The Muddy Waters of Financial Restitution Against Parental Abductors

In federal court, a convicted offender may be ordered to reimburse victims for financial losses incurred due to the offender’s crime. This reimbursement is called “restitution”. Parental International Child Abduction is against the law, however, the provisions of such cases are not crystal clear. Read on to learn more. 

Parental kidnapping on an international level is on the rise, and it has become a serious concern for many. We often wonder whether the law considers it a crime, and the answer is definitely “yes”.

Individual perpetrators may be held responsible for reparations in international criminal procedures, yet experiences to date demonstrate this to be an unlikely avenue for the majority of victims.

Under U.S. law, a left-behind parent whose child has been abducted to the United States can seek reimbursement from the abducting parent for the expenses incurred in seeking the child’s return. 22 U.S.C. §9007(b)(3).

However, there is no clear provision entitling a left-behind parent whose child has been abducted out of the United States to seek reimbursement from the abducting parent for the expenses incurred in seeking the child’s return to his or her home country.

Here’s what you need to know about financial restitution against parental abductors.

Gray Areas of Financial Restitution

Restitution is the practice of holding offenders accountable for the financial losses suffered by victims of their crimes. Restitution may be ordered in both juvenile and criminal courts to compensate victims for out-of-pocket expenses that are the direct result of a crime. When it comes to International Child Abduction cases through The Hague Convention, the Ninth and Tenth Circuits appear to disagree on whether federal law allowing restitution to crime victims can be used to recoup a left-behind parent’s legal expenses.

Examples of Financial Restitution

The Victim and Witness Protection Act of 1982 permits a federal district court to order a criminal defendant to pay restitution to a victim in an amount up to “expenses related to participation in the investigation or prosecution of the offense.” 18 U.S.C. §3663(b)(4). But as you’ll read below, on appeal, the Tenth Circuit overturned the restitution award.

In 2002, U.S. v. Cummings, 281 F.3d 1046,  the defendant’s father was convicted of violating the International Parental Kidnapping Crime Act (IPKCA) by abducting his children from their home in Washington State to Germany. 

The mother who was left behind brought a return action against the father under the Hague Abduction Convention and an action in Washington State for contempt of court for violating a custody order. The father was sentenced to jail time, ordered to pay the mother’s legal fees and expenses, and required to participate in counseling.

The Ninth Circuit affirmed the restitution award, holding that the mother’s civil cases were not “wholly separate” from the government’s prosecution of the father. This was supported by the fact that, by initiating a case under the Hague Convention, the mother had followed the procedure specifically described in the International Parental Kidnapping Crime Act as the preferred “option of first choice” for a left-behind parent.

In 2020, U.S. v. Mobley, 971 F.3d 1187, did not follow the Cummings verdict. In Mobley, the government prosecuted a mother under the International Parental Kidnapping Crime Act (IPKCA) for her abduction of her children from their home in Kansas to Russia. Once she was in Russia, she filed for divorce and custody; the left-behind father then sued for divorce and custody in Kansas. 

The Russia court had given custody to the mother, and the Kansas Court gave custody to the father. The district court found the mother guilty under the IPKCA and ordered restitution to the father of legal fees and expenses that he incurred in connection with both civil cases.

However, on appeal, the Tenth Circuit held that the trial court erred in awarding restitution under 18 U.S.C. §3663 because the expenses incurred were not related to the investigation or prosecution of the mother’s criminal offense. It held that these terms are limited to proceedings related to the government’s investigation or prosecution and those proceedings related to attendance at court related to such matters. 

The evidence showed that while there was no evidence that the government sanctioned or directed the father’s civil proceedings, there was also no evidence that his suit assisted in any way in the criminal prosecution against the mother.

Based on the analysis of the current state of international law, it is clear that the state has positive duties to prevent violations and demonstrate due diligence. But there’s a long way to go.

How Masters Law Group Can Help

There is an increasing trend in favor of enabling individual victims of violations of international humanitarian law to seek reparation directly from the responsible State. However, the water is muddy to say the least. In future cases, the recent codification of international criminal law has significantly influenced the discourse on post-conflict justice, while legal research on post-conflict justice has been inspired by the rapid developments in international justice mechanisms. As a result, much focus has been on the accountability of perpetrators, in particular, in the application of universal jurisdiction.

