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Child Custody Child Support Child Visitation Collaborative Law Divorce Family Law High Net-Worth Divorce Marital Property Division Mediation Spousal Support

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 High Net-Worth Divorce Spousal Support

New Tax Laws and Your Divorce

If you’re planning to get divorced this year, you might want to act fast. New tax laws will be taking effect soon.

What New Tax Laws Mean for Your Divorce

The Tax Cuts and Jobs Act will effect divorces that happen after December 31, 2018. Under this new law, a taxpayer will no longer be able to deduct the alimony payments that are made to an ex-spouse. And the alimony recipient will no longer pay taxes on that income.

At the beginning of 2018, it was predicted that this new law would cause a big rush on divorces, due to the fact that people would try to get the divorce in before the tax law went into effect. Turns out, that big rush hasn’t quite happened.

According to divorce attorney Malcolm Taub, of Davidoff Hutcher & Citron in New York, “It is a drastic change, but it seems like people are living with it.”

Despite the fact that people aren’t in as big a rush, these new tax laws will mean big changes to how your financial picture after divorce will look. As always, it’s advised to work with a divorce attorney that knows the new laws.

Financial Tips for Your Divorce

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.

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.

woman-4

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:

  1. Identify the assets owned by you and your spouse
  2. Categorize all assets as marital or non-marital property
  3. A value will need to be assigned to the assets
  4. 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.

When You Might Consider a Lawyer for Personal Injury Claims

“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

Categories
Child Custody Child Support Child Visitation Divorce Family Law Spousal Support

Why You Need to Work with a Divorce Lawyer

There are numerous online sites offering quick and easy divorces without having to work with a divorce lawyers. While many of these sites may work for smaller, less-involved divorces, they might not be the way to go for more intense divorces. When it comes to deciding on issues of child custody and spousal support, you might want to consider working with a divorce attorney.

Child Custody

Child custody issues can quickly become complicated. This is especially the case if the parents are not able to work together to co-parent or develop a successful co-parenting situation.

There are different forms of child custody: legal custody, physical custody, sole custody, and joint custody.

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Physical Custody

Physical custody means a parent has gained the legal right (typically through a court ruling) to have a child live with him or her. Usually if a parent has physical custody they also have sole custody of the child, which means the other parent has visitation rights.

Sole Custody

There are two forms of sole custody a parent can have: sole legal custody or sole physical custody. Courts seem to be moving away from awarding sole custody to one parent as more information is coming out about the importance of having both parents in a child’s life. In cases where a parent has been deemed unfit due to a history of neglect or abuse, a known dependency on drugs or alcohol, or a new parented that has been deemed unfit, a court will usually award sole physical custody to one parent.  It’s advised that unless a parent has demonstrated the above issues, that you do not seek sole custody, due to the importance of having both parents in a child’s life.

While the trend is to award joint custody, in cases where courts do award sole physical custody the parents still usually share joint legal custody (which means both parents are able to make legal decisions regarding the child), unless a parents has been deemed unfit to make those legal decisions.

Legal Custody

Legal custody allows a parent to make decisions regarding various aspects of a child’s life, including: education, religion, and medical care or legal issues.

Joint Custody

Joint custody is abel to be awarded to the parents if they are divorced, separated, no longer living together, or if they never lived together but still shared a child. The awarding of joint custody to both parents means each parent is able to make decisions regarding the child. Joint custody also comes in various forms, including: joint legal custody, joint physical custody, or joint legal and physical custody. Usually if a couple shares joint physical custody they also share joint legal custody. But if a couple shares joint legal custody they do not always also share joint physical custody.

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.

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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.

Working with a Divorce Attorney

If you are facing a child custody dispute or issues with spousal support you should contact a divorce attorney. Because there are a lot of rules surrounding child custody and spousal support decisions, working with a divorce attorney can help you through the process.

Divorce Law LA, Esq.

Divorce Law LA

33 S. Catalina Ave. Ste. 202

Pasadena, Ca. 91106

(626) 478-3550

https://bestdivorcelawyer.co

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

What New Tax Laws Mean for Your Divorce

If you’re planning to get divorced this year, you might want to act fast. New tax laws will be taking effect soon.

