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Unfortunately, the other spouse may have a hard time detecting when this has been done, especially if they lacked full access to the couple’s financial information during their marriage. In a high-net-worth situation, where complex assets are involved, there may be reams of data to wade through to try to pin down why the financial disclosure that has been presented seems to be too low, without obvious explanation. In these circumstances, a forensic accountant is invaluable in determining if assets have been hidden and how.
A forensic accountant is a financial professional who combines accounting, auditing, and investigative skills to detect fraud, uncover financial irregularities, and piece together a complete picture of complex financial dealings when there is a suspicion of illegal or deceptive activities. These skills may be used in a variety of contexts. For example, a forensic accountant may be called in to assist law enforcement agencies in investigating cases of securities fraud, embezzlement, money laundering, or other white-collar crimes. They may also be employed by private companies to help prevent accounting malpractice, or to conduct financial reviews for high-value transactions such as mergers and acquisitions.
In the content of divorce proceedings, a forensic accountant may be brought in when there are complex asset division issues to resolve or when it is believed that one spouse may be attempting to hide assets. Full financial disclosure is a legal requirement in divorce in California, necessary to calculate both a fair division of marital property but also to establish spousal and/or child support. Thus, hidden assets can have serious long-term implications for the financial well-being of the spouse who is the victim of the deception. A forensic accountant may also be called on to distinguish separate property from marital property in circumstances where the ownership of such assets has become muddied by commingling with marital property.
The career path of a forensic accountant starts out like that of regular certified public accountants (CPAs). They start with an undergraduate degree in accounting, finance, or similar fields. They may also pursue advanced degrees in accounting, business administration, or forensic accounting.
A forensic accountant will also tend to have other professional certifications that testify to their knowledge and skills. In addition to a CPA, they may also hold a Certified Fraud Examiner (CFE) credential, a Certified in Financial Forensics (CFF) credential, and/or an Accredited in Business Valuation (ABV) credential. Each of these require added study and examinations to verify their knowledge and skills in the applicable area, and some require a CPA prior to credentialing.
A forensic accountant may use a variety of different approaches for uncovering hidden assets, depending on the exact circumstances of the couple. The goal is to put together a complete financial story, which can require scrutinizing many different types of records and documentation for clues that when put together create a full picture. Their task will generally start with examining records provided by their client such as bank account and brokerage statements, tax returns, credit card statements, and other financial documents. They may also need to examine business records if either spouse owned their own company.
What does a forensic accountant look for in these records? In a global sense, they look for details that don’t make sense in the overall context of the couple’s finances. It could be something as obvious as a transfer to an unknown account that, in essence, simply vanishes off the books. But discrepancies may be more subtle, such as a comparison between W-2 and/or K-1 income and bank deposits showing that what has been reported on tax forms isn’t matching what ended up in the couple’s accounts. Or there may be deductions for expenditures on a tax return, or royalty income, that can hint at undisclosed assets. A forensic accountant will also scrutinize transfers of assets to family and friends, or payments for “debts” that had been previously unknown or undocumented. They may also look for unusual activity in the business, such as movement of funds to outside accounts or the creation of false expenses to devalue the company.
Their analysis of what is initially provided may lead to additional avenues of inquiry that require legal action to pursue. In these instances, the forensic accountant will work with the client’s family law attorney to request the production of additional information and/or compel testimony that can provide the missing pieces to explain where diverted funds or assets have gone. They will also produce a written report and may be called on to provide oral testimony regarding their findings to the court.
When it is suspected that one party in a divorce has taken deliberate steps to conceal assets, a forensic accountant can be invaluable for ensuring that the inventory of marital property and income necessary for a fair property division is accurate and complete. The family law attorneys at Hoover Krepelka in Silicon Valley are experienced in complex property division, and we understand when a forensic accountant is necessary to reveal the hidden truth of your financial picture. We partner with professionals selected for their expertise in family law cases and their experience in providing compelling court testimony. To schedule a consultation, fill out the form below today.
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]]>The post What Types of Adoptions are Available in California? appeared first on Hoover Krepelka, LLP.
]]>The most common type of adoption of a minor child in California, is a stepparent adoption. Fortunately for many, California recognizes the right for a stepparent to legally adopt their spouse’s biological child. In doing so, the stepparent is honored with all the legal rights and responsibilities of being that child’s legal parent alongside their spouse. In turn, this terminates the other biological parent’s parental rights and responsibilities.
