Saturday, September 1, 2018

Concealing Assets with Bitcoin in Divorce

Concealing Assets with Bitcoin in Divorce

Hiding assets during a divorce is illegal and ill-advised. If discovered, it could negatively impact the perpetrator’s ability to receive a fair settlement during the division of assets portion of the divorce negotiations. We’ve previously discussed bitcoin here, here, and here.

One method of asset concealment that has gained popularity in recent years is to hide assets with Bitcoin. Tech-savvy people have been using Bitcoin, a form of cryptocurrency, to transfer money under pseudonyms without interference from a bank or government authority. The privacy associated with Bitcoin has made it a prime source for asset concealment for those going through the divorce process.

How do people get caught concealing assets with Bitcoins?

Although Bitcoin does offer users a certain level of privacy, it is still traceable. If a person going through a divorce transfers large amounts of money into a Bitcoin exchange, it’s likely to raise red flags. The same is true of large cash transfers or withdrawals used to purchase Bitcoin from various points of sale.

Digital forensic experts have also become quite savvy at tracking the use of Bitcoin and other forms of cryptocurrency.

Even if investigators are unable to determine exactly what a person is doing with cash withdrawals, it’s still possible that such unauthorized withdrawals were made in bad faith and dissipated marital assets. If a Divorce Lawyer in Salt Lake City Utah can prove that was the case, a court may decrease the amounts of assets or property the perpetrator receives. In some cases, criminal charges could result, as well. It would be a very bad idea to conceal assets. It can result in the person hiding the bitcoin to end up in jail.

What Happens to the Wedding Rings?

When a marriage ends in divorce, one uncomfortable decision is related to what happens with the couple’s wedding rings. This can be a big deal for some people, especially if the rings were expensive or were important family heirlooms.

There are some cases on record in which courts have classified wedding rings as gifts, which means the person who gave the ring no longer has any legal entitlement to it. However, there are several factors that could go into determining who takes possession of rings:

  • Inter vivos gifts: Inter vivos is Latin for “between the living,” which refers to any type of gift made by one person to another while both are still alive. This contrasts with gifts left through a will and inheritance. Once the gift is delivered to the receiver, it is not allowed to be recovered by the person who gave it.
  • Gifts causa mortis: Causa mortis means “on the occasion of death,” and refers to any gifts made in contemplation of one’s passing. This is not, however, a gift given through a will. Rather, it is a gift given while the donor expects to die imminently. For example, if a woman’s father gives his future son-in-law a meaningful family heirloom when he expects to die, but he survives and his daughter’s marriage ultimately breaks down, he can legally recover the gift made causa mortis.
  • Conditional gifts: Some jurisdictions view engagement and wedding rings as “conditional gifts,” which mean as long as a person meets a given condition, he or she is allowed o keep the gift. If an engagement were to fall apart, for example, that condition would not have been met, which means the person who gave the ring could potentially recover it.

Free Consultation with Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Friday, August 31, 2018

Real Estate Investment Company in Utah

Real Estate Investment Company in Utah

A new client asked us:

Are there any special requirements for a Utah real estate investment company – either a corporation or an LLC that owns real estate compared with other LLCs or companies or corporations?

Are there any formation for compliance requirements that I need to be aware of?

Lawyer for Real Estate in Utah Responses

Answer from one of the lawyers in our office:

Typically speaking, no. The requirements would be the same as any other LLC, company or corporation, depending on what you set up.

A full real estate consultation would be necessary to necessary to properly advise you. I am a real estate agent in addition to being an attorney in Utah.

Answer for another attorney in our firm:

The requirements for organizing a corporation or LLC that owns and operates real estate are no different than those for corporations or LLCs engaging in any other businesses.

Another response from a real estate lawyer:

No, there are no special requirements for a Utah limited liability company which owns real estate. The requirements are the same.

