Erickson Family Law LLPCertified Family Law Specialists Handling Complex Family Law Issues2024-03-14T12:28:45Zhttps://www.ericksonfamilylawllp.com/feed/atom/WordPress/wp-content/uploads/sites/1602654/2021/06/cropped-icon-32x32.jpgOn Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=469252024-03-14T12:28:45Z2024-03-14T12:28:45ZUnderstanding marital and separate property
The key to dividing employee benefits lies in understanding the concept of marital and separate property. Marital property refers to assets and debts acquired during the marriage. Separate property, on the other hand, encompasses assets and debts acquired before the marriage or through inheritance.
Here’s how this applies to employee benefits:
Benefits earned during the marriage: These are generally considered marital property and subject to division.
Benefits earned before the marriage: These are considered separate property and not subject to division.
Benefits earned after separation: These are typically considered separate property as well.
It’s important to note that California follows community property laws, where all assets and debts acquired during the marriage are considered marital property regardless of who earned them.
Types of employee benefits affected by divorce
Retirement plans are among the most common types of employee benefits that divorce can impact. They include 401(k)s, IRAs and traditional pension plans. The portion of the benefit accrued during the marriage is typically divided between spouses. This may involve a Qualified Domestic Relations Order (QDRO) to facilitate direct payments from the plan to the former spouse.
The value of vested stock options earned during the marriage may also be divided. Unvested options are more complex and may require further negotiation. Furthermore, continuation of health insurance coverage under the former spouse’s plan may be an option, depending on the specific plan.
Negotiating and dividing benefits
There are two main ways to divide employee benefits during divorce. In the first option, the spouses can negotiate a mutually agreeable division of benefits. This is often the preferred approach as it can allow for more control and flexibility. However, if an agreement isn’t reached, it’s up to the court to decide how to divide the benefits based on the case’s specific circumstances.
Dividing employee benefits during divorce can be a complex process, but with proper knowledge and legal guidance, you can approach it with more confidence. An experienced legal team can help you understand your rights and work towards a fair and equitable outcome.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=469242024-02-14T22:14:41Z2024-02-14T22:14:41Zdivorce after decades of marriage involves navigating a complex web of financial arrangements, health considerations and changes in family dynamics. This process can be particularly daunting for those who have been out of the workforce or have significant assets and retirement plans intertwined with their spouse.
Financial implications
One of the most pressing concerns for individuals undergoing a grey divorce is the financial impact. Dividing assets accumulated over a lifetime, including retirement accounts, pensions and real estate, requires careful planning and negotiation. The financial repercussions are often more severe for older divorcees because they have less time to recover financially and rebuild their assets before retirement.
Emotional and social changes
The emotional and social ramifications of a grey divorce can be profound. Ending a long-term marriage can lead to feelings of loneliness, isolation and anxiety about the future. Rebuilding a social life and navigating the complexities of adult children's reactions to divorce are common challenges. For many, the prospect of forming new relationships or entering the dating scene can be daunting and invigorating.
Health and well-being considerations
The stress associated with grey divorce can have significant health implications for older individuals. The emotional strain of ending a long-term relationship, coupled with the challenges of adjusting to a new life stage, can impact their health
Access to healthcare is another concern, especially for those dependent on their spouse's health insurance. Navigating these health and well-being considerations is a critical part of the transition process, emphasizing the need for support and resources tailored to the needs of older divorcees.
Evaluating one’s options throughout the divorce process is critical. Legal assistance can help individuals navigate this process so they can determine how to move forward with various aspects of grey divorce.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=469192024-01-10T03:28:07Z2024-01-10T03:28:07ZEvery state follows its own rules when it comes to the division of marital assets when a couple divorces. California is what is known as a “community property” state, which means that (with a few exceptions) everything a couple acquires after their marriage begins is considered to be jointly owned and subject to a 50/50 split.
When a couple can’t agree on who gets to keep certain items that cannot be divided, those assets may have to be sold so that the proceeds can be split. That has occasionally inspired someone to sell everything from sports cars to valuable collections for a nominal sum – like $1 – just so they can enjoy the look on their spouse’s face when they hand them their share (50 cents).
This is called dissipation of assets, and it is not a good plan
When one spouse wastes or misuses marital assets, that’s called “dissipation,” and it can result in big trouble for the spouse who does it. Typically, allegations of dissipation come about after one spouse has squandered some of the marital funds after a divorce petition is filed on anything from expensive shopping trips to gambling or affairs. However, selling marital property for a nominal price can also be deemed dissipation, and the courts don’t take kindly to that kind of behavior. The family court can (and likely will) attempt to even things back out. That could mean giving your spouse a greater share of any assets that remain, giving you more of the marital debts (which also must be divided), requiring you to pay additional spousal support or simply requiring you to repay your spouse for their share of the items' fair market value.It’s normal and totally understandable if you’re frustrated and angry with your spouse. Don’t let your feelings lead you into doing something that you’ll later regret. It’s better to seek experienced legal guidance before you do anything with the marital property that could end up creating problems with your divorce.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=469162023-12-12T23:39:41Z2023-12-12T23:39:41ZOnly part of the compensation may be divisible
Deferred compensation arrangements can take many forms. It may serve as incentive pay to get the best performance possible out of certain workers. It can also be a form of retention bonus if someone stays at the company for a certain amount of time. Particularly if a divorce occurs part way through the period when a worker earns their deferred compensation, spouses may disagree about how much of the compensation should be part of the marital estate. Even if the employer will not pay that compensation until later, the amounts earned during the marriage could very well be subject to division during a divorce.
