Divorce: Luxuries as Liabilities

Luxuries are anything that is not necessary to one’s daily living. Accordingly, any debt that is incurred for merchandise or services that are not essential to your daily living may be up for discussion during a marital estate evaluation. You should note, though, that the timing of the purchase of these items will be specifically at issue.

If the debt was incurred prior to your separation, it will be assumed that both parties approved the debt and, accordingly, the debt will be included in the marital estate. However, if the debt was incurred after your separation, it will be assumed that there was no mutual agreement to incur the debt; thus, these particular debts will not be included in the marital estate. A skilled Los Angeles family law attorney can discuss further with you the likely status of the various items in your possession.

That said, local laws may actually contradict economic principles. For instance, one jurisdiction can mandate a specific date of valuation that provides that any debt that was incurred prior to this set date is considered to be part of the marital estate and any debts incurred thereafter are not.

Then again, some jurisdictions may have a default valuation date (typically the date of the divorce), and that date is hardly ever changed. This means that anything that happens to a couple’s finances prior to the divorce is considered to be marital. Jurisdictions can differ greatly on the applicability of the principles, even within the same state from county to county. If you need a Los Angeles family law attorney, please don’t hesitate to call for a free consultation.

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Divorce: Stock Options

A stock option is an offer of stock, at a specific price and for a specific amount of time, that is made to current employees of particular companies. In divorces, the valuation of stock options can prove to be quite challenging. For instance, a company may tell its workers that they can purchase up to 100 shares of company stock for $100 per share, for a period of one year from the date of the offer.

If the current market share price of the stock is $85 per share, the employee would be foolish to participate, because the shares are less expensive on the open market. On the other hand, if the market share price of the stock is at $125 per share, then accepting the offer would be a real benefit, and the stock option has value. It may be wise to seek the services of a learned Los Angeles family law attorney to assist you with the handling of your stock options for purposes of your divorce.

Stock option values can be affected by many factors, including when the options were received or exercised. Additionally, formulas have been created for the valuation of stock options in certain jurisdictions via case law. Thus, it may be advantageous to seek the advice of an expert with regard to the valuations of stock options in those situations where the amounts are debatable.

If you believe that you need a skilled Los Angeles family law attorney, please call the DA&D Law Firm at (800) 257-6666 for a free consultation.

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Maintaining Contact with Your Children after Divorce

Divorce can take an emotional toll on both the parents and the children. How parents behave during the time of divorce can greatly influence the way in which children adjust to the change on an emotional level. However, there is a course of action that parents can take so that their children are able to sustain meaningful contact with both parents.

If you and your spouse are having problems reaching an agreement with regard to the children, please note that there are a variety of professionals who can assist you in developing a method of working together for the sake of the children. You may also find it beneficial to reach out to a skilled Los Angeles collaborative divorce attorney in this regard, as he or she may have information that can help you resolve whatever issues you may have.

One of the most important things that parents should remember is to always put their children’s wellbeing first. It is crucial that you both make every effort to see that their emotional needs are being met and that they have a chance to grow up as normally as possible, despite the circumstances.

Additionally, any contact that you set up with the children should be a pleasant experience for both you and the children so that a positive relationship can be maintained. Try to plan a variety of things to do while the children are spending time with you, such as shopping, outdoor recreational activities, and even certain chores, so that there can be a sense of normality for the children. Frequent and continuous contact with both parents is important for your children’s future development.

If you would like to contact a Los Angeles collaborative divorce attorney, call DA&D Law Offices at (800) 257-6666 for a free consultation.

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The Disposition of the Marital Home

Although it may not seem like it, there is actually a rational progression in the disposition of marital homes. There are only three inquiries that need to be made with regard to the home. The first question is, “Does either person want the house?” The question that follows is, “Can either person actually afford the house?” And the last question is, “Can the parties come to an agreement on the home’s value?”

Once those questions have been answered in order, those answers can’t help but to lead to three possible solutions with respect to the house: (1) the house will be sold and all proceeds from that sale will be divided equally; (2) a value that is mutually agreed upon will be entered into the estate for proper division; or (3) the issue of the house simply will not be resolved by the parties, and accordingly, the decision will be left up to the trier of fact. A skillful Los Angeles family law attorney may be able to better assist you with resolving these issues.

In general, the overall process moves from the least costly way of disposing of the house to the most expensive. For example, a market analysis to determine the home’s value can usually be done for free or at a very small charge; however, choosing to get an appraisal done by a trained and licensed professional can cost hundreds or even thousands of dollars. Additionally, the process moves from the least to the most risky treatment of the marital home. Clearly, the resolution with the least risk would be to sell the home and divide the proceeds equally.  However, if the parties cannot reach a resolution on their own and they allow the matter to go to court, doing so will entail the highest risk. If you need a Los Angeles family law attorney, please call DA&D for a free consultation.

 

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What Model of Divorce is Right for Me?

Divorce is different today. Whereas once the only model involved an adversarial process (so called Traditional Divorce) today some divorcing couples in lower conflict cases are able to successfully resolve some or all of their issue through Mediation or the Collaborative Divorce process. Our firm represents clients in all of these methods.

It is important to realize that Mediation and Collaborative Divorce are wonderful approaches in the right case but that they are not a viable solution in many divorces. Also important is the realization that even Traditional Divorce can be low conflict depending upon the post separation relationship of the parties (and unfortunately sometimes their attorneys). Often times the Traditional Divorce (adversarial) model is absolutely required. This can be for a number of reasons such as:

1) A party is unwilling to be open, honest and forthcoming about financial issues in the marriage such as their income, assets and business valuations.

2) A party is angry and hurt and wants to punish their spouse. Their are never punitive damages in a California divorce. California is a no fault state. The court will not punish either spouse for issues related to their marriage.

3) Profound and deep concern about the raising of children or the fitness of the other party to be a custodial parent.

4) A party will be left in a worse or difficult financial position following their their divorce.

A threshold question which should be discussed with what ever firm you hire should be what model of divorce is right for me. Most sole practitioners and smaller firms have only one model of divorce they practice. Be careful that you are not shoehorned into a model that is not right for you.

Our firm practices every model of Dissolution of Marriage. Call and discuss your case with one of our professionals today.

Philip Micheal Daigneault

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Los Angeles Divorce Blog

Need help through your Divorce process or with other family law matters? Please check back to help4divorce.com frequently for helpful articles and legal resources.

If you have an questions about your legal matter, please call our firm today for help: 800-257-6666.

Thanks,
Daigneault, Abel & Daigneault

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