Changing Spousal Support in California

With time, comes many changes, and this is often true of the circumstances in the years following a divorce. Many people find that their lives have changed significantly at some point after the divorce is final and they realize they need to change the spousal support order that is currently in place. This article will provide some basic information on how that is done and why it may be beneficial for you with information about changing spousal support in Caliofrnia summarized from ca.courts.gov: https://www.courts.ca.gov/1250.htm.

  • Can I change spousal support after the divorce is final?

Yes, you can change spousal support after the divorce is final if there has been a change in circumstances, but it is important to keep paying the full amount under your current order until you get the order changed, even if your situation has changed. Only the court can release you from your obligations, not the underlying circumstances. This is typically accomplished via a stipulation between the parties that is signed by the judge or a motion to the court requesting a modification of the spousal/partner support amount.

  • What is a change in circumstances to justify a change in spousal support?

A change in circumstances means that something significant has changed since the spousal or partner support order was made. This could be a variety of circumstances:

  1. perhaps the person paying has had a significant drop in income and can no longer afford the amount of support
  2. perhaps the person receiving the support has had a change where the support is no longer needed
  3. perhaps the person getting support is not making a good faith effort to become self-supporting
  •  Can the parties agree to a change in spousal support?

If the spouses or domestic partners can reach an agreement on the new amount of spousal or partner support, they can draft is up as an agreement/stipulation. It will then go to the judge for signature.

  •  Why is asking for a new court order right so important?

Spousal or partner support cannot be changed retroactively. This means if you wait, you will not be able to change the amount as to the date that your income went down. If you lost your job six months ago, but are only filing the paperwork now, the judge will not be able to go back to the date that you lost your job. The judge can only make the modification from the date that you filed the papers. Often people think that they might get a new job, or they may be too stressed or worried to prioritize changing the order, or they may have impediments like being in jail or out of state which may impede their ability to get the new order. While these are valid reasons for not requesting a new spousal support order, they will not be effective in changing the support modification to a retroactive date, so that is why it is very important to ask for a new court order right away.

CONTACT THE LAW OFFICE OF DAVID KNECHT

If you need assistance changing a spousal support order or if you have any other family law related questions, contact the  Law Office of David Knecht. We have extensive experience with family law in California. Contact us at 707-451-4502 for more information.

Feeling Powerless in a California Divorce? How to Take the Power Back

If you are feeling powerless in your divorce, you are not alone. It is common to feel depression, anxiety and stress during a divorce. Some studies even show that a divorce can lower your lifespan, so if you feel sad or helpless, you are not alone.  https://pubmed.ncbi.nlm.nih.gov/23284588/ 

On the bright side, though, there is also research to indicate that quality of life post-divorce can be much better than it was during the marriage. https://www.connectedwomen.co/magazine/the-brighter-side-of-single-mom-life-why-more-women-are-living-happily-ever-after-divorce/

This article will highlight three ways to break the cycle  of feeling powerless and help you take the power back during your divorce. 

  •  Become informed. 

It’s axiomatic that knowledge is power, and this is certainly true when it comes to divorce. For many, the intimidation of the process can be daunting, but there are many online resources that can help. 

One we recommend that is unbiased and thorough is the website published by California Courts.  It can be accessed here. https://www.courts.ca.gov/selfhelp-divorce.htm?rdeLocaleAttr=en

This resource has self-help tools, information, forms and general guidance on divorce and California, and it’s a good place to start to get educated on what may lie ahead. 

  • Get organized. 

You can anticipate that assets and liabilities are going to be important in your divorce, so it’s important to get the information organized and easily accessible. Some things to consider might be:

  • What are the balances on your credit cards?
  • How much do you owe on your vehicle?
  • What is your mortgage payment?
  • How much student loan or other debt do you carry?
  • How much do you earn?

Getting information together will help you feel more in control and will make the process go more smoothly down the road. 

  •  Obtain Legal Advice. 

