A DIY online divorce, also known as a “do-it-yourself “divorce, is an alternative to traditional litigation. This method involves filing for divorce online and does not require a divorce lawyer. This process could potentially save thousands of dollars on legal fees. DIY divorce websites offer many online options that save divorcing spouses money, time, and stress involved with an uncontested divorce. Divorce can sometimes be devastating. However, your divorce does not have to become a soap opera. If you and your spouse can agree on the legal and financial issues involved in ending your marriage, you may avoid the stress and anxiety of a divorce trial before a judge. The uncontested divorce process can be relatively quick and usually much less expensive than a traditional contested divorce. Uncontested DivorceTo get an uncontested divorce in Utah, you must reach a settlement agreement on all of the issues in your divorce, such as: If you’ve already agreed on these issues at the outset of the process (and you file the proper forms, discussed below), you may get an uncontested divorce as quickly as possible (after a brief waiting period) and without having to attend a court hearing. When this is the case, you can probably go through the divorce process without hiring a lawyer. But it’s often a good idea to have an attorney review your settlement agreement to be sure that it’s fair and protects your rights. And you might want to have a lawyer (or a mediator with financial expertise) help draft the agreement if you have the type of assets that are complicated to divide, like retirement plans or a family business. Even if you and your spouse still have some disagreements when you file for divorce, you might still be able to avoid a trial if you can ultimately resolve those disputes—typically, with the help of lawyers and/or mediation. In fact, when couples have any contested issues after starting the divorce process, Utah requires that they participate in at least one mediation session. However, the longer it takes you to reach a comprehensive settlement agreement, the more you’re likely to pay for things like attorneys’ fees and experts. Utah’s Residency Requirement for DivorceWhether you’re requesting a traditional or uncontested divorce in Utah, you must meet the state’s residency requirements: You or your spouse must have lived in the state, and in the county where you file for divorce, for the three-month period just before you file. If you haven’t resided in Utah or the county long enough, you’ll need to wait until you meet the requirement before you can start the divorce process in the state. Preparing the Uncontested Divorce FormsThe Utah Courts offer an Online Court Assistance Program (OCAP) to help divorcing couples prepare divorce paperwork without an attorney. There are separate packages of forms for the spouse who initiates the divorce proceeding (the “petitioner”) and the other spouse (the “respondent”). To simplify matters, you might instead use an online divorce service that will complete the proper uncontested divorce forms for you, based on your answers to a questionnaire. Some of these services will guarantee that the court in your state will accept the completed forms, so you shouldn’t have to worry about making mistakes. When you’re filing for an uncontested divorce, the forms will include: The required paperwork to complete a divorce in Utah might vary from county to county. Check with your local court clerk for more information and to determine whether you need to file additional forms. (You can also request a hard copy of any required forms from the clerk’s office.) Filing Your Uncontested Divorce PaperworkOnce you have completed and signed all of the forms, take them for filing to the court clerk’s office in the district court covering the county where you or your spouse have lived for the past three months. You can find locations and contact information for district court at the Utah State Court Directory. You will need to pay a fee to file the divorce papers (currently $325). If you can’t afford the fee, you can request a waiver. (For more information, see the Utah Courts page for court fees and waivers.) Because the respondent acknowledged receiving the divorce petition (in the forms packet, there’s no need to complete formal service of process. Completing Your Uncontested DivorceAfter the divorce petition is filed, Utah has a mandatory 30-day waiting period before the process can be finalized. The waiting period may be waived only under extraordinary circumstances. Also, before the court may enter the divorce decree, couples with minor children must complete two educational courses: a divorce orientation course and a course on children’s needs during divorce. Because the responding spouse has agreed to entry of the divorce decree under the terms of the settlement agreement, there’s usually no need for a court hearing to finalize your uncontested divorce. Instead, a judge (or court commissioner) will review the paperwork to ensure that it’s complete, reasonable, and in your children’s best interests. If so, the judge will sign the final divorce decree and judgment, which will incorporate your settlement agreement. Why Opt for Uncontested Divorce?Uncontested divorce usually requires less timeIn a fast-paced world, there are several reasons for choosing an uncontested divorce. The process is generally quicker than a contested divorce because there is no need to appear in court. Although divorces in Utah do require a minimum of 6 months to be finalized, avoiding court will save significant time, money and heartache in any state. The pre-trial process, the appearances in court, the trial itself and the significant delays inherent in any court system, regardless of jurisdiction, add significant time and impediments to receiving a final judgment on your marriage. Settling your issues outside of court is especially helpful if you have children, as you can avoid the tension and trauma of dragging your children though the court’s costly and time-consuming child support and custody proceedings. Uncontested divorce is cheaperBecause of the speedier nature of an uncontested divorce, the costs are dramatically lower than the costs of a contested divorce. The average cost of a contested divorce in the United States is around $15,000. Conversely, non-attorney uncontested divorces can cost as little as the filing fees. Retain control and privacy during the processAnother overlooked advantage of an uncontested divorce is the ability of the divorcing couple to maintain privacy and control over the process. Relinquishing control to attorneys and judges forfeits a couple’s ability to be masters of their own destinies and shape the outcome of issues like alimony, child support, and co-parenting. How Do I Handle Finances In An Uncontested Divorce?Pro Tip: The difference between common-law and community propertyWhether you are getting a traditional divorce, an online divorce or a divorce recourse, it is highly recommended that you seek advice from an investment professional or financial advisor. It is never good to handle investments and finances alone during your divorce. Look for a “Certified Divorce Financial Analyst” in your area. These individuals often act as mediators for both parties, even in uncontested divorces. In addition to working out the best possible outcome for you financially, divorce experts will help to keep you and your spouse calm during your financial negotiations, especially in discussions related to child support and spousal support. Considering the fact that many couples let their emotions get the best of them during a divorce, this is extremely beneficial for everyone involved. Analysts are used by many individuals worldwide, both during traditional divorces and online divorces. Figure out if you live in a Community Property or Equitable Distribution stateThe geographic area you and your spouse reside has a big impact on how assets and debts will be allocated after your divorce. Community Property states – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin and U.S. territory of Puerto Rico – determine that any assets or debts acquired before the marriage are considered personal property, and anything acquired during the marriage is community property. All other US states follow Equitable Distribution, which requires a judge to decide what the fair split of community property should be. This usually results in the higher-earning spouse getting two-thirds of the property, and the lower earning spouse getting one-third. Understanding which financial process you and your spouse are required to follow based on where you live is the first important step to managing your finances in a divorce. Pro Tip: How Divorce Can Impact Your InheritanceIdentify Assets and Debts Acquired Before Your MarriageTake time to conduct an audit of your finances to identity what was acquired before and after your marriage. This will enable you to assess your personal property independently of your community property. Unfortunately for those who learn this after the fact, it may already be too late. Asset difficulties are one of the most common issues couples face after splitting up. Educate Yourself on Divorce and Be RealisticThe divorce experts instead of trying to get everything done quickly, it is important that you spend time educating yourself and being realistic about your financial needs. Often times, individuals who have lived somewhat lavishly find themselves nearly broke after their marriage ends – even if they use more cost-efficient options like an online divorce or divorce recourse. This is usually because couples do not understand how the laws of their state will mandate the division of community property. Yes, it is possible to file your own divorce and complete the process without the aid of an attorney. However before you commence a do-it-yourself (DIY) divorce, consider these tips. You’re probably a good candidate for a DIY divorce if: Do You Have the Time and Temperament?Sure, you want to save the money, but do you have the time to research your state’s law, gather the documentation, and follow through with court filings and appearances? At the same time, you will need an even temperament to deal with the roller coaster of emotions that may be in play even if you and your spouse are in complete agreement as to the process. Consider MediationIf only one or two issues are standing between you and your spouse attempting a DIY divorce – say, for example, visitation rights don’t give up. You and your spouse may achieve consensus and resolution through the use of a divorce mediator, a professional who can bring closure to many controversial divorce issues. Similarly, if emotional issues are creating a wedge, a counselor may be able to facilitate an end to the gridlock. Mediated Divorces Save MoneyDivorce mediation is a great way to handle a divorce if you and your spouse can’t quite agree on all the important terms. There are serious and long-term tax considerations for some divorces. Before signing off on a DIY divorce filing, you may want to consider consulting an accountant, financial advisor or tax preparer who can alert you to the potential tax issues post-divorce. And don’t forget www.irs.gov, where the IRS offers free information about all the tax issues related to divorce. Avoid DIY If There Is Anger or DeceptionIf your spouse is a cauldron of unresolved anger, such that the spouse is a danger to you or your children, then a DIY divorce is not appropriate. It’s also not appropriate if you have a reasonable belief that your spouse is hiding money or transferring joint assets out of your control. Start With Your County ClerkAlthough counties differ, most county clerk’s offices provide you with some of the basic information required when filing your own divorce. (Sometimes this is available at your county clerk website so check there first.) The clerk cannot give legal advice and may refer you to a county law library if one is available. State court websites should provide information about where your local court is, which branch you should use, clerk’s hours, and sometimes filing fees. (You can find state court sites here or here.) Check out Legal Document PreparersIn some places, there are businesses that prepare the paperwork for uncontested divorces. These folks may be called paralegals but are commonly referred to as legal document preparers, or LDPs. Legal document preparers aren’t allowed to give you individualized legal advice. (Only licensed lawyers can do that.) However, they can prepare forms, using the information you supply, and file them with the court. So when you visit a document preparation business, you’ll get a questionnaire that asks you for the information the preparer needs to fill out court forms for your county. The LDP will transfer the information onto the forms, and then either you or the LDP can file them with the court. The fee for doing the paperwork for an uncontested divorce varies from about $175 to $700, depending on where you live, whether you have children, and whether you need a separate settlement agreement (which depends on how your state’s forms are structured). Because the quality and reliability of such services can vary greatly, do a little checking before settling on one. Web-Based Divorce ServicesSome document preparation services interact with customers only through the Internet, which may be a boon to you if no walk-in service is available close to where you live. You’ll answer questions on the website, and the forms will emerge from your computer or be mailed to you a few days later. You’ll need to file the forms with the court yourself. In some cases, the web-based service will arrange for the filing. The cost is usually a few hundred dollars (typically between $200 and $500) and differences in price often relate to the speed with which the documents are prepared. Again, a little research about the service can help, particularly any online reviews. Some sites display a seal for the Better Business Bureau online, which means you can check on a report for that company at www.bbbonline.com. Not having the seal doesn’t mean that the product isn’t good, but use your judgment and spend some time looking around for what will work best for you. And while getting your documents immediately may seem appealing, check to be sure they’re being reviewed before you get them. Lawyers Have Their AdvantagesThere’s a reason why lawyers charge high fees. They’re often aware of long-term concerns that you may not consider, for example, whether a court will “impute” future income to a spouse who has bright financial future. Lawyers also offer a shield – all correspondence and contact can be directed through the lawyer’s office if things get ugly. And lawyers may have a better bead on child custody issues and what the court considers as a parenting plan that has the child’s best interests. Talk to Some Lawyers FirstIf you’re not sure that a Do-It-Yourself divorce is the right choice, talk to some divorce attorneys first. Initial consultations are often free, and offer you a chance to explain the circumstances of your case to a professional. You may be able to get some good information quickly to help decide if you need the guidance and protection of a lawyer on your side. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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Why Parents Should Not Get A Divorce Why Do Companies Go For Private Placement? Why Divorce Rates Have Gone Up In the Prospective Of Conflict Theory Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-divorce-lawyer-utah-follows-online-divorce/
