Articles Posted in Divorce

In the 1950’s it was common for a husband to be the breadwinner for his family and for a wife to stay at home to care for the children, but how much of that traditional stereotype persists today? In divorces, the traditional view of marriage creates assumptions such as “husbands are ordered to pay spousal support more often than wives” and “women are more often awarded custody of the children”. A study conducted by the University of Michigan tends to show that these old traditions and stereotypical roles may still endure today.

According to the study conducted by the University of Michigan, each year approximately 115,000 women are left without health insurance following a divorce. Additionally, two years after their initial divorce, the health insurance rate for divorced women remains low. Many health insurance companies allow employees who receive health insurance benefits to claim their spouses as dependents for insurance purposes. This allows the employee to obtain health insurance on behalf of his or her spouse through his or her employer. However, upon divorce, employees are generally not permitted to claim former spouses as dependents. Therefore, any divorcé formerly covered by his or her spouse’s health insurance must find new coverage.

The intriguing part of the University of Michigan study is that so many women, not men, are left without health insurance following divorce. Does this mean that men are typically still the breadwinners in modern marriages? The study also noted that even employed women had a difficult time maintaining health insurance through their employers. Because of the financial difficulties that can come with divorce, many women had to sacrifice paying health insurance premiums in order to pay for basic necessities.

Often in San Diego divorces, both spouses are unable to maintain the same lifestyle they enjoyed while living together. The lifestyle of the parties during marriage is called the marital standard of living. The financial reality of divorce is that it is more expensive to sustain two separate households than it is to sustain one. Thus, divorce can lead to an adjustment in spending, entertainment and square footage.

Spousal support is a tool used by Family Courts to attempt to equalize the living situation of both spouses. This is especially true if one spouse forgoes the opportunity to work for many years in order to take care of his or her children. If one spouse is the breadwinner and the other maintains the home and the children, upon divorce, the breadwinner will be able to support the same lifestyle but this would leave the non-working spouse with no ability to support him or herself and the children. Thus, the court will order the breadwinner to pay support to the non-working spouse in order for both to maintain similar standards of living post-separation.

Spousal support is calculated, on a temporary basis, using a guideline formula. The formula requires lawyers and judges to input both spouses “income” that is available for support. For a W-2 employee, this calculation is basic. The only factor to consider when determining income available for support is the gross wages from the spouse’s tax return or year-end form W-2. Some spouses however, have attempted to artificially deflate this income available for support by taking a reduction in salary and instead receiving housing or car allowance perks from their employer. If the court recognizes an attempt to artificially deflate income, it may impute the value of perks received by the spouse as additional income available for support.

Oprah Winfrey has become entangled in her father Vernon Winfrey’s divorce. Vernon married his current wife, Barbara Winfrey, in 2000. Vernon’s divorce papers contain allegations that Barbara engaged in “inappropriate marital conduct,” which refers to an extramarital affair. In her response, Barbara accuses Vernon of violent outbursts including an incident where he chased her with a gun and threatened to pull the trigger.

During their marriage, the couple has enjoyed living in a $1.4 million dollar home in Nashville. The home is owned by a trust, which was created and funded by Oprah. Vernon filed for divorce in Franklin, Tennessee in June of 2012. As a result of the divorce process, the Davidson County Sheriff’s deputies had an order to evict Ashley Williams, Oprah’s stepsister, from the Winfrey marital residence. However, the attorney for the trust had the order rescinded. The relationship between Oprah and Barbara seems beyond repair; however, that tension does not seem to extend to Oprah’s relationship with her stepsister.

As we have previously blogged, technology is playing an important role in San Diego divorces. Often, spouses use social media sites such as Facebook to gather information about their spouse to be used in the dissolution process. However, some spouses are taking the use of technology to a whole new level. Danny Lee Hormann did not simply peruse his wife’s Facebook when he suspected her of cheating. Instead he installed a gamut of spy equipment in the family home, on the family computer, on his wife’s cell phone, and in his wife’s car.

Michele Mathias, Hormann’s wife, became so worried that her husband was spying on her that she and their children searched the family home for recording devices and held whispered conversations on the lawn. Mathis argued that it was not only her family’s privacy that was invaded, but the privacy of every person who sent her a text message or used her computer was compromised as well. The police pursued criminal charges against Hormann for stalking and he was sentenced to thirty days in jail. According to Hormann, when others hear his story they reply that they would have done the same thing.

This type of spying and information gathering results in the collection of more private information in a short period of time than the discovery process may ever be able to gather. However, many lawyers are questioning the legality of this behavior and what information, if any, can actually be used as evidence in a dissolution case. Under the U.S. Constitution, we all have a “reasonable expectation of privacy.” This expectation of privacy is reduced in certain instances such as when a person is in public. Spying spouses have begun to argue that there is no reasonable expectation of privacy in a marriage.