An attorney who is experienced in family law and empathetic to your concerns can help you feel more in control of your divorce. At the Law Office of David Knecht we have extensive experience with divorce in California. We will listen to your concerns and seek to understand how to customize the divorce to your needs. Contact us at 707-451-4502 for more information.  

How to Give Your Heirs Quick Access to Your Accounts When You Die

A recent article published by MarketWatch, https://www.marketwatch.com/story/how-to-give-your-heirs-quick-access-to-your-bank-accounts-when-you-die-11633038931?mod=home-page,  answered the question of how to give your heirs quick access to your accounts when you die.  This article will summarize the information in that article and give insights into various other estate planning tips for California estate plans. 

  •  Transfer on Death (TOD), Payable on Death (POD)

When opening a bank account or amending an existing account, you fill out a form either online or in person to make someone the payable on death beneficiary of the account. 

  • What if you have more than one person you want to designate?

Typically, you can designate as many people as you desire and you will allocate a percentage of the account that will go to each person. 

  •  What is the advantage of the TOD/POD?

While there is still some process involved (the beneficiary has to show the bank a certificate of death and the beneficiary’s identification), the advantage is that probate is avoided for this particular account. This saves time, money and inconvenience. 

  •  What about making your heir the joint owner on your account?

Another strategy is to designate your heir as the joint owner on your account. This has some advantages and disadvantages. On the upside, the heir can withdraw the money upon your death right away. The downside is that the heir can also withdraw the money anytime during your lifetime. It also subjects those funds to creditors of your heir during your lifetime. Because of these risks, a joint ownership plan is not the best for some families. For relationships with a very high level of trust, it might make sense. 

How to Help Your Loved Ones

There are many choices with estate planning in California, but the first step in helping your loved ones is to become informed of your options and get a plan in place. You’ll want to make sure any paperwork related to estate planning easily accessible to your loved ones and that it is up to date with any changes needed. At the Law Office of David Knecht we have extensive experience with estate planning in California and can help you get started or update your existing plan.  Contact us at 707-451-4502 for more information.  

 

Divorce Can Be an Act of Radical Self-Love

For many, divorce is a challenge. You may worry about your children and your future. An opinion piece published by the New York Times presents a different paradigm. From the perspective of the author, divorce for some can be a liberating, refreshing change that propels you to a better present and future. This article will summarize the opinion, Divorce can Be an Act of Radical Self-Love, which can be found here: https://www.nytimes.com/2021/09/30/opinion/divorce-children.html

  •  “Everything is my choice, and I am in charge.”

The experience of one newly single mother who works full time and attends graduate school at night was highlighted in the New York Times piece. She said she enjoyed choosing her apartment, decorating it and paying for it. Her quote was, “everything is my choice, and I am in charge.” The ability to make choices independently is an oft overlooked benefit of divorce. 

  •  Children may benefit from being released from a toxic environment. 

Many divorcing parents worry how their children may react, but the author of the NY Times opinion piece posits that children may benefit from being released from a toxic environment. She writes: “Children know on an intuitive level what their parents are thinking and feeling. Long frosty silences, screaming matches and unrelenting tension between parents can inflict damage on the well-being of their children.” 

For research that examines the way in which predivorce marital conflict influences the impact of divorce on children, see https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1741-3737.2001.00197.x

See also research on whether children benefit when high-conflict marriages are dissolved , which can be found here.  https://www.jstor.org/stable/353565

  •  Freedom from a relationship that “crushes the spirit.”

Personal development can flourish post-divorce with the newfound freedom from a relationship that “crushes the spirit.” 

Research cited in an article on connectedwomen.co supports the idea that you may be happier divorced than married.  https://www.connectedwomen.co/magazine/the-brighter-side-of-single-mom-life-why-more-women-are-living-happily-ever-after-divorce/

  • A survey conducted in the US by research firm Avvo found 75% of divorced women reported they had no regrets ending their marriage compared to 61% of divorced men
  • A UK study by Kingston University surveyed 10,000 divorced men and women between ages 16 and 60; participants were asked to rate their happiness before and after their divorce, and again the women were found to be much happier for up to five years following the end of their marriages
  • The UK study also found that divorced women reported feeling more content than they had in their entire lifetimes; the findings also indicated women were more likely to seek the support of friends, improve their health and lifestyle, seek out new experiences, and discover more about themselves.

