Archives for July 2021

5 Ways to Save Money on Your California Divorce

Many people considering divorce are fearful of the cost and how the expense of a divorce may negatively impact their future long-term.  This article will help provide suggestions on how to save money on a California divorce.     

  1. Prepare and Organize Your Information.  If you prepare and organize your information in advance of meeting with your attorney, your meeting with him or her will be more effective.  You can make a list of all your assets and liabilities.  You can do research online to assess the value of your home, vehicles, and other assets.  When you organize this information into a concise summary, you will be better prepared to have an efficient discussion.  
  2.  Give Consideration to Your Priorities, Questions and Concerns.  Many issues in divorce require careful thought and consideration so that you can establish your ideal outcome.  For example, what would be the best custody arrangement for your schedule?  Where would you like to live now and in the future?  What assets are important to you to keep and what do you not mind selling?  Your attorney will certainly be invested in helping you achieve your ideal outcome, but in order to do that he or she will need to work with you to find out what that target is. 
  3. Choose a Support Person.  Decide a support person who can be there for you when you need impartial advice, a shoulder to cry on, or just a listening ear.  This support person will be essential in helping you process the many emotions involved in a divorce.  This will save you money by helping you set reasonable goals, make good decisions, and keep the time you are paying your attorney focused.  
  4. Communicate in Writing When Possible.  One way to save cost in any legal case is to communicate in writing, when it makes sense.  If you need to send your attorney a quick thought or note, an email or text can be quicker and cheaper than a phone call. 
  5. Choose Your Attorney Carefully.  One of the most important ways to save money in a divorce is to hire an attorney who is experienced in family law.  Some people are tempted to hire a friend or family member who is a lawyer with the idea that they may get a better deal going with someone they know.  Unfortunately, when you hire someone who does not have experience, you may be spending more money because they may have to come up to speed on family law issues on your dime.  

Consult with the Law Office of David Knecht

If you want a lawyer who is effective, efficient and experienced, while still being cognizant of cost, please contact the attorneys at the Law Office of David Knecht, at 707-451-4502.  

 

Filed Under: Divorce Lawyer, Vacaville Attorney, Vacaville Lawyer

Estate Planning Tax Advantages for Married Couples in California

Estate planning is a hot topic in 2021, and creating a plan with taxes in mind is especially important.  Taxes are a very important part of estate planning and this article will focus on a narrow slice of that large pie from a legal point of view as we discuss the estate planning tax advantages for married couples.  Of course, these advantages apply to both same sex and different sex couples, and understanding how they work can be helpful background information for you as you consider your overall estate plan.  If you are interested in learning more from an investor’s perspective, this article on Investopedia may also be a helpful resource.  https://www.investopedia.com/terms/u/unlimited-marital-deduction.asp   

  1. Unlimited Marital Deduction.  As per federal law, you can give assets by gift of inheritance to your spouse, and the taxes on that transfer are deferred until the death of the second spouse.  This is a powerful tool because there is not a limit on the amount that qualifies for the marital deduction.  
  2.  U.S. Citizen Requirement.  It is important to be aware that the unlimited marital deduction only applies when both people are U.S. Citizens.  If the survivor is a non-citizen, then federal estate taxes must be paid on an estate that is above the federal estate tax exemption. 
  3. Qualified Domestic Trust (QDOT).  If you are a U. S citizen wanting to pass assets to a non-U. S. Citizen spouse to defer federal estate taxes, a QDOT may be the right mechanism for you.  A QDOT allows the spouse who dies first to defer all federal estate taxes until both spouses have died and also allows that spouse to retain control over where his or her estate will be distributed after both die. 
  4. Qualified Terminable Interest Property Trust (QTIP Trust).  A Qualified Terminable Interest Property Trust (QTIP trust) allows a person to create a trust upon his or her death that grants a life estate for the spouse that survives.  The advantage here is that it can be done without incurring federal estate taxes.  This trust will be included in the surviving spouse’s estate for federal estate taxes, but it is distributed according to the wishes of the spouse that died first.  The surviving spouse cannot change the QTIP Trust.  

 

Consult with the Law Office of David Knecht

There are many ways to effectively utilize estate planning to effectuate your wishes with tax advantaged methods. For a thorough discussion of issues relating to estate planning and taxes, please contact the attorneys at the Law Office of David Knecht, at 707-451-4502.  

