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Divorce And Special Needs Children in West Virginia

March 10, 2023/by Pence Law Firm PLLC

Going through a divorce is never easy, but it can be particularly difficult if you have a child with special needs. Having a special needs child can impact every aspect of your divorce – from marital property division to child custody, spousal support, and child support.

If you are the parent of a special needs child who is planning to file for divorce, you need a divorce lawyer who can provide you with the personalized legal representation you need. At Pence Law Firm PLLC, we have handled several divorce cases involving special needs children over the years and have a deep understanding of the issues that are unique to these types of divorces.

Contact us today to discuss your case with one of our experienced West Virginia divorce lawyers.

Divorce and Special Needs Children – Key Issues to be Considered

Child Custody and Visitation

Caring for a child with special needs is completely different from caring for a normal child. Depending on whether your child has a physical, cognitive, behavioral, developmental, or sensory-related impairment, they might have unique needs that other children might not have. This is something you and your spouse need to keep in mind during child custody and visitation negotiations.

Moreover, as your child grows, their needs might change drastically. You – or your spouse – need to decide whether you have the means (financial and otherwise) to care for your child and make sure their needs are met.

It’s crucial to consult with doctors and mental health professionals to get a clear idea of your child’s current and future needs so that you can come up with an effective parenting plan that does not disrupt your child’s life too much.

It should also be noted that as your child grows, you might have to adjust your parenting plan to accommodate their changing needs. If the child custody and visitation order does not give you the leeway to adjust parental duties and visitation schedules, you have to request the court to modify the order.

Spousal Support

Most special needs children require special medical care, mental health care, medications, and supplements. As a result, the custodial parent might have to spend a substantial amount of money (depending on whether these expenses are covered under the child’s health insurance plan) on a monthly basis. The court might take this factor into consideration while ordering spousal support.

Child Support

Child support payments are meant to be paid only until the child in question turns 18. Once the child reaches the age of 18, the payments stop. This is not the case with special needs children. Depending on the severity of your child’s condition, the court might order you to pay child support even after your child turns 18.

Another important issue to be considered is that your child might qualify for public benefits like social security disability insurance and Medicaid. If you pay child support directly to your child, it might be considered an income and your child might lose their benefits as a result.

You need to consult with a skilled West Virginia divorce and special needs lawyer to figure out a way to support your child without affecting their right to receive state and federal benefits.

Special Needs Trust

Setting up a special needs trust is one of the best ways to provide for your child’s needs in the future. A special needs trust is relatively easy to manage and can be a source of reliable long-term income for your child.

Two of the most common types of special needs trust that can be set up for the benefit of special needs children and adults are first-party special needs trust and third-party special needs trust.

As mentioned above, any financial assistance provided directly to your child will be considered an income and affect their eligibility for public benefits. So, you should set up the trust in such a way that the funds in it will not be considered an income while determining your child’s eligibility to receive public benefits.

Guardianship for Special Needs Children in West Virginia

Guardianship represents a profound legal mechanism, meticulously designed to safeguard the welfare and interests of individuals who, due to various incapacities, are unable to manage their own affairs. 

At its core, guardianship is a court-ordered arrangement wherein a judge designates a competent individual or entity—the guardian—to assume the responsibility of making critical decisions on behalf of another person, often referred to as the “protected person” or “ward.” 

While the concept of “custody” primarily pertains to the care and upbringing of a minor child, guardianship typically emerges as a paramount consideration when a special needs child approaches or reaches the age of majority, which is 18 years old in West Virginia, and may lack the requisite capacity to independently navigate the complexities of adult life. 

This transition from childhood to adulthood presents a unique set of challenges for families of special needs individuals, making a thorough understanding of guardianship laws in West Virginia indispensable.

When Guardianship Becomes Necessary

For a significant number of children with special needs, particularly those living with profound cognitive, developmental, or intellectual disabilities, the attainment of legal adulthood at age 18 does not automatically confer the practical ability to make independent, informed decisions. 

