How Can Temporary Orders Affect a Property Division?
California Divorce, Property Division

How Can Temporary Orders Affect a Property Division?

Temporary orders are court-issued directives that are put in place to govern certain aspects of the divorce until a final settlement is reached. Don’t underestimate their importance – they significantly impact your immediate future and can influence the final decisions on your divorce. How do temporary orders affect a property division? CA Certified Family Law Specialist Judy L. Burger shares some vital insights.

What Are Temporary Orders?

Temporary orders can significantly impact property division during divorce proceedings. These orders may cover a wide range of issues, including child custody, spousal support, and the use of marital assets.

When a couple separates, a judge has the authority to issue temporary orders, also called “pendente lite” or “PL orders.” These orders can address any significant issues that the couple needs a court order for during the divorce proceedings. Temporary orders enable the couple to live separately and begin dividing their marital assets before the final divorce decree is issued.

Because family law cases typically progress in stages, temporary orders are issued during the intermediate steps between the start of the case and the final order. These temporary orders may become part of the final order or be included as attachments.

Temporary Property Division Orders

Temporary orders can affect the distribution of assets and debts in several ways regarding property division.

  1. Use of Marital Assets: Temporary orders may dictate how marital assets, such as the family home, vehicles, and bank accounts, will be used during the divorce process. For example, the court may decide which spouse gets to remain in the marital home or how joint bank accounts are to be managed while the divorce is pending. Consequently, it would be best to consider whether it’s a good idea to allow your spouse to have the house as part of a temporary order while you move out. This is because courts may consider the current living arrangements when making a final decision.
  2. Financial Support: Temporary orders can also address financial support during the divorce proceedings. This may include temporary spousal support or an order for one spouse to contribute to the other’s living expenses. These financial arrangements can impact the funds available for property division once the divorce is finalized.
  3. Debt Responsibility: Temporary orders may allocate responsibility for paying marital debts while the divorce is ongoing. This can affect each spouse’s financial standing and ability to take on additional debt or acquire assets during divorce.
  4. Asset Preservation: In some cases, temporary orders may include directives to preserve certain assets during the divorce proceedings. This can be particularly important for high-value assets, business interests, or investments that require protection until a final property division is determined.
  5. Impact on Final Settlement: It’s important to note that the decisions made in temporary orders can influence the final property division settlement. For example, if one spouse exclusively uses the marital home during the divorce, this may be considered when determining how other assets are divided.

Get Help with Temporary Orders in Your CA Divorce Property Division

It’s crucial for individuals going through a divorce to understand the implications of temporary orders on property division. Consulting with a highly qualified family law attorney like Judy Burger can provide clarity on how temporary orders may impact the division of assets and debts. Her experienced legal guidance can help individuals navigate the complexities of temporary orders and work towards a fair and equitable property division settlement.

Temporary orders play a significant role in shaping the property division process during a divorce. Understanding how these orders impact the use of marital assets, financial support, debt responsibility, asset preservation, and the final settlement is essential for individuals seeking a fair outcome in property division. Judy Burger can provide valuable support and guidance in navigating the complexities of temporary orders and their implications for property division.

To schedule a consultation, contact us at the nearest office in Gold River, San Francisco, Silicon Valley, Beverly Hills, San Diego, Ventura, San Rafael, or Santa Barbara.

Exploring Inheritances and Community Property Rules in a CA Divorce
California Divorce, Property Division

Exploring Inheritances and Community Property Rules in a CA Divorce

Navigating the complexities of community property and inheritances in a California divorce can be challenging. Understanding how these assets are treated under California law is crucial for anyone going through a divorce involving inheritances and community property.

Certified Family Law Specialist Judy L. Burger explains how community property rules affect inheritances in a California divorce.

Community Property

California is one of the few community property states in the United States. In community property states, most assets and debts acquired during the marriage are considered community property, belonging equally to both spouses, regardless of who acquired them.

