When you are getting a divorce, it is just as important to fight for your assets as it is to try to get rid of your debt. No matter how many assets you have or how high your net worth is, you still may have debt such as a low interest rate mortgage or student loans. How does this debt affect the divorce proceedings, and what should you be aware of?
How Courts Split Up Debt
Courts will typically split up who is responsible for which debt in the divorce decree. A spouse who receives a large number of assets may also receive a large amount of the debt. How debt is split will also depend on whether the state is a separate property or community property state. In a separate property state, you are typically only liable for debt that it is in your name or that you co-signed for. In a community property state, either spouse may be liable for debt incurred during the marriage – even if only one spouse was aware of it and only one spouse signed the loan agreement. The court may also take into account whether or not the debt that one spouse took on was beneficial to both parties. In neither community nor separate property states will a spouse be liable for debt that the other spouse incurred before the marriage or after the divorce. California is a community property state, as are Arizona, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In Alaska, you and your spouse can decide whether your property will be community or separate.
What Can You Do to Protect Yourself?
Via the divorce decree, a judge may assign debt to one spouse to pay off. However, this divorce decree only covers the divorcing couple; it has no power over creditors. Even if your ex is supposed to pay off a car loan or a mortgage following a divorce, the creditor may still be able to come after you if your ex does not make the payments. In order to try to prevent this, you can get an indemnity clause included in your divorce decree so that you can sue your ex for any loan payments that you end up having to make that he or she was actually responsible for according to the divorce decree. You should also insist on refinancing any debt that your ex will be responsible for so that it is only in his or her name. This requirement can also be added as a clause in your divorce decree.
No matter how complicated your divorce, we can help. For help with your case or in any other aspect of family law, you can turn to the Law Office of Renkin & Associates for the help that you deserve. We are prepared to answer your questions and fight for your assets.
Couples who are hashing out the final details in a divorce agreement are typically eager to get on to the next chapter of their lives; however, this does not mean that they should overlook some of the benefits or avoidable pitfalls in spousal support payments in the federal income tax code.
There are three main types of support – alimony, child support and property settlement – all of which should be taken into consideration for their potential tax consequences when going through a divorce regardless of whether you are the paying or receiving spouse. Alimony and child support are the ones that cause the most trouble for divorcing couples due to their tax consequences.
Alimony
Although you typically are not allowed to reassign income to another person, alimony is one way to work around this. While the receiving spouse must declare alimony as income, the payor can deduct it. Payors are typically in a higher tax bracket than the receiver, so the receiver usually pays less money in taxes on alimony than the payor would have. There are additional factors to take into account regarding alimony for tax planning purposes. For example, many payors may prefer to pay as much alimony as possible in the first or second year following a divorce in order to get as big of an adjustment as possible and also to try to attain some feeling of finality with the divorce. However, front-loading alimony payments in this way may result in more taxes due in subsequent years. If alimony payments decrease more than $15,000 in the first three years that alimony is paid, the excess that was frontloaded may be “recaptured,” meaning that the tax benefit to the payor will be lost. For tax purposes, this recapture is considered income to the payor and a deduction to the receiver who already received the money and already paid taxes on it.
Child Support
Child support is neither deductible by the payor nor taxable by the receiver. For this reason, many receivers prefer to receive child support, and many payors prefer to pay the same amount in alimony instead, which clearly saves more money for the payor and typically for the divorcing couple overall. Because of the tax benefits to alimony payors, many divorce agreements may try to disguise child support as alimony payments. Nevertheless, the tax code has very clear guidelines for what counts as child support and what is considered alimony. Alimony payments that terminate if the child dies or within 6 months of the child turning 18 are particularly suspect, but there are also many other restrictions.
Besides these tips, there are many more tax considerations to take into account while going through a divorce. If you need skilled legal representation in a divorce, custody proceeding, restraining order, civil union or any other aspect of family law , you can turn to the Law Office of Renkin & Associates for the expertise that you deserve. Our attorneys fight hard to help clients protect their assets during a divorce, which is one of our San Diego divorce lawyers’ specialties.
The answer to that question appears to be the only thing that ex-couple Harold Hamm and Sue Ann Arnall can seem to agree on: no. Oil entrepreneur and multi-billionaire Harold Hamm, the CEO of Continental Resources, originally called the settlement “fair and equitable” but has since changed his tune. His ex-wife, a former attorney and manager for Hamm’s company, also appealed the settlement amount, claiming that it was was unfair. With this being one of the largest divorce settlements in recorded history, it’s important to find out: who is right?
