Articles Posted in Property Division

It wouldn’t be a surprise if you had never heard of a “trust account” prior to partaking in a divorce. While there are many different types of trust accounts, in this context we will discuss accounts that attorneys, specifically family law attorneys, maintain on behalf of their clients. 

To begin, a trust account is a separate account that a lawyer or law firm may open to hold money that a client or third party has an interest in. Attorneys are not allowed to comingle (mix) any of their own personal funds with funds held in a client’s trust account (with some limited exceptions). There are two types of attorney-client trust accounts. The first is an “IOLTA” account, which holds small amounts of money for short amounts of time, typically retainers, and the interest accrued goes to the state bar. The second type is a Segregated Interest-Bearing Attorney Client Trust Account (“segregated trust account”), which holds larger amounts of money for longer periods of time, and the interest accrued goes to the client. The second type, segregated trust accounts, will be discussed here. Continue reading

Part 1 of this two-part blog examined in detail a Canadian judge’s decision that explained why dogs cannot be treated as anything other than property in a divorce. This, being essentially the same state of the law in California, was proffered here in hopes that our readers could better understand why their beloved companions are treated this way in a divorce.

However, if Part 1 had you feeling down about the status of pets in the law, the legislation examined here in part 2 should give you some hope! After I had already begun preparing blog Part 1 in this series, an amendment to Alaskan divorce legislation came into effect which signals a major step forward for pets owned by divorcing couples. Alaska has now become the first state to allow its courts to take a pet’s well-being into account when rendering a judgment for divorce!

More specifically, the Alaskan legislation that came into effect on January 17, 2017, states the following: Continue reading

It is generally understood, among family law attorneys, that Family Code section 2640 is one of the most cited statutes in California Family Law. Family Code section 2640 deals with separate property contributions to the acquisition of community property. However, Family Code section 2641 can be just as important if the community made substantial contributions to the education of one spouse.

Many states handle marital contributions to the education of a spouse in different ways. In some states, a spouse can actually be said to acquire an interest in the other’s spouse’s education and profession. California takes a decidedly different approach. Under California law, the extent to which a spouse can seek reimbursement for contributions made to other spouse’s education are explicitly limited by statute to Family Code section 2641.

Having said this, let’s take a look at the statute. Continue reading

It’s no secret that many divorces can be difficult and contentious (although they certainly don’t have to be). Between the raw feelings from splitting up, disagreements regarding how to deal with the children, and the inability to reach agreements regarding spousal support and property, things can be difficult. One case in particular, Sagonowsky v. Kekoa, illustrates what happens when a contentious case totally goes off the rails.

The appeals court, in somewhat of an understatement, called the underlying proceedings a “lengthy and acrimonious battle.” Here are just some of the ways this case was acrimonious: Continue reading

This won’t be the first, and probably won’t be the last, time that I post a blog about how dogs get treated in a divorce. Why? As a dog owner I know what a meaningful role the family pet plays in our lives. As an attorney, I have seen the emotional impact that this issue can have on my clients. Because pets play such a big role our lives, it can become a major issue when divorcing spouses don’t agree on what should happen to the dog when they divorce. In Part 1 of this blog, I examine a recent decision by a Canadian judge and in Part 2, new legislation in Alaska, which together make this topic more relevant than ever.

A decision of the Queen’s Bench for Saskatchewan dated August 31, 2016 begins by stating “Dogs are wonderful creatures. They are often highly intelligent, sensitive, and active, and are our constant and faithful companions. Many dogs are treated as member of the family with whom they live.” True! I don’t think any dog or pet owner could disagree with that! Continue reading

Almost every divorce case that comes through our office will have spousal support (also called alimony) as a major issue.  Whether we represent the party who will pay spousal support or we represent the party who will receive spousal support, one of the first topics we discuss is how the IRS will treat spousal support payments.

The IRS will treat spousal support as “income” to the recipient and a “deduction” for the payor so long as all of the requirements of IRC §71 are met.  These requirements are often referred as the “Seven D’s.” Continue reading

Under California law, once a party is served with the summons and petition for dissolution, they have 30 days to file a formal response with the Court. After this 30 days is expired, the petitioner has the option of filing for a default judgment granting them everything they asked for in their petition, including the dissolution of the marriage once the six month statutory cooling off period is completed. However, the respondent can come back within six months, under Code of Civil Procedure section 473, and get the default judgment set aside as if it never existed. Would such a default judgment also set aside the actual dissolution of the marriage, or do parties always remain divorced once they are divorced by the family court? Continue reading

..…I just couldn’t pass up the chance to write about a divorcing couple that went through a heated battle over World Series tickets. Apparently this battle became was so “serious” that a suburban wife felt it appropriate to file an emergency petition in a Chicago court for orders that the husband hand over the tickets which were obtained prior to filing for divorce. Even more surprising is the fact that the Chicago judge made an emergency ruling on this issue. Read on to find out what the ruling was. Continue reading

Bifurcation is an often underutilized procedure in civil cases (including family law cases) that, if used correctly, can significantly reduce the attorney fees and costs necessary to bring a case to a conclusion and can significantly increase the prospect of settlement.

So what is bifurcation exactly? In the process of bifurcation, the Court, usually on the motion of one of the parties, agrees to hear a trial on just one part of a case. Often times there are difficult issues, that once resolved, simplify the rest of the case. Continue reading

The question of a party’s income available for support has been the scourge of many attorneys and forensic accountants for a long time. It is a difficult and evolving issue, with new cases coming out honing and refining the interpretation of Family Code section 4058. Below, we take a look at a few common topics that are raised in child and spousal support cases.

Inheritances

If one party gets a seven figure inheritance from Great Aunt Birgit, is that income available for support? This was the question raised in County of Kern v. Castle. The Court determined that inheritances are not income available for the purposes of child support. Continue reading

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