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Conflict theory encompasses the idea that people struggle to reconcile conflicting ideals such a theory is readily apparent in the process of divorce. Core themes of conflict theory reflect divorce proceedings. Couples negotiate and bargain how to split possessions, but can also show aggression and appeasement to coerce each other. Divorce can also follow the stages of conflict in conflict theory. Understanding this theory can lead to increased awareness of the divorce process and how to go about it with less chaos. Conflict StagesConflict theory proposes stages that manifest themselves during divorce. First, the Prior Conditions Stage reflects events that lead up to the divorce. These conditions can include financial issues, marital discord or infidelity. Next, in the Frustration/Awareness Stage, one or both people in the couple become upset by the prior conditions. The third stage, Active Conflict, moves the couple from dissatisfaction and frustration to the attempt of both parties to “win.” Couples may be able to show conflict amicably, or they may be aggressive. The couple begins to resolve their issues in the Accommodation/Solution Stage. The final stage, the Follow-up/Aftermath Stage, may see a rehashing of the conflict or the existence of grudges, and facilitates new rules for the couple in divorce. Conflict ResolutionConflict resolution simply concludes a conflict and ends in consensus in divorce it signals an agreement between a couple as to how their affairs will be handled. Consensus is either a simple knowledge of extant issues or being on the same page. The latter form of consensus is more conducive to successful conflict resolution. For couples going through a divorce, agreement happens through deliberation and communication, allowing both parties to see things the same way. If the couple decides to forego winning as the ultimate goal, they are better able to reach real conflict resolution. Negotiation and BargainingNegotiation and bargaining represent another method leading to resolution and plays a significant role in divorce. This form of problem solving relies on a couple’s structure and dynamic. Witt states that the power and influence of the two people plays a role and can change how a divorce proceeds. For instance, the partner who makes more money may have more sway over the proceedings, but the caregiving partner, especially if children are involved, may use his or her status to influence how money is divided. Aggression and AppeasementAggression and appeasement is a form of interaction between two people going through divorce and has the capacity to be positive or negative. Starting arguments or intending to harm the other partner is considered aggression. Any aggression that happens is followed by appeasement, in which the other partner plays out the couple’s power dynamic or admits guilt. For example, in divorce, this process can manifest as one partner threatening to take the kids and not grant custody if the other partner does not give up enough money. The Secrets to Minimizing Conflict During DivorceBefore the Divorce ProcessIf the inciting incident leading to your decision to file for divorce is something like infidelity or domestic violence, a high-conflict divorce may be unavoidable. However, in a case where you and your spouse have simply grown apart over time, you may have more control over how you bring up the subject of divorce. If you are planning to tell your spouse that you want a divorce, you should be prepared for them to be surprised, and allow them time to process what you have said. Try to focus not on what they have done to harm the relationship, but on how both of your actions have contributed to the current state of your marriage. Listen to their concerns whenever possible, but be willing to step away from the conversation and return at a later time if emotions are starting to overwhelm one or both of you. During the Divorce ProcessAs you begin the process of working toward your divorce settlement, you can reduce conflict by remaining open to approaches that enable cooperation between you and your spouse. Many couples are able to reach an agreement on most or all aspects of their divorce through negotiation, resulting in an uncontested divorce that only requires the court’s involvement to approve of the consensus you have already reached. For other couples, a trained mediator can serve as a neutral third party who helps keep discussions on track and ensures that each spouse has the opportunity to voice their perspective and provide input in all decisions. Either of these options can help you avoid the stress, costs, and public conflict of a long, drawn-out trial. Regardless of your approach, it is important to know what your priorities are so that you can clearly express what you want and need. Perhaps your primary goal is to maintain financial stability after your divorce or to keep control over certain assets. Alternatively, you may be focused on the best interests of your children above all else, which can pave the way for cooperation with your spouse if he or she shares the same goal. Once you have established your priorities, try to express your perspective with calm, rational, fact-based communication, as this is often more effective than emotional arguments that may only serve as reminders of pain. As negotiations proceed, look for opportunities for compromise. Rather than trying to gain the upper hand on every issue, be open to giving ground on things that are not as important to you so that you can push harder for the things that are. By listening to your spouse and making an effort to understand his or her needs, you may even be able to arrive at solutions that benefit both of you without requiring either of you to give up more than you are comfortable with. After the Divorce ProcessAfter your divorce is finalized, you still have an important responsibility to follow the terms of your legally binding divorce decree or judgment. If you have been ordered to pay child support or spousal support, you should make every effort to do so on time and in the full amount. You should also honor the terms of the division of property as well as the agreements about child custody and visitation. Repeated failure to follow the terms of your divorce can create hardship for your ex, who may file a petition for enforcement that could result in legal and financial consequences for you. You may even be found in contempt of court, with possible penalties including fines and jail time. If you believe that the terms of your divorce decree should no longer apply due to a change in your personal or financial circumstances, you should not simply stop following them. Instead, you should take the necessary steps to pursue a modification in court to establish a more appropriate divorce order. If you have maintained constructive communication with your ex, you may even be able to agree upon a fair modification together and obtain the court’s approval, rather than engaging in a contested courtroom battle. Divorce may not be something anyone wants to deal with, but those who fail to make a plan and take positive actions to manage the situation often do so to their own detriment. With the right strategy and behavior before, during, and after your divorce, and with the guidance of a skilled attorney, you can make your divorce easier for yourself, your ex, your children, and everyone else involved. 1. Create a Safe Space for ConversationGive some thought as to where you should have your conversation. Sometimes this can make all the difference during a disagreement or argument. When together, find a quiet, private, and comfortable spot where you can be alone. In-person conversations are recommended as you can read body language; however, we understand that sometimes that’s not an option. If you’re apart from one another, try to approach the issue via phone call rather than text or email. Tone of voice is important in conversation and sometimes this can be misinterpreted when it is typed out and not verbal. 2. Understand the Other PerspectiveNo matter how heated your discussion becomes, try to take yourself out of the situation and look at the issue from the other perspective. Put yourself in the position of your spouse or ex-spouse. Believe me, I completely understand how difficult this can be especially during separation and divorce. I encourage my clients to consider the other person’s feelings as they work toward a compromise and resolution. 3. Allow Self-ReflectionEven though we may not want to admit it, sometimes we’re the ones at fault. It’s easy to get caught up in an argument and not remember how it started. This is a great opportunity to self-reflect. We need to take care of ourselves first and sometimes that translates into conflict resolution as well. Admit your mistakes and explain what you can do better in the future. Acknowledge that no one is perfect and that includes you. 4. Choose Your BattlesChoosing your battles in conflict can be difficult, but it has benefits. In the moment, sometimes every battle seems worth it. Well, 20 minutes later, you might change your mind and it may not seem worth it anymore. While disagreements can be healthy in a relationship, they certainly don’t have to be a common occurrence. Know what type of issue deserves a conversation and what type of issue is a pass. However, don’t let conflict bottle up to the point that you feel like you’re going to explode. Find the balance and prioritize your battles. 5. Respond IntentionallyIt’s important to handle conflict with intention and respond with purpose. Take time to formulate your thoughts. When you feel yourself getting heated, take a deep breath, close your eyes, and count to 10 before responding. These intentional response steps have helped me in various types of disagreement, argument, or dispute. 6. Avoid Judgmental LanguageYour words matter and they will be remembered. Use your voice with care and kindness, even when frustrated. Be curious as to why your partner feels the way they feel or does what they do. Ask them to elaborate by prompting questions that encourage answers. Phrases like “help me understand…” will be more meaningful in conflict resolution than judgmental phrases like “you always…” 7. Stick to the Issue at HandDetermine the underlying issue and focus on it. Many conflicts arise from a symptom of the real problem. Figure out the actual issue that’s controlling what is being said and stick with it. Sometimes, one issue that sparks conflict snowballs into several more issues that had nothing to do with the initial conflict. Discuss one topic at a time. Don’t let old problems or previous disputes reenter your new conversation. 8. Grant Grace and ForgivenessNo matter how strong and loving your relationship is, conflict is unavoidable. It will come and when it does, allow yourself to give grace and forgiveness. These gifts are the protectors of a healthy relationship and allow mindfulness and understanding. Grant yourself and your partner grace and forgiveness in abundance. 9. Find Common GroundDisputes typically begin because you or your partner care about something. Maybe it’s your children, your career, your friendships, your house, your pets, your favorite TV show… the list can go on and on. As you work toward a resolution, try to find common ground. For instance, if my ex-husband and I have an argument over an issue with our children, we’ll work to resolve that issue. We know that our common ground is that we both love our children and want what’s best for them. Sometimes, there is no right or wrong and we have to agree to disagree. We do this because we know that’s what is best for our two children. We are committed to being good co-parents and we respect the other as a parenting partner. 10. Know When to Take a Time-OutIf you feel like you’re not getting anywhere, maybe you need to take a break. Conflict resolution can be difficult. It’s often emotionally draining and can result in a plethora of feelings. There is nothing wrong with saying you need a few minutes to yourself to gather your thoughts. The same goes for your partner if they need a time-out. Allow yourselves to recuperate and know what is best for your mental health. There are many ways to handle conflict and it’s important to choose a method that encompasses care and compassion. Through healthy conflict resolution, you and your spouse can come to a positive and mindful solution. Conflict is often an opportunity to dive deeper into your relationship. You don’t have to fear it or avoid it. Rather, view conflict as a way to better understand each other and strengthen your relationship. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Why Parents Should Not leave After The Divorce Why Parents Should Not Get A Divorce Why Do Companies Go For Private Placement? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-divorce-rates-have-gone-up-in-the-prospective-of-conflict-theory/ A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion. Investors invited to participate in private placement programs include wealthy individual investors, banks and other financial institutions, mutual funds, insurance companies, and pension funds. One advantage of a private placement is its relatively few regulatory requirements. There are minimal regulatory requirements and standards for a private placement even though, like an IPO, it involves the sale of securities. The sale does not even have to be registered with the U.S. Securities and Exchange Commission (SEC). The company is not required to provide a prospectus to potential investors and detailed financial information may not be disclosed. The sale of stock on the public exchanges is regulated by the Securities Act of 1933, which was enacted after the market crash of 1929 to ensure that investors receive sufficient disclosure when they purchase securities. Regulation D of that act provides a registration exemption for private placement offerings. The same regulation allows an issuer to sell securities to a pre-selected group of investors that meet specified requirements. Instead of a prospectus, private placements are sold using a private placement memorandum (PPM) and cannot be broadly marketed to the general public. It specifies that only accredited investors may participate. These may include individuals or entities such as venture capital firms that qualify under the SEC’s terms. Advantages and Disadvantages of Private PlacementPrivate placements have become a common way for startups to raise financing, particularly those in the internet and financial technology sectors. They allow these companies to grow and develop while avoiding the full glare of public scrutiny that accompanies an IPO. Buyers of private placements demand higher returns than they can get on the open markets. Above all, a young company can remain a private entity, avoiding the many regulations and annual disclosure requirements that follow an IPO. The light regulation of private placements allows the company to avoid the time and expense of registering with the SEC. That means the process of underwriting is faster, and the company gets its funding sooner. If the issuer is selling a bond, it also avoids the time and expense of obtaining a credit rating from a bond agency. A private placement allows the issuer to sell a more complex security to accredited investors who understand the potential risks and rewards. A More Demanding BuyerThe buyer of a private placement bond issue expects a higher rate of interest than can be earned on a publicly-traded security. Because of the additional risk of not obtaining a credit rating, a private placement buyer may not buy a bond unless it is secured by specific collateral. A private placement stock investor may also demand a higher percentage of ownership in the business or a fixed dividend payment per share of