Tag: <span>Assets</span>

Are Assets Always Split 50-50 in a Divorce in…

January 1, 2019January 17, 2019
by Angie

California is a community property state, which means everything you and your spouse earned or purchased while you were in the marriage belongs to both of you equally.

But it doesn’t mean that you have to divide everything 50-50.

Splitting Assets in Your Divorce: Are They Always Split 50-50?

During your divorce, everything that you and your spouse contributed to the marriage during the marriage – with just a few exceptions – has to be divided equitably. Under California law, that doesn’t mean you have to split everything down the middle. Instead, it means that the way you divide things must be fair to both parties.

For example, you don’t have to sell your cars and split the profits so both of you can use them to buy new cars. If one of you has a nicer car than the other does, you’re free to work out an agreement between each other – and as long as it’s fair, the judge will most likely sign off on it.

Because the law requires you to split the sum of your assets fairly, you two can trade things off. For example, if you have an RV and one of you really wants it in the divorce, you can trade it for something of comparable value.

For most people, that means working together to reach a fair settlement. If you can’t work together, your Stockton divorce attorney may suggest that you try mediation. Mediation can save you a tremendous amount of time and money.

What Assets Do You Have to Split in Your Divorce?

The things that you and your spouse earned or contributed to the marriage while you were married have to be split equitably – not 50-50, just fairly. That includes:

Assets you’ve purchased, like cars and your family home
Bank accounts
Both of your pensions and employment benefits
Clothing
Costs incurred from earning a college degree or professional license
Cryptocurrency
Furniture
Investments you’ve contributed to or earned money from
Patents
Professional practices and businesses
Stocks

Pension benefits are typically considered community property if they were earned during a marriage. However, Social Security benefits are considered separate property in many cases – but there are exceptions on what you can choose to receive in some cases. Because different types of assets, earnings and property are classified in a variety of ways, it may make sense to work with an attorney who can help you reach a fair settlement that leaves you both reasonably satisfied with the outcome.

What Doesn’t Get Divided 50-50 in a California Divorce?

Separate property belongs to each of you individually. You don’t have to divide it as part of your divorce settlement. That’s because separate property is generally classified as assets you brought into the marriage (because you had them before you married your spouse), gifts intended only for you, and inheritances.

Sometimes the lines get a little bit blurred between community property and separate property, and that’s where your lawyer comes in. She’ll let you know if something counts as an asset you must divide or one that belongs only to you. For example, a house you bought before you got married but lived in with your spouse is a mix of community property and separate property – and it’s called commingled property.

What About Dividing Debt 50-50 in a Divorce?

Debt is a lot like assets, in that both of you are responsible for paying any that you acquired during your marriage. Even if the debt is in only one of your names – like a house, a car or a credit card – you are both responsible in most cases.

Some people choose to use debt to negotiate during divorce. Let’s go back to that RV example we mentioned earlier. If one of you really wants the RV and the other one doesn’t want to be on the hook for a certain amount of debt, you may be able to reach a fair agreement with each other. Remember, though, that every case is different – and you’ll need to ask your attorney or mediator about whether what you’re planning is acceptable.

Do You Need to Talk to a Stockton Divorce Lawyer About Dividing Assets 50-50 in Your Divorce?

If you’re considering filing for divorce, or if your spouse has already filed, you’ll most likely want to talk to a divorce attorney. We can help you deal with this difficult process – just call us at 209-910-9865 to set up your consultation.

Community Property Basics

December 27, 2018September 20, 2019
by Angie

In California, the term community property refers to any assets or income earned by a married person – and it belongs to both parties of a marriage, not just the one who brought it in. It’s different from separate property, which only belongs to one spouse.

And during a divorce, community property must be divided equitably between both of you.

