Tag: Spousal Support

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Finding the Silver Lining of Divorce

When we’re little kids we imagine finding our prince or princess and riding off into the sunset that is “happily ever after.” We never think that “happily ever after” will end in divorce. Yet, for a lot of people, that’s exactly where their story ends up.

 

Finding the Silver Lining of Divorce

It goes without saying that divorce is a difficult process. Whether or not there are kids involved, a number of thing need to be worked out: child custody arrangements, child support, spousal support, marital property division. A family law attorney will be able to help you with these aspects of ending a marriage. But you’ll also need help working through the tougher parts of ending a marriage: emotionally tiring and stressful aspects of ending a mrriage. It not only changes your entire lifestyle, it changes you. If you can step back, you might just realize how it changes you in a good way. Here are some positive aspects of a divorce that you may want to consider. In the end, you might just be grateful for the little things that you learned from going through one of the hardest processes you could go through.

You, After Divorce

Maturity
Sure, you have to legally be an adult before you can get married, but that doesn’t make you mature. If you had to take a maturity test before tying the knot, chances are marriage wouldn’t even exist. In truth, we often enter marriage still in a childlike state due to the faith we’ve put into the idea of “soul mates” and the fairy-tale romances we’ve been told that end in happily ever after. We might have been blind to the fact that marriage requires a whole ton of effort, and on your part, not the part of a fairy godmother. There’s also a good chance we never set down the wounds of our childhood. Those patterns that we picked up as children (yeah, those ones we never dealt with) all get taken along with us, becoming patterns that impact our marriages and adulthood.

Divorce is like the evil step-queen, yelling in your tear-streamed face. She’s not going to let you go on being the prince or princess that you thought you were. You’re going to have to create some magic of your own, on your own, perhaps for the very first time in your life.

Confidence After Divorce

Divorce can knock your confidence level down to zilch. You’re probably feeling pretty defeated because you weren’t able to hold your marriage together. And if infidelity played a part, then you’re also wondering where you fell short and why your ex-spouse decided to look elsewhere. All that, plus the idea that the whole dating scene has completely changed and now you have to get back out into, can lower your confidence level to below zilch. It’s terrible. But that’s only the first half of the story. Here’s when you re-write the second half.

When you successfully complete something that in your mind you just knew you could not do, you gain confidence. Having to re-frame your assumptions about your weaknesses and limitations, forces you to find a way to believe in yourself. Facing your fears and surviving gives you strength. And after battling through opposition you can emerge, sure, bruised and battered, but knowing that you didn’t give up.

Perspective
Yup, it’s true, hindsight is 20/20. You have to walk through something, get a far way ahead of it, and only then can you look back and see just how important that process was. At that point you can see the beginning, the middle, and the end, and how that end is so clear and empty of emotional and clutter. Take this new clarity and run with it. That perspective can give you amazing information you need to change your own behaviors and to improve your future relationships.

Gratitude After Divorce

After you lose everything, you take nothing for granted. Divorce can be like losing everything:  past memories, your present marriage, and future dreams. Let that be your determination to survive. But this is also a time to lean on friends and family that stepped up and stood by. They will lift you up, even when you can’t lift yourself. Be grateful for them, and try to show them that you are. If not now, then try to later.

Empathy
When you have felt pain, you honor and respect that pain in others. Divorce can make you more empathetic towards people facing any form of loss. You will move towards acceptance and forgiveness of your situation and your ex. And with this movement will come the ability to see things from other people’s viewpoints, making you a better friend, and a better person to be in a relationship with (down the line, when you are ready for one).

Divorce wipes away the ego that believes it’s shameful to ask for help. After you admonish this, you will be able to accept help for yourself, and then be able to offer help to others who are in need.

Responsibility
It’s easy to blame your ex, to place the responsibility for the divorce in his or her hands. We also might realize that all too often we have looked to them to provide happiness, or support for making decisions. This interdependency ends with divorce. It’s good to be interdependent, but divorce requires that you learn to be independent. You’re going to be steering this ship on your own. You’re going to have to be responsible for your own things now: happiness, support, etc. Let this empower you though, rather than make you feel lost or scared. You’re completely in control now. You can change. It’s your life now.

Humility

Divorce teaches us that no matter how much we want something to be true, we can’t force it into being. All those choice you made have consequences. And maybe now you are being forced to see them. Sure, you might have said “divorce will never happen to me,” but now it has. You’re going to have to admit that it can happen to anyone. Let this “slap” of reality force you to embrace acceptance while also redefining expectations. You’re not immune to anything.

Fortitude
Divorce can be a longer process with more setbacks than you had ever imagined before you took that first step. Just when you think that the worst is behind you, BAM! It hits you again. Two steps forward, one step back has never been more true. It takes grit to survive.

Awareness
Divorce can be a wake-up call. Often times people realize they were living in a kind of “auto-pilot” mode when they said their “I dos.” The clarity and awareness you have after saying your “I Un-dos” might provide you with a sense of awareness that wasn’t there before. A lot of people turn to meditation and yoga during divorce because it settles the mind to allow for awareness. This mindfulness and consciousness will be helpful moving forward in your new life.

Ingenuity
Divorce is also a way to test your abilities… all of them. Your negotiating skills, your financial skills, your balanced budgeting skills, co-parenting abilities. You are the only problem solver now. You will need to work out how to afford your rent on a portion of the budget you once had. You will also need to learn how to co-parent, potentially with an ex you hate (for now). But the more you are placed in these new positions, the better you will become at those tasks.

Wisdom from Divorce
Divorce can be an opportunity for reflection and analysis. You are now raw and ready to learn new ways of doing things, in addition to just learning new ways to move on and cope.

Working with Professionals During and After Divorce

Therapist

There are so many emotional things that you will need to work through when you decide to end your marriage. You might want to consider reaching out to a therapist or life-coach to help you through the emotional aspects. They can coach you on coping techniques and skills that will help you come to terms with your divorce.

A Family Law Attorney

But when it comes to the actual legal process of a divorce, you’ll want to work with a skilled family law attorney There are a number of things that need to be considered during a divorce: child support, spousal support, marital property division, and other things. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce, child custody determinations, setting up a co-parenting agreement, dividing marital property, and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

 

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Categories
Divorce Family Law Spousal Support

Understanding Spousal Support

If you are getting divorced, and are seeking spousal support, or are expected to pay spousal support payments, there are some important things you’ll want to understand. A family law attorney will be able to walk you through the specifics of your case, but here we’ll provide you with a general overview of aspects of spousal support including the awarding of spousal support, tax laws, and what can happen if spousal support payments are not made.

Defining Spousal Support

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Spousal support (also known as alimony) is financial assistance that is only available to those who were legally married. It recognizes a partner’s contribution to the marriage and its goal is to help the recipient achieve financial independence. Rules regarding alimony vary state by state.

Calculating Spousal Support

When a court presides over a spousal support hearing, it weighs a number of factors including: the length of the marriage, the needs of each spouse, the standard of living that was created and maintained during the marriage, any assets, the age of the spouses, numerous other factors, and state specific laws. Your divorce attorney will build your case for spousal support based on your own specific circumstances.

Length of Spousal Support

The duration of spousal support payments is set by the court after it weighs the arguments that have been made. Typically, the length of payments lasts for half the length of a less than 10 years long marriage. For example: a marriage of six years means the spousal support payments will need to be paid for three years.

In longer marriages, a court might not set an a duration for the alimony payments. In that case, it is up to your divorce attorney to prove your side of the case and the duration. You should work with your divorce attorney to establish your side, regardless of if you are paying or receiving payments, and also determine the amount of time you seek. The court will then listen to both arguments, and using common law, decide upon the duration.