Valuing deferred compensation can be difficult
Sometimes, deferred compensation is purely financial. Workers will receive a set amount of money as a bonus for meeting certain performance metrics or staying with the company for a certain amount of time. Other times, the compensation may reflect someone's performance or even the company's success. For example, stock options could mean that someone is eligible for stock when a company has its IPO or after they meet certain standards. It is almost impossible to predict with that stock will be worth at the time of disbursement. Therefore, spouses may find themselves arguing intensely over what deferred compensation is worth.
It's hard to divide what someone does not yet possess
The final big challenge related to deferred compensation in a California divorce is the difficulty of finding a fair way to divide it. Usually, spouses will have to use other assets to offset the value of deferred compensation, as the spouse who has earned that compensation cannot actually access it yet.
Those who should receive deferred compensation based on their employment contract or divorcing someone eligible for deferred compensation might need to plan carefully to address stock options and other forms of deferred compensation in their divorce negotiations. Identifying property that will likely complicate a California divorce, and seeking legal guidance accordingly, can help people secure the best possible outcome.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=469152023-11-09T12:41:41Z2023-11-09T12:41:41ZLegal custody is also often split between the parents. Legal custody is what gives parents the authority to make decisions about medical, educational and religious matters. What happens if parents with shared custody arrangements do not agree about a major decision they must make for their children?
Sometimes, there are clear rules in place
Occasionally, one parent will have the foresight to request legal custody on certain particular issues. For example, if one parent is religious and the other is not, they may request the right to make decisions about what services the children attend.
Other times, the division of legal custody looks at when parents must make the decision. Either adult will typically have the authority to make emergency medical care decisions during their parenting time. However, when it comes to long-term care choices, like what therapist the children see, there is often an expectation that the adults will try to agree with one another.
If parents cannot reach an agreement despite discussing important decisions at length, it may sometimes be necessary to go back to court. A judge can review the conflict and help to resolve it. As with any other custody matter, the most important element will be what the judge believes is in the best interests of the child.
In some cases, judges may resolve a particular conflict. Other times, they may agree to modify a custody order to delegate decision-making authority on a particular matter to one parent to stave off the likelihood of future conflicts. Learning about the rules for sharing parental authority may help people pursue informed solutions for a conflict about an important decision related to their children.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=468142023-10-06T05:13:59Z2023-10-06T05:13:59Zvacations and holidays as co-parents is to plan ahead. The more you can organize ahead of time, the smoother things are likely to go. Consider these actionable tips and strategies as you formulate your approach.
Use a shared calendar for better coordination
Maintaining a shared digital calendar can be a game-changer. It's easier to identify conflicts or double bookings when you both have a bird's eye view of each other's time with the children. This also provides an opportunity for both parents to be involved in all aspects of the child’s life, including school activities and other events.
Focus on fair distribution over holiday periods
Holidays can often be a point of contention between co-parents. Given their emotional significance, everyone wants to celebrate with the kids. A fair distribution of holiday time, agreed upon in advance, can help mitigate conflicts. You might alternate significant holidays each year or split the day itself. Some co-parents opt to spend the holidays together as one unit. Making these plans in advance helps to ensure that everyone is on the same page.
Communicate openly but stick to the point
Effective communication can be hard, especially if there's tension between you and your co-parent. When discussing vacations and holidays, try to stick to the facts and keep emotions out of it as much as possible. Stick to emails or texts, if possible, and always keep the best interests of your children in mind.
Anticipate changes and have backup plans
No matter how well you plan, things can go awry. Flights get canceled, the weather turns bad or unforeseen circumstances can wrench your plans. A backup plan and a flexible mindset will help you adapt to these challenges.
Always let the children know what to expect. This might be a bit easier if you have the standards for vacations and holidays spelled out clearly in your parenting plan. Seeking legal guidance can help you to achieve your aims while safeguarding your rights and facilitating your child’s best interests simultaneously.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=468112023-08-31T17:09:56Z2023-08-31T17:09:56ZMind your online presence
Anything you share online has the potential for lasting consequences, even if it just inflames your spouse’s anger or bruises their ego enough to make the fighting worse. Ideally, you should probably take a total break from social media. At a minimum, refrain from venting about your divorce (or even “vaguebooking”) or your spouse online.
