AAML NJ Blog

Case Study: How Financial Planning Protected Freda Freshstart During Her Divorce

By Crossover Capital | AAML NJ Gold Sponsor

Divorce is never easy, as there are both emotional and financial implications. For many non-financial spouses, the end of the marriage is also the beginning of managing finances independently (often for the first time in decades). That was the case for Freda Freshstart, a 52-year-old woman navigating divorce after 24 years of marriage.

Freda wasn’t the spouse who handled the money. She had focused on raising their two children and working part-time in an administrative role while her husband built a successful career. As they moved toward divorce, she found herself overwhelmed and unsure how to protect her financial future.

That’s where smart, coordinated financial planning came in.

Identifying What Wasn’t on the Surface

Freda’s spouse was the higher earner and controlled most of their financial accounts, including retirement plans, executive benefits, and stock options. Working alongside her attorney, we dug into past tax returns, pay stubs, and benefit statements, and uncovered:

●      Deferred compensation that hadn’t been initially disclosed

●      Restricted stock units (RSUs) scheduled to vest post-divorce

●      A valuable pension with no lump-sum option

By flagging our findings, Freda’s legal team was able to negotiate with clarity and confidence.

Modeling Her Settlement Options

One of Freda’s biggest questions was:
“Which settlement structure gives me the best shot at long-term stability?”

We modeled multiple scenarios, including:

●      A larger lump sum with no alimony

●      A smaller settlement with lifetime spousal support

●      A blended approach combining up-front cash and structured support

Each model showed projected spending, investment growth, and risk exposure, allowing Freda and her attorney to negotiate based on data, not just emotion.

Considering the Overlooked Details

Beyond the basics, we helped Freda understand and plan for:

●      Healthcare costs, including COBRA vs. marketplace plans

●      Social Security benefits she could eventually claim from her ex-spouse’s record

●      Income planning based on potential part-time work or phased retirement

●      Long-term care needs later in life

These are often the "blind spots" in divorce negotiations, and they can be costly if ignored.

The Outcome

With the attorney using our financial models as a backbone for negotiation, Freda walked away with:

✔   A fair share of retirement and investment assets

✔    Spousal support structured to meet her actual expenses

✔    A roadmap for her financial life post-divorce

✔    Confidence to take control of her money moving forward

Why This Matters

For attorneys, financial projections aren’t just helpful, they’re strategic. They clarify what your client needs not just now, but 10, 20, or 30 years from now.

For clients like Freda, understanding the “what ifs” can transform fear into confidence.

At Crossover Capital, we specialize in helping individuals, especially non-financial spouses, navigate the complexities of divorce with clarity, compassion, and smart strategy. If you’re an attorney looking to strengthen your client’s case with financial expertise, or a client starting your own Fresh start, we’re here to help.

Want to talk through a case like Freda’s? Let’s connect

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Gold Sponsor

Divorce is complex and overwhelming for everyone involved; it is important to be a stable and consistent figure for your children both financially and emotionally. Explore practical strategies to support children’s financial development throughout and following divorce as featured in Family Lawyer Magazine, How Money Messages from Divorced Parents Impact Children, written by Sharon Klein, EVP, President - Family Wealth, Eastern U.S. Region & Marguerite Weese, National Head of Family Office Experience, at Wilmington Trust.

By LEAP Legal Software US | All-In-One Legal Software for All Practice Areas of Law | AAML NJ Silver Sponsor

If you’ve practiced family law in New Jersey for any length of time, you’re all too familiar with the Case Information Statement (CIS). Required in virtually every divorce case, this form is a detailed financial affidavit that provides a snapshot of a client’s past and present financial situation. Judges rely on it to help determine child support, alimony, and equitable distribution, making it one of the most critical documents in a divorce proceeding.

Despite its importance, the CIS can be cumbersome for both family law attorneys and their clients. Due just 20 days after the filing of an answer or appearance, clients often struggle to gather tax returns, pay stubs, and other key financial documents in time. Next, the attorney must review, calculate, and enter the data using the required CIS format, while ensuring accuracy within a structure that can feel restrictive and outdated.