stock. Regulatory Requirements for Private PlacementWhen a company decides to issue shares of an initial public offering, the U.S. Securities and Exchange Commission requires the company to meet a lengthy list of requirements. Detailed financial reporting is necessary once an initial public offering is issued, and any shareholder must be able to access the company’s financial statements at any time. This information should provide enough disclosure to investors so they can make informed investment decisions. Private placements are offered to a small group of select investors instead of the public. So, companies employing this type of financing do not need to comply with the same reporting and disclosure regulations. Instead, private placement financing deals are exempt from SEC regulations under Regulation D. There is less concern from the SEC regarding participating investors’ level of investment knowledge because more sophisticated investors (such as pension funds, mutual fund companies, and insurance companies) purchase the majority of private placement shares. Saved Cost and TimeEquity financing deals such as initial public offerings and venture capital often take time to configure and finalize. There are extensive vetting processes in place from the SEC and venture capitalist firms with which companies seeking this type of capital must comply before receiving funds. Completing all the necessary requirements can take up to a year, and the costs associated with doing so can be a burden to the business. The nature of a private placement makes the funding process much less time-consuming and far less costly for the receiving company. Because no securities registration is necessary, fewer legal fees are associated with this strategy compared to other financing options. Additionally, the smaller number of investors in the deal results in less negotiation before the company receives funding. The greatest benefit to a private placement is the company’s ability to remain a private company. The exemption under Regulation D allows companies to raise capital while keeping financial records private instead of disclosing information each quarter to the buying public. A business obtaining investment through private placement is also not required to give up a seat on the board of directors or a management position to the group of investors. Instead, control over business operations and financial management remains with the owner, unlike a venture capital deal. Private placement occurs when a company makes an offering of securities to an individual or a small group of investors. Since such an offering does not qualify as a public sale of securities, it does not need to be registered with the Securities and Exchange Commission (SEC) and is exempt from the usual reporting requirements. Private placements are generally considered a cost-effective way for small businesses to raise capital without “going public” through an initial public offering (IPO). Restrictions Affecting Private PlacementThe SEC formerly placed many restrictions on private placement transactions. For example, such offerings could only be made to a limited number of investors, and the company was required to establish strict criteria for each investor to meet. Furthermore, the SEC required private placement of securities to be made only to “sophisticated” investors—those capable of evaluating the merits and understanding the risks associated with the investment. Finally, stock sold through private offerings could not be advertised to the public and could only be resold under certain circumstances. In 1992, however, the SEC eliminated many of these restrictions in order to make it easier for small companies to raise capital through private placements of securities. The rules now allow companies to promote their private placement offerings more broadly and to sell the stock to a greater number of buyers. It is also easier for investors to resell such securities. Although the SEC restrictions on private placements were relaxed, it is nonetheless important for small business owners to understand the various federal and state laws affecting such transactions and to take the appropriate procedural steps. It may be helpful to assemble a team of qualified legal and accounting professionals before attempting to undertake a private placement. Many of the rules affecting private placements are covered under Section 4(2) of the federal securities law. This section provides an exemption for companies wishing to sell up to $5 million in securities to a small number of accredited investors. Companies conducting an offering under Section 4(2) cannot solicit investors publicly, and the majority of investors are expected to be either insiders (company management) or sophisticated outsiders with a preexisting relationship with the company (professionals, suppliers, customers, etc.). At a minimum, the companies are expected to provide potential investors with recent financial statements, a list of risk factors associated with the investment, and an invitation to inspect their facilities. In most respects, the preparation and disclosure requirements for offerings under Section 4(2) are similar to Regulation D filings. Regulation D—which was adopted in 1982 and has been revised several times since—consists of a set of rules numbered 501 through 508. Rules 504, 505, and 506 describe three different types of exempt offerings and set forth guidelines covering the amount of stock that can be sold and the number and type of investors that are allowed under each one. Rule 504 covers the Small Corporate Offering Registration, or SCOR. SCOR gives an exemption to private companies that raise no more than $1 million in any 12-month period through the sale of stock. There are no restrictions on the number or types of investors and the stock may be freely traded. The SCOR process is easy enough for a small business owner to complete with the assistance of a knowledgeable accountant and attorney. It is available in all states except Delaware, Florida, Hawaii, and Nebraska. Rule 505 enables a small business to sell up to $5 million in stock during a 12-month period to an unlimited number of investors, provided that no more than 35 of them are non-accredited. To be accredited, an investor must have sufficient assets or income to make such an investment. According to the SEC rules, individual investors must have either $1 million in assets (other than their home and car) or $200,000 in net annual personal income, while institutions must hold $5 million in assets. Finally, Rule 506 allows a company to sell unlimited securities to an unlimited number of investors, provided that no more than 35 of them are non-accredited. Under Rule 506, investors must be sophisticated. In both of these options, the securities cannot be freely traded. Advantages to the Company• Going for an FPO involves a plethora of compliances, disclosures and is altogether a time-consuming procedure. Private Placements• Regulation 14(2)(a) of Companies (Prospectus and Allotment of Securities) Rules, 2014 states that a special resolution by the shareholders of the company is necessary in order to initiate the process of private placement. Institutional Private PlacementRationale• Minimum Public Holding was introduced through the Securities Contract Act which mandated the listed companies to maintain a minimum public holding of 25%. Statutory Framework• A special resolution by the shareholders is mandatory for carrying out institutional placement program. Allotment• Minimum 25% of the securities have to be allotted to the Mutual Funds & Insurance companies. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Why Do Companies Go For Private Placement? first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Why People Got Married And Eventually Get A Divorce Why Parents Should Not Leave After The Divorce Why Parents Should Not Get A Divorce Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-do-companies-go-for-private-placement-2/ Children often become the innocent victims of a divorce. Feelings of loss, confusion, fear, and anxiety can develop during the process and can continue to affect them well after the divorce is finalized. They generally don’t want their parents to split up and are worried about what their new life will be like. They may be concerned with whether they will need to move, how much they will be able to see their mom and dad or possibly be worried that they somehow caused their parents’ divorce. During a divorce, children need calm, consistency, and reassurance. They need to know their parents still love them and want what is best for them. Divorcing parents need to make their children’s well-being the top priority during their divorce and give them the nurturing, comfort, and support they need to get through this life-changing event. What Parents Should NOT Do During and After a DivorceGoing through a divorce is an emotionally sensitive and stressful time for you and your soon-to-be ex-spouse. However, it is crucial to keep your focus on your children and make the transition as simple and healthy as possible. The following are things a parent should not do during and after a divorce. 1. Don’t speak negatively about your spouse.Not making negative comments about your spouse can be challenging when you are going through a divorce because you may be feeling hurt, resentful, and angry. But it is crucial to not only avoid badmouthing your soon-to-be-ex to your children, but also to other people. Do not discuss the matter with your children and those close to your children or spouse and keep the details and your feelings about the divorce off social media. For your children’s sake, it is best to take the high road and be respectful of your spouse. You must also remember that the things you say to your children and others may be used against you in the divorce. 2. Don’t put your children in the middle.Avoid using your children to relay information, spy on the other parent, or tell you about your spouse’s activities. If you want to know something, ask your spouse directly, and if you need to relay information or change plans, discuss it with your spouse. If your spouse asked your child not to say anything, it could put your child in a position of either having to lie to you or going against the other parent’s wishes. Similarly, it is best not to ask your children to lie for you or to not share information with your spouse. 3. Don’t ignore verbal and physical signs from your children.Dealing with a divorce is difficult. But it is important to know your children are likely struggling with the situation, too. They may be scared, sad, and worried about what is happening to their family, so we recommend closely monitoring your child’s mental, emotional, and physical health and well-being. Verbal and physical signs can give you clues as to how your child is handling the divorce and alert you to any potential problems. Look for signs, such as changes in eating and sleeping, withdrawal from family or friends, and difficulties focusing at school or at home. If you see any concerning signs, speak with your child’s doctor or seek help from a child or family therapist. 4. Don’t keep your children in the dark but don’t tell them too much, either.Depending on your children’s ages and maturity levels, be as honest as you can when speaking to your children about what is happening. Encouraging them to ask questions and discuss their feelings is an effective way to keep them informed while addressing any concerns or uncertainty they are experiencing. It is also important not to give them too much information. Be sure not to tell them things that they shouldn’t know, won’t understand, or can be upsetting. 5. Don’t vent to your children.Sharing with your kids is important but make sure you don’t load your problems on them. A parent needs someone to talk to when dealing with the emotions felt during a divorce, but it is essential not to treat your child like a counselor. Venting to them about your and your spouse’s issues puts them in a position of having to provide emotional support. Your children are likely dealing with their own emotions and concerns and shouldn’t have to cope with the stress and worry of helping you with your emotions and concerns as well. It is always best to confide in a trusted friend or licensed counselor if you need someone to talk to. 6. Don’t forget to spend quality time with them.Children need the love, support, and attention of their parents. Just because you are going through a divorce doesn’t mean your children should be pushed aside. Although you have a lot on your mind and are dealing with what will be your new reality, make sure you keep your focus on your kids. Play their favorite game, cook together, go to the park, or plan a fun trip. Be sure to spend plenty of quality time with them because they need you now more than ever. 7. Don’t make promises you can’t keep.In an effort to keep your children’s minds off of the divorce or to give them something to look forward to, you may end up making promises you can’t keep. Promising your children you will take them on a vacation that you never go on or telling them you will buy them a new bike that you ultimately never get can damage their trust in you. You may also say things that aren’t true to reassure them, such as telling them you and your spouse may reconcile when you know that is not going to be the case. Your children need to be reassured by knowing that what you say is true, so it is best not to break your promises. 8. Don’t interfere with parenting time.A child needs quality time with both of their parents to get the love, affection, and support they need. Unfortunately, many parents interfere with their child’s time with the other parent by canceling parenting time, limiting parenting time, and consistently being early or late for pickups and drop-offs. They may also call, text, and email their child excessively while they are with the other parent, disrupting their time together. It is always best to not interfere with your parenting time arrangement and limit the amount of communication with your child during their time together. 