Oh and this lawyer provided this disclaimer: The foregoing discussion does not establish an attorney-client relationship, is qualified by the limited facts presented above, and should not be relied upon as legal advice. To obtain definitive legal advice upon which one can rely necessitates retaining an attorney who is qualified in this particular area of the law. That’s good advice right. You should call us if you have any additional questions or concerns.

Free Initial Consultation with a Real Estate Investment Lawyer in Utah

It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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What to Do if Your Spouse Delays the Divorce Process

What to Do if Your Spouse Delays the Divorce Process

Divorce can be a long and stressful process, especially if your former partner seems to be trying to delay it as much as possible. If this is happening to you, it’s important to understand that there are strategies available to fight back against the delay tactics and keep the case proceeding as smoothly and efficiently as possible.

Steps to take to prevent delays

In some cases, individuals attempt to delay a divorce in hopes of repairing the relationship. They could ask the court for extensions, or simply refuse to respond to any filings you have made in court.

As soon as the deadline for responding to the paperwork has passed, you are able to seek a default judgment, in which a judge gives you exactly what you are seeking in your divorce petition. Because your spouse did not respond, the court could assume that he or she agrees to the terms you have set. You will still need to show the court you provided your spouse with proper notice, but the chances of a positive result are good.

What’s more frustrating is when your spouse does respond, but takes as long as possible to do so. There are situations in which individuals will request extensions, regularly cancel depositions and refuse to agree to mediation times. You might have to take stronger action to get your former spouse to cooperate in these situations. For example, if the individual continually cancels depositions, you may file a formal motion to have the court take action.

Fraudulent Marriages

Many individuals are happy to be married once. Many individuals are happy when that first marriage ends and would never think of marrying again. However, one woman, in the Bronx, was so enamored with the idea of being married that she didn’t stop with one marriage, or even two. She was married ten times, and at one time was married to eight men at the same time.
In fact, Liana Barrientos was not, it would seem, marrying for love. Rather, she was part of a larger scheme to assist men in entering this country while avoiding ICE detection. She has been charged with filing a false instrument, her application for a marriage license and the signed marriage license itself. Additionally, she is being investigated by homeland security for her actions.

While this situation is not very common and has therefore grabbed the attention of the media, there are situations where an individual may have been previously married and abandoned their first spouse only to start a new life with a new “spouse”. If both parties are happy it would seem that this situation should not be a problem. However, where a spouse disappears and “re-marries” both the old spouse and new spouse may suffer.

In the State of Utah property acquired during a marriage, with limited exceptions, will be considered joint property. If a prior spouse is abandoned, all of their acquired wealth is subject to equitable distribution should a prior spouse re-enter that spouse’s life. This prevents a spouse from pursuing their own happiness as they are constantly in danger of having their property “equitably distributed” between themselves and a spouse who has been absent and holding themselves out as married to another person.

With respect to a second, or third or fourth, spouse, they will not be entitled to any equitable distribution of their “spouse’s” assets. As there is no valid marriage, there would be no equitable distribution and therefore, if the parties were to divorce, the “new spouse” would be prevented from obtaining a share of the martial assets, as there would not, in fact, be any marital assets.

Free Initial Consultation with Lawyer

It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Thursday, August 30, 2018

Is a Living Trust Necessary?

Is a Living Trust Necessary

Living trusts are a great way to leave your loved ones property without having to go through the expensive hassle of probate. Probate refers to the process of a special court distributing one’s property to heirs after death. This can be a very lengthy and expensive process, especially with larger estates. There are a number of ways to avoid probate, including pay-on-death bank accounts, holding joint tenancy with your partner, life insurance policies, gifting assets before death, and naming beneficiaries on your retirement accounts. All of these are limited to certain types of property. A living trust has no such limitations. Living trusts allow you to avoid probate, work within the broad planning flexibility a will offers, and gift pretty much all of the property of your estate to trusts.

