Category: Family Law

Divorce Law LA blog posts about family law.

Can You Divorce-Proof Your Marriage?

Post author By Scott
Post date April 10, 2018

There’s a common thought out there that there are things you can do to divorce-proof your marriage. Below we share these things, as well as what to do should you not be able to divorce-proof your marriage.

Can You Divorce-Proof Your Marriage?

Allow Some Freedom

We all need a little space from time-to-time. That means having the freedom to have some space. If you’re constantly making your spouse “ask for permission,” you’re going to feel like a parent, not a partner.

Agree to Disagree

You’re not going to win every battle and sometimes you’re not going to see eye-to-eye on everything.

Learn Each Other’s Fighting Styles

You might get emotional, he might stay super calm. Learn how each other comes at an argument and develop a strategy for how you want to tackle arguments.

Dress Up for Each Other

Married life can sometimes transition to sweatpants on the couch life. Remind each other of just why you fell in love with each other – there was probably at least some form of attraction there.

Make Sure You’re on the Same Page When it Comes to Children

Expect the Lows

Every relationship has it’s ups and downs. It’s all about how you deal with both ends of the spectrum.

If You Decide to Divorce, Consider Mediation

The mediation process allows for negotiation, during which everyone involved works toward an outcome that feels fair to both parties. This shared and agreed to outcome has become a popular option in the U.S. over the years, and has helped to settle 50-80% of divorce cases. Working through a divorce with a mediator allows couples to be less defensive and more informed about both sides. Mediators help to aid the process by offering advice and other alternate solutions that a couple may not have considered. Also, the process of mediation tends to take half the amount of time a divorce that needs to go to court does. On average couples spend at least 50% of the cost of an average divorce because of that decrease in the amount of time. This usually happens because you will not need to pay the legal fees of going to court and working with a judge as is usually needed for a traditional court proceeding.

Working Towards an Agreement

For a mediation process to work, both parties need to be focused on coming to an agreement. If the parties cannot agree to that, chances are it won’t work. A couple will then need to pursue a traditional court process. But mediation presents a positive environment for couples that want to avoid the combative and litigious process that often comes with going to family law court.

Preparing for Your Mediation

You and your spouse have decided that you want to avoid as much conflict as possible. You’ve both agreed to act like mature adults when it comes to ending your marriage with mediation. You have a mediation date set. Now you need to know what else to expect as you enter your mediation session.

Financial Documents

Before your first mediation session, make a list of all the assets you have. This list should include all financial information you have about: bank accounts, mutual funds, retirement funds, real estate, vehicles, time shares, businesses, and stock. You’ll also need to prepare a list your debts including monthly credit payment, mortgage and home equity payments, private loans, and car loans. Make sure you have all the information, or at least as much as possible. Ensure the information is organized and in a form that will allow the mediator to be able to clearly review it during the session.

Leave Your Emotions at the Door

Mediation is meant to be a negotiation process, not one in which you start crying or screaming at your soon to be ex. Getting emotional will not allow you the clear head you need for the mediation process. This is not the time to “get back” at your ex-spouse. This is the time to negotiate, and not argue, so you can come to a final agreement. Remember the end goal and what you are trying to accomplish. You also need to be realistic. Chances are you will not walk away having received everything you wanted. Being able to look forward and remember that will help you stay out of the nit-picky weeds of settling a divorce agreement. Still, be forthright about what you want.

Scheduled Sessions

You, your spouse, and your mediator team will put together a series of scheduled sessions, during which you will all meet as a large group. The first session will be for disclosing all the “hard facts” about the marriage: joint and individual finances (bank accounts, debts, investments, retirement accounts and pensions) and assets (real estate, cars, other vehicles). Depending on how much you are able to get through in that meeting, you will also discuss the “soft” facts. This is the crucial portions of a marriage: family background and history; fears and concerns; issues regarding children, and other non-financial matters.

Once all the “facts” are on the table, the mediator or mediators help the parties identify a range of possible solutions. These solutions will take everything into consideration a well as what each party (and any children involved) will need to survive after the divorce.

The next step is the “solutions phase.” During this time, the spouses speak directly to each other about various options that have been presented and discuss whether or not those options do or do not meet their concerns. During this time, if it seems the couple is able to communicate without getting emotional or upset, the mediator keeps quiet. But if a couple gets stumped,, or if emotions and tempers flare, the mediator can choose to step in to keep them on task or provide a suggestion the couple might not have thought of. The couple is encouraged to do most of the leg-work in figuring out how to solve the problems. A mediator’s goal and role is to help identify options, keep discussions on track, minimize unproductive or hostile discussion, and to create and maintain a forward-moving momentum.

During the process the people that have the facts and are best equipped to make decisions – the people in the marriage – have control.

Reaching an Agreement

During the course of the mediation, or when the mediation is completed, a detailed written divorce agreement is drafted. This written agreement, when finalized and signed, is what you have been working towards during the divorce process. A judge will review this agreement in court. . You will need to appear at the final divorce hearing so the judge can review the written agreement. In all successfully mediated cases, the court hearing is an “uncontested hearing” during which a couple presents its agreement to the judge and asks the judge to accept it. After that the divorce is final. It then becomes “the law” between the parties after the divorce. It is now legal and binding, just as it would be if the parties had reached an agreement through the standard process of hiring separate attorneys to represent each of them.

You will need to adhere to the provisions laid out in the divorce agreement regarding child custody and visitation, child support, marital property division, and alimony.

Mediation Just for Friends?

Mediation is also not a process that only works for couples that are “still friends.” A lot of couples that go through the mediation process do not get along, but are able to because of the help of a neutral third-party mediator. This form of communication does however help open up lines of communications while allowing for misunderstandings to get cleared up. Both spouses are encouraged to move forward toward a solution. Still, it’s important for couples to remember that the solution is the goal, rather than opening up old arguments. While you might run into arguments during the session (that’s totally normal) you should not go into the session with plans of reviewing and “solving” old arguments. That is not the purpose of the mediation process. You are there to work towards one goal: a divorce agreement that you both agree to.

