Case Study
Edith and Ken have been married for twenty-five years. Their children have grown and graduated from college. Edith and Ken want an uncontested divorce, but they have significant assets they need to divide by way of equitable distribution. The assets they need to divide by equitable distribution include a marital home, and a business, a bagel shop, they own together. Both of them feel strongly that they want an uncontested divorce; they do not want to have separate attorneys, and they want to preserve their assets for their children.
The Resolution of Edith and Ken
In a contested divorce, Ken and Edith would have paid individual lawyers an initial retainer of $7,500.00 each for a total of $15,000.00. A divorce a complaint would be filed and a case information statement would be completed. Discovery deadlines would need to be set and discovery would need to be completed on equitable distribution of marital assents including a marital home and a marital business. Interrogatories would be prepared and answered and depositions might be taken. In a typical divorce, their proceeding would take approximately 2 years to get to trial.
The parties were emphatic that they want an uncontested divorce, they want to save their assets for their children, and they want a fair way of resolving of equitable distribution and dividing the business.
The Mediation Solution
Rather than pursue a contested divorce, Edith and Ken met in several mediation sessions. The mediation helped them choose one financial person to evaluate and put a value on the bagel shop they owned for purposes of equitable distribution. Ken and Edith gave each other a 50% interest in the marital property and a 50% in the bagel business. Following the mediation sessions, they decided to continue in the business together, dividing the time needed to manage the store. When the marital home is sold, the husband and wife will divide the proceeds on a 50/50 basis, by way of equitable distribution.
At a certain point, they intend to sell the business, or to give it to their children. The business will be divided if sold on a 50/50 basis.
Ken and Edith were actual clients of CompassionateDivorce. They moved on to an uncontested divorce, and continued as friends in their business.