Sometimes bankruptcy can be an unfortunate result of divorce of vice versa. Divorce is commonly cited as the leading cause for bankruptcy. If you find yourself in this situation, here are some important things you should know:

1. In Arkansas, a married person can file for bankruptcy by themselves, but the spouse will still be liable for any joint debts. Therefore, if you are going through a divorce and you find out your spouse is filing bankruptcy; you will need to make sure of which debts you are jointly responsible for. The fact that one spouse discharged the debt, does not mean the other is discharge and may show on the other spouse’s credit report. 

2. It is not recommend filing for divorce and bankruptcy at the same time. Which one is filed first depends on the situation. In most situations, if the divorcing couple is amicable, it is best to file for bankruptcy first. This allows both parties to share the costs of the attorney and filing fees and could help protect you from paying joint debt. 

Additionally, married couples filing jointly in Arkansas are allowed to each claim a full set of exemptions, unless otherwise specified. Thus, double exemptions for property. For example, Arkansas allows an exemption for tools of trade such as implements, books, etc. up to $750; a married couple can claim a total of $1,500. For more information about Arkansas bankruptcy exemptions and which federal exemptions can be filed contact Kevin Hickey Law Partners for a detailed list and consultation. 

Filing for bankruptcy first simplifies the division of assets in divorce, because the bankruptcy process typically divides them. 

3. There are two types of bankruptcy
4. Chapter 7 – A liquidation bankruptcy that gets rid of your unsecured debts such as credit card debt and medical bills. The discharge usually only takes a few months; therefore, it can be completed quickly before a divorce.

Filing for Chapter 7 bankruptcy requires you to pass the Chapter 7 means test, which determines whether your income is too high. This helps eliminate high wage earners from filing for Chapter 7. 

To perform the means test, you will first need to determine whether your income is more or less than the median income in your state. Arkansas’ median income is $37,081 for a one-member household; $46,495 for a two-member household; $50,755 for a three-member household; $58,333 for a four-member household and continues to increase the more household members there are.

To calculate your income, average your monthly income over the last six calendar months. Then you need to multiply your average monthly income by 12.

If your income is over the median income for your household size, then you can calculate based on your income and expenses. Expenses that can be deducted are obligations you are legally required to pay and expenses necessary for health and welfare.

If after deducting the allowed expenses from your income, your monthly income over the next 60 months is less than $7,475 then you pass the Chapter 7 means test. If your disposable income is between $7,475 and $12,475, then you must further calculate to determine if you have the Chapter 7 filing option. If over $12,475 you do not qualify.

1. Chapter 13 – You are required to pay back some or all of your debts through a repayment plan. This type of bankruptcy typically takes three to five years to complete, so you may be better off to file after the divorce. 

If you have already filed for Chapter 13 and are under a repayment plan and you decide to file for divorce during the repayment period, you can choose to cancel or restructure the bankruptcy plan. If you cancel, you agree to stop the agreed upon payment plan, but all debt you and your spouse have assumed will be your responsibility. Restructuring the plan divides it into two cases: one for you and one for your spouse. This allows you to handle eth bankruptcy separately.

 Bankruptcy and divorce can be quite complex. You and your spouse will each need your own attorneys. Even if you chose a divorce attorney together, he or she can no longer represent you because attorneys are barred from representing clients that have a conflict of interest with each other. The bankruptcy creates a conflict for the attorney because the clients are now opponents in another legal matter.

 Contact Kevin Hickey Law Partners for more details regarding your divorce and financial situation. Every case is unique, let our expertise and experience work for you.

Everyone understands that the divorce process causes emotions to run high and people often act out of character by reacting irrationally. These irrational reactions and behaviors can have a detrimental effect on your custody case. The court will evaluate your behavior in its entirety throughout the proceedings when determining custody.

To begin when determining the placement of a child, the best interest of the child is always considered. For more details on the criteria the courts consider, see our past blog, about child custody.

No matter what type of custody arrangement you are fighting for—full, joint, weekends, etc., the court will evaluate all of your behavior. A good rule of thumb is to behave as if the judge were standing next to you each time you have any form of communication with the children and/or the other parent. This includes face to face interactions, phone conversations and text messages. This is also a good rule of thumb to keep in mind when making social media posts. Social media posts can be particularly devastating even if you later regret it and delete the post, it’s already out there and you can almost guarantee that someone has a screenshot of it. Also, avoid talking negatively about the other parent when they are with you. Kids tend to repeat and mimic everything they see and do and after all this is their mom or dad. It is always best to take the high road. The children can often feel torn and forced to choose one parent over the other.