Permanent or Lifetime Spousal Support

“Permanent” or “Lifetime” spousal support means support will be paid to the recipient until the death of the one paying, or sometimes until the recipient remarries. While remarriage has been a reason for the end of spousal support payments, that is not always the case, and sometimes a court will rule that a remarriage does not mean the end of the support payments.

As women became a stronger component of the workforce, permanent support began to be rewarded less and less. And now courts rarely award permanent support. One appellate court stated:

“As recognized by our Supreme Court, the public policy of this state has progressed from one which entitled some women to lifelong alimony as a condition of the marital contract of support, to one that entitles either spouse to post-dissolution support for only so long as is necessary to become self-supporting.”

A court will usually require the higher earner, regardless of if they are husband or wife, to assist the lower earner with maintaining the standard of living, at least for a period of time.

Changes in Financial Situation

The duration of spousal support payments can also be dependent on if the spouse receiving the support has a change in their financial standing (as the result of beginning a new job or higher pay). The purpose of spousal support is to ensure financial safeguards for the person receiving them. Therefore, if they no longer need to receive money to help them maintain financial footing, then a court can rule that they are able to support themselves and no longer need the support they have been receiving.

Tax Strategy During Divorce Decisions

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If you’re paying or receiving spousal support there are some basic tax laws you need to know and remember both during your divorce proceedings and after.

Bottom line: If you receive spousal support, you must declare it as taxable income . If you’re paying spousal support, you can deduct it. This differs from child support, as child support is not taxable and not deductible.

During the Ruling

You’ll want to remember this rule while you and your spouse are working out alimony agreements, as it does impact your bottom line when it comes to your finances. The final ruling and decision should reflect the intentions you have going into tax time. You might decide to have the paying spouse agree to pay the recipient spouse’s tax liability. A family law attorney should advise you on this during your alimony hearing. 

A Helpful Tip

If you’re able to negotiate with your spouse, it might be helpful to try and work out the best tax deal that works for both of you. If you’re in the middle of a litigious divorce and alimony decision, this type of negotiation may be difficult, but it might save you a lot of time and headaches around tax season.

If you receive alimony: plan for the potential tax impact. Your former spouse is not be able to withhold taxes from the support check you receive. That means you will need to account for that when you calculate how much you’ll be paying in taxes. For this reason you might want to consider paying quarterly taxes. That will save you from getting hit at one time come April 15th.

If you are paying alimony: remember you are able to deduct the support payments on your income tax return, but not child support or distribution of property. The IRS often scrutinizes payments made during the first three years you make payments to ensure that you have not disguised your alimony payments as property distribution or other post divorce

Family Law Attorney

Working with a lawyer that understands the ins and outs of the tax repercussions of divorce can help mitigate the confusion both during the agreement hearings and after (once you are actually making the payments).

Falling Behind on Alimony

It’s not an uncommon story: a man or woman falls behind on their alimony payments. This can happen for a number of reasons: loss of job, inability to get a job, or negligence. If you’re the one not receiving the payments, it can have a damaging effect on your entire life. Here’s some information on if your ex fails to make alimony payments.

What’s the Reason?

If you are not receiving court-ordered alimony payments try to find out why. Did your ex recently lose his or her job? Were they injured and are no unable to work? If this is the case, you might want to consider working out a plan to make up lost payments or to make future payments. Working with an attorney on something like this is a great idea as they will be able to provide an unbiased opinion on the situation. You will also have legal proof should you need to take the un-paying spouse to court.

Avoiding Alimony Payment

If your spouse is able to make the payments, and has not suffered a loss or job, or an injury that is keeping them from work, and rather just avoiding their court-ordered obligation, you’ll need to seek legal help. You will need to file a motion with the court asking a judge to order your spouse to pay any past-due past payments. This motion will also include an agreement to keep up with the future payments. You’ll want to work with an experienced family law attorney to draft a persuasive legal motion for this. An attorney will also being able to serve as your representative in court.

Consequences of Not Paying Alimony

Courts have a number punishments or fines for delinquent spouses. While the laws governing the consequences vary from state to state, generally a court will allow the following:

  • Holding a spouse in contempt. This can lead to fines and possible jail time.
  • Withholding income from the spouse. During this the delinquent spouse’s employer is required to withhold the spousal support amount from the delinquent spouse’s paycheck. That money is then sent directly to the spouse that is supposed to be receiving spousal support.
  • Writ of Execution = when a judge awards a portion of the delinquent spouse’s bank accounts and other assets to the receiver spouse.
  • If the amount owed is substantial, you are able to ask the court to issue a money judgment for the total amount owed along with interest.

Contact a family law attorney that can help you file a legal action to enforce alimony. A lawyer will be able to ensure you receive the money that is owed to you.

Working with a Family Law Attorney

There are a number of things that need to be considered during a divorce and during a spousal support decision. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

 

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Categories
Divorce Family Law High Net-Worth Divorce Mediation Spousal Support

A New Tax Law May Spur More Divorces

A new tax law could spur more couples to divorce this year. Family law attorneys are encouraging couples that are considering divorce to do it in 2018 before a deduction for alimony payments gets wiped out next year under the Tax Cuts and Jobs Act.

A New Tax Law May Spur More Divorces

The deduction will substantially reduce the cost of alimony payments. For example, those in the highest income-tax bracket will find that for every dollar they pay to support a former spouse it will actually cost them a little more than 60 cents.

Divorce lawyers are predicting the tax law will cause more arguments between divorcing spouses.

Alimony has been deductible since it was added to the tax code in 1942. Lawmakers at the time felt that it was unfair to tax people on the alimony they paid when the money was not available for them to spend.

The deduction is a big deal to splitting couples because if someone who earns, say, $250,000 agrees to pay $4,000 per month, it really costs the person paying alimony about $3,000 after taking the deduction into account.

The tax law change will disproportionately hurt women who tend to earn less and are thus more likely to be on the receiving end of alimony payments.

What is Alimony / Spousal Support?

Alimony, also known as “spousal support,” is one of the last aspects of a divorce to be decided, often falling behind child support and custody and marital property division, but it is just as important.

Alimony, often called “spousal support” is when one spouse pays the other in order to help that spouse maintain the same financial standing as was experienced during the marriage. A court will require the higher earning spouse to assist the lower in maintaining that standard of lifestyle that was achieved during the marriage.

Awarding Spousal Support

In California a judge can award temporary (“pendente lite”) support either during the divorce proceedings, or when the divorce is declared final. Typically these payments are made from one spouse to the other in a specified amount for a predetermined period of time. But support can also be paid in a single lump-sum payment. In collaborative process divorce agreements, spouses often come to agreement on the terms and conditions of support payments. As long as this agreement meets legal requirements, a court will uphold an agreement. This is the case even if the agreement provides for a complete waiver of support to the lower-earning spouse.

Duration of Spousal Support

In California, the duration of spousal support agreements are often tied to the length of the marriage. A general rule of thumb is that for a marriage of less than 10 years, a court will not order support payments be made for longer than half the length of the marriage. But if a marriage has lasted 10 years or longer, a court typically will not set a definite termination date for support. Both spouses are able to request modifications to the spousal support agreement indefinitely, unless a termination date has specifically been agreed, or if the court expressly terminates the support at a later hearing.