Community property includes income earned during the marriage, real estate purchased during the marriage, other assets acquired, and debts incurred by either spouse during the marriage. In the event of a divorce, community property is typically divided equally between the spouses, although there can be exceptions based on specific circumstances.

Inheritances and Separate Property

Inheritances and gifts received by one spouse are considered separate property in California. This means that if one spouse receives an inheritance or gift during the marriage, it is generally not considered community property and belongs solely to the recipient.

However, commingling separate property with community property can complicate matters. For example, if an inheritance is deposited into a joint bank account or used to purchase a marital home, it could lose its status as separate property and become subject to division as community property.

Transmutation is the process by which separate property becomes marital or community property. This can occur when separate property is mixed with community property or when both spouses agree to treat certain separate property as community property. Transmutation can also happen through a written agreement signed by both spouses.

How Can You Protect An Inheritance?

It’s crucial to ensure that an inheritance remains distinct from marital assets to safeguard it from being considered communal property. This may require placing the inheritance in a separate account, refraining from mixing it with communal assets, and maintaining thorough records of the inheritance and its utilization. Another way to protect an inheritance given to one spouse is to place it into a trust.

Individuals can also consider signing a prenuptial or postnuptial agreement to safeguard inheritances from property division during a divorce. These legal agreements provide clear guidelines for property division and outline how inheritances will be handled in the event of a divorce. By defining the property statuses and the rights and responsibilities of each spouse, these agreements can protect inheritance rights.

The court may exercise its own discretion in cases involving fairness and equitable distribution. Even if an inheritance is considered separate property, the court has the power to modify the allocation of assets to ensure a just outcome. This may involve assigning a more significant share of other marital assets to the spouse who did not inherit to achieve a balanced division of property.

Seek Legal Guidance from an Experienced CA Property Division Attorney

Given the complexities of inheritances and community property rules in California, seeking guidance is advisable. Certified Family Law Specialist Judy L. Burger is experienced in handling complex divorce and property division cases. She can provide valuable insight into how to protect separate property, navigate the division of assets, and ensure that your rights are protected throughout the divorce process.

Understanding the treatment of inheritances and community property under California law is crucial for individuals going through a divorce. Get informed and seek legal counsel to protect your separate property. Contact The Law Offices of Judy L. Burger in California to get seasoned help navigating the complexities of divorce involving inheritances and community property.

 

Family Lawyer or Certified Family Law Specialist?
California Divorce, Child Custody, Child Support, Domestic Violence, Legal Separation, Property Division, Restraining Order, Spousal Support, Termination of Parental Rights, Termination of Parental Rights, Visitation

Family Lawyer or Certified Family Law Specialist?

When family law matters occur, you need a family lawyer, right? But what about complex situations? A Certified Family Law Specialist is just that – a certified specialist who handles complicated and difficult family law cases. When you have a heart problem, you don’t want a general practitioner; you want a heart specialist. Similarly, when your family has serious problems, turn to a CA Certified Family Law Specialist like Judy L. Burger.

What Is a Certified Family Law Specialist?

A Certified Family Law Specialist is an attorney who has been certified by the State Bar of California Board of Legal Specialization as having expertise in the area of family law. This certification is only awarded to attorneys who have demonstrated a high level of experience, proficiency, and commitment to family law through a rigorous process that includes examination and peer review. Certified Family Law Specialists are recognized for their specialized knowledge and proficiency in handling complex family law matters, including divorce, child custody, spousal support, complex property divisions, and other related issues.

A Certified Specialist Has Extensive Experience in Complex Cases

Certified Family Law Specialists are required to maintain their expertise by handling complex family law cases in order to expand their knowledge and experience. To maintain their certification, they must undergo recertification every five years, which involves completing additional continuing education and applying their extensive knowledge to assist California families.

