Rhode Island Divorce Tips by Attorney Chris Pearsall

The Confusing Rhode Island Family Court DR-6 Form - New RI Family Court Form!

Anyone wishing to file for divorce in the State of Rhode Island must fill out a financial form known as the "Statements of Assets and Liabilities" otherwise known as the DR-6 Form.

Quite some time ago I wrote about this form to assist people in understanding it, because it was less than clear what the form was intended for, what it was actually used for, and to try to eliminate to at least a small degree some of the mystery surrounding the confusing Rhode Island DR-6 form.

In October of 2011, Rhode Island's DR-6 Statement of Assets and Liabilities form was completely overhauled and a new DR-6 form is now required.  The previous DR-6 form consisted of the front and back side of a single page.

 The new and improved DR-6 form is now nine (9) pages long and has been created in the form of an Excel spreadsheet which is available for download from the Rhode Island Family Court's website.

The new DR-6 is substantially more extensive and requests more specific information about virtually every form of asset, debt, income, expense and investment.

Whether Rhode Island's new Statement of Assets and Liabilities is actually an improvement is an issue that remains up for debate.  However, in the very least the form requires a substantial amount of disclosure from all plaintiffs and to the extent the DR-6 filing is enforced by the court, a subsequent disclosure to the same extent by a defendant.

As with its predecessor form, there are no specific instructions for the completion of the Rhode Island Family Court's new DR-6 form.  Though the detailed nature of the form might suggest that it is no longer confusing. You might change your mind though once you try to fill one out on your own.

The confusion lies in the fact that it is entirely possible for an item of income to also just as easily fit into a subcategory of asset.  The same concept applies to a debt item which might also fit into a category or subcategory of liabilities.  Common sense would seem to indicate that inclusion of the same item in both the debt section and the liability section would create a double entry and that the form's creators would have no reason to create a form which duplicates information.  

The conclusion that can be drawn from this is that the form's creators only intended you to include any item which might fall under both areas into one of the areas.  

So what is the confusion, right?  Which area should it be included in?  Should you include the item in the first section that seems appropriate and leave it out from the second section that applies?  Or should you do it in the reverse order and wait until you come to see if you come to a second section that might apply and place it there?

One would think that there would be appropriate direction for this question.  I tried to use common sense and my analytical mind to determine the best category and/or section that should be selected when working with various debt items.  I found that even if I wanted to discern the best category and/or section to put an item in, I found that numerous items applied equally well to two categories and/or sections on the DR-6 form.  I found, in the course of analyzing the form with actual information that there were even three semi-common items in many divorce financial structures that might fit equally well into three (3) sections of the DR-6 form.
So I made inquiry to one member of the committee that created the form about this problem. I was told to just put it in one of the spots.  So I inquired further as to whether instructions were going to be created for Rhode Island's new DR-6 Statement of Assets and Liabilities Form. Unfortunately, no instructions are anticipated for the form to assist either attorneys or the general public.

Regrettably, this article may raise more questions than it actually answers.  Yet, if anything, it will confirm for you that you are not the only one with concerns about this form and the confusion it creates for attorneys and the general public as well.

If you look closely at the form, there is one thing I am thankful I can clear up for you.  If the intention of the form is to provide calculations for the parties and the Rhode Island Family Court that are reliable, then you cannot merely put an item in one category or section of the form and leave it at that.  The fact is that the form makes numerous calculations when used in its original Excel format.  

If an item is not included in the category or section that the form creators "intended" on this new DR-6 form, then the resulting calculations performed by the DR-6 spreadsheet will be incorrect.  One number might be overly inflated while another might be understated.
 
It would only take two or three items placed in an "unintended" category or section to substantially throw off the resulting calculations in the spreadsheet.  Depending upon how the parties and/or the family court judge relies upon or interprets the DR-6 calculations, this confusion created by the new DR-6 form could prevent settlement between the parties or mislead the court unintentionally into believing the finances of one party are different than they actually are.

Rhode Island's new and improved DR-6 Statement of Assets and Liabilities is more detailed and extensive than ever and has positive possibilities toward resolving family law cases, yet without instructions for this new form, the confusion nevertheless remains.

The New Rhode Island Divorce DR-6 Form: Is it a RI Lawyer's Friend or Foe?

Rhode Island and its divorce lawyers as well as those who intend to represent themselves in Rhode Island’s Family Court are being pulled into the mainstream of modern divorce law. 

Is it my intention as a Rhode Island Family Law lawyer * to confuse you?  Absolutely not.  It’s my intention to call your attention some very important changes that have occurred in the Rhode Island Family Court System that were bound to occur at some point in time.  After all, Rhode Island could not remain the old fashioned, unchanging state it has been for an unlimited duration of time. 