The family law attorneys at Masters Law Group are highly experienced with international parental child abduction disputes. If you believe your child is at threat of being abducted by a parent, legal guardian, or someone acting on their behalf, contact us today for a consultation.

For more information on our recent Hague Decisions, see here:

A Guide to Divorce and Cryptocurrency

In 2022, cryptocurrencies are playing a big role in divorces. If you’re facing a divorce and lost on how to find, value and split cryptos, here’s what you need to know. 

With the rise in popularity of cryptocurrency over the past few years, it is becoming a hot topic in many divorce cases. When it comes to dividing assets in a divorce, it can be difficult to know what to do with cryptocurrency. While there are many different types of cryptocurrencies, they all operate in fundamentally similar ways: they are digital currencies that can be exchanged for goods and services or other currencies, and many are traded on online exchanges.

This guide will give you a high-level overview of cryptocurrency and explain your options on how to deal with it in a divorce. Let’s take a look.

Cryptocurrency Basics

The rise (and falls) of cryptocurrency has been unlike anything we’ve ever seen. The market is so volatile that some have compared it to the Wild West. And yet, the demand for it seems insatiable. So what is cryptocurrency, and why are people so interested in it?

Cryptocurrency is a virtual or digital currency that can be used like real money as a medium of exchange. It is not a physical token, like a dollar bill, but is similar to an electronic payment system (think of swiping your credit card) as a way to pay for something.

Cryptocurrency “coins” are held in a digital wallet, which can be an online service, a software program, or a personal hard drive among other things. The wallet allows the owner to make secure transactions for goods and services or keep it as a type of investment. Since the coins are not issued by a central authority, like a bank or government, they are theoretically immune to inflation and other government interference.

Cryptocurrency and Taxes

When you sell or transfer cryptocurrency, it is treated as property and capital gains are taxed. You will incur a gain or loss when sold, transferred as payment for goods or services, exchanged with another crypto, and at other various scenarios.

You are required by the IRS to report gains and losses on each transaction even if the gain or loss is not material. The difference between the purchase price and sales/transfer price is what will be taxed.

If the value at the time of sale or transfer is more than the purchase price, you will incur a capital gain. If the value at the time of sale or transfer is less than the purchase price, you will incur a capital loss.

Understanding Cryptocurrency and Divorce

When you are going through a divorce, you will need to provide financial disclosures to your spouse. This includes information about your assets, income, and expenses. Cryptocurrency is considered an asset and not income. As such, it should be listed on your financial disclosures when you are going through the divorce process.

Most cryptocurrency holdings have a current value which is listed when you log into your account. The values listed are based on current exchange rates for that specific cryptocurrency to US dollars. However, values can fluctuate by a significant amount daily so it is important to keep this into consideration when using the value listed on the financial disclosures when dividing property.

How to Determine the Marital Portion of Cryptocurrency in a Divorce

Property division laws vary from state to state. A vast majority of states are equitable distribution states where assets are divided fairly but not always equally.

Illinois has taken steps to protect individuals who have invested in cryptocurrencies by allowing them to be counted as part of their overall net worth during divorce proceedings. In Illinois, all property held by either party is presumed marital property unless it falls under an exception such as being acquired before the marriage, being a gift or an inheritance.

Dividing crypto in Illinois is similar to the division of any other assets. Illinois is not a community property state, which means the court will split assets purchased, converted or appraised throughout the marriage in an equitable manner.

How Masters Law Group Can Help

When it comes to modern-day divorce cases, Masters Law Group has you covered on all things crypto. If you’re facing a divorce and suspect that your spouse is hiding crypto (and don’t know what signs to look out for), you can find that information in our recent blog here. If you have questions about the different types of popularized crypto, you can find that information right here.

Masters Law Group is here to help you through this stressful time. It’s important to consult your attorney as soon as you find any hidden cryptocurrency and discuss everything you know about the assets such as the type of crypto, the date of purchase and its appreciation. Gather any documents and records you may need in order to get your affairs in order.

Our team of attorneys are highly experienced in dealing with Cryptocurrencies in divorce and are here to answer your questions about divorce and digital asset division.

Contact us today for more information, or to schedule a consultation.

 

What are the Defenses to the Hague Convention?

A parent who moves with a child from the child’s home country to another country may face accusations that the move is wrongful. The Hague Abduction Convention is an international agreement to safeguard intercountry adoptions and parental abductions. 