A stepparent adoption can be very straightforward and mirror that of an administrative proceeding, provided that the non-spouse parent consents to the adoption. In this scenario, a hearing may not even be necessary and a social services agency will conduct an investigation to determine whether the adoption is in the child’s best interest. The agency will prepare a report, which will be submitted to the court, and the adoption process can be completed within a matter of only six months.
California courts further have the authority to award an adult adoption. An adult adoption is the process by which an older adult adopts a younger adult. Although an adult adoption carries no requirement for any existing relationship between the adopter and adoptee, it is typically sought by a stepparent, adopting their partner’s adult child. Through this process, a brief hearing will be conducted, and the adoptive parent will be awarded a legal parent-child relationship with the adoptive adult child, terminating the parental relationship of the parent to be displaced. With this relationship, the adoptee can legally inherit property from the adopter.
Once the adoption is granted, the adoptive adult child may take the adoptive parent’s last name or change their name completely, if so desired. The adoptive adult child may also amend their birth certificate to reflect the new parent-child relationship.
With numerous forms of adoption, selecting the right attorney with experience in both minor and adult adoptions will help smooth the process and ensure legal compliance. Learn more about the expertise of the attorneys at Hoover Krepelka. And how we can eliminate the headache to guide families through the adoption process.
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]]>The post How Our Firm Navigates Athlete Divorce Settlements with a Focus on Spousal Support appeared first on Hoover Krepelka, LLP.
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Unfortunately, thanks to the unusual nature of athletic careers, divorce can be a financial disaster—or a financial time bomb—for both the athlete and their non-athlete spouse. Enlisting a family law firm experienced in dealing with the complexities of how athletes earn their wealth, how that impacts the division of assets and spousal support, and the damaging impact social media can have is essential for producing the best possible outcome. Hoover Krepelka understands the risks involved in divorce for professional athletes and has a track record of obtaining positive results for our pro athletes and other high-net-worth clients. We can help limit the financial fallout from your divorce.
Help Secure My Financial Future
Divorce poses a serious financial risk for those who, realistically, have only a short period of time to take advantage of their peak earning potential. Unlike those in traditional professions who can have decades-long careers with steadily rising income, professional athletes achieve their top income in a short period. Once they retire, in most cases, their ability to earn drops precipitously. Sadly, a large number of athletes experience bankruptcy or financial distress within years of retirement.
When a divorce occurs during a player’s active career, the division of assets can result in a huge payout to the non-athlete spouse, especially when there was no prenuptial agreement to limit the non-athlete spouse’s claim to assets. More problematic is that the current high level of income can potentially result in a spousal support award that may be unsustainable.
Deciding what is marital property and what is separate property when a professional athlete is divorcing often requires a close reading of team contracts and endorsement agreements. If such a contract guarantees certain future income, that could conceivably be considered marital property subject to division. More often, contracts stipulate a certain level of performance. Because payment can be withheld if the athlete is unable to fulfill their obligations, that future income is likely to be considered separate property. It is to be expected that each side will argue for the characterization of assets most favorable to their party, so having legal representation knowledgeable about potential issues is essential for negotiating equitable divorce settlements.
Someone divorcing a pro athlete may also seek an amount of alimony high enough to sustain the lifestyle they enjoyed during marriage. Whether they’re granted the amount they seek and how long spousal support will last depends on many factors. In California, spousal support is generally limited to up to half the length of the marriage for short-term marriages. But if the marriage has lasted ten years or more, spousal support could continue indefinitely.
A non-athlete spouse in a long-term marriage who sacrificed educational opportunities or professional advancement to support the athlete’s career may feel entitled to the maximum they can get in spousal support. That high award may do more harm than good, however, if the athlete cannot continue paying it. It is ultimately in the best interests of both parties to work out a level of support that will enable both to remain financially stable.
Professional athletes, like other celebrities, rarely get to enjoy privacy in their personal lives. An athlete’s good reputation, however, can be directly tied to their income. When a messy divorce spills over into social media disputes, athletes stand to lose endorsements, sponsorship deals, or professional contracts. Even if they manage to hold onto their current deals, a tarnished image could cause other companies to shy away—and again, the window in which pro athletes can make the most of their careers is short. The damage can be permanent. This benefits nobody.
