Initial Agreement on No-Court Divorce

The process begins with you and your spouse agreeing to try a no-court divorce and each hiring a divorce attorney for advice and assistance.  Then you, your spouse, and your lawyers meet to discuss all the options available. The goal is to design a strategy that will resolve matters peacefully and set a cooperative tone for any post-divorce interactions.  This is particularly helpful where children are involved. 

Agreeing on a strategy for handling the divorce may occur either before or immediately after a Petition for Dissolution is filed.  Once this is followed by the filing of temporary orders, responses, and case management stipulations, the no-court resolution process begins.

Negotiation

Your first option for handling the divorce issues is negotiation.  You and your spouse, with your respective attorneys, attempt to resolve issues through face-to-face meetings and the exchange of written offers and counter-offers.  This process will usually be accompanied by any asset or valuation appraisals needed – for example, of the family home, or of a business owned by one or both spouses.  Each spouse may need a CPA or tax attorney to plot the best financial strategy for property division and support.  The goal is always to reach a mutually acceptable agreement rather than to fight over the various matters in your divorce. 

Mediation

When the spouses are too emotional to resolve issues through negotiation, or when they can’t agree on one or more issues, mediation by a trained divorce mediator may be useful.  In one or more sessions, the mediator typically meets separately with each party and their attorney, and then holds a joint meeting with both parties and attorneys.  The mediator helps to diffuse emotions and bring the parties to the point where they can each make and accept concessions to resolve one or more issues.

Arbitration

Finally, if the parties are still at odds, they can agree to have a trained private arbitrator – typically, a retired family law judge or a family lawyer with years of experience – hold a hearing and make a decision for them.  Although this is not cheap, it is still far less expensive than a court proceeding. 

Finalizing the Divorce

When all of the issues are resolved, and any insurance and tax issues have been handled, the divorce is ready to be finalized.  Legal papers are filed, and the court issues an order dissolving the marriage.

Although the ending of a marriage is never a happy time, the no-court divorce can save money, preserve relationships, make it easier for the divorced parents to communicate comfortably on issues concerning their children, and allow the children a smoother transition into the new family situation.

Call San Diego Law Firm for either Traditional or No-Court Divorce

The experienced divorce lawyers of San Diego Law Firm can help you through either a traditional or no-court divorce, while protecting your rights to a fair resolution on issues of property division, child and spousal support, and child custody.  To set up an appointment, please call San Diego Law Firm today at (619) 794-0243.  We look forward to helping you.

One of the first steps should be for one or both parties to hire a valuation expert, who can determine the value of the business at the time the parties separated.  From that value will be subtracted the value of the business as of the date the parties were married, or the date the business began, whichever is later.  Since California is a community property state, each party will own 50% of this value, which represents the business appreciation during their marriage. (If the business becomes substantially more or less valuable during the divorce proceedings, a reappraisal will be needed.)

The business does not need to be split down the middle so that each party can receive 50% of its value. Both parties may want to continue running the business together, or one party may wish to keep running the business, while the other party’s interest in the business will likely end with the divorce settlement.  If the parties jointly managed the business while they were married but cannot agree on whether both or either of them will run the business after the divorce, it may be possible to craft a creative solution that involves hired managers or spinning off a portion of the existing business into a separate business.  And because each party is only entitled to 50% of the total value of the community property, the court may choose to award the entire business to one party, and give assets of equal value to the other.

During the divorce, the business will be classified as community property.  If one spouse or domestic partner is managing it, that spouse is required by law to act in the best interest of both themselves and the other party, and to fully disclose all of their business decisions and not conceal any debts or assets.

Call San Diego Law Firm to Protect Your Business and Financial Rights During a Divorce

The experienced divorce lawyers of San Diego Law Firm can provide sound legal guidance to protect the health of your California family-owned business in a divorce or domestic partnership dissolution, while also protecting your personal rights to receive your full share of community property assets.  To set up an appointment, please call San Diego Law Firm today at (619) 794-0243.  We look forward to helping you.

When a divorcing couple owns a house worth MORE than the mortgage, one of two things usually happen:

1. The house is sold, the mortgage is paid off, and the profits are divided; or

2. One spouse keeps the house, refinances the loan in his or her name only, divides any profit with the other spouse, and the spouse who moves out has no further responsibility for the mortgage or the property.

Neither of these options is feasible when the home is upside down.  Instead, one of four solutions is usually chosen:

1.  Allow one spouse to keep the house with an agreement that this spouse will refinance within a specified period of time. Keep in mind that both spouses are still responsible for the mortgage until the refinance is possible, and both spouses should remain on the title to the property.  Refinance will be possible only when the house regains enough value to make it worth more than the mortgage, and only if the spouse who keeps the house has good credit and a sufficient income to pay the mortgage once it is refinanced.