These decisions encompass vital aspects of their lives, including their financial management, healthcare choices, educational pursuits, vocational training, and even fundamental living arrangements. 

In such circumstances, the establishment of guardianship becomes not merely an option, but often a critical necessity. It ensures that a legally authorized individual can continue to exercise authority and provide the necessary oversight to protect the individual’s best interests and promote their ongoing welfare.

Without the legal framework of guardianship, parents, who have historically been the primary decision-makers for their minor children, abruptly lose their legal authority the moment their child turns 18. 

This sudden cessation of parental authority can precipitate a myriad of significant challenges. 

For instance, parents may find themselves unable to consent to crucial medical treatments, access their adult child’s medical records, manage their financial accounts (including government benefits like Supplemental Security Income or SSI), or even enroll them in necessary educational or vocational programs. Housing decisions, legal contracts, and general advocacy for services can become incredibly difficult, if not impossible, without a guardian’s legal standing. 

Proactive planning is therefore paramount, as the absence of guardianship can leave a vulnerable adult child without the necessary legal protection and support, potentially exposing them to exploitation or neglect. West Virginia law, like that in many other states, generally adheres to the principle of the “least restrictive alternative,” meaning that guardianship should only be pursued when less restrictive options are insufficient to protect the individual’s interests.

Types of Guardianship in West Virginia

West Virginia law offers a nuanced approach to guardianship, providing for different types of arrangements tailored to the specific needs and remaining capacities of the individual. This flexibility aims to balance protection with the promotion of the greatest possible independence.

  • Guardianship of the Person: This form of guardianship grants the appointed guardian comprehensive authority over the protected individual’s personal decisions. This includes, but is not limited to, critical choices regarding medical care and treatment, determination of living arrangements (e.g., residential facilities, group homes, or living at home), educational and vocational planning, and oversight of daily activities suchations as diet, hygiene, and social engagements. 

The guardian of the person is responsible for ensuring the individual’s physical safety, emotional well-being, and access to appropriate services that enhance their quality of life. This may extend to decisions about recreational activities, choice of friends, and, where appropriate, religious practices, always with the protected person’s best interests as the guiding principle.

  • Guardianship of the Property (or Estate): Distinct from guardianship of the person, this type of guardianship confers upon the guardian the legal authority to manage the individual’s financial affairs and assets. 

This responsibility is significant and encompasses a wide range of duties, including managing bank accounts, paying bills, handling government benefits (such as SSI or Social Security Disability Insurance, SSDI), overseeing investments, filing taxes, and managing any inheritances or trusts established for the individual’s benefit. 

The guardian of the property acts as a fiduciary, meaning they are legally obligated to manage the protected person’s finances with the utmost care, prudence, and loyalty, always prioritizing the protected person’s financial well-being. Meticulous record-keeping and regular financial accountings to the court are typically required.

  • Limited Guardianship: Recognizing that not all individuals with special needs require a complete surrender of their decision-making rights, West Virginia law provides for limited guardianship. 

In such cases, if the individual retains some capacity to make certain decisions, the court may grant a limited guardianship, where the guardian’s authority is specifically restricted to only those areas where the individual demonstrably needs assistance. 

For example, an individual might be capable of managing their daily spending and personal care but require a guardian’s assistance for major financial transactions, medical decisions, or housing arrangements. 

This type of guardianship is highly preferred when appropriate, as it aligns with the principle of maximizing the individual’s autonomy and self-determination, allowing them to retain control over aspects of their life where they possess the capacity to do so.

It is also important to note that while guardianship is often necessary, families should explore alternatives or complementary strategies. These might include Powers of Attorney (if the individual has the capacity to grant one before turning 18 or before losing capacity), healthcare surrogates, or the establishment of special needs trusts. However, for individuals with significant cognitive impairments, these alternatives may not provide the comprehensive legal authority and protection that a guardianship offers.

The Guardianship Process in West Virginia

Establishing guardianship in West Virginia is a formal legal process that typically unfolds within the circuit court system and involves several distinct stages designed to ensure due process and protect the rights of the proposed ward.