When Mediation Doesn’t Work

Often times mediation will not be the answer to your divorce. Chances are that if a couple was not able to get along during the marriage, there are reasons that mediation will not work. If you have met with a mediator and your spouse and are still not able to come to a decision regarding aspects of your marriage, chances are you will need to go the route of a formal divorce process. Do not consider that a failure! Divorce is difficult for everyone, regardless of the process.

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

Tags divorce-proof, marriage, marriage tips, mediation

Collaborative Law Divorce Family Law High Net-Worth Divorce

Channing Tatum and Jenna Dewan’s “Loving Separation”

Post author By Scott
Post date April 3, 2018

After nine years of marriage, Channing Tatum and Jenna Dewan have announced they will be divorcing.

Channing Tatum and Jenna Dewan’s “Loving Separation”

Channing Tatum and Jenna Dewan announced they are divorcing today.

The couple announced their separation via Tatum’s Instagram, saying:

“Hey world! So…We have something we would like to share.

First off, it feels odd that we have to share this kind of thing with everyone, but it’s a consequence of the lives we’ve chosen to lead, which we also happen to be deeply grateful for. We’re living in an incredible moment in time, but it’s also a time where truth can easily get distorted into “alternative facts” 😉 So we want to share the truth so you know that if you didn’t read it here then it’s most certainly fiction.

We have lovingly chosen to separate as a couple. We fell deeply in love so many years ago and have had a magical journey together. Absolutely nothing has changed about how much we love one another, but love is a beautiful adventure that is taking us on different paths for now. There are no secrets nor salacious events at the root of our decision — just two best-friends realizing it’s time to take some space and help each other live the most joyous, fulfilled lives as possible. We are still a family and will always be loving dedicated parents to Everly. We won’t be commenting beyond this, and we thank you all in advance for respecting our family’s privacy. Sending lots of love to everyone, Chan&Jenna.”

Tatum and Dewan share one child together and were married in 2009.

Divorce does not have to be a contentious process. For couple’s that want to resolve things peacefully, mediation can be a great option.

Mediation

The mediation process allows for negotiation, during which everyone involved works toward an outcome that feels fair to both parties. This shared and agreed to outcome has become a popular option in the U.S. over the years, and has helped to settle 50-80% of divorce cases. Working through a divorce with a mediator allows couples to be less defensive and more informed about both sides. Mediators help to aid the process by offering advice and other alternate solutions that a couple may not have considered. Also, the process of mediation tends to take half the amount of time a divorce that needs to go to court does. On average couples spend at least 50% of the cost of an average divorce because of that decrease in the amount of time. This happens because you will not need to pay the legal fees of going to court and working with a judge as is usually needed for a traditional court proceeding.

Working Towards an Agreement

Preparing for Your Mediation

Financial Documents

Before your first mediation session, make a list of all the assets you have. This list should include all financial information you have about: bank accounts, mutual funds, retirement funds, real estate, vehicles, timeshares, businesses, and stock. You’ll also need to prepare a list your debts including monthly credit payment, mortgage and home equity payments, private loans, and car loans. Make sure you have all the information, or at least as much as possible. Ensure the information is organized and in a form that will allow the mediator to be able to clearly review it during the session.

Leave Your Emotions at the Door

Scheduled Sessions

The next step is the “solutions phase.” During this time, the spouses speak directly to each other about various options that have been presented and discuss whether or not those options do or do not meet their concerns. During this time, if it seems the couple is able to communicate without getting emotional or upset, the mediator keeps quiet. But if a couple gets stumped, or if emotions and tempers flare, the mediator can choose to step in to keep them on task or provide a suggestion the couple might not have thought of. The couple is encouraged to do most of the leg-work in figuring out how to solve the problems. A mediator’s goal and role is to help identify options, keep discussions on track, minimize unproductive or hostile discussion, and to create and maintain a forward-moving momentum.

During the process the people that have the facts and are best equipped to make decisions – the people in the marriage – have control.

Reaching an Agreement

During the course of the mediation, or when the mediation is completed, a detailed written divorce agreement is drafted. This written agreement, when finalized and signed, is what you have been working towards during the divorce process. A judge will review this agreement in court. You will need to appear at the final divorce hearing so the judge can review the written agreement. In all successfully mediated cases, the court hearing is an “uncontested hearing” during which a couple presents its agreement to the judge and asks the judge to accept it. After that the divorce is final. It then becomes “the law” between the parties after the divorce. It is now legal and binding, just as it would be if the parties had reached an agreement through the standard process of hiring separate attorneys to represent each of them.

You will need to adhere to the provisions laid out in the divorce agreement regarding child custody and visitation, child support, marital property division, and alimony.

Mediation Just for Friends?

Mediation is also not a process that only works for couples that are “still friends.” A lot of couples that go through the mediation process do not get along but are able to because of the help of a neutral third-party mediator. This form of communication does, however, help open up lines of communications while allowing for misunderstandings to get cleared up. Both spouses are encouraged to move forward toward a solution. Still, it’s important for couples to remember that the solution is the goal, rather than opening up old arguments. While you might run into arguments during the session (that’s totally normal) you should not go into the session with plans of reviewing and “solving” old arguments. That is not the purpose of the mediation process. You are there to work towards one goal: a divorce agreement that you both agree to.

When Mediation Doesn’t Work

A Family Law Attorney

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Tags celebrity divorce, Channing Tatum, Jenna Dewan, Loving Separation

Divorce Family Law High Net-Worth Divorce

Vanessa Trump Divorcing Donald Trump Jr.

