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What can we learn from celebrity break-ups, billionaire settlements, straying husbands, downright daunting divorce laws, or scandalous politicians? PLENTY! Meet our contributing writers and professional advisors who are tickled pink to ponder all of the news, views, gossip and buzz that we love to hear!

Katherine McKee's picture

K-Fed and Britney's Legal Bills Mount

Posted by Katherine McKee on Tue, 03/11/2008 - 10:30am

Apparently, K-Fed, Britney Spears' ex, is a generous tipper.

According to attorneys for Spears, if Kevin Federline can tip a waitress $2,000, he can afford to pay his own legal bills. And boy are those bills mounting: K-Fed is looking at a $405,000 legal tab that he thinks his ex should pay.

Spears' new attorney Stacy Phillips told a court commissioner that Federline should pay between $150,000 and $175,000. She alleges that K-Fed omitted his $200,000 spousal-support checks from his earning declarations. Phillips also alleges that Federline recently tipped a waitress $2,000 on a $365 bill, and spent $20,000 on jewelry, phone calls and food while listing the charges as "business expenses."

Naturally, K-Fed's attorney says Spears should keep writing the checks. Spears' old law firm Trope and Trope reportedly charged her $630,000 for four months' work, while Federline's portion of the bill from his attorney was about $250,000 less.

These legal fees are mind-blowing but when you consider that attorneys, all kinds, routinely make $500 an hour, not including the hefty retainers they receive at the get-go....well, it's not unfathomable to see how quickly celebrity divorce cases hit the million dollar mark.

We're waiting to see what happens in the Mills/McCartney ruling, supposedly scheduled for March 17. And now, we're waiting with bated breath for the Spitzers to split; the New York Governor, in case you haven't heard, was caught up in a prostitution ring. Eliot Spitzer comes from a wealthy family but it's Silda who earned the big bucks as a high-powered corporate attorney. We'll wait and see...

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Katherine McKee's picture

Protecting Your Credit When A Marriage Ends

Posted by Katherine McKee on Sat, 03/01/2008 - 12:00pm

When your marriage is falling apart, it's urgent to take steps to protect your credit. Divorce ends one relationship, but the one you have with your creditors goes on.

To avoid a drastic hit on your credit score, you need to act in order to weather a financial storm created by divorce.

Financial experts have documented that a woman's credit takes a bigger hit than a man's when a couple splits up. Without a solid credit history in your own name, you won't be able to qualify for re-financing the marital home. And you're also likely to end up with high-interest credit cards and auto loans. Consumer financial guru John Ulzheimer makes the following useful suggestions:

* Pay up joint debts and cancel joint credit cards after you get a card in your own name.

* If joint debts can't be paid off, freeze those accounts so that neither you or your ex can run up more debt.

* If you're merely a credit card user on your spouse's card, remove your name.

* The family home should be sold unless one of you is able to buy out the other by qualifying for a new mortgage.

* Vehicles should be re-titled in each spouse's name, and car loans would have to be paid.

* If your ex is assigned to pay debt and fails to do so or pays late, place the shared accounts online so both of you can verify if the debt is being paid.

* If either of you is unable to pay the monthly bills due to job loss or illness, communicate with creditors to work out an arrangement. Unpaid joint debt will be reported to the three national reporting agencies resulting in lower credit scores.

I think it's good advice to take these precautions to protect your credit. Women especially benefit from these steps. Remember, regardless of a divorce, if there is joint debt — a mortgage, car loan or credit card — you're both on the hook to pay it off.

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If you're involved in a contested divorce, or are about to be, you need to be aware of using electronic devices to uncover illicit affairs or hidden assets.

It goes without saying that there is a treasure trove of information in your spouse's computer, Blackberry, cell phone and other electronic gadgets. It may seem like snooping, but during the discovery phase of a divorce, you can legitimately request copies of your spouse's e-mails. They may reveal adulterous relationships or hidden property. And that information can go a long way toward aiding your cause in contested issues such as custody, income and expenses.

GPS devices may reveal the whereabouts of a cheating spouse on days when you have doubts about unreasonable explanations. Another tool, now available with a court order, are E-ZPass toll records, which can similarly be used to establish rendezvous with a lover.

But this data mining isn't without its share of pitfalls. Electronic sleuthing can be illegal if you improperly access private electronic sources. If you break into a device, or if you lack permission to access it, the court may prohibit you from using the information in your case. Self-help steps must be employed legally. If you are an authorized user of your spouse's computer or cell phone, the information would be legally discovered.

You can open up a mine field of damaging evidence so long as no crime is committed in securing the facts. Internet browser histories, cell phone records and e-mails are increasingly being introduced into disputed divorce actions. Don't illegally take a Blackberry or laptop to a forensic expert to retrieve deleted information. Don't steal passwords. Attorneys and courts won't be party to illegal acts or invasions of privacy. But aside from those warnings, happy data mining.

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Katherine McKee's picture

Heather Mills Scores $108 Million Settlement

Posted by Katherine McKee on Sat, 02/16/2008 - 9:04am

Heather Mills, the ex-wife of former Beatle Paul McCartney, is just a little richer today, having scored a $108 million dollar settlement after a week-long battle in a British court.

The Daily Mail newspaper also reports that Mills will receive a lump sum of $40 million with another $5 million a year after the couple's daughter Beatrice, 4, turns 18.

The newspaper reports that the whopper settlement represents just a fraction of McCartney's fortune.

