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Excerpts from articles about Family Law Software (formerly Family Law Software).


HERS.ONLINE
BY TODDI GUTNER

MAY 18, 2000

Making Plans for the Big Split

New software and Web sites can help women prepare financially for divorce

"How about a story on what women really can lose in divorce -- a lifetime claim on a man's wages?"

This recent e-mail from a reader made me ponder how women facing divorce could better prepare themselves financially. Indeed, the subject needs addressing, since women generally suffer financially from divorce. It's true that women often end up with the biggest asset -- the house. But the costs of maintaining a house and raising kids can be a huge cash drain, and often, women don't negotiate to get a chunk of any big pay raises their ex-spouses may receive after the divorce. According to Long Island University's National Center for Women & Retirement Research, the average woman sees a 45% drop in her standard of living after divorce, while the average man improves his standard of living by 15%.

"How about a story on what women really can lose in divorce -- a lifetime claim on a man's wages?"

This recent e-mail from a reader made me ponder how women facing divorce could better prepare themselves financially. Indeed, the subject needs addressing, since women generally suffer financially from divorce. It's true that women often end up with the biggest asset -- the house. But the costs of maintaining a house and raising kids can be a huge cash drain, and often, women don't negotiate to get a chunk of any big pay raises their ex-spouses may receive after the divorce. According to Long Island University's National Center for Women & Retirement Research, the average woman sees a 45% drop in her standard of living after divorce, while the average man improves his standard of living by 15%.

With sobering statistics like these, it's not surprising that a niche of financial planning has sprung up to deal with divorce-related issues. Divorce planning, which focuses on financial issues such as taxes, pensions, child support, and alimony, uses special software to help you project the future impact of a proposed divorce settlement. This vital information can help you negotiate fair settlements in the valuation and division of property and financial assets.

...

For the do-it-yourselfers, there's a new comprehensive suite of financial divorce-planning software that can be downloaded from www.FamilyLawSoftware.com. "We wanted to create software to help people make smarter decisions at this stressful but critical moment of their lives," says Daniel Caine, president of Family Law Software Inc. Caine and his partner, Wendell Smith, are no strangers to self-help software. They created Kiplinger's TaxCut, the No. 2-selling income tax software, in 1986 and sold it to H&R Block in 1993 for a hefty sum.

Recently, I did a trial run of Family Law Software's Deluxe Edition Bundle, the most comprehensive of the seven software packages you can purchase from the site. I was impressed. The opening page gives you a warm and supportive welcome with simple, easy-to-follow instructions on how to use the program. The easy-to-navigate file tabs across the top of your screen (Life, Law, Calculators, Support, Advisor, Pensions, and Forms), and the highlighted, underlined phrases to click for additional information make for an extremely user-friendly experience.

BATTLE TACTICS. As for the content, I think any software designer would be hard-pressed to top this program. Under each tab, the homepage describes what you can expect from the section. For example, under the Life tab, the goals include helping "decide whether or not to divorce," and helping "understand what your children are feeling and thus parent them effectively." I tapped into the "Help -- I'm Facing Divorce!" section and found a host of answers to frequently asked questions such as "What is the legal process?" "Should I stay in our home?" "How should I find a good lawyer or mediator?" and "What can I do to come out better financially?" I clicked on the last one and found gender-specific advice.

Once I was in the area of Financial Strategies aimed at women, I found yet another comprehensive list of suggestions. They included advice on getting copies of all financial records (and specifics of what's important and what's not), making a list of all your assets (and what those might be), and methods for finding hidden financial assets. One such method is keeping close tabs on all mail that comes to the house, with an eye for unfamiliar bank or brokerage statements.

For the men, the list includes deferring a bonus, deferring a raise, and hiding financial records. But as in the women's section, the authors emphasize that they don't necessarily agree with all of the advice. They include it to give a two-sided picture of the divorce process. So you get both sides of the battle -- but the presentation presumes the woman is always the victim.

SHIFTING SCENARIOS. Other areas under the Life tab include Divorce Negotiations, For the Children, and Remarriage and Blended Families. Under Divorce Negotiations, you'll find sections on custody, alimony, child support, and property division. For each topic, the authors offer a few general tips. For example, for negotiating property divisions, they suggest that individuals agree on valuations, take easy-to-sell assets, pay attention to tax effects, allocate debts, and pay off credit cards. But all of the general tips are linked to in-depth discussions.