Post author By Scott
Post date March 20, 2018

On March 15, after 12 years of marriage, Vanessa Trump filed for divorce from Donald Trump Jr.. The couple released a statement the following day saying, “We have decided to go our separate ways. We will always have tremendous respect for each other and our families. We have five beautiful children together and they remain our top priority. We ask for your privacy during this time.”

Vanessa Trump Divorcing Donald Trump Jr.

The two met in 2003 when Donald Trump introduced them at a fashion show, and were married in 2005. While Vanessa Trump often remains out of the public eye, she was recently in the news after opening a letter containing a suspicious substance. The New York Police Department ultimately deemed the letter harmless.

While they didn’t give a specific reason for the split, many are speculating that the spotlight thrust onto them by Donald Trump Sr.’s presidency was just too much.

Several Approaches to Filing Your Divorce

You’ve done the hard part: made the decision to file for divorce. But what next? There are various ways you can file for divorce, also known as a “dissolution of marriage. Below we outline several ways to approach a divorce. How you proceed will be specific to you and your spouse’s situation.

Depending on your situation you will file one of these forms of divorce:

UNCONTESTED DISSOLUTION – Both you and your spouse agree on all issues of property, debts, custody, and support. You are both enter into an agreement to all issues.

CONTESTED DISSOLUTION – Either you or your spouse, or both of you do not agree to issues regarding property, debts, custody, and support. You will be required to go before a judge so that he or she can make judgments regarding these issues as well as ensure all documents of agreement are appropriately prepared and signed off on.

SUMMARY DISSOLUTION – You and your spouse have been married for less than 5 years, have no children, no assets, no debts, and both parties are in agreement about signing the divorce petition.

PUBLICATION OF SUMMONS – When the filing party does not know the whereabouts for the other spouse, and has no way to contact them, it is necessary for the spouse to publish a divorce declaration in a local newspaper for 4 consecutive weeks to be able to proceed with the divorce filing.

Collaborative Divorce

When people think of divorce, it’s not uncommon for those thoughts to be filled with anxiety, fear of potential bickering and ill will, and fear of lawyers who will drag things out and create hostility between you as a couple. But divorce doesn’t have to be a traumatic process when you follow the process associated with a collaborative divorce.

Collaborative divorce approaches the divorce process from a different place – a place where you can avoid the court system while putting negotiations and decisions into the hands of the spouses. By utilizing specially trained professionals, opuses are able to come to a decision together.

Collaborative Divorce v. Mediation

Collaborative divorce should not be confused with mediation. In mediation, a couple works with one neutral party. But in collaborative divorce, each spouse has their own team of professionals – including their own attorney, financial advisors, etc. Both spouses and their respective teams meet to identify issues and create solutions. The time it takes to work through the process is heavily dependent on the issues that need to be worked out. The International Academy of Collaborative Professionals did a survey on the duration of the process and found 58 percent of collaborative divorce cases were completed in less than nine months.

Professionals

The types of professionals you will need for your collaborative divorce team will vary based on the specifics of your divorce. Professionals may include:

financial neutrals
child specialists
mental health professionals
business valuators
real estate evaluators

This team can help you emerge with a solid footing following your divorce. “You can tell who’s gone through the collaborative process vs. litigation,” said Amy Wolff, a specialist in the financial issues associated with divorce. “The clients who have used the collaborative option emerge from the process more ready to focus; they can bounce back more quickly.” Approaching divorce with the mindset of it being “collaborative” can help ease the tensions surrounding the divorce process.

Another Option – Legal Separation

While divorce might seem like the only option, remember that legal separation is also available. Legal separation allows couples to live apart and take a “break” from each other, while also ensuring that each spouse’s legal rights are protected via a legal separation agreement. Legal separations can also be called: “judicial separation”, “separate maintenance”, “divorce a mensa et thoro“, or “divorce from bed-and-board.” All these terms refer to the legal process by which a married couple formalizes a de facto separation while remaining legally married.

Formal Legal Separation Agreement

It’s always advised that you sign a formal legal separation agreement. This agreement outlines child support and visitation, property division, and any other aspect of a marriage. An attorney will be able to prepare this legal and binding document. This will offer you legal protection should your spouse fail to live up to his or her obligations and will also also hold up in court.

The following should be included in the legal separation agreement:

Spousal Support

Benefits – With legal separation spouses are able to retain certain benefits that were available during the marriage, such as health insurance.

Home Residency – If a couple shares a home, it should be decided at this time what will happen to the residency during the separation. The agreement should include information regarding who is able to live in the home, who is responsible for maintaining the home, and who is financially handling the home.

Joint Accounts – A legal separation agreement outlines who has access to those joint accounts such as joint checking, savings, and credit accounts. It’s often advised to close or freeze these accounts during the separation. Each spouse will then need to obtain their own personal accounts.

Protection from Acquired Debt – A legal separation agreement will shield you from being responsible for debt acquired during the time of the legal separation.

Why Pursue Legal Separation?

There are advantages with legal separation, including:

Spouses are able to maintain benefits such as a spouse’s health care plan or military benefits.
Staying legally married for 10 years allows couples certain social security benefits.
The separation period allows for a “cool off time,” during which parties can work to resolve their differences. Couples can then decide to either pursue a divorce or resume the marriage.
In some religions divorce is not allowed or recognized. Legal separation allows these religious couples to live separate lives while still remaining married and true their faith.
Legal separation can be used to solve immediate problems in couples who are uncertain about moving forward with divorce.

Steps to Follow for Legal Separation

Here are the steps you will take to acquire a legal separation:

Consider working with a family law attorney that can advise you on all the necessary steps of your legal separation.
You and your spouse will need to decide on grounds for the separation
Fill out a Form FL-100 Petition. This form includes options for divorce (dissolution of marriage) or legal separation.
If you have children under 18, you will need to complete Form FL-105/GC-120 which provides information to the court regarding children.
File Form FL-100 at your local county court. Pay any necessary fees. If you receive public benefits or have low income, you might be eligible for a fee waiver.
Serve your spouse with a copy of the court papers if they were not filed together. There will need to be proof of the serving, which can be done through various means such as a process server. A family law attorney can advise you on how to obtain this proof.