The Ex-Husband’s Case
Hamm already owned 68% of Continental before he got married. Although he is respected as an experienced and successful businessman, Hamm claims that the price of the Continental stock he owned became higher-valued because of the increase in oil prices and other factors over which he had control. He is not just being modest. Under Oklahoma law, if assets are accrued during marriage from passive rather than active sources, they may not be divided equitably between the divorcing spouses. By arguing that the increase in his net worth was due to passive luck instead of his or his wife’s hard work may save him hundreds of millions or even billions. Although Hamm initially agreed to the $1 billion settlement agreement, he now claims that the figure is too high. Previously worth $19 billion, his assets have decreased by more than 50% to just over $9 billion, most likely due to the recent sharp drop in oil prices. This sharp passive loss may also fuel his claim that the value of his stocks only went up because oil prices climbed over the decades since he started the company in the 1960s. Although the couple was legally separated in 2012 (despite filing for divorce twice beforehand), Hamm has attempted to get the legal separation date restated as 2003 so that Arnall would not be entitled to anything accrued after that date. This change would have been substantial, considering Continental went public in 2007.
The Ex-Wife’s Case
Following the award, Arnall asserted that the settlement amount is less than 10% of the wealth that was accrued during their 26-year marriage. Although Hamm started the company before their marriage, it was only valued at $50 million when they got married. Furthermore, as a former executive of Continental, she pointed out that she was instrumental in amassing this fortune. A lawyer at the company, Arnall was involved in winning lawsuits against competitors. She worked at Continental from the 1980s until 2008, including time spent as a manager. The couple had no pre- or post-nuptial agreement, and Arnall contends that Hamm refused to put property in both of their names during their marriage. Arnall has subpoenaed documents in an attempt to establish Hamm’s business savvy to show that he was instrumental in increasing the company value and to show that the gains were not merely passive.
No matter how complicated your divorce, we can help. For help with your case or in any other aspect of family law , you can turn to the Law Office of Renkin & Associates for the help that you deserve. We are prepared to answer your questions and fight for your assets.
In the past couple of decades, pets have taken on an increasingly more important role in our lives, and now many people consider their pets to be members of the family instead of just animals that they own. The United States legal system has begun to follow suit in rulings on divorce proceedings. Where pets were once considered only property, they have now become the focus of many couples’ divorce agreements and disputes.
Pets Still Considered Personal Property
Legally speaking, pets, unlike children, are still technically considered personal property. Traditionally, a court would determine “custody” of a pet the same way that they would determine who gets a toaster oven or a lawn mower. The court would take into account which spouse purchased the pet and when or if the pet was given from one spouse to another as a gift or inherited by one spouse from a deceased relative. The court will take into account whether the state is a community property or separate property state. Unlike in a separate property state (sometimes called an equitable property state), in a community property state both spouses are typically entitled to the assets earned during the course of the marriage, regardless of who earned them. Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin, as well as Alaska if a couple opts in. When the court treats animals like property without taking emotional attachment and the best interests of the animals into account, couples may enter into a bidding war for the pets, using the other assets that are in dispute as bargaining chips.
Changing Legal Landscape
Nowadays, courts have started to acknowledge that many people view their pets to be members of the family. In addition to the above criteria, a court now may also take into account who spent more time taking care of the pet and which spouse would be a better owner and take better care of the pet. Courts also typically honor prenuptial agreements that specify who gets to take ownership of the family pet in the event of a divorce. Since a marriage may outlive a pet, and a couple may purchase a pet together either before or after marriage, courts also usually honor postnuptial agreements. However, there are a few exceptions to this rule. For example, if the pet had been abused by the spouse who was supposed to get possession, then that spouse would not be able to keep the pet. Additionally, if there is a restraining order against a spouse, that spouse cannot keep the pet. Despite these precautions, there have still unfortunately been cases where there have been threats or actual injury to the animals in dispute by the spouse losing possession. If you need skilled legal representation in a divorce, custody proceeding, restraining order, civil union or any other aspect of family law , you can turn to the Law Office of Renkin & Associates for the expertise that you deserve. Our attorneys fight hard to help clients protect their assets during a divorce, which is one of our San Diego divorce lawyers’ specialties.