A CFLS will have considerable experience with:

  • Divisive legal separations after a long marriage
  • Difficult divorces where the parties cannot agree on anything
  • Military divorces where both parties are actively serving
  • Complex business valuations where both spouses are owners
  • Sophisticated property divisions involving retirement and other investments
  • Heated mediations over support agreements
  • Emotionally charged situations involving different family backgrounds
  • Intense negotiations involving children and custody
  • Heart-wrenching discussions over grandparents’ rights
  • Litigating difficult child custody and support cases
  • Ex parte “emergency” hearings to stop or prevent abuse
  • Domestic violence assistance for spouses and children
  • Complex paternity issues for fathers
  • Completing and filing voluminous paperwork
  • More…

Experienced and highly knowledgeable in family law, Judy Burger, a Certified Family Law Specialist, brings a wealth of expertise and legal acumen to the table. Her extensive education, years of practical experience, and specialized certification make her an ideal choice for obtaining the results you seek in your family law matters.

A Family Law Generalist May Not Be Enough

Difficult family law matters are often mentally and emotionally challenging. The possible complexities and problems are legion and no two cases are alike. A general family law attorney may know the law, but highly charged issues with layers of complexity can be beyond their level of expertise. Realizing your lawyer is out of his or her depth in the middle of your divorce, child custody battle, or other personal matter is far too late. You could risk:

  • Losing custody
  • Limited visitation rights
  • Surrendering valuable assets
  • Burdensome support agreements
  • Your personal safety
  • Your family’s welfare
  • Your reputation
  • Your future

An experienced CFLS like Judy Burger encounters tough cases on a regular basis, so she has experience and resources a general family law attorney simply doesn’t have. If you anticipate a volatile situation in the making, now is the time to see a specialist for seasoned guidance, advice, and representation.

Don’t risk your safety, your family, or your future. Contact The Law Offices of Judy L. Burger, Certified CA Family Law Specialist, to schedule a consultation today. Our team is prepared to go above and beyond what a mere family lawyer can do for you!

 

What Military Families Should Know About the Servicemembers Civil Relief Act (SCRA)
California Divorce

What Military Families Should Know About the Servicemembers Civil Relief Act (SCRA)

Military service families endure complex challenges far different from those of civilians. Sudden and frequent separations and extended time away from home cause significant hardships. The federal government has passed legislation to help support military families when facing service-related civil issues, and one of the most vital laws is the Servicemembers Civil Relief Act (SCRA).

California Certified Family Law Specialist Judy Burger shares more about this important act and how it helps military families.

What is the SCRA?

The Servicemembers Civil Relief Act (SCRA) is a federal law protecting military members as they focus on their national duties. The act aims to ease the financial and legal burdens arising during active duty, ensuring that service personnel can commit fully to their responsibilities without worrying about certain civil obligations.

Among the vital and helpful provisions of the SCRA are:

  • The interest rate cap. Under this provision, active-duty service members are entitled to have the interest rate on any pre-existing loans or debts reduced to a maximum of 6% while on active duty. This applies to obligations incurred before entering military service.
  • Protection from eviction. This provides legal safeguards against eviction without a court order for military members and their families who rent a property that does not exceed a certain monthly rental amount. This protection helps ensure military families have a stable place to live during service commitments.
  • Lease terminations. The law allows service members to terminate residential or vehicle leases early if they receive orders for a permanent change of station (PCS) or deployment for 90 days or more. This flexibility enables military families to adapt to the demands of their service without being unduly burdened by lease commitments.
  • Deferred income taxes. If your ability to pay income tax is materially affected by military service, the Internal Revenue Service and state and local taxing authorities are required to defer your income taxes due before or during your military service. This deferral does not accrue interest or penalties.
  • Property repossession protection. Under the law, property cannot be repossessed or a contract terminated due to nonpayment or payment gaps before or during military service without a court order.

There are other protections relating to phone service, auto leases, life insurance, small businesses, and voting rights.

