Alimony, also known as Spousal Support in California, is GENERALLY deductible to the payor and taxable income to the payee. I highlighted the word generally because the mere use of the term Alimony or Spousal Support in a settlement agreement does not affect the tax consequences of payments. Internal Revenue Code Section 71 contains eight requirements that must […]
Bifurcation refers to splitting of a main body into two parts or division into two branches. In a legal context it refers to the division of a trial or legal proceeding into two parts. California Family Code Section 2337 (a) states “In a proceeding for dissolution of marriage, the court, upon noticed motion, may sever and grant […]
It is common for a divorce decree or Marital Settlement Agreement to require a providing spouse maintain a life insurance policy on his/her life during the period spousal and child support payments are being made. This is called Life Insurance as Security for Support. Spousal Support terminates at the death of either party. Life Insurance can protect the […]
A Family Code Section 2640 claim is a request for reimbursement based upon one spouse’s Separate Property contribution to the acquistion of Community Property. A reimbursement would be due from Community Property to the contributor spouse’s Separate Property to reimburse the contributor for their contribution. A reimbursement claim may be applicable to the extent the spouse can […]
The New York Times ran an article December 4 2010 titled “Taking Sides in a Divorce, Chasing Profit” . The piece details the emerging business of bankrolling litigation. In this case, Divorce litigation. “With some in the financial world willing to bet on almost anything, it should be no surprise that a few would see […]