Remain active in your children’s activities and schedules. Just because you and your ex can no longer be married, you can co-parent (see our past blog about successful co-parenting). Now is more important than ever for your children to see you at their ballgames, plays, and other activities. The courts will also take note of your continued involvement and commitment to your kids.

You are ready to move on to the next chapter in your life, but it is best to avoid moving in with your significant other. Courts are reluctant to put kids in this situation and do not appreciate children being exposed to significant others while a divorce proceeding is going on. Children have a hard time understanding that their mom or dad’s love has transferred to another person and could feel uncomfortable around the new partner.

Just as you shouldn’t criticize your ex in front of the children, do not criticize him or her in front of family, friends, co-workers, etc. You can always assume that your comments will get back to the other person.

Never deny contact, such as telephone calls, texting or social media with the other parent when the children are with you. The judge will see this as alienation of affection. Again, you don’t want the kids to feel as though they have to choose one parent over the other.

Never, never take the children out of town without telling the other parent. Besides showing disrespect to the other parent, this could be considered kidnapping and result in emergency orders restricting or terminating your parenting time or custody. According to the FBI, “By law (specifically the 1982 Missing Children’s Act), any person younger than 18 whose whereabouts are unknown to his or her legal custodian” is considered to be a missing person. When a child is believed to be abducted and taken across state lines, the FBI can become involved.

The same rule as above applies to removing children out of daycare and/or school. Even if you are the primary custodian, the children should stay in school unless there is a valid reason for the absence that has been discussed with the other parent, i.e., doctor’s visits, dental appointments.

If a temporary custody, order and child support have been put in place until a final decision has been made, be sure to follow it and pay the child support as ordered.

Finally, follow your attorney’s advice throughout the entire process. This is a stressful time and you are often not making decisions with a clear head. Your attorney will keep you focused on the ultimate goal of surviving the divorce process while protecting your rights to your most valuable asset—your children.

When fighting for your custodial rights, hire Kevin Hickey Law Partners because there are never any guarantees in custody battles. We have the experience in family law matters and are here to help you.

After the divorce is finally settled, your first instinct might be to cut all ties with your ex and move on to the next chapter in your life. If you have minor children, that is not possible. You have a lifelong connection regardless of your feelings about him or her. It is in the best interest of the children to move past the emotions and come up with a plan to successfully co-parent. Continually holding animosity towards one another creates a stressful situation for both you and your ex, but more importantly, your children.

Successful co-parenting after divorce helps the children have a feeling of stability, creates healthy relationships with both parents, lessens the chances of the children feeling abandoned by a parent, allows for a faster adjustment to the new family dynamic, less behavioral issues and many more positive influences in the children’s lives. Additionally, remember you are setting an example for your children. This is your opportunity to be a positive role model to show them how to work together in adversity.

The following tips are helpful in establishing successful co-parenting:

• Keep it professional – Think of it as a business deal. We have all worked with people we do not necessarily like, but because it was business, we successfully got the job done. This is exactly how you should consider co-parenting. Keeping communication business-like lessens the chances of saying or doing things that push emotional buttons. Keep it brief and to the point.

• Communication, communication, communication – These days there is really no excuse for lack of communication. If in in the beginning it is hard to see your ex face-to-face and communicating in a calm manner, communicate via texting and email. Be sure to review those texts and emails before sending to avoid a misunderstanding.

• Share information about important issues and events – No one wants to be kept in the dark about important issues and events regarding their children. Remember the old saying, “Put yourself in their shoes.” You wouldn’t want to be left in the dark about these things, so why would your ex. Create a shared calendar through Outlook or Google Calendar. Utilizing a shared calendar keeps everyone on the same page. If your kids are old enough, allow them access as well. If it is your ex’s visitation, communicate about the need for a baseball mitt or dance shoes ahead of time. Add these items to the shared calendar as well. It is difficult for many parents to accept the fact they will not be there for every moment of their child’s life, the calendar will allow them to have hands-on, instant access to their children’s schedules.

• Never Assume, don’t tell, discuss – Keep an open dialogue. Never assume the other parent knows or does not care to know, definitely don’t tell your ex how it is going to be without discussion. Discuss all things child-related together.

• Maintain similar rules – To successfully co-parent there cannot be two sets of rules at each parent’s home. You don’t want your children playing one parent against the other. Avoid being the “easy parent.”

• Stay flexible – Life happens. Inevitably, you will be late for a child exchange with the other parent and vice versa. Try to remember that and stay flexible when things don’t go exactly as planned. You both should try to the best of your ability to be on time, but when things happen like working late, being stuck in traffic and so forth, be forgiving. Also, have the kids ready for pick-ups and drop offs.