Set boundaries early
Do not say anything disparaging about your spouse, even if they’re disparaging you – and don’t tell everyone your divorce troubles, no matter how cathartic it may seem. You can set boundaries with other people by practicing neutral responses that don’t give away any details (or your real feelings). For example, if you’ve just been told your spouse is saying horrible things about you, something like, “It’s a difficult time for everybody right now,” will keep you from engaging and convey the idea that you aren’t interested in airing the dirty laundry.
Keep communication professional
Before you hit “send” on any email, text or instant message, consider how that would sound if it were read back in court or posted out-of-context online – because that’s exactly what could happen. Don’t be your own worst enemy by manufacturing material that can make you look like a terrible person: Keep all your written communications to your spouse succinct and professional.
Consider asking for a private judge
Your spouse may eventually realize that damage to your reputation may ultimately bleed over into your professional life – and that can have a negative effect on your ability to pay support or your net worth and the property division process. If your spouse is inclined to listen to reason on that front (or has secrets of their own they’d prefer to keep), you may be able to hire a private judge. That can help you avoid a public court battle and further protect your reputation from harm.
Even a difficult divorce doesn’t have to become a public spectacle. Exploring all of your options can make it easier to manage.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=468092023-08-06T22:22:54Z2023-08-06T22:22:54Zsome important tips that may prove helpful.
Focus on respect
You don’t have to like your ex, but they are your child’s other parent. It is important to be respectful of one another. When possible, you and your ex should present a united front. This doesn’t mean you have to do everything the same way, but you should avoid things like insulting or bad-mouthing your ex around the kids for the kids’ mental and emotional well-being.
Let the past go to the extent that you’re able
Many people encounter future conflicts because they haven’t moved on from the past. In a situation like this, it’s best to focus on your children and your future. This can help you put the contentious divorce behind you and work toward these goals, rather than dwelling on things that have already happened and cannot be changed. Be gentle with yourself but also keep your eyes trained forward when you can.
Work on communication skills
Additionally, it’s important for co-parents to be able to communicate. One key thing to do may be to decide on a single communication method that is easiest. For example, a couple that tends to get into disagreements when talking face-to-face may have better success with email or text.
Make a plan in advance
Even if your past was contentious, co-parenting is going to go better when you and your ex have a plan in place for the future. What rules will you have for the children? When will they live with you and when will they live with your ex? What parenting styles are you going to use?
The more you plan in advance, the easier it can be to address these questions when they come up. That’s just one reason why it’s critical to understand all of your legal options while going through the divorce process and to seek legal guidance whenever necessary.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=468082023-07-10T17:50:33Z2023-07-10T17:50:33ZHow divorce can impact retirement accounts
Retirement accounts such as 401(k)s, IRAs and pensions are also subject to division during divorce. Like other assets, the portion of these accounts acquired during the marriage is generally considered community property. It’s important to note that retirement savings accumulated before the marriage may still be subject to division if commingled with community funds.
A court typically issues a Qualified Domestic Relations Order (QDRO) to divide retirement accounts. A QDRO is a legal document that outlines how retirement benefits should be divided between divorcing spouses. It helps to ensure that the division scheme complies with retirement account rules and regulations. A QDRO allows for direct transferring or allocation of a portion of one spouse’s retirement account to another without incurring early withdrawal penalties or tax consequences.
A divorce can have a significant impact on investment and retirement accounts. Understanding community property laws, evaluating marital and separate property and considering the equitable division of assets are crucial aspects of this process.]]>On Behalf of Erickson Family Law LLPhttps://www.ericksonfamilylawllp.com/?p=468072023-06-12T13:21:01Z2023-06-12T13:21:01ZQualified Domestic Relations Order (QDRO). This resource helps to divide the retirement-related assets that a married couple owns as they end their marriage.
One thing to remember about a QDRO is that it can be put in place during a divorce, even if the assets are not going to be accessed by the other person until after the divorce, like a pension plan.
How it works
With a pension plan, someone is earning that plan for the entire time that they are employed. They don’t get paid until they retire, when they get a monthly check to pay them their pension. But they are already earning it through their employment, as it is one of the main benefits that they receive in exchange for their efforts. What this means is that the portion of the pension earned during the marriage is a marital asset.
For instance, say that someone worked for a company for 10 years and then got married. They continued working there for 10 more years and got divorced. Finally, they put in another 10 years before they retired. Only 10 out of the 30 years would qualify to be divided via a QDRO, as the pension being earned was only a marital asset for 10 years total. This means that 1/3 of the value of the pension plan could potentially be divided between the married couple, at least in most cases.
You can imagine how these types of benefits are often overlooked during a complicated divorce. It’s very important for couples to know about all of their legal options. Seeking legal guidance proactively is usually a very good place to start.]]>