Contreras Law FirmSan Diego Divorce & Business Lawyer | Contreras Law Firm2024-02-28T11:50:57Zhttps://www.contreraslawfirm.com/feed/atom/WordPress/wp-content/uploads/sites/1404282/2020/05/cropped-favicon512-32x32.pngOn Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=582942023-12-14T17:55:56Z2023-12-14T17:55:56ZJanuary is one of the most popular months for people to initiate a divorce.
Most of the time, a divorce is a foregone conclusion in November or December, but neither party wants to break up the family (especially if there are children involved) right before the holidays. Sometimes, they happen because one or both halves of a couple engage in a bit of self-reflection at the end of the year and simply resolve to make changes for the better.
Regardless of what’s brought you to this point, you should take some strategic steps today, particularly if you suspect that the divorce you’re thinking about filing in January will be complicated or you have significant assets to protect.
Gather your financial information
You can’t divide the marital estate until you have a complete picture of what that entails. Start compiling a list of all your assets, including real estate, investments, pensions, business interests and personal property. Do the same thing with any debts. Gather up as much financial documentation as you can.
Review any marital contracts
If you have a prenuptial or a postnuptial agreement in place, that could significantly shorten your divorce process – but don’t rely on your memory about its terms. Get the document out and review it with the appropriate legal guidance so that you can understand its implications and enforceability.
Consult a few professionals
You may need professional help in several different areas during your divorce. Financial professionals can help you understand the tax consequences of dividing your assets and how to set a budget that’s realistic for your post-divorce lifestyle. Professional valuations may also need to be made for real estate, businesses and investments before you know their actual worth. It’s never too soon to start searching for the right people.
If you’re contemplating a divorce, it’s wise to think ahead. With the right legal guidance, you can make certain that your divorce goes as smoothly as possible.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=582912023-10-21T17:06:31Z2023-10-21T17:06:31ZAssess your assets
The first step in securing your financial future during a high-asset divorce is to take stock of your assets. Knowing what you own is the foundation for sound decision-making.
Separating your finances as soon as possible is essential to help prevent the other party from depleting your joint assets. Open individual bank accounts and reroute your income and expenses accordingly, but only after seeking legal guidance so that you can avoid any appearance of improperly diverting marital assets.
Additionally, high-asset divorces often involve significant real estate holdings. Consult with a real estate appraiser to determine the accurate value of your properties. It’s also wise to decide whether you wish to retain or sell any particular assets, so that you can more effectively decide how to divide them equitably with clear priorities in place.
Don’t skip asset valuation
Determining the value of your assets is vital to protecting your interest in them during a high-asset divorce. It’s essential to have an accurate valuation to help ensure a fair distribution. For instance, hiring a professional business appraiser can be crucial if you own a business. They can assess the company’s worth by considering factors like revenue, assets and market conditions. For investments, you’ll want to consult with a financial advisor who can provide a comprehensive evaluation of your investment portfolio. This helps ensure that investments are divided equitably.
Start managing your finances in targeted ways
Gather documents related to all your assets, including account statements, property deeds and investment records. Having these documents readily available can speed up the divorce process and protect your interests. You can also protect your financial privacy by changing passwords and PINs for all your accounts, including bank accounts, investment portfolios and digital assets. Confirm that sensitive financial information is secure and not accessible to your ex-spouse.
Preparation and knowledge are your best allies in securing your financial future in a divorce. By taking the necessary steps to assess your assets, engage experienced legal counsel, value your assets accurately and maintain financial privacy, you can protect what’s rightfully yours.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=582792023-09-12T11:24:24Z2023-09-12T11:24:24ZWhat happens to work arrangements?
It is very common for both spouses to work at the same small business. Even if one spouse is a chiropractor and is therefore the primary employee at the practice, the other might serve an administrative role. They may rely on the income and benefits provided by their position to support themselves. It may require some careful negotiations and transition planning to help one spouse leave the family business. If they intend to stay, there will usually need to be very clear rules and agreements in place to govern that arrangement.
What is the business worth?
One of the most difficult questions to answer about a thriving business is what the company's value actually is. The business valuation process can be very complex and may look at everything from a company's current market share to the long-term prospects for a specific industry in California. It can be very difficult for spouses to reach an agreement about what the business they own together is actually worth for the purposes of property division.
How will spouses share the company's value?
One spouse may want to continue running the business, while the other might prefer to sell the company and split the proceeds with their spouse. It can be a challenge for people to agree on how they will share the company's value, particularly when the business might be only partially marital property and would therefore be partially the separate property of one spouse with a greater interest in the organization.
Many of the major decisions concerning the business will end up in the hands of a judge if a couple litigates their divorce proceedings. Mediation and thorough negotiations are both means of reaching an agreement between spouses that will let them retain control over the outcome of their divorce. Ultimately, identifying the challenges that are likely to arise in a divorce involving a family-owned business may help people more effectively navigate the divorce process in California.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=582752023-07-10T09:35:05Z2023-07-10T09:35:05Zcommunity property standard helps guide the process of property division. Unless there is a written agreement between the spouses, they will have to share almost everything earned or acquired during the marriage unless they reach a mutually-agreeable alternative arrangement that doesn’t require judicial intervention.