9. Don’t use child support as a weapon.It is every parent’s responsibility to contribute financially to their child’s upbringing. Not paying child support out of anger or resentment toward the other parent robs a child of the financial assistance they are entitled to. In addition, if a child support order is in place and you do not pay, you may be held in contempt of court. You will likely have to pay fines in addition to any overdue child support and, in some cases, may face jail time. 10. Don’t drastically change the family dynamics.Children need stability and consistency to thrive. During a divorce, so much of their world is changing. Although change is inevitable in a divorce, it is essential to make every effort to keep things as normal as possible. Try to maintain as much of their previous routine and continue as many of their activities as possible. Make an effort to keep things consistent in their lives, so they have a sense of stability and comfort. How Do We Tell Our Kids That We’re Getting Divorced?One way to help children through this early stage is (according to age) to openly discuss what is happening in the family. In some cases, it makes more sense for children to hear about the separation from both parents. If this is the case, make sure that you repeatedly tell your children that both parents will always love them and that you will always be a family. The difference will be that there will be two households. Address any concerns they may have, such as the need to maintain a relationship with both parents. Be sure that your children understand their relationship with both parents is forever and that they will never be abandoned. Explain that a divorce does not end your child’s relationship with either parent. The marriage may end, however, the parent-child relationship will continue. Generally, for young children (3-5), short, clear explanations are best. For older kids, you can explain a bit more but do not over explain. Remember they do not have to understand everything all at once. Their understanding of your divorce will evolve as they get older and will change with their age. Another important message for kids is that in no way is the divorce their fault, nor are they able to keep you and your spouse together. When the idea of parents separating is still new to your child, reinforce to them that you will make every effort to keep things stable for them. At the same time, let them know about upcoming changes. Remember children (especially ages 5 through 12) will ask the same questions repeatedly. This is normal; it’s their way of gaining a sense of security and reassurance about the future. It is important to keep your answers simple and consistent. Of course, when one parent is being questioned apart from the other, that parent should reinforce that the separation/divorce is taking place because of differences between the parents. It’s extremely important that you conduct such conversations without making any damaging or disparaging remarks about the other parent. Children adjust more easily when their parents show a healthy sense of respect for the other parent, despite difficult circumstances. Co-parenting responsibilities apply to all parents, whether they’re married or not. The extent that parents can effectively co-parent their children greatly determines how children will adjust to the transitions associated with a separation or divorce. Parents who have primary residential custody usually deal with more day-to-day issues concerning their children’s welfare. Generally speaking, other major-life decisions, like those concerning religion, discipline, finances, morality, recreation, physical health, education and emergencies should be discussed and made jointly (unless you and your co-parent do not share legal custody). Remember that married parents often have differing ideas about all or some of these issues. This is to be expected. There is no reason to assume that divorced parents should always agree on them either. What’s important is how you deal with differences, not that they exist. It’s better for parents to agree to disagree and practice compromising, than to argue and fight endlessly for their own way. This, however, is often easier said than done. Choosing your battles is the first step. For example, if there are problems with school-related issues like homework or punctuality, discuss these with the other parent. However, foregoing an all-out fight about the other parent’s choice of clothing or snack foods for your child might be a good idea. Once some of the emotionality of the divorce begins to clear, these topics can be revisited. Parents (especially those in the early stages of separation and divorce) should give one another some room to parent. In addition, look for opportunities to praise each other’s parenting abilities. This kind of well-chosen reinforcement can be very effective in fostering the correct co-parenting atmosphere. Most all parents have some redeeming qualities when it comes to their kids. Parents who chose their battles and cooperate when there are differences are more likely to make healthy decisions for their children. In fact, nurturing an overall spirit of cooperation is more important than parents agreeing on any one particular issue. Also, parents who acknowledge and effectively deal with their own difficult feelings about the divorce usually have an easier time moving on. On the other hand, recurrent arguments between parents make life difficult for children and parents alike. When parents fight for their own agenda and neglect creating a peaceful environment, their children may develop bitter feelings and have difficulties later in life with their own intimate relationships. Remembering to relate maturely and with a healthy sense of respect for the other parent (even in the face of great differences and in some cases bad feelings) is the challenge for every divorcing parent. Fostering such an environment teaches children much about love, life, change, and family relationships. Divorce brings about many changes in the lives of both parents and children. One change for children may be in their immediate support network. This might mean a loss of friendships and school ties if the divorce requires moving. It might also include changing relationships with extended family members after the divorce. To minimize stress on your children and ultimately yourself, try keeping your lifestyle close to what it was prior to the divorce. In the days just after the divorce becomes final, there is usually is an adjustment period that can last for several weeks and oftentimes several months. During this time, people are adjusting to new routines, schedules, and living situations. It may take time for life to seem normal again. But don’t worry, eventually it will. Remember that children of different ages (and even in the same family) will adapt differently. Some kids are open about their feelings and the associated changes they experience. Others will be less vocal. Make room for whatever your children are experiencing. It is a mistake to believe kids must talk about their feelings. Checklist for a stable home environment: How Do I Deal With A Difficult Co-Parent?Dealing with a parent who will not cooperate or negotiate under any circumstances is extremely frustrating. It can also make it difficult for you to make good decisions. It is all too easy to sink to the uncooperative parent’s level and make choices that will not be in your children’s best interest. For example, if one parent is communicating adult issues through a child, it can cause you to do the same. You must resist the urge to do this. Making correct choices for your children must be your focus. Oftentimes parents must wait years for the payoff, but it will be worth it. Recall that parents who are unwilling to cooperate on any level usually have unresolved anger, grief, sadness, or all of the above. One parent’s unresolved feelings can create an emotional atmosphere that prevents both parents from remaining child focused. Do not stoop to that level. This includes engaging in historical arguments that are better left in the past. Leave the issues of your marriage in the past and resist playing out these never-ending conversations that just leave everyone frustrated, angry and tired. You will no doubt feel a pull to engage in these conversations, but they are dead-ends to cooperative parenting. Simply refuse to engage in such conversations and continually stress that you are interested in communicating about what’s currently impacting your child’s life. Doing this consistently may help, in that at least you (and your children) do not have to be exposed to these dead-end conversations. If you are stuck dealing with a difficult parent, especially when there is a pending court case, it is a good idea keep good records of all your interactions with them. Keep track if they are keeping their commitments to any original agreements regarding custody, visitation, keeping appointments, and providing consistent positive messages to the children. If you are faced with a parent who refuses to keep to the agreed-upon custody schedule, or is putting your children at serious physical or emotional risk, then consulting with legal counsel and/or child protective agencies may be necessary. A well-thought-out parenting plan is an important tool for ensuring the health and wellbeing of your children. A good parenting plan will outline how you will perform co-parenting responsibilities. It also details how you will handle and divide daily activities and caring for your kids. The parenting plan is a living document that must evolve with the needs of your growing children. Therefore, you do not have to include every potential situation you may encounter in the parenting plan. However, it must be revisited regularly to make sure it meets the needs of your family. Keys To Successful Co-Parenting:1. How you feel about your ex is less important than how you act toward him/her. Putting aside your negative feelings is definitely in the best interest of your child. Utah Divorce AttorneysDivorce can be a difficult experience and even more challenging when children are involved. Remember to take things day by day and always keep your children’s health and well-being in mind. Ascent Law Firm divorce attorneys have helped families successfully navigate the divorce process for years. If you need help with matters relating to divorce, child support, child custody, or any other family law matter, we welcome you to contact our firm for a free consultation. We can discuss your situation and explain the many ways we can help. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Why Parents Should Not Get A Divorce first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Why Selling Your Home Could Be The Key To Happy Retirement Why People Got Married And Eventually Got A Divorce Why Parents Should Not Leave After The Divorce Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-parents-should-not-get-a-divorce/ Although you might want or need to physically separate from your spouse while your divorce is pending, strong financial and emotional connections to your family home can make the decision to move out a difficult one. Separate and Apart LawsIn some states, spouses who are divorcing must live separate and apart for a period of time before they can file for a divorce or before a judge can finalize a divorce. It might be possible for the spouses satisfy this requirement when they live under the same roof (for example, if they don’t have marital relations), but usually, “separate and apart” means that you can’t share a home. If your state requires that spouses live separate and apart, you’ll need to decide whether it’s you or your spouse who moves out. Your Comfort and Well-BeingContinuing to live together in the same home after the deciding to divorce can be challenging. Being around your spouse day and night in this situation might result in arguments and resentment. Moving out might be a good way to make the process easier on yourself and preserve your mental health. Consider moving in with friends or family or finding another place to rent if you can afford one. The Effect on Your ChildrenHaving divorcing parents living under the same roof can be especially hard on kids. If you have children, it might be in everyone’s best interest to move out so that the family house can be a neutral, conflict-free zone. Also, the decisions you make regarding residence in the family home now could have an effect on a judge’s final child custody decisions. Child CustodyJudges are aware that repeated change can be difficult for children, and will maintain the status quo whenever possible. When children remain in the family home during a divorce, the parent who lives with them can argue that changing this arrangement after the divorce will be disruptive. On the flip side, the other parent will object to being punished for leaving the house—even though the move was made with the children’s best interests in mind. To avoid this catch, parents should try to create a written parenting agreement before one of them moves out. The agreement should establish a schedule for both parents to spend time with the children and should state clearly that neither parent is giving up their custody rights. If the parents can’t reach an agreement, the parent who moves out but wishes to have significant parenting time must ask the court to establish a shared parenting schedule. The earlier this can be accomplished, the better, so that shared parenting becomes the new status quo. The Financial ImpactThe spouse who stays in the family home during the divorce won’t necessarily receive the house when the court divides the couple’s property. State laws require judges to distribute marital property either equally or “equitably” (fairly). This usually means that one spouse will be able to keep the house only if the other spouse receives either money or other property of comparable value. Some states also consider “fault” (such as adultery or abandonment) when dividing property. Even in these states, judges also consider other factors such as the length of the marriage, each spouse’s contributions to the household (including contributions as a homemaker), and each spouse’s health, age, employability, and other resources. Judges usually don’t base property division on who lived in the family home during the divorce. If you decide to move out, it’s a good idea to create an inventory of all the personal property in the house (such as furniture and appliances), and photograph important items. Unless you have an agreement stating otherwise, take only personal belongings, such as clothing and jewelry, with you when you leave. If You Move Out, Make Your Intentions ClearEven though moving out of the family home during the divorce doesn’t automatically mean you lose custody or rights to keep the house after divorce, you shouldn’t take any chances. Put your intentions in writing. As mentioned above, if you and your spouse can agree on the terms of your moving out—for example, by drafting a parenting plan and statement that neither of you gives up any rights to marital property—write out the details of the plan, sign it, and make sure your spouse signs it, too. If you’re working with an attorney, you might want to have your attorney review it before signing. If you’re not able to reach an agreement about moving out with your spouse, you can ask the court handling your divorce for “temporary orders.” The purpose of temporary orders is usually to allow the family to maintain as much of the status quo as possible. But if the judge agrees that it’s in everyone’s best interest for you to move out of the family home during the divorce, it’s likely that the judge will enter temporary orders outlining the terms of your move out, such as a parenting schedule and a plan for preserving the marital property until the divorce is finalized. Other OptionsFor couples who are able to communicate civilly during their divorce, there are some creative short-term options that can ease financial and parenting problems, such as: One of the biggest challenges of divorce is making the income that once supported one household stretch to take care of two. Especially in tough economic times, some couples continue living together in the family home because they simply can’t afford to support a second household. Ultimately, a higher-earning spouse who moves out of the family home after divorce will likely have to continue paying a portion (or all) of the household expenses, including the mortgage and insurance payments. Depending on the couple’s financial situation, the court might distribute other marital assets to the spouse who moves to compensate for the fact that the other spouse was able to remain in the family home. Dividing Your Property During DivorceAs if the decision to divorce wasn’t tricky enough, now you must determine how to divide your assets and debts. This article should help you understand the basics of property division in a divorce, along with some tips on how to make the process easier for both spouses. Property DivisionIn every divorce, couples must divide marital property and debt before the judge will grant the request for a divorce. Couples have two choices: work together to determine what property each spouse will take away from the relationship, or