The Many Costs of Divorce

Posted by: Gerald A. Maggio, Esq.

Divorce mediation attorneys in Orange County; California Divorce MediatorsSome parties come to divorce mediation in Orange County and elsewhere because of the cost advantages of this process over litigation. This is a valid reason since divorce mediation is considerably more cost-efficient when compared to litigation as there is no need for two separate attorneys and court fees.  As such, the financial considerations are understandably the reasons why people come to divorce mediation. There are, however, other costs as well that justifies considering divorce mediation over litigation.

Cost of Emotions

This isn’t a monetary expense, yet it is a heavy cost that most couples have to pay in the litigation process.  Mediation, on the other hand, is your chance to significantly minimize the emotional costs. Why? Good Orange County divorce mediators are adept at handling the emotional side of divorces and will be good comforters to you. Unlike the aggressive court proceedings, here the mediator will tend to keep a tab on emotions and make sure the mediation is carried out in a peaceful and calm manner. When you are emotionally charged, especially if you have kids,, breaking down emotionally isn’t an option. A good divorce mediator will act as a calming influence in your life and help you get through the rough patch unscathed.

Lack of Attendance on Job/Business

This is a monetary expense just like the financial costs. In court cases and litigation processes, each spouse will have to make court appearances. These court appearances can range from a few to many, as all hearings are usually necessary to attend. The hearing is scheduled after seeing the availability of the judge and both the spouses’ attorneys. This means that the spouses will have to attend the hearings on the date set irrespective of their schedule. In most cases their job and their business will be neglected on such days, and this can be really costly. In contrast, in divorce mediation, the dates for the process are set according to the availability of both the spouses and are flexible to change.

Out-of-the-Blue Financial Hardships

Starting a divorce through an attorney means that each spouse has likely paid an initial retainer fee. The retainer fee is the advance of all the meetings and calls that the attorney will have and charge at an hourly rate. However, it is common in court cases for clients and attorneys to contact one another multiple times. This means a spouse is likely to have very high legal fees.  A spouse may also be needed to pay extra amounts for accountants and other experts that are called in to help resolve the case.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

How Divorce Mediation Saves Your Family From Financial Ruin (PODCAST)

Posted by: Gerald A. Maggio, Esq.

Divorce Mediators Orange County; California Divorce Mediators

Welcome to California Divorce Mediator’s PODCAST explaining how divorce mediation can save the financial future of your children and your family.

Who Really Needs To Know About Your Divorce?

Posted by: Gerald A. Maggio, Esq.

Divorce-mediation-Orange-County; California Divorce MediatorsFeelings of guilt, shame, disappointment, and fear of the unknown are common in people who are going through or have gone through a divorce. When a relationship starts to fall apart, the dreams of the couples are shattered causing most couples to feel like a failure while others may make themselves immune of whatever is happening around them by acting as uninformed. While such feelings are bound to exist, and are normal to experience, the news of your Orange County divorce needs to be told to a few people. Here are a few of the people who you should tell about your divorce.

Family

When we say family, we mean your immediate family. These consist of your children, your parents, and you siblings. The most important part is telling your children because this decision will have an ever lasting impact on their lives. Making sure you tell them in a way that they understand is vital. While they are being told about this decision, there has to reiterations to them about your love and care for them. Your parents and siblings will act as your buffer. They are likely to help you get through this difficult period and assure you of their acceptance of you and your decision.

Friends

Your friends mean your closest friends. These people have been closest to you for a number of years and just like all the other secrets you can share with them, they need to know about your divorce. Your friends are your main support group. They will help you avoid that feeling of being alone and hounded.

Financial Advisor

Your financial advisor should know that you are going through a divorce irrespective if it’s a divorce mediation or litigation. These are the people who’ll help draw up your financial list and tell you what you’ll need in terms of finances in the post divorce time. It is important that you and your financial advisor are honest about your assets because hiding assets and lying about them will only draw the divorce longer.

Business Partner

If you own any kind of a business in partnership, you need to inform your business partner(s) regarding your divorce. This is important because your divorce can have an impact on the division of shares and profits and other financial matters, and the other stakeholders in the business should know about it.