The Hague Convention is a treaty that the United States has joined, along with many other countries. Its purpose is to protect children from the harmful effects of international abduction by a parent.

When one parent applies to the State Court or Federal Court for return of a child who has been taken from a foreign country and brought to the United States, or is wrongfully retained in the United States beyond the agreed-upon time frame of a temporary absence, that parent may assert certain defenses to prevent the return.

The courts can deny the return of an abducted child under six conditions listed in the Convention, including if a child would be at risk of being subjected to physical or psychological harm, or otherwise placed in an intolerable situation.

Fun Fact: Masters Law Group is highly experienced with Hague Convention cases, with clients not only in the Greater Chicagoland area, but also across the United States in Washington, Hawaii and Wisconsin. 

Here’s what you need to know about the defenses to the Hague Convention.

What is the Hague Convention? 

The Hague Convention on Civil Aspects of International Child Abduction, codified as ICARA, allows a parent whose child has been wrongfully removed from or retained in the United States to petition for the child’s return to his or her country of habitual residence.

This treaty was developed by the Hague Conference on October 25, 1980, and went into effect on December 1, 1983. There were two specific goals in mind for Hague Services:

  • Create a means to ensure that judicial and extrajudicial documents to be served abroad can be brought to the notice of the addressee in sufficient time.
  • Improve the organization of mutual judicial assistance.

The removal of a child is “wrongful” whenever it breaches the rights of the person who has custody attributed to them at the time of removal. Even if a parent already has legal custody of a child, the Convention is needed. This is because U.S. court orders are not always recognized in other countries and sovereign nations can’t interfere with each other’s legal systems, judiciaries, or law enforcement. 

Under the Convention on the Civil Aspects of International Child Abduction and the International Child Abduction Remedies Act (ICARA), when a child has been wrongfully removed from his or her home country, the court must order the child to be returned to his or her home country, unless the party removing the child can establish at least one of six narrow affirmative defenses.

Six Defenses of the Hague Convention

Here are the following defenses to claim wrongful removal under the Hague Convention:

Defense 1: That the petitioner (parent seeking the return of the child) was not “actually exercising custody rights at the time of the removal or retention” under Article 13.

Defense 2: That the petitioner “had consented to or acquiesced in the removal or retention” under Article 13.

Defense 3: That more than one year passed from the time of the wrongful removal or retention until the date the petitioner commenced a judicial or administrative proceeding for the return of the child, under Article 12.

Defense 4: That the child is old enough and has a sufficient degree of maturity to knowingly object to being returned to the petitioner and that it is appropriate to heed that objection, under Article 13.

Defense 5: That “there is grave risk that the child’s return would expose the child to physical or psychological harm or otherwise place the child in an intolerable situation,” under Article 13(b), and

Defense 6: That return of the child would subject the child to violation of basic human rights and fundamental freedoms, under Article 20.

It’s important to note, you should make International Custody Agreements & Parenting Time schedules before you relocate your child/children. U.S. Courts will need to determine the best interest of the child before you do so. 

If you believe your child has been wrongfully removed to a country overseas, or if you would like to move your child out of the U.S. you should contact your trusted family law attorney immediately.  Your attorney can explain the proper steps for handling this matter and guide you toward a just outcome.

How Masters Law Group Can Help

Parents face many obstacles when it comes to seeking judicial intervention in the US for the return of their children.  Erin Masters and Anthony Joseph have extensive experience in cases involving international child custody disputes in both courts located in the State of Illinois and the United States federal court system.

Our Family Law Firm has extensive knowledge and experience with The Hague Convention which provides that a parent whose child has been wrongfully removed from or retained in the United States may petition for the child’s return to his or her country of habitual residence. Our clients span across the entire Unites States, from Washington to Wisconsin; so you can rest assured knowing the experienced Masters Law Group attorneys are fighting for you and your family.

Check out our Featured Hague Decisions:

If you are faced with the terrifying scenario of International Parental Child Abduction, contact your trusted Chicago attorneys at Masters Law Group here today to schedule a consultation.

Divorce and Taxes: Filing After a Separation

For those in the process of ending their marriage, there is more to consider than a simple separation of assets. Whether legally separating or divorcing, you could be facing big changes in your individual tax situations— here, Masters Law Group shares information that could help. 

While most Americans are taking a sigh of relief after tax season, if you are separating from your partner, your taxes could need more attention. Much more.

