Tag Archives: control

Navigating Financial Anxiety in Challenging Economic Times

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Stacy D. Phillips ●

Recessions can take anyone by surprise. Many different economists have been predicting a recession for months now, though whether it is for a long or a short downturn, and when exactly it may fall upon us, is entirely up for debate. This is the cyclical nature of the economy. Although 2023 may be a challenging in various ways, your main challenge could be controlling your fear.

In my book, Divorce: It’s All About Control. How to Win the Emotional, Psychological and Legal Wars, I underscore just that: control. A spouse who can control their anxiety, even in financially stressful times, can control the outcome of their divorce. This mindset is key to avoiding long-term emotional damage and will help you (ideally sooner rather than later) move on in a positive light.

The Many Effects of an Economic Downturn on Divorce

If any spouse is considering a divorce in a potentially harsh economy, they must look at their specific situation to determine if they should proceed with a divorce or wait until better economic times return. 2020 was the last significant economic downturn we experienced. Many Americans became unemployed or underemployed. However, divorcing in a weak economy could mean fewer assets for couples to divide. It could also mean you could pay less in spousal support, also known as alimony, or child support because your income has diminished. You could also buy out your spouse’s interest in an asset for a small fraction of what that asset would be worth in a healthier economy. The flipside is also true – you could receive lower spousal and child support than you otherwise would, and you could receive far less in an asset buyout than you would in a healthier economy. There is certainly no definitive circumstance. How the economy affects your potential divorce is entirely unique to you. There is no model template to know when the best time is to file for divorce. The wisest thing you can do is to talk with an experienced attorney.

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It’s All About Control

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Stacy D. Phillips

As a family lawyer specializing in high net worth and high profile cases for more than 35 years, you can imagine that I have seen it all. Representing many celebrities—often involving complex, high conflict matters—I have observed that whatever the salacious headlines, particular facts, and circumstances of each case, there is one important commonality: control.

It is a given that every case I handle will have its share of “issues,” many of which go beyond the division of assets. Frequently, some urgent situation or chronic problem creates a dispute involving the need/desire/obsession of one party to dominate the other. Neither gender has exclusivity when it comes to pursuing, possessing, and asserting control, whether during the marriage, the divorce, or its aftermath. The reality is: Control is prevalent in any relationship. And, when couples are jockeying for it, a legal case becomes a contest. All too often, contests escalate to wars because, by nature, human beings are competitive. Continue reading →

Noteworthy Nuances of High Profile and Celebrity Divorce (Part Two)

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Stacy D. Phillips

Part Two: A Particular Kind of Tug-of-War

In dissolutions of high-net-worth and celebrity marriages or domestic partnerships, intellectual property rights, profit participation, residuals, and royalties often represent the most valuable of all the assets. They frequently become a battleground for control. Contracts are typically made over long periods of time, and are constantly renegotiated and amended. Valuing such assets can quickly become a hotly contested issue. These assets require a sophisticated and experienced family law attorney, working with a top forensic accountant, who understands the nuances involved.

The matter of support is often a particularly difficult challenge when the major earner of the couple is a professional sports figure. Because their ability to play and earn at the highest levels is limited to a finite time period, support (both spousal and child)—and custody, for that matter—could change dramatically when the professional’s career ends. The lifetime of an entertainer’s career can be similarly brief or span decades, presenting equally complex implications. These are nuances that must be managed when the income of the earning spouse/parent exceeds the couple’s marital standard of living and/or the reasonable needs of the children.

Child custody is another highly nuanced area of family law, particularly when one or both parents are required to be “on location” or travel extensively for business. The amount of time spent with the children, where that time is spent, the level of child support, the ages of the children—all are factors that impact custody agreements. If a parent’s absence is due to filming away from home, for example, is that parent entitled to makeup time? Are the children to visit on location, missing school, friends and their normal routine? Are the children of an age to fly alone? These sorts of custody arrangements are, in many cases, subject to annual renegotiation depending on the working parents’ professional demands. All too often, these negotiations can devolve into contentious Control Wars.

What is especially difficult about most divorce and custody cases is that this tug of war over control does not begin or end in my office or the courtroom. It may go on for years, long after the divorce decree or judgment of paternity is official. I truly believe that a better understanding of how to mitigate control battles would greatly benefit anyone contemplating or in the midst of divorce, and those who suffer from what I term “divorce residue.” Attorneys, even the best ones, cannot be expected to stop these battles or manage the other party. I have seen, however, that if both parties resolve to diminish the legal, financial, and emotional Control Wars, there is hope for the prospect of healing and peace.

Noteworthy Nuances of High Profile and Celebrity Divorce (Part One)

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Stacy D. Phillips

Part One: Control is the Common Denominator

As a family lawyer specializing in high-net-worth and high profile cases for more than 30 years, you can imagine that I have seen it all. Representing many celebrities—often involving financially complex, high conflict matters—I have observed that whatever the salacious headlines, particular facts, and individual circumstances of each case, there is one important commonality: control.

It is a given that every case I handle will have its share of “issues,” many of which go beyond the division of assets. Frequently, some urgent situation or chronic problem creates a dispute involving the need/desire/obsession of one party to dominate the other. Neither gender has exclusivity when it comes to pursuing, possessing, and asserting control, whether during the marriage, the divorce, or its aftermath. The reality is: Control is prevalent in any relationship. And, when couples are jockeying for it, a legal case becomes a contest. All too often, contests escalate to wars because, by nature, human beings are competitive.

Control is a fickle power. It can change hands at the flick of a need or want, or due to external forces (such as employment or health problems), or internal circumstances (such as falling in love with someone else). The battle for control is amplified in most personal relationships that fail, and may not be limited to the former couple. It can also include various personal and business associates and advisors.

Celebrity clients often face the same issues as other divorcing individuals; however, there are important nuances at play. There are issues of income, support, child custody, and legal fees, of course, but not of the garden variety. Often it is precisely these complications that can cause the Control Wars, leading to prolonged litigation and negotiations. There are no cookie-cutter solutions.

Many wealthy individuals, and especially celebrities, face paternity suits. In these cases, innocent children often become a lever for control. Moreover, if paternity is established, the father could have substantial child support responsibilities, considerable legal fees, and too often, personal and professional images can be tarnished by leaks to the media from the party trying to gain leverage. Sadly, after the dust settles in these battles, the children of such relationships frequently become collateral damage.

Next month, in Part Two of this article, I will share some interesting nuances particular to high profile, celebrity, and high-net-worth divorces and child custody matters.