Monthly Archives: May 2025

Handling Digital Assets in a Property Division
California Divorce, Property Division, Property Division

Handling Digital Assets in a Property Division

One area that is often overlooked during a divorce is the division of digital assets. In today’s technology-driven world, understanding how to handle digital assets during a divorce in California can be confusing. CA Certified Family Law Specialist Judy L. Burger explores what constitutes digital assets, how they are classified, and the steps you can take to ensure a fair property division.

What Are Digital Assets?

“A digital asset is anything digital that has value, establishes ownership, and is discoverable.”

According to the Internal Revenue Service (IRS), “For U.S. tax purposes, digital assets are considered property, not currency. A digital asset is stored electronically and can be bought, sold, owned, transferred, or traded.”

The tax definition of a digital asset is “any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology.”

Digital assets encompass a broad range of online properties and items. These can include, but are not limited to:

  • Cryptocurrency: Digital currencies like Bitcoin, Ethereum, and others.
  • Social Media Accounts: Profiles on platforms such as Facebook, X (formerly Twitter), Instagram, and LinkedIn.
  • Digital Media: Photos, videos, music files, and e-books stored on devices or in cloud storage.
  • Online Accounts: Email accounts, online subscriptions, and loyalty programs that may have monetary value.
  • Intellectual Property: Any digital content created, such as blogs, eBooks, websites, or applications.

How Are Digital Assets Valued?

One of the first steps in dividing digital assets is to determine their value. Unlike traditional assets, the value of digital assets can fluctuate significantly. Here are some approaches to consider:

  • Cryptocurrency: The value of cryptocurrencies can change rapidly. It’s important to assess the value at the time of the divorce or when the asset is being divided.
  • Social Media: While social media accounts often hold no direct monetary value, they can have significant value tied to branding or followership for business owners or influencers.
  • Digital Media: Photos and videos may have sentimental value but often lack market value unless they pertain to a business or are licensed for commercial use.

CA Property Division Lawyer Judy Burger has long-term working relationships with forensic accountants and actuaries, business and corporate attorneys, and other professionals who can assist with valuing different types of digital assets.

Community Property vs. Separate Property

California is a community property state, meaning that most assets acquired during the marriage are considered community property and must be divided equally between both spouses. However, determining which assets fall under community property and which are separate can be challenging, especially with digital assets.

Community property generally includes any digital assets acquired during the marriage. For example, if a cryptocurrency investment was made using joint funds, it’s considered community property.

Separate property is any assets acquired prior to the marriage or assets received as gifts or inheritances. If a spouse had a digital asset before marriage, it typically remains their separate property.

Key Considerations for the Digital Asset Division

CA Certified Family Law Specialist recommends the following when approaching a digital asset division:

  1. Full Disclosure: Both parties must fully disclose all digital assets. Hiding digital assets can lead to legal repercussions and negatively impact future negotiations.
  2. Access to Accounts: Ensure both parties have the necessary access to important digital accounts during the division process. This may involve sharing passwords or transferring ownership.
  3. Documentation: Keep thorough records of all digital assets. Screenshots, purchase receipts, and valuations can aid in the division process.
  4. Consulting an Expert: If there’s significant value or complexity in your digital assets, Judy Burger can connect you with a professional who specializes in digital asset valuation.
  5. Seeking Legal Guidance: Judy L. Burger is a highly qualified family law attorney experienced in digital asset division who can help you:
  • Understand your rights and obligations regarding digital assets.
  • Ensure thorough and fair asset disclosure.
  • Negotiate a division that accurately reflects the value of all assets, including digital ones.

Don’t Neglect Valuable Digital Assets in a CA Property Division

In the digital age, it’s crucial to recognize that assets go beyond physical property. Handling digital assets with care and proper legal guidance can lead to a smoother property division during a divorce in California. By being informed and prepared, you can protect your interests and secure a fair outcome.