Estate Planning Attorney

Your estate and property are all part of your list of assets, and during a divorce these are likely to have an impact. Telling this to your estate planner is vital because they’ll help you in the planning for the future and figuring out the best picks in your divorce mediation agreement.

Irrespective of the method of divorce you choose, the myth that divorce should be secretive and kept between the lawyers and the concerned parties only isn’t true. To help you through a divorce both emotionally and financially, you need people and they need to be informed about your decision. While the method does not matter in terms of informing others, it matters if you want a smooth divorce.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

What Issues Can Divorce Mediation Solve?

Posted by: Gerald A. Maggio, Esq.

Divorce mediators in Orange County; California Divorce MediatorsDivorce Mediation is one of the most underrated methods of dispute resolution. California Divorce mediation services are underused by couples who are unaware of the potential of divorce mediation in Orange County. Most couples don’t know the benefits of divorce mediation, and end up going through messy divorces that hurt them financially as well as emotionally and psychologically.  Why is it a better way?  The answer to this question is plain and simple. All issues that a judge can solve can be solved by using divorce mediation services.  Divorce mediation means not going to court and therefore protecting the privacy of the couples. Here is a list of issues that divorce mediation can solve:

Division of Property

Property in divorce proceeding means real estate, vehicles, savings accounts, retirement accounts, investment accounts, furniture, etc.  A judge in this situation would probably order that the assets be divided into half, unless some kind of a prenuptial agreement is involved. Divorce mediation instead allows the couple to make trades on properties, meaning that they can decide which assets who should keep and what should be given to the other. While it sounds like a long and complicated process, it is made easy by experienced mediators.

Child Support

The State of California has set guidelines on child support. The guidelines outline how much of child support should be paid for each minor. Mediators help couples talk on a number of issues such as who will bear what parts of expenses, who will bear the education costs and the medical expenses, and help them decide on the child support number they can meet.

Division of Debts

Every household in one way or the other is somehow indebted to some bank or lender. This means that in every California divorce, debt discussion has to be done. Debts are usually ranging from loans, credit cards, and other debts that the couple has borrowed over time. There are several reasons for debts such as renovation and over expenditure, etc.  Divorce mediators can help devise a plan for debt repayment which is agreeable to both parties.

Custody of the Child

Child custody involves two aspects: legal custody and physical custody.  Legal custody means who gets to make the decisions concerning the health, education, and welfare of the children and their upbringing.  Physical custody basically means where the child is likely to spend his time in weekends and holidays.  Divorce mediators help you create a parenting plan that suits you. A parenting plan is a plan that contains all the details about the child’s time distribution in between the parents in weekends and holidays.

Spousal Support

Spousal Support is the title given to the money that is given by one spouse to the other to help her or him to maintain their lifestyle. These are decided on the standard of living that the couples enjoyed during their marriage. We identify the necessary lifestyle needs of the spouse and then help both the parties agree to a sum that they both feel is fair.

Divorce Mediation is one process that is detailed and all-encompassing, which means it allows the couples to end their marriage with a customized agreement that they both think is fair and just, and cost-effective.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

The 5 Stages of Divorce Mediation in California

Posted by: Gerald A. Maggio, Esq.

Divorce Mediators Orange County; California Divorce MediatorsWhat is all the hype surrounding divorce mediation and why should you consider it? The reason divorce mediation is encouraged because it doesn’t create animosity between the divorcing partners. What happens during divorce mediation?  Just refer to the five stages mentioned here and you will get an idea of what happens during divorce mediation:

First Stage: Introductory

The mediator will familiarize you with the process and so you should come with a list of questions in mind to ask. Discuss all the issues that you want resolved. If an issue needs more attention than others, convey that to the mediator. Moreover, the mediator will suggest different ways to optimize effective communication.

Second Stage:  Information-Gathering

Your first session may have brought up many different issues such as finances, children, debts, and loans, among others. If you haven’t brought the documents with you in the first meeting (it’s better to bring them in the first stage), the mediator will tell you to bring them when you visit again. During the second stage, finances are discussed, documents reviewed, and suggestions thrown around. Since division of assets is a critical issue, two or more meetings could be required to come to an agreement.