Demi Moore, 49, and Ashton Kutcher, 34, garnered an enormous amount of media attention when they married in September of 2005. The spotlight continued to follow the couple when rumors of Kutcher’s infidelity began to spread. Allegedly, Kutcher cheated on his wife with two party girls Brittney Jones and Sarah Leal. Regarding her husband’s infidelity, Moore released the following statement “as a woman, and a mother and a wife, there are certain values and vows that I hold sacred, and it is in this spirit that I have chosen to move forward with my life.”

Moore and Kutcher are taking an interesting approach to the divorce process. Although the couple split in 2011, neither party has filed a divorce petition. Rumors have now spread that Moore and Kutcher were never legally married. However, the more likely explanation is that the couple is attempting to reach a settlement before a petition for dissolution of marriage is filed. It seems the former couple cannot agree on how to split up the enormous $290 million fortune they amassed. Unlike in the Brand-Perry divorce, Kutcher and Moore have earned a relatively similar amount. According to reports, Moore is worth $150 million while Kutcher is worth $140 million.

Throughout Del Mar and San Diego County, many divorcing parties are unclear about the concept of “alimony.” In California, the Family Codes and courts use the term “spousal support” instead of “alimony” to reference payments made from one spouse/former spouse to another for his or her financial support. Most parties are aware of the fact that once the divorce is over the court can order one party to pay the other spousal support. However, considering that the divorce process can take years for some litigants, many parties are unsure of what they should do in the mean time.

Temporary Spousal Support: Under the California Family Code, San Diego courts have the authority to make temporary spousal support awards. These awards are called “temporary” because they last only until the divorce is finalized. The purpose of a temporary spousal support award is to maintain the status quo until the time of trial and is intended to be a short-term solution. Based on the limited funds of the parties, it may be impossible for both to maintain the status quo of the marriage. Thus, in this situation, the judge will make an award as close to the status quo as possible. The quick and expedient method of calculating temporary spousal support is called the “guideline” formula. In order to determine guideline support, the judge will input various factors such as the incomes of the parties, tax filing status of the parties and any tax deductions and the formula will produce a guideline amount of support. However, the actual support awarded is within the family court judge’s broad discretion.

Permanent Spousal Support: “Permanent” spousal support is a misnomer. Often, even in long-term marriages, spousal support is not automatically “permanent.” Permanent spousal support simply refers to the spousal support award made at the conclusion of the divorce proceedings (as opposed to temporary support). In order to set permanent spousal support, the court is not permitted to simply use the guideline formula to come up with an amount. Instead, the family court judge will consider all of the factors listed under California Family Code section 4320. These factors include but are not limited to: the paying spouse’s ability to pay, needs of the parties based on the marital standard of living, health of the parties, the obligations and assets of both parties, the tax consequences of support, and any documented evidence of domestic violence. Additionally, the court may consider “any other factors” which would produce a “just and reasonable” result.

In San Diego, the divorce process can range between six months and several years. This significant time span can have a serious impact on value of assets. Considering the volatility of the stock market and real estate prices, the date of valuation can become a contested issue. Consider the following example: During marriage Husband created and operated a business. After separation, Husband continued to expend efforts and the value of the business grew substantially. By the time of trial the value of the business is triple than at the time of separation.All property acquired and all income earned during marriage is community property. Upon divorce, both parties have a one-half interest in the community’s portion of an asset. Because the business was created during marriage and Husband expended efforts in the business during marriage, a portion of that business is community property. Therefore, Wife will argue that for the purposes of division, the business should be valued at the time of trial. Husband, on the other hand, will argue that the business should be valued as of the date of separation.

Under California Family Code section 2552, “for the purpose of division of the community estate upon dissolution of marriage or legal separation of the parties…the court shall value the assets and liabilities as near as practicable to the time of trial.” Thus, as a general principle of law, assets are valued at the time of trial. However, the court may, for good cause, value all or any portion of the assets and liabilities at a date after separation and before trial to accomplish an equal division of the community estate in an equitable manner.California courts have determined that good cause exists to value an asset at the date of separation rather than the date of trial if the increase in the fair market value was due to the owner’s personal services, not capital assets. This means that if the value increased due to market fluctuations or other outside factors, the asset will be valued at or as near as possible to trial. However, if goodwill, accounts receivable, or other efforts by the owner lead to an increase in value, the asset will be valued at the date of separation.