 Effective October 1, 2011, a new DR-6 Statement of Current Assets, Liabilities, Income and Expenses has been created.  Pursuant to Rhode Island Administrative Court Orders 1987-2, 2011-4, and 2011-5, the RI Family Court’s new DR-6 is required at the time of filing Rhode Island divorces, Motions for Temporary Support, Motions for Custody, and Motions for Counsel Fees.

This form is also required from a party who opposes a divorce filing, a Motion for Temporary Support, a Motion for custody, a motion for attorneys’ fees.  The RI Family Court’s new DR-6 form must also be updated and completed in full, signed under oath, and filed with the Court by the filing party or the opposing party if either of them has a financial change of circumstances. 

To be on the safe side you may want to take the position that I have that the degree of significance of the financial change need not need be sizeable.  If you have an addition to or subtraction to your assets, an increase or decrease in your expenses, an increase or decrease in your income, or an increase or decrease in your liabilities, AND that change amounts to even as little as $100, then it is best to be safe and to fill out a new DR-6 Form and update the court on the status of your financial situation.

The purpose of Rhode Island’s new DR-6 Form in the Family Court System provides for substantially more “upfront” disclosure of finances between the parties in a cases where finances are at issue.  This financial form provides both for detailed disclosure of finances for the benefit of both parties but also for the benefit of the Family Court judges involved in the case so they will have access to fundamental information regarding the finances of each party without having to compel a partys’ compliance with additional orders under the threat of contempt. 

The new DR-6 form is shown below.  As you can see it requires extensive voluntary disclosures of your assets, debts, income and liabilities.  These disclosures which go well beyond the DR-6 form previously used by the family court.

Is this a good change?  The answer is clearly debatable.

Why?  Well, it depends upon your perspective.

Let’s assume that Mr. Trump, a very old-fashioned 82 year old Rhode Island gentleman who has amassed significant assets wants to divorce his wife. According to the RI Family Court’s Administrative Orders Mr. Trump must file this new DR-6.  To his shock, Mr. Trump is told by his attorney that he is required to disclose every aspect of his gross income, his expenses, his assets, his business interests, his liabilities, his bank accounts, his investments, his rental incomes and essentially every aspect of his financial life. 

Mr. Trump doesn’t want to provide the information but his attorney explains to him that is required by the Court to file for divorce.  Mr. Trump begins having the information provided to the attorney believing it will only be available to the court. 

Prior to signing the DR-6 under oath Mr. Trump is informed by his divorce lawyer that his financial information will not only be available to the Court but also to his wife and to anyone who reviews his divorce file, including the general public. Mr. Trump refuses to sign the DR-6.  The attorney informs Mr. Trump that without this form the divorce cannot be filed.  Mr. Trump is furious. 

Why does personal and private financial information that would not otherwise be known to the public have to be disclosed to the public in a divorce? 

Mr. Trump is not happy.  He does not understand why he should have to make his private and personal financial information available to the public in order to divorce his wife.  The only thing his lawyer can tell Mr. Trump is that it is a required form for filing a divorce and he can either complete the form or dismiss the idea of filing for divorce.

Do you consider your finances and income private? 

Would you be upset if you were in Mr. Trump’s shoes?

If Mr. and Mrs. Trump signed a pre-marital agreement and they have both already agreed how they are going to resolve their divorce, should Mr. Trump still be required to make such an extensive public disclosure of his finances?

Now let’s change the situation and look at the requirement from a different perspective.

Mr. Johnson has moderate income and he and his wife have fairly well over their 23 year marriage as a result of Mr. Johnson’s self-employment as a subcontractor.  Mr. Johnson is a very shrewd man and he takes care of all the bills and has had complete control of the finances.  Mrs. Johnson hasn’t worked in 18 years and she is very scared about how she is going to survive.  Mr. Johnson files for divorce.

Can you imagine how Mrs. Johnson and her attorney might feel about the new DR-6 form when Mrs. Johnson knows nothing about the finances at all and Mr. Johnson had to fill that form out at the time of filing?  The word “thrilled” might just about summarize it, or in the very least Mrs. Johnson probably feels a little bit relieved when she can see what the financial picture is from Mr. Johnson’s DR-6 form.

As I said, it’s a matter of perspective. 

One thing that certainly needs to be considered is today’s technology.  Would you have concerns about your financial information being a matter of public record?

Is identity theft a concern that you have?  You aren’t the only one.

It’s a concern every person in a divorce should have right now!

However, that’s an article for another day.