The software's Calculators, Advisor, and Pension tabs allow people to play out different "what if" scenarios to make the best-informed decisions possible. For example, with the Calculators, you can see the bottom-line income, taxes, and aftertax net for each spouse, the aftertax impact of a given level of alimony or child support, and the effect of one spouse or the other claiming the children as exemptions. Those are just three of 10 calculations you can do. The Pension Calculator helps you with the all-important issue of valuing defined-benefit pensions, a difficult but necessary task. And the Financial Advisor Calculator helps you plan your finances through a series of easy to understand graphs and charts. It can help you plan how to live on the income you will get, reach an equitable property division, and save money on taxes.

The Law tab addresses the law in a number of states and will answer property, alimony, and custody questions. The Support tab helps you analyze the child-support guidelines in a number of states. And the Forms tab allows you to download the necessary state forms you need to file when going through a divorce.

OTHER RESOURCES. That's just the tip of the iceberg. If you're going through a divorce and have the wherewithal to punch some numbers in your computer, this program is worth the time, effort, and cost. You can choose to purchase unbundled versions of the software components as well. You can get the Divorce Calculators, Child Support Guideline Calculators, Divorce Financial Forms, Financial Advisor, Pension Evaluator, and the Family Law Software Bundle (which includes everything but Pension Evaluator, as well as the Deluxe Bundle (which includes everything). While the cost per program is reasonable, I think the Deluxe Bundle is the best deal.

...

Remember that any ground you cover on your own will lower the fees you pay to your divorce attorney, mediator, or certified divorce planner. Divorce is potentially the biggest financial transaction of any woman's life. Be prepared.

Gutner is Women & Investing columnist for Business Week. She offers advice twice a month for BW Online

EDITED BY BETH BELTON

Toddi Gutner
Toddi Gutner covers personal finance for Business Week


Knight Ridder - Posted on Mon, Jul. 19, 2004 

Family Law Software can help smooth financial wrinkles

BY JAN WARNER AND JAN COLLINS

Knight Ridder Newspapers


(KRT) - Q: After 22 years of marriage, I found that I was not only in shock, but also in big trouble! Financial trouble, that is. My husband handled all of the big financial decisions, and I was allowed to decide what to buy for supper next week. Now, three months after our separation, I am expected to understand and be proactive in the financial aspects of our case. I know it's my future, but I am ill-informed and way behind the curve. How can I catch up?

Q: My wife and I are thinking about separation and probably divorce. Despite our personal feelings, we are still able to talk and understand that unless we get our finances straight, one or both of us could get hurt. We have both talked to lawyers, but have not gotten much help. How can we move ahead with our financial lives without the bitterness and expense that we know accompanies most divorces?

A: Unfortunately, many of the more than one million couples who divorce each year are so frazzled and taken off the mark by "non-issues," that they ignore the fact that divorce is the largest financial transaction of their lives. In our opinion, those who are able to understand this and do something about it are halfway home to a better overall result.

But how do they get there? Clearly, most divorce lawyers are not financial planners, and books are simply not interactive enough to allow folks to make the transition quickly and efficiently. While a good software program could be beneficial in helping folks sort out the financial issues, until recently, we did not know one existed.

Then we purchased Family Law Software, tried it ourselves, and found that it can help with such decisions as: Should I sell the house, refinance and live there, or move to an apartment? Do I need to go back to work? How can I cut back on expenses? How much alimony is fair? Who should pay for our children's educations? Who will get the most tax advantage by claiming the dependency exemptions? What is the current value of our pensions and how can we divide them equitably? What happens when pension and Social Security payments kick in?

By using this program in conjunction with your lawyer, you can understand and have quality input into the negotiation of your property settlement, an alimony award, and even evaluate a defined benefit pension plan. You and your spouse can see where you really are, financially and where you are headed.

Family Law Software will generate clear reports and graphs that explain the financial situation to you. It is easy to learn and use, and best of all, if you don't like it, the company offers a full money-back guarantee.

