Settlement

Can Divorced Exes Remain Partners in Business?

by Brian Vertz on April 24, 2014

Business owners in Pennsylvania who are seeking a divorce may be encouraged to hear that it is possible to remain business partners even while dissolving the marital relationship. According to U.S. Census Bureau statistics, 3.7 million small businesses are owned by married couples. Many of them face divorce each year, placing their businesses at risk […]

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Suspicion of Fraud Will Not Defeat Divorce Settlement Agreement

April 14, 2014 Complex Financial Issues

Couples who have settled their divorce in Pennsylvania may recall that divorce settlement agreements are final and enforceable only if there has been a full and fair disclosure of marital assets. A recent decision of the Pennsylvania Superior Court tests this principle in a case where one spouse suspected that her husband may have been […]

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Marital Settlement Agreement Contains Implied Obligations

October 1, 2013 Court Decisions

In an unpublished decision, the Superior Court has considered the plight of a spouse who entered into a marital settlement agreement thinking that her husband would pursue a gas/oil lease, from which she was entitled to receive a share of the royalties. The Jenkins v. Jenkins decision (No. 1025 WDA 2012, September 26, 2013) arose […]

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Husband’s Divorce Settlement Forecloses Action by His Corporation Against Wife

August 18, 2013 Complex Financial Issues

In Habjan v. Habjan, ___ A.2d ___ (Pa.Super.2013), the Superior Court was confronted with a question of whether to “pierce the corporate veil” by holding Husband responsible for a lawsuit initiated by his business corporation against Wife, thereby abrogating the release that Husband gave her in his marital settlement agreement. Husband and Wife were each […]

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Pennsylvania Courts Examine Full and Fair Disclosure in Family Law Agreements

May 19, 2013 Court Decisions

Marriage and divorce are not cold business transactions. Couples who are about to marry or divorce have emotions and intimate relationships that may compromise their ability to negotiate at arm’s length like business people. For this reason, the law of Pennsylvania prior to 1990 imposed two special requirements upon family law agreements, such as prenups […]

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Court Will not Rewrite Settlement Agreement to Prevent Future Disputes

March 25, 2013 Complex Financial Issues

In an unpublished decision, the Superior Court recently declined an invitation to rewrite a marital settlement agreement in order to avoid the possibility of future disputes over the use of funds committed to a children’s trust. In Hvidzak v. Hvidzak, No. 37 WDA 2012 (February 22, 2013), the Father and Mother entered into a marital […]

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Dealing with Discovery in Divorce

April 18, 2012 Divorce

Resolving a divorce requires a lot of information. The process of exchanging information and documents is formally known as “discovery.” Our courts have issued rules that litigants must follow when requesting discovery and responding those requests. The discovery rules include deadlines for answering requests and procedures for resolving conflicts when litigants do not produce all […]

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5 Settlement Documents that Divorcing Business Owners Must Have

June 8, 2011 Business Valuation

When business owners get divorced, their settlement may have profound consequences for the business and other owners. Often, one spouse “sells” or gives up a share of the business to the other spouse. Since most small business owners do not have enough cash to pay a lump sum for that share, they might have to […]

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Lump Sum Divorce Payment: Exempt Property in Bankruptcy

September 9, 2010 Court Decisions

In Re Miller, 424 B.R. 171 (M.D. Pa. 2010) Wife/Debtor filed a chapter 13 bankruptcy petition, in which she attempted to classify an “income maintenance award” of $88,500 received in a divorce decree as property exempted from the bankruptcy estate.  The divorce decree provided that Wife was to receive $88,500 cash in order to effectuate […]

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Massachusetts Authorizes Post-Nuptial Agreements

August 4, 2010 Court Decisions

The Supreme Judicial Court of Massachusetts ruled recently that agreements between spouses who plan to continue their marriage but wish to define their legal rights and obligations in the event of divorce are enforceable in that state. Some states (notably Ohio) do not permit spouses to execute agreements waiving their marital rights unless they are […]

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