Third Stage:  Framing The Issues

The divorce mediator will ask the partners to write down reasons of what they want to see in the agreement. Their outline will consist of reasons such as concerns, goals, values, priorities, needs, and interests. After both parties have created the outline, they will discuss it between each other to see if they can come to a resolution. In order for this to be successful, don’t write off the suggestions that your partner gives, but listen to them even if what they are saying doesn’t sit well with you. Most importantly, keep in mind that in order for your partner to consider your interests, compromising on some is necessary. When you cooperate, they may as well.

Fourth Stage:  Negotiating The Issues

With the assistance of the mediator, partners will come up with a few options to solve the issue. They will evaluate each option to determine which one works better. At this stage, the partners will negotiate with each other until they can see eye to eye on a resolution. Towards the end of this stage, the options are decided.

Fifth Stage:  Written Agreement

The mediator will send a draft of the settlement agreement to both spouses to view. If both spouses agree, the mediator will write up the final version of the settlement agreement, which the mediator can submit to the court for filing.  As a precaution, it’s advised to have a lawyer review the agreement before submitting it to the court.  Sometimes, your mediator is a lawyer, but it is important to note that they are not representing either party as a legal advocate in that situation.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

5 Things Every Person Should Know About Divorce and Taxes

Posted by: Gerald A. Maggio, Esq.

Divorce mediators Orange County; California Divorce MediatorsDid you just get a divorce? If your divorce was finalized a few months back, the headache of filing for taxes may have already fallen upon you. New divorcees will get to experience all of it for the first time, i.e. filing tax returns and dealing with new tax issues.  Here are five things to know to reduce the anxiety that comes with filing taxes:

1.     Figure Out Your Filing Status

Determine the date the judge finalized the divorce. If your divorce was finalized by midnight on December 31st, you will generally have to file your tax returns separately.  If your divorce judgment was entered after January 1st, you have the option of filing “married filing jointly” (if your spouse is agreeable and it makes sense to do so) or “married filing separately.”  If you share custody of your children, you will generally get to claim head of the household status.

2.     Child Support Payments vs. Spousal Support Payments

It is very important to know that people who pay alimony are entitled to write those payments off as a tax deduction, and those receiving spousal support must claim it as “income” on their tax returns.  Therefore, both parties should plan their tax obligations accordingly.  On the other hand, those paying child support cannot claim such payments on their taxes as a deduction, and those receiving child support do not need to report such payments on their tax returns.

3.     Determine Who Gets the Child Exemptions

During divorce proceedings, you and your partner can decide on who gets qualified to claim the child/children as tax exemptions. If you have joint custody (i.e. 50% each), then generally you should agree to alternate the right to claim the tax exemption each year.  Otherwise, the party who has over 50% custody gets to claim the child as a tax exemption pursuant to the IRS Code.

4.     Change Your Withholding on the W-4 Form

You can claim extra tax exemption on your W-4 form through your employer to offset the tax deduction for spousal support payments you are making, leaving you with more net income each month.  On the other hand, people who receive alimony payments can ask their employer to withhold additional taxes from their paycheck to cover their new tax liability.

5.     Review the Legal Fees

If you filed for divorce using the litigation method, you might have significant legal fees incurred.   Unfortunately, most legal fees are not tax-deductible, but fees that you paid for advice regarding taxes are.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

The Basics of California Divorce Mediation

Posted by: Gerald A. Maggio, Esq.

Divorce mediation Orange County; California Divorce MediatorsDivorce mediation is a popular method used by divorcing partners to settle their differences amicably. The proceedings involve a mediator who sits down with the two parties to discuss and solve issues. A mediator isn’t supposed to support one party over the other.  The mediator is neutral and impartial.

What role does a mediator play then? They are more like facilitators helping you and your partner come up with a settlement agreement. To help you understand what mediation is exactly, read on.

Can Anyone Use Mediation?

Mostly everyone can use mediation to dissolve his or her marriage, except for those who are victims of physical or emotional abuse. If you aren’t a victim of extreme circumstances, you should contact a mediator if you want to avoid a messy divorce. If you are still unsure about mediation, you should know that this method has many benefits.