Awarding Permanent Support

Sometimes support is labeled “permanent” support, but the actual awarding of permanent support lasting for the remainder of a lifetime is increasingly rare, even for marriages that last over 10 years. Family law courts in California tend to require a spouse seeking support to make an effort to become self-supporting. A spouse that makes claims that they are unable to work, or unable to become fully employed, is required to support the claim with evidence. Often times this means having a  vocational evaluation. And for long term support orders, the support often gradually reduces over time by a nominal amount. Permanent support is usually only awarded to spouses that are unable to become self-supporting due to age or disability.

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Calculation of Spousal Support

California law rules that the purpose of awarding temporary spousal support is for preserving the financial status quo, or “standard of living during the marriage” to the greatest extent possible. After a court evaluates and considers the needs of the spouse requesting the support, as well as the ability of the other spouses ability to pay, it can order the temporary spousal support in any amount. Typically, a court will use a common formula for calculating temporary support. One example of this formula is the Santa Clara County formula. This formula comes up with a figure through subtracting 50% of the lower-earner’s net income from 40% of the higher earner’s, and then makes adjustments for tax consequences and child support payments. The California Department of Child Support provides a support calculator for parents of dependent children looking to get a rough estimate of what temporary spousal support payments might look like along with child support payments. A family law attorney will also be able to provide you with a rough idea of what your payments will look like.

Standard of Living

Spousal support’s main purpose is to assist a supported spouse in maintaining a standard of living that was close to that which was attained during the marriage. But the goal is for the spouse receiving the payments to eventually become self-supporting to the greatest extent possible. A court will take the following into account:

  • marketable skills of the supported spouse,
  • job market for those skills,
  • any time or expense the supported spouse will need to acquire education or training for employment or enhanced employability, and
  • the extent to which periods of unemployment (due to domestic duties) during the marriage have impaired the supported spouse’s present or future earning capacity.

The court will also consider any other factors, including:

  • extent to which the supported spouse contributed to the other spouse’s attainment of education, training, professional licensing or career advancement (this can also mean the extent to which the supported spouse provided and maintained home life while the other spouse was advancing his or her career)
  • ability of the supporting spouse to pay support. A court will take into account earning capacity, earned and unearned income, assets, and standard of living,
  • needs of each party based on what the marital standard of living was,
  • each spouse’s obligations and assets, including separate property,
  • duration of the marriage,
  • ability of a spouse who is also a custodial parent to engage in employment without interfering with the interests of dependent children,
  • each spouse’s age and health,
  • documented history of domestic violence by either spouse*,
  • immediate and specific tax consequences to each spouse (often times tax agreements are figured out during the awarding of spousal support and child support agreements),
  • balance of the hardships to each spouse, and
  • the goal that the supported spouse will be self-supporting within a reasonable period of time. This follows a general rule of thumb presumed to be one-half the length of a marriage (unless the marriage was longer than 10 years).

*California courts do not ordinarily consider conduct when making spousal support determinations. But often times, a court will not award support to a spouse that has a proven history of violence toward the other spouse.

Modification or Termination of Spousal Support

Either spouse can request modification or termination of periodic payments due to a material change in circumstances, unless it has been specified in the spousal support agreement. Absent a written agreement stating otherwise, spousal support terminates on the death of either spouse, or on the remarriage of the recipient.

Cohabitation

Cohabitation is an arrangement where two people who are not married live together in an emotionally and/or sexually intimate relationship on a long-term or permanent basis. Typically, this term refers to unmarried couples who live together without formally registering their relation as a marriage. This type of arrangement can affect a spousal support agreement, as it is often deemed that a person living with a new partner has a reduced need for support.

Depending on your state:

• Your spousal support can be reduced or terminated upon cohabitation only if the cohabitation significantly decreases a recipient’s need for support.

• Your spousal support will be terminated regardless of whether the recipient’s economic need is diminished by cohabiting.

• Your spousal support will not be affected should the recipient of the support begin living with someone else.

You’ll want to work with a family law attorney in your state to ensure you understand the rules about cohabitation and spousal support payments.

Tax Effects

Periodic spousal support payments are typically taxable for the recipient and tax-deductible by the payer. During a divorce agreement couples often create their own settlement agreements to take advantage of this situation. Payments are structured to create the best possible tax scenario for both spouses. If there are children involved in the divorce, child support payments and their tax exemptions are also considered to ensure that both spouses receive the best tax benefits possible. There are usually no tax consequences for single lump-sum support payments.

Spousal Support Help

Working with a family law attorney can help you understand the process of awarding and receiving spousal support. Many of the laws are specific to the state you will be divorcing in, so it’s important you work with a lawyer that is knowledgeable about your state’s laws.

A Family Law Attorney

But when it comes to the actual legal process of a divorce, you’ll want to work with a skilled family law attorney There are a number of things that need to be considered during a divorce: child support, spousal support, marital property division, and other things. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce, child custody determinations, setting up a co-parenting agreement, dividing marital property, and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

 

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Categories
Child Support Divorce Family Law High Net-Worth Divorce Spousal Support

Ewan McGregor to Pay Spousal Support

Actor Ewan McGregor will be paying spousal support to his estranged wife Eve Mavrakis. The actor filed for divorce on January 19, citing irreconcilable differences. The two formally separated May 28, 2017.

Ewan McGregor to Pay Spousal Support

McGregor will be paying spousal support and has also requested joint legal and physical custody of their minor children Jamyan, 16; Esther, 16; and Anouk, 6. The two also share an adult daughter named Clara.

Paying Spousal Support

Alimony, also known as “spousal support,” is when one spouse pays the other in order to help that spouse maintain the same financial standing as was experienced during the marriage. A court will require the higher earning spouse to assist the lower in maintaining that standard of lifestyle that was achieved during the marriage.

Awarding Spousal Support

In California, a judge can award temporary (“pendente lite”) support either during the divorce proceedings, or when the divorce is declared final. Typically these payments are made from one spouse to the other in a specified amount for a predetermined period of time. But support can also be paid in a single lump-sum payment. In collaborative process divorce agreements, spouses often come to an agreement on the terms and conditions of support payments. As long as this agreement meets legal requirements, a court will uphold an agreement. This is the case even if the agreement provides for a complete waiver of support to the lower-earning spouse.

Duration of Spousal Support

In California, the duration of spousal support agreements are often tied to the length of the marriage. A general rule of thumb is that for a marriage of less than 10 years, a court will not order support payments be made for longer than half the length of the marriage. But if a marriage has lasted 10 years or longer, a court typically will not set a definite termination date for support. Both spouses are able to request modifications to the spousal support agreement indefinitely, unless a termination date has specifically been agreed, or if the court expressly terminates the support at a later hearing.

Awarding Permanent Support

Sometimes support is labeled “permanent” support, but the actual awarding of permanent support lasting for the remainder of a lifetime is increasingly rare, even for marriages that last over 10 years. Family law courts in California tend to require a spouse seeking support to make an effort to become self-supporting. A spouse that makes claims that they are unable to work, or unable to become fully employed, is required to support the claim with evidence. Often times this means having a  vocational evaluation. And for long term support orders, the support often gradually reduces over time by a nominal amount. Permanent support is usually only awarded to spouses that are unable to become self-supporting due to age or disability.

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Calculation of Spousal Support

California law rules that the purpose of awarding temporary spousal support is for preserving the financial status quo, or “standard of living during the marriage” to the greatest extent possible. After a court evaluates and considers the needs of the spouse requesting the support, as well as the ability of the other spouses ability to pay, it can order the temporary spousal support in any amount. Typically, a court will use a common formula for calculating temporary support. One example of this formula is the Santa Clara County formula. This formula comes up with a figure through subtracting 50% of the lower-earner’s net income from 40% of the higher earner’s, and then makes adjustments for tax consequences and child support payments. The California Department of Child Support provides a support calculator for parents of dependent children looking to get a rough estimate of what temporary spousal support payments might look like along with child support payments. A family law attorney will also be able to provide you with a rough idea of what your payments will look like.