I am The Rhode Island Divorce Coach and I’m here to help you!

Give me a call to set up your affordable legal advice or divorce coaching session Now at 401-632-6976.

RI Family Court - The RI Divorce Court's New DR-6 Revised Statement of Assets and Liabilties

Per the Rhode Island Family Court's Chief Judge, Amended Administrative Order 2011-5 has been released regarding the Statement of Assets, Liabilities, Income and Expenses effective October 5, 2011.  This form is now the DR-6 (Revised October 2011) with it's latest revision (to my knowledge) updated as of October 28, 2011.

This Amended Administrative Order of the RI Family Court states as follows:

 

RHODE ISLAND FAMILY COURT

AMENDED ADMINISTRATIVE ORDER  2011-5

STATEMENT OF ASSETS, LIABILITIES, INCOME AND EXPENSES

DR-6 [REVISED OCTOBER 2011]

 

     The DR-6 [Revised October 2011] shall be filed in accordance with Administrative Order 2011-4.  For example:  Domestic Relations Case Flow system requires that "Motions for temporary support, custody or counsel fees shall be accompanied by a supporting affidavit containing a statement of the applicants current assets, liabilities, income and expenses (DR-6 Form Revised 2011)."

    The DR-6 shall be submitted on green colored paper.  Failure to submit the DR-6 on green colored paper will result in the Clerk's Office returning an improperly submitted DR-6 to the attorney of record.

EFFECTIVE DATE

     This order becomes effective October 5, 2011, and shall apply only to those cases filed on or after October 5, 2011.

 

      10-5-11                                                                                    Bedrosian, CJ                     
Date                                                                                   Haiganush R. Bedrosian, Chief Judge 

 

* Discussion and Commentary on the DR-6 Revised October 2011 in future Rhode Island Divorce Tips postings from The Rhode Island Divorce Coach.

One Reason Rhode Island Divorce Lawyers Bill Against Retainers Provided by Divorce Clients?

Rhode Island Divorce lawyers have strayed away from being good-hearted and accepting payment arrangements and smaller retainers from divorce clients. 

Why?

Well, one reason is far from greed.  This story explains one major reason why most Rhode Island divorce lawyers bill against retainers and more and more are asking for larger retainers.

 

* * Attorney Goodheart's Story * * 

Attorney Natalie Goodheart was an experienced Rhode Island divorce lawyer.  When Clementine D. Vorce called Attorney Goodheart and explained her story, Attorney Goodheart was appaulled and entered into an agreement to represent Clementine for roughly a 40% reduced hourly rate.  

Attorney Natalie Goodheart was true to her name and didn't hold Clementine strictly to their written fee arrangement.  Instead, Attorney Goodheart focused on Clementine's needs rather than her own pocket and wasn't sending her a bill every other week despite the mounting hours because Clementine's needs were more important.  

It was not your typical case.  Sydney had filed suit claiming that he and Clementine were married.  Clementine's position was that she wasn't married to Sydney.  Yet Attorney Goodheart believed that Clementine was correct when it clearly appeared that Sydney simply was angry the relationship was over and wanted part of Clementine's assets despite his failure to contribute substantially to those assets during their relationship.

Unfortunately this particular Rhode Island divorce case became more difficult as it continued.  This was not due to Clementine but due to Sydney wanting more and more from Clementine's assets.  

Attorney Goodheart's work hours started mounting up on the case so from time to time she was forced to ask Clementine for a payment against all the hours that hours she was working.

Still, the Rhode Island Divorce attorney kept working for Clementine sometimes without asking for a payment for months despite the increasing hours.  

Finally, Sydney forced the Rhode Island divorce to a trial. Attorney Goodheart warned Clementine that a Rhode Island divorce trial would be costly to prepare for and undergo and could cost between $10,000 and $20,000.

Attorney Goodheart and Clementine had already made several offers to resolve the issues present in the case but they were rejected.  Clementine was understandably fed up.  Clementine informed Attorney Goodheart that she would rather pay her to fight through the Rhode Island divorce trial than to make even one more offer to resolve the case.

Attorney Goodheart prepared extensively for the trial and unlike many cases this was a common law marriage allegation so in the end there would be a winner. 

When the dust cleared Attorney Goodheart had won for Clementine. The Rhode Island Judge found there was no marriage and denied and dismissed Sydney's claims.

Attorney Goodheart's prepared the final bill for her representation at the reduced amount of 60% of her normal fee.  In addition, she decided to offer to write off another $4,000 if Clementine paid the bill in full in 30 days.

Clementine's response was not the positive one Attorney Goodheart expected, especially in light of their "win" at trial.  