However, a living trust still may not be necessary in your case, depending on your age, size of your estate, and marital status. As wonderful and beneficial as they are, living trusts do have drawbacks. Setting up a living trust takes longer to establish, involves more routine upkeep and maintenance, and is harder to alter, compared to a last will and testament. It is best to use a lawyer when setting up a living trust, but this can cost more than $1,000. Even after setting up a living trust, you still should create a last will and testament, as a back-up. The benefits of a living trust can still outweigh the drawbacks, however, if setting up a living trust is right for your situation.

Consider the following factors and decide if you should set up a living trust.

Your Age May Be a Reason Not to Create a Trust

Because of the cost and energy of maintaining it, setting up a living trust may not be right for you if you are under the age of 55 and relatively healthy. A living trust serves you no benefit during your lifetime. A young, healthy person will probably not have to worry about the costs of probate for years to come. Until then, creating a will that is easier to create and maintain will suffice in transferring your property should something happen to you unexpectedly. Furthermore, recent techniques in avoiding probate are becoming more and more accepted. As you get older, these techniques will more than likely become even more common, mooting the need for you to worry about living trusts.

Do You Have a Small Estate?

The bigger your estate, the more assets you have at risk of losing in probate. Therefore, the wealthier you are, the more you can potentially save by avoiding probate. The types of assets also make a difference. If you own something, like a business that would be harmed if tied up in probate proceedings, going forward with creating a living trust might be sensible. Even if you are young and healthy, it would be smart to avoid risking your executor having to report on your business to a judge for a long length of time.

What is your Marital status?

Married couples who plan on leaving their property to each other have less of an interest in setting up a living trust, especially if you own your large assets jointly. Probate is not necessary for those types of assets. For property that is not owned jointly, most probate procedures are pretty good at speeding up the process for surviving spouses, which also makes it cheaper.

Not Sure If You Should Set Up a Living Trust? Call an Estate Lawyer

There are numerous reasons you might want to set up a living trust. Talk to an experienced trust attorney to find out if a living trust is right for your particular situation.

Free Consultation with a Utah Estate Lawyer

If you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Can I Divorce My Spouse If He or She Is In Jail?

Can I Divorce My Spouse If He or She Is In Jail

The short answer is yes.  Yes, you can divorce your spouse if they are in jail.  According to Domestic Relations Laws in Utah, incarceration in prison does not preclude an individual from filing for divorce against a spouse or having divorce filed against him or her by a spouse. In fact, imprisonment for three continuous years or longer is acceptable grounds for divorce in Utah.

There are two options for divorcing a spouse who is imprisoned:

  • If the sentence is for three years or longer and at least three years have been served, the non-incarcerated spouse can file for fault-based divorces on grounds of imprisonment.
  • If the sentence is for less than three years or if less than three years have passed, the imprisonment grounds are not yet valid. But either spouse can file on no-fault grounds, citing irretrievable breakdown of the marriage (or the non-incarcerated spouse can wait the full three years before filing).

Additionally, the non-incarcerated spouse has up to five years following his or her spouse’s release from prison during which the incarceration grounds remain valid, if at least three continuous years of the sentence were served.

How do I initiate divorce from my incarcerated spouse?

First and foremost, in order to obtain a divorce from an incarcerated husband or wife, you must meet residency requirements in Utah. As the spouse filing for fault-based divorce, you’ll have to serve your incarcerated spouse with the appropriate documents — a Summons, a Complaint and an Affidavit of Service — all of which your attorney can help you prepare.

Filing for divorce while incarcerated

If you are in prison and wish to divorce your non-incarcerated spouse, you can do so by citing irretrievable breakdown, or, if you have reason to believe that fault-based grounds such as adultery occurred, you can cite that. It should be noted that you are entitled to a court-assigned divorce attorney if you cannot afford representation on your own.