ask the court to decide for you. If you live in a community property state, the court presumes that any assets (or debts) accrued during the marriage belong equally (50/50) to both spouses. If you have property that belongs to you, whether you brought it with you to the marriage, or you acquired it alone during your relationship, you’ll need to ask the court to award the separate property to you. In equitable distribution states, the court will divide marital property fairly between the spouses, which doesn’t always mean a 50/50 split. The court will categorize the property as marital or separate before the judge awards any portion to either spouse. If you have separate property, you’ll need to prove your ownership with receipts, witnesses, or any other evidence. Work Together to Reach a Property AgreementThere’s no doubt that a judge won’t understand your family’s circumstances as well as you do. If you’d like to keep control of how you split your assets and debts in your divorce, it’s best to work with your spouse, rather than letting a court decide. Create a List of AssetsOne of the easiest ways to start the property division process is for each spouse to create a list of assets and identify which spouse should receive it in the divorce. When you’re both finished with your list, you can come together to compare. If you have a dispute, work together to resolve it and determine who should get the property. It’s important to be transparent through the property division process. Both spouses must identify all assets that they acquired throughout the marriage, which includes bank accounts, insurance policies, vehicles, retirement accounts, pensions, real estate, recreational vehicles and equipment, and anything else that holds value. If you agree to a property settlement and later find out that your spouse didn’t disclose an asset, you can ask the judge to reopen your case to reevaluate the property division. In addition to potentially losing assets later, the guilty spouse may also face fines or penalties from the court if the judge believes your ex intentionally failed to disclose or hid information the asset. Honesty is always the best policy when it comes to disclosure. Value Your PropertyAnother important step is to determine what the property is worth. Generally speaking, courts will accept the fair market value (FMV) of each item, which is what you can get for the item if you sell it on the open market today, not what you paid for it. Try to agree on a value for each asset worth more than a specific amount—say, $100 or $500. There are some useful websites that can help you value certain property, such as Zillow.com or Redfin.com for real property. For more difficult or complex valuations, like of a business or antique collectibles, you may need to hire an appraiser. If you can’t agree on a value for a specific item, you may each have to hire independent appraisers, and ask a judge to pick from one of the two valuations. Determine If the Property Is Marital or SeparateWhether you’re in a community property or equitable distribution state, if you own separate property, it will remain in your possession. That said, you must first categorize and agree that the assets were separate before you can move forward. Each spouse should identify the owner of each asset. If there is a disagreement about whether an asset is marital or separate, the person claiming the item will have to prove to a judge that it’s owned separately. You can do this by showing the date of purchase, where the funds came from to purchase the item, and how the item was kept separate during the marriage. Don’t Forget About Your DebtMarital debt is not excluded from property division in a divorce. If you acquired joint debt during your marriage, like a mortgage, car payment, or tax debt, you will probably have to split that between the two of you during your divorce. If you owned a credit card in only your name, and you never used it for marital purposes, like groceries, you may be solely responsible for the amount owing. Remember, while the court can assign the debt to either (or both) spouse, it can’t change the contract you have with your creditors. For example, if the judge requires your spouse to pay off a joint credit card, but your ex fails to pay the monthly payment to the creditor, the credit card company can (and will) still come after you for payment. Unless you want your credit score to be in jeopardy, you’ll need to pay it, and ask the court for reimbursement from your spouse later. Draft a Settlement AgreementIf you and your spouse can agree on all of the terms of your property and debt division, you can create a property settlement agreement to present to the judge. Your agreement should list each asset and debt, the owner, and the value. If you want to be sure that you’re not making a bad deal, you should ask an experienced attorney to review the agreement before you sign it. In most cases, the judge will honor your agreement. However, if a party without a lawyer agrees to a property settlement that awards more than half of the property to the other spouse, the judge may want to investigate before approving it. No court wants to see a spouse walk away with an unfair distribution of property. What If We Can’t Agree on How to Handle a Specific Asset?If you and your spouse can’t reach an agreement on property and debt division, you can eliminate the issue by selling the asset and dividing the profits. For example, in most divorce cases, the couple will sell the marital home, subtract the mortgage debt, and split the proceeds. However, if you can’t decide what percentage of the profits each spouse should take, you may have to ask a judge to decide for you. If you’re going through a divorce, and you have concerns about property and debt division, you may want to seek legal advice from an experienced family law attorney in your area. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Why Parents Should Not Leave After The Divorce first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Why Should I Hire A Lawyer For Estate Planning? Why Selling Your Home Could Be The Key To Happy Retirement Why People Got Married And Eventually Get A Divorce Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-parents-should-not-leave-after-the-divorce/ When a marriage ends, spouses and their children often face a perfect storm of stressful events: new living arrangements, parenting schedules, and of course, decisions about property and money. The emotions caused by these changes can make it difficult for spouses to understand the legal process of divorce, and may even impair their ability to make sound decisions. Getting through a divorce may be easier if you’re informed about the process before it begins. The following article provides a few tips to help guide you through this difficult time. Don’t Expect to “Win” Your Divorce CaseA lot of people start their divorce hoping to “beat” their spouse in court. In fact, there’s seldom a true winner in divorce. The typical divorce involves various issues, such as child custody, support, and the division of property. Rarely do divorcing spouses end up with everything they want. For example, one spouse might be awarded primary physical custody of the children, but may receive a much lower amount of spousal support than requested; it’s virtually impossible to tell the “winner” from the “loser” so trying to “win” is pointless. Instead, consider the consequences of a full-blown court battle before you go down that path. In addition to the many thousands of dollars you’ll spend, your children may suffer the most in a heated divorce battle. After the dust has settled, you may soon forget who “won.” Don’t Make Important Decisions Without Thinking Them ThroughMany life-changing decisions come up during a divorce. For example, you may have to determine whether to you need to sell the family home. Resist the impulse to make a quick decision just to get the case over with. When making important choices, it’s essential that you consider the potential consequences. You’re Getting Divorced: Your Kids Aren’tIt’s easy to get wrapped up in the heat of the moment. However, saying cruel things to your spouse in the presence of your children can have a lasting effect. Psychological studies show that the more parents fight during a divorce, the more damaging the whole process is to the children. Whenever you’re about to say something hurtful give yourself some time to think before you speak. A simple rule to follow is to count to ten before you answer a question or make a statement. In addition, unless there’s a history of abuse or neglect, your children will continue to have a relationship with their other parent. No matter how upset you are with your spouse, you should not try to discourage or interfere with a healthy parent-child bond. You may want to consider asking an experienced mental health professional to counsel your children about the divorce, and seek counseling for yourself as well, so you can learn how to address your children’s needs during this difficult process. Don’t Believe Everything Other People Tell You About Their DivorceYour divorced friends may give you advice about what should happen in your divorce. Unfortunately, the information and advice you get from other people can be misleading or wrong. Every divorce has a different set of issues. Your friends may believe what happened in their divorce is typical, but it’s best not to base your decisions on someone else’s experiences. Instead, rely on the advice you get from your attorney, mental health professionals, and financial consultants, all of whom are familiar with the specifics of your case. Forget the Past. Prepare for the Future. Be a “Big Picture” PersonObsessing about all of the bad things you feel were done by your spouse during your marriage will only prevent you from moving on with your life and making decisions that are in your family’s best interests. Try to forget the past and focus on the future. Approach the divorce with a willingness to work with your spouse to achieve the best possible result for your family. You may get hung up on relatively insignificant matters, such as how to divide the DVD collection. Again, this may be because you or your spouse can’t let go of a past hurt. However, this approach will increase the time (and legal fees) it takes to complete your divorce. Don’t sweat the small stuff. Instead, try to be a “big-picture person.” Make some concessions on minor issues, and you can spend more time on important matters, such as when you get to see your children. Court Is Not All That It’s Cracked Up to BeWhen things are not going well in a divorce case, one spouse may threaten to terminate negotiations and head to court. However, the road to a divorce trial is long and costly. The expense of a trial can deplete the very assets that are often the subject of the dispute. Even simple matters can require multiple court days to complete, and after spending many thousands of dollars, spouses and their attorneys are left with the total uncertainty of how a judge will rule. Consider Alternatives to CourtMost people think all divorces end up in court. In fact, there are alternative ways to resolve divorce cases. One method is “mediation” in which a mediator (neutral third party specially trained to work in divorce cases) facilitates face-to-face negotiations between divorcing spouses and helps them work out mutual agreements. The mediator will often recommend that each spouse consult with an attorney while the mediation process is proceeding. However, these consulting attorneys don’t attend mediation sessions. In a “collaborative divorce” each spouse hires a collaborative attorney, and all parties agree to resolve the case without going to court. A team of professionals is assembled to assist in the decision- making process. Besides the attorneys, the usual team includes mental health professionals (who function as “divorce coaches” and child specialists) and a neutral financial specialist, such as an accountant or a financial consultant. Using face-to-face negotiations, e-mails and telephone calls, the spouses and their collaborative team address each issue in the case. The greatest benefit to choosing mediation or collaborative divorce is that they enable divorcing spouses to make their own decisions. In dividing parenting time, for example, a judge might choose a standard schedule that’s used in many other cases. In mediation and collaboration, spouses can structure a parenting plan that best fits their children’s needs. Sometimes, however, court is the only way to resolve an issue. For example, if your spouse subjects you or your child to domestic violence, you will have to file a request for a protective order. Or, if you need immediate financial assistance from your spouse, you might have to ask a judge to award you temporary child support and/or alimony. If so, it’s best to accept the fact that you need to go to court, and consult with an attorney for help. Be Honest With Your Attorney and Your SpouseYou need to provide your attorney with all key facts so he or she can analyze your case properly and give you appropriate advice. Even if you hide something from your attorney, the facts may very well come out anyway (e.g., your spouse may discover hidden facts from a third party or by reviewing documents). By then, however, your failure to be up front may have already harmed your case and your ability to obtain a good result. Similarly, you should be honest with your spouse. In Utah, divorcing spouses must voluntarily disclose complete information and documents regarding their income, expenses, assets and debts. In addition, the law requires spouses to update that information as new facts come to light. The law is serious about these duties. Judges may impose severe penalties on spouses who fail to comply. Create an Inventory of Household Furniture and Furnishings and Make Copies of Important DocumentsDisputes over furniture, furnishings and other valuable items, such as a great wine collection or an expensive piece of art, can be avoided by taking a complete inventory of your home as follows: Despite the strict rules for disclosure, some divorcing spouses will hide or destroy key documents such as pre-nuptial agreements. This problem can be avoided by making copies of important documents as soon as you decide to file for divorce, or learn that your spouse is doing so. Have Reasonable ExpectationsSometimes, divorcing spouses have goals that are completely unreasonable or inconsistent with the law. If you want your divorce case resolved quickly, you need to understand how the law applies to your case and have a reasonable expectation about the outcome. You may want to consult with an attorney to get a better understanding of the potential outcome(s) in your case. People get married for a variety of reasons. Unfortunately, not all of those reasons are healthy. When a marriage is founded on the wrong ones, there is a high likelihood that it will eventually deteriorate. To be sure, a couple that shares common interests, plans for the future, and settles disputes in a civil and constructive manner is likely to survive. On the other hand, a couple that marries because they’re in love, infatuated with one another, or trying to avoid other issues in their lives, is likely to fail. Reason #1 – Get Away From FamilyMany people in their 20s and 30s live at home with their parents. Even if they enjoy a healthy relationship with their parents, being under the same roof can seem stifling. They look for opportunities to move out, and may be inclined to get married as a mode of escape. Needless to say, that’s a less-than-ideal motive for getting married. Sadly, many couples who do so end up calling it quits down