Hoover Krepelka’s experience with past pro-athlete divorces informs our insight into the damage social media can do. We navigate the court system to make sure everything possible is done to mitigate any image issues that could affect an athlete’s current and future opportunities.
In sports, an athlete’s skill and perseverance elevate them to the top of their game. The support of their team, however, is the necessary ingredient that creates the environment for winning. The same approach applies to Hoover Krepelka and our attorneys.
We know how complex and stressful a professional athlete’s divorce can be. Thus, we assign a minimum of two attorneys, a paralegal, and a legal assistant to each case. By creating a strong team for our client, we ensure that both the client and the attorneys are supported and set up for success. If you need a team to help you navigate a professional athlete divorce, the attorneys at Hoover Krepelka are here for you. Fill out the form below to schedule your consultation today.
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]]>The post Behind the Scenes: How Athlete Divorce Settlements Impact Child Support Agreements appeared first on Hoover Krepelka, LLP.
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The ordinary application of child support guidelines can put a pro athlete at a financial disadvantage. Understanding how child support payments are determined, the unusual challenges faced in determining appropriate child support in a pro athlete’s divorce, and when the court has the discretion to modify child support payments highlights the importance of paying close attention to this aspect of divorce settlements.
Help Me With My Child Support Case
Parents share financial responsibility for their children. When a couple divorces, it is usually the case that the higher earner is responsible for paying child support to the lower earner to help pay for the living and medical expenses of the children until they are adults. (In general, this means until the child is 18, or, if they are still in high school, until they graduate or turn 19, whichever comes first.) In California, the goal is not merely for the children to have a minimal acceptable standard of living, but for them to share in the standard of living of both parents.
California has a formula established by law to help determine the amount of child support. The two primary factors that influence how much child support should be paid are the income of each parent and the time the children spend with each parent. However, the court is not locked into simply taking the number generated by the formula if applying it results in a number that is unjust or inappropriate. This point is important because a pro athlete is highly likely to be in a situation where the basic formula will return numbers that don’t make sense.
Professional athletes at the height of their careers can enjoy extraordinarily high incomes from multiple income streams—team contracts, endorsement deals, compensation for media appearances, and the like. Simultaneously, their demanding schedules of training and travel for games can make working out anything like 50-50 shared physical custody impossible. Taken in combination, these factors can make it appear that a steep monthly child support payment is correct.
This snapshot doesn’t represent the long-term situation, though. Keep in mind that Tom Brady’s recent retirement from football at age 45 was notable because it was late for a pro athlete—most players retire much earlier, even if their careers are not prematurely ended by injury or team decisions that force them out in favor of newer talent. In short, the high income a pro athlete enjoys during their career is unlikely to last as long as they may be obligated to pay child support. The determination of the appropriate amount of child support should take that circumstance into account, as it is arguably not in the child’s best interest to have support abruptly cease when their athlete parent is no longer able to pay.
Fortunately, California law does give the court discretion to deviate from the formula in exactly these kinds of cases. Per Family Code § 4057, the court can adjust the amount downward if evidence is provided to show “[t]he parent being ordered to pay child support has an extraordinarily high income and the amount determined under the formula would exceed the needs of the children.” This statute also allows parties to stipulate to child support below the guideline formula amount, under Family Code § 4056(a), with court approval.
This provision can provide an added incentive for negotiating a divorce settlement collaboratively, rather than fighting out every detail in court. The athlete and non-athlete spouse can not only take control of determining a payment level that will sustainably provide for their children’s well-being, but also shield the details of their divorce from the media and the public (as Tom Brady and Giselle Bündchen did when they split in 2022).
It is possible to modify child support when there is a substantial change in circumstances, such as the loss of income or a change in custody arrangements, after the original order is made. However, until the court issues a child support modification, the paying parent is still obligated to provide support at the previously ordered level. In addition, it is not possible to wipe out missed child support payments by filing for bankruptcy. Therefore, it is much wiser for athletes going through divorce to anticipate possible difficulties in meeting future child support obligations rather than attempting to correct issues after the fact.
When a professional athlete faces divorce, choosing the right legal representation can help guide the way to a mutually beneficial settlement agreement and preserve their family’s privacy as much as possible during a stressful, difficult time. The experienced divorce attorneys at Hoover Krepelka understand the unique family law issues affecting pro athletes. To schedule a consultation, fill out the form below today.
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]]>The post Building a Strong Case: The Role of Mental Health Professionals in Divorce Proceedings appeared first on Hoover Krepelka, LLP.
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When your divorce involves issues regarding mental health, how does the court determine the facts? Having a mental health professional perform an impartial evaluation can be invaluable in cutting through emotional claims to get a clear picture to inform the court’s decisions on custody and support. In California, either parent in a custody case can request a psychological evaluation, or the court can order one. At Hoover Krepelka, we specialize in dealing with family law cases that are complicated by mental health issues. We can provide seasoned advice, referrals, and mental health experts when you’re considering if an evaluation is called for.
As a no-fault divorce state, California doesn’t require divorcing couples to provide a reason for dissolving their marriage. Thus, it isn’t necessary to “prove” that a spouse is mentally ill to establish grounds for seeking a divorce. However, a mental illness can cause behaviors that impact a person’s ability to work outside the home, manage their own finances, or provide a safe and nurturing environment for a child.
This means that the court won’t be looking necessarily at a person’s diagnosis but at the behavior that results, and how that affects their ability to function. For example, a spouse that is significantly disabled by depression, anxiety, or bipolar disorder may require a greater degree of financial support than someone who can work and is capable of handling daily tasks. This influences both property division and spousal support orders. Likewise, the court examines the ability of each parent to provide for their child’s health and well-being, perhaps having to consider the mental health of one parent versus the mental health of the other to make decisions regarding legal and physical custody in the best interest of the child.
If mental health is an issue in your divorce proceedings, it can bring up deep-seated fears at a time that is already stressful. You may be afraid of losing a custody battle due to your mental illness. Whether your spouse has requested an evaluation or you have proactively sought one, knowing what to expect can reduce the anxiety associated with the process. It is always the best approach to be cooperative.
While the exact components of an evaluation can vary depending on each case, the evaluator is likely to conduct interviews, perform psychological testing, and review previous records. When child custody is at issue, separate interviews and testing may extend to other members of the family, such as your ex and your children. They will also conduct observations of each parent interacting with the child or children, and may also interview health care providers, teachers, and others.
Ideally, you are not alone in this. Your family law attorney should provide guidance to help you navigate this process to help ensure that the information gathered provides an accurate picture and to safeguard against the possibility of your ex weaponizing your mental health condition against you.
What happens when you’re the one who fears your mentally ill spouse is too unstable or unsafe to be entrusted with your children, or who suspects that they’re exaggerating their inability to work to increase the amount of spousal support you’re required to pay? Perhaps they have been diagnosed with a mental illness, or you only suspect based on their behavior that there’s an underlying condition at play. They may have a history of violent behavior, self-medicate inappropriately with alcohol or drugs, fail to stick to a treatment plan that keeps their symptoms under control, or flat-out deny they have a problem.
In these cases, an evaluation by a mental health professional can provide substance that backs up your observations to make a persuasive case to the court. It is worth noting that the determination on alimony or spousal support and child custody don’t always go hand in hand. An evaluator may or may not make a connection between the ability to work and the ability to parent. Each case and situation is unique.
When mental health issues intersect with divorce, reaching just resolutions for spousal support, child support, and child custody takes on an added layer of complexity. The experienced, empathetic team at Hoover Krepelka can provide expert support to meet these unique challenges, including referrals and mental health experts for your case. To schedule a consultation, fill out the form below today.
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]]>The post How Can My Mental Illness Affect My Child Custody Case? appeared first on Hoover Krepelka, LLP.
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Unfortunately, unfounded fears regarding how mental illness impacts a child custody case can cause parents to act in ways that undermine their chance of favorable custody decisions. Understanding how mental health issues play a role in determining custody can help improve the odds of preserving your parental rights.
Understand Your Parental Rights Today
According to the Centers for Disease Control and Prevention, there are over 200 types of mental illness, and they are among the most common health conditions in the U.S. This includes everything from depression, anxiety, addiction, and eating disorders to schizophrenia, bipolar disorder, narcissistic personality disorder, borderline personality disorder, and more. Each disorder can be quite different from the others, and how they affect each individual varies too. So while someone in a custody battle with a mentally ill spouse may assume they have the upper hand simply because a diagnosis exists, that isn’t necessarily the case. Very often, individuals with mental illness go undiagnosed or aim to keep their diagnosis secret.
When resolving disputes over physical and legal custody, California courts prioritize what is in the best interest of the child. In general, that means a judge will seek to preserve both parents’ relationship and parenting time with the child unless it is determined that doing so will be harmful or unsafe. Mental health issues can impact custody decisions based on the extent to which they affect your parenting ability and whether you can provide a safe and stable environment for your child when they’re in your care. A parent’s mental illness, alone, which does not negatively affect a child’s wellbeing, should not affect physical or legal custody.
When evaluating mental illness in relation to child custody, the court will consider the type of illness, its severity, and behavior that might pose a risk to the child. For example, is the illness causing consistently harmful or violent behavior? Does it prevent you from undertaking necessary tasks to care for your child? Are you frequently hospitalized or dependent on in-home care due to the disorder? Are you unable to maintain a stable living environment? These are the kinds of factors that can influence a judge to decide against joint custody.
On the other hand, the specific details of your situation may show that your mental health issues do not impair your ability to provide for your child’s well-being. If you have sought or are seeking treatment, your symptoms are well-controlled with medication and/or therapy, and you’ve demonstrated your ability to routinely act in your child’s best interests, then a diagnosis may have no meaningful effect on the court’s decision.
If your ex is arguing that your mental health condition should disqualify you from sharing physical and/or legal custody of your children, the court will not simply take their word for it. Both sides will need to provide evidence that either supports the case for limited contact or shows that it is not appropriate. This can include medical records, therapy reports, testimonials from reliable sources as to your mental health and parenting, and similar records.
You may also be required to undergo a court-ordered child custody evaluation conducted by a mental health professional, which may or may not include psychological evaluations. The point of such an evaluation is to provide an unbiased perspective to the court on what is best for your child. Remember, regardless of how your ex feels, this process is not about punishing you for having a mental health condition. It is meant to put your child’s well-being first. Trying to hide information or refusing to cooperate will not help your case. Being upfront about your mental illness, instead of hiding it, may indeed help you gain the court’s understanding and elicit a more nuanced response to your case.
Depending on the findings, the court may impose protective measures it feels are appropriate to the situation. This could include supervised visitation, a requirement that you undergo or stay in treatment to have custody, or similar provisions. Again, this type of determination is guided first by what is in your child’s interests.
If you are worried that your ex is attempting to unfairly use your mental illness against you in court, skilled legal representation will help preserve your rights and provide essential guidance when you need it most.
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]]>The post Post-Divorce Financial Problems appeared first on Hoover Krepelka, LLP.
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Some of the financial impact of divorce is easy to anticipate—the increased cost of each ex-spouse having a separate home, with the associated mortgage or rent payment, for instance. Similarly, couples expect to divide the marital property, after distinguishing separate property from joint assets. But they don’t always look beyond the immediate situation to think about how the decisions they’re making now or changes that can’t be avoided will affect their finances down the road.
One critical area to consider is how costs will be divided post-divorce, especially if there are children involved. The court may determine who is responsible for paying child support and providing health insurance for the children, but your agreement should also cover shared expenses beyond the basics covered by child support (such as the fees for extracurricular activities or medical expenses not covered by insurance). You should also clearly establish how those agreed-upon costs should be divided when there’s a significant disparity in incomes, so the financial responsibility is proportional rather than a straight 50-50 split.
A knowledgeable family law attorney is crucial for setting you up for financial success post-divorce because they can anticipate such issues to help set up a plan that lays out clear expectations. While it may feel easier—and be initially less expensive—to gloss over the details to get an agreement in place faster, it can be far more costly to try to fix the gaps that allow your ex to stick you with more than your share of the expenses down the road. The right legal counsel will pin down the language to eliminate casualness and ambiguity that lead to trouble later.
The saying “the devil is in the details” is all too applicable regarding the possible pitfalls of property division in divorce. It is entirely possible for a couple to scrupulously split up their assets in a way that seems equal, based on their current value, only to be hit with fees or taxes they didn’t anticipate that take a significant bite out of what they thought they received. This most often happens when they liquidate assets they acquired in the divorce. Consider:
While these aren’t exactly “hidden” expenses, they may not be top of mind when negotiations are in progress. Having the right professional legal and financial advice during divorce can help you avoid overlooking these types of issues, which can ultimately leave you with an unequal share of marital property.