Standard of Living

Spousal support’s main purpose is to assist a supported spouse in maintaining a standard of living that was close to that which was attained during the marriage. But the goal is for the spouse receiving the payments to eventually become self-supporting to the greatest extent possible. A court will take the following into account:

  • marketable skills of the supported spouse,
  • job market for those skills,
  • any time or expense the supported spouse will need to acquire education or training for employment or enhanced employability, and
  • the extent to which periods of unemployment (due to domestic duties) during the marriage have impaired the supported spouse’s present or future earning capacity.

The court will also consider any other factors, including:

  • extent to which the supported spouse contributed to the other spouse’s attainment of education, training, professional licensing or career advancement (this can also mean the extent to which the supported spouse provided and maintained home life while the other spouse was advancing his or her career)
  • ability of the supporting spouse to pay support. A court will take into account earning capacity, earned and unearned income, assets, and standard of living,
  • needs of each party based on what the marital standard of living was,
  • each spouse’s obligations and assets, including separate property,
  • duration of the marriage,
  • ability of a spouse who is also a custodial parent to engage in employment without interfering with the interests of dependent children,
  • each spouse’s age and health,
  • documented history of domestic violence by either spouse*,
  • immediate and specific tax consequences to each spouse (often times tax agreements are figured out during the awarding of spousal support and child support agreements),
  • balance of the hardships to each spouse, and
  • the goal that the supported spouse will be self-supporting within a reasonable period of time. This follows a general rule of thumb presumed to be one-half the length of a marriage (unless the marriage was longer than 10 years).

*California courts do not ordinarily consider conduct when making spousal support determinations. But often times, a court will not award support to a spouse that has a proven history of violence toward the other spouse.

Modification or Termination of Spousal Support

Either spouse can request modification or termination of periodic payments due to a material change in circumstances unless it has been specified in the spousal support agreement. Absent a written agreement stating otherwise, spousal support terminates on the death of either spouse, or on the remarriage of the recipient.

Cohabitation

Cohabitation is an arrangement where two people who are not married live together in an emotionally and/or sexually intimate relationship on a long-term or permanent basis. Typically, this term refers to unmarried couples who live together without formally registering their relation as a marriage. This type of arrangement can affect a spousal support agreement, as it is often deemed that a person living with a new partner has a reduced need for support.

Depending on your state:

• Your spousal support can be reduced or terminated upon cohabitation only if the cohabitation significantly decreases a recipient’s need for support.

• Your spousal support will be terminated regardless of whether the recipient’s economic need is diminished by cohabiting.

• Your spousal support will not be affected should the recipient of the support begin living with someone else.

You’ll want to work with a family law attorney in your state to ensure you understand the rules about cohabitation and spousal support payments.

Tax Effects

Periodic spousal support payments are typically taxable for the recipient and tax-deductible by the payer. During a divorce agreement couples often create their own settlement agreements to take advantage of this situation. Payments are structured to create the best possible tax scenario for both spouses. If there are children involved in the divorce, child support payments and their tax exemptions are also considered to ensure that both spouses receive the best tax benefits possible. There are usually no tax consequences for single lump-sum support payments.

Spousal Support Help

Working with a family law attorney can help you understand the process of awarding and receiving spousal support. Many of the laws are specific to the state you will be divorcing in, so it’s important you work with a lawyer that is knowledgeable about your state’s laws.

A Family Law Attorney

But when it comes to the actual legal process of a divorce, you’ll want to work with a skilled family law attorney There are a number of things that need to be considered during a divorce: child support, spousal support, marital property division, and other things. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce, child custody determinations, setting up a co-parenting agreement, dividing marital property, and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

 

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Categories
Divorce Family Law Spousal Support

Alimony / Spousal Support in California

Alimony, also known as “spousal support,” is one of the last aspects of a divorce to be decided, often falling behind child support and custody and marital property division, but it is just as important.

What is Alimony / Spousal Support?

Alimony, often called “spousal support” is when one spouse pays the other in order to help that spouse maintain the same financial standing as was experienced during the marriage. A court will require the higher earning spouse to assist the lower in maintaining that standard of lifestyle that was achieved during the marriage.

Awarding Spousal Support

In California a judge can award temporary (“pendente lite”) support either during the divorce proceedings, or when the divorce is declared final. Typically these payments are made from one spouse to the other in a specified amount for a predetermined period of time. But support can also be paid in a single lump-sum payment. In collaborative process divorce agreements, spouses often come to agreement on the terms and conditions of support payments. As long as this agreement meets legal requirements, a court will uphold an agreement. This is the case even if the agreement provides for a complete waiver of support to the lower-earning spouse.

Duration of Spousal Support

In California, the duration of spousal support agreements are often tied to the length of the marriage. A general rule of thumb is that for a marriage of less than 10 years, a court will not order support payments be made for longer than half the length of the marriage. But if a marriage has lasted 10 years or longer, a court typically will not set a definite termination date for support. Both spouses are able to request modifications to the spousal support agreement indefinitely, unless a termination date has specifically been agreed, or if the court expressly terminates the support at a later hearing.

Awarding Permanent Support

Sometimes support is labeled “permanent” support, but the actual awarding of permanent support lasting for the remainder of a lifetime is increasingly rare, even for marriages that last over 10 years. Family law courts in California tend to require a spouse seeking support to make an effort to become self-supporting. A spouse that makes claims that they are unable to work, or unable to become fully employed, is required to support the claim with evidence. Often times this means having a  vocational evaluation. And for long term support orders, the support often gradually reduces over time by a nominal amount. Permanent support is usually only awarded to spouses that are unable to become self-supporting due to age or disability.

When You Might Consider a Lawyer for Personal Injury Claims

Calculation of Spousal Support

California law rules that the purpose of awarding temporary spousal support is for preserving the financial status quo, or “standard of living during the marriage” to the greatest extent possible. After a court evaluates and considers the needs of the spouse requesting the support, as well as the ability of the other spouses ability to pay, it can order the temporary spousal support in any amount. Typically, a court will use a common formula for calculating temporary support. One example of this formula is the Santa Clara County formula. This formula comes up with a figure through subtracting 50% of the lower-earner’s net income from 40% of the higher earner’s, and then makes adjustments for tax consequences and child support payments. The California Department of Child Support provides a support calculator for parents of dependent children looking to get a rough estimate of what temporary spousal support payments might look like along with child support payments. A family law attorney will also be able to provide you with a rough idea of what your payments will look like.

Standard of Living

Spousal support’s main purpose is to assist a supported spouse in maintaining a standard of living that was close to that which was attained during the marriage. But the goal is for the spouse receiving the payments to eventually become self-supporting to the greatest extent possible. A court will take the following into account:

  • marketable skills of the supported spouse,
  • job market for those skills,
  • any time or expense the supported spouse will need to acquire education or training for employment or enhanced employability, and
  • the extent to which periods of unemployment (due to domestic duties) during the marriage have impaired the supported spouse’s present or future earning capacity.