Still Considering Divorce?

If following your legal separation you and your spouse decide to move forward with a divorce, you will still need to file a divorce petition and go through the formal divorce process. Since a legal separation agreement has already been created and you mutually agree all aspects of your marriage, chances are you will be able to file an uncontested divorce. If there are still unresolved issues, you might decide you need a court’s help to come to a decision. It’s important to remember though that just because you are legally separated, that does not mean you are officially divorced. A judge will need to sign off on the final divorce papers and agreement before you can declare yourself “single.”

Working with a Divorce Attorney

It’s always advised that you consider working with a family law attorney. They will be able to advise you on any number of issues, including: child support, spousal support, marital property division, child visitation, etc… A lawyer from the expert law firm of Divorce Law LA will be able to guide you through the divorce process. The Divorce & Family Law Offices of Divorce Law LA will provide you with the highest level of expertise and professionalism from our skilled attorneys. Our Divorce and Family Law Practice spans a wide spectrum of areas that include: divorce, high net-worth divorce, marital property division, child custody and visitation, and child support.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Tags Donald Trump Jr., Vanessa Trump

Divorce Family Law High Net-Worth Divorce

Russell Crowe Auctions Off Belongings After Divorce

Post author By Scott
Post date March 12, 2018

Russell Crowe’s divorce from Australian actress Danielle Spencer is about to be finalized. He’s putting the stuff the two accumulated during their marriage up for auction at Sotheby’s Australia called, “The Art of Divorce.”

Crowe and Spencer separated roughly five years ago. As part of the auction at Sotheby’s, he’s getting rid of 227 items, including 29 luxury watches (one worth $50,000), cars, furniture, instruments, cricket gear, and film memorabilia all collected during the marriage.

The items will be available for bidding on April 7, which is both Russell’s 54th birthday — and his wedding anniversary.

Allegedly, his soon-to-be ex-wife even helped choose items to be put up for auction.

“We’ve been separated over five years now, our divorce should be finalized around the time of the auction. Just as we collaborate on the upbringing of our kids, it’s easy for us to work together on something like this. I think she feels the same way I do in regards to just moving on things that help create space for the future…On the practical side, this collection probably equates to three rooms full of things I’ll no longer have to care for, document, clean, tune, and insure,” Crowe said.

Advise from Financial Professionals During Divorce

Divorce is scary to face. As you move forward in your new life there will be a number of things you need to change: weekend schedules if you have children, perhaps addresses, maybe even your employer if you have to go back to work or get a higher paying job. There are going to be a number of unanswered questions. You don’t have to answer them all immediately, but chances are, you’ll need to answer them sooner rather than later. Here are some things to consider when it comes to your finances after divorce.

Figure Out a Budget
You might not have been the spouse in charge of the finances before. Now that you’re on your own, you’re going to have to be. This can be difficult if you’ve never taken care of a checking account. According to certified divorce financial analyst Eva Sachs, the first step toward financial independence is balancing your income with your expenses. So how do you do that? she advises that you sit down and figure out how much money is coming in (this will vary depending on what side of alimony and child support payments you’re on). After you figure this out you’ll need to assess how much of what is coming in is being spent on living expenses.

“Think of it as a spending plan rather than a budget,” says Sachs. “Knowing where your money goes is key, especially after divorce. There will be many new expenses you might not have thought about prior to your divorce; this is a critical time to refrain from spending money you don’t have.”

It might be helpful to write everything down until you have a clear picture. This will give you an up-close look at your financial habits. If you’ve never done this before, this might be a shock. It’s good to know where you can tighten up, or loosen up so that you can budget accordingly.

Change Your Beneficiaries and Will
Emily McBurney, an attorney and qualified domestic relations orders (QDRO) expert, says that somewhere at the top of your to-do list should be updating the beneficiary on your life insurance and retirement accounts.

“Review all of your accounts and insurance policies and change the beneficiaries. A divorce does not automatically terminate your former spouse’s rights to be the beneficiary on your retirement plans, bank accounts, and life insurance policies –- even though your divorce decree might say that your former spouse has waived all rights to the benefits,” she says. “You will need to formally submit a change of beneficiary form to each financial institution. Otherwise, the benefit will be paid to whoever is listed on their forms at the time of your death — regardless of your divorce.”

In addition to this, you’ll also want to revise your will, according to certified divorce financial analyst Donna Cheswick.

“Meet with an estate planning attorney to discuss your state’s laws regarding possible updates to your will, power of attorney and advanced directives,” she advises. “You want to be sure that your former spouse is no longer entitled to any distribution in the event of your death. And if your settlement agreement requires one party to maintain life insurance on the other, then there needs to be a method in place to be sure this is actually occurring. Just because the former spouse says they will do something, doesn’t mean that they are following through.”

During your marriage it made obvious sense that your spouse would be entitled to everything, but now, they are definitely not. You will need to check and then double check that all your financial and important paperwork is in your name and the names of the people that you designate, whether they be other family members or your children.

Rainy Day Fund

Now that you don’t have a spouse to lean on in times of trouble – loss of job, medical emergency, unplanned home expense – you’ll want to create your own rainy day fund. Any unexpected hits to your bank account will need to be covered by you and solely you. Protect yourself, says Sachs. She recommends creating an emergency fund you can continue adding to when you have the chance.

“An emergency fund should equal three to six months of your living expenses,” she says. “If you can swing it, I recommend six months because you’re now single and need an even bigger cushion if you are not able to work or an emergency occurs.”