The SCRA and Family Law – Divorce Matters

Two of the most important SCRA provisions affect family law and divorce matters:

  1. Delayed Civil Court Proceedings: Certain contractual obligations, including bankruptcies, foreclosures, divorce, paternity, and child support proceedings, can be deferred or suspended for 90 days. Judges may also grant additional 90-day extensions when warranted. Criminal court matters are not covered in this provision.
  2. Default Judgement Protection: While you’re on active duty, if a civil action, civil proceeding, or administrative proceeding is filed against you, the judge is required to appoint a lawyer to represent you in your absence. The court must also grant a delay of at least 90 days if it believes there may be a defense to the action that cannot be presented without your attendance.

Family Law Attorney Judy Burger wants military families to be aware of their rights under the SCRA and can help them assert these rights when facing family law matters like divorce, child custody, and child support hearings. She is an experienced and compassionate California lawyer accustomed to helping military members and their families navigate family law matters more effectively during active duty.

CA Family Law Advocate for Military Families

The Servicemembers Civil Relief Act is a vital resource for military families, providing essential protections that contribute to the well-being and stability of those who serve in the armed forces. If you are serving in the military in California and require family law assistance, contact The Law Offices of Judy L. Burger. We have eight locations throughout The Golden State for your convenience.

 

Can I Get Spousal Support During a Legal Separation?
Legal Separation, Spousal Support

Can I Get Spousal Support During a Legal Separation?

Legal separation may be a good option for couples who are unsure about getting a divorce. However, it’s important to know that legal separation can come with significant financial responsibilities, including potential spousal support. If you need help understanding whether you have to pay or may need spousal support during a separation, Certified CA Family Law Specialist Judy L. Burger can help. She can share the information you need to make the best decision for your specific situation.

What is a Legal Separation?

A legal separation is a legal arrangement where a married couple lives apart while remaining legally married. This separation agreement addresses issues such as spousal support, child custody, visitation, and division of assets and debts. Legal separation can be a suitable option for couples who are uncertain about whether they want to pursue a divorce or for religious or financial reasons. It enables couples to live separately and manage their individual affairs while addressing practical matters similar to those in a divorce.

What Is Spousal Support?

Spousal support, also known as alimony, refers to the financial assistance provided by one spouse to the other during or after a divorce or separation. It is designed to help the recipient spouse maintain a standard of living similar to that enjoyed during the marriage.

Legal Separation and Alimony in CA

The amount of spousal support and the duration for which it is paid can vary widely depending on factors such as the length of the marriage, each spouse’s financial situation, earning capacity, and contributions to the marriage, among others. Spousal support can be awarded on a temporary or permanent basis, and it is an important aspect of many divorce proceedings.

There are two types of spousal support in California: temporary spousal support and permanent spousal support.

  1. Temporary support is alimony that is paid while a case is still pending and before a final order or agreement has been reached.
  2. Permanent spousal support refers to the support order determined at the end of the case. Despite the name, it does not imply an endless support agreement.

Legally separated spouses handle their finances similarly as they would in a divorce, except they cannot sell shared assets. One party often lacks the independent income to adequately support themselves. The court determines each party’s earning capacity and many other factors to determine the support agreement warranted. If there is a significant difference in income or potential earnings, the higher earner may be required to provide support.

These considerations are highly specific to each situation, so you need an experienced CA Family Law Attorney like Judy Burger to help you prepare for a support determination. She can work with you to formulate an equitable and fair support agreement that covers all the relevant factors of the case.

California’s 10-Year Rule and Alimony

In California, a marriage that lasts for ten years or more is considered “long duration,” giving the court indefinite jurisdiction over spousal support in cases of divorce or legal separation. However, according to Family Code 4336, periods of separation during the marriage may also be considered in determining the length of the marriage. This means that if a couple legally separates before the ten-year mark, it may impact whether their marriage is classified as long duration in the event of a future divorce. It can also impact how spousal support is determined during a legal separation proceeding a divorce.

Working with a Certified CA Family Law Specialist like Judy Burger is obviously in your best interests when considering a legal separation and possible spousal support issues. Whether you may need alimony or be more likely to pay spousal support in the event of a separation, you need to know your options and how to prepare. Schedule a consultation with The Law Offices of Judy L. Burger in California to get advice and guidance for your future.

