Tag Archive for: California Divorce Dictionary

Temporary orders for money in divorce

Temporary orders are usually issued regarding child custody, child support, spousal support and use or possession of assets. They cover the time period between the time that the divorce petition is filed and the time that the judgement of divorce is issued. Orders of any type are legal matters requiring the attention of legal counsel. Wellspring Divorce Advisors requires all of our clients consult with legal counsel to make sure they understand their legal rights and obligations.

Divorce is not a fast process. It is a legal, emotional and financial process often lasting years from the date a petition for dissolution is filed. Because of the often long periods of time passing between petition and judgment the court is often asked to make temporary orders on certain pieces of the case. Temporary Orders are important from a financial perspective because they are designed to protect the parties from risks that appear during pending dissolution proceedings. Risks might include a full time mother and homemaker being cut off from family bank accounts and by extension unable to pay bills. They may be entered for the sole purpose of providing clarity and guidelines to parents as to their obligations to support minor children. There may also be reasons to make orders for a party to continue supporting the costs of a marital asset in order to protect credit scores. Temporary orders could also be used in situations where extensive financial data gathering is under way and the court simply lacks complete information to make longer term decisions.

Following are some examples of temporary orders related to finances we have seen in our practice. We have provided links to California self help websites where possible.

  1. Order for Temporary Alimony or Spousal Support – A temporary order for alimony is often entered to ensure both parties have the ability, to the extent possible, to maintain the marital standard of living they enjoyed during marriage. At the very least the temporary order is put in place to provide necessary funds to a non-working or lower earning spouse to support themselves during pending litigation or settlement discussions. In California the amount of temporary alimony will usually be calculated by a computer program called Dissomaster based upon historical and current incomes of both parties. Note: Temporary spousal support is almost always higher than long term spousal support in our experience.
  2. Order for Temporary Child Support – A temporary child support order provides necessary funds to a non-working or lower earning spouse to support the expenses necessary to support minor children. The amount of temporary child support will be based upon the incomes of both parties as well as the needs of the children. If, for example, the children have special needs or attend private schools, orders may be entered to cover the associated expenses of specific items.
  3. Order for Sole Use and Possession of the Marital Residence – In more contentious cases parties may argue over who should move out of the marital residence during the pending litigation. It may be necessary in this case to grant one party sole use and possession of a marital home on a temporary basis while litigation or settlement discussions proceed.
  4. Automatic Temporary Restraining Orders – in most jurisdictions the filing of a petition for marital dissolution in accompanied by temporary orders restraining either party from selling, encumbering or otherwise disposing of an asset. The orders may also restrict you from changing beneficiaries on insurance or retirement funds.

 

What is no fault divorce and how does it affect my financial settlement?

No Fault Divorce means that you are not required to provide proof your spouse was “at fault” or did something wrong, such as committing adultery, or being abusive to be granted a divorce. Every state in the US has adopted some form “no-fault” divorce laws. California was the first to do so in 1969 under then Governor Ronald Reagan. New York was the last to do so in 2010. The application of the no fault divorce terminology is not uniform from state to state since each state independently passed laws to enact it. Some states allow but do not require the proof of fault in a divorce filing while others don’t even allow a petitioner to claim any grounds for fault in a filing. Check with an attorney in your state to verify your state laws.

How can no-fault laws affect your financial settlement?

They don’t necessarily. You may still be permitted to show facts related to one parties actions as part of your case. Some states are known as “equitable distribution” states and allow a judge to take the conduct of parties during the marriage into account in dividing assets. Equitable does not mean equal. This means the court can divide assets based up on what it believes is FAIR and effectively penalize a party financially for their actions during marriage. Dissipation is one of the most common fault actions affecting an asset division in divorce. Dissipation, in loose terms, refers to the misappropriation of marital assets. Usually these allegations stem from drug use, pornography, gambling or expenses related to acts of infidelity.

If you believe dissipation to be an issue in your divorce we suggest you seek guidance of a certified divorce financial analyst at Wellspring Divorce Advisors to help you understand the cost/ benefit of making such an argument. These types of claims typically require significant forensic accounting to prove the flow of funds and who was in control of it and it may not be worth it to pursue the claim in light of the cost associated with doing so.

What are Benefits of Divorce Financial Planning?

You will learn about the ramifications of complex subjects such as separate vs. community property, valuing and dividing property, retirement and pensions, spousal and child support, the family residence, tax ramifications and insurance. You will

    • Understand the difference between separate and community property;
    • Understand how personal property, intangible and illiquid assets are valued and divided;
    • Understand Defined Contribution versus Defined Benefit plans versus Deferred Compensation plans and how they are valued and divided;
    • Understand the tax ramifications of Spousal and Child support including recapture and Child Contingency rules;
    • Understand the importance of security for support payments.

What is No Fault Divorce?

No-fault divorce refers to a divorce in which the granting of a dissolution of marriage does not require  a showing of wrong-doing of either party. It is therefore not necessary for one party to produce evidence that the other has committed a breach of the marital contract. In other words. You do not have to prove that your spouse cheated or misrepresented themselves in order to seek a divorce.

“No-fault” divorce in the United States originated in the state of California effective January 1, 1970, in a bill signed by then governor, Ronald Reagan. In August of 2010, New York governor, David Paterson, signed “no-fault” divorce into law, and since October 15th, 2010 no-fault divorce has been legal in all 50 U.S. states.

Prior to no-fault rules, a divorce could only be obtained through the showing of fault of one of the parties. Unfortunately it wasn’t just about proving the other party didn’t love you anymore. Instead you had to prove one party had breached the marital contract through adultery, abandonment, felony or other culpable acts. In circumstances where there was no party at fault and the couple simply wanted to dissolve their marriage a couple might arrange for what New York practitioners called “collusive adultery”. A pre-arranged time would be set by mutual agreement for Wife to return home to find Husband with a mistress. This finding would offer the evidence of adultery necessary to obtain a divorce.

These types of arrangements were common along with black mail through unsubstantiated accusations of fraud, cruelty and criminal behavior.  I am told by attorneys in New York and Connecticut that black mail and other legal fictions were common for divorces in New York state until the 2010 adoption of no-fault laws.

The opposing party would often not contest pleadings or do so only sparingly as a token for the courts. Ultimately judges and some lawyers began to recognize the affect these legal fictions could wind up having on the judicial system considering the dissolution proceedings were started with lying under oath.

The term no-fault may eventually fall out of the vernacular of the American people as no-fault laws have now been adopted by all states in the union. I was asked to explain what it meant recently and imagine it will take time with television representations like the 1960’s  divorce played out in the AMC series Mad Men. The DVD for Mad Men Season 4 contains “Divorce: Circa 1960s” – A three-part documentary about divorce during a time when the traditional family was the core of American society. I have not seen it yet but friend and colleague, Constance Ahrons, has had good things to say.

 

 

Celebrity Divorce Lawyers


These “celebrity­” Divorce Lawyers aren’t the only ones billing out at $600 + per hour. Keep in mind that price is only an issue in the absence of value. I do not have personal experience with any of these attorneys but imagine they bill out at such a high rate because they deserve to do so based on experience­, knowledge and skill. I would pay to spend a day in court with each of them to watch how they operate.
Read the Article at HuffingtonPost