Consult with Experienced Divorce Attorneys at the Law Office of David Knecht

If you are considering whether divorce might be the right decision for you, get experienced legal advice. At the Law Office of David Knecht we have extensive experience with family law in California and can help you successfully navigate a California divorce.  Contact us at 707-451-4502 for more information.  

 

Revocable Transfer on Death Deeds

A Revocable Transfer on Death Deeds, also known as a  “TOD” or “beneficiary deed” is a simple way to leave your residence to beneficiaries without the need for probate. A free form for this deed can be found here:  https://saclaw.org/wp-content/uploads/sbs-tod-deed.pdf

Because there are potential pitfalls with this type of deed, this article is not intended as a recommendation of Revocable Transfer on Death Deeds. We provide this information as education on this option. 

  •  What is a Revocable Transfer on Death Deed?

The current owner during their lifetime names beneficiaries. The deed has no effect until the death of the transferor, so the deed can be changed, the property can be sold or refinances, etc. When you die, the property does not need to go through probate, but your heirs will need to file or record certain documents. 

  •  What type of properties are eligible for Revocable Transfer on Death Deed?

A Revocable Transfer on Death Deed can only be used with a property with one to four residential dwelling or condominium units or a single family residence with less than 40 acres of land. 

  •  What are the advantages of a Revocable Transfer on Death Deed?

You can potentially avoid probate, provided that it was done correctly and there were no unexpected family changes. It is a simple process. It can be revoked during the lifetime of the transferor if you change your mind. There are some tax advantages. 

  • Have there been recent changes to the laws relating to Revocable Transfer on Death Deeds?

A recent Bill which you can access in its entirety here, https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB315, addressed some of the problems with Revocable Transfer on Death Deeds. 

 It states:  This bill would revise and recast those provisions, and instead make them operative until January 1, 2032. Among other things, the bill would redefine and newly define terms for these purposes, including, but not limited to, “beneficiary,” “real property,” “subscribing witness,” and “unsecured debts.” The bill would make changes to how and when a revocable TOD deed becomes effective or revoked, and would instead require the deed or revocation to be signed by the transferor, acknowledged by the transferor before a notary public, dated, and signed by 2 witnesses, as specified. The bill would add additional provisions to the statutory forms for executing and revoking a revocable TOD deed to conform to these changes, and would add additional information to the statutory “common questions” pages. The bill would require, after the death of a transferor, that the beneficiary serve notice on the transferor’s heirs, and would create a new statutory notice form for these purposes.

 

  • Where can I find out more information on how to properly execute a Revocable Transfer on Death Deed or discover whether there is a better mechanism to transfer my property to heirs?

 

At the Law Office of David Knecht we have extensive experience with estate planning in California. We can evaluate your assets and give you an opinion on whether a Revocable Transfer on Death Deed is right for you and your family. We will listen to your concerns and customize an estate plan that is advantageous to you and your loved ones. Contact us at 707-451-4502 for more information.  

 

5 Tips for Winning a Divorce Mediation in California

The American Bar Association published an article with tips for a successful mediation, with content inspired by the best-selling book, “Getting to Yes.”  This article will summarize these mediation best practices, and the full story can be found here: 

  • Separate the person from the problem.

Both parties almost always have anger, resentment, and distrust of their ex, but for the purpose of negotiation those negative emotions – while often very justified—are not productive to getting what you want out of the negotiation.  Your ex’s personality is not going to change in the divorce.  However, if you can identify specific problems to be solved, then those may be negotiable.  

  • Develop options for mutual gain. 

The more options that are presented, the more likely it is that both parties can find an option that is palatable to everyone.  Look for options that are win-win for both people so that instead of a combat position, you are taking a problem-solving tact.  