We think that this clear-sighted dose of realism can help get to settlement sooner, or at least understand the basics of what your lawyer and certified public accountant are talking about. And for folks in ten states, the software can even help calculate child support guidelines. We believe that this software package can help divorcing couples plan their finances, make important decisions, and have a better chance of getting their cases settled because both husband and wife can be better informed.

Developed by the same folks who sold TaxCut to H&R Block, the founders have done a very good job with a difficult topic. This software is available at www.FamilyLawSoftware.com or by calling 1-877-477-5488. And even if you don't buy the program, you will find free calculators on their Web site that will help you with some important calculations.
---
(Jan Collins is a writer and editor. Jan Warner is a matrimonial, tax and elder-law attorney. Both are based in Columbia, S.C. Please send your questions to P.O. Box 11704, Columbia, S.C. 29211, or e-mail to flyingsolo@janwarner.us, or see www.flyingsolo.com for some free suggestions and tips.)
---
© 2004, The State (Columbia, S.C.).
Visit the State at http://www.thestate.com
Distributed by Knight Ridder/Tribune Information Services.


July 2000 Kiplinger


Kiplinger's Magazine

Splitting the Pie

By Kevin McCormally

How to hold your financial future together when your marriage is breaking apart.

As if the emotional issues of untying the knot weren't nettlesome enough, divorce can also be one of the largest and most convoluted financial transactions of a lifetime. Money decisions made -- in the heat of anger or the calm of careful calculations -- are likely to leave an indelible imprint on the balance sheets of divorcing husbands and wives.

"People wind up being harmed a lot more emotionally and financially by divorce than they need to be," says Harvard Law School grad and software developer Daniel Caine. He's developed a program that he hopes will limit the damage.

Family Law Software products and its complementary Web site (www.FamilyLawSoftware.com) offer a wealth of practical information on the legal and emotional issues of divorce, as well as the financial ones. The Web site is free. It includes generic information about the legal aspects of divorce, and specific details about the laws in the ten states where Caine says more than half of all divorces occur: California, Florida, Illinois, Indiana, Massachusetts, Michigan, New York, Ohio, Pennsylvania and Texas. The Web site also includes general information on how child-support obligations are figured.

The software, which buyers download from the site, costs from $5 for a single use of one of several calculators (such as one to figure the division of marital assets) to $199 for a package that includes reusable calculators, a full-fledged financial planner and a program designed to figure the current value of a husband's or wife's interest in a company pension plan.

"A lot of people have never done any financial planning," Caine says. "But when they divorce, it is forced upon them."

He thinks the biggest financial mistake people make in the midst of a divorce may be failing to understand the value of the assets involved. "It's amazing how often the wife gets the house and the husband gets the pension," Caine says. "But that might be wildly wrong for purposes of what's fair." Family Law Software's pension-evaluator software -- which is available outside the package ($99) or for one-time use on the Web ($49) -- makes quick work of valuing a pension.

The software is particularly strong on tax issues -- not a surprise since Caine and his partner in this venture, Wendell Smith, teamed together in the '80s to create the tax-preparation program that evolved into the highly acclaimed Kiplinger TaxCut software, now published by H&R Block. (Kiplinger has no association with Family Law Software.)

Tax help ranges from the relatively simple -- such as showing how shifting the right to claim children as tax dependents from one spouse to the other affects each spouse's tax bill -- to the tricky. Caine admits that the alimony-recapture calculator "helps people who want to legally disguise a property settlement as alimony." (Alimony may be deducted by the person who pays it; property-settlement payments are not tax-deductible.)

You still need a lawyer

Disclaimers in the software take pains to make it clear it's not designed to give legal advice nor substitute for an attorney. In fact, the Web site includes referral listings to lawyers, mediators and other professionals.

But Caine is confident that the Family Law Software's Web site and software will hold down users' legal fees by giving them a better sense of the issues involved in a divorce. "This is basic training," he says, noting that time saved not asking an attorney rudimentary questions is money saved. And when it comes to financial issues, he says: "Attorneys who specialize in domestic relations have negotiating skills. They typically do not have skills in financial matters."

Vivian Gray is a believer. Gray, a 34-year-old Massachusetts woman with one child who asked us not to use her real name, is nearing what she hopes is the end of a divorce that has dragged on for more than two years.

