From the desk of My Collaborative Team President, Edward S. Sachs, ACP

Imagine a couple in their early 60’s coming into your office and telling you that the husband has just been diagnosed with early onset Alzheimers disease.  The doctors tell them that in three to five years he will need full-time care and that he could live for many years with the disease.  Their marital estate is worth about $3 million and based on information they have gathered; the estate will be eaten up by the husband’s needs within ten years.  They have been advised by their accountant that they should consider getting divorced to protect half of the assets for the wife.  Is this a potential Collaborative matter?

We discussed a similar, yet slightly more complicated, fact pattern Friday at Happy Hour.  The biggest takeaway was that this was definitely something that would best be handled in the Collaborative Process.  Most important is to build the right team.  Make sure that you have an estate and gift attorney involved as a neutral.  If the husband has signs of the disease, consider a guardian.  Also make sure you have someone involved with a complete understanding of Medicaid laws in your state. 

The goal of the divorce should be to split the assets sufficient enough to support the wife for the rest of her life.  The husband’s assets should then be placed in a trust, possibly a special needs trust, or other vehicle allowed by Medicaid.  Again, this is where building members of the team are important.  In five years, the husband should then be eligible for Medicaid to cover most, if not all, of his needs.  Trust income can bridge any gaps.

What better place to help this couple then in the Collaborative Process.