Please contact us if you are considering a divorce from your spouse, a legal separation, or have questions regarding child custody and visitation. Nancy J. Bickford is the only lawyer in San Diego County representing clients in divorces, who is a Certified Family Law Specialist (CFLS) and who is actively licensed as a Certified Public Accountant (CPA). Don’t settle for less when determining your rights. Call 858-793-8884 in Del Mar, Carmel Valley, North County or San Diego.

Child support, if ordered, is an ongoing parental obligation that usually terminates when the child reaches eighteen years of age, graduates from high school, becomes married or is otherwise emancipated. The amount of child support owed is dependent upon a number of factors such as the income of both parties and the needs of the children. Child support is strictly enforced in a number of ways. Boxing champion Evander Holyfield recently learned that the court’s ability to enforce child support extends to celebrities. Holyfield was held in contempt of court for failing to pay past due child support.

In San Diego County, the Department of Child Support Services (DCSS) is one state entity that enforces child support orders. Holyfield was pursued by the Georgia Department of Human Services, which serves a similar function as DCSS. The Georgia Department of Human Services includes the Division of Child Support Services. By the time that the State of Georgia became involved in Holyfield’s case, his daughter, Emani Holyfield was eighteen years old and he owed $372,097.40 of unpaid support. By the time he was held in contempt of court, Holyfield’s debt had reached a staggering $563,000.00. The court ordered Holyfield to make payments in the amount of $2950.00 per month. In order to get a head start, Holyfield immediately made a payment of $17,700.

Discovery is an important tool for any party to use in a Del Mar family law case. Through the process of discovery, parties can obtain the information necessary to reach an agreement or decide which issues are contested. Discovery tools include: interrogatories, demands for production, depositions and subpoenas. Each tool is used to obtain a specific type of information from a particular litigant, witness, or third party. Although family law attorneys usually propound and respond to discovery, the client can have a vital role in lowering costs and ensuring the process goes smoothly.

Once a family law case has been filed or a spouse is anticipating filing for divorce, each party is under a duty to preserve evidence. The court encourages parties to freely exchange information so that the court can have a complete picture of the case. Any destruction or spoliation of evidence is punishable. As a client, as soon as you know that you will be involved in litigation it is crucial to begin organizing all relevant information. Attorneys need a complete view of your finances in order to calculate possible support or to begin analyzing the division of the marital estate. The following is a list of records that will likely be important in your divorce: (1) tax returns for the past three calendar years, (2) Form W-2s for the last three calendar years, (3) a series of your most recent pay stubs, (4) all statements for each credit card and debt card as of the date of separation, (5) K-1 forms if relevant, and (6) accounting data such as QuickBooks if relevant.

The date of separation is often a focal point of the discovery process. The marital economic community ends upon the date of separation. Under the California Family Code, the date of separation occurs upon the conversion of two factors. First, the parties must effect a physical separation and second, at least one party must have the subjective intent not to resume the marital relationship. The parties can only accumulate community property during the marital economic community. Thus, any property acquired or earned after marriage until the date of separation is community property. As a general rule, community property is divided evenly between the parties upon divorce. Many San Diego spouses have a collection of credit and debit cards that both parties use on a regular basis. In a divorce, an attorney will need to know the balance of all of those accounts as of the date of separation. Printing out your most recent statements including those as of and surrounding the date of separation is an easy way to get a head start on the dissolution process. Additionally, if you know a divorce is pending, it is also prudent to gather your recent tax returns and pay stubs to provide to your attorney. The client’s role in discovery is crucial, by preparing and keeping organized records, you can save your attorney time and save in legal fees.

Recently the California Court of Appeal handed down a decision that has settled an ongoing dispute throughout San Diego family courts. Family law attorneys agree that spouses owe each other the highest duties of good faith during marriage and undoubtedly throughout the litigation process. This duty requires parties to keep each other informed of their current financial state by exchanging Declarations of Disclosure.

In the beginning of a dissolution case, both parties complete their Preliminary Declarations of Disclosure, which consists of an Income and Expense Declaration and a Schedule of Assets and Debts. By completing these two forms and their requisite attachments the parties provide their current assets, debts, income and expenses. These figures can help the parties settle disputes regarding property division, child support or spousal support. If the court will hear a motion regarding support, the parties must also file these disclosures with the court. The judge will use the information provided to set support amounts. Because of the immense reliance on disclosure of finances, the court takes the fiduciary duties of spouses seriously.

In the recent California case, In re Marriage of Sorge, the court was faced with a slightly different scenario. The parties sought a modification of support at the trial court level; however, they were already divorced and had reached a final resolution of their case. Wife argued that Husband breached his fiduciary duties because he failed to disclose a material change in his finances. Husband argued that he was under no obligation to disclose any changes because the fiduciary duties between spouses end upon a final resolution of the case. The trial court agreed with Wife and Husband appealed the decision.

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