Psychological Disorders and a Spouse
This case was referred to us by an existing client who was very pleased, and required modifications to a divorce settlement (post decree). The client has remarried, and his former wife had custody of the children. She suffers from borderline personality disorder and Munchausen by Proxy. Mr. Whipps initiates a motion for modification of parental rights, and asks the court to appoint a psychologist to evaluate all parties involved. The psychological evaluation clearly identified the former wife's disorders, and the correlation between the disorders and the ability to parent. The ex-wife has an independent evaluation, as does the client. The child's therapist testified as well. All evaluations agreed with the original diagnosis, and custody of the child was awarded to the father. The child is consequently doing quite well!
[Munchausen by proxy syndrome (MBPS) is a condition that involves the exaggeration or fabrication of illnesses or symptoms by a primary caretaker. There are many unique psychological disorders which can affect the harmony of a marriage. There are personality types who attempt to intimidate, manipulate or control situations and circumstances to achieve the outcomes they desire. These issues can also have a substantial impact on children of these marriages. It is important to work with an attorney who has the education and experience to understand the legal and psychological issues associated with your spouse to protect your interests and those of the children.
Hiding Assets in a Divorce Proceeding
Our client was seeking a divorce from the owner of a medical practice whom she believed was attempting to secret (hide) assets. The client has raised the children and managed the affairs of the household, and she had no income or job outside of the home. The husband (a doctor) claimed the practice had little value, cut off the wife and withheld access to bank accounts and investments. She had no money to sustain herself or to seek assistance from an attorney. Mr. Whipps successfully helped to have funds made available for the client, and issued subpoenas to multiple financial institutions. A thorough forensic accounting strategy reveals an account that the doctor had used to secret money from the wife. The firm's financial experts further help to establish a valuation for the practice which substantially exceeds the doctor's claims. The court recognized the substantial value of the practice and the money which had been hidden, as well as the alienation of one child toward his mother. As a result, the divorce decree included a large division of assets to offset the former wife's interest in the practice and all marital accounts. She was also awarded possession of the home.
It is often difficult to establish the true value of a closely-held business or professional practice. Some spouses will go to great lengths to hide assets and investments before and during a divorce proceeding. It is important to retain an attorney who can bring more than 30 years of legal experience in these matters, as well as the expert financial team to properly value a business or practice, identify and account for assets and money which may have been hidden and protect your interests throughout the process of a divorce.
Maintaining Privacy when Terminating a Marriage with Substantial Assets
When a couple has significant prominence in a community and substantial assets, it is often in their best interests (and those of their children) to maintain privacy in terms of the value of their assets and as to the details of how they are dividing them. Mr. Whipps has experience and a proven track record helping people to successfully and privately end their marriage. Mediation is an option for couples that wish to work together in a cooperative fashion, but still have genuine disagreement on a few substantial issues. Mr. Whipps often meets with the parties, mediating their issues and ultimately drafting the agreed terms as a part of their "separation agreement" (dissolution papers). Often, he will represent one of the spouses (with a different attorney representing the other) where the couple agrees in advance that their mutual goals are best achieved by working together and protecting the privacy and dignity of the termination of their marriage.
Marital property and assets in these situations may include significant real estate within and outside of the State of Ohio, or even outside of the country, valuable collectibles, antiques, gun collections, artwork, coins, motor vehicles, substantial investment accounts, deferred compensation accounts, IRAs, Pension Funds, 401K plans, Swiss or Cayman accounts, or interests in trusts.
Mr. Whipps' more than 30 years of experience are helpful to those who wish to keep the details of their divorce private. It may be possible to file their dissolution in another jurisdiction (county), just so that no one would easily know where to go to find those documents. It is important to consider making sure that the separation agreement (a publicly filed document) doesn't reveal the assets, but merely refers to other documents signed by the attorneys and preserved in a safe and secure location so that if there ever is an issue, it can be resolved and enforced without the public having access to the couple's private information. This also protects the children from the risks of kidnapping, predatory suitors, etc.
There are strategies to prevent public scrutiny of a divorcing couple's private business while preserving their public reputation(s), image, stature, and position within the community. Couples who are represented by an experienced attorney like Mr. Whipps will not be the subject of gossip and neighborhood discussion based on publicly accessible data.
Protecting Substantial Investments in Real Estate that is being held for Development
In today's economic circumstances liquidating investment property in an untimely manner can result in a substantial reduction of the net value received for that property. However, the parties may not wish to be forced to continue to participate with one another regarding ownership and other future decisions regarding the property, even though they would be best served to allow for future appreciation until that point in time when the potential for significant growth and development returns. These situations require a substantial level of experience and legal expertise, as the attorney must balance a complex series of issues. Mr. Whipps applies his more than 30 years of experience, his background in psychology, savvy, interpersonal skills and business sensibilities to develop a solution to these challenges. In some cases the use of a trust for this purpose might preserve the integrity of the property or investment, while protecting the future interests of the parties and their children as it relates to that project and/or property.