Community Property Basics

Anything that either of you contributed to the marriage during the marriage – with the exception of separate property (more on that later) – has to be divided equally when you split up. That includes:

Assets you’ve purchased, like cars and your family home
Investments you’ve contributed to or earned money from
Bank accounts
Stocks
Patents
Both of your pensions and employment benefits
Professional practices and businesses
Costs incurred from earning a college degree or professional license
Cryptocurrency
Furniture
Clothing
Debt

What is Separate Property?

Separate property can’t be divided during a divorce. That’s because it belongs to only one of you. Separate property can include things that one spouse did acquire during the marriage, but is reserved for only that spouse. For example, these things can count as separate property that you don’t have to divide:

Gifts
Inheritances
Property or assets one of you had before the marriage

What is Quasi-Community Property?

Quasi-community property is property that you acquired while you were living outside California. For the most part, this type of property is divided like community property is. It can include things like real estate, earnings and other assets, as well as debt.

What is Commingled Property?

Some things are part community property and part separate property. When property is part of each, it’s called commingled property. It can be tough to figure out how to divide it, so your attorney will give you the guidance you need. Some examples of commingled property can include:

A house you bought before you were married, but continued to live in and pay for after your marriage
A pension or retirement account that one of you owned before your marriage, but continued to contribute to during the marriage

What About Dividing Community Property During Your Divorce?

California law doesn’t require you to split everything down the middle. That would be a huge headache – and it could even force you to sell a business or do other things that are incredibly disruptive.

Instead, the law requires you to split things fairly. For example, if one of you really wants the sportscar and the other wants something of equal, comparable value, it’s okay to trade that way. Your attorney can help you negotiate with your spouse so you can divide your property equitably.

Dividing Community Debt During Divorce

Like your assets, both of you own the debt that you acquired during your marriage. That’s true even if the debt is on a credit card or mortgage with only one of your names on it. Here’s one exception, though: When you open a credit card after you separated from your spouse – that one only belongs to you.

Do You Need to Talk to an Attorney About Your Community Property and Divorce?

If you’re thinking about filing for divorce, or if your spouse has already filed, you may want to talk to a Stockton family law attorney about property division. It can be tough to categorize property as separate or community, and even tougher to value it all to make sure it’s divided fairly. If necessary, your attorney will help you find the right valuation professionals to ensure that you get what you deserve from your divorce.

Call us at 209-910-9865 to set up a consultation to talk about your case and get answers to all your questions, including those about permanent alimony, child custody and child support and more.

The Bitcoin Divorce: How Do Courts Divide Cryptocurrency?

February 27, 2018January 17, 2019
by Angie

Bitcoin and other cryptocurrencies are treated like property in a divorce – but how does division of these assets work in California? So far, it’s been a little bit tricky, so here’s what you need to know if your divorce involves Bitcoin or another cryptocurrency.

The Bitcoin Divorce: How Do Courts Divide Cryptocurrency?

When you’re talking to your Stockton divorce attorney about property division, make sure she knows that you have assets in Bitcoin. More separations involve cryptocurrencies than ever before, and in some cases, the values held in those currencies is exceptionally high. Like in any divorce, it’s imperative that both parties fully disclose the extent of their assets; if one doesn’t, the search for the funds can be time-consuming and expensive.

There are tools available to trace Bitcoin, according to Forbes, but many attorneys aren’t familiar with how to use them (or even familiar with the currency itself). However, courts are used to handling cases that require tracing assets – including those that are held offshore, which is a little similar to the types of Bitcoin holdings that are appearing in divorce court today.

Valuing Bitcoin During Divorce

Bitcoin’s value can fluctuate dramatically, which means it’s tough to pin down a dollar figure during divorce. What it’s worth when you file the papers isn’t necessarily the same as what it’s worth when the judge signs your divorce decree, so it’s not as straightforward as traditional investments are. You can’t count on the currency’s worth until the day your judge signs the final papers.

In some cases, it’s best for the partners to skip valuation and divide the Bitcoin itself. That way, it’s a fair split – and it causes fewer logistical problems throughout the divorce.

How is Bitcoin Divided in a Divorce?