the line. Reason #2 – Money And SecurityMarrying someone who has ample financial resources or will be a good provider can be helpful in a marriage, especially if a couple plans to start a family. Statistics show that a large percentage of divorces occur as a result of money issues. The stress that accompanies not having enough money can strain a relationship to its breaking point. Having said that, getting married solely for money and security is a bad idea. A couple that grows to resent or dislike each other will not survive, regardless of how wealthy and financially secure they are. Reason #3 – Sexual AttractionThere’s nothing wrong with being physically attracted to the person you marry. In fact, most marriage counselors agree that mutual attraction plays a big role in a successful relationship. Problems arise, however, when sexual attraction is the main reason you get married. Passoin dissipates with time. Eventually, your relationship will succeed or fail based on how well you and your spouse communicate, work out differences, and trust one another. No amount of sexual attraction can save a relationship lacking in those 3 areas. Reason #4 – To Follow The CrowdWhen all of your friends are tying the knot, you may feel pressure to do the same. The pressure is subtle, but potent. It stems from a niggling feeling of being left out as you become one of the only single people left in your social group. Getting married just to follow the crowd is a risky proposition. Committing to someone who isn’t right for you, or doing so before you’re ready, is a recipe for marital disaster. Reason #5 – You’ve Fallen In LoveLove shared between a couple is obviously important. It would be difficult, if not impossible, to have a successful marriage without it. It’s what motivates one spouse to want the best for the other. It’s what inspires the unique intimacy they share with one another. That’s different than falling “in love.” Falling in love is an overwhelming emotional attachment that one feels toward another person. It’s exhilarating, frustrating, and confusing at the same time. According to psychologists, it can reach the point of obsession. For many couples, it happens quickly, often accompanied by excessively high expectations and a lack of practicality. The deep-seated affection that binds a couple grows with time. Couples that have been married for decades can describe it in detail. If you’ve fallen in love with someone you’ve been dating for a few months, the “love” you’re feeling may simply be infatuation. Getting married because you’re infatuated with someone is a good way to end up in a divorce attorney’s office. Reason #6 – It’s The Next StepA lot of couples get married because they think doing so shows forward progress in their relationship. Needless to say, it may not show that at all. Many people slide into marriage without making a conscious decision to spend the rest of their lives together. They marry because they think they should based on how long they’ve been together. Unfortunately, research shows that such couples are far more likely to divorce. You may be looking back at your reasons for getting married with a twinge of regret. You’re not alone. Millions of people marry for reasons that set the stage for divorce down the road. The important thing to remember is that you’re not forced to remain in an unhealthy marriage. You have options. If you’re thinking about seeking a divorce, consult a family law attorney who can advise you through this difficult and confusing time. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Why Would A Company Do A Private Placement? Why Should I Hire A Lawyer For Estate Planning? Why Selling Your Home Could Be The Key To Happy Retirement Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-people-got-married-and-eventually-get-a-divorce/ Retirement means major changes to your life. When you give up work, you’ll have a lot more free time and flexibility. But there may be another big change as well. For many retirees, it may make sense to sell the home they lived in while working and to move to a new place instead. Of course, this isn’t necessarily the best choice for every senior. But here are some reasons why selling your home after leaving the working world could be the best choice for you. • You Could Downsize To A Property Without A Mortgage: If you are still making a monthly mortgage payment on your current home that would mean you’d need more retirement income to cover your housing costs. That could drain your investment account sooner or cause you to skip out on things you might enjoy doing in retirement, such as traveling. If you can afford to sell your current home for enough money to pay off your loan and purchase a smaller, mortgage-free property, that added flexibility that can come from this move could potentially make your retirement a lot more enjoyable. Advantages of Buying a Second Home In RetirementEven if you were convinced of the advantages of buying a retirement home early, by now you might be wondering how exactly you can afford two mortgages at once. Although it may seem counterintuitive, buying a second home now can actually boost your income and help you save up for retirement sooner. The key here is to think of your retirement home as an investment property. You can use the rental income toward your mortgage payments by leasing out your second property until you are ready to retire. The further in advance you make your acquisition, the more time you have for someone else to pay down your second mortgage. Any rental income not used to pay for expenses can be used to bolster your retirement savings plan. During this time, you will have enjoyed property appreciation on two properties instead of just one. Once you retire and move into your second home, you can rent out your primary residence instead of selling it. In doing so, you will maintain the additional income stream in your retirement years and can also open up the opportunity to continue expanding your rental portfolio if so desired. Your debt to income ratio will be lower while you are still employed, which makes securing a mortgage loan easier. Of course, locking in a mortgage rate while interest rates are low is a smart long-term investment. If you buy your retirement home now, you can save yourself money in the long run. The income you make before you retire is also useful when making renovations or upgrades to your future retirement home. You may want to add accessibility features to the home that you may not necessarily need now. Plan ahead and use the money you’re making now to make changes to your house to save time and stress in the future. Common Mistakes To AvoidBuying a retirement home will require you to think about your future and anticipate life changes. It can be hard to know exactly what to expect as you get older, but there are a few common mistakes to avoid as you consider your next move: Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Why Selling Your Home Could Be The Key To Happy Retirement first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Why Would A Company Do A Private Placement? Why Would A Company Do A Private Placement? Why Should I Hire A Lawyer For Estate Planning? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-selling-your-home-could-be-the-key-to-happy-retirement/ If you read the conventional advice for executors, the first step is usually “hire a lawyer.” And you may well decide, as you wind up an estate, that you want legal advice from an experience lawyer who’s familiar with both state law and how the local probate court works. Not all executors, however, need to turn a probate court proceeding over to a lawyer or even hire a lawyer for limited advice. If the estate that you’re handling and doesn’t contain unusual assets and isn’t too large, you may be able to get by just fine without a lawyer’s help. To determine whether or not you may be able to go it alone, ask yourself the questions below. (If you don’t know the answers, ask a lawyer before you agree to hire the lawyer to handle things for you.) The more questions you answer with a “yes,” the more likely it is that you can wrap up the estate without a professional at your side. Some common examples of assets that don’t need to go through probate are assets are held in joint tenancy, survivorship community property, or tenancy by the entirety. Assets held in a living trust can bypass probate, too. Probate is also unnecessary for assets for which the deceased person named a beneficiary—for example, retirement accounts or life insurance policy proceeds. It’s best if no probate at all is required, but if that isn’t an option, figure out whether the estate can use “small estate procedures. In most states, these include streamlined “summary probate” and an entirely out-of-court process that requires presenting a simple sworn statement (affidavit) to the person or institution holding the asset. Every state has its own rules on which estates can use the simpler procedures. But in many states, even estates that are fairly large not counting non-probate assets can use the simpler processes. Will contests are rare, but if a family member is making noises about suing over the estate, talk to a lawyer immediately. Probate lawsuits tear families apart and can drain a lot of money from the estate in the process. A lawyer may be able to help you avoid a court battle. If the state where the deceased person lived has adopted a set of laws called the Uniform Probate Code, probate should be pretty straightforward. In UPC states, most probates are conducted with minimal court supervision. A few other states have simplified their procedures without adopting the UPC. One of the reasons that many people find hiring a probate lawyer intimidating is that there’s no price tag in sight. Many clients literally have no idea how much they might end up owing. But the process doesn’t have to be so mysterious. If you’ve found that you need expert help, first become familiar with the different ways lawyers charge. Second, protect yourself by getting a written fee agreement from the lawyer. Who PaysRemember that the estate pays the probate lawyer’s fee it doesn’t come out of the executor’s pocket. Of course, if you are both the executor and the only inheritor, then the fee does, in essence, come out of money that is soon to belong to you. Otherwise, the cost is taken from the estate before assets are distributed to the people who inherit them. Probate “Costs” or “Expenses” vs. Legal FeesCosts are how lawyers refer to all the miscellaneous expenses that arise during a probate or other court proceeding. They can add up to a considerable sum, depending on the circumstances. Some examples include court filing fee, postage, publication of legal notices in the newspaper, property appraisals, and recording fee for real estate deeds. How Probate Lawyers ChargeThere are three main ways that lawyers charge for probate work; legal communities in different parts of the country have different customs. The lawyer may also offer you a choice of ways to calculate the bill. By the HourProbably the most common way for probate lawyers to charge clients is to bill by the hour. Hourly rates vary depending on where you live and how experienced (and busy) the lawyer is. In a rural area, you might be billed $150/hour; in urban areas, you’re more likely to see rates of $200/hour and up. Specialists charge more per hour than do general practitioners, but they’re likely to be more efficient. If they’ve filed probate paperwork a hundred times in the local court, they’ve probably figured out how to do it quickly and in a way the court will accept. Because so much of the typical probate case is just standard paperwork, most attorneys use paralegals to help them. Paralegals aren’t lawyers, but they’ve had special training or have simply learned from the attorney how to prepare certain documents. The attorney supervises their work and typically bills their time at a lower rate. Flat FeeAnother popular billing method is the flat fee. An attorney who’s done a lot of probates knows about how long the work takes, and charging a lump sum means the attorney doesn’t have to keep careful records of how the lawyers and paralegals spend their time. Some attorneys also find that clients are more relaxed and comfortable dealing with the attorney when they know the meter isn’t always running. If you are quoted a flat fee, make sure you understand what it covers. It likely won’t include extra costs such as court filing costs or appraiser’s fees. And if you have a complicated case involving a will contest or an estate tax return, for example—the fee will go higher. Percentage of the EstateIn a few states, lawyers are authorized by law to collect a percentage of the value of the estate as their fee. They’re not required to do so you are free to negotiate an hourly rate or flat fee with them. But many prefer it because it usually pays so well in relation to the amount of work actually required. One of the reasons these fees are so often unreasonable under the circumstances is that they are based on the gross value of the probate assets, not the actual net value. For example, if the estate contains a house worth $300,000, but there’s still $100,000 left on the mortgage, the lawyer’s fee is based on $300,000 not the $200,000 of equity. Also, it’s not usually more difficult to prepare probate paperwork for a $700,000 house than it is to prepare it for a $150,000 house so why should the fee be so different? A probate estate with a gross value of $500,000 would generate $13,000 in legal fees. If you were paying by the hour, you could get a lot of hours of the attorney’s work for that much money. Protecting Yourself: Fee AgreementsWhen you hire an attorney on behalf of the estate, get a fee agreement in writing. It’s required by law in some states, and it’s a good idea no matter where you are. The agreement should state: the hourly fee of each lawyer and paralegal who may do work for you, an estimate of the total cost or number of hours, other costs you may need to pay (including court fees, postage, publication and so on), how often you will be billed, when payment will be due, and how detailed the bill will be (each item should be described, so you don’t just get a bill for unspecified “legal services”). If you have a unique situation, need a special needs trust, or are overwhelmed by a complex or large estate, hiring a living trust lawyer can definitely help you sort out any questions or handle creating a complicated living trust. If any of the following circumstances apply to you, you should consider hiring an attorney: Hiring an attorney to create a trust usually will cost more than other estate planning documents but paying the upfront cost for sound legal advice can save you and your loved ones money in the future. Even if your trust is simple, you should consider speaking with an attorney. An attorney can review the trust you created or advise you about laws that are specific to your state. Before questioning whether you need a lawyer to create a trust, you should know what a trust is and think about whether you need one at all. TrustTrusts allow people to say how their property will be distributed after they die while maintaining some control over their property while they are alive. A trust can be simple or complicated to create, depending on your assets and family situation. Trusts often are misunderstood. A trust is not a document, but you will need to draft a trust document to create a trust. A trust is a legal relationship through which someone manages assets for the benefit of another person. Like a will, a trust is a way to ensure your property is distributed to your loved ones according to your wishes. Unlike a will, which does