If you need assistance with navigating digital asset division in your divorce, schedule a consultation with Attorney Judy L. Burger at one of her eight offices across California.

 

What Should Be Covered In a CA Child Support Agreement?
California Divorce, Child Custody, Child Support, Marriage

What Should Be Covered In a CA Child Support Agreement?

Divorce often brings about numerous changes and challenges, especially when children are involved. One of the most critical aspects of post-divorce arrangements is child support, which is designed to ensure that children continue to receive financial support from both parents. CA Certified Family Law Specialist Judy L. Burger discusses what should be covered in a child support agreement.

What Is Child Support?

In California, child support is a financial obligation that one parent pays to the other for the care and upbringing of their children. This support is intended to cover essential living costs, including housing, food, clothing, education, and medical expenses. The overarching goal is to ensure that children’s needs are met, regardless of their parents’ relationship status.

Key Components of a Child Support Agreement

When creating a child support agreement, several critical aspects should be considered and clearly outlined to prevent conflicts and ensure that all needs are met.

1. Base Support Amount

The agreement should specify the base support amount that is to be paid regularly. California changed the formula for calculating child support. Beginning September 1, 2024, and continuing into 2025 and beyond, parents creating a child support agreement will use a new formula, called the “K factor.” It adjusts the percentage of net income for lower-income parents and recalibrates contributions for higher-income earners. The new formula will increase child support at most income levels and create a fairer system that more accurately addresses each parent’s financial situation. 

It’s crucial that both parents understand how this amount was determined and agree on its payment frequency, whether monthly, bi-weekly, or according to another schedule.

CA Certified Family Law Specialist Judy L. Burger can explain these changes and how they could affect you.

2. Healthcare Expenses

Healthcare costs, including insurance premiums, co-pays, and any uncovered medical expenses, should be addressed in the agreement. Parents need to determine who will be responsible for providing health insurance for the children and how ongoing medical expenses will be shared. Having a clear healthcare provision ensures that children receive necessary medical care without financial disputes.

3. Childcare Expenses

If both parents are working or attending school, childcare expenses may also need to be included in the child support agreement. This should cover costs for daycare, after-school programs, or babysitting services. Clear specifications on how these costs will be divided can help prevent misunderstandings later on.

4. Educational Expenses

Expenses related to education should also be considered, particularly if children are enrolled in private schools or require special education services. The agreement should detail how tuition and related fees will be paid and how costs for college may be handled, including contributions each parent might make toward higher education.

5. Extracurricular Activities

Costs associated with extracurricular activities such as sports, music lessons, clubs, and other enrichment programs should be included as well. Parents should discuss and agree on how these expenses will be covered and the process for deciding on their children’s involvement in such activities.

6. Support Modifications

Life circumstances can change, and it may become necessary to modify the child support agreement over time. The agreement should include a clause outlining how modifications can be made, referencing situations like significant income changes, changes in the children’s needs, or changes in custody arrangements.

7. Enforcement and Penalties

It’s vital to include information on how the agreement will be enforced and the penalties for non-payment. California courts take child support obligations seriously, and understanding the legal implications of failing to comply with the agreement can help motivate both parents to adhere to the terms.

8. Other Key Factors

Some other notable factors to be spelled out in the agreement include:

  • Amount of each payment
  • Frequency and timing of payments (weekly on Mondays, the 1st of each month, etc.)
  • Method of payment (Check, bank transfer, etc.)
  • Monetary responsibilities by category (school fees, medical expenses, etc.)
  • How to determine whether a cost is reasonable
  • Which parent will claim the child as a dependent
  • When the child support obligation will end

Get Help Creating CA Child Support Agreements

Creating a comprehensive child support agreement is crucial for ensuring that the needs of children are prioritized following a divorce. By clearly outlining responsibilities and expectations related to financial support, both parents can contribute to a stable and nurturing environment for their children.

