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Dogs fighting, 1809 ~ Charles Towne

Reprinted from the Ascot Advisory Services Weekly Update - a weekly newsletter from the Dominican Republic.  Telephone 809-334-5387 or 809-756-1917 Email: info@ascotadvisory.com -  For additional articles and information on Dominican Residency, real estate, investments and related matters go to John's website: http://www.ascotadvisory.com -

The clear truth is that when you leave your personal business up to the government (courts or legal system) and someone else (over priced divorce lawyers) to decide, the only parties that always win are the lawyers and the government.  The lawyer wins his or her fee and the government gets a chance to collect more taxes from 401k plans and other investments that end up getting liquidated in the process.  Many people hire lawyers to make sure that they are "protected" and to have an unemotional third party involved.  The lawyers are not emotionally involved with the other person's spouse, but you can bet the farm they are very emotionally involved about their fee.

Assuming two people can work things out like rational adults, it may make sense then to look "offshore" for their divorce.  Why is this so? For starters, keep in mind that many US states will only grant a divorce after a one-year period.  This is even if both parties approach the divorce
mutually agreeing to it, without any fuss or fanfare.  The government after all thinks they know what is best for you better than you do, even when it comes to your own personal affairs of the heart.

US divorce documents are not only public record, but copies will be sent to dozens of banks, brokerage firms and anyone else who has an interest in knowing about it.  All of your private financial information and your "laundry", no matter how clean or dirty, becomes available to quite a number of people.  This is not to say that you will not be required to show proof of your "offshore" divorce also, but at least you have some control over how much information "gets exposed".  But privacy is not the only benefit of such a divorce.  Time is really the major benefit for most people. Where as you can wait up to one year in the US even you both mutually consent, an "offshore" divorce can be granted often in three days or less.  We know of one European client that was divorced in the morning and remarried in the afternoon (the classic example of jumping from the frying pan into the fire).  But, as a rational free thinking adult, he has just as much right to do what he wishes with his life as anyone else (without the government dictating his personal business).

What are some things to be aware of when seeking your "offshore" divorce?

The US Supreme Court has upheld foreign divorces as being perfectly valid, so you need not worry that your divorce is "no good".  But you must realize that your "offshore" divorce does need to be filed in the US jurisdiction where you were married.  If you think about it, it does make sense.  If you do not file copies of these documents in the jurisdiction where you live, then how can such divorces otherwise be recognized?

This is an important element of why such a divorce is only valid if both parties agree to it.  Some US judges may certainly refuse to recognize such a divorce if one party contests it.  Quite often the judge will claim the plaintiff is trying to circumvent the authority of that US jurisdiction
by going elsewhere.  However, assuming this is not the case, then the foreign divorce may allow both parties to "part-company" quickly and peacefully.

Some foreign jurisdictions do require that both parties also indicate their agreement with respect to the dissolution of property.  However, you do have some control as to how detailed you make this.  If two people wish to indicate something to effect that "all accounts currently in the name
of each person remain as the sole and separate property of each" then this answers the question without getting into personal financial details. Certainly it is beneficial for parties to dissolve of property in a time and fashion that makes both sense financially and with respect to taxation
issues.  For example, two people may want to sell a home but the current real estate market may be such that it would be better to wait an obtain a better price when the market improves.  This may be the case with a variety of investments, including stocks or mutual funds.

The "Por-Vapor" Divorce in the Dominican Republic

Many clients have asked about getting divorced in the Dominican Republic.  To be sure, if this is your interest, you are in company of the rich & famous.  Michael Jackson obtained his divorce in Santo Domingo, as did Mariah Carey as well.  The legislation that permits this special "3 day divorce" was codified into law in 1971, and it is a booming business for local law firms here.  One law firm processes 8 divorces per week for US citizens, and that is just one single law firm.

It should be noted that this special kind of divorce is only available to non-Dominican residents or citizens.  That is to say that there is separate legislation that cover the divorce of a local resident or citizen, and in some cases, clients may in fact prefer to pursue this if they are involved
with a contested divorce action.  However, if getting an uncontested divorced in three days coupled with a mini-Caribbean vacation appeals to you, then the "Por Vapor" divorce may be of interest.

In order to take advantage of this, both parties need to be in agreement, but only one of the two needs to physically visit Santo Domingo for an audience with the judge.  The party not interested in visiting the country may provide a power of attorney to the other spouse who is.  There is of
course some preliminary paperwork that needs to be completed before hand and of course an audience date must be set with the court.  Clients should have worked out all "distribution" matters before any visit to the country is planned.  The judge, as a mere formality, will basically approve the agreement created by both parties.  After the audience with the judge, the divorce is granted and is binding in the "home" jurisdiction provided it is properly filed accordingly.

What is the cost?  We have heard of some US law firms promoting this kind of divorce for clients at a cost of US $ 8,000 or more.  However, the "por vapor" divorce can be completed for US $ 4,500 including airfare and hotel expenses when visiting the Dominican Republic.

With regards to any legal matters, clients should always of course seek proper legal advice as it may pertain to their own jurisdiction.

John Schroder is affiliated with Ascot Advisory Services in Santo Domingo.

This information has been presented as a courtesy to clients and should not be construed as complete legal advice.  Ascot Advisory Services assists clients with offshore incorporation matters, banking, merchant accounts, residency and other matters relating to expatriation.  For more information:

Telephone 809-334-5387 or 809-756-1917
Email:  info@ascotadvisory.com - 
For additional articles and information on-line at John's website:
http://www.ascotadvisory.com -