She already had an attorney when she began using the Family Law Software Planner and admits that she was "spending a lot of time asking what was down the road and what terms meant: depositions and motions and filings and all this stuff." But the program changed that. "I didn't have to spend time getting the lawyer to teach me the basics. At $285 an hour, if I was saving three to five hours a month, I was saving a lot of money."

Gray says that what she learned from the Family Law Software Planner allowed her to "ask more intelligent questions, and that triggers the professionals to give more focused advice. They can cut to the chase more quickly."

The program also taught her something her accountant didn't know: That because she had been separated from her husband for more than the last six months of the year, she qualified to file her taxes as a head of household. "If it wasn't for the Family Law Software Planner, my accountant would never have suggested it to me," Gray says. "In fact, at first he didn't agree. But once he found out that the program was correct, it saved me more than $1,000 in taxes."

 

June 6, 2000 MSNBC


How to rebound financially when on the rebound
in your relationship
By Jean Sherman Chatzky
It?s sad to say but nearly half the marriages in the United States don?t make it ??til death do us part? which leaves a lot of us confused ? including financially. So what do you do when your marriage is over and you have to rebuild your own financial portfolio? Money magazine?s editor-at-large and ?Later Today? financial contributor Jean Chatzky has some important information on how to start over and make sense of it all.
       IT?S NOT EXACTLY a happy thought: Nearly half of all marriages end in divorce. But facts are facts, so you don?t have the luxury of thinking it could never happen to you ? none of us do. And sadly, many women are around to attest that financial hardship often follows divorce. On average, a woman?s standard of living drops by 10 percent, and long term, the economic fallout can be even more devastating: More than one-fifth of all divorced women live at or below the poverty line.
       So it?s crucial to quickly establish your financial independence when you decide to split up. Begin with your divorce agreement, which states your arrangements for child custody and support, alimony, and the division of assets. (Even if you?re using a mediator ? as more and more people are today ? you should see an experienced matrimonial lawyer before agreeing to anything. That?s true even if you?re on good terms with your soon-to-be ex.)
       Here are some things to think about when you?re negotiating a divorce settlement, as well as after it is final.
       
YOUR BUDGET
       Before agreeing to child support and alimony, make sure to make an accurate forecast of your needs. A budget that accounts for your current living expenses is only part of it, because your needs are likely to change. You?ll probably be working more out of the home, for example, so you should budget more for childcare. And remember that you?ll no longer be covered by your husband?s health plan, and you may also need more life and disability insurance.
       If you need some help with your projections, or with other divorce-related financial issues, try a new software package called (appropriately enough) Family Law Software. (For downloads and prices go to www.FamilyLawSoftware.com)

June 25, 2000 - New York Times



     Many couples visit lawyers for a pre-
nuptial agreement before the trip to the
alter, but even that foresight does not 
mean a divorce will not be contentious.  A
new Web site about divorce issues,
www.FamilyLawSoftware.com, sees an example of the
problem in a recent court case.
     The case, Witowski v. Witowski, was
decided on May 5 in the District Court of
Appeal of Florida.  The court found that 
although the prenuptial agreement listed 
the husband's pension as his property,
only what he owned before the marriage
and the appreciation on that part were his
alone.  What he and his employer contrib-
uted during the marriage and the appreci-
ation on those contributions were marital
property, the court ruled, and the wife was 
entitled to a share.
     The lesson of the case, Family Law Software-
mented, is that a prenuptial agreement
should be very clear on issues involving a
pension, a business or any other asset that
is created before the marriage and is
contributed to during the marriage.
     Family Law Software Inc. was founded by Daniel
Caine and Wendell Smith, also the cre-
ators of Kiplinger's TaxCut Software, now
sold by H&R Block.  The site offers free
help and advice in three categories of
divorce problems: legal issues like custo-
dy, alimony and property division; finan-
cial issues like calculating child support
or a pension's value; and lifestyle issues
like stress and anger.  It also has links for
finding professional help in each state and
sells software that provides more detailed
assistances.                  JAN M. ROSEN

 

 

USA Today Aug 2, 2001 - Money


Divorce spawns financial services

By Sandra Block, USA TODAY

Two-income couples on the brink of a breakup are fueling a boom in divorce-related financial services ? from specialized financial planners to how-to-divvy-it-up-yourself software.