Make Sure Assets Have Been Transferred

The papers are signed, your divorce is final, you can consider it over. Think again. According to Cheswick, the divorce may be finalized but your work isn’t really complete until you’ve ensured the assets awarded in the settlement have been distributed. Make sure all your t’s are crossed and i’s dotted before you skip along to singledom. Just because things have been agreed to in a settlement, that doesn’t necessarily mean they will automatically happen.

“I can’t tell you the number of people who will contact me months (and unfortunately even years) after their divorce is finalized and there are still outstanding items which have not been resolved,” Cheswick says. “Remember that the agreement is a legally binding contract that you both signed and agreed to uphold. If one party is failing to comply with the terms of the contract then the other party has every right to take steps to ensure their compliance including going back to court to have the agreement enforced.”

Enlist a Professional

It might seem like another financial burden to use a certified divorce financial planner during your divorce. In addition to legal fees it can feel like yet another financial expense. But a financial planner can save you a lot of headaches while also setting you up for a bright financial future, according to McBurney.

“Most financial mistakes that people make during and after divorce could easily have been avoided if they had sought professional assistance,” she says. “Financial planners can help you figure out how to live within your new financial realities post-divorce and develop strategies for building back your financial security. And tax advisors and CPAs can help you avoid making expensive (and very common!) tax mistakes (related to things like asset transfers, retirement, spousal and child support).”

Retirement

Retirement can be a difficult thing to face during divorce. Chances are you imagined yourself and your spouse sitting on an amazing porch, sipping lemonade, and reminiscing about your children. Just because your spouse is no longer in the equation, that doesn’t mean that you need to abandon your dream retirement life. As Sachs advises, now that the divorce process is almost finalized, look to your future and start to maximize your retirement savings.

“Don’t let divorce stop you from planning for your future,” she says, “Investing in your 401K plan will allow you to save for retirement. You can begin by saving a small amount each week and then let it build slowly or make payroll contributions that match your employer contributions. Don’t stop thinking of the future!”

Just because your future plans have changed, that doesn’t mean it can’t be a bright one. Be smart about your finances and you’ll find the financial freedom you need to help you move on and start a new life.

Working with a Family Law Attorney

As with anything regarding your divorce: child support, spousal support, marital property division, child visitation, etc… you should consult a family law attorney. A lawyer from the expert law firm of Divorce Law LA will be able to guide you through the divorce process. The Divorce & Family Law Offices of Divorce Law LA will provide you with the highest level of expertise and professionalism from our skilled attorneys. Our Divorce and Family Law Practice spans a wide spectrum of areas that include: divorce, high net-worth divorce, marital property division, child custody and visitation, and child support.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Tags divorce auction, Russell Crowe, Sotheby's, the art of divorce

Divorce Family Law Spousal Support

Understanding Spousal Support

Post author By Scott
Post date March 5, 2018

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.

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

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

Tags Alimony, alimony taxes, awarding spousal support, Spousal Support, spousal support tax laws

Child Support Family Law

Deadbeat Dad Owes $560,000 in Child Support

Post author By Scott
Post date February 27, 2018

Joseph Stroup, a man dubbed “America’s Most Deadbeat Dad” for owing $560,000 in child support, was recently arrested after being on the run for almost 20 years.

Deadbeat Dad Owes $560,000 in Child Support

In 1989 Stroup was ordered to pay $100 a month in child support for his four children. That amount was eventually lowered to $14 a month after he said he was unemployed and medically disabled. But a U.S. court discovered in 1996 that Stroup was heading a successful online business, which he sold for more than $2 million. After hearing of that, the child support order was modified and updated to take into account the amount of unreported income.

A warrant for Stroup’s arrest was issued in July of 1998 – two years after he stopped paying child support.

Joseph Stroup was detained in Calgary, Canada, 20 years after the warrant was issued. He had been living under the name Joop Cousteau.

Stroup was eventually brought to justice— but not by conventional detective work. He was finally found because of a cherry in a drink he ordered from a restaurant he regularly visited.

Scott Winograd, former general manager of the restaurant described how “One day out of the blue, [Stroup] ordered a Cherry Coke, and he wanted eight maraschino cherries in it, which is just bizarre. That just doesn’t happen.

“About a minute later, he calls the server over and he’s clutching his jaw and says, ‘I bit into a pit and broke some dental work,’ and he holds this pit up.”

The staff at the restaurant became suspicious, as maraschino cherries generally do not have pits.

The next day, according to Winograd, Stroup brought in forms that he claimed were from his dental office. The forms “looked sketchy because it was all handwritten forms… It didn’t look official by any means,” said Winograd.

Fearing Stroup would decide to sue for damages, Winograd decided it would be smart to Google Stroup. It was at that point that Winograd found an incriminating Facebook page from one of his sons, to whom he owed child support. Eventually, Winograd stumbled upon the Office of the Inspector General’s list of deadbeat dads – with Stroup’s name listed at the top.

After Winograd alerted the authorities and Stroup was detained by the Canadian Border Services Agency and transported to the U.S. on February 15. He is in custody in Detroit, awaiting trial for child support violations.

Child Support

Child support is a monthly payment that parents pay to help cover the costs associated with raising a child, such as education, health care, and after-school activity costs. Just as every child is different, the amount that needs to be paid is different, and will be based on the child’s needs, in addition to the ability of the parent to pay, in addition to some set legal guidelines.

Typically, the custodial parent – the parent who cares for the child most of the time – receives the child support payments. And the non-custodial parent – the parent that spends less parenting time – typically makes the payments. It is assumed that because the custodial parent is in legal charge most of the time, that they are already directly spending money on the child. A court is also able to order both parents to pay child support.

In cases where one parent makes more money than the other, such as in the case of Tomlinson and Jungwirth, it makes sense that Tomlinson will need to pay child support – his net worth is estimated to be $23 million.