If you are in the process of drafting or negotiating a child support agreement in California, schedule a consultation with CA Certified Family Law Specialist Judy L. Burger. She is an experienced family law attorney who can provide personalized legal advice and assistance to help you navigate the complexities of child support and ensure that your agreement reflects the best interests of your children while protecting your rights as a parent.

 

What Can Disqualify Me from Spousal Support in California?
California Divorce, Spousal Support

What Can Disqualify Me from Spousal Support in California?

Any divorce can be challenging, especially when it comes to financial matters like spousal support. However, not every spouse is guaranteed this assistance. CA Certified Family Law Specialist Judy L. Burger discusses several factors that can disqualify an individual from receiving spousal support.

What Is Spousal Support?

In California, spousal support is court-ordered financial assistance from one spouse to the other during or after a divorce or legal separation, intended to maintain the lower-earning spouse’s standard of living. A family law judge will consider several factors when determining the length and amount of spousal support, if any, to be awarded.

Spousal support aims to help the lower-earning spouse become self-sufficient and maintain a standard of living comparable to what they had during the marriage. 

There are three main types:

  1. Temporary support: Ordered during the divorce process to ensure financial stability until the divorce is finalized. 
  2. Permanent support: Ordered at the end of divorce proceedings, potentially lasting indefinitely, especially in long-term marriages. 
  3. Rehabilitative support: Designed to help the lower-earning spouse acquire skills or education to become self-supporting. 

CA Divorce Attorney Judy L. Burger can explain more about each type and the circumstances under which you can expect to receive each type of support.

Why Would a Judge Deny Spousal Support?

Spousal support in California is not automatically granted and can be influenced by various factors. Understanding what may disqualify you from spousal support is essential as you navigate the divorce process. Let’s explore these potential disqualifications in more detail.

Duration of the Marriage

One of the key factors influencing spousal support is the length of the marriage. Typically, marriages that have lasted less than 10 years may not warrant long-term support. Shorter marriages tend to result in temporary support, which may not extend beyond the divorce process. Conversely, long-term marriages (generally those lasting over 10 years) are more likely to result in a higher likelihood of spousal support, but this can vary based on individual circumstances.

Ability to Self-Support

The court will evaluate each spouse’s ability to support themselves financially after the separation. If the receiving spouse is deemed capable of earning a sufficient income or has substantial separate assets, the court may decide against awarding spousal support. This assessment typically considers factors like education, job experience, and the availability of employment opportunities.

Adultery or Fault in the Marriage

While California is a no-fault divorce state, meaning that neither spouse is required to prove wrongdoing to obtain a divorce, the court may consider issues such as infidelity when determining spousal support. If one spouse’s actions (like committing adultery) are found to be the cause of the divorce, it may negatively impact their eligibility for support.

Remarriage of the Receiving Spouse

If the spouse who is receiving support remarries, they may automatically become ineligible to continue receiving spousal support. The rationale behind this rule is that a new marriage typically provides financial support and stability that diminishes the need for spousal support from the former partner.

Cohabitation with a New Partner

Similar to remarriage, if the receiving spouse begins cohabiting with another person in a romantic relationship, the court may consider this a reason to disqualify them from spousal support. Cohabitation can imply financial support from the new partner, which can lessen the necessity for ongoing spousal support.

Failure to Make a Good Faith Effort

The court expects the receiving spouse to make a reasonable effort to become self-sufficient. If they fail to actively seek employment or refuse to accept job opportunities that match their qualifications, they may risk losing their right to spousal support. The obligation to demonstrate a good faith effort in finding employment can be a critical factor in support determinations.

Get Help Obtaining Spousal Support In a California Divorce

By being informed about the conditions surrounding spousal support, you can better prepare yourself for the financial aspects of divorce and make decisions that align with your long-term well-being.

If you find yourself needing guidance, schedule a consultation with CA Certified Family Law Specialist Judy L. Burger. She is an experienced family law attorney who can provide personalized legal advice based on your situation.