What are the Benefits of Mediation?

Divorce mediation can provide you and your partner with numerous benefits such as these:

  1. It’s cheaper than litigation
  2. Both parties, together, decide what goes into the settlement agreement
  3. Mediation is confidential, no record is kept of the sessions
  4. It’s a collaboration between both parties so both parties leave satisfied
  5. Both parties can still visit a lawyer for additional advice
  6. Instead of the court controlling the process, both of you control it
  7. Mediation improves communication between the two of you, which helps you avoid conflicts in the future

In addition, it’s important that they compromise and not stay rigid when deciding on a solution to resolve an issue. Also, remember that mediation will only be successful if both partners are equally willing to put their differences aside and discuss issues.

Tips to Make Your Mediation Sessions a Success

If your partner has suggested that you both should try mediation, don’t brush the suggestion off. Instead, research on what it is or talk to a mediator to find out more. Most sites will tell you that divorce mediation is a powerful process that actually works and they are right.

However, the process won’t work if you visit the mediator with a negative mindset to attack every suggestion your partner gives you. Use this time to discuss everything that’s on your mind such as property disputes, child support and child custody, among others. Hence, if you are seriously considering this option, follow these tips to make your sessions a success:

  1. Involve yourself in the discussion
  2. Don’t hold back, voice your concerns
  3. Compromise on certain issues
  4. Remember that the primary goal is to resolve issues, not create more
  5. Keep your tone pleasant
  6. Don’t lash out at your partner
  7. Be patient and listen

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

How to Divide Assets during a Divorce

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediation; California Divorce MediatorsOver the years, you and your partner acquired many things together, but now that you are in the midst of a divorce, it’s time to divide the assets. Deciding on who gets what is a difficult task to tackle successfully. Depending on the number of years you were married, dividing the assets can become an even more complex process. Where there is property, there will be disputes.

How to Avoid Angry Partners? Play Nice

Disputes over assets have been going on for years between divorcing parties. The outcome of fighting over assets isn’t a satisfactory one, as by the end of it, both are bitter, exhausted, and may not have gotten what they really wanted. Their lawyers probably fought ferociously to get their client the best deal, but one person’s lawyer was just a better arguer. So, is there a better way to handle the division of assets? Of course, there is.

Both of you can sit together and make a list of all the assets in a good-natured way. Usually, partners use their attorneys to send the other partner a message, but that only makes things worse and may even delay the process. Instead, coming up with an agreement together will help speed up the divorce proceedings. When both parties refuse to meet up alone then they should go for divorce mediation.

Hire a Divorce Mediator

When both partners refuse to see eye to eye, they may need a push in the right direction. They need the assistance of a divorce mediator to facilitate communication amongst them. Through divorce mediation, both parties will be able to come to an agreeable resolution regarding the distribution of assets. Later, they can take it to a divorce lawyer for a second opinion. However, if you choose litigation, the process of dividing assets such as house and car will differ.

Dividing a House and a Car

In many circumstances, judges can award the house to the partner who has primary custody of the kids. If children are not involved, dividing the house is a major issue which most couples solve between themselves or by putting it on the market. The next issue that arises is dividing the cars.

Regardless of who owns the vehicle, in a marriage they become marital property. The first thing that people look at is to figure out the car’s market value, which can be determined by Kelly Blue Book or other online car valuation websites.  If you own a leased car, the car is more of a financial liability than an asset.  In addition to dividing cars and the house, you need to divide household items.

Dividing Retirement Benefits and Co-Owned Family Business

Working people often don’t believe that their partner is entitled to their retirement benefits. However, this is a common misconception because just like with vehicle ownership, retirement benefits are community marital property. With joint businesses, a person can buy their partner’s share or provide them with financial compensation.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

6 Factors That Will Make You Want To Pick Divorce Mediation Over Litigation

Posted by: Gerald A. Maggio, Esq.