 

How Are Trusts Handled in a Divorce Property Division?
California Divorce, Mediation, Property Division, Property Division

How Are Trusts Handled in a Divorce Property Division?

Divorces routinely involve property division questions. Some may be simple and straightforward, but determining marital and separate assets is often complicated. One common question is how trusts are handled in a divorce property division. Certified Family Law Specialist Judy L. Burger explains more about trusts and property divisions in California.

What Is a Trust?

“A trust is a legal entity with separate and distinct rights, similar to a person or corporation. In a trust, a party known as a trustor gives another party, the trustee, the right to hold title to and manage property or assets for the benefit of a third party, the beneficiary.”

A trust is a useful tool for managing and distributing a person’s finances both while they are alive and after their passing. It can help an estate avoid taxes and the probate process, protect assets from creditors and specify how inheritance should be handled for beneficiaries.

Married couples may establish one or more trusts for various reasons:

  • Tax planning
  • Medicaid planning
  • Retirement or inheritance planning
  • Providing for a special needs child or family member
  • Charitable giving
  • Securing business assets

Different types of trust have varying rules that govern how they are used, protected, and divided in a divorce property division.

Trusts and Property Division

Under California law, trusts are separate property of the named beneficiary spouse. Trust assets are then not considered “community property” and, therefore, are not subject to equitable distribution. Moreover, any income and principal paid from a separate property trust to a beneficiary spouse remains their separate property as long as it is not comingled with marital funds.

For example, a trust that is funded by a third party or source (not the beneficiary) through a gift or bequest and is governed by a separate trustee is the sole property of the beneficiary and not considered community property.

  • A trust created with assets before the marriage
  • A trust given to one spouse by a gift or inheritance

Irrevocable trusts are also better protected during a divorce property division. The beneficiary spouse is not in control of the assets, and they are not considered community property.

Depending on the type of trust, other special circumstances may apply. It is best to discuss your situation with a seasoned California Property Division Attorney like Judy Burger to ensure you fully understand your rights and options.

When Is a Trust Considered Community Property?

When trust funds are placed into a joint account, used to purchase a marital asset, or used for regular marital expenses, these funds are no longer considered separate property and become community property.

An exception exists if separate property contributions are used for a down payment on or for improvements to an asset; they will retain their separate property status as long as documents trace that contribution. Any funds remaining in the trust or a separate account will continue to be considered the separate property of the beneficiary spouse.

California Property Division Attorney

The rules governing California property divisions and trusts are complex, so you need an experienced CA Property Division Attorney to help you understand them and how they apply to you. Certified CA Family Law Specialist Judy Burger can examine the assets in trusts and determine how they fit into a divorce property division. Her role is critical to ensure an equitable legal division and protect your assets and rights.

If you are considering a divorce in California and have assets in a trust, contact The Law Office of Judy L. Burger as soon as possible. We have eight convenient offices throughout the Golden State to give you the personal attention you deserve. 

Is My Retirement at Risk in a CA Divorce Property Division?
California Divorce, Property Division

Is My Retirement at Risk in a CA Divorce Property Division?

People are living and enjoying the fruits of their labor longer than ever before. Planning and investing for retirement are some of the wisest decisions married couples can make. But what happens to your retirement assets in the event of a divorce? Handling retirement funds in a divorce is complex, and without the right help, you could make serious mistakes and lose most of your assets. CA Certified Family Law Specialist Judy L. Burger shares what you need to understand about retirement and a divorce property division.

Sharing Pensions and Retirement Plans

All kinds of pensions and retirement plans exist. They all share a common factor: a person and/or an employer pays into the account, which accumulates with interest over time to provide a living after retiring from active employment. Your spouse may also pay into the same pension or retirement plan, or have one of their own.