  1. Petition: The process commences when an interested party, most commonly a parent, family member, or sometimes a social service agency, files a formal “Petition for Appointment of Guardian” with the appropriate circuit court in the county where the proposed ward resides. 

The petition is a legal document that must clearly state the reasons why guardianship is believed to be necessary, provide detailed information about the proposed ward’s condition and needs, identify the proposed guardian, and outline the specific powers requested for the guardian (e.g., guardianship of the person, property, or both, or a limited guardianship).

  1. Notice: A critical legal requirement is that proper notice of the filed petition must be formally served upon the individual for whom guardianship is sought (the “proposed ward”), their immediate family members (such as parents, spouse, adult children), and any other interested parties identified by the court. 

This notice informs them of the pending legal action and their right to appear in court and object to the petition. The purpose of this notice is to ensure that all relevant parties are aware of the proceedings and have an opportunity to participate or present their views. Failure to provide proper notice can lead to the dismissal of the petition or the later invalidation of the guardianship order.

  1. Evaluation: The court almost invariably requires a comprehensive medical or psychological evaluation of the proposed ward. This evaluation, typically conducted by a qualified physician, psychologist, or other relevant professional, is crucial for determining the individual’s current capacity to make decisions regarding their personal care, medical treatment, and financial affairs. 

The evaluation assesses cognitive abilities, communication skills, understanding of consequences, and the ability to express preferences. The findings of this evaluation are presented to the court, providing essential evidence upon which the judge will base their decision regarding the necessity and scope of guardianship.

  1. Hearing: Following the completion of the evaluation and the proper notification of all parties, a formal court hearing is scheduled. During this hearing, the judge presides, reviews the evidence presented, including the medical or psychological evaluation report, and hears testimony from the petitioner, the evaluating professional, and potentially other witnesses (such as family members, caregivers, or therapists). 

The individual for whom guardianship is sought has the fundamental right to be present at this hearing, to have legal representation (often a court-appointed attorney if they do not have one), and to present their own testimony or preferences, if capable. 

The court’s primary objective at this stage is to determine whether the proposed ward is indeed incapacitated to the extent that guardianship is necessary and whether the proposed guardian is suitable and capable of fulfilling the responsibilities.

  1. Appointment: If, after considering all the evidence and testimony, the court finds by clear and convincing evidence that guardianship is necessary and that it is in the proposed ward’s best interest, it will issue an order appointing a guardian. 

This court order is a legally binding document that meticulously outlines the specific powers and responsibilities granted to the guardian, the duration of the guardianship, and any limitations or specific instructions. 

Upon appointment, the guardian typically must take an oath to faithfully execute their duties and may be required to file an initial inventory of the protected person’s assets if a guardianship of the property is established.

Responsibilities of a Guardian

Once appointed, a guardian assumes significant and ongoing legal and ethical responsibilities. Their paramount duty is to act solely in the “best interests” of the protected person, making decisions that genuinely promote their well-being, safety, and quality of life. This is a fiduciary duty, requiring the guardian to prioritize the protected person’s needs above all else.

Specific duties of a guardian can be extensive and include:

  • Personal Care: Ensuring the protected person receives appropriate medical care, attends necessary therapy sessions, and has access to essential daily living supports. This also involves making decisions about their living environment, ensuring their safety, and facilitating social activities and community integration.
  • Financial Management (if applicable): For guardians of the property, this involves meticulous record-keeping of all income and expenses, prudent management of assets, payment of bills, and avoiding any conflicts of interest. They are typically required to provide regular, detailed financial accountings to the court, often annually, to demonstrate proper stewardship of the protected person’s funds.
  • Advocacy: Navigating complex systems such as healthcare providers, educational institutions, social services agencies, and government benefits programs. The guardian acts as the primary advocate for the protected person, ensuring they receive all entitled services and protections.
  • Reporting to the Court: Guardians are generally required to provide regular reports to the circuit court, detailing the protected person’s current status, health, living arrangements, and the management of their affairs. These reports ensure ongoing judicial oversight and accountability.

