Website Now Allows People to Crowdfund Their Divorce

Many people assume Separation and Divorce is an expensive endeavor, and it certainly can be when spouses go from paying for one household to paying living expenses at two different households. Add in costs to furnish a new home or apartment, clothing, toys, and other items for children to have in each home, and the expenses add up quickly. A website, Plumfund, has tapped into the recent crowdfunding phenomenon to allow a spouse to raise funds to pay for Separation and Divorce-related expenses

Plumfund, similar to the more popular crowdfunding site Kickstarter, has registries for everything from birthdays and baby showers to veterinary and medical bills and allows anyone to make a registration and seek donations for a particular purpose. It appears Plumfund is the first website to permit registries for expenses related to Divorce and Separation.

Founders Sara and Josh Margulis gainednotoriety in 2014 on the popular ABC television show “Shark Tank” for their website Honeyfund that crowdsources honeymoon and wedding gifts. “Shark” investor Kevin O’Leary made a deal with the couple that made Honeyfund the #1 ranked honeymoon registry on the internet. Given their beginnings as a wedding fund website, it’s ironic that the Margulis’s newest website allows those at the end of a marriage to raise funds to help pay for “new furniture and household items, living expenses, divorce legal fees, unexpected divorce costs… and more….”

218 “plumfunds” currently exist in the Divorce Registry category on Plumfund‘s website, which further explains that those making a donation can specific a specific use for funds, such as the purchase of new furniture or children’s toys, or donations can be made for a general purpose.

While crowdfunding has gained popularity, the Divorce Registry on Plumfund is the second-least used category on the website next to Retirement. It is not surprising that the Divorce Registry is not gaining traction considering Divorce is, for most people, a very private matter and is something that roughly 50% of the United States population will undergo themselves.

Crowdfunding a Divorce or Separation could provide financial assistance but could also complicate and damage a person’s ability to collect Post Separation Support, Alimony, or Child Support. The North Carolina Courts generally impute “gifts from third parties” as income to the recipient for calculation of Post Separation Support, Alimony, and Child Support. If a spouse receives thousands in crowdsourcing, it is very likely those donations would be included as income and are likely to reduce the amount of support he or she may be entitled to receive or the amount he or she may be ordered to pay.

To speak with someone today about your Separation or Divorce, please call our office at (704) 810-1400 to schedule a confidential consultation.

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