Some of the most common plans in California include:

  • Employee benefit plans
  • Defined Benefit Plans
  • Defined Contributions Plans
  • 401(k)s
  • CalPERS
  • LACERA
  • LACERS
  • CA State Teachers’ Retirement System
  • LA City Employees’ Retirement System
  • Federal Employees’ Retirement System
  • Military pensions
  • 457 plans
  • 403b plans
  • 401a plans

Retirement and Community Property

California is a community property state, meaning any assets or debts obtained from the date of marriage to the date of separation, except for gifts or inheritances to the individual, are considered to be community property and are divided equally between the parties in a divorce. 

This means that any retirement accounts that received marital funds are considered community property and are subject to the 50/50 asset division. Even if only one spouse contributed to the pension or retirement plan, depending on when the payments were made, both spouses may have a right to the money in the plan.

California law may allow interest earned on pre-marital contributions to be considered separate property and not subject to division with the other spouse. Therefore, you may be able to claim a retirement account opened before your marriage as separate property.

Protecting Your Rights and Assets

Dividing a pension or retirement plan between spouses in a divorce property division requires a special order called a Qualified Domestic Relations Order (QDRO) or a Domestic Relations Order (DRO). QDROs are utilized for private retirement plans, while DROs are used for state and federal public retirement plans. This legal order specifies how much each spouse receives. Unless there are separate agreements that apply, the funds qualify as community property and will be divided equally.

A QDRO/DRO takes time to prepare, file, receive a court signature, and be served on the retirement account holder. Before this order becomes binding, a spouse participating in the plan could withdraw some or all of the funds without notifying the other spouse. You may be able to contest this action, but that will take time and money.

Also, without a QDRO/DRO in place before the divorce is granted, someone else may inherit the retirement or pension assets in the event of a death because you are no longer the rightful heir.

Get Seasoned Help for Your Divorce Property Division

The Law Offices of Judy L. Burger helps Californians negotiate the rocks and shoals of divorce and its many details. Among the most complex is dividing marital property—especially pensions and retirement accounts. Judy Burger is a Certified Family Law Specialist with notable experience in property divisions who can help you ensure a fair and equitable distribution of assets in your divorce.

Don’t risk everything you’ve worked for – contact us right away for guidance and representation in your California divorce. We have eight locations throughout North, Central, and Southern California to serve you.

 

Top 10 FAQs About California Military Divorce
California Divorce, Child Custody, Child Support, Property Division, Visitation

Top 10 FAQs About California Military Divorce

Serving in the armed forces can place an incredible strain on a marriage. In fact, the current divorce rate among military couples is around 4.8%, compared to about 2.5% in the general population. Military divorce is essentially the same as a civilian divorce, except some federal laws will apply. Certified Family Law Specialist Judy L. Burger shares the top ten frequently asked questions she often fields about California military divorce.

#1. Do I Need a Military Lawyer (JAG) for a Military Divorce?

While most military posts have legal assistance attorneys from the Judge Advocate General’s Corps available for advice, they do not handle divorces. You need a family law/divorce attorney in your state to handle your military divorce. To file for divorce in California, one of the spouses must be a California resident for at least six months and have lived in the filing county for at least three months.

#2. Will the Military Serve Divorce Papers to My Spouse?

The military services may help you locate your spouse, especially if they are on an overseas deployment, but they are not required to serve divorce papers for you. A California divorce lawyer can help you serve divorce papers.

#3. Can I Get a Default Judgement for a Military Divorce in California?

While default judgments in many civil law cases are permissible, the Servicemembers Civil Relief Act (SCRA) prevents this in military divorces. The court may permit up to a 90-day delay to allow active-duty service members to respond to a divorce petition.

#4. Does Child Custody Automatically Go to the Non-Military Spouse in a Military Divorce?

This is a popular misconception that is false. California courts do not discriminate against active-duty military parents when deciding child custody issues. The court will consider all relevant factors and decide according to the child’s best interests.

#5. Are Military Service Members Required to Pay Child Support?