And the work doesn’t stop after the initial submission. As a client’s financial circumstances change over time, you’re required to update the CIS and go through the same manual steps again. Ultimately, the entire process can feel tedious, time-consuming, and inefficient.

The good news? Advances in legal technology and document automation are changing the game, making New Jersey CIS preparation smoother, faster, and more adaptable to you and your clients’ unique needs.

A Smarter Approach: Flexible & Automated CIS

Legal tech and integrated practice management solutions are making CIS preparation far more manageable and efficient. Today, family law attorneys can get access to a smart, customizable, and automated CIS that can streamline the entire process.

Here’s how document automation and flexible formats can transform the way you handle the CIS:

• Auto-Populated Data: Reduce the need to manually re-enter client and financial information across multiple forms. With automation, relevant data is pulled directly from your client’s matter file in your practice management software.
• Faster Updates: Need to make changes? The automated CIS allows you to easily update client and financial details and push them across the CIS instantly.
• Editable Fields: Change the names of labels to best reflect each case’s unique circumstances.
• Adjustable Columns: Expand beyond the two columns in Part D to customize your client’s monthly expenses.
• Additional Lines: Add new lines to the monthly budget and assets and liabilities sections.
• Built-In Calculators: Convert your client’s financial information into required formats with integrated calculators.
• Microsoft Word Integration: Prepare, customize, and automate the CIS within Microsoft Word’s user-friendly software.

Why This Matters for Your Practice

Beyond saving time, document automation can significantly reduce the risk of errors, helping you avoid costly mistakes that could impact your cases. By streamlining CIS preparation, you can free up time to focus on tasks like strategizing with clients, preparing for court, or growing your practice.

And let’s not forget the client experience. A smoother, more efficient CIS process reduces stress and confusion for your clients as they navigate what is likely an already difficult time in their lives.

Turn CIS preparation into a more seamless, efficient process that can benefit both you and your clients. LEAP’s practice management software solution features automated forms and templates for New Jersey legal documents, including the CIS. To learn more about how LEAP can support New Jersey family law firms, visit leap.us/states/new-jersey.

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor 

Carly Nathanson, Senior Investment Advisor at Wilmington Trust explores a powerful shift in the financial landscape as women acquire unprecedented control over wealth. Carly suggests seven foundational steps to empower women to become transformers and take control of their finances in this month’s newsletter, as featured in Family Lawyer Magazine: The New ‘Transformer’: Women with Wealth.

Contact Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com to discuss ways Wilmington Trust can help your clients successfully navigate transition.

By LEAP Legal Software US | All-In-One Legal Software for All Practice Areas of Law | AAML NJ Silver Sponsor

Succeeding in New Jersey's dynamic family law landscape takes more than legal expertise—it calls for the strategic use of advanced technology. To stay ahead, you need modern solutions, including comprehensive legal practice management software designed specifically to streamline operations and boost efficiency.

By adopting innovative, secure tools that combine industry-leading case management, document automation, billing, and legal AI technology, you can work smarter, serve clients better, and maintain a competitive edge.

Simplified Matter Management for Greater Efficiency

Effective case management software is essential for boosting your productivity and efficiency. Centralizing case information and legal documents within a secure, cloud-based system ensures a single, reliable source of truth across all practice areas. You can also leverage pre-built matters and forms specifically designed for family law attorneys in New Jersey, enabling you to create new matters with pre-defined and up-to-date templates.

Cloud-based access allows you to manage cases and collaborate with staff and clients from anywhere, ensuring seamless communication and faster case resolution. Integration with familiar tools like Microsoft 365 further enhances your productivity by combining user-friendly interfaces with powerful automation and document management features.

Streamlined Document Automation and Drafting

Family law requires exceptional precision and efficiency, particularly when drafting critical documents like divorce filings, custody agreements, and protection orders. Legal practice management software with document automation empowers you to quickly and accurately generate matter-specific documents using a comprehensive library of up-to-date, New Jersey-specific forms. These customizable forms can be auto-populated with pre-entered client data, eliminating repetitive data entry and ensuring consistency across all documents.

