When there are a lot of assets, such as in high net worth marriages, that need to be decided on in divorce, it’s important to remember the tax repercussions that can follow those decisions. That couldn’t be truer than this tax season. As you prepare to pay taxes for 2018, you’ll want to make sure you have a complete understanding of how new laws will effect your tax filing.

Preparing for Tax Season with New Divorce Laws

When retirement accounts, large pieces of property, and alimony are at stake, divorce gets tricky. Making these decisions trickier for both lawyers and feuding couples, it’s the fact that big changes are in place this tax season.

A number of tax law changes were implemented at the end of 2017 but a big disruption won’t happen until Jan. 1, 2019. The biggest direct impact is on alimony. Alimony will no longer be a tax deduction for the person paying it, and it will no longer have to be claimed as income by the person receiving it.

At the beginning of 2018 it was predicted that this would cause a big rush on divorces, due to the fact that people would try to get the divorce in before the year changed. Turns out, that big rush hasn’t quite happened.

According to divorce attorney Malcolm Taub, of Davidoff Hutcher & Citron in New York, “It is a drastic change, but it seems like people are living with it.”

While the determination of the actual dollar value of alimony is relatively easy, the biggest sticking point is where the money for the settlement is coming from, and how well-prepared each side is for the long-term.

Divorce Over 50

When couples over 50 decide to divorce settlements can become increasingly complicated due to the fact that there are less “working years” left for either person.

For couples over 50, a lot of the traditional gender roles still exist – the husband is the breadwinner and the wife stayed at home to raise the children. While this is changing with the younger generations, this still applies to many older couples that are divorcing now.

Among high-net-worth clients, the two biggest assets are usually the house and the retirement accounts.

While a house is an obvious sentimental attachment, there are other big financial gains to be had by selling that family home. It’s not uncommon for divorce attorneys to recommend that the spouse who gets awarded the house sells it and puts the proceeds into an investment account for retirement.

Another often employed strategy is to “award” the house to one spouse while the other spouse gets what seems like an equivalent amount in an investment or retirement account. Taxes are then figured into the equation.

To consider are capital gains, IRAs and 401 (k) assets versus Roth assets, as well as the valuation of any private businesses. Even if you are not selling a business in the divorce, you will still need to have a valuation of it.

You’ll want to have proper legal order for any asset distributions, because the tax penalties could hit you hard on the flip side.

Claiming Alimony

Spouses receiving alimony used to be able to claim it as earned income. Under the new law, they are no longer able to claim it, and thus cannot contribute to accounts like IRAs and Roths. So if they have no other earned income, they have no way to grow their tax-advantaged retirement accounts.

This can be especially hard-hitting when the divorce settlement is not enough to get by on. Even harder hit, are those who are not old enough and thus do not yet qualify for Medicare and Social Security.

As if divorce isn’t hard enough emotionally, then you get hit with the financial side of divorce. Establishing your own credit, setting up your own independent accounts, closing joint accounts, etc… can be grueling, but unfortunately a very necessary part of starting your single life.

The Financial Side of Divorce

Before you’re able to move forward from your ex, you’ll need to take some steps to create your own financial footing. Below we outline some steps you’ll want to take.

Take Inventory

Divorce means a rebalancing of your budget, and it really is “your” budget and yours alone. While some expenses may disappear, others will become your sole responsibility. If you are not receiving alimony, you will no longer have the benefit of a secondary income to ease the debt.

How an Experienced Los Angeles Alimony Attorney Can Help

Divorce and spousal support cases in Los Angeles can be complicated, especially when emotions are running high and both parties are feeling exposed and financially vulnerable. Our attorneys at Divorce Lawyers Los Angeles often encourage divorced or divorcing couples to attempt to reach a workable and amicable alimony payment agreement on their own outside of court, as negotiation and settlement are almost always preferable to going to trial. However, we want what’s best for you and your family, and we will stand by your side every step of the way, whether you end up going to court or not. One thing to keep in mind if your case does go to trial is that the judge has a great deal of discretion when deciding on spousal support payments. This is why it is so important to have a thorough understanding of the factors the judge will consider when deciding how much alimony you will receive or pay. An experienced family law attorney can help you understand the complexities of your spousal support agreement, help you calculate alimony payments and prepare the forms required by the court, among other things.