A California family law court may order child support from either spouse, regardless of if they are military or not. However, a service member’s child support obligation cannot exceed 60% of their disposable income. Spousal and child support is taken seriously in the military, as is paying any debt. Service members who fail to meet their financial obligations may be subject to court martial or other disciplinary actions.

#6. How Is Property Divided in a Military Divorce?

California’s “community property” laws apply when dividing property in a military divorce. However, some federal provisions apply to benefits like military pensions. CA Family Law Attorney Judy Burger can explain more about military divorce property divisions in a confidential consultation.

#7. Can I Still Get Military Benefits After a Divorce?

Asset divisions in a military divorce are often governed by the “20/20/20 Rule.” In order to receive military benefits after divorcing a service member:

  • You must have been married for at least 20 years.
  • Your ex-spouse must have served in the military for at least 20 years.
  • Your 20 years of marriage must overlap with 20 years of your ex-spouse’s military service.

This only applies as long as you do not remarry. There are variations to this rule, so consult with a Military Divorce Lawyer like Judy Burger for the most up-to-date information.

#8. Will the Military Pay to Move a Spouse Back to the United States After a Divorce?

In the event of a divorce occurring overseas, the military may cover the moving expenses of the nonmilitary spouse. Typically, other moving expenses are subject to negotiation and are determined as part of the final divorce agreement.

#9: I’m Originally from Another State. Can I Get a Military Divorce in CA?

Yes. If you and your military spouse are stationed in California and you have established residency here for at least six months, you can file for a divorce in California.

#10. Where Do I Start a Military Divorce in California?

Contact The Law Offices of Judy L. Burger for more information about Military Divorce in California. We have eight offices throughout the state, and several are convenient to major military bases. Get the experienced help and guidance you need in a military divorce. Contact us today to schedule a confidential consultation near you.

Do You and Your Divorcing Spouse Own a Business?
California Divorce, Property Division, Property Division

Do You and Your Divorcing Spouse Own a Business?

Dividing assets in a California divorce can be challenging, especially when the spouses jointly own a business. What will happen to your business in the divorce? A variety of factors come into play with business valuations in a California divorce property division. Do you and your divorcing spouse own a business? California Family Law Attorney Judy L. Burger reviews some common challenges.

Jointly-Owned Businesses Are Community Property in California

In the state of California, the concept of community property applies in divorce or legal separation cases. This means that all assets and property acquired by the couple during the marriage are divided equally. Any property or debts obtained while the marriage is intact are considered community property, while separate property includes assets owned by one spouse before the marriage or gifts given only to one spouse.

Separate property is not subject to division in a divorce case, as the courts do not have the authority to distribute one party’s separate property to the other.

In divorce cases, a business owned jointly by the spouses is classified as an asset and is subject to division between the parties. Valuing the business can be difficult as each spouse may have different opinions about its worth, and some of these opinions may be challenging to quantify objectively. As a result, disputes and conflicts frequently arise in these situations.

Court Considerations When Dividing a Jointly-Owned Business in a Divorce

Courts weigh many factors when dividing a business. Attorney Judy L. Burger works with various real estate, business, and financial professionals to establish the best valuation of your business to facilitate a fair and equitable division of assets. However, there are many legal and intangible factors that come into play when seeking the most equitable division of a business and its assets. Here are some of the critical factors the court will weigh in its decision:

  • Did the business exist before the marriage?
  • Was your spouse formally added to the business’ ownership documentation?
  • What is the business’ legal structure (sole proprietorship, LLC, partnership, S-corporation, etc.)?
  • Is there a formal partnership agreement including the spouse?
  • Has the business been operated under a sole proprietorship, although both spouses worked in the business?
  • Are other partners involved besides the divorcing spouses?
  • What is the percentage owned by each partner?
  • How involved was each spouse in running the business?
  • What value does each spouse bring to the business?
  • Did one spouse borrow from family funds to buy something for the business?
  • Can one partner buy out the other(s)?
  • How will the remaining family assets and liabilities be divided?
  • How will each spouse earn a living outside of the business?

What If I Owned the Business Before the Marriage?