Whether you and your ex-spouse choose to divide your Bitcoin assets or you value them and use them in the settlement, the courts treat the currency like it treats other types of property and assets. Each party will list their assets and the values of each on a Schedule of Assets and Debts (Form FL-142), and then exchange copies with the other party. If each party is satisfied that community assets and debts are fully disclosed, the property division phase of divorce can begin.

Community Property vs. Separate Property

If one or both parties to the divorce obtained Bitcoin or another cryptocurrency during the marriage, it’s likely to be considered community property. Under California law, spouses are supposed to divide community property equally.

If one or both parties came into the marriage with his or her own cryptocurrency, it’s likely to be considered separate property. It’s also likely to be considered separate property if one party inherited it or received it as a gift. Usually, separate property belongs to the same spouse throughout the marriage and during the divorce; it’s not typically subject to equal division like community property is.

Do You Need to Talk to a Stockton Divorce Lawyer About Bitcoin in Your Divorce?

We can help you if you’re dealing with a divorce that involves Bitcoin or another cryptocurrency. It’s our mission to help you reach a fair and just settlement, so please call us at 209-910-9865 or contact us online to schedule an appointment with an attorney.

Divorce

Protecting Assets From Divorce: 7 Tips to Safeguard Your…

November 21, 2017January 17, 2019
by Angie

In many divorces, the primary focus isn’t who did what or which party sacrificed the most. Instead, it boils down to one thing: Assets.

Even if your divorce is about more than assets, you need to know how to protect what you have – and avoid losing things to your spouse when you don’t have to. That’s not to say that you shouldn’t collaborate or work with your ex to have a successful divorce. You absolutely should… but you should also protect your assets from divorce.

7 Tips for Protecting Assets From Divorce

Protecting your assets from divorce can help you set yourself up for a successful future – a post-divorce life that isn’t unnecessarily difficult.

These seven tips can help protect your assets from divorce:

Stop fighting and negotiate
Put money aside
Keep track of money you brought into the marriage
Don’t give up pension and retirement accounts
Don’t rely on permanent spousal maintenance (alimony)
Ask for health benefits
Work with a tax professional immediately

1. Stop Fighting and Negotiate

Fighting with your spouse isn’t likely to get you a successful outcome. Instead, it leads to a more time-consuming divorce. The more you fight, the angrier you’ll both become – and nobody is going to budge. You’ll have to go to court to duke it out, and you’ll force the judge to make important decisions for you.

All of this costs money – and in the vast majority of cases, it’s money you don’t have to spend.

2. Put Money Aside

If your spouse blindsided you with news of the divorce, he or she has probably already stashed away enough cash to last a while. You haven’t had the same luxury, but it’s not too late. It’s always smart to tuck away a little separate cash during a marriage; however, if you didn’t, see if you have room in your budget to set aside 10 percent of what you bring in as an emergency stockpile. (Even 5 percent makes a difference over time, so do what you can!)

3. Keep Track of Money You Brought Into the Marriage

If you didn’t sign a prenuptial agreement, that’s okay. Focus on what you brought into the marriage or what you received during the marriage that’s only yours. That can include inheritances, property you owned, and personal savings you had before you married. Did your money finance a family business or your ex-spouse’s education? Let your lawyer know what happened to the cash and other assets you contributed while you were married so she can help divide it accurately.

4. Don’t Give Up Pension and Retirement Accounts

During most divorces, individual retirement accounts (IRAs) and pensions are on the chopping block for division. However, they don’t always have to be divided in half. Your Stockton divorce attorney will give you case-specific advice on IRAs and pensions.

5. Don’t Rely on Permanent Spousal Maintenance

In some cases, you can expect to receive spousal maintenance from your ex. What you can’t expect is that it will be a certain amount or last for a certain period of time – at least until the judge has ruled. You can’t count on permanent spousal maintenance as part of your future budgeting. In fact, you may not want to count on it at all; in many cases, alimony isn’t enough to support your current standard of living.