Usually, child support is paid until the child turns 18, though there are some exceptions. Exceptions include: the child marries, joins the military, or becomes self-supporting. Other times, the support may continue until the child turns 19 if the child is still in high school and lives with a parent. Support can also be extended past the age of 19 if parents agree, or if the child is unable to become self-supporting due to a disability.

Child Support Guidelines in California

While each case will be considered separately and individually, the payment amount a parent must pay is based on California’s child support guidelines.

The guidelines follow a mathematical formula and are based on a number of factors, which we will discuss. You can calculate a rough amount by using California’s Guidelines Child Support Calculator. A court presumes that the amount given by the California’s Guidelines Child Support Calculator is appropriate, but because there are so many additional factors that can weigh into a child support decision, that amount can be unfair. Because of this, it’s advised that you work with a family law attorney that can help you get a fair amount.

In cases with special circumstances, where parents have different time-sharing arrangements than the typical, child support decisions can be difficult to determine. Examples of these special circumstances include: when the parents have equal time-sharing, but one parent has a much lower or higher percentage of income; where the child has special medical needs. In cases like these, a court will need to weigh all these special factors.

Parents are also able to pay more, if it is agreed, and also agree for one spouse to pay less. Regardless of the decision, a court will need to approve the final amount. It’s important to note that a court will always take the child’s best interest into account. This factor will always play into the decision regarding the amount of support payments, so if a couple decides to pay less, then the parents will also need to be able to prove the child’s needs will be met. Paying less support is not an option for parents who have applied for or receive public assistance. Instead, a parent who receives public assistance may agree to support payments that are at or above the amount provided by the guidelines. Additionally, the local child support services agency must also agree to the lesser amount.

Calculating Child Support Payments

To calculate what a court will want you to pay in child support, you’ll first need both parents’ net disposable income. This is the difference between gross income and what counts as deductions for child support purposes. You can either consult the California Guideline Child Support Calculator User Guide, or work with a family law attorney to determine what can be deducted.

Gross income is income from the following: salaries, commissions, unemployment, spousal support, and social security benefits. You might even need to include lottery winnings, depending on the amount. You are able to exclude child and spousal support payments actually paid and money from public assistance programs.

After determining gross income, deduct state and federal income taxes, mandatory union dues, and health insurance premiums, among other things. You can either consult the California Guideline Child Support Calculator User Guide, or work with a family law attorney to determine what can be deducted.

You’ll also need to know the following:

number of children who need support
custody (time-share) arrangement
both parents’ tax liabilities
whether a parent is already supporting children from another relationship
child’s health insurance expenses
both parents’ mandatory retirement contributions and other job-related expenses, and
all other relevant costs (health care, day care, travel, etc)

Remember that a court will require either one or both parents to contribute to the child’s health care and child care. A court also has the discretion to require additional payment for the child’s education or special needs, as well as for a parent’s travel expenses for visiting the child.

Remember that after you have calculated your child support payment, that this is just an estimate until a court reviews it and approves it. A family law attorney is a great way to ease this process, as it can be overwhelming to calculate.

You Must Pay Child Support

Every parent that is ordered to pay child support, must do so. A parent that avoids paying by refusing to work or working less very rarely gets away with it. A court can “impute” income. This means that the court will look at factors like employment history, education, and training and come up with an amount of income that a parent should be earning.

Modifications to the Amount of Child Support

Even if a child support payment has been agreed to, it can be modified. This is usually only granted if there has been a significant change in financial or time-share circumstances.

Such circumstances include: job loss, increase in income, or a shift in how much parents are spending with the child. Other reasons include: when a parent has another child with a different partner or when a parent has an extended illness or goes to jail.

When a modification request is made, the court will consider both parents’ current financial situations and time-share. Sometimes when parent’s income has decreased, that parent’s child support payment goes up due to the time-share factor. Child support payments tend to increase when a parent’s percentage of time-share decreases. A court will need to recalculate time-share amounts in addition to the changes in income.

A Family Law Attorney

But when it comes to the actual legal process of determining child support and payment, you’ll want to work with a skilled family law attorney. There are a number of things that a family law attorney will be able to advise you on, including: 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

Tags deadbeat dad, Joseph Stroup

Divorce Family Law High Net-Worth Divorce

How Ashton Kutcher Moved Forward After Divorce

Post author By Scott
Post date February 21, 2018

As a way of moving forward from his divorce from Demi Moore, Ashton Kutcher spent a week in the mountains with no food. The actor recently gave an interview during which he discussed how he moved forward after the break-up of his marriage.

How Ashton Kutcher Moved Forward After Divorce

Ashton Kutcher, 40, and Demi Moore finalized their divorce in November 2013, nearly two years after the pair announced their split.

“Right after I got divorced, I went to the mountains for a week by myself,” Kutcher said. “I did no food, no drink — just water and tea. I took all my computers away, my phone, my everything. I was there by myself, so there was no talking. I just had a notepad, a pen and water and tea — for a week.”

The actor also practiced Tai Chi and wrote letters to every person he’d ever been in a relationship.

“I wrote down every single relationship that I had where I felt like there was some grudge or some anything, regret, anything. And I wrote letters to every single person, and on day seven, I typed them all out and then sent them,” he explained.

He went on to describe the experience as “really spiritual and kind of awesome.”

Kutcher married current wife, Mila Kunis, in July 2015. The two have two children.

Move Forward After Divorce Just Like a Celebrity

We know celebrities go through divorce… a lot. But they also take the time to move forward. And they do so in various ways. Some decide to stay out of the limelight – they take a break from social media, etc… Others decide to go for the revenge body. Others immediately jump into new roles and the work they became famous for. Whatever route you choose, make sure it serves your purpose.

Moving forward after divorce means that every day you will need to purposefully carve out time progress and improve. It’s so easy for life to get sucked into the vacuum of a busy schedule. As Professor Harold Hill once said: “You pile up enough tomorrows, and you’ll find you are left with nothing but a lot of empty yesterdays.”