• Avoid confrontation in front of the kids – Of course, co-parenting is not always going to be rainbows and butterflies, but try to keep any disagreements between one another in private and away from the children. Definitely do not speak ill of the other parent in front of the kids. This destroys everything you have worked for to create a successful co-parenting environment.

• Hire a parent facilitator - If you absolutely cannot work together, consider working with a parent facilitator. A facilitator is an unbiased, third party that will help you work out parenting issues together. Think of them like a referee or coach. The parent facilitator allows you to reach amicable resolutions and agreements together without going through the court process.

Kevin Hickey Law Partners will help you work through the divorce process, custody agreements and co-parenting success. Call us today.

 In Arkansas, generally all property acquired during a marriage belongs to both parties—including a business. A business is subject to equitable property division as it is considered the marital estate. Some situations regarding business interest are cut and dry because the business interest is a minimal asset and others are not as they are a significant asset.

If you haven’t watched the Kid President videos in a while, go out and do that now. It will help establish your faith in humanity again. The people at Soul Pancake on YouTube bring some uplifting content. It was after a Kid President marathon that I explored some of the other videos recommended, and I couldn’t resist one entitled “That Moment Divorce Changes Your World.”

Divorce definitely changes your world. In this particular video, political hints and agendas aside, I was struck with how divorce can transform a lost person into the person they were created to be. We often only read or hear about the devastation and trouble divorce causes. (Yes, this is a law blog, but that doesn’t mean we believe divorce is a good thing.) In this blog we discuss matters surrounding divorce in order to equip you with knowledge, because knowledge is truly power, but what if we stopped for a minute and talked about the good that can arise from a new start? That’s what a divorce can be -- a new start. You can live your best life, even after divorce.

People marry young, and that is a beautiful, hopeful part of the human experience. Young marriages often end, even 20 years later, because people change. We should change. We should grow and expand. The challenge in marriage is that through the growth, through the change, we should stay connected to our partner. Too often, this does not happen and the rift is so wide that a bridge across is difficult to even conceive, let alone build.

What happens next is usually a divorce. But as this young woman in the video describes, divorce has the power to challenge the facade we have built around ourselves. Perhaps the relationship fell apart because it was never based on reality. Many times, as people begin to discuss their divorce, it comes down to something about identity. Sometimes it is a loss of identity. Sometimes it is discovering identity. What this woman discusses is real. When we divorce, we can find in ourselves a deeper, more authentic version of ourselves. The power of seeking through the brokenness, or wandering through the shock until we bump into it, is that we find a more authentic piece of ourselves.

Too often we build relationships around broken pieces, or incomplete ones. Divorce can keep us in this cycle, or it can free us from it. After divorce, people can feel lost, confused, hurt and alone. An individual can begin to find their way out of this by discovering who they are, what they dream, what they want, and in this way, begin to live their best life.

Remember, it’s about to get better. We’re here to help.

When a couple decides to terminate their marriage, things can and probably will get heated at some point. This is particularly true when children are involved. It is easy to lose your cool and let emotions get the best of you and, frankly, no one can blame you when things escalate, but it is important to remember your children and what is in the best interest of them. My advice to clients regarding the do’s and don’ts of child custody in Arkansas are:

1. Do Keep Discussions Age Appropriate for Children – Use your best judgement when it comes to telling kids about every detail regarding the case. Determine what is age appropriate for them. This is a difficult time for them as well; they do not need the extra stress of worrying about the case. Children will often imagine the worst-case scenario and internalize it or act out. Keep in mind this is his or her father or mother.
2. Do Not Talk Poorly of the Other Parent in Front of the Children – Again, this is your children’s father or mother. It is important to not speak ill of your soon-to-be ex in front of the kids. Besides the fact that this can affect your children mentally, courts do not look favorable on parents who throw their children in the middle of a custody battle. You should also use caution when discussing matters with friends either in person or over the phone. Make sure your kids are not around where they overhear your conversation. Do not post anything negative on social media.
3. Do Show Willingness to Work with Your Ex – Your ex will in all likelihood be in your children’s lives from now on. Therefore, it is not only important for you to work with him or her for their sake, it is important for the judge to see that you are willing to work with your ex and not using your children as pawns in an ugly divorce/custody battle.
4. Do Not Begin a Romantic Relationship – You may be ready to move on with your life after a bad marriage, but it is advisable to avoid beginning any romantic relationships until your divorce is final. If you do decide to begin a romantic relationship, absolutely do not introduce the children to your partner until the divorce is final. Keep in mind that Arkansas is a conservative state and the courts tend to frown upon children being around romantic partners.
5. Do Not Allow Unmarried Romantic Partners  to Stay the Night When the Children are Present – As mentioned, Arkansas is a conservative state and cohabitation between unmarried partners does not look favorable to the courts. Even if your divorce and custody case are final, cohabitation could be grounds for changing custody.
6. Do Be Aware that Perception is Everything – The only thing the courts have to go by is the evidence that is presented to them and what they perceive to be true. Do everything you can to present yourself to the court as a competent, involved, loving parent. This includes your appearance to the judge and maintaining proper courtroom etiquette. This also includes watching what you post on social media. Anything can be used against you. See Brad Hull’s, an attorney with Kevin Hickey Law Partners, past blog about social media and divorce.
7. Do Request an In-Home Custody Evaluation – This is not needed in every case, but as mentioned in item #6, perception is everything. If you believe that your ex could present you in a negative way to the judge, you may want to consider this option as a way to assure the courts you are a fit parent.
8. Do Maintain Honesty with Your Lawyer – In order to present your case to the best of your attorney’s ability, it is imperative that he or she knows every detail regarding the situation. Leaving out important details will damage your case and your attorney’s ability to address them before the judge.

Let Kevin Hickey Law Partners help you protect you and the best interest of your children. We can help guide you personally through the do’s and don’ts of your custody case with our extensive knowledge and expertise.

Are you thinking of filing for divorce? If so, there are few important things you should know before you file. Many times couples will start the divorce process on amicable terms, but more often than not, it does not end that way. Remember, divorce is not just a business deal gone bad, there are real emotions involved and a lot of life has happened between the two of you. Based on my experience, my top 10 tips of things to know before you file are:

1. Keep Track of Your Spouse’s Money – Has your spouse recently applied for a loan or made a large asset purchase? Keep copies of recent financial documents as well as past financial documents.

2. Take Pictures of Key Assets – When the emotions begin to spin out of control, many soon-to-be exes begin to do things out of spite like selling large assets without your knowledge, moving money around to various bank accounts. If this does happen, pictures and copies of documents will aid your case in court. When divorce proceedings start, the necessary documents can “mysteriously disappear.” Making copies ahead of time will help protect you and aid your case. 

3. Do not Hide Assets – Trying to deceive your spouse by hiding or concealing assets is against the law. If discovered, you will lose credibility in court along with any penalties like monetary sanctions that the judge decides appropriate. It is best to be forthcoming and declare all assets up front. 

4. Get Property Valued – Unfortunately, many spouses do not follow the advice of item #3, so it is necessary for you to protect yourself and get property valued. Almost all property is fair game and divisible when it comes to divorce, with a few exceptions (see my previous blog regarding division of marital property for more details about this subject), especially if you have been married for a long period of time. It is best to have items valued by an expert such as a real estate appraiser for all real property. Other items that need appraised by professionals are jewelry, art, collections, anything valuable that can’t be easily valued by the average consumer. 

5. Know Your Assets – Don’t mistakenly assume that your largest asset is your home. Do not overlook your spouse’s retirement account. The court could consider its future value when dividing assets. 

6. Know Your Debt – Do not agree to divide debt you did not accumulate. Generally speaking, unless you are a signatory on a loan document, or a joint applicant for credit, then you should not have to worry about them. As with all law, there are exceptions, debt should be handled by a separate property settlement agreement, and one spouse may be ordered to be responsible for another spouse’s debt, if there is legal justification. 

7. Know Which Monies Received are Taxable - If it is considered alimony, the person paying can be written off as a tax deduction, but the person receiving alimony must claim it as taxable income. If money is simply transferred in a divorce settlement, it is not considered taxable income. In this case, however, the person paying the money does not receive a tax break. 

8. Make Yourself Employable - It is not uncommon that one spouse has chosen to forgo his or her career in a marriage. It is advisable to update your resume and education now. It is not in your best interest to depend on an anticipated spousal support award. 

9. Know What You Want – Consider what assets and terms you want. I have seen it happen repeatedly; many couples are wrapped up in the fight and never really consider what they actually want. Fight only for the things that are important to you and use the rest as a bargaining tool for compromise. 

10. Choose the Right Lawyer for You – Find an attorney that you feel comfortable with and is a good fit for you and your case.

Every couple’s situation is different and should be reviewed by a competent attorney to get specific and reliable legal advice. Let Kevin Hickey Law Partners give you advice and knowledge specific to your needs. Knowledge is power.