Guardianship is a serious, long-term commitment that demands ongoing dedication, adherence to strict legal requirements, and a deep understanding of the protected person’s needs. Guardians may benefit from educational resources, support groups, and legal counsel to help them fulfill their duties effectively. 

It’s also important to remember that guardianship is not necessarily permanent; it can be modified or even terminated by the court if circumstances change, or if the protected person regains capacity. This legal framework, while complex, is designed to provide essential protection and support for West Virginia’s most vulnerable citizens.

Importance of a Cordial Relationship Between the Parents

Special needs children need parental love. The more involved the parents are in their child’s life, the happier the child will be. It’s why you and your ex-spouse should try to maintain a cordial relationship even after divorce.

You should consult with each other while making important decisions on your child’s behalf and find a way to be actively involved in your child’s life – regardless of the differences and disagreements you might have with each other.

Legal Help is Here from Compassionate West Virginia Family Law Attorneys

At Pence Law Firm PLLC, we know that navigating a divorce when you have a special needs child can be extremely stressful. Our legal team has over 100 years of combined experience in handling divorce, child custody, alimony, child support, and guardianship-related cases.

We can handle your case with compassion and sensitivity, negotiate with your spouse’s attorney on your behalf, and go the extra mile to achieve an outcome that is in keeping with your child’s best interests.

Call us today at 304-345-7250 or use our online contact form to schedule a consultation with a West Virginia family law attorney from our firm.

 

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Dealing with The Tax Consequences of a High Asset Divorce

February 2, 2023/by Pence Law Firm PLLC

A high net-worth divorce requires a sound legal and financial strategy in order to protect your best interests. The decisions you make at the time of divorce will majorly impact your finances going forward. High-asset divorces come with significant tax implications because of the large financial stakes involved.

The most prudent way to deal with this situation is to hire an experienced divorce attorney in West Virginia that has a thorough understanding of the potential financial and tax implications. The right attorney can provide you with the right advice at every step.

Asset Division in a High Net Worth Divorce in West Virginia

In West Virginia, marital assets are divided based on the doctrine of equitable distribution. This means that assets are not necessarily divided 50 – 50. Instead, the court will divide them in a fair and equitable manner. Several factors come into play that may leave one spouse with a larger share of the property. These are:

  • Contributions made by both spouses towards upkeep and acquisition of marital property.
  • Earning capacity of the spouses.
  • Liabilities and debts of the spouses.
  • Length of marriage.
  • Factors leading to the divorce.

Marital property essentially refers to those that are acquired after marriage. Property acquired before marriage may be termed marital property if the contributions made by either spouse led to a significant increase in its value.

Different types of marital property can be divided in the event of a high net worth divorce, such as business assets, residential and investment properties, vacation homes, bank accounts, overseas accounts and investments, stock market investments, retirement accounts, automobiles, jewelry and antiques, life insurance policies, and trusts among others.

Typical Tax Consequences During a High Asset Divorce in West Virginia

Change of Tax Filing Status

Divorce is likely to change your filing status since you won’t be allowed to file joint returns with your spouse. You need to adjust your withholdings after understanding the implications of the status change as the divorce proceedings move forward.

Possible Capital Gains Taxes on Liquidation of Valuable Assets

Capital gains tax is a tax levied on the profit from the investment or sale of a property. Divorcing couples with several high-value assets and property may decide to liquidate a few of them. You need to be careful while doing this. Asset liquidation may trigger capital gains tax liability. This means you could be taxed on the property acquired through the divorce.

It’s possible that your property is worth more now than what you had initially paid for. It is recommended to transfer the property to the other spouse. This way it will be taxed only when the spouse decides to sell it down the road. Capital gains taxes are calculated on the value increase in the property. These taxes don’t take into account the property’s value during the transfer.