2.  Both spouses hire an attorney to negotiate with the mortgage lender to permit a short sale of the property – i.e., to let the house be sold for less than the mortgage balance, and to forgive the amount still owed on the mortgage.  This may be acceptable to the bank if it will still receive a substantial amount on the mortgage, and if it seems likely that the house may otherwise eventually fall into foreclosure due to the financial stresses of the divorce.

3.  The spouses create a partnership or limited liability company and transfer the house to it.  Both spouses keep paying on the mortgage.  The house is rented out, and the profits or losses are “passed through” to the spouses to be reported on their individual tax returns.  This only works if both spouses are able and willing to keep up on the mortgage payments.

4.  Move out of the home and let it go into foreclosure.  This will allow the couple to escape any responsibility to pay the post-foreclosure balance owed on a “purchase money mortgage” – a first mortgage used to buy the residence.  However, both spouses will still be legally responsible for any balance remaining on a second or third mortgage, or a refinanced mortgage, after the foreclosure sale.  Regardless, this approach is not generally recommended, because “walking away” from any mortgage will severely damage the credit scores of both spouses for many years after that.  If the couple has a large second or third mortgage on the house, Chapter 13 bankruptcy may be a better solution, because it will allow the court to “cram down” second and third mortgages so the total owed on them is no larger than the total value of the house minus the first mortgage.  With a Chapter 13 bankruptcy, good credit can be restored more quickly than it can after a “walk away” foreclosure.

Whatever course of action a divorcing couple decides on, there should always be a written agreement which the divorce court includes in a court order.  This can help protect the good credit of the spouse who keeps making their share of mortgage payments if the other spouse stops paying, because it will allow the paying spouse to have this information noted in their credit report.

Call San Diego Law Firm for Divorce Help with an Upside-Down House  

Our experienced San Diego divorce attorneys can guide you through every step of a divorce with an upside-down home.  We’ll work with you to come up with a strategy that best fits your needs and protects your interests and assets. Please call San Diego Law Firm at (619) 794-0243 to make an appointment.  We look forward to helping you.

Although the speed and convenience of mediation can lead someone to decide they can represent themselves without getting their own attorney, this is not always a good idea.  A mediator, even if licensed as an attorney, does not function as a “shared” divorce lawyer.  The mediator does not represent either spouse, or give either spouse legal advice.  The resulting agreement may not benefit both spouses equally.  A spouse who has hired a divorce attorney to advise them beforehand, or help them at the mediation, or review the final mediation agreement before it is signed, may have a distinct advantage in obtaining favorable divorce terms for themselves.

If you go through divorce mediation without a lawyer and then later have problems collecting alimony or child support, or obtaining valuable personal property that was supposed to be yours under the final agreement, you may find you no longer have the cooperation of your ex-spouse.  At that point, you will probably need a lawyer to assist you.  Unfortunately, though, the lawyer will be stuck with your divorce mediation agreement, including any legal pitfalls in the agreement that you were not aware of when you signed it.  If you instead have an experienced lawyer advising you throughout the mediation, and making sure the final terms are favorable to you, you are much more likely to end up with an agreement that protects your children, property, and future financial security. 

Divorce is a serious legal matter that can affect you for years, and an experienced divorce attorney is a worthy investment.  If you are considering a divorce or are in the process of divorce and need a good divorce lawyer, meet with one of the knowledgeable divorce attorneys at San Diego Law Firm, and let us protect your long-term interests.  We can represent you before or during a divorce mediation, or in any other type of divorce proceeding.  Please call San Diego Law Firm today at (619) 794-0243 to schedule an appointment.

As a sociologist recently explained, no marriage is conflict-free, and those conflicts may fall into one of four categories.  First are “one-time, solvable problems,” which are conflicts created by a particular situation, not a clash of personalities.  Second are “cyclical conflicts,” which are ongoing, but alternate between being a big problem at some times, a small problem at others.  Third are “deal-breakers” – the sort of conflicts that cannot be solved by agreement, because they arise from a fundamental difference in personality or belief.  Lastly, there are “wounding problems.”  These conflicts arise over and over – like cyclical problems – but they tend to produce feelings of hurt and frustration, and can be very difficult to resolve. 

Unfortunately, conflicts do not evaporate once a couple decides to end their marriage.  Instead, they often contribute to making a divorce contentious.  For this reason, if you are getting divorced, it’s helpful to have an attorney who can buffer conflict for you and help reduce the amount of stress and difficulty you experience during the divorce process.   The divorce attorneys at San Diego Law Firm are skilled at using use their negotiation and advocacy skills to help resolve all types of property, child custody, and support conflicts.  We are also experienced in using collaborative law or mediation to resolve divorce conflicts when appropriate.  You don’t have to go through a divorce on your own.  Please call (619) 794-0243 to set up an appointment with the experienced family law attorneys at San Diego Law Firm.