What New Tax Laws Mean for Your Divorce

The Tax Cuts and Jobs Act will effect divorces that happen after December 31, 2018. Under this new law, a taxpayer will no longer be able to deduct the alimony payments that are made to an ex-spouse. And the alimony recipient will no longer pay taxes on that income.

If you are going to be making alimony payments, or you even have a slight inclination that you might be facing alimony payments, you may want to have your divorce finalized before then.

The need for quickness? Since some states, such as California, require a six-month waiting period for a divorce to be finalized, if your divorce has not been started, you might miss the deadline for the alimony deduction.

“If someone is thinking of filing for divorce this year and they want to take advantage of alimony rules that are in place today, they need to start acting soon, because the clock is running out,” said Megan Gorman, managing partner at Chequers Financial Management.

In California, alimony payments generally last for half the life of the marriage unless the couple has been married for at least 10 years, in which case those payments can last for life.

Financial Tips for Your Divorce

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.

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.

woman-4

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:

  1. Identify the assets owned by you and your spouse
  2. Categorize all assets as marital or non-marital property
  3. A value will need to be assigned to the assets
  4. 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.

When You Might Consider a Lawyer for Personal Injury Claims

“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

Categories
Divorce Family Law Paternity Spousal Support

Determining Paternity

Determining Paternity

There are numerous reasons for why you would seek to prove the paternity of your child‘s father. These reasons are not just for being able to receive child support. Being able to legally prove paternity also opens the door to the ability of your child receiving legal rights to social security or Veteran’s benefits, or possible inheritance – in the event that the birth father passes away.

What is Paternity?

Paternity is “the state or condition of being a father.” It’s important to establish this for numerous reasons – we will go into this further below – but either the mother or the father of the child may file the Petition to Establish Parental Relationship of a child. When paternity is established (should it not be evident) through a paternity test, a court will make decisions on the issues of child custody, child support, and child visitation.

Reasons for a Paternity Test

Financial

It can be hard to raise a child on one income. A mother seeking child support compensation will need to prove that the man she is seeking child support payments from is actually the father.

Un-Located Fathers

Often times a woman seeking child support will have to deal with a father that cannot be located. Most states have measures in place to track down these fathers that claim they are not the father.  Once a man is located, a court will issue a paternity test to determine if the man is the father. This will then determine if the man needs to provide child support.

Helpful for Fathers

Paternity tests determine if a child is yours or not.  If you are unsure of your paternity, a paternity test is the only way you will be able to legally say you do not need to make child support payments.

A Note About At-Home Paternity Tests

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While many “at-home” paternity tests exist, only tests taken in court-approved locations can be deemed as legally official. These paternity tests require an approved official, such as a laboratory employee, to collect DNA. The test cannot be handled by either parent in order to prevent possible tampering.

Establishing Paternity

To establish paternity, you will need to do the following:

  • If you were married to your husband when your child was born, it is legally assumed that you are the legal father.
  • If you were not married when your child was born, you must legally determine the father of the child through a court-approved paternity test. This test will be the definitive answer on paternity.

Prove Paternity Cases

When parents are unmarried at the time of conception or birth of a child it can be difficult to establish paternal rights through a paternity case. Because these types of cases can be complex, it helps to consult an experienced family law attorney. Below are some legal guidelines for paternity cases.

California Family Code section 7570

California Family Code section 7570 states “there is a compelling state interest in establishing paternity for all children.” This is because “establishing paternity is the first step toward a child support award.” Paternity is used as basis for child custody and visitation orders. A father’s paternity must be determined in order for the child to receive the following: health insurance, social security, military benefits, and inheritance rights. The code states, “knowing one’s father is important to a child’s development.”

California’s Procedure For Voluntary Paternity

California has an established procedure for establishing voluntary paternity. When a child is born and the parents are unmarried, the parents are able to sign a Declaration of Paternity that establishes they are the legal parents of the child. Signing this form is completely voluntary for both parents.

This declaration can be signed at the hospital when the child is born. If signed at the hospital, the father’s name will go on the child’s birth certificate. This means that the mother does not need to go to court to prove who the father of the child is.

You are not obligated to sign the letter at the hospital. But, if the parents decide to sign this form after the child’s birth certificate has been issued, a new birth certificate will need to be issued with the father’s name.