You can further personalize documents with branding elements like logos and letterheads to maintain a polished, professional appearance. Drafting documents directly within a unified platform streamlines your workflows, reduces administrative tasks, and allows you to focus more on serving your clients. Secure document sharing also allows clients and stakeholders to access information that they need while maintaining confidentiality.

Seamless Billing and Legal Accounting Workflows

Integrated time-tracking features help capture every billable minute—whether working on emails, phone calls, or documents—maximizing revenue and ensuring accurate billing. Built-in legal accounting and billing features simplify complex financial transactions and help ensure compliance with New Jersey regulations and state bar rules. Automated invoice generation directly from case matters streamlines billing, reduces errors, and enables you to produce professional, client-friendly invoices in minutes. 

Integration with leading accounting software like QuickBooks and Xero further simplifies financial management by securely syncing financial data and creating a seamless workflow between case management and back-office accounting. Automated trust accounting tools maintain compliance by generating detailed audit trails for every transaction. Customizable reporting and analytics tools offer valuable insights into your firm's performance.

Powerful Legal AI Technology

Legal AI tools are transforming how family law firms manage daily operations by automating routine tasks and delivering intelligent insights. As more firms integrate this advanced technology into their workflows, it becomes increasingly essential for you to do the same—or risk falling behind your competitors.

One powerful legal AI tool is the AI legal research assistant. It provides instant, answers to complex legal questions—answers you can easily submit to be verified by local attorneys for accuracy. This immediate access to legal knowledge enables you to make faster, well-informed decisions, which is especially critical in time-sensitive family law cases like custody disputes or divorce proceedings.

AI search tools for law firms allow you to quickly locate anything you need within your matters. These tools enable rapid analysis of client files, correspondence, deadlines, and appointments, providing instant insights and timely reminders to minimize the risk of missed deadlines or overlooked details.

Additionally, AI time tracking tools automatically capture every billable minute spent on case-related activities, ensuring that no time is lost to manual entry. These automated tools enhance your profitability by delivering in-depth analytics and reporting. With these valuable insights into your firm's performance, you can make data-driven decisions that improve efficiency and help you maintain a competitive edge.

Enhanced Profitability Through Better Resource Management

In New Jersey’s evolving family law landscape, leveraging technology is no longer optional—it’s essential. LEAP’s all-in-one legal practice management software, with its extensive library of state-specific family law forms, automation features, and AI-driven tools, empowers your firm to increase productivity, reduce overhead, and drive profitability. 

Experience how LEAP’s award-winning solution can help your family law firm stay ahead, deliver exceptional legal services, and get more done in less time than ever. Book a personalized demo today.

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

The high-profile split of Bill and Melinda Gates put in the spotlight the issue of how to divide a divorcing couple’s charitable resources. In their article featured in Family Lawyer Magazine: Divorce and Philanthropy: The Marriage Ends, The Giving Continues, National Director of Family Legacy Strategies Marguerite C. Weese, and Family Legacy Philanthropic Advisor, Alexa Broida, discuss options to separate donor advised funds, private foundations and other charitable vehicle so couples can continue their charitable passions despite the end of a marriage.

Contact Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com to discuss ways Wilmington Trust can help your clients successfully navigate transition.

By LEAP Legal Software | AAML NJ Silver Sponsor

In family law, where cases are often complex and sensitive, quickly creating accurate, high-quality documents is essential for maximizing law firm efficiency. With the right tools, New Jersey family law attorneys can reduce the time spent on drafting and dedicate more energy to client services and practice growth.

Recent innovations in legal practice management software and AI document automation for law firms have revolutionized this process, allowing attorneys to generate high-quality drafts in minutes. These legal AI advancements for document automation are inherently more dynamic than traditional document management systems and more effective when using AI prompts. 

What Are AI Prompts for Family Law Firms?