Exemptions Related to Child Tax Credits

You and your spouse need to decide who gets child tax credits and any related exemptions. Only one taxpayer is allowed to claim child tax credits in a specific tax year as per the IRS. You may be able to increase certain breaks by claiming a dependent child. This includes earned income credits, dependent tax credits, or a more favorable filing status.

It can be difficult to determine which spouse gets to claim the children if a couple gets legally separated or divorced. In general, the parent with the primary physical custody gets to claim the child as a dependent. An experienced divorce attorney will usually recommend allowing the higher-income parent to claim the child as a dependent to obtain more tax savings.

Division of Retirement Benefits and Accounts

Tax-advantaged savings accounts, such as IRA and 401K are also divided during a divorce. You may get hit with an early withdrawal penalty if you don’t take the right steps to protect your savings. It’s fundamental to have an accomplished and committed divorce attorney look at your finances if you don’t want to incur penalties while sharing the retirement holdings.

Choose a Results-Driven High Asset Divorce Attorney in West Virginia

The skilled high-net-worth divorce attorneys at the law office of Pence Law Firm can ensure that you have fully considered the tax consequences of your decisions made during the divorce. With our extensive experience in handling complicated divorce and financial issues, we can help you arrive at the best possible resolution that not only protects your financial and tax interests but also allows you to take care of your family’s needs.

To set up your free and confidential consultation, call 304-345-7250 or reach us online.

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Getting Prepared When Divorce Is Your New Year’s Resolution

January 24, 2023/by Pence Law Firm PLLC

The New Year brings with it a new beginning and renewed vigor to take charge of your life and make changes that shape the future for the better. If you believe your marriage has broken down to a point of no return and that there is no reconciling with your spouse, getting a divorce may not be a bad choice.

You should speak with a seasoned family law attorney in WV, someone who has been through the legal corridors before and knows how to avoid issues for the client in any situation to determine how to go about it. An experienced attorney can protect your rights and interests through the divorce process both as an ex-spouse and co-parent.

Enlist the Support of Loved Ones

Divorce is emotionally and mentally draining, even when you are prepared for it. This is especially true if young children are involved. You need to start building a support structure with your closest friends and family members. Your team will make sure that your morale remains high even during the most tumultuous times.

On a related note, it’s critical that you don’t let their opinions cloud your judgment. You need to be clear about your decision and what you want out of the divorce. In fact, once you get the ball rolling, the only person you should seek advice from is your attorney.

Make sure you don’t disparage or badmouth your spouse. This can easily make an already grim situation worse. Depending on the type of person your spouse is, it may just make it impossible to end the marriage amicably. Moreover, children get confused, depressed, and frustrated when their parents begin blaming each other.

Prioritize Your Children

You need to understand that you cannot get everything you want from a divorce. You will need to make compromises and find common ground with your spouse. This will make things easier for the entire family. Putting the best interests of the children first is a great way of finding common ground.

You should prioritize the long-term interests of your children. This will make it easier for you and your spouse to curb any hostilities. It will also get you to work together and come up with mutually beneficial solutions.

Gather Necessary Documents

Many spouses protest the decision to divorce by destroying valuable documents. You need to prepare ahead of time and make copies of important paperwork. These documents become necessary while you address various aspects of your divorce.

You should gather bank statements, property ownership papers, insurance policies, retirement account documents, vehicle titles, mortgages and deeds, your marriage certificate, your passport, records of investment, records of court cases (bankruptcy), proof of income (pay stubs), and tax returns among other things.

Take Stock of Marital and Separate Property

The next step is to create an inventory of both tangible and intangible property. This should include both marital and nonmarital assets, including money, investments, real estate, belongings, and pets. You need to understand that West Virginia is not a community property state. This means that property doesn’t automatically get divided 50 – 50.

Instead, West Virginia determines property distribution under the equitable distribution doctrine. In addition, there are certain assets and property, such as goods received as inheritance, assets owned before marriage, and items acquired following a legal separation are not considered marital property.

Organize a List of Individual and Joint Debts

You need to assess any debt or liability you jointly owe with your spouse. You should get a clear idea about your own financial affairs as well. You should run a credit report to determine whether the data matches the information you have regarding debts and loans. You should determine whether your spouse or you are responsible for the debt.