California is a community property state.  This means that property acquired during a marriage belongs equally to both spouses.  However, couples can modify their property rights by contractual agreement.  Prenuptial, or premarital, agreements allow couples to decide how property will be divided and/or spousal support paid should the marriage end.  These agreements must be carefully drafted and comply with specific requirements in order to be enforceable.

It is becoming increasingly common for unmarried couples who share a home and expenses to enter into co-habitation agreements.  These agreements govern how expenses will be shared during co-habitation and how property will be divided should the relationship end.  Co-habitation agreements are becoming more popular because many couples now wait until they are older to get married.  By that time, each person often has more assets to bring to the co-habitation arrangement.  Many couples prefer to make an agreement in advance in order to minimize disputes if the relationship ends.

If you are considering a prenuptial or co-habitation agreement, it is important to consult with an attorney who is experienced in drafting these kinds of agreements and who can make sure that your agreement complies fully with all legal requirements.  The attorneys at San Diego Law Firm understand the law regarding property shared by couples in all types of domestic relationships, and can prepare an agreement that is tailored to your specific situation.  Please call San Diego Law Firm at 619-794-0243 to schedule your consultation with an experienced family law attorney.

What happens if one spouse keeps the house?

Option 1: The Buyout

If one of you does keep the home, then you’ll have to buy the other spouse out.  To buy out your spouse’s share, you might even things out by making trade-offs.  Often, the spouse keeping the house will give up a share in other community property with equal value.  As with your other assets, getting an accurate appraisal of the property’s value is critical.

Option 2: Sell Later

You may both agree (or the court could decide) to let one spouse continue living in the home, but only for a set period of time.  For example, the court might let one spouse stay in the property while the kids are still minors and living in the home.  The court will often require that spouse to pay the mortgage and related expenses.  When the house is later sold, the proceeds will be divided.  If your ex-spouse continues living in the home, then as your divorce lawyer we’ll seek important protections for you.

Before going either route, remember that by keeping the family home, you need to be sure you’ll be able to pay for the house and expenses after the divorce.  It’s crucial for the spouse who’s not keeping the home to require the other spouse to refinance under his or her name only.

Should you both sell the home, instead?

For many, a better option is to sell the house and split the proceeds.  According to a CBS Moneywatch.com blog, this seems to be the route taken by Sandra Bullock, who’s recently filed for divorce and has already put the Southern California family home up for sale. 

When a divorcing couple has kids together, it’s common for the parent who will spend the most time with the kids to want to keep the house.  In any event, you shouldn’t automatically decide to try to hang on to the house.  It may not be your best option financially or strategically.  What’s more, you may be better off getting a fresh start in a new home that’s not tied down with old memories.

What if the house can’t be sold?

Sometimes, it’s not possible to sell the house.  It may be because of the real estate market, and/or because you don’t have any equity in the house.  This happens when the house is worth less than what’s owed on it due to the mortgage, secured lines of credit, and so on.  In these situations, we’ll coordinate with other professionals to find you the best options.  At times, this could involve bankruptcy.  

What if one spouse put their own money into the home?

In California, most property you obtain while you’re married is called “community property.”  Identifying what’s community and what’s separate can get tricky when community and separate assets are mixed.  For example, a common scenario involves a spouse who used pre-marriage savings as a down payment on the family home.  We’ll examine your situation, because if this can be proven, a spouse might be entitled to a reimbursement. 

Get skilled legal help in planning your divorce settlement

If you and your spouse can’t come to a fair agreement in writing about what to do with the home, or can’t agree on its value, then the court will decide.  The same is true of vacation homes, other real estate, and your other assets.  We’ll always promote your best interests when negotiating with your spouse or advocating for you in court, and make sure you’re well informed of your options.  Contact your San Diego Law Firm divorce attorney at (619) 794-0243.

For divorcing spouses who have kids, a Divorcesupport.com blog provides advice on how to best meet your children’s emotional needs during a divorce.  It cautions that you shouldn’t be the only one providing your kids with emotional support.  When family and friends aren’t enough, then look for counseling options.  You’re also encouraged to get emotional support for yourself, such as through a local support group, family, and friends.

Even if you don’t have children, there are many essential temporary court orders you can ask for while a divorce is pending.  The long divorce process can give spouses a window of opportunity to do a lot of damage to your finances, assets, and family concerns.  You can either try to deal with the results of a spouse’s harmful actions after the fact, or you can get temporary court orders to help prevent the harm from happening in the first place.  The automatic restraining orders explained in Part One usually can’t meet all of your worries.  Fortunately, we can request additional protections for you in court. 

As you know, a divorce brings about many changes to your day-to-day life.  We’ll seek temporary orders on your behalf to deal with these changes. 

Family-related orders

     ●  If you have minor children with your spouse, you don’t have to wait for the divorce to become final to obtain temporary child custody, visitation, and support orders. 