One of the best features of new generative AI tools is that attorneys can effectively chat with AI for drafting and reiterate guidance until they’re satisfied with the document. However, this process can slow drafting for family law attorneys, so providing an initial, accurate prompt will streamline the creation of documents such as Affidavits, Dispositions, and Briefs to Counsel. An AI prompt is a set of instructions that guide legal AI tools in generating detailed family law documents for a fast, accurate, and automated drafting process.

New Jersey family law firms can apply best practices to create effective AI prompts. First, prompts should be as specific as possible. Defining a response format and uploading templates for AI tools to review and incorporate into results can also be beneficial. With more direction for AI, attorneys can complete drafts more efficiently.

To make this process even easier, it’s best to have AI prompt templates ready for use. By having an AI prompt template designed specifically for family law matters, attorneys can further leverage generative AI tools to make them more powerful than ever. 

The Benefits of AI Prompt Drafting for Family Law Firms

Drafting complex documents can cause New Jersey family law firms to become overwhelmed, leading to backlogs that risk missed deadlines or delay important priorities. The manual entry and re-entry of critical client and case details heighten the likelihood of document errors and inconsistencies. These drafting inefficiencies can drain an attorney's time, limiting opportunities to focus on strategic casework and maintain strong client relationships.

By incorporating AI prompts into your drafting, New Jersey family law firms will boost productivity, save time, and reduce manual tasks when creating documents like the Case Information Statement, Certification of Insurance, and Summons Divorce. This increased efficiency also enhances the quality of client interactions, as attorneys can focus more on advising and strategizing on complex legal issues rather than document drafting and administrative duties.

This efficiency enables attorneys to be more responsive when client and matter details change—a common occurrence in family law. With a few clicks, documents can be quickly and accurately updated without the hassle of lengthy rewrites. Time savings also translate into financial benefits as firms can handle more cases and increase billable hours by developing a more efficient drafting workflow. With AI prompt templates, family law firms can boost both productivity and client satisfaction while upholding the highest standards of accuracy and professionalism.

Maximize Efficiency in Family Law Drafting with LEAP’s AI Prompt Template Library

As the leader in legal AI technology, LEAP has developed an AI prompt template library for New Jersey family law firms. This library provides AI prompt templates with precise instructions that guide legal AI drafting tools in generating detailed family law documents. Attorneys can access this comprehensive library and customize their documents to meet unique family law case requirements.

LEAP’s AI prompts understand the content, context, and legal guidelines of New Jersey family law case details by pulling information directly from the matter. This ensures that AI delivers high-quality drafts tailored to case requirements, enabling efficient document automation.

Make your New Jersey family law practice more efficient with LEAP’s award-winning legal AI tools. LEAP’s expansive AI prompt template library enables family law firms to quickly generate customizable, matter-specific documents that meet industry standards. 

Connect with LEAP and discover how the AI prompt template library empowers law firms to spend less time drafting and more time on impactful and profitable legal work. 

• By Gregory Kohr, Partner, and Noel Capuano, Director  | CBIZ  | AAML NJ Gold Sponsor

  Imagine you and your client have spent countless hours attempting to negotiate a settlement in their matrimonial matter, and FINALLY, a resolution has been reached. Now is a chance to breathe since the hard part is over, right? Unfortunately, that may be far from the case.

  While it may seem that the preparation of the Marital Settlement Agreement (“MSA”) is a straightforward process memorializing the terms that the parties agreed to, the fact is “the devil is in the details.” Choice of terminology, references to specific calculations/methods (or omission of same), and a variety of potential pitfalls can, and have, caused misunderstandings and misinterpretations, landing the parties back to where they started - in litigation. Cases with complex financial issues frequently utilize a forensic accounting expert to bring clarity to the process. In almost all of these cases, leveraging the services of a financial expert is an invaluable but often underutilized resource when preparing the MSA.

  The following are sections of the MSA, but certainly not all, where vague or missing language may lead to unforeseen complications down the road:

   1.     Business Valuation: When one spouse owns an interest in a business, all or part of the business is considered part of the marital estate and may be subject to equitable distribution. In almost all of these instances, a business valuation, whether formal or informal, is necessary for several reasons. First and foremost, while the owner spouse will likely retain the business, the non-recipient spouse needs an understanding of what their equitable "share" of the business is worth to understand what they will receive. The MSA should reference the business value and the value of the asset(s) the non-recipient spouse will receive in lieu of the business interest. The terms should be explicitly referenced in the agreement in order to preclude the parties from having "selective memory" years down the road.