Get Out of Survival Mode

Following your divorce you might find your life is filled with the nonessential and trivial. Do you check your ex-spouse’s Facebook every day to see if he or she is dating someone new? Do you obsess and get frustrated with every communication that comes from your ex? Are you resentful? How are you channeling all these new feelings? Are you just trying to survive?

It’s time to take your life back into your own hands.

It’s not uncommon to realize that you were living your life on someone else’s terms. But everything is in your hands now. With a lot of work and strong intention you can design your future. You have to realize you are responsible and you must decide to make a change. Here are some first steps to making that giant leap into your new life:

Wake up
Get yourself in the zone
Get yourself moving
Eat well
Get ready and inspired
Get perspective
Do something that will move you forward

Get Enough Sleep

Despite the fact that sleep is just as important for life as eating and drinking water, millions of people do not get enough sleep.

According to the National Sleep Foundation (NSF) 40 million Americans suffer from over 70 different sleep disorders. Additionally, 60 percent of adults and 69 percent of children have one or more sleep problems at least a few nights during a week.

It makes sense then that more than 40 percent of adults experience daytime sleepiness that is severe enough to interfere with daily activities at least a few days every month.

Getting the right amount of sleep can help you have a longer life, increased creativity, memory, attention, and focus. It can help to lower stress and your risk for depression.

Bottom line: you need your beauty sleep.

Find Clarity and Abundance

You need to focus on moving forward toward the positive things in your life. What you set your focus on expands. After waking up from a restful night’s sleep, prayer and meditation can help you orient yourself toward the positive.

Focus on what you are grateful for. This could be the fact that you are out of a relationship and marriage that did not serve you. Maybe you’re just grateful for the fact the sun is shining. There are limitless opportunities and possibilities for you. That air of gratefulness will only draw more positive and good to you.

Start every morning by getting yourself into a space of gratitude and clarity.

Get Some Physical Activity

By now you know you need to get your exercise. Still, according to the Center for Disease Control’s National Health Interview Survey, only one-third of American men and women between the ages of 25 to 64 engage in regular physical activity.

Regular exercise is can decrease your chance of depression, anxiety, and stress. It’s also been linked to higher success in people’s careers. Any form of exercise works: the gym, yard work, cleaning. Just get your body moving and every aspect of your life will thrive.

Eat/Drink 30 Grams of Protein

Eating protein first thing decreases cravings for white carbohydrates (the type of carbs that can make you fat. Donald Layman, professor emeritus of nutrition at the University of Illinois, recommends eating or drinking at least 30 grams of protein for breakfast. In The 4-Hour Body by Tim Ferriss, he recommends getting 30 grams of protein 30 minutes after waking up.

Food rich in protein will help you feel fuller for longer because they take longer for the body to digest. Protein also keeps blood-sugar levels steady, and thus prevents hunger spikes.

According to Ferriss, eat at least 40% of your breakfast calories as protein: two to three whole eggs, turkey bacon, organic pork bacon or sausage, or cottage cheese. You can also do a protein shake made with water. If you follow a vegetarian or vegan diet you can eat legumes, greens, nuts, and seeds.

Take A Cold Shower

Every morning motivational speaker and life coach Tony Robbins jumps into a 57-degree Fahrenheit swimming pool.

Cold water immersion has been shown to radically facilitate physical and mental wellness with regular practice. It not only changes your body’s immune, lymphatic, circulatory and digestive systems, but it can also increase weight-loss because it boosts your metabolism.

A study done in 2007 found that cold water triggers mood-boosting neurochemicals that make people feel happier. The study concluded that because of this, taking cold showers routinely can help treat depression symptoms. Often, cold showers are more effective than prescription medications.

Sure, none of us wants to step into a cold shower, but try to think of it like getting into a swimming pool. The first 20 seconds feels terrible, but once you’ve done it, it’s fine.

Those who do this report feeling an increase in willpower, creativity, motivation, and inspiration.

Do You Have a Life Vision?

If you haven’t written down your short and long-term goals, you should. Just reviewing them a few minutes a day can put your day into perspective. Chances are some things have changed after your divorce. Take some time to re-focus your energy on what you really want to accomplish.

Reading your long-term goals every day will make sure you think about them every day. As you spend your days working towards your goals, they’ll manifest.

There’s a science to achieving goals, which removes the confusion and ambiguity of them. If you stick to a pattern, you can accomplish your goals, regardless of if they are large or small.

Write them down and review them every single day.

Moving Forward

A divorce can shatter your life if you let it. So don’t let it.

Every day you can move forward with these steps. Put a plan in place to succeed. Every step on that plan brings you closer to your dreams. Maybe that means finally having a day where you don’t feel guilty or sad about your divorce. Maybe it’s a day of less resentment. Maybe it’s a day where you focus on getting healthy by preparing a good meal for yourself.

Making small steps every day like the ones outlined above will change your life. And as a result, the universe will respond to you in beautiful ways.

Working with a Family Law Attorney

Whatever your reason is for divorce, you should consider working with a family law attorney. They will be able to advise you on any number of issues, including: child support, spousal support, marital property division, child visitation, etc… A lawyer from the expert law firm of Divorce Law LA will be able to guide you through the divorce process. The Divorce & Family Law Offices of Divorce Law LA will provide you with the highest level of expertise and professionalism from our skilled attorneys. Our Divorce and Family Law Practice spans a wide spectrum of areas that include: divorce, high net-worth divorce, marital property division, child custody and visitation, and child support.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Tags ashton kutcher, demi moore

Family Law Marital Property Division Spousal Support

Financial Tips for Your Divorce

Post author By Scott
Post date February 13, 2018

Finances can be hard to manage in general, but if you are going through a divorce, they can feel almost impossible. There are a number of things to consider: will you be receiving alimony or paying it? Child support? What will your “single life budget” be? You’ll want to address these questions as soon as possible. Below we offer some financial tips for your divorce.