not take effect until the person dies, a trust can begin operating as soon as it is signed and funded. Living TrustA living trust is a trust created during life to either save tax money or establish a long-term way to manage property. Living trusts are specifically designed to avoid probate and are also used to safeguard financial privacy and manage assets should the owner pass away or become incapacitated. A trust is not necessary for everyone. If you are single, have no children, rent your home or apartment, and do not own significant assets, you likely do not need a trust. If you have minor children, a child with special needs, or significant assets, a trust is a wise tool to use. Typical reasons for having a trust are: Most people do not need to worry about estate taxes. Few states have estate or inheritance taxes, and the federal government only assesses such taxes on estates with significant assets. However, Congress revises the estate tax laws from time to time, so you should learn what the current estate tax exemption is when creating your trust. Merely having a trust does not automatically mean lower estate taxes. You will need an irrevocable trust that contains the necessary terms to avoid or reduce your estate tax liability. If you feel that your net worth is close to the estate tax exemption, you should consult with an estate planning attorney. Types of TrustsA trust can be revocable or irrevocable. Most people choose a revocable trust because they want to retain the power to revoke or amend it. An irrevocable trust can be beneficial for tax purposes, but it is not a good option for most people. It cannot be revoked or amended except under limited circumstances. A living trust is a trust used to manage property while you are still alive. A testamentary trust is a trust that is created through a will. It only becomes effective after the person who made the will dies. How Do I Make a Living Trust?A living trust document usually starts with a very basic template and includes the following information: After you have drafted your trust with all of the pertinent information, sign it in front of a notary. Then, to make it effective, use a deed or standard transfer document to transfer the property of the trust into the trustee’s name, per the trust’s terms. Your next step is to fund the trust. This involves transferring ownership of property to the trust. Real estate will require a deed, and you should re-title other assets in the trust’s name. You also can add a provision to a will that makes the trust the beneficiary of any assets you fail to place in your trust or name in your will, but these assets will go through probate and will not transfer to the trust immediately. Who Should Be the Trustee?Unless you are creating an irrevocable trust, you should be the initial trustee so you can maintain control over your assets. You should name a successor trustee to manage the trust after you die or become incapacitated. It is also a good idea to name additional successor trustees to manage the choice if your first successor trustee cannot serve. Your successor trustees should be people you trust to manage your assets. Do not micromanage your trustees with an extensive list of what they can or cannot do. Choose people you believe will make good decisions and who are responsible with money. After all, it is called a trust, not a mandate. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Why Should I Hire A Lawyer For Estate Planning? first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
Why You Need An Estate Plan In Utah Why Would A Company Do A Private Placement? Wy Would A Company Do A Private Placement? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-should-i-hire-a-lawyer-for-estate-planning/ The much-awaited Companies Bill, 2013 got the President’s assent on 29 August 2013. The new Companies Act, 2013 (“Act”) seeks to consolidate and amend the law relating to the companies and intends to improve corporate governance, raise levels of transparency and to further strengthen regulations for corporate. The Act has made significant changes to the provisions of law and has introduced several new concepts. This article deals with the changes made to provisions relating to private placement of securities, which has been an important route of fund-raising for companies. The tightening of private placement norms is done in the backdrop of the recent dispute between the securities market regulator SEBI and Sahara Group where the Supreme Court had ordered the Sahara Group companies to refund the amounts collected from investors. The intent behind the changes is to make the practice more transparent and to prevent misuse of the provisions. Private placement provisions under Companies Act, 1956As per the proviso to section 67(3) of the 1956 Act, when a company makes an offer or invitation to subscribe for shares or debentures to 50 or more persons, such offers is treated as made to public. Where an invitation in made by the management of a company to selected persons for subscription or purchase by less than fifty persons receiving the offer or invitation, the shares or debentures and such invitation or offer is not calculated directly or indirectly to be availed of by other persons, such invitation or offer shall not be treated as an offer or invitation to the public. “Private placement” means any offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) through issue of a private placement offer letter and which satisfies the conditions specified in this section It is to be noted that the provisions for private placement apply to issue of “securities” and not “shares”. The new provisions cover a whole host of instruments such as shares, bonds, debentures and other marketable securities. Section 42(4) provides that any offer or invitation not in compliance with the provisions of the section shall be treated as a public offer and all provisions of the Act, SCRA and SEBI Act shall be required to be complied with in such a case. Offer can be made only to 200 persons in a financial year [Section 42(2) and rule 3.12(2)] Unlike the 1956 Act, under which the number of members in a private company is restricted to 50, private companies under the Act can have members up to 200. As per rule 3.12(2)(b)the Draft Companies Rules, 2013 (“Rules”), an offer or invitation for private placement shall be made to not more than two hundred persons in the aggregate in a financial year, excluding the qualified institutional buyers and employees of the company being offered securities under a scheme of employees stock option as per provisions of section 62(1)(b) of the Act. Section 42(5) of the Act states that all monies payable towards subscription of securities by private placement shall be paid through cheque or demand draft or other banking channels but not by cash. All securities under private placement are to be allotted within a period of 60 days from the receipt of application money. If not the securities are not allotted within the specified period, the application money is to be refunded within a period of 15 days from completion of 60 days’ time. The entire amount raised by the issue of offer or invitation will have to be parked in a separate bank account and cannot be used until allotted. The particulars of every private offer shall be filed with the Registrar within 30 days of circulation of offer letter. The companies offering or inviting subscriptions under private placement cannot advertise or utilize any marketing media. Compliance required under the RulesPart II of Rules deals with private placement. Rule 3.12 prescribes certain additional requirements to be complied with in case of private placement. A private placement offer letter shall be accompanied by an application form addressed specifically to the person to whom the offer is made and shall be sent to him, either in writing or in electronic mode, within thirty days of recording the names of such persons in accordance with section 42(7) of the Act. No person other than the person so addressed in the application form shall be allowed to apply through such application form and any application not so received shall be treated as invalid. The proposed offer of securities or invitation to subscribe securities must be approved by the shareholders of the company, by way of a special resolution, for each of the offers/ invitations. The offer or invitation shall be made to not more than two hundred persons in the aggregate in a financial year, excluding the qualified institutional buyers and employees of the company being offered securities under a scheme of employees stock option as per provisions of clause (b) of sub-section (1) of section 62 of the Act. The number of such offers or invitations shall not exceed four in a financial year and not more than once in a calendar quarter with a minimum gap of sixty days between any two such offers or invitations. The value of such offer or invitation shall be with an investment size of not less than fifty thousand rupees per person. The payment to be made on subscription of securities shall be made from the bank account of the person subscribing to such securities. However, monies payable on subscription to securities to be held by joint holders shall be paid from the bank account of the person whose name appears first in the application. Penalty for non-complianceSection 42(10) of the Act prescribes the penalty for contravention of section 42. If a company makes an offer or accepts monies in contravention of the section, the company, its promoters and directors shall be liable for a penalty which may extend to the amount involved in the offer or invitation whichever is higher. Also, the company is required to refund all monies to subscribers within a period of thirty days of the order imposing the penalty. Position of unlisted public companiesIn December2011, the Ministry of Corporate Affairs had issued Unlisted Public Companies (Preferential Allotment) Amendment Rules, 2011 (“2011 Rules”) and made the preferential allotment rules as applicable to public companies more stringent. Some of the provisions of 2011 Rules are listed below: The offer for preferential allotment cannot be made to more than 49 persons. Any offer or invitation not in compliance with provisions of section 81(1A)read with section 67(3) of the 1956 Act would be treated as public offer and provisions of the SCRA and SEBI Act will need to be complied with. The money payable on subscription should be paid only by way of cheque or DD or other banking channels but not by cash. Allotment of securities should be completed within 60 days from the receipt of application money. If not so allotted, the company should repay application money within 15 days thereafter, failing which it should be repaid along with an interest at the rate of 12% per annum. The application money should be kept in a separate bank account and should not be utilized prior to allotment. Company offering securities cannot release any public advertisements or utilize any media, marketing or distribution channels or agents to inform the public at large about the offer. The private placement provisions as contained in the Act have incorporated the provisions of the 2011 Rules. While the 2011 Rules were applicable to public companies only, the provisions of the Act on private placement will apply to all companies. Once the Act comes into force it is to be seen whether the 2011 Rules will be repealed or the public companies will be required to comply with both the Act as well as the 2011 Rules. In to make money with stocks there are steps you need to takes, below are some of the steps: A private placement memorandum is an offering document, sometimes called a prospectus, offering circular, or PPM. The majority of early startups and emerging growth companies commonly raise money through what are known as private placements. It is simply a sale of stock (or debt) in the company to private investors that become shareholders in the company. The reason they are classified as private, is not because they are private investors, but because the offer and sale of stock (a security) does not involve any public advertising or general solicitation of investors. For example, when a stock goes public, they are offering stock publicly by filing a registration statement, press releases, etc. This process of registering the securities with the SEC allows the company to utilize the media and other methods to offer its stock for sale. Since most companies don’t have the money or resources to file a registration statement with the SEC, they rely upon selling the stock through exemptions from registration. Although there are other exemptions that are used, the most common exemptions used under federal securities laws (Securities Act Section 3(b)) for startups raising money are: If Rule 505 or 506 placements are only sold to accredited investors, there is no information specifically required to be provided. If there is even one non-accredited investor, the company must provide (unless they are already a reporting company with the SEC) certain financial and non-financial statement information. The term accredited investor was amended recently under the Dodd-Frank Act. There are a number of categories to qualify based upon things such as recent income and net worth, but the main change was to limit the definition for net worth to not include the investor’s primary residence as an asset and not include the mortgage on their primary residence as a liability (except for debts taken out within 60 days, for example a cash out refinance). Rule 502(b) does also required the company to provide reasonable access to information requested by potential purchasers for Rule 505 and 506 offerings prior to their purchase. Even though a sale may be exempt from registration and have limited or no information requirements to provide to potential investors, the anti-fraud rules still apply and a company can get into a serious bind if they misrepresent, lie, omit, or misstate items about the company, its business, its management, future business, and other items. Those exemptions require that no public advertising or general solicitation is used in the offer and sale of those securities. So, the company is not able to start issuing press releases, posting website ads, or sending mass mailings to potential investors in most cases. This does make it more difficult to get your message out there, but it must be complied with for the offering and sale to qualify for the exemption and not violate securities laws. Often this results in needing to be introduced to prospective investors through connections. When the company decides to raise money through a private placement (which can also be in the form of a loan, which is still classified as a security), they have certain rules they must follow for the placement to qualify for the exemption and comply with securities laws. A recommended list of categories for your business plan (which will also cover many of the PPM information requirements): • Exhibits & Footnotes– At the end when you may want to attach full pro forma financial statements as exhibits, you should also think about other things related to the business. Some people add a copy of the patent filings and issued patents the company owns, research/white papers, SEC filings, license or joint venture agreements, process flow diagrams, and other information that you can summarize in the body of the business plan, but provides more detailed info if the investor wants to read more. In place of these sometimes lengthy documents, you may want to add footnotes in the body with hyperlinks to the source for your information for the investor to read through those links. Of course, you want to think about confidentiality when it comes to any documents provided, but showing your sources for information can help to show that you have done your homework. It becomes essential for the company and management during this process to cover all bases and be sure it is protected from lawsuits and SEC or other regulatory action. When a company fails to execute what they said they would do and the investor loses their investment, the plaintiff’s lawyers start circling looking for someone to go after, like the board of directors and upper management or just about anyone involved with the investment process. This is where a private placement memorandum can be a valuable tool to help protect the company and its officers, directors, and others. Free Initial Consultation with LawyerIt’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!