• It should also be noted that some businesses have no value; they provide a job for the owner and nothing more. This does not mean the business should not be referenced in the MSA; instead, it should be noted that 1) the business was considered, but 2) it was determined to have no value and was therefore not considered in determining the marital estate.

   2.     Alimony/Income Determination:

• Careful consideration should be taken when defining "income" for purposes of calculating alimony, and each component should be clearly laid out in the MSA. If one or both parties are W-2 wage earners, determining alimony should be relatively straightforward. The challenge comes when a spouse is self-employed or has a more complex compensation structure.

  If a spouse is self-employed, their income may be derived in the form of various expenses paid through the business, such as auto, personal credit cards, life insurance, etc. (known as perquisites). They may also own the building from which the company operates, giving rise to rental income. All of these economic benefits need to be considered for alimony purposes. Additionally, recognition needs to be given to the fact that the business owner can potentially manipulate their income in the process of what is commonly referred to as "divorce planning." An example would be a sudden decline in revenue that the owner attributes to external factors (competition, economy, etc.) when, in reality, they are simply working less. An accountant is frequently engaged in these cases to determine the business owners’ true economic benefit.

   3.     Equity-Based Compensation:

• This issue comes up so frequently that it deserves further discussion. It is imperative to understand the type of equity-based compensation, how it is awarded/granted, how/when it vests, and how it is ultimately received. We have seen instances where equity-based compensation was defined incorrectly in the MSA, leading to complications when facilitating equitable distribution. Further, it should be noted that the existence of a grant/award of stock options or RSUs does not guarantee receipt of the same, as these forms of equity-based compensation can be subject to both vesting schedules and forfeitures. If the recipient spouse’s employment is terminated prior to vesting, they cannot monetize the awards, and alimony or equitable distribution could be impacted. The MSA should include language that explicitly addresses these potential situations to avoid surprises in the years to come.

• 4.     Tax True-up Calculation:

There are instances where one spouse has an asset that cannot be easily liquidated or divided for equitable distribution. In those cases, the non-asset-owning spouse will likely have to "ride along" until the asset is disposed of. When this occurs, there is often a tax consequence due to the owner spouse reporting pass-through taxable income. This gives rise to an inequity in that the asset-owning spouse will be responsible for 100% of the tax obligation for an asset that was to be divided as part of equitable distribution. Language is necessary in the MSA to lay out how a tax true-up will be calculated. The language should be detailed and specific to avoid misinterpretation, and the non-asset-owning spouse's personal tax preparer can verify the calculations are correct. Utilizing your financial expert will make this process easier for counsel and the parties to understand.

While accountants are often involved in determining business value and income, their experience and familiarity with the case can be a valuable resource when drafting the MSA and minimizing the potential for post-judgment disputes in the future.

By Wilmington Trust | Leading provider of Investment Management and Financial Advisory Services | AAML NJ Bronze Sponsor

Sharon L. Klein, EVP, President-Family Wealth, Eastern U.S. Region, moderates a roundtable discussion with three American Academy of Matrimonial Lawyers past presidents: Alton Abramowitz, Marlene Eskind Moses, and John Slowiaczek. In this 3-part roundtable discussion, the experienced family lawyers discuss their thoughts on the so-called “Wealth Shock:” How volatile stock & real estate markets, as well as effects of Covid, continue to impact high-asset divorce settlements.

 

Watch the 3-part roundtable discussion: Divorce (wilmingtontrust.com)

Contact Sharon L. Klein, Head of Wilmington Trust’s National Divorce Advisory Practice at 212-415-0531 or sklein@wilmingtontrust.com to discuss ways Wilmington Trust can help your clients successfully navigate transition.