  • Focus on interests, not positions. 

With a position approach, you have a winner and a loser.  With an interest-centered approach, you try to understand the interests of the other party and the goal is to achieve solutions not winners and losers.  When you take time to really listen to what makes the other side tick, then you will understand how to properly incentivize the behavior you want to achieve. 

  • Find objective material to lead to common understanding

Both parties can respond to objective material.  For example, if two parties value property or assets differently and neither will budge, then an assessor could be hired to provide data or internet research could be done to get objective information.  

  •   Focus on the best alternative to a focused agreement “BATNA.”

If you are trying to get everything you want in a negotiation, you are likely to fail.  If you identify what you really need and prioritize, then you are more likely to achieve those realistic goals through settlement. 

Consult with the Law Office of David Knecht

At the Law Office of David Knecht we have extensive experience with family law in California and can help you successfully negotiate a California divorce.  Contact us at 707-451-4502 for more information.  

 

New Higher Estate and Gift Tax Limits for 2022

A new year brings with it new federal tax exemption numbers.  For 2022 deaths, the estate and gift tax  jumps from  $11.7 million in 2021 for an individual to $12.06 million per individual.  The gift tax annual exclusion climbs from $15,000 from previous years to $16,000 for 2022.  This article will summarize changes in federal gift and estate tax law with content from an article from Forbes.com, which can be found here:  

What do these new numbers mean?

These numbers mean that wealthy tax payers can transfer more to heirs during their lifetime and upon death. 

 

  • How are gifts used as a strategy for transferring wealth?

 

One strategy that is commonly used is to transfer gifts to heirs every year to the max allowable, which will be $16,000 per individual in 2022.  Spouses can each make a $16,000 gift, which doubles the impact. 

 

  • Is there a limit on how many can receive gifts from you? 

 

You can transfer $16,000 to as many individuals as you like, so children, grandchildren, etc. can each receive that amount without a federal tax consequence to the giver. 

 

  •  What about appreciation with the gifts?

 

Another advantage of transferring wealth through gifts during your lifetime is that the appreciation that would result from any investments that those gifts were used to purchase would go to the new generation and therefore not be in your taxable estate. 

 How are tuition payments and medical expenses a wealth transfer strategy ?

You can make unlimited direct payments for medical expenses or tuition for an many individuals as you like.   These can add up and be very powerful to help the next generation create a better situation.  

Where can I find an attorney who can help me with estate planning in California?

An experienced attorney can help you make advantageous estate planning decisions for the benefit of you and your loved ones.  At the Law Office of David Knecht, at 707-451-4502, we have extensive experience in estate planning in California and can help you create the right plan for you. 

 

5 Divorce “Don’ts” for a California Divorce

If you are considering divorce, you may have reached out to friends or family to get their advice.  Many people may have shared with you the do’s and don’ts to help you navigate the divorce process effectively.  This article will add to the advice, with a cautionary list of things not to do. 

 

  • Don’t necessarily keep the house.

 

A home can have a lot of sentimental value, but when evaluating it in the divorce, you need to look at it as simply an asset or a liability.  Determine whether you have sufficient resources not just for the mortgage and utilities but for any maintenance. Consider whether it meets your needs now. Evaluate with logic not emotion.

 

  • Don’t ignore potential tax consequences or retirement accounts. 

 

Make sure you understand how your taxes will be impacted going forward and how any deductions or stimulus for the children will factor in.  Talk to an accountant or lawyer to plan taxes ahead of time so that you aren’t caught by surprise. Additionally, make a plan for splitting the retirement so that you aren’t left without those resources later on.

 

  • Don’t forget about health insurance. 

 

If you or your children have been covered by your ex’s policy, you need to determine how health insurance will work going forward. 

 

  • Don’t spend lavishly out of spite. 

 

You may be receiving support pending the divorce, but generally you should spend money the same way that you did during the marriage.  Spending lavishly out of spite could interfere with the asset division.