Divorce mediators Orange County; California Divorce MediatorsIf your marriage is in trouble and you are thinking of separating permanently from each other, are you thinking of choosing litigation or divorce mediation? If your answer is litigation, after reading this article, you may change your mind. Read over the six reasons why divorce mediation reigns supreme over litigation:

1.    Why Divorce Mediation is the Right Option

Even though you are not on speaking terms, you both want something out of this divorce. Litigation will not do that for you. Litigation picks sides with lawyers warring with each other to provide what is best for their client. Fair enough, if you are ready to come out as a loser, one party may leave the courthouse distressed, in tears, or anger. So, what will satisfy you both? Divorce mediation. Through divorce mediation, couples can come up with their own terms and conditions regarding all the vital issues regarding the dissolution of their marriage.

2.    The Ball is in Your Court

You with your partners will sit down with the mediator to talk about the best ways to tackle issues plaguing your marriage. Everything from finances to the custody of kids (if you have any) is going to be discussed. Unlike in litigation where the lawyer is influencing your decision, the mediator will sit there to listen to both of your arguments, and then reach an agreement. You will have a say in the proceedings and what the mediator needs to omit.

3.    Your Bank Account is Going to be Preserved

Are you ready to put all your savings on the line? You probably are not, but if you choose litigation, expect to shell out a lot of money. On the other hand, there is divorce mediation, a simpler and less costly method to call a marriage off.

4.    The Length of the Sessions Are Flexible Based on Needs

With divorce mediation, the parties have flexibility with the mediation sessions.  If progress is being made in a particular session, then there is flexibility to keep the session going.  If the parties are emotional or the issues in a particular session are tough on the parties, then that session can be ended, to come back another day.

5.    The Divorce Process is Shorter

With litigation, you can expect the divorce proceedings to be lengthier. You want to move on with your new life as soon as possible, but that can be difficult if coming to an agreement or a litigated resolution takes months or years.  In mediation, the parties ultimately have the power to reach a resolution more quickly than a litigated divorce.

6.    Divorce Mediation Yields Good Results

Most importantly, each session will provide you with some closure with issues looming on your mind. Your partner and you will be able to come to an amicable agreement and will likely still be able to remain friendly and have some respect for the other.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”

5 Questions about Divorce Mediation—Answered!

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediators; California divorce mediatorsAre you and your partner planning to go your separate ways? If you are, do you want to end the relationship on good terms? If you answered yes again, divorce mediation is the perfect method for disputing couples to settle their issues.

However, not everyone prefers this method, as most are unaware of the benefits it provides. Moreover, they may have several questions regarding the practice. Here are the answers to the most-asked questions:

1.    Do both Partners Choose a Mediator together?

In order for mediation to successfully work, both partners need to approve the divorce mediator before beginning mediation sessions. Ask your partner if they have any one in mind that they would like to go to or give suggestion of your own. After acquiring the names of the mediators in your area, interview them. Remember that at any time during the sessions, you can cut ties with the mediator and move on to another one.

2.    Can You Make a Switch to Another Mediator?

If you don’t like your mediator or the way he/she conducts sessions, choose another one. It’s not mandatory to stick to the same mediator throughout the divorce process. Voice your concerns to your partners about the mediator telling them why you want to employ the services of another one. If your partner gives you a suggestion to go with this one, you may feel inclined to talk with the mediator in the absence of your partner. In order to solve issues, you need to feel at ease talking about them in front of the mediator.

3.    What Issues can Mediation Resolve?

Divorce mediation can solve numerous issues such as parenting time, child custody, visitation time, child support payments, amongst others. Although traditional divorce can solve these issues, compared to the traditional option, this is much cheaper and at times, more effective depending on the reason to divorce.

4.    Is Divorce Mediation Cost-Effective?

Not everyone is able to pay such a huge amount to get a divorce. Most people have to get loans from the banks to pay for all their legal fees, but this isn’t the case with divorce mediation. Divorce mediation is a cheap option to get out of a marriage. If you are a parent and getting a divorce, this option should be at the top of your list, as it charges you less than going to court.

5.    Is Divorce Mediation Cheaper then Court Fees?

As discussed in the previous point, divorce mediation is significantly cheaper than going in front of a judge to grant you a divorce. With divorce mediation, you won’t have to go to court or pay attorneys to make a case against your partner. In addition, divorce hearings can be quite cruel especially if the other partner is out to get you.

To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”