Mediation or Binding Arbitration
We have all heard stories of a couple with a high net worth taking years to litigate the issues related to their divorce, resulting in an emotional and financial toll on the couple, as well as the child/children involved. Mediation provides an excellent alternative for couples with substantial disagreement in major areas related to child custody and visitation (known as "Parenting Time" in Ohio) or division of assets and liabilities. Mr. Whipps can help to create the proper environment for a substantive conversation to take place, and guide each of the participants as they consider alternatives and decide upon a strategy that might work for them.
Some couples may wish to consider binding arbitration on financial issues. In Ohio, binding arbitration is not an option for issues relating to child custody/visitation. These options can save huge sums of money, potentially years of continuing litigation, the emotional toll involved, and the impact on the children who wonder when their parents will resolve their problems and move on with their lives.
Contact Mr. Whipps, and schedule an appointment to discuss your unique situation and the options that may be available to you to help resolve issues, and bring your marriage to an end with as little emotional and financial impact as possible.
Valuation of an Interest in a Business or Professional Practice in a Divorce
Businesses and professional practices can and should be appraised by a skilled, experienced forensic accountant. The goal of this appraisal is to determine the most accurate valuation for that medical or professional practice or business ownership interest. Mr. Whipps works with his clients to bring the right team of experts together to protect their rights, while securing the most accurate assessment of the value for the related practice, company or business involved. In some cases, both parties will have their own independent appraisals done, and in those cases it is important work with the parties involved to discuss areas of difference and determine a resolution.
The challenge can be getting accurate and complete information to the experts in the first place. In closely held companies it is a challenge to determine what portion of a business' value represents the spouse's interest. If the forensic accountant is not getting the information needed, appropriate steps must be pursued in court to compel the release of that information. Mr. Whipps has the experience to recognize the right time to work cooperatively, and the right time to take action, within the constraints of the court, to get access to the information his clients require.
If a divorce is imminent there are often ways to structure the practice/business to protect it from the impacts of a divorce. For example, consideration should be given to the placement of the interests of the party into a trust governed by an independent trustee. This can preserve the smooth operation of a business, and prevents the family from facing a forced sale. It may also prevent an ex-spouse from having access to or influence upon family matters.
The standard for an Appraisal in a divorce is different than it is for the imminent sale of a business/practice. In a divorce, the business isn't actually being sold; the professional isn't changing the nature of the business relationship with their customers/patients. One must establish the value of the "good will" and the impact of its value upon the practice/business's value. "Good will" is essentially the added value that results from the reputation and experience of the given professional whose practice is being evaluated (or business office/professional) involved. The professional involved wishes to make sure that nothing at the end of the day will have an adverse effect upon the practice or his/her ability to continue in that profession.
Mr. Whipps will apply his more than 30 years of experience to help to develop options which will effectively offset the value of that practice with some other unrelated assets, or to pay some established amount of money (sometimes over months/years) to compensate for that value. Structuring that solution requires careful consideration of tax consequences, professional liabilities, and developing a strategy that provides the greatest economic impact at the lowest possible actual cost. The spouse of the professional is usually concerned with gaining an accurate and fair appraisal of what the practice/business is worth. Once this is completed, Mr. Whipps will consider the tax situation and use his experience and the expertise of his experts to develop the best possible outcome for his clients. This use of creativity and effective application of the tax codes to benefit both parties can and usually does achieve a better result for Mr. Whipps' clients than what might come about through the completion of a court trial, as well as the likelihood of what the court might do to achieve a fair legal result. The court's options are usually more limited by the constraints of law, and they must be followed.
Significant Tax Planning is Essential
Individuals willing to cooperate with each other usually have much more flexibility to develop a strong solution that is fair to both parties, while preserving the asset involved and the interests of both. By incorporating careful tax planning, such as consideration of the different tax effects of orders for child support as compared to spousal support, they can have a substantial impact on both short and long-term tax results. Better alternatives can often be incorporated into the separation agreement (dissolution) and are usually acceptable to the court. Careful consideration should also be given to issues such as whether to make provisions for children's college expenses.
Business Litigation and Valuation Experience
What is the impact of retaining an attorney with more than 30 years of trial experience? It is usually in a client's best financial and emotional interest to resolve the issues surrounding a dissolution or divorce, when possible, without going through a trial. Some attorneys use "going to court" as a stick to intimidate other attorneys to accept the terms they are suggesting. Opposing counsel must consider the experience of Mr. Whipps, and his successful track record of success in litigated cases.
Mr. Whipps will work whenever possible to resolve issues in a collaborative environment, or to use tools such as mediation and binding arbitration, to achieve the best results possible at the lowest financial and emotional cost. Sometimes, the tactics of opposing counsel or the specific facts of a case may require action in court. In these situations, Mr. Whipps' extensive trial experience is invaluable.
Before focusing his practice upon family law, Mr. Whipps spent several years in corporate and business litigation representing major corporations in construction and other business litigation. His familiarity with the trial process, as well as dealing with judges and other attorneys in highly contested cases, enables him to proceed confidently when trial is required in a given case. Other attorneys understand that he has these skills and experience and this often discourages them from simply posturing about going to court, which increases the probability that the case will move toward a fair settlement. Thus saving both parties unnecessary time and expense.