* * *
Software. Byzantine tax laws have led millions of Americans to buy tax software to do their tax returns. Now, some companies are betting the complexities of divorce will provide the same boost for divorce-related software.

Family Law Software Inc., launched last year by two of the creators of Kiplinger's TaxCut software, offers packages that analyze child support, alimony, pensions, taxes and other divorce-related subjects. Prices range from $49 to $199.

"Other than the purchase or sale of a home, a divorce can be the largest financial transaction of someone's life," says co-founder Daniel Caine.

 

Dec. 11 issue ? Marriage is about love; divorce is about money. And these days it?s about a lot of money. Couples that in other eras might have fought about the house and the china now have stock options, retirement plans, time shares and even frequent-flier miles to split up.
* * *
    Sites like Diamond's, or Family Law Software, which features several alimony and property-division calculators, are making breaking up easier to do for couples who can work out their own deal. Someday, maybe they?ll have help with the bills. The National Underwriter, an insurance magazine, recently floated the concept of ?divorce insurance? to help make legal and support payments. Couples could still get married for love, but they?d have a backup if it ended up being all about money after all. 

? 2000 Newsweek, Inc. 

 

Oct 11, 2000 CBS MarketWatch




Mastering post-divorce finances

By Jennifer Openshaw, CBS.Marketwatch.com 12:57 PM ET Oct 11, 2000

REDWOOD CITY, Calif. (CBS.MW) -- Experts tell us that money problems are the root of too many failed marriages. But if you think money was tight when you're married, imagine life after divorce.

"I think the biggest difficulty newly divorced women face is budgeting -- making sure to live within their new budget."

Daniel Caine,
Family Law Software Inc.

First, there's paying for two living quarters. If you have children, that means housing large enough for them to have their own rooms in each.

Then there are two times the utility bills, furniture, electronics, bedding, and even kid's clothes and toys at both households.

You'll have twice the cost of auto insurance-- as opposed to one policy with a two-car discount -- and two times the cost of health insurance, instead of the cost savings of a family policy.

And as for aspirations, if you couldn't afford a second home when you were married, the odds aren't terribly good once you go solo.

Forced hands

The number of housewives thrust into the workforce due to separation, divorce, widowhood, or spousal disability has grown to over 16 million since the 1980s, according to the U.S. Census Bureau. And 57 percent of those women live at or below the poverty level.

Basically, the only time two can live as cheaply as one is when the two are living together in the same household. Once the marriage is dissolved, so are the savings.

Trying to reconcile accounts after the break-up is the real challenge.

"I think the biggest difficulty newly divorced women face is budgeting -- making sure to live within their new budget," says Daniel Caine, president of FamilyLawSoftware.com, a Web site designed to help people deal with the many complex issues of divorce.

Most divorced couples are forced to think "out of the box" when it comes to splitting the budget, Caine says. "The most common solutions are to change jobs to earn more income, move to lower cost living arrangements, revise child support and alimony payments, and many women go from part-time jobs to taking full-time jobs."

Family Law Software sells software products that facilitate financial planning for divorcees. For example, designing divorce agreements that plan not just for today's expenses, but for the future as well. That includes how an ex-spouse will help pay for their children's orthodontia, camps and college.

"A woman basically gets one shot at her divorce settlement," Caine says. If she doesn't consider those costs ahead of time, he says, many times she'll get stuck providing them all by herself.

 

 



Posted at 7:05 p.m. PDT Saturday, October 21, 2000

It's not hard to find online help for dealing with divorce

BY LARRY MAGID
Special to the Mercury News

Getting a divorce and fighting over custody, alimony and property isn't something couples look forward to, but for many families, it's a fact of life. While technology can't remove the trauma from this difficult situation, it can provide resources to -- at least -- help you better understand the process.

That's the goal behind Family Law Software (www.FamilyLawSoftware.com), a Newton Centre, Mass., company founded by Dan Caine, the author of the income tax preparation program, H&R Block TaxCut.

The company operates an information Web site and publishes PC software that can help you do ``what if'' calculations on the financial implications of divorce.

Caine, who has not been divorced himself, created the company after selling TaxCut to H&R Block, because he wanted to "develop a consumer product that grew on his strengths in the tax and financial areas that `would a make significant difference in people's lives.''