As if a failed relationship is not hard enough on everyone involved, it is more common that you would think where one of those two people is harassing, threatening, or abusing the other. At the time of your separation or divorce, the only thing you probably want to focus on is “getting out” and moving on. However, when the person you want to escape from refuses to comply, that is where the headache of ending a rocky, tumultuous relationship can go very, very wrong.
What’s the Point?
A restraining order can seem like a pointless legal action that might just upset the daunting person even more. Understandably, that is the last thing you may want to do, unless you have magical powers and can erase them from your atmosphere. Telling them if they come near you they will be in trouble with the law is probably your best option.
Protection When You Feel There Is Not Any
There are different types of restraining orders specific to different situations. It is important that the correct type is filed so that you have the proper protection in place. You are not getting a personal bodyguard, but a restraining order is like your own invisible fence and should provide a bit of relief from fear and intimidation just knowing it is there.
Depending on what is going on in your life and whether you are having domestic violence issues with a family member, spouse, or domestic partner, getting a restraining order can help. The court requires specific evidence and information in order to justify the action. If not properly requested, the order may be denied, since it can cause a major disruption in the life of the other person.
If you are in the middle of a domestic violence situation, getting a temporary restraining order or an emergency protective order is probably the best place to start. Since they are rather easy to obtain, you will be able to act fast and get some relief from the other person. If you obtain one, you will be assigned a court date where you get the opportunity to turn the temporary order into a permanent one, which may result in continued protection for up to 2 years.
Reclaim Your Life
It can get better. You need to act now in order to change the direction of the path you are following. Living in fear is no way to live. You cannot enjoy your life, and you have to be on guard at all times. Do not live that way when you can do something about it. The key is to act before you give someone the opportunity to get too close to you.
Whether you are being abused, harassed, threatened or harmed by a spouse, live-in partner, or family member, you can get help. Reach out to the professional family law attorneys at Richard M. Renkin & Associates and take the steps necessary to reclaim your confidence and your life. They have over 20 years of experience and know just what to do to help you through this difficult time of your life.
When San Diego couples find themselves broiled in a possible divorce situation, their future financial status seems daunting and frightening. In order to protect yourself if you are in this scenario, it is strongly advisable to protect any and all assets.
San Diego Divorce Tips
In order to do so, it is advisable to seek out a reputable, experienced family law attorney. Oftentimes, a friend or family member can suggest a reputable lawyer to assist you in the process. Once you have a San Diego divorce attorney in mind, it is imperative to schedule a personal one-on-one meeting to get the ball rolling. During this time, you can get a feel for the lawyer, ask relevant questions,and determine if he/she is best suited to protect your financial resources.
Other steps you should immediately consider are setting up separate accounts as well as shutting down any credit cards if they are not needed to purchase the necessities of life. You could be liable for one-half of the costif your partner goes on a wild shopping spree thinking he or she will not have to pay the bill.
Also, it is crucial that you are completely aware of all your assets as well as outstanding debt. It is important to take the time to review retirement accounts, pensions, and deferred compensation plans. It would be quite the rude awakening if your partner throws you a curve ball at your settlement.
San Diego Divorce Tips to Protect Your Assets
Another important matter is in regards to your will and trust if you have an estate plan. As quickly as possible, revoke your trust, re title your properties into tenants-in-common, and change your will to show your new situation. I am sure you would not want your ex-spouse to inherit any of your possessions once you are gone.
Remember, it is a process that must be gone through. Bank accounts can and should be divided right away. Also, do not forget that both parties are liable for credit card debt if they signed for the card. If you were on the card and your ex-spouse refuses to pay, the company will come to you demanding payment.
There is no shortage of facts, statistics, and studies related to divorce on the internet. If there’s even the slightest possibility a factor might affect divorce, chances are it’s been studied by researchers.
With thousands of studies and over 195 million Google results on various divorce topics, it can be overwhelming and time consuming to read up on some of the latest research across the nation. Fortunately, the San Diego divorce attorneys at the Law Office of Renkin & Associates have compiled some of the most recent statistics related to divorce. Many studies have yielded some very interesting – and in some cases – downright shocking results.
National US Statistics
How often do divorces occur in the United States?
It’s estimated that a divorce occurs once every 13 seconds in the United States. That equates to roughly 276 divorces an hour and 6,646 divorces a day! It typically takes couples 2 minutes to recite their wedding vows. In that time, 9 divorces have occurred.