Assets, Taxes and Divorce, OH MY

In the midst of a divorce, tax implications may not be the most pressing issue on your mind. However, filing taxes after you divorce and how you draw up your divorce agreement can make a big difference when it comes to getting a tax return.

The IRS lists four basic filing statuses available for individuals who are divorced or separating:

  • Married filing jointly. On a joint return, married people report their combined income and deduct their combined allowable expenses. For many couples, filing jointly results in a lower tax than filing separately.
  • Married filing separately. If spouses file separate tax returns, they each report only their own income, deductions, and credits on their individual return. Each spouse is responsible only for the tax due on their own return. People should consider whether filing separately or jointly is better for them.
  • Head of household. Some separated people may be eligible to file as head of household if all of these apply:
    • Their spouse didn’t live in their home for the last six months of the year.
    • They paid more than half the cost of keeping up their home for the year.
    • Their home was the main home of their dependent child for more than half the year.
  • Single. Once the final decree of divorce or separate maintenance is issued, a taxpayer will file as single starting for the year it was issued, unless they are eligible to file as head of household or they remarry by the end of the year.

When couples get divorced, they must divide all property and debts. Couples can hire an attorney (separately or jointly) to help prepare for a financial future after divorce. Here are some important things to think about so you can stay on top of your taxes.

Determine Your Filing Status

If you complete your divorce on or before December 31, you cannot file a joint tax return. If the new year starts before your divorce becomes official, the IRS will still recognize you as married and therefore allow you to file a joint return for the previous year. You are also eligible to file a joint return, but if you do not want to, you can choose the married filing separately.

If you are still legally married when filing your tax return, filing jointly may be your best option because you can claim more of a standard deduction by combining incomes with your spouse. The standard deduction is the amount of income that you can use to lower your tax bill. The standard deduction for tax year 2022 is $25,900 for married couples filing jointly, $12,950 for single taxpayers and married individuals filing separately and $19,400 for heads of households.

 In order to file taxes as head of household after a divorce, you must meet all three of the following requirements:

  • The last day of the year is considered the date on which you became unmarried (so you were either single, divorced or legally separated).
  • You paid more than half of the costs associated with keeping up your home for the year.
  • You lived with a qualifying dependent or child for more than half the year.

Updating Your W-4

If you and your spouse have jobs and earn wages, you’ll each need to fill out a W-4. This form tells your employer how much federal income tax to withhold from your paychecks. You’ll also need to split your allowances between both spouses on the W-4, so if you divorce, you may need to recalculate or adjust your withholding allocations. 

Joint filers need to split their W-4 withholding between both spouses, so if you divorce, you may need to recalculate or adjust your allowances.

Alimony payments from divorce or separation agreements that were finalized before Jan. 1, 2019, are still considered an above-the-line deduction when filing taxes. However, as of January 1, 2019, alimony arrangements can no longer be modified. Therefore, if you are the paying spouse in a divorce or separation agreement that was finalized after that date, you cannot deduct alimony payments when calculating your adjusted gross income. Unlike alimony payments, child support payments are not deductible. If you receive child support payments, you do not have to report them as income on your tax return.

Claiming Children as Dependents

If you have children, understanding who can claim them as dependents is important. This will also affect tax credits you can claim when you file your taxes. Parents who claim their children as dependents are known as custodial parents. Custodial parents have the children live with them for more days out of the tax year. Divorce agreements will usually have custodial parents underlined.

If you are not the custodial parents, you cannot claim child and dependent care credits. You also cannot file your taxes as the head of the household. Form 8332 is an IRS-approved document that allows custodial parents to release their claim to the exemption for a dependent child. If you sign Form 8332, you cannot claim the child as your dependent, and you cannot revoke it until the following tax year. In addition, the Trump tax plan eliminated exemptions for dependents in favor of a higher standard deduction.

Final Thoughts

Individuals who change their marital status through a legal separation or divorce must also change their tax filing status. For filing purposes, the IRS generally considers a couple married until they receive their final decree of divorce or separation.

If you’re going through a divorce, it’s necessary to take the proper steps to understand how it will impact your taxes. If you have specific questions about divorce it’s always best to work with an established and experienced family law attorney. 

Masters Law Group understands that divorce is a stressful situation and that our clients want to move on with their lives. As such, we move through settlement negotiations, mediation or litigation with our clients’ assurance and well being in mind.