Signing this form when you are unmarried parents saves both parties, as well as the court, time and money when it comes to determining paternity.

Child Custody

There are different forms of child custody: legal custody, physical custody, sole custody, and joint custody.

1. Physical Custody

Physical custody means a parent has gained the legal right (typically through a court ruling) to have a child live with him or her. Usually if a parent has physical custody they also have sole custody of the child, which means the other parent has visitation rights.

2. Legal Custody

Legal custody allows a parent to make decisions regarding various aspects of a child’s life, including: education, religion, and medical care or legal issues.

3. Joint Custody

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Joint custody is able to be awarded to the parents if they are divorced, separated, no longer living together, or if they never lived together but still shared a child. The awarding of joint custody to both parents means each parent is able to make decisions regarding the child. Joint custody also comes in various forms, including: joint legal custody, joint physical custody, or joint legal and physical custody. Usually if a couple shares joint physical custody they also share joint legal custody. But if a couple shares joint legal custody they do not always also share joint physical custody.

Joint Child Custody Arrangements

Joint Child Custody can take various forms, such as:

joint legal custody – where the parents share the decision-making responsibilities.

joint physical custody – where children spend time with each parent separately.

joint legal and physical custody – a combination of the above.

Joint Child Custody – Advantages and Disadvantages

There are advantages and disadvantages to joint child custody. While it ensures children continue contact with both parents, children still need to be shuttled from one parent to the other. This can be a difficult situation for non-cooperative parents, and thus can be a hard situation for children stuck in the middle. Regardless of if parents are cooperative or non-cooperative, it’s crucial that all financial records of groceries, finances associated with a child’s after school activities, medical care, and clothing are kept. In cases where parents argue about these things, a judge will appreciate finely detailed records. If parents can maintain a positive parenting schedule and approach, and keep the child’s best interests in mind, joint custody can be a positive and comforting experience for a child.

4. Sole Custody

There are two forms of sole custody a parent can have: sole legal custody or sole physical custody. Courts seem to be moving away from awarding sole custody to one parent as more information is coming out about the importance of having both parents in a child’s life. In cases where a parent has been deemed unfit due to a history of neglect or abuse, a known dependency on drugs or alcohol, or a new parented that has been deemed unfit, a court will usually award sole physical custody to one parent.  It’s advised that unless a parent has demonstrated the above issues, that you do not seek sole custody, due to the importance of having both parents in a child’s life.

While the trend is to award joint custody, in cases where courts do award sole physical custody the parents still usually share joint legal custody (which means both parents are able to make legal decisions regarding the child), unless a parents has been deemed unfit to make those legal decisions.

Filing For Sole Custody

While most courts favor joint custody, if you feel the parent you share a child with is unfit you can file for sole child custody of your child. Here are the steps to do so.

File Correct Forms

You’ll want to either work with a court clerk or your family law attorney to determine which forms you’ll want to use when petitioning for sole child custody. The type of petition you file is dependent on your specific circumstances. Here are some examples of petitions to file:

  • petition to update existing child custody orders
  • petition to establish custody
  • petition to establish paternity and install custody

Make sure your family law attorney reviews all forms prior to your submission. This will ensure everything is filed correctly and in the way that will ensure the outcome you want. Make a copy for yourself and for the other parent. The court will keep the original.

Get a Mediation or Hearing Date

Once your sole child custody petition is filed, you will get a date for either a mediation session or court date. Both you and the other parent need to be present at this date in order to meet a final agreement regarding the child’s custody.

Work with a Family Law Attorney

The first thing you should do if you are seeking paternity or having to deal with custody disputes is hire a family law lawyer that works with child custody cases. A lawyer will be able to help you decide your best course of action based on your situation. Additionally, it’s important to remember that filing for child custody does not necessarily mean you get child support. But a child custody order does not automatically give you child support.

For advice on child custody or child 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
Family Law Marital Property Division Spousal Support

Financial Tips for Your Divorce

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.

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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:

  1. Identify the assets owned by you and your spouse
  2. Categorize all assets as marital or non-marital property
  3. A value will need to be assigned to the assets
  4. 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.

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“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

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

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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