Higher levels of income mean more valuable property at risk during divorce proceedings and more for people to disagree about when negotiating. These are some of the resources that may be particularly valuable – and vulnerable – when evaluated per community property statutes in a California divorce.
Equity accrued in real property
The marital home where a couple has lived together and also any vacation home or investment properties that they purchased during the marriage may be major contributing factors to the total value of the marital estate. Dividing real property can be a complicated process that requires verifying fair market value for those assets and then either selling them or refinancing them in many cases.
Retirement accounts and pensions
Married couples usually spend their retirement years together, and they may have dedicated a significant percentage of their household income to saving for retirement. Even when retirement accounts or pensions are employment benefits held in the name of one spouse only, they are frequently vulnerable to division during divorce proceedings.
Stock options and other deferred compensation
Those in highly-paid professions often receive a base salary and benefits, as well as deferred compensation or incentive pay. Stock options are a way to motivate someone's best performance and keep them at the company for as long as possible. They can also prove a point of contention during a divorce, as they can be difficult to value and even harder to divide before the distribution of that deferred compensation.
Business interests
Those who start their own small businesses or professional practices will devote huge amounts of time and personal resources to the organizations that they run. It can be a challenge to place an accurate value on a business and also to find a way to compensate someone for a portion of that value without diminishing the company's ability to function in the future.
Those who own real property or businesses, as well as those with retirement savings and complex compensation packages, often require professional guidance as they prepare for divorce proceedings. A California family law attorney can help someone understand what community property statutes mean for their assets and may help them both set realistic goals and push for the best possible outcome during property division proceedings.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=582612023-05-30T12:36:22Z2023-05-30T12:36:22ZCouples have more property to divide
The more that people have earned throughout the marriage, the more they have likely accumulated and saved. There will often be intense disputes about what is a fair and appropriate way to share marital property. People may feel entitled to retain assets that they technically need to include in their pool of marital property, such as deferred income that they will only receive several years after divorce or a retirement account held in the name of one spouse.
The process of locating all assets and determining what is marital and what is not can be far more challenging when people have higher income levels and more complex personal portfolios. Some assets, like real property, business holdings or stock options, may also be a challenge to value.
A higher standard of living can lead to support issues
Higher-income households are more likely to have one spouse give up their career or at least make professional sacrifices to support the other. The dependent spouse and any minor children in the family may have grown accustomed to a relatively high standard of living as well.
Spouses in need of support may have to compromise on their overall standard of living, while spouses paying support may have to compromise about what they feel is fair regarding their income. It can take far longer to work out solutions that are reasonable and appropriate when high-asset couples in California divorce.
They may also require more support during the legal process, such as assistance putting together a qualified domestic relations order to divide a 401(k) without losing some of its balance to taxes and early withdrawal penalties. Recognizing that the positive economic circumstances of a marital relationship may lead to a more challenging divorce can help those who are preparing for a complex California divorce to adjust their expectations and priorities accordingly.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=581962023-04-17T13:25:08Z2023-04-17T13:25:08Z1. They start out with an adversarial approach
People often choose to file for divorce specifically because of something that their spouse did, like cheating. When they bring up the topic of divorce, they make accusatory statements and approach the topic with a lot of demands.
This kind of aggressive approach will inevitably provoke an aggressive response and can lead to not just a blowout confrontation but also a very acrimonious approach to the divorce process. People can avoid this mistake by staying as calm as possible and not placing blame.
2. They bring it up before they have prepared themselves
Some people tell their spouse the first time they seriously consider getting divorced, not realizing that they might actually push their marriage closer to dissolution by doing so. It is common for people to panic when they hear someone mention divorce and begin aggressively planning their own strategies.
Someone who is only concerned that the marriage might fail could soon find themselves not only facing a filing initiated by their spouse but also struggling to get the records they need, like income paperwork. Most people considering divorce will benefit from gathering the information they need and having a strategy in place before they ever discuss the issue with their spouse.
3. They leave no room for compromise
Another common issue with one spouse bringing up divorce to the other is that they may start the conversation primarily to impose their expectations on their spouse. They explain the custody terms and property concessions they want and are completely closed off to the possibility of compromise. To avoid this mistake, people often want to wait to discuss their expectations in detail until their spouse has had a chance to process. They may also need to learn state law to set realistic expectations.
Avoiding the most common mistakes that people make when discussing divorce with their spouses can help to protect the interests of those who believe their marriage may soon end.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=581942023-03-21T11:27:10Z2023-03-21T11:27:10ZWhen is it possible to change a settlement?
In most cases, for someone to convince the family court that they need to go back over a property division decree and alter the outcome, there will need to be proof that there were issues with the initial order. For example, one spouse might uncover hidden assets after the end of the divorce process.
One of the most famous rulings related to hidden assets occurred in California in the 1990s. After one spouse filed for divorce and hid lottery winnings technically received during the marriage, the other discovered the lie after the divorce. When the courts heard the case, they ruled in favor of the spouse who had been denied the information about the lottery winnings and effectively awarded the full value of the hidden property to that spouse.