Clementine offered to pay Attorney Goodheart 40% of the entire bill as payment in full.  Attorney Goodheart was upset by her client's inability to realize what she was already offering yet she agreed to meet Clementine halfway by writing off approximately 50% of her bill.

Attorney Goodheart was astounded by the response.  Clementine once again offered Attorney Goodheart the same offer after picking apart the Rhode Island Divorce attorney's performance during the case and the trial and clearly indicating that Attorney Goodhearts services were only worth 40% of the entire bill.

In the end, Attorney Goodheart decided that she wasn't about to let that much work go unpaid.  A Notice of Appeal to the Rhode Island Supreme Court was filed and Attorney Goodheart terminated the attorney/client relationship and gave notice that she intended to collect on the entire debt.

This is on reason why Rhode Island Divorce lawyers bill against retainers and are more and more being less "Good-hearted" and requiring higher retainers.  

There are many people who don't pay their divorce lawyers for the good work they do, even when their fees are reduced and the divorce lawyers agree to take a big hit on their fees.  

Several Rhode Island attorneys who had the tendency to be "good-hearted" have shared with me that being "good-hearted" just landed them 3 times more clients that don't pay them than the ones that do and their receivables were huge.  These attorneys lost several times more money than they make without the ability at tax time to reclaim any of their unpaid hours which may be lost forever.  

Many RI divorce lawyers have learned that being good-hearted often leads to bankruptcy because the lawyer needs to be paid and good intentions of clients don't pay very many bills. 

The fact is, many lawyers are not fat cats with condos, summer homes, boats, planes, large bank accounts, etc.....  Some attorneys make much less than clients simply because clients won't pay a good-hearted attorney's bill.

Clients who don't pay their divorce attorneys cause a circular pattern which increases fees and causes rates and retainers to rise.

Perhaps derrogatory jokes about lawyers should end and jokes are more appropriate for the deadbeat clients who cause the polycentric problem of higher retainers and rates that attorneys need to charge to survive.

Yet for those of us who retain an optimistic hope, we are willing to work for a reasonable legal fee for clients who will actually pay our bills.

Authored By:

Christopher A. Pearsall, Attorney-at-Law

Rhode Island's Full-Time Divorce* Lawyer is Now
Rhode Island's Only Divorce and Family Law Coach!!

Discover the Tremendous Benefits You Receive by 

Participating in Family Law Coaching Sessions!

Visit the RhodeIslandDivorceCoach.com

Call (401) 632-6976 Now
to
Schedule Your Low-Cost Rhode Island Divorce* or Family Law* Coaching Session!

Experience the Difference!

Copyright 2000 to Present.  Christopher A. Pearsall, Esquire
 Offering Rhode Island Rhode Island Divorce and Family Law Coaching for a New Millenium!

Note: If this article contains a case scenario with names, dates or amounts, any resemblance any connection to any person or situation now or previously existing is purely accidental, unintentional, and is merely a mistaken creation in the mind of the reader.

* The Rhode Island Supreme Court licenses all attorneys in the general practice of law.  The court does not license or certify any lawyer as an expert or specialist in any particular field of practice.

- - Recommended Websites - -

Pearsall.net | AttorneyPearsall.com | Rhode Island Divorce Tips | ChristopherPearsall.com | GuaranteedWealth.com | Rhode Island Divorce Attorney | Rhode Island Divorce Lawyer | ChrisPearsall.com | LegalScholar.com | Pearsall-Law-Associates.com | Rhode Island Divorce Attorneys | Rhode Island Divorce Lawyers | Rhode Island Divorce Coach  |  RI Divorce Coach | RI Divorce Lawyer on Twitter | Rhode Island Divorce Coach on Twitter | Rhode Island Divorce Lawyer on Facebook.com| Attorney Chris Pearsall at LawGuru.com | Rhode Island Family Law Lawyer - RI Consumer Tips

Rhode Island Marital Settlement Agreements - Approval vs. Non-Approval in RI Family Court!

One goal of any Rhode Island Divorce lawyer in resolving a divorce proceeding at a Nominal Hearing is to insure that the Marital Settlement Agreement of the parties is "approved" by the court.