Understanding Your Children’s Legal Rights

Minor children under the age of 18 years old are afforded certain rights to protect their best interests as they grow up. It is important that divorcing parents understand the legal rights of their children so that they can report any violations to their attorney or local authorities. The following are several key legal rights of kids:

  • Right to proper care: The state of Utah has laws in place that protect the fundamental needs of children. When an individual becomes a parent, they are responsible for providing proper shelter, food, clothing and health care to their child. Parents who do not provide these necessities for their children may have parental rights taken away.
  • Right to education: All children have a right to attend school. In the case of disabled children, schools must provide special education for the child whenever possible. Divorced parents are responsible for ensuring that the child is properly enrolled in school and facilitating all necessary transportation and financial support needed to secure an education.
  • Right to legal representation: If you fear your child may be abused or neglected while in the other parent’s care, you may enlist the support of an attorney who can help you modify custody orders with the help of a judge. The court places the best interests of children as a top priority in all custody and child support proceedings.
  • Right to court-ordered visitation: When a judge grants a noncustodial parent visitation rights, it means that the child is legally permitted to spend time building a relationship with the parent. Parents with custody cannot interfere with visitation schedules or attempt to restrict the child’s access to the noncustodial parent.

Free Consultation with Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Wednesday, August 29, 2018

Estate Administration

Estate Administration

Any probate lawyer will tell you that wills are the most common way for people to state their preferences about how their property should be handled after their death. A will is similar to an instruction booklet for the probate court, the court that oversees estate administration and disputes over the will itself. The will provides the court with guidance as to how to distribute the deceased person’s assets in accordance with his or her wishes.

In and Out of Probate

Wills have been referred to as “tickets to probate court.” In large estates, the only way to legally transfer assets in accordance with the will is through the probate process. However, wills only control probate assets, that is, those assets that can be transferred by the probate court. Some assets do not have to be probated and generally are not controlled by a will. These assets include:

  • Life insurance proceeds, which are paid to the beneficiaries designated in the policy.
  • Property held in joint tenancy, which provides that, upon the death of one joint tenant, the deceased person’s interest automatically passes to the surviving joint tenant(s).
  • Property held in living trusts.

Because these assets are transferred by means other than the probate process, a will generally does not control how they are distributed.

Example: A person names her spouse in a beneficiary designation to receive her life insurance proceeds on her death. In her will, she names her sister to receive those same proceeds. Because the proceeds are paid directly to the spouse, they never become part of the deceased person’s estate. Therefore, her will, which only controls her estate, cannot override the beneficiary designation.

Will Validity

A will must meet certain formal requirements in order to be valid, otherwise it may be challenged during the probate process. These requirements vary from state to state. Generally, the person making the will (the “testator”) must be an adult of sound mind, meaning that the testator must be able to understand the full meaning of the document. Wills must be written in most circumstances. Some states allow a will to be in the testator’s own handwriting, but a better and more enforceable option is to have a typed or pre-printed document.

A testator must sign his or her own will, unless he or she is unable to do so, in which case the testator must direct another person to sign the will in the presence of witnesses, and the signature must be witnessed and/or notarized. A valid will remains in force until revoked or superseded by a subsequent valid will. Some changes may be made by amendment (a “codicil”) without requiring a complete re-write.

Limitations of a Last Will and Testament

Some legal restrictions prevent a testator from giving full effect to his or her wishes. Some laws prohibit disinheritance of spouses or dependent children. A married person cannot completely disinherit a spouse without the spouse’s consent, usually in a prenuptial agreement. In most jurisdictions, a surviving spouse has a right of election, which allows the spouse to take a legally determined percentage (up to one-half) of the estate when he or she is dissatisfied with the will. Non-dependent children may be disinherited, but this preference should be clearly stated in the will in order to avoid confusion and possible legal challenges.

Will Executor or Personal Rep

A will usually appoints an executor or personal representative to perform the specific wishes of the testator after he or she dies. The personal representative consolidates and manages the testator’s assets, collects any debts owed to the testator at death, sells property necessary to pay estate taxes or expenses, and files all necessary court and tax documents for the estate.