The court will also consider any other factors, including:

  • extent to which the supported spouse contributed to the other spouse’s attainment of education, training, professional licensing or career advancement (this can also mean the extent to which the supported spouse provided and maintained home life while the other spouse was advancing his or her career)
  • ability of the supporting spouse to pay support. A court will take into account earning capacity, earned and unearned income, assets, and standard of living,
  • needs of each party based on what the marital standard of living was,
  • each spouse’s obligations and assets, including separate property,
  • duration of the marriage,
  • ability of a spouse who is also a custodial parent to engage in employment without interfering with the interests of dependent children,
  • each spouse’s age and health,
  • documented history of domestic violence by either spouse*,
  • immediate and specific tax consequences to each spouse (often times tax agreements are figured out during the awarding of spousal support and child support agreements),
  • balance of the hardships to each spouse, and
  • the goal that the supported spouse will be self-supporting within a reasonable period of time. This follows a general rule of thumb presumed to be one-half the length of a marriage (unless the marriage was longer than 10 years).

*California courts do not ordinarily consider conduct when making spousal support determinations. But often times, a court will not award support to a spouse that has a proven history of violence toward the other spouse.

Modification or Termination of Spousal Support

Either spouse can request modification or termination of periodic payments due to a material change in circumstances, unless it has been specified in the spousal support agreement. Absent a written agreement stating otherwise, spousal support terminates on the death of either spouse, or on the remarriage of the recipient.

Cohabitation

Cohabitation is an arrangement where two people who are not married live together in an emotionally and/or sexually intimate relationship on a long-term or permanent basis. Typically, this term refers to unmarried couples who live together without formally registering their relation as a marriage. This type of arrangement can affect a spousal support agreement, as it is often deemed that a person living with a new partner has a reduced need for support.

Depending on your state:

• Your spousal support can be reduced or terminated upon cohabitation only if the cohabitation significantly decreases a recipient’s need for support.

• Your spousal support will be terminated regardless of whether the recipient’s economic need is diminished by cohabiting.

• Your spousal support will not be affected should the recipient of the support begin living with someone else.

You’ll want to work with a family law attorney in your state to ensure you understand the rules about cohabitation and spousal support payments.

Tax Effects

Periodic spousal support payments are typically taxable for the recipient and tax-deductible by the payer. During a divorce agreement couples often create their own settlement agreements to take advantage of this situation. Payments are structured to create the best possible tax scenario for both spouses. If there are children involved in the divorce, child support payments and their tax exemptions are also considered to ensure that both spouses receive the best tax benefits possible. There are usually no tax consequences for single lump-sum support payments.

Spousal Support Help

Working with a family law attorney can help you understand the process of awarding and receiving spousal support. Many of the laws are specific to the state you will be divorcing in, so it’s important you work with a lawyer that is knowledgeable about your state’s laws.

A Family Law Attorney

But when it comes to the actual legal process of a divorce, you’ll want to work with a skilled family law attorney There are a number of things that need to be considered during a divorce: child support, spousal support, marital property division, and other things. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce, child custody determinations, setting up a co-parenting agreement, dividing marital property, and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

 

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Categories
Child Custody Child Support Divorce Family Law High Net-Worth Divorce Marital Property Division Spousal Support

The Financial Side of Divorce

Divorce is difficult. You are both figuring out what your new lives will be once the divorce agreement is signed. One of the hardest aspects to resolve during divorce is the finances.

The Financial Side of Divorce

Mark Zandi, a chief economist at Moody’s Analytics, who has researched divorce and corresponding demographic trends has found, “Divorce generally results in a significant financial setback for all those involved.”

What used to feel like a joint effort between two people can turn into an all out war. Because of the potential to start World War III, there are things that you can do to prepare yourself for at least the financial aspect of the end of your marriage. Careful planning in advance can help you avoid getting to the battlegrounds unarmed.

Preparing Your Finances for Divorce

The first thing you want to do is create an inventory of all of your assets. This includes your debts too. You need to understand your families assets and liabilities. Have copies or at least access to tax returns, statements from all accounts, household bills and any other important records. Additionally, put together a list of valuable property that includes shared real estate, collectibles, furniture, and antiques or pieces of artwork.

You will want to put everything in writing, in a qualified domestic relations order, or QDRO. This is a legal document that spells out how you and your spouse have decided to divide certain retirement assets such as 401(k) accounts, says Page Harty, a financial planner at wealth-management firm SignatureFD.

It’s crucial that you do not overlook anything valuable. This could cost you significant amounts of money when it comes time to divide marital assets. There are often cases when a spouse will hide an asset from the other in an attempt to get more money or retain ownership of something they hold valuable. Sometimes this cannot be avoided, but sitting down, finding a clear head, and making a list of every asset you are aware of can help prevent this from happening to you (unless of course your spouse has never made you aware of the asset he or she is hiding).

Your shared debts are important too. Just because the marriage is ending, that does not mean that the debt will just go away. Try to pay these debts off before the divorce is finalized. If that’s not possible, make sure you have a clear agreement on which spouse will pay which debt.

house

 

The House

It’s tempting to want to keep the house. This is especially true for couples that have school-aged children. It can already feel as if you’re destroying their lives, let alone forcing them to move out of the house they used to feel so safe in. But remember that a house is a big expense, and one that might not be worth fighting for. It’s often advised that splitting couples sell the house and split the proceeds. This way, both parties share in the risk and cost that is associated with a selling a home, says financial planner, Matt Mikula.

Mikula shares this example of a client of his. The mother of four had been awarded custody of the couple’s four children in addition to the family’s $1.5 million home and $500,000 in other assets. Not wanting to disrupt her children’s lifestyle, she wanted to keep the house.

But taxes, utilities, maintenance and other expenses amounted to about $50,000 a year. The client had little other means, in terms of assets and income to cover those costs. As a result, according to Mikula, “she was going to run out of money.”

In the end, the client decided to sell the house. This was six years after the divorce, and due to economic reasons, she received 20% less than what it had been valued at during the time of the divorce.

Additional Expenses

Housing is a huge expense, but it’s not the only one. Other expenses will need to be taken care of, including how much your family spends on food, clothes, and other essentials, like health insurance, which according to financial planners, can be steep.

There are also the unknown expenses. Ms. Church, a financial adviser at Raymond James Financial shared this story. After her divorce, her daughter was invited to play on a volleyball team that traveled extensively. Suddenly she needed to come up with about $400 to $500 a month to cover the hotel rooms, meals and other expenses associated with her daughter playing on this team. Ms. Church says, “there will be unforeseen expenses.” Because of this, she advises her clients to be aggressive when they sit down and figure out their post-divorce cost of living. This is especially true if there are children involved. She also advises to include the impact of inflation.

Stop Seeking Revenge

It’s obvious from almost every tabloid story on divorce that divorce can get ugly when it comes to finances.

One key reminder to keep in mind: The less you spend, the more you keep.

What that translates to is: the more you argue about petty things, the more time you will spend, which automatically translates to the more money you will spend.

Regardless of how terrible the reason is for your divorce, try to remember that the more money that gets put towards the divorce is less money that will be available for the settlement.

Financial planner Rose Swanger has this example to share: Her client was married for more than 20 years to a surgeon that earned a seven-figure income. He had cheated on her, and as a result, the two were divorcing. The woman was seeking $300,000 a year in alimony. According to Swanger, the amount she sought was unrealistic due to the fact that the couple owned two heavily mortgaged houses in affluent neighborhoods, and were also paying private-school tuition for their children.

The woman had already worked with two lawyers, running up tens of thousands of dollars in legal fees by the time she consulted Ms. Swanger, who ultimately dropped her as a client. As a result of the ever-increasing legal bills, the woman’s credit score suffered a large hit.

“I don’t blame her for trying to retaliate, but I warned her that a calm divorce is the best divorce,” Ms. Swanger says.

Every dollar spent during the divorce process is a dollar that cannot be split 50-50. It’s advised that you look at your divorce as a way to strike a favorable business deal rather than a chance to seek revenge.