Credit Reports

It’s also a good idea to look at your credit reports to see what your personal financial standing looks like. Creditors will use these reports to asses whether or not to give you a loan. Review these reports very carefully to ensure that there are no errors. This report will be able to give you an idea of what to expect as you try to establish new credit on your own.

Close Joint Accounts

Divorce doesn’t relieve you of any joint debts you and your ex incurred during the course of the marriage. Any joint accounts that you have with your spouse will still have your name on them, and thus will impact your credit score. That means a creditor can come after you if your spouse falls behind on a payment – even if you have a verbal agreement with your spouse.

Close all joint accounts as soon as possible and have everything that you are responsible for re-financed under your name. For joint credit cards, you should be able to transfer the balance to a new card so that you can close the joint card that the two of you shared.

Until all of your joint accounts have been closed, it’s crucial that you continue to make at least the minimum payment on all of those bills each month. You do not want any lapses of payment in your credit report. If your ex agrees to make the payments, follow up to ensure they did. A single late payment can drop your credit score by anywhere from 60 to 80 points, according to FICO data, assuming an initial credit score of 680. Though the effect on your credit will diminish over time as your more recent payment history takes precedence, that late payment can stay on your credit report for up to seven years.

Establish Your Own Credit

If you already had an established credit history before you got married, or if you were a joint account holder on your spouse’s accounts, you probably won’t have any trouble obtaining credit in your own name, provided your previous credit history was good. If this is not the case, you might need a few months to establish yourself as a responsible payer in the eyes of creditors.

You can do this by opening a credit card and using it responsibly.

You can also sign up for a secured credit card. These require a security deposit, but your on-time payments are reported to the credit bureaus every month, so consistently paying on time will raise your credit score as if you were using an ordinary card.

Side Note: Changing Your Name

If you’re thinking about changing your name back, do this before you open any new credit accounts so that they will be listed in your new legal name. Additionally, you should get in contact with the institutions where you have existing financial accounts and notify them of the name change so they can update their records.

Working with Divorce Lawyers Los Angeles

 Our experienced Los Angeles divorce attorneys can assist with every aspect of the divorce process and will aggressively represent your case before a judge if it comes to that. Whatever the circumstances surrounding your case, we still stand by your side and ensure that your legal rights are protected throughout the process.

 For more information about California divorce law and the divorce process, contact Divorce Lawyers Los Angeles for a risk-free initial consultation. Our main goal as divorce attorneys is to help you evaluate your options under California law and make informed decisions that protect your interests and legal rights. Don’t wait to get help, call our Los Angeles legal team today at (213) 550-4600.

Divorce Lawyers Los Angeles

5455 Wilshire Blvd
21st Floor
Los Angeles, CA 90036

Phone: (213) 550-4600

Web: https://divorcelawyerslosangeles.com

While divorce is often times a mutual decision, there are incidents where both parties do not agree to separate. When parties are not in agreement when it comes to ending their divorce, it can make discussions regarding property division, custody, and support decisions almost impossible. When the divorce is being contested, legal separation might be an option to consider.

Other Options – Separation

A couple does not always need to go right to divorce.  Legal separation is an option for couples who are determining if they actually want to end their divorce.

California is a no-fault state, and both a legal separation and a divorce require the same declaration of “grounds for divorce.” The two options for “grounds” are irreconcilable differences or the incurable insanity of your spouse.

You must have lived in the state for six months before you file for divorce, but there is no such residency requirement for a legal separation. After filing for divorce, you must wait an additional six months before your divorce can be final, but there is no waiting period for a legal separation. Once you file for legal separation, it is in place.

As part of a legal separation, you’ll want to draft an agreement. This can be beneficial should you decide to go through with a divorce.

Included in a Legal Separation Agreement

A decree of legal separation addresses the same things a divorce decree does. This includes any alimony or child support and any issues of custody, visitation and property distribution. The terms of each are binding.

To note: a legal separation does not end your marriage. You will not be able to remarry.

Why Do Couples Choose Legal Separation?

Often times, drafting an agreement gives couples the opportunity to sit down and talk about all the issues they might be facing. A legal separation also allows for spouses to stay on the same health insurance. This can be very helpful for spouses that

Other Benefits with Legal Separation

Legal separation can be a great option for couples who no longer want to be married but, for personal reasons, divorce is not an option. In California, however, there may be one other advantage – you can hasten the divorce process by filing for a legal separation first.

Moving Forward with Divorce

If you decide to divorce after your separation, California law allows you to convert your legal separation to a divorce. This can be done after your separation is final or at any point during the legal process. Either spouse is able to file a request for the conversion. This will require additional paperwork.

Another way to move your divorce along without establishing residency for 6 months (which is required in California), you can file for legal separation immediately. The six-month waiting period for a final divorce decree begins as you work through the legal separation procedure. When it has expired, you are able to file to convert your matter to a divorce.

Even if you feel like your marriage can be saved, and you do not want to pursue divorce, it’s advised that you work with a family law attorney. You’ll want to take actions to protect your assets, credit, home, children, and future right to support settlements. If your spouse files, a temporary hearing can be held in as little as a few days.

Do not feel like calling an attorney is “giving up” on your marriage. At Divorce Lawyers Los Angeles, our lawyers are well-versed in a variety of family law-related matters and we can help you understand the legal, emotional and financial implications of your divorce and the various issues that go along with it. Our legal team strives to handle each and every case as if it was our own and we can help you navigate the complexities of the California legal system so you can achieve the maximum recovery in your Los Angeles divorce or family law case. We will do everything in our power to make you feel comfortable and informed as you navigate the divorce waters.

Family Law

Divorce has many aspects, all of which need to be ironed out. This type of litigation falls under the title of family law. Family law covers the following aspects of divorce:

Child Custody

Child custody is the legal and practical relationship between a parent and a child in the parent’s care, involving the duty to care for and support the child.

One of the most important considerations during divorce should be establishing parental custody and visitation rights. There are two main types of child custody under California law: legal and physical custody.

Legal custody (California Family Code § 3003) can be joint, in which both parents share the right and responsibility to make important decisions about their children’s health, welfare and education, or sole, in which one parent is granted the exclusive responsibility for making these decisions, though the other parent may still have visiting rights. It is the presumption of the court in most divorce proceedings that it is in the best interest of the child to have continuing contact with both parents. However, if the parents are unable to agree on a parenting plan, it is up to the court to decide how they will share time with their children. Parents with legal custody are responsible for making the major decisions or choices about their children’s schooling or child care, residence, religious activities, mental health needs, medical needs, travel and extracurricular activities.

Physical custody (California Family Code § 3004) can also be joint, which means the children live with both parents, or sole, which means the children live with one parent for most of the time and may schedule regular visits with the other parent. California law favors joint legal and physical custody when both parents can agree to it. If they don’t agree, the court will establish a parenting plan that is in the children’s best interests.

Determining child custody is a sensitive, stressful matter that can easily become a point of contention among couples who are unable to agree on a shared plan for co-parenting their children. Our family law attorneys at Divorce Lawyers Los Angeles have experience guiding divorce clients through productive child custody negotiations and can help you and the other parent create a workable, amicable custody agreement that meets the needs of the two of you and your children as well.

Alimony / Spousal Support

Alimony, also known as spousal support, is an individual’s legal obligation to provide financial support to a former spouse after divorce.  In most cases of divorce in Los Angeles, one spouse earns more than the other, and during the marriage, the couple shared household income, which means the spouse who earns less suffers a far greater loss when the marriage ends.

Spousal support, more commonly known as alimony, payments are ongoing, periodic payments made from one spouse to another under a legal separation or divorce order issued by the court. Spousal support is intended to help an economically disadvantaged (or lower-earning) spouse continue to enjoy a similar standard of living after he or she is divorced. In most cases in Los Angeles, the spouse who earns a higher income is ordered by the court to pay alimony to the other spouse, though whether you are entitled to alimony in California divorce proceedings depends on a number of factors, including: your earning capacity, the length of your marriage and any documented history of domestic violence between you and your spouse. There are two types of spousal support in California:

• Temporary spousal support – Set at your initial hearing and paid until a complete agreement is reached, or until a Final Order of Divorce is entered
• Permanent spousal support– Paid for an indefinite period of time in an amount that can be modified later, if and when the financial circumstances of either spouse change

To file for spousal support in Los Angeles, the party requesting the payment must ask the judge to make a spousal support order, and this order must be issued as part of either a divorce or legal separation, or as part of a domestic violence restraining order. You can either ask that the alimony be paid while the case is going on (temporary spousal support) or once the divorce or legal separation becomes final, as part of the court judgment (permanent spousal support). Under California law, spousal support payments are automatically terminated upon the death or remarriage of the supported party. In some cases, the spousal support agreements can be changed, if the spouse making the payments suffers a significant financial hardship, or if the spouse receiving the payments suddenly requires less support.

Child Support

Child support is an ongoing, periodic payment made by a parent for the financial support of a child following the end of a marriage. The regulation of child support is an important issue among divorced or divorcing parents in Los Angeles, and the amount of child support owed by one parent to the other depends on a number of factors, including:

• How much money the parents earn or can earn;
• How many children the parents have together;
• How much time each parent spends with the children;
• Health insurance expenses;
• The actual tax filing status of each parent;
• The support of children from other relationships;
• Mandatory retirement contributions;
• Mandatory union dues; and
• The cost of sharing daycare and uninsured healthcare costs.

Child custody, support and visitation arrangements are often the most hotly contested issues in divorce litigation and settlements in Los Angeles. With the cost of living in Los Angeles being so high, establishing the appropriate payment of child support from one parent to the other is one of the most important steps divorced or divorcing parents will have to take.

Property Division

The division of community property, or property acquired by the couple during their marriage, such as high assets, professional licenses, business ownership and other complex financial matters can be one of the most contentious issues to iron out during a divorce. In the state of California, complex property division involves the distribution of high-value marital assets, including retirement accounts, ownership rights to a business, professional practices and investment portfolios, among others, which can be a hotly contested issue for some couples.

California is a community property state, which means all property and assets (and debts) acquired by the couple during marriage is legally considered community property owned by both spouses equally and should therefore be divided equally in divorce. Some of the high-value assets at risk in high net worth divorces include:

• Pensions
• Stock options
• Corporate business assets
• Business valuations
• Inheritances
• Professional practices
• Investment portfolios
• Residential and commercial real estate
• 401(k)s, IRAs and other retirement accounts

Los Angeles divorces involving complex property division due to significant assets, professional licenses, business ownership and other complicated financial matters are often highly contentious and high profile, but they don’t have to end in a bitter legal battle.

Free Family Law Consultation in Los Angeles

Legal matters that fall under the umbrella of family law tend to be contentious and therefore require a great deal of experience, compassion, communication and attention to detail. Far too often, family law cases that could have been settled amicably end up bitter court battles because the parties involved attempted to handle the matter on their own without reputable legal help, or they hired an attorney with no experience in family law. At Divorce Lawyers Los Angeles, we understand how difficult and frustrating the legal process can be, especially when dealing with sensitive family law issues, and our attorneys are committed to helping you achieve a favorable outcome, whether it is through private negotiation, third-party mediation or at trial. For more information about family law cases, the divorce process and spousal or child support in California, or to schedule a free consultation with a knowledgeable family law attorney, contact Divorce Lawyers Los Angeles today at (213) 550-4600.

Divorce Lawyers Los Angeles

5455 Wilshire Blvd
21st Floor
Los Angeles, CA 90036

Phone: (213) 550-4600

Web: https://divorcelawyerslosangeles.com

Since divorcing last year, Channing Tatum and Jenna Dewan have not followed a “consistent or formal” co-parenting schedule or custody arrangement. Channing, in prioritizing his relationship with their daughter Everly, has hopes that having an official custody arrangement will help the five-year-old “thrive even more.”

An Unusual Celebrity Co-Parenting Schedule

According to court documents, Channing hopes to have a custody and co-parenting arrangement that is “equal, mutual and self-executing.”

Tatum also requested custody on Mondays and Tuesdays, while Jenna will be responsible for her care on Wednesday and Thursday. The parents will alternate visitation on the weekends and “equally divide and alternate” custody during the holidays.

The only holiday that the parents will try to spend together is Halloween, during which they “shall try to work together to try to spend Halloween together, trick or treating with Everly from 5:00 p.m. to 7:00 p.m.”

Despite the fact that visitation has seemingly been inconsistent, Channing says, “Since our separation and on the occasions that we have been together, Everly appears very happy and comfortable when she is with [Jenna] and me.”

He adds, “In my opinion and experience, Everly has appeared to adjust to our separation and living in two homes exceptionally well.”

Intentional About Co-Parenting

Divorce is hard on all fronts. If you’re going through divorce, have gone through divorce, or are about to file, you need to do things that will allow you to move on. These things very well might feel impossible on most days. Take each day at a time. Give yourself some grace. And take a look at our tips for keeping your head up.

Moving Forward After Divorce

Divorce will change your life in more ways than one. Regardless of how strong you are, divorce is challenging – in ways you never even expected. As you face a range of emotions – from anger to relief, to confusion and humiliation, depression, and fear, you need to remember one thing: you WILL get through this.

Some Tips to Help You Move On

• Focusing on what you don’t have and what you can’t do will drive you insane. Focus on what you have control over and let the rest pass on by.
• Forgive yourself.
• Find ways to treat yourself.
• Celebrate the victories.
• Don’t be afraid to ask for help. This can be so difficult. Learn to set your pride aside and ask for help when you need it.
• Journal and record your thoughts and feelings from day to day. When you’re able to look and read back where you were, you’re able to see what progress you’ve made.
• Go for walks.
• Don’t be afraid to consult a therapist.
• Learn patience.
• Focus on your children and their happiness.
• Be proactive in your moving forward process and do everything you can to stay on track. This means working out, eating well, getting enough sleep.
• Take yourself out on dates.
• Remind yourself of what really matters.
• Take up a new hobby – maybe there’s something you’ve always wanted to try but were never able to.
• Find a support group.
• Figure out a co-parenting schedule that works for you.
• Know that you will feel lonely sometimes. Find new and fun ways to deal with those feelings.
• Search for inspiration.
• Stay involved in the things that make you feel good.
• Find something new that makes you feel good.
• When you feel like you can’t go on any further, dig deep. You never know how strong you are until you hit that bottom.
• Remember that you are not alone.

Hiring an Attorney

Going through a divorce can be one of the most difficult, stressful and emotionally draining experiences in a person’s life, and hiring an attorney early in the process can help avoid the mistakes that inevitably occur when parties seeking divorce represent themselves in court. The legal system can be confusing for anyone without an extensive legal background and family law cases, in particular, can become complicated and messy when not dealt with properly. Our attorneys at Divorce Lawyers Los Angeles have the experience and resources necessary to handle high-asset divorces in L.A. and the surrounding areas, and the competence to resolve critical disputes, including those that involve marital property division and child custody and co-parenting arrangements. Whether your California divorce case requires aggressive negotiation, mediation or representation at trial, hiring a knowledgeable attorney to represent your case can help ease any concerns you may have about the outcome of your case and may even help resolve your case more quickly.

How to File for Divorce in California

California is a no-fault divorce state, which means that either party in a marriage has the right to file for divorce for no other reason than “irreconcilable differences,” and property settlements in CA divorce cases are not influenced by the behavior of either spouse, although child custody and visitation rights can be. Under California Family Code § 2320, in order for a judge to grant a divorce in California, one of the spouses must have been a resident of the state for six months, and in most cases, the individual seeking divorce must file in his or her county of residence, where he or she must have lived for at least three months. Once the divorce papers have been filed, California law dictates that the filing party must wait at least six months from the date the other spouse received the paperwork before the divorce can be finalized.