What are the states with the highest divorce rates?
Divorce rates vary by state. The following states have the highest rates of divorce in the nation:
Alaska
Oklahoma
Maine
Kentucky
Alabama
Arkansas
What are the US cities with the highest divorce rates?
Like statewide divorce rates, the rates of divorce also vary by city. The US cities with the highest divorce rates include:
Panama City, FL
Sierra Vista, AZ
Charleston, WV
Medford, OR
Reno, NV
Pueblo, CO
What Are The Top Reasons For Divorce?
The top reasons couples cite for wanting a divorce are anything but surprising. Healthy marriages are built with trust, compassion, respect, and time. Rushing decisions, breaking trust, and failing to show compassion or respect will end a marriage quickly. The top reasons for divorce include:
Lack of commitment 73%
Argue too much 56%
Infidelity 55%
Married too young 46%
Unrealistic expectations 45%
Lack of equality in the relationship 44%
Lack of preparation for marriage 41%
Abuse 25%
What Point In Marriage Do Divorces Typically Occur?
If you’ve managed to remain married for 10 years, your likelihood of getting a divorce drastically decreases. The highest percentage of divorces occur during the first eight years of marriage.
Divorce Rates By Month
Studies have found that divorces peak in March and August with March being the month with the highest number of filings. The belief is that couples may look to avoid announcing a divorce leading up to a holiday or may have optimism for their marriage with upcoming vacations. March and August fall in-between major holiday and vacation seasons.
Does Education Impact Divorce?
Studies have found that higher education decreases the likelihood of divorce. Approximately 42% of couples with a college education divorce, while over 47% of couples with less than a high school diploma divorce.
Divorce Rates & Work Professions
Can profession predict divorce? Professions are tied to earnings and financial health plays a large role in the health of a marriage. However, there’s likely no direct correlation between profession and divorce. Still, there are certain professions with higher rates of divorce. Professions with the highest divorce rates are as follows:
Dancers – 43%
Bartenders – 38.4%
Massage Therapists – 38.2%
Gaming Cage Workers – 34.6%
Gaming Service Workers – 31.3%
Food and Tobacco Machine Operators – 29.7%
Telephone Operators – 29.3%
Textile Machine Operators – 29%
Nurses – 28.9%
Home Care Aids – 28.7%
Alternatively, professions with the lowest divorce rates are as follows:
Podiatrists – 6.81
Clergy – 5.61
Optometrists – 4.01
Agricultural Engineers – 1.78
How Does Age Impact Divorce?
The older a couple is when the knot is tied, the less likely they are to divorce. Approximately 60% of couples married between the age of 20-25 years old will end in divorce. Those who wait until after 25 to get married are 25% less likely to get a divorce. The average age for couples going through a divorce is 30 years.
Divorce Rates & Politics
Political stance may not be a good way to predict the likelihood of divorce, but rates do vary among couples of different political affiliations. Conservative couples are least likely to get a divorce. Approximately 28% of marriages among conservative couples end in divorce versus 37% liberal and 33% moderate.
How Long After Divorce Do Most Individuals Wait To Remarry?
On average, divorced individuals remarry just under 4 years after a divorce (if remarriage occurs at all).
Does The Success Rate Of Marriages Decrease With The Number Of Divorces?
You might think that the second or third try will be the charm, but studies have found the odds of a successful marriage decrease with the number of prior divorces. Only 33% of second marriages and 27% of third marriages don’t end in divorce.
California Statistics
While many of California’s divorce trends are in line with national trends, it’s still worth analyzing divorce trends in the Golden State.
How Are California Divorce Rates Trending?
Divorce rates in California are following the national trend. Divorces have decreased 10.8% since 2010. There are a number of factors at play
Breakdown of divorces by year in California:
2017
Men: 97,315
Women: 112,111
Total: 209,426
2016
Men:102,730
Women: 116,989
Total: 219,719
2015
Men: 94,509
Women: 111,013
Total: 205,522
2014
Men:102,669
Women: 113,803 Total: 216,472
2013
Men:109,549
Women:127,033
Total: 236,582
2012
Men: 117,791
Women:121,956
Total: 233,747
2011
Men: 115,216
Women: 124,512
Total: 239,728
2010
Men: 105,352
Women: 129,370
Total: 234,722
Which California Cities Have The Highest Divorce Rates?
The ten cities in California with the highest divorce rate are:
