For one of the spouses in a long-term marriage, there can be benefits of divorcing after such long-term marriage versus divorcing after a short marriage over the other spouse.
You stay in California and you want to get divorced. But you have not completed 10 years of marriage. Well, maybe you should before you think about a divorce, unless of course you need that divorce urgently. If you do plan on hanging around for a little while and if you are eligible then there are lots of benefits. According to the 10-year rule in California there are many benefits which you can get if your marriage lasted for a decade. The rule has been misinterpreted by many as a means of making money after divorce but it is not so. The rule makes sure that the under-earning spouse in the relationship is not completely ignored.
Alimony
The alimony depends a lot of the duration of marriage. If you earn lower than your spouse, then the court will let you enjoy spousal benefits from your partner, provided the income gap is big. The longer your marriage, the more chances that spousal support becomes permanent. If you have been out of job for a long time, then the court will order for a rehabilitative alimony so that you can find yourself a job. Courts want the under-earning spouse to improve his/her earning to a level where he/she can sustain himself/herself.
Marital home
The court assumes that couples who have been married for a long time don’t have to pay mortgage. If you are one of them then you have a lot to cheer. Paying off the mortgage means having an asset that is free of liens. But if you still have mortgage then it must be cleared off by the spouse who will keep the house. The house will be refinanced such that there is sufficient amount to pay off the lien and provide the other partner with half of the house value. Sometimes, when the income of one spouse drops down to practically nothing after selling the house, the court may directly award it to the other spouse.
Social security
In some case, you might receive benefits from the Social Security Administration after your divorce after a long marriage. But it depends a lot on your spouse and how much he/she will earn on retirement. Sometimes, you will receive the benefits during your retirement age. If you are eligible then you might receive half of it. But these benefits are only applicable if you choose to stay unmarried after your divorce.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Gerald A. Maggio is a trained divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
Divorce affects many different avenues in an individual’s life. Relationship is one area that affected a lot but apart from that some of the important areas that face an impact are property, finances, children, and jobs. There is one other important factor that gets affected from a divorce and that is your will. What will happen to your will when you get a divorce especially when you have named your spouse as the heir of your property? Or even worse, god forbid if you die during a divorce proceeding, what will happen to your will then? There are many questions that can arise in respect to your will and it is very important that such questions be addressed.
Divorce and will
California law prevents former spouses from benefitting from an inaccurate will. The California court of law will cross out the name of your spouse and consider the names of other people in the will. In certain cases, it is presumed that your spouse is deceased and acts accordingly. If the will is not handled by the court, there is no guarantee that such laws will be applied. But if the will is overlooked by the court, which in most cases is what happens, then the laws stay.
Getting divorced after making a will
In California, the law mentions that if after a will is executed the testator’s marriage is annulled or dissolved, the annulment or dissolution revokes … any appointment of property made to the former spouse by the will. It means that if your will mentions your spouse getting a certain amount of money or property even after your divorce, he/she is entitle to it. But if no such thing is exclusively mentioned then under no circumstances will your spouse receive anything from you. It is also true for any gifts that your spouse might have expected to get from you.
Death or Separation during divorce
If, during your divorce proceeding, you or your spouse die then the will stays as is. If the will mentions you or your partner receiving certain gifts, then you will receive them despite what your spouse would have wanted. The laws for separation is the same as those for marriage. Your spouse can still be revoked from the will if you stay separately and file for a divorce.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Gerald A. Maggio is a trained divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
Dividing family owned businesses can be very tough if you and your spouse are not on the same page. And by being of the same page it means understanding how importance the family owned business is. You might be the owner of a business that was passed down to you by your family and suddenly your divorce splits it into two. Your partner may not be interested in the business but despite that gets a half of the business. It can be very disappointing.
Businesses can be viewed as property
During a divorce, businesses are viewed as properties. Two important factors that play a major role in determining this are classification and worth of your business. Your business can be classified as either a community property or a separate property or even both. How much your business is worth depends on the amount of money generated by your business and the net worth of your business.
Equal division of business
If you own a business then you know how much time, effort, and money you have spent to establish your business. Now, imagine if everything that you built were divided in half and one half was given to your wife? Heart-breaking, isn’t it? Well in California this is exactly what happens to your property during a divorce. California, being a community property states, require that every property belonging to the marital “community” be divided in half. This includes family owned businesses as well.
The best solution to save your business from splitting in two would be signing a prenuptial agreement or some other exit strategy cleverly developed by an experienced lawyer. Another option would be to work with your partner in the same business. Both solutions are tough because you need an amicable relationship with your spouse and if you have that why would you be heading towards a divorce then?
Protecting the business
The first way to protect your business is to talk with your partner and agree on some mutual understanding. While talking, you need to keep your personal squabble out of it.
You must get your business valued if you are getting a divorce. If you both are joint owners, doing this is not a problem but if you’re not then things can get complicated.
If you both work in the same business, you can expect both of your roles and responsibilities to change. This reduces conflict of ideas and save the business from utter devastation.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Gerald A. Maggio is a trained Irvine divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
Society and the courts have traditionally always favored women in cases of divorce settlement. It is usually the woman who claims alimony from her spouse post-divorce. But in reality, this is not a fair method of determining who has to pay spousal support to whom. In a relationship the woman may be in a better financial position than the man and in such cases the woman may be be required to pay alimony to her ex-husband.
Men’s rights regarding alimony in California and factors considered while determining alimony amount
The divorce and spousal support laws in California are fair and unbiased and focuses on the financial position and strength of each spouse and not the gender of each spouse. California laws take into consideration the net assets and liabilities or debts of both spouses before determining who has to pay alimony and the amount payable.
Husbands who are getting divorced in the State of California enjoy full rights granted by the law to receive alimony or spousal support from the other party. Some factors that determine the amount of alimony that the husband will get from his wife are the husband’s income from his current job, his income earning capacity, his health and lifestyle, his nature towards his wife during the marriage – whether there were any signs of physical, mental or emotional abuse or domestic violence. All these factors are taken into consideration by the civil court before calculating the alimony payable by the wife to the husband and to make sure that the spousal support terms and conditions are fair, just and equitable.
Husbands also have the right to receive temporary or interim spousal support from their wives if they can prove their poor financial situation. The judge will consider factors such as the husband’s debts, income, and expenses, as well as the current financial burden on their wife and determine an alimony amount which the wife will have to pay to her husband throughout the course of the divorce proceedings to financially support and take care of him.
Short-term spousal support
If the marriage has lasted less than 10 years then the husband can claim short-term spousal support from his wife if he can prove his financial needs to the judge or family court. The same factors are taken into consideration in determining alimony.
Long-term spousal support
A marriage that has lasted more than 10 years is considered to be a long-term marriage in the state of California and hence the husband can claim a larger spousal support amount from the wife after a divorce. Again, the judge takes the same factors into consideration before determining the amount of spousal support payable to the husband.
The husband also has the right to enter into a mutual stipulation or agreement with his wife for the amount of spousal support payable without the interference of the court. But this is only if the husband and wife are still on good terms after the divorce and can cooperate and negotiate with each other by themselves or with the help of legal representatives without the need of external interference by the courts.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Bankruptcy can put a person in a huge financial predicament and occurs when that person has not been spending his money wisely and his expenditure has exceeded his income. Bankruptcy disallows the person from making necessary or important payments, paying off creditors, getting loans from banks and has a lot of other negative impacts on a person’s financial situation.
If a couple is undergoing a divorce and one spouse is required to make alimony payments to the other spouse and that spouse has filed for bankruptcy, then it can be very difficult for him or her to make the alimony payments. If the spouse is bankrupt, he can use this as a tool to avoid or escape making spousal support payments.
Dischargeable and nondischargeable debts
Bankruptcy disallows a person from discharging his debts. There are certain bills, payments, and expenses that are completely avoidable when a person files for bankruptcy and these are specified in the laws in the state of California. But some debts are nondischargeable which means they cannot be avoided or eliminated just because the person is bankrupt. These include tax payments, loans taken and alimony.
Even though alimony or spousal support and child support are some of the payments that fall under the nondischargeable debt category there are two situations in which alimony payments would be exempted from this category and the spouse would be discharged from making these payments.
U.S. State laws regarding alimony and bankruptcy
Section 523 of the U.S. Bankruptcy Code clarifies that persons or debtors cannot be discharged from making spousal or child support payments because of bankruptcy. It states that alimony payments are nondischargeable debts under the laws of federal bankruptcy, however, there are two exceptions to this rule –
Involvement of third parties
If a third party becomes involved in the spousal support arrangements, then the alimony payments become dischargeable even though the spouse is declared bankrupt. If the spouse hands over the burden of alimony payments to a relative in his family, then he is discharged from making the alimony payments himself.
Incorrect divorce documents
When a couple gets divorced the court awards them a divorce decree. This document is one of the most important documents in a divorce and specifies the reasons for the divorce and the terms and conditions of alimony/child support payments. If for any reason there are some mistakes or errors made in the divorce decree with regard to the nature and type of alimony required to be paid, then the spouse who is required to make the payments can be discharged of those debts if he is bankrupt.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Gerald A. Maggio is a trained Irvine divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters.
In the state of California debts between a couple are divided into two types – community debts and separate debts. Community debts are those debts that are accumulated by both parties to the marriage during the marriage until the date of separation. These debts are to be equally divided between both the parties even if only one spouse was responsible for incurring these debts. Separate debts are those debts that were incurred separately by the parties before the marriage or after separation and belong to the individual spouses who were responsible for incurring them.
Treatment of debts in California between a divorced couple
All debts in the state of California are to be treated as community debts as California is regarded as a “community property” state. This is of course unless the parties to the marriage had entered into a prenuptial agreement before the marriage regarding the division of assets and debts between them in the event that they decided to get divorced. If there is no prenup, then the court equally divides all debts between both spouses equally.
However, there is one exception to this rule and that is when the total value of the community debts exceeds the total value of the community assets jointly held between the two spouses. In this case, the court will order for a higher portion of the debts to be borne by the spouse who earns a higher income or who is in a better financial position to pay off these debts.
Importance of the date of separation
In the division of community debts in the state of California during a divorce, the date of separation of the couple is extremely important as only those debts that were incurred before the date of separation will be included in the community debts and all other debts incurred post the separation date will be assigned to the spouse who individually incurred them and the burden of paying those debts post-separation will not be borne or shared by both spouses.
Deciding the date of separation is sometimes a difficult task especially when the couple is in total disagreement with each other. Two tests can help confirm the actual and legal date of separation between a divorcing couple in the state of California:
The first test is to determine the date of physical separation between the spouse, that is the date on which they began living or sleeping separately or the date on which one of either spouse moved out of the house.
The second test is to determine when either spouse expressed their clear intention to end their marriage. This does not include a trial separation.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
It is a common occurrence for warring spouses to hide assets when in the course of a contentious divorce. There are a number of ways a spouse may disguise or at least undervalue assets. One of the most common ways is to overlook or undervalue antiques, gun collections, hobby equipment, tools and artwork. Most of them come in the form of original paintings, collectible carpets or antique furnishings at the office of the spouse. There could also be unreported income on financial statements and tax returns.
Hiding methods
Undisclosed cash is frequently kept as travelers’ checks. These can be found by tracing the bank account withdrawals and deposits. There could also be custodial accounts set up in a child’s name using the Social Security Number of that child. Investments in the form of certificate municipal bonds or the Series EE Savings Bonds which do not show in the statement of accounts as they are not IRS registered.
Assets may also be hidden by colluding with the employer. Bonuses could be delayed; stock options given later than usual. The spouse may also request the employer not to give a raise until a time when the income or asset will be regarded as separate property. There could also be a phony debt to a friend or sudden repayment of money as debt. The assets could be hidden as expenses paid for boyfriend or girlfriends, like gifts, rent, or travel. Expenses may also be seen as tuition paid for classes or college. There could also be hidden retirement accounts.
Business persons
Other than the above, business persons may hide assets in a number of ways like stealing cash from their own businesses. Salary payments can also be made to non-existent employees. These are made with cheques which are made void post-divorce. Money could also be paid to a person close to the spouse, like mother, boyfriend, girlfriend or father for fictional services. Such money is then given back to the spouse post finalization of the divorce. There could also be delays in the signing of longer term business contracts. These are typically done post-divorce.
It is extremely hard to find evidence of such activities. Litigation may help to unearth such deals. To give an example, you can take a legal interview or deposition of the boss of the spouse or the payroll supervisor and then query them about your spouse’s income and the bonuses. You can also hire a private investigator or a forensic accountant.
However, if any of this is a valid concern in a divorce case, then the likelihood of being able to mediate the divorce is very limited, and litigation of the case is the more realistic option.
To learn more about the divorce process in California and how mediation can help where you and your spouse seek to be transparent in providing all information and documentation concerning assets and finances, please visit our page, What is Divorce Mediation.
So you have finally decided to divorce your spouse and start a new life without him or her by your side. However, have you ever contemplated how big a hole, a divorce could punch in your pocket? It is quite difficult to evaluate how much a divorce can actually cost you, unless you are in the middle of the process. However, you should be predisposed about the ensuing cost of a divorce and analyze whether or not you would be in a position to afford it, before you take the plunge. Let’s try to figure out the various financial aspects of a divorce.
The level of conflict
The first and foremost aspect of a divorce that can significantly influence its cost is the level of understanding between the two parties involved. The more the conflicts, the less the chances of negotiation will be. Court proceedings will require regular payments to your lawyer. This implies that the more disputes you have, the longer a court of law would take to reach a final verdict. And for all we know, you will be spending more money on the trial.
The type of divorce
A divorce that involves no property and asset division can be resolved by out of court settlements without the help of a legal attorney. In addition to this, if your divorce is mutually agreed upon and uncontested with your spouse, you can settle the matter with the help of a single attorney who will cater to the respective needs of both the parties, at lesser charges.