Whether you are facing a contested divorce, uncontested divorce, or civil union divorce, our firm’s attorneys are ready to skillfully advocate for your position and provide your voice when you need it most. Contact us today to schedule a consultation.

Help Prevent International Parental Abduction with Supervised Visitation

If you are concerned your ex partner is at flight risk overseas with your child, supervised supervision could be beneficial. Here’s what you need to know…

Following a separation or divorce, particularly when relations are acrimonious, parental child abduction cases are an important factor to consider. Child abduction cases—particularly those involving international borders—are complex and extremely time-sensitive and require immediate action.

International child abduction often occurs for several reasons. It is a very frightening experience for parents and children alike, and it can have a profound effect on the lives of everyone involved.

Here is how supervised visitation and the help of the Hague Convention could help reduce international abduction.

What is Supervised Visitation?

When a parent’s fitness is in question, a judge may order supervised visitation. This is generally done when there have been allegations of alcohol or substance abuse or domestic violence. The purpose of supervised visitation is to ensure that the parent maintains contact with the child in a safe and comfortable environment.

Supervised visitation allows a parent to visit with their child only after the child has been taken away from the other parent. The visit may take place at the parent’s home or in a designated facility, such as a child care center. In most cases, the parent who has custody of the child will report to a designated visitation center for visits. In other cases, the judge may arrange for the child to be delivered to the parent’s home. In all cases, the judge will specify who is to supervise these sessions.

These orders are meant to protect the child and may include any of the following requirements:

  • A modification or elimination of the parent’s decision-making responsibilities and/or parenting time
  • Supervision by the Department of Children and Family Services (DCFS)
  • Having an intermediary present during the exchange between parent and child, or taking place in a protected setting
  • Restricting the presence of specified persons while a parent is exercising parenting time with the child
  • Ordering a parent to refrain from possessing or consuming alcohol or drugs during (or right before) parenting time with the child
  • Restricting the presence of certain persons when a parent is spending time with the child
  • Posting a bond to secure the return of the child following the parent’s visit
  • Completing a treatment program for abuse or for any other behavior that is detrimental to the child
  • Any other constraints or conditions that the court deems necessary to provide for the child’s safety or welfare.

The biggest takeaway parents should understand is that supervised visitation is a common tool used to protect children. Parents can still maintain contact with their children, but it also forces them to prove their ability to provide adequate care. Supervised visitation, when combined with the protections provided by the Hague Convention on International Child Abduction, makes it more difficult for parents to abduct internationally.

With the help from your attorney, require supervised visitation of the parent by a visitation center or independent organization until the court finds under Section 153.501 that supervised visitation is no longer necessary.

Hague Convention and What You Should Know

The Hague Convention on the Civil Aspects of International Child Abduction is an international agreement that aims to prevent children from being abducted from their home country. It provides a process through which a parent can seek to have their child returned to their home country.

Several countries around the world have joined an international treaty called the Hague Convention on the Civil Aspects of International Child Abduction. The Hague Conference on Private International Law drafted and concluded this multilateral treaty, which entered into force on December 1, 1983. In accordance with Article 3 of the Treaty, removal or retention of a child is considered wrongful “where it breaches rights of custody attributed to a person, judicial authority or other body at the time of removal or retention.”

Under the Convention, countries can help one another find solutions for difficult cases of international child abduction. This does not rely on a child’s immigration status or nationality; in certain situations, a child may be wrongfully detained in another country and therefore not a resident there. The Central Authority has the ability to do the following:

  • Be the point of contact for parents and children in international child custody cases.
  • Help locate abducted children.
  • Encourage solutions that work for both parents.
  • Submit documents as part of the application are admissible in courts in partner countries.

It is important to remember that immigration status or nationality does not determine whether a child will be returned to his or her habitual residence.

Final Thoughts

If you and your spouse are having a hard time with child custody, supervised visitation may be the best option for you. Ensuring a child’s safety should always be a number one priority for all parties involved. Especially when faced with international borders as part of a custody dispute, the court system can be very involved in resolving custody rights. 

The family law attorneys at Masters Law Group have experience with international child custody (Parenting Time) disputes. If you believe your child is in the process of being abducted by a parent, legal guardian, or someone acting on their behalf, contact us today for a consultation.

For more information on our Hague Decisions, see here: