode Island Coaching tip relates to the inheritance of items.  One of the more common items inherited are stock shares and/or certificates.

Since there are countless variations of inheritances, types of items inherited, etc . . this tip is limited solely to stocks that are inherited by only one spouse during the marriage.

Consider this example.  

Jeremiah and Pamela have been married for four (4) years.  There are no children of the marriage and they do not own any real estate.  For the past four (4) years Jeremiah has paid the rent on their apartment and all of the household bills while Pamela has attended school to become a nurse.

Jeremiah files for divorce.  During the divorce proceedings, Pamela's older brother passes away and Pamela inherits seven thousand (7,000) shares of stock in Ford Motor Company which her brother's estate transfers into Pamela's name.  The estimated value of the Ford Stock is forty-five thousand dollars ($45,000).

The Ford Stock is the only actual asset that either party has that has any real value to it.

Jeremiah calculates that all the bills he has paid for them during their marriage is about $53,000.  Jeremiah believes its fair that he receive something for supporting Pamela for four (4) years while she attended school.  

Jeremiah demands one half of the Ford Stock to compensate him for Pamela's half of the all the rent and bills that he has paid for the past four (4) years claiming that this is less than 50% of Pamela's share of the bills and therefore it is fair and equitable.

Pamela doesn't have a family law lawyer and thinks that this sounds reasonable.  Before signing the settlement documents Pamela schedules a coaching session with Attorney Pearsall.

Pamela discovers that Jeremiah can't touch the inherited stock and that it is solely hers and not even part of the marital estate.  Pamela is confused because she received it during the marriage.  She does not understand why it isn't marital property.  

Rhode Island Family Law Coach Christopher Pearsall takes time to coach Pam through the thought process.

ATTORNEY PEARSALL:  Pam, it's nice to meet you and I'm sorry to hear about the loss of your brother, especially during a difficult time such as a divorce.

PAMELA:  Thank you Mr. Pearsall.  It is very upsetting to lose my brother and to have to deal with a divorce too.  I just want this divorce done with.

ATTORNEY PEARSALL::  I completely understand Pam, but since you've come to me I want to make sure you are informed.  You have a specific issue about stocks you inherited when you brother died and your husband wants half of them in the divorce to make up for half of the bills he paid for both of you while you were married.  Did I get that right from your call.

PAMELA:  Yes Sir.

ATTORNEY PEARSALL::  You can call me Chris.  You've got enough on your plate without being formal with me.  After all, I'm here to help you.

PAMELA:  Okay Mister... I mean Chris.

ATTORNEY PEARSALL:  Okay, well first Pam, there's a law in Rhode Island that makes inheritances exempt from the marital estate.  I'll give you a copy of that law before you leave.

Now, there are exceptions to that law so let's go through a few questions together to show you what the court will normally look at.  Now... as long as your answer to each question is "NO" then that Ford stock should still be just yours alone okay?

PAMELA:  Okay.

ATTORNEY PEARSALL::  Alright, forget about that Ford Stock for this question.  Are there any other stocks, pensions, annuities, 401ks or any other kind of retirement or investment accounts that either you or Jeremiah had during your marriage?

PAMELA:  No. [ Pause ]  So that Ford stock should still be mine so far, right?

ATTORNEY PEARSALL:  So far ... but let's keep going.  Does the stock pay any dividends?

PAMELA:  No.  It's just regular common stock in Ford.

ATTORNEY PEARSALL:  Great.

Pamela:  So far the stock should still be just mine, right?

ATTORNEY PEARSALL:  Right.  Now, did you put Jeremiah's name on the stock for any purpose at all?  

PAMELA:  No.  My brother just died recently and we were getting divorced so I didn't do that.

ATTORNEY PEARSALL:  So far so good Pam.

PAMELA:  Okay.. I think I understand how this coaching works now.  You take me through it step by step so I understand what I need to look at, right?

ATTORNEY PEARSALL:  You've got it... but we're on a roll here so let's keep going.  Did you put the stock certificates in a safe deposit box or in a place so that both you and Jeremiah have access to?

PAMELA:  No.  The administrator of my brother's estate still has the certificates.

ATTORNEY PEARSALL::  Okay.  Did you give Jeremiah any kind of Power of Attorney or sign any document at all that gives Jeremiah any right to keep, sell, trade or do anything else with that stock either by himself or on your behalf?

PAMELA:  No.  Nothing.

ATTORNEY PEARSALL::  Now have you sold any of those stocks?

Pamela:  No.  The administrator still has them.

ATTORNEY PEARSALL:  This is the last question Pam.  Did you apply for or take out any loans that use that stock as security for any loan?  Or did you pledge the stock as collateral for anything?

PAMELA::  No.

ATTORNEY PEARSALL:  Okay.  Now I need to make sure you understand something Pam.  I asked you these questions because the court and particularly Jeremiah or his attorney will look for anything that shows that you commingled this stock with your marriage.  If they can find something then they can argue that the court can divide it.  If they don't find anything then the stock remains yours.

PAMELA:  So the stock is mine, right?

ATTORNEY PEARSALL:  I've asked you all the usual and major questions that would be asked to tie the stock to the marriage.  Based upon what we have discussed , YES... I just want you to be aware that if there is something obscure even a small thing that we have missed then the answer might change.  I think we did a good job though.  Is there anything else you can think of that relates to your marriage or Jeremiah and the Ford Stock that you haven't mentioned?

PAMELA:  No.  So does that mean that I shouldn't give Jeremiah half of the stock because the law says so?

ATTORNEY PEARSALL:  Actually, it means that Jeremiah probably doesn't have a legal right to those stocks at all.  However, it's really up to you what you decide to do with the stocks and whether you give any to Jeremiah.

What you did with me here is very important.  You looked at the stocks with me step by step and now you know that Jeremiah probably can't touch them even though he is trying to make a convincing argument because the law says they should be yours.

PAMELA:  I am glad I made this appointment.

ATTORNEY PEARSALL:  Best of all, you did the analysis with me by going through the questions and you know that if Jeremiah comes up with an argument that doesn't tie the stock to your marriage in some way, then it isn't an argument that gives him a right to part of those stocks.

PAMELA:  Thanks Chris.  This has been very educational.

ATTORNEY PEARSALL::  That's what I'm here for Pam.  I coach you through your issues but you're the real expert in the end because no one knows your life better than you.

PAMELA:  And its my decision as to what I want to do with the stock?

ATTORNEY PEARSALL:  You can agree to give Jeremiah some of them or you can take the position that legally they are yours and he is not entitled to any of them.  That's up to you Pam.  But now you know the stocks should be yours and what the test is for your husband to have any legal claim to them.

PAMELA:  That's great.  This worked out better than I thought Chris.  Thanks.  It was nice meeting you.  Here's a check for our session.

ATTORNEY PEARSALL:  Thank you.  It has been my pleasure to serve you Pam.  That's what I'm here for.  Call me again if you need any more coaching.


General Rule:  Items inherited solely by either party are not part of the marital estate and are the property of the individual who inherited them and are not subject to division by the Rhode Island Family Court.  

General Exception:  If the person who inherited an item commingles (mixes) that item in with marital property that IS subject to division, then the court may find that the inherited item has lost its "inherited character" and has become a marital asset of both parties which is subject to the court's power of division.






Unfortunately the question in the title doesn't say it all.  It's a little too broad but I'll try to tackle major issues just the same.

Addictions come in many forms.  There are alcoholics (alcohol addictions), gambling addictions, prescription drug addictions, and illegal narcotic additions to name the major forms most prevalent in the Rhode Island Family Court System today.

The addiction is unclear in this question by a caller that I received some time ago.  It's fairly general and unfortunately the circumstances dictate what can be expected from the court based upon the type and nature of the addiction.

Let's assume for the sake of this article that we are dealing with the most common addiction I've experienced in the past 10 years as a Rhode Island divorce lawyer, namely alcoholism.

The Rhode Island Family Court has an official policy that recognizes alcoholism as a treatable illness and does not take a prejudicial stance against the alcoholic based upon the alcoholism or the failure either to receive treatment or to succeed at treatment.

Alcoholism and its existence in one spouse in a marriage create an interesting challenge for the family court judges.  Though alcoholism falls under a specific policy of the Rhode Island Family Court System as compared to other addictions which essentially does not penalize the alcoholic spouse simply for being an alcoholic, this is not a "get out of jail free card" so to speak to let the alcoholic off the hook to conduct him or herself in any manner he or she may choose. 

Actually, to the contrary Rhode Island Judges are bound to consider the conduct of the parties during the course of the marriage.  While the alcoholism is considered a treatable illness, this does not excuse any actions of the alcoholic parent which may have caused damage to the marital finances or the marital relationship.  A Rhode Island judge is still bound to consider the actions of the alcoholic spouse in contravention of the marital covenant. 

Thus, if an alcoholic spouse causes severe physical abuse to the other spouse which causes the degradation and ultimate breakdown of the marriage the Rhode Island family court judge may (and should) consider the severity of the conduct of the alcoholic spouse not withstanding his or her ability to get treatment.  In fact, the court's consideration would be reasonable if the spouse acknowledged their alcoholism but refused treatment before the exisence of additional underlying actions by the alcoholic spouse that substantially contributed to the breakdown of the marriage.

It is best to consider that the Rhode Island Family Court judge will give precedence to the policy of the Rhode Island Family court system.  However, it is all too easy to rely on the court's policy and leave it at that.  Whether you have a divorce lawyer or your are acting on your own behalf it is best to keep in mind the destructive effects of addictive behavior on your marriage and the availability of help, counseling or other action by the addictive individual that might have prevented conduct by the addicted spouse that was destructive to the marriage.  There is nothing harmful or improper about calling this content and context to the court's attention in your divorce in order to make an argument for a disproportionate share of the division of the marital assets or a lesser apportionment of the marital debts.

Remember, that while alcoholic addiction is understood as a treatable illness by the court, it does not necessarily excuse the destructive conduct of a spouse who had opportunity to take advantage of treatment for alcoholism before and refused that treatment before all or part of the marriage destroying behavior occurred. 

Ultimately, the court is empowered to consider the conduct of the parties during the course of the parties' marriage.  If an alcoholic refuses available treatment and thereafter engages in behavior that is destructive to the marriage, the policy of the family court that alcoholism is a treatable illness is negated by the known availability of such treatment, the refusal of treatment, followed by the damaging actions to the marriage.  The conduct should then be considered by the court for purposes of apportioning the assets and debts of the marriage.

In the end, unless you keep this in mind and make the argument, the Rhode Island Family Court Judged is likely to take the position of the Rhode Island family court's policy and leave it at that. 

Remember, if you are not your own best advocate, don't expect anyone else to advocate better for you (even if you have a lawyer) after all... who's life is and future is at stake here... yours or your attorneys.

in another article positing I will address the other addictions you and the court might face and how each might me treated in turn.

Authored By:

Christopher A. Pearsall, Attorney-at-Law

Call (401) 632-6976 Now to Schedule Your Rhode Island Divorce Coaching Session!

Rhode Island's Full-Time Divorce Lawyer is Now
Rhode Island's Premiere Full-Time Divorce Coach
!!

Copyright 2009.  Christopher A. Pearsall, Esquire
A New Rhode Island Divorce Lawyer for a New Millenium!

* Rhode Island licenses all attorneys in the general practice of law.

- - Recommended Websites - -
Pearsall.net | AttorneyPearsall.com | Rhode Island Divorce Tips | ChristopherPearsall.com | GuaranteedWealth.com | Rhode Island Divorce Attorney | Rhode Island Divorce Lawyer | Chris Pearsall | LegalScholar.com | Pearsall-Law-Associates.com | Rhode Island Divorce Attorneys | Rhode Island Divorce Lawyers | RhodeIslandHomeBuyingTips.com | WholesaleQuiltBattingandFabrics.com

Recent Entries

Some Rhode Island Divorce Lawyers are using Forensic Computer Data Recovery Specialists!
In Rhode Island divorces, lawyers are finding that much of what they may be looking for regarding marital infidelities, finances,…
Rhode Island Divorce Lawyer's Tip: Pension's Vested or Not Vested?
If either party in a Rhode Island divorce has a pension then there are various issues you will want to…
A Rhode Island Divorce Lawyers Tip on Your Rights to a Spouse's Accident Claim!
A recent call from one of my Rhode Island clients sparked an interesting issue regarding the client's divorce.  It is…