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Why You Need An Estate Plan In Utah Why Would A Company Do A Private Placement? Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Ascent Law, LLC https://www.ascentlawfirm.com/why-would-a-company-do-a-private-placement-2/ A private placement is a method for both public and private companies to raise capital through the private sale of corporate debt or equity securities, to a limited number of qualified investors (aka lenders); it is an alternative to traditional capital sources, such as bank debt, or issuing securities on the public bond market. Advantages of private placementOne major advantage of private placement is that the issuer isn’t subject to the SEC’s strict regulations for a typical public offering. With a private placement, the issuing company isn’t subject to the same disclosure and reporting requirements as a publicly offered bond. Furthermore, privately placed bonds don’t require credit-agency ratings. Another advantage of private placement is the cost and time-related savings involved. Issuing bonds publicly means incurring significant underwriter fees, while issuing them privately can save money. Similarly, the process can be expedited when done in a private manner. Furthermore, private placement deals can be custom-built to meet the financial needs of both the issuer and investors. Advantages of Raising Capital through Private PlacementSmall businesses face the constant challenge of raising affordable capital to fund business operations. Equity financing comes in a wide range of forms, including venture capital, an initial public offering, business loans, and private placement. Established companies may choose the route of an initial public offering to raise capital through selling shares of company stock. However, this strategy can be complex and costly, and it may not be suitable for smaller, less-established businesses. As an alternative to an initial public offering, businesses that want to offer shares to investors can complete a private placement investment. This strategy allows a company to sell shares of company stock to a select group of investors privately instead of the public. Private placement has advantages over other equity financing methods, including less burdensome regulatory requirements, reduced cost and time, and the ability to remain a private company. Regulatory Requirements for Private PlacementWhen a company decides to issue shares of an initial public offering, the U.S. Securities and Exchange Commission requires the company to meet a lengthy list of requirements. Detailed financial reporting is necessary once an initial public offering is issued, and any shareholder must be able to access the company’s financial statements at any time. This information should provide enough disclosure to investors so they can make informed investment decisions. Private placements are offered to a small group of select investors instead of the public. So, companies employing this type of financing do not need to comply with the same reporting and disclosure regulations. Instead, private placement financing deals are exempt from SEC regulations under Regulation D. There is less concern from the SEC regarding participating investors’ level of investment knowledge because more sophisticated investors (such as pension funds, mutual fund companies, and insurance companies) purchase the majority of private placement shares. Saved Cost and TimeEquity financing deals such as initial public offerings and venture capital often take time to configure and finalize. There are extensive vetting processes in place from the SEC and venture capitalist firms with which companies seeking this type of capital must comply before receiving funds. Completing all the necessary requirements can take up to a year, and the costs associated with doing so can be a burden to the business. The nature of a private placement makes the funding process much less time-consuming and far less costly for the receiving company. Because no securities registration is necessary, fewer legal fees are associated with this strategy compared to other financing options. Additionally, the smaller number of investors in the deal results in less negotiation before the company receives funding. Private Means PrivateThe greatest benefit to a private placement is the company’s ability to remain a private company. The exemption under Regulation D allows companies to raise capital while keeping financial records private instead of disclosing information each quarter to the buying public. A business obtaining investment through private placement is also not required to give up a seat on the board of directors or a management position to the group of investors. Instead, control over business operations and financial management remains with the owner, unlike a venture capital deal. Reasons to issue a private placementPrivacy and ControlPrivate placements enable companies that value privacy to remain private. In contrast to public debt and equity offerings – which require public filings, disclosures of company information and financing documents and terms – private placement transactions are negotiated confidentially, and public disclosure requirements are limited. With a private placement, companies would not be beholden to public shareholders. Long MaturitiesPrivate placements provide longer maturities than typical bank financing arrangements. They are ideal for companies seeking to extend or layer their refinancing obligations out beyond the typical 3-5-year bank tenor. Additionally, longer maturities often allow for limited amortization, which can be attractive to companies seeking to invest in capital assets, acquisitions and/or invest in projects that have a longer investment return runway. Fixed RateTypically, private placements are offered at a fixed-interest rate, minimizing interest rate risk. Through a fixed-rate financing, companies can avoid the concern commonly associated with floating-rate coupons, should underlying interest rates rise. A fixed coupon generally allows companies to allocate the cost of debt capital for specific project financings, acquisitions or large capital investment programs. Diversify Capital SourcesPrivate placements help diversify a company’s sources of capital and capital structure. The stable investment appetite shown by insurance companies and other large institutional investors in the private placement market is typically independent from many of the market variables that impact bank market lending activity. Since the terms of private placements can be customized, these transactions are typically crafted to complement existing bank credit facility capacity as opposed to directly competing with these relationships. Creating capital access in both the private debt and bank markets can allow companies to optimize their access to debt capital. Diversification of financing sources becomes particularly important during market cycles when bank liquidity may be tight. Additional CapacityMany companies issue private placements because they have outgrown their borrowing capacity and need capital beyond what their existing lenders (banks, private equity firms, etc.) can provide. Private placements typically focus on cash flow lending metrics and can be completed on either a secured or unsecured basis, depending on the issuer’s existing capital structure. Buy-and-HoldPrivate placements are typically “buy-and-hold,” meaning the debt investment wouldn’t be purchased with the intent to sell to another investor. Thus, private placement borrowers benefit from the ability to create a long-term relationship with the same investor throughout the life of the financing. Ease of ExecutionPrivate placement financings are regularly completed by both privately-held, middle-market companies as well as large public companies. These transactions provide issuers with access to capital on a scale that rivals underwritten public debt offerings, but without certain preconditional requirements, such as ratings, public registrations or minimum size restrictions. For public companies, private placements can offer superior execution relative to the public market for small issuance sizes as well as greater structural flexibility. Cost SavingsA company can often issue a private placement for a much lower all-in cost than it could in a public offering. For public issuers, the Security and Exchange Commission (SEC) related registration, legal documentation and underwriting fees for a public offering can be expensive. Additionally, in contrast to banks that often rely on ancillary services and fee generation to enhance investment return, private placement lenders rely exclusively on the yield from the notes that they purchase. Taking into consideration the yield-equivalent savings on avoided underwriting fees, in conjunction with the yield premium often associated with first time issuers and small issuance premiums, private placements can provide a very attractive alternative to the public debt market. Fewer InvestorsUnlike issuing securities on the public market, where companies issuing debt securities often deal with hundreds of investors, private placement transactions typically involve fewer than 10-20 investors, and in many cases, are completed with a single large institutional investor. This approach can materially simplify the investor tracking burden for issuers as well as allow them to concentrate their investor-relationship efforts on a few key financial partners. Familiar Pricing ProcessThe process for pricing private placements debt transactions is very similar to that of public securities. The coupon set for fixed-rate notes issued reflects the underlying U.S. Treasury rate corresponding to the tenor of the notes issued, plus a credit risk premium (a “credit spread”). This process allows for general transparency as to the approach that institutional investors undertake when establishing the economics of the transaction. Speed of ExecutionThe growth and maturity of the private placement market has led to improved standardization of documentation, visibility of pricing and terms as well as increased capacity for financings. As a result, the private market can accommodate transactions as small as $10 million and as large as $1-$2 billion. That, when combined with standardized documentation and a smaller universe of investors, fosters quick execution of an investment, generally within 6-8 weeks (for an initial transaction, with follow-on financings executed within a shorter time frame). As noted, it can be much faster to issue a private placement versus a public corporate bond (particularly for first-time issuers) due to the elimination of prospectus drafting, rating agency diligence and registering requirements with the SEC. Private Placement Program AdvantagesLong Term AdvantageIf it is a debt security, the Company issues private placement bonds which generally have a longer time to mature than a bank liability. Thus, the Company will have more time to pay back the investors. This is ideal for the situations where the Company is investing in new businesses that would require time to learn and grow. Further, if this placement is done on equity shares; they are generally done to strategic investors with a “buy-and-hold” strategy. These investors invest for a longer duration and also provide strategic inputs on running the business. Thus, the Company benefits from having a long-time relationship with the investor. Less Execution timeframeAs the market for this placement has matured this has increased standardization of documentation, better terms, and pricing and increased the size of raising funds. Further, the issuer does not have to register and market such a fundraising exercise with the regulator, hence it can be executed in lesser time and cost. If the issuer is issuing private placement bonds that will be privately held, he may not be required to get credit rating which will further reduce the cost to be paid to the credit agency. Diversification of FundraisingFundraising by this placement helps the Company to diversify Company’s funding sources and its capital structure. It aids the Company in raising capital when market liquidity conditions are not good. It helps the Company to organize the capital structure in terms of debt-equity structure and help it to manage its debt obligations. Lesser Regulatory RequirementsThis placement requires limited public disclosures and is prone to less regulatory requirements than that would be needed in a public offering. Thus, the Company would negotiate the deal privately and offer the securities at a negotiated and fixed price. Sell to Accredited InvestorsThis placement issuer can sell complex securities to the investors participating in the issue because such an issue will be limited to a select group of investors (accredited investors). Further, they would understand the potential risk and return on such securities. Is a private placement a good investment?Like As we all know, private placements are a funding round of securities which are sold outside of a public offering and mostly to a small number of chosen investors. Investments in companies that are privately owned. In other words, these placements can be can be sold by: Risk factorsThe main risk factor is the concern about the participation of the company in the stock market or not (meaning, whether it will be traded in a public stock market). Many elements factors can affect a company’s profitability;, the delay or even deny the refusal of participation of or a private company in the stock market can negatively affect your investment profit and liquidity. Some private companies are family businesses that have grown and become important players in their respective markets. However, it’s often difficult for the owners to give up control, which something that happens when most of the company’s shares are sold in a public stock market. Another factor is the company’s financial health, accounting records or outdated tax returns. A company must present extensive regulation documents to obtain the necessary permission to market its shares in the public stock market. If the financial health of the company is not on point, if the accounting books are not in order, or if there is any inconsistency, it will delay or even deny negate the company’s participation in the stock market. Finally, if the private placement is done in a company that has no intention of going to the public stock market (i.e. a development project) then the risk will can be rather associated with company’s rate of success and the shares’ liquidity success as such. Free Initial Consultation with LawyerIt’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!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
The post Why Would A Company Do A Private Placement first appeared on Ascent Law, LLC.
4.9 stars – based on 67 reviews
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