The Divorce Process

The steps you need to take to file your divorce will depend on the particulars of your situation and circumstances. A divorce where the parties have been married for a relatively short period of time, have no children, and little property or debts is typically less involved than a divorce where the parties have been married for a long period of time, where there are minor children, or where there is significant property or debt to divide.

The divorce process is also made simpler in cases where both parties want to and agree to divorce. In cases where one party wants a divorce and the other does not, the opposing party might choose to prolong the process as much as possible.

If both parties are able to agree to the terms of the divorce, the process will be smoother as opposed to one where both parties are constantly disagreeing and fighting over the terms.

Filing a petition

The first step in the divorce process is filing a petition. Even when both parties agree to divorce, one of them will need to file a petition that states the grounds for the divorce. The grounds for divorce vary depending on the jurisdiction. All jurisdictions allow for some type of no-fault grounds such as “irreconcilable differences”, but only a few states still consider fault grounds for divorce, such as adultery or abandonment. California is a no-fault state so the grounds will be “irreconcilable differences.”

Temporary Orders

Next, temporary orders will need to be put in place. These orders are for spousal and/or child support and custody. A temporary order is usually granted within a few days and remains in effect until a full court hearing.

Service of Process

The party that files the divorce also needs to file proof of service of process. This is a document that shows a copy of the divorce petition was given to the other party. If you are working with an attorney, he or she will be able to arrange this.

Response

The party who receives service of process then needs to file a response to the petition. The responding party may choose to assert a defense to the grounds. If there is disagreement as to property division, support, custody, or any other issue, this should be set out in the response.

Negotiation

If the parties don’t agree on all the issues such as child custody, co-parenting schedules, or spousal support, they will need to try to negotiate their differences. A court may schedule settlement conferences in an attempt to have the parties resolve their issues. If the parties disagree on child custody and visitation, the court may also choose to order mediation, evaluation of the children and parents by a social worker or other court employee and that a lawyer or guardian ad litem be appointed to represent the children. Other issues that may need to be negotiated are the property division and any spousal support.

Trial

Any issues the parties cannot resolve between themselves will be decided at a trial. However, going to trial takes longer, costs more money, and may have less predictable results.

Order of Dissolution

The order of dissolution ends the marriage and spells out how property and debts are to be divided, child custody, support and any other issues. When the parties negotiate their own resolution to all of the issues, they draft the order of dissolution and submit it to the court. If the order of dissolution complies with legal requirements and both parties entered into it knowingly and willingly, then a judge approves it. Otherwise the court will issue an Order of Dissolution at the end of the trial.

How an Experienced Divorce Lawyer Can Help

Not all divorce cases in California go to court. In some cases, couples can resolve their divorce disputes through negotiation or mediation, during which an attorney can make sure your best interests are being represented. Too often, couples filing for divorce believe they can handle the proceedings on their own and end up making a bigger mess of their situation than they started with. While we do encourage spouses filing for divorce to reach an agreement outside of court and try to avoid divorce litigation altogether, especially when children are involved, our experienced Los Angeles divorce attorneys can assist with every aspect of the divorce process and will aggressively represent your case before a judge if it comes to that. Whatever the circumstances surrounding your case, we still stand by your side and ensure that your legal rights are protected throughout the process.

Free Divorce Consultation in Los Angles

Divorce proceedings are not always simple and straightforward, especially when children are involved. In many cases, the consequences of a divorce can affect a person for the rest of his or her life, possibly resulting in a significant loss of financial support or reduced child visitation rights. A qualified divorce attorney however, can help you navigate the complex intricacies of family law and can negotiate the best settlement on your behalf. For more information about California divorce law and the divorce process, contact Divorce Lawyers Los Angeles for a risk-free initial consultation. Our main goal as divorce attorneys is to help you evaluate your options under California law and make informed decisions that protect your interests and legal rights. Don’t wait to get help, call our Los Angeles legal team today at (213) 550-4600.

Divorce Lawyers Los Angeles

5455 Wilshire Blvd
21st Floor
Los Angeles, CA 90036

Phone: (213) 550-4600

Web: https://divorcelawyerslosangeles.com