Taxes and Divorcemoney and divorce

Before the divorce paperwork is signed you need to make sure you review what your agreement will mean around tax time. There are different tax laws regarding alimony and child support, depending on what side of the agreement you are on. Be sure that your lawyer or financial adviser explains this before you finalize the financial aspects of your divorce. An agreement that looks equal on the surface might be completely unfair when it comes to tax time.

Financial planner Monica Garver, worked on a case where the husband proposed a division of assets that worked out to be roughly an even split at face value. He proposed keeping $2 million from after-tax investment account and giving his soon-to-be ex-wife $2 million in tax-deferred retirement accounts.

“Each and every dollar [in the retirement accounts] had to pass through the hands of the taxman before the spouse could put it in her pocket,” says Ms. Garver. She encouraged that her client seek more of the couple’s assets to compensate for the money lost to the taxman.

Don’t Forget!

Before you can consider yourself free from your spouse there are some other financial matters that might not seem obvious.

Be sure to update your will, says Ms. Vasileff, a financial planner. Not doing this can put your intended heirs in a difficult situation, she says. She advises you will also need to update a health-care proxy or a power of attorney that names your former spouse.

Lastly, transfer any titles for any real estate, cars, investment accounts or other assets that were held jointly into your name, says Harty of SignatureFD. She also advises a big thing: change the passwords on your accounts, too.

Also, if there was something agreed to in your divorce, like a requirement that your former spouse purchase a life-insurance policy and name you as the beneficiary, you should make sure that the premiums are being paid and that you remain the beneficiary, Ms. Harty says. One option to ensure this is being done: Ask for periodic confirmation from the insurance company.

A Family Law Attorney

There are a number of things that need to be considered during a divorce. You and your spouse will need to come to an agreement that settles every aspect of your marriage.  Child support, spousal support, marital property division can all be agreed to through the process of mediation. Working with a skilled mediation attorney can help ensure you get a fair case.  For advice on divorce, child custody determinations, setting up a co-parenting agreement, dividing marital property, and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Categories
Divorce Domestic Violence Family Law High Net-Worth Divorce Marital Property Division Spousal Support

Is Amber Heard Just Seeking Spousal Support?

Since Amber Heard’s filing for divorce from Johnny Depp at the end of May Heard has charged the Pirates of the Caribbean star with a temporary restraining order. But is the order just one way for the actress to secure a solid financial footing for her future?

Is Amber Heard Just Seeking Spousal Support?

While Amber Heard,30, might have obtained a temporary domestic violence restraining order against Depp, 52, Depp’s attorneys aren’t buying it.  In fact, Depp’s attorney feels Heard is “attempting to secure a premature financial resolution by alleging abuse,” that the two actors and the court have no “financial information upon which to grant such relief” and that “as a successful actress with significant income of her own, there is no question Amber can support herself” until both Depp and Heard “have had a reasonable amount of time to assess their finances” with their attorneys and potentially negotiate a “mutually agreeable resolution.”

While the two did not sign a prenuptial agreement, Heard is seeking $50,000 a month in spousal support, an amount that is reportedly based on their “marital lifestyle.” Depp requested that amount be denied in his response papers to her divorce filing.

High Net-Worth Divorces33034958_s

It’s not uncommon for us to hear about high net-worth divorces coming out of Hollywood. Defined by the Securities and Exchange Commission, a “High Net-Worth Divorce” is “One in which a natural person who has individual net worth, or joint worth with the person’s spouse, that exceeds $1 million dollars at the time of purchase, excluding the value of the primary residence of such person; or a natural person with an income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.” 

For individuals who carry a significant net worth, such as Johnny Depp and Amber Heard, protecting themselves in the case of divorce is essential in order to properly secure their assets. Statistically speaking, individuals across a wide spectrum can find themselves facing the reality of divorce, no matter their socioeconomic status, ethnicity or religion, but the more assets involved and the higher the net worth, the greater the stakes when it comes to separation of finances and property.

Since Depp has made a considerable amount of money – but Heard has as well in her own acting career. Additionally, the fact that the two were only married for 15 months will no doubt be considered when the judge reviews Heard’s request for spousal support.

Spousal Support Determinations

If you are getting divorced, and are seeking spousal support, or are expected to pay spousal support payments, there are some important things you’ll want to understand. A family law attorney will be able to walk you through the specifics of your case, but here we’ll provide you with a general overview of aspects of spousal support including: the awarding of spousal support, tax laws, and what can happen if spousal support payments are not made.

Defining Spousal Support

Spousal support (also known as alimony) is financial assistance that is only available to those who were legally married. It recognizes a partner’s contribution to the marriage and its goal is to help the recipient achieve financial independence. Rules regarding alimony vary state by state.

Calculating Spousal Support

When a court presides over a spousal support hearing, it weighs a number of factors including: the length of the marriage, the needs of each spouse, the standard of living that was created and maintained during the marriage, any assets, the age of the spouses, numerous other factors, and state specific laws. Your divorce attorney will build your case for spousal support based on your own specific circumstances.

Length of Spousal Support

The duration of spousal support payments is set by the court after it weighs the arguments that have been made. Typically, the length of payments lasts for half the length of a less than 10 years long marriage. For example: a marriage of six years means the spousal support payments will need to be paid for three years.

In longer marriages, a court might not set an a duration for the alimony payments. In that case, it is up to your divorce attorney to prove your side of the case and the duration. You should work with your divorce attorney to establish your side, regardless of if you are paying or receiving payments, and also determine the amount of time you seek. The court will then listen to both arguments, and using common law, decide upon the duration.

Permanent or Lifetime Spousal Support

“Permanent” or “Lifetime” spousal support means support will be paid to the recipient until the death of the one paying, or sometimes until the recipient remarries. While remarriage has been a reason for the end of spousal support payments, that is not always the case, and sometimes a court will rule that a remarriage does not mean the end of the support payments.

As women became a stronger component of the workforce, permanent support began to be rewarded less and less. And now courts rarely award permanent support. One appellate court stated:

“As recognized by our Supreme Court, the public policy of this state has progressed from one which entitled some women to lifelong alimony as a condition of the marital contract of support, to one that entitles either spouse to post-dissolution support for only so long as is necessary to become self-supporting.”

A court will usually require the higher earner, regardless of if they are husband or wife, to assist the lower earner with maintaining the standard of living, at least for a period of time.

“Standard of Living”

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Heard is seeking $50,000 a month in spousal support, an amount that is reportedly based on their “marital lifestyle.” This “marital lifestyle” will be based on what is called a “standard of living,” which is often used as a sort of guidebook for how much money a spouse will receive.

Spousal support’s main purpose is to assist a supported spouse in maintaining a standard of living that was close to that which was attained during the marriage. But the goal is for the spouse receiving the payments to eventually become self-supporting to the greatest extent possible. A court will take the following into account:

  • marketable skills of the supported spouse,
  • job market for those skills,
  • any time or expense the supported spouse will need to acquire education or training for employment or enhanced employability, and
  • the extent to which periods of unemployment (due to domestic duties) during the marriage have impaired the supported spouse’s present or future earning capacity.

The court will also consider any other factors, including:

  • extent to which the supported spouse contributed to the other spouse’s attainment of education, training, professional licensing or career advancement (this can also mean the extent to which the supported spouse provided and maintained home life while the other spouse was advancing his or her career)
  • ability of the supporting spouse to pay support. A court will take into account earning capacity, earned and unearned income, assets, and standard of living,
  • needs of each party based on what the marital standard of living was,
  • each spouse’s obligations and assets, including separate property,
  • duration of the marriage,
  • ability of a spouse who is also a custodial parent to engage in employment without interfering with the interests of dependent children,
  • each spouse’s age and health,
  • documented history of domestic violence by either spouse*,
  • immediate and specific tax consequences to each spouse (often times tax agreements are figured out during the awarding of spousal support and child support agreements),
  • balance of the hardships to each spouse, and
  • the goal that the supported spouse will be self-supporting within a reasonable period of time. This follows a general rule of thumb presumed to be one-half the length of a marriage (unless the marriage was longer than 10 years).