By: Soberlink | AAML NJ Bronze Sponsor

5 Most Common Issues Family Law Attorneys Should Avoid with Alcohol Monitoring

Implementing alcohol monitoring in family law cases can be challenging, as each case requires specific protocols to ensure effectiveness. Avoiding common pitfalls can prevent unintended consequences that impact both the client and the family dynamic. Here are the top four areas that family law attorneys should take care of.

1. Selecting Inadequate Technology and Support

Choosing reliable alcohol monitoring technology is essential for consistent, court-admissible results. Traditional methods, like random lab tests, fail to offer real-time data, creating gaps in monitoring. For optimal results, attorneys should prioritize tools with real-time reporting, facial recognition, and tamper detection—features that make systems like Soberlink effective for child custody cases. Ensuring that support services are available for questions or court appearances can also be crucial to successful monitoring.

2. Setting Incorrect Testing Schedules and Frequencies

Improper testing schedules can result in missed alcohol consumption. Ideally, monitoring should occur 3-4 times per day, with tests spaced no more than 8-10 hours apart to detect overnight drinking. Every case has unique demands; thus, testing schedules should be customized. Overloading a parent with unnecessary tests can be overwhelming and counterproductive, so attorneys should create reasonable schedules tailored to each client’s circumstances. Soberlink offers multiple programs that allow for either limited parenting-time tests or consistent daily monitoring.

3. Imposing Unrealistic Protocols Outside System Capabilities

Attorneys may inadvertently set clients up for failure by requesting monitoring protocols outside the system’s capabilities. For instance, Soberlink’s Level 2 Program allows up to four tests daily within specific time windows, with a built-in, two-hour test window flexibility. Customizing testing windows beyond the system’s design can create unrealistic expectations and noncompliance, which could unfairly affect the parent. Attorneys should work within the monitoring system’s framework to avoid placing undue strain on clients.

4. Excessive Penalties for Missed Tests

Assigning strict penalties for every missed test can create unnecessary tension and disrupt family interactions. Missed tests should be considered thoughtfully, as there are often valid reasons for a delay in submitting a test.

Considering Missed Tests in Context:

• Defining a Missed Test: A Missed Test means a scheduled test wasn’t completed within the allowed timeframe, usually a two-hour window. In Soberlink’s Level 2 - Daily Testing Program, this results in a Missed Test with a yellow notification on the reports, while in the Level 1 - Parenting Time Only Program, the parents will need to document the missed tests.
  

• Reasons for Missed Tests: Missed tests can occur due to common situations, such as leaving the device behind, interruptions from daily responsibilities, or unexpected events.
  

• Adaptation and Communication: Rather than issuing immediate consequences, Missed Tests should lead to a conversation to adjust the schedule as needed. This approach can help refine the monitoring plan to better align with the person’s daily routine.
  

• Prioritizing Family Stability: It’s essential to foster a positive environment for everyone involved. Excessive penalties can create strain, whereas open discussions help families stay cohesive and accountable. A thoughtful approach centers on the child’s well-being while ensuring all parties feel supported.

Note: In Soberlink’s Level 1 - Parenting Time Only Program, there are no missed tests as the schedule relies on shared tools managed by the family rather than being managed by Soberlink’s system.

5. Underestimating the Necessary Monitoring Duration

Determining the right duration for alcohol monitoring is essential to establish a pattern of sobriety. For individuals with an Alcohol Use Disorder (AUD), experts recommend at least one year of monitoring to demonstrate sustained sobriety. Even those without a formal diagnosis benefit from a 6-12 month monitoring period, providing sufficient time to confirm reliable sobriety patterns. Setting an appropriate duration supports a safe environment for the child and helps ensure long-term stability for all parties.

Conclusion

By selecting the right technology, establishing realistic testing protocols, setting appropriate schedules, and committing to a sufficient monitoring duration, family law attorneys can effectively support a safe and stable environment for children involved in custody cases. Avoiding these common pitfalls not only promotes accountability but also fosters a balanced approach that considers the needs of both the child and the parent. Thoughtful alcohol monitoring practices help safeguard families and ensure that court-mandated sobriety requirements are met with integrity and fairness.