Financial Tips for Your Divorce

Build a Team

“Don’t go it alone,” says Mike Lynch, vice president of strategic markets at Hartford Funds. “Build a team today – a qualified team of legal, tax and investment professionals. Maybe it’s your current investment professional, or you may seek a new one that understands your situation better.”

But not just a team of legal and financial professionals – you’ll also want to build a team of “emotional professionals,” such as friends or a therapist that can help you deal with any emotional pain that you are experiencing.

There are some additional things you can do to help your emotional well-being, including:

Waking up and getting out of bed each morning
Get yourself in the “moving forward” zone
Eat well
Get inspired
Get perspective
Do something that will propel you forward instead of just dwelling

These can feel very hard to do following divorce, but if you can place one foot in front of the other, and just try to keep moving forward, it can help a great deal in not feeling overwhelmed by the experience.

Be Civil When Dealing with Your Ex

When it comes to working out aspects of a divorce, including marital property division, alimony, and child custody and visitation, you’re going to want to at least try to be civil with your ex. This might mean working with a relationship therapist that will advise the both of you on how to find a common ground. At the very least, you need to find a way to communicate with each other without having it end in a shouting match. Sometimes email is the best – where people can state the facts. Texts can also work. If you feel comfortable talking with your ex, just remember to record your interactions and what was discussed. Senior vice president of David A. Noyes & Co., Linda M. Conti knows divorce first-hand. “My parents went through a bitter divorce,” she says. “They separated when I was 3 and the divorce was final when I was 6. I grew up living through ‘what not to do to your kids during a divorce.’ I wish someone could have counseled my parents better through all aspects of the divorce.” You have to remember that staying calm is the best way to resolve the financial aspects of a divorce.

Property Division

Marital property division can be one of the most contentious aspects to be decided during a divorce. State laws govern how the marital property will be divided. You will need to check with an attorney to see if you live in an equitable distribution state or a community property state.

There are four other steps that need to be considered when diving marital property:

Identify the assets owned by you and your spouse
Categorize all assets as marital or non-marital property
A value will need to be assigned to the assets
Devise a plan for the division of assets that is in accordance with state laws

Consider Selling Shared Property

It’s always advised that you sell the primary home instead of having one spouse keep it. Retaining ownership of a home – or the question of who will retain ownership – can often lead to issues. Questions such as: who will take care of maintenance and who will take the utility bills need to be answered. It’s often advised that a couple sells their home and split the proceed of the sale. That way, both sides receive an equal amount.

When it comes to a secondary home, “It’s much more effective to sell the house and distribute the proceeds to the children,” says Ric Edelman, chairman and CEO of Edelman Financial Services. “You get into the issue of fights amongst the kids – issues of maintenance, repairs and upkeep.”

Work with a Divorce Financial Analyst

You might consider working with a divorce financial analyst that can help with your settlement by:

Locating assets. This also includes hidden assets.
Ensuring information about family finances is accurate and complete.
Developing a long-term forecast of how your divorce will affect your finances when it comes to retirement needs, tax liabilities, and benefits.
Developing a realistic household budget so that you know where you stand in terms of life insurance, health insurance, and cost-of-living increases.
Appraising and/or valuing assets.
Preparing financial affidavits that describe your financial and tax implications when it comes to various divorce settlement options.
Mediating a financial agreement between you and your soon-to-be ex-spouse.

Update Your Beneficiaries and Your Will
Emily McBurney, attorney and qualified domestic relations orders (QDRO) expert, advises you update your beneficiary that is listed on your life insurance and retirement accounts. It might not make sense now if your primary beneficiary is your ex spouse.

“Review all of your accounts and insurance policies and change the beneficiaries. A divorce does not automatically terminate your former spouse’s rights to be the beneficiary on your retirement plans, bank accounts, and life insurance policies –- even though your divorce decree might say that your former spouse has waived all rights to the benefits,” says McBurney. “You will need to formally submit a change of beneficiary form to each financial institution. Otherwise, the benefit will be paid to whoever is listed on their forms at the time of your death — regardless of your divorce.”

You’ll also want to do this for your will.

According to certified divorce financial analyst Donna Cheswick, “Meet with an estate planning attorney to discuss your state’s laws regarding possible updates to your will, power of attorney and advanced directives. You want to be sure that your former spouse is no longer entitled to any distribution in the event of your death. And if your settlement agreement requires one party to maintain life insurance on the other, then there needs to be a method in place to be sure this is actually occurring. Just because the former spouse says they will do something, doesn’t mean that they are following through.”

Have a “Single” Financial Plan

When you were married, chances are you had a second income coming in to help with things like child care, the mortgage, and other utilities. You might now be receiving or paying spousal support or child support. You also may not be receiving any kind of support. Whatever your new financial picture is, you’ll need to know how to budget according to your new income amount. Putting this together before entering the divorce process will help you understand your needs following the divorce so you can come to a settlement that works.

Make sure you plan for college tuition, child care, children’s lessons, sports and activities, and your own retirement, taxes, transportation and housing. It’s hard to plan for the unknown future, but try to get an idea of what your 1 year, 5 year, and 10 year financial needs will be.

Financial Future

Considering your financial situation after your divorce can feel daunting and overwhelming, but if you take the right steps, you can be sure to set yourself up for financial freedom. It might take some tweaks, but consider the fact that you are now completely in charge and able to make your own decisions regarding how your money will be spent. Embrace it, and embrace the freedom you now have.

A Family Law Attorney

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

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

Tags Divorce, divorce attorney, divorce finances

Divorce Family Law High Net-Worth Divorce Mediation Spousal Support

A New Tax Law May Spur More Divorces

Post author By Scott
Post date February 5, 2018

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.

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

Tags Spousal Support, spousal support awards, tax law