  •  Don’t roll over all of an ex’s retirement account into an IRA if you need some of the money for divorce expenses.

 

If your divorce settlement allocates assets under a qualified domestic relations order (QDRO), then any withdrawal a QDRO alternate payee takes from a 401(k) or 403(b) is exempt from the 10% early withdrawal penalty—even if you’re under age 59½. The bottom line is if you think you’ll need money now, you might want to make a withdrawl before the rollover. But, do this with caution, because you will owe income tax on the amounts withdrawn.

Consult with Experienced Divorce Attorneys at the Law Office of David Knecht

At the Law Office of David Knecht we have extensive experience with family law in California and can help you successfully negotiate a California divorce.  Contact us at 707-451-4502 for more information.  

 

Where You Should Keep Your Estate Planning Documents

A recent business story in the LA Times online posed an interesting question:  Where should you keep your estate planning documents?  This article will answer this and other basic estate planning questions.  

1. What is the downside of putting your estate planning documents in a safe deposit box at the bank? 

People sometimes think they should keep their original estate planning documents in a safe deposit box.  However, when the bank is notified that you have died they will often seal the box until your executor can prove they have the legal right to access the contents.  If the documentation needed is in the box, then that can create a sticky situation. 

2. What is a better place to store your estate planning documents?

One option is to keep the documents in your own safe, but that is not the best solution.  If you fear someone with bad motives could access your safe, then that is not a great option.  For most people, the best option is to leave the original with your attorney and provide copies to your executor and other trusted people.  You can give them your attorney’s contact information and have peace of mind knowing that the documents are in a safe place. 

3. What estate planning documents should I store with my attorney?

 

The following is a list of estate planning documents that you will want to have stored safely: 

  • A Living Trust
  • Powers of Attorney for Property and Healthcare
  • HIPAA Authorization
  • A Living Will/Advance Healthcare Directive
  • A Pour-Over Will
  • Deeds to Your Properties
  • Beneficiary Designations
  • Guardian Nominations for Minor Children

Where can I find an attorney who can help me with estate planning in California?

An experienced attorney can help you make advantageous estate planning decisions for the benefit of you and your loved ones.  At the Law Office of David Knecht, at 707-451-4502, we have extensive experience in estate planning in California and can help you create the right plan for you. 

 

What is a Holographic Will and are Holographic Wills Legal in California?

This article will explain some basic principles relating to holographic wills in California.  What is a holographic will?

The definition of a holographic will found at is a holographic will is a will that is handwritten, dated and signed by the person writing the will.  See https://www.courts.ca.gov/documents/Common_Words_Probate_Cases.pdf

Where can I find the law relating to holographic wills in California?

 

CA Prob Code § 6111 (2017) contains the black letter law relating to holographic wills.  It can be found here:  https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=6111.&lawCode=PROB#:~:text=%29%206111.%20%28a%29%20A%20will%20that%20does%20not,as%20to%20the%20date%20of%20its%20execution%20and%3A

What does Section 6111 say?

(a) A will that does not comply with Section 6110 is valid as a holographic will, whether or not witnessed, if the signature and the material provisions are in the handwriting of the testator.

(b) If a holographic will does not contain a statement as to the date of its execution and:

(1) If the omission results in doubt as to whether its provisions or the inconsistent provisions of another will are controlling, the holographic will is invalid to the extent of the inconsistency unless the time of its execution is established to be after the date of execution of the other will.

(2) If it is established that the testator lacked testamentary capacity at any time during which the will might have been executed, the will is invalid unless it is established that it was executed at a time when the testator had testamentary capacity.

(c) Any statement of testamentary intent contained in a holographic will may be set forth either in the testator’s own handwriting or as part of a commercially printed form will.

What kind of attorney can help me with a loved one’s holographic will?

 

An attorney who has experience in estate planning law can help you with the probate process and understanding whether a holographic will is enforceable.

At the Law Office of David Knecht, at 707-451-4502, we have extensive experience with estate planning in California and can answer your questions relating to a holographic will.