Other costs, some significant, can come as a surprise simply because the parties haven’t thought through the details of what separating their finances and moving on as two single people entails. For example:
Finally, certain one-time fees associated with divorce may be small on an individual basis but add up when taken altogether. These can include:
Adjusting to a new financial reality after divorce is rarely easy. However, you can take action to face the challenges involved and preserve your financial well-being. This should start with updating your existing accounts and opening new ones as necessary. Review your insurance coverage to verify that it is accurate and that you’re not paying to insure assets you no longer own, and update beneficiaries on all accounts.
Post-divorce budgeting is also key to keeping your expenditures within your new income. Take a close look at your bills to determine where you can reduce expenses to help balance unavoidable increases for necessities. If possible, building an emergency fund should be one of your budget priorities to protect yourself in the case of job loss or other financial setbacks. Investing in the services of a financial advisor at this point can be invaluable in setting a sustainable budget as well as creating the right strategies for dealing with debt, managing your investments well, and planning for retirement.
Ultimately, your financial situation after your divorce is finalized will depend greatly on how property and support is awarded in your settlement agreement or court order. Thus, working with a skilled lawyer who understands your financial goals and your individual circumstances is one of the most important steps you can take to safeguard your financial future.
If you’re worried about the financial problems that divorce might cause, the experienced family law attorneys at Hoover Krepelka can help. We understand the complexities of resolving support and property division issues and will work tirelessly to provide expert guidance and assert your rights. To schedule a consultation, fill out the form below today.
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]]>The post The Role of Spousal Support in Short- and Long-Term Marriages appeared first on Hoover Krepelka, LLP.
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In California law, spousal support is intended to prevent the lower-earning spouse from becoming financially destitute as a result of divorce and to provide the assistance they need to maintain their standard of living until they can become self-supporting. Ideally, such support is just a bridge that allows the spouse receiving the payments to eventually become financially independent. The court will analyze a complex set of factors to determine if support is appropriate and if so, for how long.
There isn’t a fixed set of alimony eligibility criteria that can predict how much or how long spousal support might last—it’s best to consult an experienced family law attorney to get insight on your individual circumstances. However, it is more likely that support will be required for a long period of time or indefinitely if the court determines that it will be impossible for the lower-earning spouse to earn enough to support themselves without help.
There’s a popular misconception California has a “10-year rule” stating that if you’ve been married ten years or more, any spousal support awarded after divorce will continue permanently. It does not help that spousal support awarded at the end of a divorce case is called “long-term” or “permanent” support (as opposed to “temporary” support, which is support paid while a family law case is in progress).
It is definitely not true that any time threshold automatically means support must be paid forever. However, the ten-year mark does have significance in state law with implications for spousal support duration. According to California Family Code § 4336, “the court retains jurisdiction indefinitely in a proceeding for dissolution of marriage or for legal separation of the parties where the marriage is of long duration.” The statute presumes that a marriage of ten years or more meets the definition of “long duration.”
In general in California, for marriages of under ten years, support can last up to half of the length of the marriage. However, in marriages of over ten years, the court makes no assumption of what length of time would be reasonable for support to continue and will look at many factors to make an individual determination in each case. The length of the marriage is determined by the time from the date of marriage to the date of separation, not to when the divorce is finalized. The date of separation, for example, could be the day one spouse moved out, or when both parties agreed that their marriage was over and started making plans to divorce. Another important caveat is that the court has the discretion to decide a marriage is of long duration even if it didn’t make it to the ten-year mark.
If one party is requesting long-term spousal support, the court will consider a set of factors laid out in Family Code § 4320, including:
This takes into account the marketable skills of the supported party and how much time/money it would cost for education or training to develop those skills or acquire other marketable skills/employment, as well as the degree to which the supported party’s earning capacity has been harmed by periods of unemployment due to taking care of the marital home and family.
What are circumstances that might make it more likely for spousal support to be awarded for a longer period? For example, if the lower-earning spouse took a considerable time out of the workforce to raise children and the divorce is taking place close to a normal age of retirement, it’s unlikely they would be able to make up the lost ground in their career to meet the marital standard of living or maybe even come close to becoming self-supporting. Another possibility might be if the spouse seeking support is disabled and cannot work full-time. Again, there are no set rules or formulas for determining how the court weighs the various factors to be considered when determining spousal support.
Even if spousal support has been ordered to continue long-term, there are points at which it can change or end. If the supporting party’s income decreases to the point where the level of support ordered is no longer feasible, they can request a spousal support modification to lower or terminate payments. If the party receiving support achieves financial independence either through a windfall or career advancement, a modification can also be requested. Additionally, unless there is a written agreement otherwise, remarriage of the supported party or the death of either party automatically ends spousal support obligations.
If your marriage is dissolving and you’re unsure of what divorce will mean for you financially, the experienced family law attorneys at Hoover Krepelka can help provide you guidance and advocate for your rights. To get answers to your questions about spousal support, fill out the form below to schedule a consultation with our attorneys.
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]]>The post Navigating Divorce with Separate Bank Accounts appeared first on Hoover Krepelka, LLP.
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There’s long been a presumption that married couples will automatically share a joint bank account. That strategy can certainly simplify the task of understanding how much is available to pay bills, provide transparency on finances to both spouses, and make it easier to create an overall budget when partners are able to work together. The drawbacks to joint accounts become quickly evident, though, when that marriage is coming to an end.
If you don’t already have a separate bank account from your spouse prior to divorce, when should you open one? Everybody’s situation is unique, so it is best to consult an experienced family law attorney to get advice specific to your circumstances. In general, it is worth remembering that after the date of separation, each party’s income is considered separate property even though the marriage has not yet been ended legally. Couples may choose to open separate accounts upon separation to avoid depositing such separate property funds into accounts that include community property and further complicating property division in their divorce.
A more urgent reason to open a separate account can be if one spouse fears that they will be cut off financially during divorce, or if there is a history of financial abuse or domestic violence in the relationship. Opening a separate account before the divorce is initiated can protect you from immediate financial harm if you suspect your spouse might drain your joint funds or lock you out of your account to retaliate.
In any event, you should keep a full and careful record of any transactions related to separate bank accounts, whether they are initially funded with money withdrawn from a joint account or not. You will be required to disclose the existence and the balances of all accounts during the divorce process.
What happens when a couple has separate bank accounts prior to divorce? Spouses may choose to maintain separate bank accounts in marriage for a variety of reasons. For example, they may prefer the financial independence of not having to run every purchase by their spouse, or they may be trying to shield money from one spouse’s premarital debt by having it in an account under the other spouse’s name. It does not necessarily follow, though, that the money in a separate account is the separate property of the party whose name it’s under.
Unless you have a prenuptial or postnuptial agreement that specifies otherwise, anything earned while you were married but prior to separation, and anything you bought with that money, is considered community property—belonging equally to both spouses. Similarly, debt taken on by either party during the marriage is likely to be determined the the responsibility of both parties. To give a very simple example, if each spouse deposited their own salary into a separate account during the marriage, that does not mean that each gets to walk away with the money in their respective accounts when divorcing. Those accounts must be disclosed and considered along with any other separate and joint accounts and property in creating an asset division agreement/order that is equitable to both parties.
Certain assets may be considered separate property if they meet the statutory requirements to be deemed so and are not commingled with marital property. These include property you owned before you were married, as well as gifts or inheritances you received individually while married. Maintaining such funds in a separate account and very carefully tracked apart from marital property can help establish your individual right to them, but it’s more common for assets to be treated in ways that makes their current status unclear even if they started as separate property. Hiring a forensic accountant to conduct a financial inventory and asset tracing may be able to help determine if an asset still meets the criteria for separate property, based on its origin and use in the marriage.
Money is an emotional issue, and frequently people make financial mistakes through impulsive or poorly considered actions in the midst of divorce. You should consult a knowledgeable attorney as soon as possible and scrupulously follow their guidance to avoid errors that can have long-term consequences. An attorney is also essential when spouses have disproportionate incomes, as this type of financial situation tends to involve complex property division and spousal support issues that can be difficult to resolve fairly without skilled representation.
Remember, disclosure of all assets is a requirement of divorce proceedings, so a separate account is not a private account. It may be tempting to try to hide or lie about assets, but doing so will only make the process of reaching a financial settlement more contentious and damage your credibility with the court and you could possibly lose the asset in its entirety to the other party. Being transparent and hiring the necessary professionals to gain a complete understanding of your financial situation and the implications of any proposed asset division agreement will be more effective in allowing you to exit your marriage with your fair share of marital property.
Trying to understand the financial impact of divorce can be unexpectedly complex, at a time when high emotions make it difficult to know how best to proceed. The expert family law attorneys at Hoover Krepelka are experienced in negotiating property division in the most complicated circumstances. We work diligently to protect your financial future. To schedule a consultation with an attorney, fill out the form below today.