Barring some kind of spousal misconduct or severe mistake on the part of the lower courts, it is often very difficult to go back and correct a settlement issued during a divorce.
Getting it right the first time is the best option
There is no guarantee of success when appealing a family law matter or asking the courts to review a prior decision. The best chances of obtaining a reasonable outcome in property division matters come from performing a thorough review of resources and understanding the rules that apply to community property in California divorces.
Learning more about property division and family law rules with the assistance of an experienced legal professional can benefit those who are considering divorce in California.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=581652023-01-19T21:46:41Z2023-01-19T21:46:41Z
They classify all the resources
If you have always lived in California with your spouse, then the process of determining what property is subject to division is relatively simple. Inheritances and assets that you owned before marriage will be separate property.
Commingled assets and whatever you acquired during the marriage will be separate property. In some cases where couples spent part of their marriage in another state and part of their marriage in California, they may need to treat some of their assets as quasi-community property.
A judge divides your community property
Once you establish which assets are subject to division, the judge presiding over your case will have to make decisions about the most appropriate and fair way to share that property. Many people think of community property laws as automatically leading to a 50/50 division of assets, but that is not always what happens.
Judges have the authority to ask you to sell assets to share the proceeds. They can grant one spouse more property than the other or order the division of specific resources, like retirement accounts. They can even make one spouse accountable for specific debts taken on during the marriage as part of the property division process. All of these actions together may help produce the most appropriate property division settlement that the judge can conceive of based on their understanding of your marital estate.
One of the biggest concerns about litigating property division in California is the unpredictable nature of the process and how a judge has the final say in matters that can be very personal. Some spouses will determine that cooperating with one another is the best solution, while others may end up litigating because they simply cannot compromise with each other.
Learning more about property division rules and other important standards for high-asset California divorces can help those thinking about the potential end of their marriages.]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=581482023-01-13T18:22:36Z2022-12-16T02:40:33Z1. Pick and stick to a parenting app
There may come a time in the future when a disagreement with your co-parent will not provoke an emotional response. No matter how even keel you typically are, you will struggle to eliminate emotional responses during disagreements with your co-parent early into this transition.
Having all of the information about your parenting arrangements in one place and an app recording what you say can go a long way toward minimizing the conflict you may experience. When you have a solid track record of working together and relating to one another you can move on to more informal communication methods if you both agree.
2. Don't think about your co-parent as your ex
Although it will be challenging at first, one of the most helpful things you can do when you share custody of your children with a former romantic partner is to change how you view them. It can be hard to work positively with them and even harder to view your relationship with them positively.
If you start thinking of them as a parent and focusing on how they treat and care for your children, it will be a lot easier for you to react with compassion during a dispute instead of becoming
3. Commit to a conflict resolution system
Do you both still attend the same church and have a pastor who can talk to you when emotions run high? Have you gone to marriage counseling, meaning you have a therapeutic relationship with someone who can teach you conflict resolution and communication skills or mediate disputes?
The two of you need to be realistic about the fact that you will inevitably disagree about certain details, which means having a plan in place to work out that dispute when it happens.
The more careful you are with how you treat one another and structure your parenting plan, the easier it will be for you to minimize the conflicts the two of you have with one another and to move on from those disputes after you resolve them. Consistently keeping the focus on your children is crucial for those hoping to navigate a co-parenting relationship with minimal conflict.
]]>On Behalf of Contreras Law Firmhttps://www.contreraslawfirm.com/?p=581262022-11-09T23:14:46Z2022-10-19T18:35:21Zbetween $15,000 and $20,000.
Many of the divorce expenses are actually related to things you may not be thinking about right away, like how you are going to afford the downpayment on a new condo or the security deposit on a new apartment, or what it will cost to refinance your car into only your name. You may also have to buy new furniture, kitchen goods and more – and that can all get expensive, very fast.
So, how do you plan ahead when divorce is inevitable? Here are some tips:
Get your own bank account and credit card.
If you only have a shared bank account and shared credit cards with your spouse, it’s time to start establishing financial boundaries and building your own credit. Open your own account and have your income directly deposited. You can then transfer money to the shared account for shared expenses.
Then, open a credit card solely in your name. You should use it, but sparingly. That will help you build an independent credit history and allow you to track your spending.
Gather your financial records and start going through them.
Your financial records are key to establishing the marital assets and debts, which has a big impact on what you receive when the property is divided. Gather up:
Your checking and savings accounts
Retirement account records for you and your spouse
Investment account statements for the past two years
Credit card statements for at least the past year
Pay stubs and records of any bonuses paid to your and your spouse
Income tax returns for the past two years
Copies of deeds or titles to any real estate, cars or recreational vehicles and boats
Go over your usual monthly expenses and anticipate future ones.
You don’t know what it will take to financially survive on your own until you understand what money you’re spending today and what your spending will look like in the future.
You need to start investigating what it will cost to replace your housing and furnishings, what it will cost you to refinance any real property into your own name and how your retirement or investments will be affected in the future.
At any age, divorce is a complicated undertaking, and financial issues are a huge part of that. Make sure you have experienced legal guidance by your side.
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