*California courts do not ordinarily consider conduct when making spousal support determinations. But often times, a court will not award support to a spouse that has a proven history of violence toward the other spouse.

While a history of violence might factor into Depp and Heard’s case, it will be up to a judge to determine if that is a factor in the two’s divorce case, or if, as Depp’s lawyer’s allege that Heard is just using the restraining order as a means to secure her future financial footing.

A Family Law Attorney

But when it comes to the actual legal process of a divorce, you’ll want to work with a skilled family law attorney There are a number of things that need to be considered during a divorce: child support, spousal support, marital property division, and other things. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce, child custody determinations, setting up a co-parenting agreement, dividing marital property, and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

 

 

 

 

 

Categories
Divorce Family Law High Net-Worth Divorce Spousal Support

Depp’s Marriage Ends After One Year of Marriage

After just one year of marriage, Amber Heard and Johnny Depp have filed for divorce.

Depp’s Marriage Ends After One Year of Marriage

Amber Heard, 30,  has filed for divorce from Johnny Depp, 52, and is seeking spousal support, according to court documents.

The two met on the set of The Rum Diary in 2009 and married in February 2015 in two ceremonies – one on Depp’s private island in the Bahamas, and one at Depp’s West Hollywood, California home.

Depp thanked Heard during an acceptance speech for an achievement award at the annual Palm Springs Film Festival gala, saying, “I also have to thank my wife Amber for putting up with me, for living with all these characters, which can’t be easy. It’s hard for me—it’s got to be hard for her.”

Heard cited “irreconcilable differences” in the court papers and is seeking spousal support.

Spousal Support

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If you are getting divorced, and are seeking spousal support, or are expected to pay spousal support payments, there are some important things you’ll want to understand. A family law attorney will be able to walk you through the specifics of your case, but here we’ll provide you with a general overview of aspects of spousal support including: the awarding of spousal support, tax laws, and what can happen if spousal support payments are not made.

Spousal support (also known as alimony) is financial assistance that is only available to those who were legally married. It recognizes a partner’s contribution to the marriage and its goal is to help the recipient achieve financial independence. Rules regarding alimony vary state by state.

Calculating Spousal Support

When a court presides over a spousal support hearing, it weighs a number of factors including: the length of the marriage, the needs of each spouse, the standard of living that was created and maintained during the marriage, any assets, the age of the spouses, numerous other factors, and state specific laws. Your divorce attorney will build your case for spousal support based on your own specific circumstances.

Length of Spousal Support

The duration of spousal support payments is set by the court after it weighs the arguments that have been made. Typically, the length of payments lasts for half the length of a less than 10 years long marriage. For example: a marriage of six years means the spousal support payments will need to be paid for three years.

In longer marriages, a court might not set an a duration for the alimony payments. In that case, it is up to your divorce attorney to prove your side of the case and the duration. You should work with your divorce attorney to establish your side, regardless of if you are paying or receiving payments, and also determine the amount of time you seek. The court will then listen to both arguments, and using common law, decide upon the duration.

Permanent or Lifetime Spousal Support

“Permanent” or “Lifetime” spousal support means support will be paid to the recipient until the death of the one paying, or sometimes until the recipient remarries. While remarriage has been a reason for the end of spousal support payments, that is not always the case, and sometimes a court will rule that a remarriage does not mean the end of the support payments.

As women became a stronger component of the workforce, permanent support began to be rewarded less and less. And now courts rarely award permanent support. One appellate court stated:

“As recognized by our Supreme Court, the public policy of this state has progressed from one which entitled some women to lifelong alimony as a condition of the marital contract of support, to one that entitles either spouse to post-dissolution support for only so long as is necessary to become self-supporting.”

A court will usually require the higher earner, regardless of if they are husband or wife, to assist the lower earner with maintaining the standard of living, at least for a period of time.

Changes in Financial Situation

The duration of spousal support payments can also be dependent on if the spouse receiving the support has a change in their financial standing (as the result of beginning a new job or higher pay). The purpose of spousal support is to ensure financial safeguards for the person receiving them. Therefore, if they no longer need to receive money to help them maintain financial footing, then a court can rule that they are able to support themselves and no longer need the support they have been receiving.

Tax Strategy During Divorce Decisions

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If you’re paying or receiving spousal support there are some basic tax laws you need to know and remember both during your divorce proceedings and after.

Bottom line: If you receive spousal support, you must declare it as taxable income . If you’re paying spousal support, you can deduct it. This differs from child support, as child support is not taxable and not deductible.

During the Ruling

You’ll want to remember this rule while you and your spouse are working out alimony agreements, as it does impact your bottom line when it comes to your finances. The final ruling and decision should reflect the intentions you have going into tax time. You might decide to have the paying spouse agree to pay the recipient spouse’s tax liability. A family law attorney should advise you on this during your alimony hearing. 

A Helpful Tip

If you’re able to negotiate with your spouse, it might be helpful to try and work out the best tax deal that works for both of you. If you’re in the middle of a litigious divorce and alimony decision, this type of negotiation may be difficult, but it might save you a lot of time and headaches around tax season.

If you receive alimony: plan for the potential tax impact. Your former spouse is not be able to withhold taxes from the support check you receive. That means you will need to account for that when you calculate how much you’ll be paying in taxes. For this reason you might want to consider paying quarterly taxes. That will save you from getting hit at one time come April 15th.

If you are paying alimony: remember you are able to deduct the support payments on your income tax return, but not child support or distribution of property. The IRS often scrutinizes payments made during the first three years you make payments to ensure that you have not disguised your alimony payments as property distribution or other post divorce

Family Law Attorney

Working with a lawyer that understands the ins and outs of the tax repercussions of divorce can help mitigate the confusion both during the agreement hearings and after (once you are actually making the payments).

Falling Behind on Alimony

It’s not an uncommon story: a man or woman falls behind on their alimony payments. This can happen for a number of reasons: loss of job, inability to get a job, or negligence. If you’re the one not receiving the payments, it can have a damaging effect on your entire life. Here’s some information on if your ex fails to make alimony payments.

What’s the Reason?

If you are not receiving court-ordered alimony payments try to find out why. Did your ex recently lose his or her job? Were they injured and are no unable to work? If this is the case, you might want to consider working out a plan to make up lost payments or to make future payments. Working with an attorney on something like this is a great idea as they will be able to provide an unbiased opinion on the situation. You will also have legal proof should you need to take the un-paying spouse to court.

Avoiding Alimony Payment

If your spouse is able to make the payments, and has not suffered a loss or job, or an injury that is keeping them from work, and rather just avoiding their court-ordered obligation, you’ll need to seek legal help. You will need to file a motion with the court asking a judge to order your spouse to pay any past-due past payments. This motion will also include an agreement to keep up with the future payments. You’ll want to work with an experienced family law attorney to draft a persuasive legal motion for this. An attorney will also being able to serve as your representative in court.