Originally, Mills asked for up to $160 million.

The Mills/McCartney nasty divorce began in May 2006; Mills is the primary caretaker of the couple's daughter but both parents have equal visitation.

The settlement managed to eclipse the previous British divorce settlement record of $94 million. That record was set by businessman John Charman.,

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Katherine McKee's picture

“Subway Guy’s” Ex Gets Fat Settlement

Posted by Katherine McKee on Mon, 02/04/2008 - 1:00pm

She stuck with him through thick and thin and now Elizabeth Fogle, who was married to Jared "The Subway Guy" Fogle, is getting a fat divorce settlement from the Subway pitchman.

Elizabeth Fogle was married to Jared for six years. Jared lost 245 pounds in a year by creating a special diet consisting of turkey and veggie sandwiches from the Subway chain. Elizabeth's getting more than $230,000 from Jared Fogle Inc. and 60 percent of the proceeds from her ex's book, published by St. Martin's Press.

Jared, who at one time weighed 425 pounds, became a pitchman for Subway restaurants in a series of TV commercials that made him an overnight D-list celebrity.

Jared and Elizabeth separated in March 2006 and their divorce became final last fall.

Apparently Jared's managed to keep the weight off despite his penchant for indulging in nachos and cheese at Indianapolis Colts games. And ladies, he's dating!

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Great piece by Kimberly Palmer in the "Alpha Consumer" column in U.S. News and World Report about how exes can clear up their credit if their partner stole their identity or otherwise ruined their credit. Too many women are in this situation. Is that you?

The piece suggests immediately calling credit reporting agencies like Equifax if your ex used your name and Social Security number to obtain credit without your knowledge. Close unauthorized accounts and all joint credit card and other acounts, file a fraud report with the police and alert all credit reporting agencies to place a fraud alert on your account.

If your ex is using credit cards you previously owned as a couple, then you are still liable for any charges that surface. Ouch! In states with community property laws, all accounts opened during a marriage are considered joint, regardless of whose name is on them. But you can still file a report disputing the charges with the credit reporting agencies. Have any of you been through this ordeal?

Keep in mind that divorcing couples who negotiate divorce decrees that include that one ex-spouse will pay off the credit card debt aren't excused from the other ex's financial responsibility. Ouch! Creditors can still demand payment from the "clean" spouse which can negatively impact their credit score.

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Laura Norman, the estranged wife of golf great Greg Norman, has filed an extension as she prepares for her divorce trial. In June, the couple had agreed on how to split their assets, but a jury trial is forthcoming in order to determine who is responsible for a tax liability on one of Greg Norman's jets, among other things.

On Wednesday, Laura filed papers requesting more time to prepare for the trial. Meanwhile, Greg has threatened to sue Laura for libel after her attorneys' allegations about the divorce made tabloid headlines.

The couple was married for 26 years and agreed to split all marital assets in half.

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Claire Henry, the estranged wife of Thierry Henry, the international soccer star, or he who plays football, says she's going for broke in her divorce settlement. The stunning pair announced their divorce a few weeks ago. Claire wants 10 million pounds.

"She's angry and is talking about taking him to the cleaners," a source reportedly told The Sun newspaper. The model has hired Fiona Shackleton, the divorce attorney who also represents Paul McCartney. Thierry is currently playing soccer in Barcelona; the couple have a daughter.

Thierry is believed to be in a relationship with Spanish actress Paz Vega. They met while shooting a Reebok ad—ah, sweet, another on-set romance.

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Okay, so you're in the middle of a divorce and your ex has somehow managed to ruin your credit even though you were the one who handled most, if not all, of the finances. What do you do? Well, First Wives World has tackled this subject recently. As a matter of fact, we're going to keep educating you about it because it's soooo important.

Divorce can bring on financial ruin, as many people know. If you have merged assets and joint ownership of property (like most married couples do) this is a major issue! I was reading a story that brings up a good point: When you divorce, your marriage ends but not your shared financial responsibilities. If your spouse racked up debt without your knowledge during the marriage, you may be held responsible for it after the divorce. It sucks, but it's true.

So financial experts agree that you must take action to cut all financial ties with your ex. Here's what you can do for starters:

1. Make sure you know where all accounts are including bank accounts, mortgage loans, credit cards and utilities. Even if you and your spouse have decided who gets what property, you need to make sure that the right person is solely responsible for their respective belongings.

2. Remove your spouse's name from all accounts or cancel them completely. You should both handle the canceling together. Start with the bank accounts. If you're taking possession of a car with both of your names on the note, have your spouse's name removed. Make sure that your spouse does the same thing with any property they take.

And, if you're still paying for any of this property, then you may have to refinance to get the loan down to one name. Any bills you paid together, such as your utilities, should be put in one name. For credit cards, work with the companies to have them transfer half of the balance to two different accounts.
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Katherine McKee's picture

Divorce: It's A Major 'Financial Event'

Posted by Katherine McKee on Wed, 08/01/2007 - 5:43pm
Divorce can be a long process. It's also a major "financial event." And according to the folks at The Motley Fool, it can be costly...oh my, yes. Depending on who you are and what your net worth is, etc., etc.

The Fool suggests you seek out an attorney's advice early even if you're only thinking about a divorce and even if you expect it to be a mostly amicable affair.

Do keep records. Yes, that means all of your credit card statements, if no other reason than to prove you pay your bills on time. You're going to need that proof come settlement time.

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