The complexity of the specific case
Divorce cases which have several other related issues such as child custody, visitation, support, property and debt division and the like are bound to be more expensive than the ones that are relatively simpler. In addition to an adversarial attorney, such complex affairs often require you to take the assistance of several outside professionals such as business valuator, financial advisor, CPA and even a psychologist, all of whom will add on to the costs of the lawsuit.
The level of control you have over your emotions
You need to understand the importance of keeping your emotions separate from the legal and financial aspects of a divorce. Exhibiting unsolicited anger over petty issues will probably give your attorney the idea of dragging the case for a prolonged period of time by fanning the flames of your resentment against your spouse, to feed his own personal hunger for money.
Divorce mediation is a more cost-effective way to get divorced. To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
There are several cases wherein a spouse has filed a petition for a divorce, but the other partner has not officially filed for a response to the petition yet, or defaulted. In addition to this, the two divorcing parties have created a written agreement which incorporates well defined instructions for the actual legal separation or divorce and other related issues such as division of property and debt, visitation and child support and custody. If the partner who has filed for a divorce does not receive any response from the other side within 30 days, the situation is termed as ‘default with agreement’. We are listing here a few steps to be followed by the petitioner to proceed with this situation.
Writing the agreement
The first and foremost step is to actually create an agreement in writing which clearly states the couple’s intent of getting separated or divorced. In addition to this, your agreement may also incorporate instructions for the division of your property and debt. Furthermore, you and your partner may agree upon whether either of you needs to pay for the support of the other partner. In case, there are any children involved, the couple can also reach an agreement regarding the custody, support and visitation of their kids. This written agreement is referred to as an MSA or marital settlement agreement and should be attested by a certified notary for legal validation.
Filling out the forms
It is the petitioner’s obligation to present the final forms in the court of law requesting the judge to announce a final verdict for their divorce or legal separation. In addition to this, you can also request the judge to announce the legal orders regarding other related issues such as division of your assets, custody, support or visitation. A petitioner cannot present the final forms in the court of law until 30 days have passed from the date of presenting the petition and summon to their spouse.
Completing the required financial disclosure
Usually, both the petitioner and his partner are required to create and serve a ‘Declaration of disclosure’ as part of the requirements in a divorce case, known as the “Preliminary Declaration of Disclosure.” A couple can waive the completion and service of a “Final Declaration of Disclosure” by stipulation at the end of the case.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
Despite your efforts to devote several hours a day in building your empire, you might end up witnessing your enterprise crumbling down to pieces as an aftermath of a divorce. If you have an angry and resentful partner, the chances of losing out on your well-established business becomes even higher. However, if you are well aware of your rights and know how to get them enforced, you can ensure that your spouse does not end up taking a massive bite of what is rightfully yours. Here are a few ways in which you can protect your business from becoming a controversial issue in a divorce lawsuit.
Sign up a premarital agreement
The best way to protect your business from an unwarranted division is to get your spouse to sign a prenuptial agreement that would stipulate the instructions for the evaluation and distribution of your business finances in the event of a divorce. However, if your spouse refuses to agree upon a prenup, you must at least take the assistance of an appraiser to determine the initial value of your business at the beginning of your marriage and make it easier to identify any appreciation or depreciation in due course of time.
Avoid involving your spouse as an employee
Although for several reasons such as tax benefits, most of the business owners end up appointing their spouses as employees in their company, it is advisable to refrain from this habit. The reason is that if you decide to separate from your spouse, he or she might end up making a claim to a portion of your business assets on the pretext that they too have actively contributed towards its growth and profits. However, if you already have your spouse working for your business, you must make it a point to fire them right away and save yourself from undue claims.
Trade off other assets
For the division of property in the event of a divorce, the court adds up the total assets of a couple and carries out an equitable distribution between both the parties. It is always advisable to try and retain complete ownership of your business by paying the buyout price in the form of other marital assets such as your family home, car or retirement accounts.
To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation.
For one of the spouses in a long-term marriage, there can be benefits of divorcing after such long-term marriage versus divorcing after a short marriage over the other spouse.
Gerald A. Maggio is a trained divorce mediator who has amicably resolved cases many cases out of court, as well as an experienced divorce and family law attorney. Mr. Maggio founded California Divorce Mediators in 2012 with the belief that although “not every marriage can be saved, every family can” and a mission to save families from the financial and emotional distress associated with traditional divorce litigation. California Divorce Mediators is located in Irvine, California, and serves the Orange County area and other counties in California offering divorce mediation, child custody mediation and mediation of other family law matters. 