Consequences of Not Paying Alimony

Courts have a number punishments or fines for delinquent spouses. While the laws governing the consequences vary from state to state, generally a court will allow the following:

  • Holding a spouse in contempt. This can lead to fines and possible jail time.
  • Withholding income from the spouse. During this the delinquent spouse’s employer is required to withhold the spousal support amount from the delinquent spouse’s paycheck. That money is then sent directly to the spouse that is supposed to be receiving spousal support.
  • Writ of Execution = when a judge awards a portion of the delinquent spouse’s bank accounts and other assets to the receiver spouse.
  • If the amount owed is substantial, you are able to ask the court to issue a money judgment for the total amount owed along with interest.

Contact a family law attorney that can help you file a legal action to enforce alimony. A lawyer will be able to ensure you receive the money that is owed to you.

Working with a Family Law Attorney

There are a number of things that need to be considered during a divorce and during a spousal support decision. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

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Divorce Family Law High Net-Worth Divorce Spousal Support

Cuoco and Sweeting: A Lesson in Spousal Support

It looks like Kaley Cuoco, star of The Big Bang Theory, might have to pay spousal support to ex, Ryan Sweeting.

Cuoco and Sweeting: A Lesson in Spousal Support

Cuoco, 29, earns an estimated $1 million an episode, and now it looks like her Tennis pro ex, Sweeting, 28, has filed for a piece of those earnings. The two filed for divorce just three weeks ago following a 21-month marriage.  Read on to learn more about what spousal support is and how long the payments can last.

Understanding Spousal Support

Alimony, often called “spousal support” is when one spouse pays the other in order to help that spouse maintain the same financial standing as was experienced during the marriage. A court will require the higher earning spouse to assist the lower in maintaining that standard of lifestyle that was achieved during the marriage.

In California a judge can award temporary (“pendente lite”) support either during the divorce proceedings, or when the divorce is declared final. Typically these payments are made from one spouse to the other in a specified amount for a predetermined period of time. But support can also be paid in a single lump-sum payment. In collaborative process divorce agreements, spouses often come to agreement on the terms and conditions of support payments. As long as this agreement meets legal requirements, a court will uphold an agreement. This is the case even if the agreement provides for a complete waiver of support to the lower-earning spouse.

Duration of Spousal Support

In California, the duration of spousal support agreements are often tied to the length of the marriage. A general rule of thumb is that for a marriage of less than 10 years, a court will not order support payments be made for longer than half the length of the marriage. But if a marriage has lasted 10 years or longer, a court typically will not set a definite termination date for support. Both spouses are able to request modifications to the spousal support agreement indefinitely, unless a termination date has specifically been agreed, or if the court expressly terminates the support at a later hearing.

Permanent Support

Sometimes support is labeled “permanent” support, but the actual awarding of permanent support lasting for the remainder of a lifetime is increasingly rare, even for marriages that last over 10 years. Family law courts in California tend to require a spouse seeking support to make an effort to become self-supporting. A spouse that makes claims that they are unable to work, or unable to become fully employed, is required to support the claim with evidence. Often times this means having a  vocational evaluation. And for long term support orders, the support often gradually reduces over time by a nominal amount. Permanent support is usually only awarded to spouses that are unable to become self-supporting due to age or disability.

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Calculation of Spousal Support

California law rules that the purpose of awarding temporary spousal support is for preserving the financial status quo, or “standard of living during the marriage” to the greatest extent possible. After a court evaluates and considers the needs of the spouse requesting the support, as well as the ability of the other spouses ability to pay, it can order the temporary spousal support in any amount. Typically, a court will use a common formula for calculating temporary support. One example of this formula is the Santa Clara County formula. This formula comes up with a figure through subtracting 50% of the lower-earner’s net income from 40% of the higher earner’s, and then makes adjustments for tax consequences and child support payments. The California Department of Child Support provides a support calculator for parents of dependent children looking to get a rough estimate of what temporary spousal support payments might look like along with child support payments. A family law attorney will also be able to provide you with a rough idea of what your payments will look like.

Standard of Living

Spousal support’s main purpose is to assist a supported spouse in maintaining a standard of living that was close to that which was attained during the marriage. Often times it is award because it’s assumed that the recipient spouse took on the “house” aspect of the family, while the paying spouse went to work. But the goal is for the recipient spouse to eventually become self-supporting. A court will take the following into account:

  • marketable skills of the supported spouse,
  • job market for those skills,
  • any time or expense the supported spouse will need to acquire education or training for employment or enhanced employability, and
  • the extent to which periods of unemployment (due to domestic duties) during the marriage have impaired the supported spouse’s present or future earning capacity.

The court will also consider any other factors, including:

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  • extent to which the supported spouse contributed to the other spouse’s attainment of education, training, professional licensing or career advancement (this can also mean the extent to which the supported spouse provided and maintained home life while the other spouse was advancing his or her career)
  • ability of the supporting spouse to pay support. A court will take into account earning capacity, earned and unearned income, assets, and standard of living,
  • needs of each party based on what the marital standard of living was,
  • each spouse’s obligations and assets, including separate property,
  • duration of the marriage,
  • ability of a spouse who is also a custodial parent to engage in employment without interfering with the interests of dependent children,
  • each spouse’s age and health,
  • documented history of domestic violence by either spouse*,
  • immediate and specific tax consequences to each spouse (often times tax agreements are figured out during the awarding of spousal support and child support agreements),
  • balance of the hardships to each spouse, and
  • the goal that the supported spouse will be self-supporting within a reasonable period of time. This follows a general rule of thumb presumed to be one-half the length of a marriage (unless the marriage was longer than 10 years).

*California courts do not ordinarily consider conduct when making spousal support determinations. But often times, a court will not award support to a spouse that has a proven history of violence toward the other spouse.

Modification or Termination of Spousal Support

Either spouse can request modification or termination of periodic payments due to a material change in circumstances, unless it has been specified in the spousal support agreement. Absent a written agreement stating otherwise, spousal support terminates on the death of either spouse, or on the remarriage of the recipient.

Cohabitation

Cohabitation is an arrangement where two people who are not married live together in an emotionally and/or sexually intimate relationship on a long-term or permanent basis. Typically, this term refers to unmarried couples who live together without formally registering their relation as a marriage. This type of arrangement can affect a spousal support agreement, as it is often deemed that a person living with a new partner has a reduced need for support.

Depending on your state:

• Your spousal support can be reduced or terminated upon cohabitation only if the cohabitation significantly decreases a recipient’s need for support.

• Your spousal support will be terminated regardless of whether the recipient’s economic need is diminished by cohabiting.

• Your spousal support will not be affected should the recipient of the support begin living with someone else.

You’ll want to work with a family law attorney in your state to ensure you understand the rules about cohabitation and spousal support payments.

Tax Effects

Periodic spousal support payments are typically taxable for the recipient and tax-deductible by the payer. During a divorce agreement couples often create their own settlement agreements to take advantage of this situation. Payments are structured to create the best possible tax scenario for both spouses. If there are children involved in the divorce, child support payments and their tax exemptions are also considered to ensure that both spouses receive the best tax benefits possible. There are usually no tax consequences for single lump-sum support payments.

Spousal Support Help

Working with a family law attorney can help you understand the process of awarding and receiving spousal support. Many of the laws are specific to the state you will be divorcing in, so it’s important you work with a lawyer that is knowledgeable about your state’s laws.

A Family Law Attorney

But when it comes to the actual legal process of a divorce, you’ll want to work with a skilled family law attorney There are a number of things that need to be considered during a divorce: child support, spousal support, marital property division, and other things. Working with a skilled attorney can help ensure you get a fair case.  For advice on divorce, child custody determinations, setting up a co-parenting agreement, dividing marital property, and spousal support you need the expert law firm of Divorce Law LA. Schedule a consultation today.

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

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