Dying Without a Valid Will is called Intestacy

While wills may be “tickets” to go through the probate process, not having a will forces the probate court to distribute the property without guidance from the testator. Dying without a will leaves an estate intestate, and a probate court must step in to divide up the estate using legal defaults in order to give property to surviving relatives. A personal representative must still be appointed, but the court must choose someone rather than following the deceased person’s wishes.

The court pays any unpaid debts and death expenses first, and then follows the legal guidelines. The rules vary depending on whether the deceased was married and had children, and whether the spouse and children are alive. If the intestate individual has no surviving spouse, children or grandchildren the estate is divided between various other relatives. Therefore, intestacy means that people who would never have been chosen to receive property may do so. Additionally, state intestacy laws only recognize relatives, so close friends or charities that the deceased favored do not receive anything.

If no relatives are found, the estate goes to the government in its entirety. Intestacy also poses a heavy tax burden on estate assets. When made aware of the consequences of intestacy, most people prefer to leave instructions rather than subject their survivors and property to mandated division.

Probate isn’t Necessary in Every Case

Where some small estates are concerned, a will may not have to be probated. If the value of the assets in the estate is below a threshold established by state law, a short estate proceeding may avoid the probate process entirely.

Free Consultation with a Utah Estate and Probate Attorney

If you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Financial Fear During Divorce

Financial Fear During Divorce

Fear of a compromised financial future is common during divorce. Understanding the fear—and knowing what to do about it—is essential.

Because of the requirement to divide debt and assets during divorce, couples of all ages are concerned about getting their fair share. For individuals closer to retirement, the need is more urgent with fewer years remaining to rebuild a nest egg.

With longer term marriages, a significant disparity may exist between the earning potential of spouses. For a less-monied spouse who has been out of the workforce, financial worries can include:

  • An incomplete picture of the assets and income of the household
  • Lack of knowledge about household debt load, leading to unfortunate surprises when the true financial condition becomes known
  • A poor understanding of the household budget and lifestyle costs
  • Insufficient individual credit history
  • Financial and other threats made by a partner in hopes of securing unfair agreements, unfair child custody or financial arrangements

Each of these fears is realistic but can be addressed with assiduous homework and by retaining skilled legal counsel. Consider these tips to fight financial fear during your divorce process:

  • Become informed: Review and copy bank, tax, investment and other statements. Review the checkbook and credit card statements to understand what you need to move forward.
  • Check your credit: Order a credit report. Review and close unneeded or joint accounts. An unused home equity loan can lower your credit score and leave you financially vulnerable. Apply for credit in your own name if you have not already done so.
  • Retain legal counsel: Work with experienced, aggressive legal counsel to protect your rights, finances and future.

When Does a Spouse Have Rights to a Revocable Trust?

For numerous reasons, individuals or couples may choose to place property in revocable trusts. These trusts hold the property during the grantor’s lifetime and then pass that wealth onto heirs when the grantor dies. When a trust is revocable, the grantor can change the terms, including the named beneficiary, at any time. The question for couples going through a divorce is whether a grantor spouse can amend the trust to remove the other spouse as beneficiary. The answer depends on the original terms of the trust, the timing of its formation, and the source of the assets that funded the trust.

If both spouses are named as grantors, the court will operate under the presumption that the trust funds are marital property and should be divided equitably. But if only one spouse established the trust, it is possible that the trust is separate property, and the grantor spouse might be free to amend its terms.

However, the signature on the trust might simply be a formality. What’s more important is when the trust was established and where the funds came from. If a grantor formed the trust before the marriage and only added the spouse as beneficiary in consideration of marriage or after the wedding, the court could treat the trust and its funds as separate property. If the grantor formed the trust during the marriage, he or she would have to show that only separate property funded the trust. If the grantor used joint assets at any time to fund the trust, the court will consider it marital property and divide it equitably.

Finally, the court can use trust income as a factor in determining child support and alimony.

Free Consultation with Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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