Typically, judges expect people who can go out and earn a living to do exactly that. That means your spousal maintenance isn’t likely to last as long as you want it to – and the judge might award you less than you want, too.

6. Ask for Health Benefits

Health insurance can get very expensive, very quickly. If your spouse carried you on his or her insurance during your marriage, ask if you can stay on the plan (even if you have to pay for it). Sometimes, ex-spouses can stay on a plan for up to 3 years. The catch is that you have to apply within 60 days of your divorce to get these benefits.

7. Work With a Tax Professional and a Financial Planner Immediately

While it’s one thing to create your own budget and try to figure out how much money you’ll need to live on as a newly single person, it’s another to have an accurate picture of what your financial future holds. For most people, it makes sense to work with a financial planner who can give you that picture. The same is true with taxes; a tax professional can tell you how much a proposed settlement will be worth after taxes – and how you can deduct alimony payments or take advantage of childcare tax credits to save money in the future.

Do You Need to Talk to a Divorce Lawyer About Protecting Your Assets From Divorce?

If you’re divorcing, we can help. Call us right away at 209-910-9865 or get in touch with a Stockton divorce attorney online to schedule a consultation today.

Divorce

Divorce and Property Settlement: 5 Tips to Negotiate With…

February 27, 2017March 24, 2020
by Anna Maples

When you go through a divorce in California, you’ll have to go through several steps — and one of them is creating a divorce property settlement. Here’s how to negotiate during divorce so you can reach a fair, reasonable outcome.

How to Negotiate During Divorce

If you’re like most people, you have no idea how to negotiate during divorce. That’s okay, because you probably haven’t been through it before.

However, before we get into how to negotiate, we need to cover:

What is a property settlement?
Whether you have to settle on debt
Divorce property settlement laws in California

What is a Property Settlement in Divorce?

California is a community property state. That means the property you acquire (beginning on the day you marry and ending on the day your marriage ends) is supposed to be divided equally between you when you divorce.

A property settlement agreement is the agreement you and your spouse reach to divide your property equally and fairly. Equal doesn’t always mean 50-50, though. It can mean that you each get your own vehicle, even if one is valued more highly than the other, and for the most part, the courts will take into account whether you feel the agreement is fair and equitable.

Does a Divorce Settlement Agreement Include Debt?

A divorce settlement agreement does include debt. All of the debt you incur while you’re married is considered community property; you’re both responsible for it.

Divorce Property Settlement Laws in California

In many cases, divorcing couples can figure out a property division arrangement that works for everyone involved.

However, if you and your spouse cannot reach an agreement, or if the agreement you reach is obviously skewed unfairly to one side, the Superior Court steps in and splits your property and debt equally.

Now that you’re familiar with the concepts you’ll have to deal with, here’s how to negotiate during divorce.

How to Negotiate During Divorce: 5 Tips to Help You Figure Out Your Divorce Property Settlement

Ideally, you and your spouse will be able to reach an agreement on your own. If you can’t, you’ll force the judge to step in. That can drag out your divorce, and often, couples come out of the courtroom feeling as if they’ve both lost. (Your Stockton divorce and property settlement lawyer will encourage you to reach an agreement with your spouse long before you show up in court because doing so will save you time and money — and you’ll have fewer headaches with the whole ordeal.)

Check out these five tips as you learn how to negotiate during divorce:

Remember that divorce and property division are business transactions.
Be logical and reasonable every step of the way.
Watch for coercive tactics.
Use helpful, rather than harmful, phrases.
Don’t become trapped in predictable scenarios.

#1. Pledge to Look at Your Divorce and Property Division Issues as Business Transactions

When you divorce, you’re dissolving your marriage contract. While that seems like an unfeeling way to look at things, it’s how the law sees it—and your property division is no different. Treating property division as a negotiation process can make things much simpler.

#2. Be Logical and Reasonable

You can’t afford to ignore the “big picture” when you’re negotiating a divorce settlement with your spouse. You don’t have to be adversarial; in fact, looking at a divorce like something you have to win can be counterproductive.