 

Filed Under: Estate Planning, Estates

Can I “Kick Out” My Husband or Wife from the Home?

Unfortunately, some relationships involve violence or threatened violence, the question arises whether the victim can legally get the offending spouse “kicked out” of the home.  The answer is yes, under certain circumstances. This article will discuss the process in more detail. 

  1. Authority for the Court to Remove a Spouse from the Home. The Domestic Violence Prevention Act (DVPA) and Family Code § 6340, 6321, and 6324 authorize a court to order the restrained party to move out of property and allow the protected party to use and possess the property under specific circumstances.  To read these code sections, click the following links:  
  1. What Facts Need to Be Presented in Hearing.  There are three facts that need to be presented at a hearing:
  2. That the person staying has a reason to be in the home, specifically, “Facts sufficient for the court to ascertain that the party who will stay in the dwelling has a right under color of law to possession of the premises.”
  3. That assault or threat of assault is involved, specifically, “That the party to be excluded has assaulted or threatens to assault the other party or any other person under the care, custody and control of the other party, or any minor child of the parties or of the other party.”
  4. Harm, specifically, “That the physical or emotional harm would otherwise result to the other party, to any person under the care, custody and control of the other party, or to any minor child of the parties or of the other party.”
  1.  Does the person staying have to be the owner of the home?   Not necessarily.  This question was presented in a case from the Court of Appeals in California, Nicole G. v. Braithwaite, which can be found here: https://scholar.google.com/scholar_case?case=17446401920668045282&q=braithwaite&hl=en&as_sdt=4,5

In this case, the Court ordered Braithwaite to move out of the property and granted Nicole’s domestic violence restraining order against Braithwaite.  In that case, the title to the home was still a civil case and a disputed issue between the parties, but the Court was able to exercise the power to order Braithwaite out and allow Nicole to take possession of the home temporarily to protect her. 

Consult with the Law Office of David Knecht

If you have questions about removing a spouse from a home or any questions relating to divorce or family law, please contact the attorneys at the Law Office of David Knecht, at 707-451-4502.  We have extensive experience in family law and can be a knowledgeable advocate for you.  

 

Filed Under: Divorce Advice, Divorce Attorney, Divorce Lawyer, Divorce Planning

Can I Force My Ex to Sell the House in California?

The question of whether you can force your spouse to sell the home in a divorce seems like a simple one, but the answer can sometimes involve complex analysis.  It is an issue that often arises because the home is one of the largest investments many married couples make. 

This article will provide some helpful background information to assist you in understanding potential issues, but we recommend seeking legal guidance on your specific situation, given the complexity of the issues and the significant value the home for many families.   

  1. California Family Code §2550.  California Family Code §2550 governs the division of property in a California Divorce.  The full text can be found here:  https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FAM&sectionNum=2550.
  2. How does this law apply in practice?  This law provides that family court judges must divide the community estate equally, but this doesn’t speak to one specific asset, such as the house.  It refers to the whole of the community property estate, which will include other assets, such as money in the bank, vehicles, etc., and also debts, such as credit card debt, student loans, etc. 
  3.  What is the bottom line?  When Section 2550 applies the home, the bottom line is that one party may be awarded the home, but only when there is equality in the totality of the division of assets such that the other party’s right to reimbursement or an equalization payment is honored.  It is also true that a judge can order the sale of the home as per the authority provided by this law.   
    • What is partition and how is it used in a divorce to force the sale of the home
  4. Where is the law governing partition?  You can find California Code, Code of Civil Procedure §872.210 here: https://codes.findlaw.com/ca/code-of-civil-procedure/ccp-sect-872-210.html
  5.  Can Partition be Used in Divorce?  No, unless there are special circumstances involved, a partition action is specifically excluded for divorce proceedings:  “an action between spouses or putative spouses for partition of their community or quasi-community property or their quasi-marital interest in property may not be commenced or maintained under this title.”

Consult with the Law Office of David Knecht

If you have questions about how your home will be divided in a divorce or any other family law question,  please contact the attorneys at the Law Office of David Knecht, at 707-451-4502.  We have extensive experience in family law and can be a knowledgeable advocate for you.  

 

Filed Under: Divorce Attorney, Divorce Lawyer, General