     ●  A temporary order can also give one spouse exclusive use of property (like the family home or car) while the divorce is pending. 

Financial security-related orders

     ●  You may need to request attorney’s fees during the divorce.

     ●  It may be appropriate to ask for temporary spousal support (or “alimony”) for the lower income spouse.

Businesses and investment-related orders

     ●  When spouses own or partially own a business, a spouse’s wrongful actions can damage your business interests.  A restraining order can help prevent dishonest deals between your spouse and another business partner. 

     ●  Also prevent business assets from being wasted and misused. 

Threats to your personal safety, or your children’s safety

     ●  If there is domestic violence or you are threatened with domestic violence, you can ask for protection through a restraining order that prohibits your spouse from contacting you or coming within a certain distance from you. 

As you can see, your request for a temporary order can cover almost any issue, and violation of these orders can result in serious consequences.  These orders are not automatically granted, but you can get our help early on so we can prepare your requests during the divorce.  This can go a long way in reducing the risk of harm to you, your family, and your financial interests.  If you disagree with an inappropriate request, then contact us right away to oppose it. 

Many problems can be avoided with temporary court orders, minimizing stress and expense for you down the road.  Speak with our divorce attorneys about how we can help you meet your goals and get through the divorce process.  Call San Diego Law Firm at (619) 794-0243.

As part of Brazil’s online divorce, you’d be able to divide assets.  While this seems like it should be simple enough, many of the most difficult issues in a divorce come up when figuring out who gets what.  For example, under California law, do you know what happens if one spouse started a business before getting married (making it separate property), and continued working in the business during the marriage?  As a general rule, separate property stays with the spouse it belongs to and isn’t divided when divorcing.  So does the other spouse have an interest in the business?  Well, assuming there was never an agreement to change the ownership of the business, the business is generally still that spouse’s separate property…but that’s not the end of the story.  If the business has grown during the marriage, part of that increased value is often shared by both spouses.  This is because under California’s community property system, once you’re married, each spouse’s labor is considered a community effort.  After all, had that spouse not spent the community’s time improving his or her own business, and instead had earned a salary by working for someone else, then that salary would have been community property. 

Once it’s determined that at least part of the business is community property, then you have to figure out what the business’s value is, and how much the community is owed.  Depending on the circumstances, it may be that the business earned well over what’s considered to be a fair return on the investment, and so any earnings beyond a “fair return” could be considered a community asset to be divided upon divorce.  While at other times, a better approach may be to set a reasonable value on the services of the spouse who worked in the business, and this salary would be the community’s interest in the business.  The community may have already received part of this value during the marriage, such as when the money earned is used to pay family expenses.  Those payments would be deducted from the salary, and whatever amount remains would be divided at divorce.

Every divorce is different, and many more factors need to be evaluated to fully determine a business’s value.  We’ll assess these factors to determine how to fairly value and divide a business and other marital property.  Valuation methods vary, and we’ll always work to protect your interests as assets are divided.  It may be true that at first glance, a do-it-yourself divorce is tempting for obvious reasons, e.g. speed and cost.  But even when couples are on good terms with each other, tough questions come up.  You need to know your rights under California law to help ensure you get a fair divorce, and you must fully understand what you’re agreeing to.  Otherwise, you may wind up having to deal with dreaded surprises later on if mistakes were unknowingly made during the divorce.  Instead, consider cost-effective alternatives such as collaborative divorce and mediation.  We’ll discuss your options with you and help you get through the complex property division and divorce process.  Reach San Diego Law Firm’s experienced divorce attorneys at (619) 794-0243.

If your child or spousal support is past due, you can also garnish wages to collect the support payments and the accrued interest.  The government can also enforce child support orders through methods such as property liens; by refusing to issue or renew a passport; by collecting funds from bank accounts or tax refunds; or by suspending or withholding driver’s, business, professional, and sporting licenses.  For ex-spouses or parents who are unable to pay under the current support order, don’t wait to face contempt charges and have a judge ask why you flatly ignored the order instead of trying to modify the payments.  If you need to change a family court order, act quickly because you may be able to seek modification so that you don’t end up in violation of the order.  Also remember that child and spousal support orders are not the only orders that can be punished by contempt; for instance, others include custody and visitation arrangements and property division orders. 

The court’s contempt power is an important tool when a person intentionally violates a court order, but there are often other methods that should be tried first.  We’ll advise you on the appropriate court action to seek compliance, and when needed, assess whether the legal requirements for contempt are met in your case, or help in defending against an unwarranted contempt charge.  Contempt cases must be brought within a certain period of time set by California law (the statute of limitations), which varies depending on the type of order that has been violated.  Take the steps needed to help ensure that you and your family’s interests are protected by contacting San Diego Law Firm to speak with our family law attorneys at (619) 794-0243.