 

Explaining “Fair Market Value” In a Property Division Settlement
California Divorce, Mediation, Property Division

Explaining “Fair Market Value” In a Property Division Settlement

When it comes to property division, particularly in the context of divorce or the dissolution of a partnership, “Fair Market Value” (FMV) is an essential concept. Understanding FMV is crucial for ensuring equitable distribution of assets and can significantly impact the outcome of property settlements. CA Certified Family Law Specialist Judy L. Burger breaks down what Fair Market Value is, how it is determined, and its relevance in property division settlements.

What is Fair Market Value (FMV)?

Fair Market Value is defined as the price that a property would sell for on the open market, under typical conditions, and between a willing seller and a willing buyer, both of whom are informed and not under any compulsion to buy or sell. In simpler terms, it represents what a property is worth in the current market, reflecting its true value based on comparable sales and market conditions.

In property division settlements, particularly during divorce proceedings, assets need to be evaluated and valued to ensure that both parties receive a fair share of the marital property. Considering FMV helps in:

  • Equitable Distribution: California requires the division of property to be “equitable,” meaning fair but not necessarily equal. FMV helps determine a realistic value for assets and guides how they should be divided.
  • Negotiations: Having an accurate FMV makes negotiations more straightforward. Both parties can enter discussions with a mutual understanding of what properties are worth, making it easier to agree on asset distribution.
  • Legal Proceedings: If a dispute arises and the case goes to court, the determination of FMV is often critical. Courts tend to rely on expert appraisals to establish FMV for assets involved in property division.

CA Property Division Attorney Judy Burger has a wealth of experience in dividing and valuing community assets and liabilities. With a keen eye for detail, she skillfully identifies separate property assets, ensuring that her clients’ individual assets are clearly acknowledged and legally confirmed. Judy has successfully navigated a variety of cases, specializing in the division of medium to large estates, where her expertise translates into effective and fair settlements for her clients.

How is FMV Determined?

Determining the Fair Market Value of a property may involve several methods:

  1. Comparative Market Analysis (CMA): This method involves comparing the property in question to similar properties that have recently sold in the same area. Real estate agents often conduct CMAs to estimate property values.
  2. Professional Appraisal: A qualified appraiser can provide an unbiased FMV assessment. To arrive at a value, they will consider factors such as property location, size, condition, and recent sales of comparable properties.
  3. Income Approach: The FMV of investment properties may be determined based on their income. This approach estimates the property’s worth based on its potential to produce income.
  4. Cost Approach: This method considers the cost to replace or reproduce the property minus depreciation. It’s often used for unique properties or those with few comparable sales.

Challenges in Determining FMV

While the concept of Fair Market Value may sound straightforward, various challenges can arise during its determination:

  • Market Fluctuations: Real estate markets are dynamic. Economic conditions, interest rates, and other factors can affect property values over time, leading to potential disputes over FMV.
  • Emotional Attachments: Parties involved in property division may have emotional attachments to certain properties, which can cloud their judgment regarding its FMV.
  • Disagreements on Valuation Methods: Different methods of determining FMV may lead to varying results, and parties may disagree on which approach is most suitable.

Understanding Fair Market Value is essential for anyone navigating property division settlements in divorce or partnership dissolutions. It serves as a cornerstone for equitable distribution and ensures that both parties are treated fairly based on the actual value of their assets.

Learn More About Fair Market Value in a CA Divorce Property Division

Engaging an experienced and qualified Family Law Specialist like Judy Burger can help clarify the value of properties in question, making the settlement process smoother and more just. Whether you’re planning to negotiate a settlement or are preparing for potential litigation, a solid grasp of FMV will empower you to advocate for your interests effectively.

Ms. Burger has extensive relationships with Forensic Accountants and Actuaries, Litigation Real Estate Appraisers, Real Estate Attorneys, Business and Corporate Attorneys, Title Companies, and Real Estate Professionals who assist her in determining the FMV of properties during divorce proceedings. Contact The Law Offices of Judy L. Burger nearest you for more information and assistance.