You can use this as an opportunity to look for any discrepancies indicating fraud or errors. There have been cases where spouses have fraudulently obtained loans, credit cards, and other liability in their partner’s name. You need to address such scenarios immediately during a divorce proceeding instead of waiting months or years.

Estimating Alimony/Spousal Support

Several factors need to be considered when deciding on spousal support. A court will look at the earning potential, emotional and physical condition, lifestyle during the length of the marriage, and time required for getting a job among other factors.

Your attorney will work with you to determine whether it is appropriate to ask for spousal support and they will help you work out the proper terms and conditions for this type of support if it is granted (in keeping with your best interests).

Evaluate Your Tax Advantage

Spouses filing for divorces in January benefit from filing joint taxes for the prior year. Your marital status on December 31st determines the marital status throughout the year where the IRS is concerned. You can use the tax refund for divorce-related expenses.

Filing for Divorce? Our Reputable West Virginia Divorce Attorneys are Ready to Help You

The family law attorneys at the law office of Pence Law Firm are responsive, knowledgeable, trustworthy, and willing to go the extra mile to protect the interests and rights of clients. When you hire us for your divorce, you get an ally that will look out for your best interests, treat you like family, and fight as hard as needed to obtain the best possible outcome.

Our legal advice is based on staunch family law knowledge and a results-oriented approach to help our clients get a favorable resolution. Schedule your confidential consultation with us today. Call 304-345-7250 or write to us online.

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What the New Alimony Tax Rules Mean for Divorce Cases

December 4, 2018/by Pence Law Firm PLLC

Under the Tax Cuts and Jobs Act passed last year, alimony rules are about to change in the United States. Couples filing for divorce must settle terms before 2018 is over, lest they want to be subject to the statutes set in place by the recent tax reform.

For 70 years, alimony payments have been tax-deductible under federal law. Currently, individuals paying alimony can deduct the amount on their taxes, while individuals receiving alimony must claim payments when filing taxes. This will all change on January 1, 2019. Soon, individuals who pay alimony will not be able to deduct payments on their taxes, and individuals receiving alimony will not have to claim payments when they file their taxes. These changes already have many couples rushing to file divorce papers by the end of the year.

Although the new tax law should, in theory, benefit those receiving alimony, because they will no longer have to pay taxes on it, many are concerned it will actually be worse for those receiving alimony—especially women. Studies have indicated that women often struggle more financially following a divorce, and in many cases, their income drops over one-fifth, while men with children frequently see their income go up by a third. Although statistics show a rise in women becoming the primary breadwinners in their families, the 2010 census indicates that of the 400,000 people currently receiving alimony in the U.S., only 3% are men. Many women who need spousal support after a divorce are now at risk of receiving smaller payments from their partners, who will likely try to negotiate payments down, knowing they will have to pay taxes on them every year.

Many are also wondering how the new rules will affect postnuptial and prenuptial agreements. It is possible that courts will increasingly try to put a cap on payments now that they are no longer tax-deductible. With the shift in policy expected to raise almost $7 billion for the IRS over the next decade, one thing financial experts can agree on is that all parties who are entering into, or have recently entered into, a divorce should reexamine their agreements with an experienced accountant or divorce lawyer to ensure their current arrangement will benefit them in the long-run.

Hire a Charleston, WV Divorce Attorney Today

At Pence Law Firm PLLC, we are committed to making sure our clients receive the settlement they deserve. Our Charleston, WV divorce lawyers provide hands-on legal representation and personalized attention every step of the way, so you never have to feel like you are going through this alone. And, with years of experience in equitable distribution, spousal support, and high-asset divorce, you can trust that we know how to advocate for the maximum settlement in any case. Don’t let the latest tax laws prevent you from receiving the alimony payments you deserve, contact Pence Law Firm PLLC today.

Talk to a divorce lawyer on the phone at (304) 345-7250, or contact us online for a confidential consultation.

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