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To minimize the chances of conflict during the holiday season and to preserve your rights if disagreements do occur, a detailed holiday parenting plan created in advance is an invaluable tool that allows you to set expectations and balance the child’s time with each parent. Here’s what to know:
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Incorporating a written holiday parenting plan in your marriage settlement agreement is strongly recommended for many reasons. It provides stability and predictability for your child, letting them know which holiday they will spend with which parent. It lets you plan ahead for special occasions with confidence because you already know when your child will be with you. It also enables you to defuse potential areas of discord by laying out specifics such as who is responsible for transporting the children between homes and when exchanges should occur. It can also include stipulations regarding acceptable conduct, such as forbidding excessive alcohol use, to ensure the safety and well-being of your child. This calendar will supersede the regular custody arrangement when the two overlap, so it’s important to think through and understand the terms of the agreement.
Dates and times included in a holiday parenting plan should include not just major holidays like Thanksgiving and Christmas, but also three-day weekends like Memorial Day and Labor Day, school breaks, the parents’ birthdays, the child’s birthday—in short, all holidays and dates of special significance to the family. What these may be will vary for each family. If the parents come from different religious traditions, they may find natural areas of compromise when important dates don’t conflict, or certain holidays may be more meaningful to one than the other. More often, however, parents will need to decide the most feasible strategy for sharing holidays on which they would each prefer to have their child all to themselves.
By considering the big picture well in advance, and not trying to make snap decisions when an important date is looming and tempers are flaring, you have a better chance of achieving overall balance and fairness in holiday visitation. Your plan also provides an objective benchmark for determining when one parent or the other isn’t upholding the terms of the agreement.
What constitutes a workable arrangement for sharing custody over the holidays is highly individual. When co-parents live very close, they may choose to split holidays like Thanksgiving Day, with the child spending part of the day with one parent and the rest with the other. Distance shouldn’t be the only consideration in whether that makes sense—if a child custody exchange has the potential to be acrimonious, you may want to minimize the number of handoffs during the holidays to avoid provoking anxiety and stress for your child and for yourself.
Parents may choose instead to alternate years for major holidays, so that one gets Thanksgiving and the other has Christmas during even-numbered years, and vice versa during odd-numbered years. If you’re not sure where to start, holiday parenting plan examples like this one from the California courts can provide a useful framework.
Once you have come to an agreement with your ex-spouse on an equitable division of parenting time on holidays and vacations, does that mean that your holiday visitation is set in stone? You may find that factors you didn’t anticipate, such as extended family coming to visit one year, can throw a wrench in a schedule that previously worked well. Ideally, co-parents should be able to come together to agree on a modification that works for both parties and prioritizes the best interests of their children. If not, you may need to seek mediation or court intervention to resolve disputes.
A shared custody holiday schedule is no different from any other child custody order—a parent can’t simply ignore its provisions because it is inconvenient or doesn’t match what they wanted. If your ex isn’t following the terms of what you agreed on, the first step should always be to attempt to resolve the problem through communication. For example, a late drop-off may just be the result of bad traffic or a misunderstanding, not a willful attempt to violate the schedule. However, if you find you’re in the middle of a disagreement that you can’t find a solution to on your own, there are resources available to help.
One option, if both parents are willing to work together but are having trouble finding common ground, is to work with a family court facilitator or mediation service. This can be much easier and less expensive than litigating over holiday visitation—though that may be necessary in instances when one party is flagrantly violating the existing order. This is another reason why having a clear and detailed order is critical. If you must rely on the court to enforce the custody order you already have in place, that clarity will make the obligations on both sides unambiguous and prevent avoidable stress.
The holidays should be a time of joy, not of increased tension. If you need help creating or modifying a holiday visitation plan, the experienced family law attorneys at Hoover Krepelka can help. Schedule a consultation with an attorney by filling out the form below today.
If the other parent violates the holiday visitation schedule in California, you should first attempt to resolve the issue through communication. If that fails, consider seeking legal remedies, such as filing a motion with the court to enforce the existing custody order.
Holiday visitation schedules in California can be modified if one parent wants to relocate during the holidays. However, the requesting parent must provide a compelling reason for the modification, and it should align with the child’s best interests.
Yes, in California, there are mediation services and family court facilitators available to help parents resolve holiday visitation disputes. These resources can assist parents in reaching mutually agreeable solutions without the need for costly litigation.
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