If you started your business before getting married and did add their name to business documents or legally make them a co-owner, the business may be considered separate property in a divorce. This could protect the business from being divided as community property.

However, you may still have to share the business’ appreciation that occurred during the marriage. During your marriage, the increase in value of the business and the income generated may be viewed as community property.

Also, your spouse’s contributions to the business during your marriage will be considered. This may involve actively working for the business or supporting the household while you focus on work.

Get Help with Business Valuations and Property Division in a CA Divorce

Determining the value of a business in a divorce case is a complex task that requires specialized skills and knowledge. Certified Family Law Specialist Judy Burger collaborates with seasoned valuation experts to guarantee an equitable and precise assessment of your business. She is dedicated to upholding fairness and protecting your rights throughout the divorce and property division process.

Contact The Law Offices of Judy L. Burger for more information and to schedule a consultation.

 

Common Legal Separation Myths
California Divorce, Legal Separation

Common Legal Separation Myths

Family law is complex, and misunderstandings abound. Perhaps nothing is more misunderstood than legal separation. Disagreements can arise and cause both parties to give each other some space; this is not, however, a legal separation. This and many other myths frequently cause confusion and serious mistakes.

Attorney Judy L. Burger is a Certified Family Law Specialist in California who can help you understand divorce, separation, and related issues more. She shares the truth about a few common legal separation myths so couples can make wiser decisions for their future.

Myth #1: Legal Separation Means Physical Separation

“We’re married but haven’t lived together for over two years; I guess you could say we’re separated.” We hear this often in our law offices, and it highlights the popular confusion over “separation.” Fortunately, the California legislature cleared up this ambiguity in 2017. Family Code 70 states the following:

(a) “Date of separation” means the date that a complete and final break in the marital relationship has occurred, as evidenced by both of the following:

  • The spouse has expressed to the other spouse his or her intent to end the marriage.
  • The conduct of the spouse is consistent with his or her intent to end the marriage.

(b) In determining the date of separation, the court shall take into consideration all relevant evidence.

(c) It is the intent of the Legislature in enacting this section to abrogate the decisions in In re Marriage of Davis (2015) 61 Cal.4th 846 and In re Marriage of Norviel (2002) 102 Cal.App.4th 1152.

According to this interpretation, a husband and wife may still live in the same home and be legally separated. A legal separation judgment divides assets and other agreements but does not dissolve the marriage. A physical separation simply means the husband and wife no longer reside together. It does not automatically become a “legal separation.”

Myth #2: I Can File for Legal Separation Independent of My Spouse

This myth is born of independence and alleges that a husband or wife may file for legal separation without the consent of the other. In most cases, this is false.

California Family Code Division 6: Nullity, Dissolution, and Legal Separation; Chapter 4: General Procedural Provisions; Section 2345 states, “The court may not render a judgment of the legal separation of the parties without the consent of both parties unless one party has not made a general appearance and the petition is one for legal separation.”

Essentially, this means that both spouses must agree to the court’s judgement of legal separation. In rare cases, a petitioner may ask for legal separation, but the other spouse never responds. The petitioner may then file for a default judgment of legal separation from the court.

Myth #3: Spouses Choose Legal Separation Because They Don’t Believe in Divorce

Legal separation or divorce are intensely personal choices that are made for numerous reasons. Some couples eschew divorce over moral or religious beliefs, but far more choose legal separation for other reasons. These can include:

  • Tax benefits
  • Insurance or retirement benefits
  • Military spouse benefits
  • Less emotional trauma for the family

Discuss with your CA Family Law Attorney whether divorce or legal separation is best for your circumstances.

Seasoned Help with Divorce and Legal Separation

California Certified Family Law Specialist Judy Burger has walked with many couples through legal separation or divorce. She can explain how each works and how the particulars apply to your unique situation, including custody arrangements, property divisions, and more. You have rights and options under the law. Contact The Law Offices of Judy L. Burger in California to get the facts and sound advice on how to proceed.