The site has a great deal of useful and detailed information with sections devoted to ``life issues,'' ``legal issues'' and ``financial issues.'' The life issues section begins with a step-by-step description of the entire process from filing a petition to the final judgment.

There are also discussions on ``Who will get the children?'' ``What can I do to get custody?'' ``What will happen with alimony, support, and our assets?'' as well as sections on what you can do to come out better financially, how to deal with your fears and threats from your spouse. Each is broken down into further details, typically for both men and women in those areas where gender is an issue. There is even a short discussion on the effect of your or your spouse's affair.

My favorite section is ``Still working on the marriage'' because it contains advice that all married couples can use, especially partners who are on the fence about whether or not to seek a divorce. In fact, many other areas of the site are worth looking at if you're thinking about leaving your spouse because they provide perspective, including the up and down sides of proceeding with a divorce.

The meat of the Web site is a series of calculators that you can use to determine the specific financial impact of a divorce as well as to calculate property division, one-time alimony buyout, and impact to each party of the sale of your home. You fill out the information online but to get a report of the results e-mailed to you, you need to pay $5 (by providing a credit card).

Another option -- which makes sense if you have a lot of calculating to do -- is to buy the Family Law Software Program software. There are several editions of the software, beginning at $19 for the basic divorce calculators all the way up to $199 for the Deluxe Edition Bundle that includes the entire suite of tools. The Deluxe Bundle also will calculate each party's federal and state income tax obligations and includes additional calculators for determining child support and the value of spousal pensions. There is also an extensive ``financial adviser'' section that helps you better understand the financial consequences of your situation, including helping you divide your property and save money on taxes. You can order the software via CD-ROM or download it from the Web site.

 

Aug 14, 2000 USA Today


Breaking up is hard on health

Just ask Rick Rockwell and Darva Conger

Aug. 14, 2000

By John Morgan
With medical adviser Stephen A. Shoop, M.D.
A Doctor In Your House.com

Rick Rockwell and Darva Conger kiss during the now-infamous 'Who Wants To Marry A Multi-Millionaire?' (Carin Bear, AP/Fox)

Bruce Willis and Demi Moore. Ted Turner and Jane Fonda. Howard Stern and wife Alison. Elizabeth Hurley and Hugh Grant. Helen Hunt and Hank Azaria. Meg Ryan and Dennis Quaid.

Celebrities are ending their relationships faster than Jackie Collins can write a new novel. In fact, finding a star that hasn't either separated or divorced is almost as difficult as explaining why Robert DeNiro made Rocky and Bullwinkle.

But when it comes to breaking up, it may not be just the lawyers and the tabloids that have a field day. Splitting can also bring your physician or therapist into the picture.

"Ending a close, dependent relationship like a marriage can have very serious consequences, not just psychologically but physically as well," says Rosalinda O'Neill, psychotherapist and licensed marriage/family counselor. "Physical consequences can include hypertension, insomnia, increased anxiety, and weight gain or loss."

Take Fox TV's on-air matrimonial mismatch couple Rick Rockwell and Darva Conger for example.

"The only good thing that's come out of this is I've lost 10 pounds," said Conger, whose trimmed torso was displayed in last month's Playboy. "I call it the 'stress diet,' but I sure wouldn't recommend it to anyone."

"I hardly ate for the first few weeks," chimes in Rockwell. "I was married only 36 hours, but I feel like I aged 10 years."

Rockwell has incorporated the Who Wants To Marry A Multimillionaire? debacle into his revived standup comedy routine, but initially he wasn't laughing. "I didn't feel like myself and had almost no energy," he recalls. "I used to sleep at least seven hours, but now I'm lucky to get five. I'm not the free spirit I used to be."

* * *

July 13, 2000 TheStreet.com


TheStreet.com - D-I-V-O-R-C-E Doesn't Have to Spell High T-A-X-E-S

 

The Aliases of Alimony

The upside to the alimony payment is that it's a tax deduction for the person paying. If the receiver is in a much lower tax bracket, than it's actually worth more to the payer to get the tax deduction, notes Dan Caine, president of Family Law Software, a software company that helps people going through divorce. "The tax savings to the payer exceeds the tax bill to the receiver."

 

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