Related: More divorce negotiation tips

#3. Watch for Coercive Tactics

While coercive tactics can be tough to spot, if your spouse is attempting to use them on you, it’s imperative that you stop, back away from the process, and regroup. Coercive tactics that some spouses employ include:

Personal attacks, including insults and implications
Lying or threats
Psychological tricks, such as attempting to get you to feel guilty
Refusal to negotiate
Escalating demands
Planning delays to make things more difficult for you
Withholding money or access to your children

Chances are good that your divorce attorney is going to notice these tactics if your spouse uses them — they’re actually fairly common in adversarial divorces.

#4. Use Helpful Phrases to Encourage Your Spouse to Cooperate

Negotiations come to a grinding halt when one party says, “I’m not going to let you win.”

Remember that in successful negotiations, both parties “win.” When you’re working with your spouse to reach an agreement, try phrases that help the process along, such as:

“Can we go over this again to make sure I understand it correctly?
“Please correct me if I’m wrong, but…”
“My main concern is fairness.”
“Or we could try…”

#5. Don’t Become Trapped in Predictable Scenarios

It’s perfectly normal for divorce negotiations to seep into your emotions. The key, though, is not letting your emotions rule the negotiation process. When your spouse becomes angry or attempts to drag you into a disagreement, step back. Take some time to cool down and let your attorney summarize the issue so you can move forward.

What Should I Ask for in a Divorce Settlement?

If you’re like many people, you’ve heard divorce stories that run the length of the entire spectrum — some people say, “She took everything from me!” while others say, “We had a fair settlement. Actually, maybe I got more than he did.”

So what should you ask for in a divorce settlement?

The answer is simple: Ask for what you need to be reasonably satisfied with the outcome. Remember, too, that the judge is unlikely to sign off on anything that’s patently unfair (to you or your spouse). Don’t ask for the house, the cars, all the furniture, your savings accounts and half your spouse’s retirement — even if you’re pretty sure you deserve all those things.

California is a community property state, which means the assets you and your spouse acquired while you were married belong to both of you. You can make trade-offs, but make sure you’re asking for things you actually want. If you only want the house so you can sell it and pocket the proceeds, you need to know that the courts will expect you to trade something of equal value — and if your spouse would remain in the house with the children, it’s probably not a great idea to try to fight for it.

How Do You Negotiate Spousal Support?

Negotiating spousal support can be one of the most difficult aspects of your divorce. Before you begin negotiations, remember that the judge in your case will only sign off on your agreement if it’s fair to both of you — and if the paying party can reasonably afford it.

When one spouse doesn’t agree that the other needs spousal support, negotiating for it can be incredibly difficult. You may need your attorney to step in. However, if you’re both in agreement that some spousal support should change hands, make sure that you can see things from your spouse’s point of view.

Try these tips to negotiate spousal support:

Stay calm. If either of you becomes upset, negotiations are going to grind to a halt.
Don’t point the finger or make demands. Try saying things like, “I feel upset when you say I’m asking for too much. It’s difficult for me to support myself when I need to go to school to learn marketable skills. I’d like it if you could help me with $X so I can get on my feet.”
Actively listen to what your spouse is saying. That means summarize what he or she is saying and repeat it back so that your spouse knows you’re actually paying attention.
Ask questions to help your spouse collaborate with you. Think about saying things like, “I’m worried about being able to pay a sitter while I’m at school. What are your ideas?”

You don’t have to know exactly how to negotiate during divorce… but you do need to go into it with a positive attitude and be willing to settle for a reasonable outcome. You also have to know that your lawyer is here to help you every step of the way.

Do You Need to Talk to a Lawyer About How to Negotiate During Divorce?

We can help you with your divorce and property settlement agreement. Just call us at 209-910-9865 to tell us what you’re going through. We’ll put together a strategy that gets you the best possible outcome.