Approved agreements are essentially validated or "given the stamp of approval" by the Rhode Island Family Court Judge.  To reach the level of court approval the Rhode Island Family Court Judge or Magistrate must have

(1) heard each party in the divorce testify under oath that the Marital Settlement Agreement was reached and entered into (usually signed) by him or her freely and voluntarily;

(2) heard each party in the divorce testify under oath that he or she believes the Marital Settlement Agreement to be a fair and equitable division of the parties' marital estate;

To be "approved" the Rhode Island Family Court Judge or Magistrate must

(A) be convinced that each party has "in fact" entered into the Marital Settlement Agreement freely and voluntarily free of duress, force or other coersion caused by the other party to the divorce; and

(B) be convinced that each party "in fact" believes that the Marital Settlement Agreement is a fair and equitable division of the Marital Estate of the parties; and

(C) review a Marital Settlement Agreement briefly to determine if any glaring issues regarding the minor children of the parties or regarding the parties themselves that may indicate a lack of protection of minor children or demonstrate immediately to a Judge or Magistrate a coersion of either of the parties; and

(D) find that the terms of the Marital Settlement appear to be fair and equitable and freely and voluntarily entered into by the parties based upon both of their testimony and therefore find that the Court "approves" the Marital Settlement Agreement as part of the Rhode Island Divorce Decision.

What is the significance of having your Marital Settlement Agreement "approved" versus an "unapproved" in a RI divorce proceeding?

An "approved" Marital Settlement Agreement is generally not subject to challenge as a valid and enforceable contract between the husband and wife in a divorce proceeding either in the Rhode Island Family Court or any other court with jurisdiction in Rhode Island to enforce contracts of this nature in Rhode Island.  This may often be carried over to other states and courts in those states which have the authority to recognize and enforce such contracts.

An "unapproved agreement" is usually one in which a party presents a Marital Settlement Agreement to the Court but the other party is not present to testify about the agreement and verify that he or she entered into it freely and voluntarily and that he or she considers it a fair and equitable division of the marital estate.  In such instances, without the absent spouses' testimony the court will usually allow the Marital Settlement Agreement to be offered into evidence, it will not approve the agreement because the court can only verify one party's testimony regarding the agreement.

An agreement that is not approved by the Rhode Island Family Court most often happens when the other spouse does not show up for the hearing but expects the other spouse to present the agreement they reached.  This is what I refer to as an "unapproved" because the court will not approve it in the Court's Decision.

 An "unapproved decision" is subject to being attacked as a contract at all.  Therefore, the absent party could deny any voluntary agreement, could deny his or her signature on the document, could refuse to acknowledge any validity of the document.  In essense, the absent party could state that the Marital Settlement Agreement is not a contract at all and therefore is not enforceable in the Rhode Island Family Court or in any other court for that matter.  

By being "unapproved" by the Rhode Island Family Court Judge or Magistrate in the divorce proceeding, the Marital Settlement Agreement may be challenged on any grounds that any contract may be challenged, and it must survive those challenges before most courts will even consider any attempt to enforce the terms contained in the Marital Settlement Agreement.

It is truly important to have Marital Settlement Agreements "approved" in Rhode Island Divorce proceedings so that they will be considered valid contracts and their terms immediately enforceable by the Court from the moment enforcement proceedings are commenced.

Authored By:

Christopher A. Pearsall, Attorney-at-Law

Rhode Island's Full-Time Divorce* Lawyer is Now
Rhode Island's Only Divorce and Family Law Coach!!

Discover the Tremendous Benefits You Receive by 

Participating in Family Law Coaching Sessions!

Visit the RhodeIslandDivorceCoach.com

Call (401) 632-6976 Now
to
Schedule Your Low-Cost Rhode Island Divorce* or Family Law* Coaching Session!

Experience the Difference!

Copyright 2000 to Present.  Christopher A. Pearsall, Esquire
 Offering Rhode Island Rhode Island Divorce and Family Law Coaching for a New Millenium!

Note: If this article contains a case scenario with names, dates or amounts, any resemblance any connection to any person or situation now or previously existing is purely accidental, unintentional, and is merely a mistaken creation in the mind of the reader.

* The Rhode Island Supreme Court licenses all attorneys in the general practice of law.  The court does not license or certify any lawyer as an expert or specialist in any particular field of practice.

- - Recommended Websites - -

Pearsall.net | AttorneyPearsall.com | Rhode Island Divorce Tips | ChristopherPearsall.com | GuaranteedWealth.com | Rhode Island Divorce Attorney | Rhode Island Divorce Lawyer | ChrisPearsall.com | LegalScholar.com | Pearsall-Law-Associates.com | Rhode Island Divorce Attorneys | Rhode Island Divorce Lawyers | Rhode Island Divorce Coach  |  RI Divorce Coach | RI Divorce Lawyer on Twitter | Rhode Island Divorce Coach on Twitter | Rhode Island Divorce Lawyer on Facebook.com| Attorney Chris Pearsall at LawGuru.com | Rhode Island Family Law Lawyer - RI Consumer Tips