Articles Posted in Property Division

We have previously blogged that Vanessa Bryant filed for divorce from her basketball superstar husband, Kobe Bryant. Recently, Vanessa has refused to sign the paperwork and make her divorce final. Apparently her and Kobe are pursuing a full reconciliation of their marriage. Since Vanessa filed for divorce, the couple was caught kissing on Valentines Day. Later, they were seen estranged at a basketball game claiming to be “very good friends.” Currently Kobe has not moved back in with his wife however, he already signed over to her the deeds to all three of the couple’s mansions.

Vanessa filed for divorce on December 1, 2011. Under California Family Code section 2339, no judgment of dissolution is final for the purpose of terminating the marriage relationship of the parties until six months have expired from the date of service of the petition and summons on the respondent. This means that a couple cannot obtain a divorce and become legally single without waiting six months. For Vanessa and Kobe, that period has expired and Vanessa could seek to terminate her marital status as early as June 25, 2012.

 Courtney Cox has been a beloved American icon since her role as Monica Geller on the timeless television series Friends. Cox married her husband David Arquette in 1999 while still filming Friends. By 1999 the show was a raging success and all of the Friends characters were collecting a reported $125,000 per episode. Interestingly, however, the divorce paperwork filed in the Cox-Arquette case makes no mention of a premarital agreement.

Arquette signed the dissolution paperwork on March 23, 2012. However, the couple has been separated since October 2010. In October they announced they were taking time apart in order to reevaluate themselves and the relationship. The initial paperwork indicated that Arquette was filing pro per and therefore pursuing a divorce without formal legal representation. Even more shocking, Cox filed her initial responsive documents pro per as well. Currently, Cox is worth an estimated $75 million dollars while Arquette is worth only $18 million. With such a large discrepancy between the parties’ net worth and no mention of a premarital agreement, it is surprising that so far no lawyers have been called to represent either spouse. Although neither party has formal legal representation, it is possible that both spouses have consulted attorneys prior to filing any paperwork.

According to a new research study conducted by sociologists Susan Brown and I-Fen Lin, the divorce rate of people over fifty years old is increasing. The paper, which cites the research for this conclusion, has been dubbed “The Gray Divorce Revolution.” Interestingly between 1990 and 2009, the overall divorce rate throughout the United States has declined while the divorce rate of those over fifty has risen. Professor Brown states that in 1990, only one in ten divorces were between people over the age fifty. In 2009, the number swelled, and now one in four people who get divorced are age fifty or older.

Brown and her colleagues have speculated the various causes for this drastic change in statistics. One possible reason behind this change is the different version of empty-nest syndrome these gray divorcés experience. One of the study’s participants, Dawn, states that during her marriage her and her husband pushed past all of their issues for the sake of the children. After the children all graduated from high school, Dawn says that her and her husband of two decades had grown apart and became involved in two separate lives. After being unable to communicate or reconnect, Dawn filed for divorce at the age of fifty-one.

Not unlike Dawn, a national survey conducted by AARP found that women are more often initiating the divorce proceedings. In the older age group, women report pursuing divorce 66% of the time. We previously blogged about the various reasons young couples tend to call it quits. However, the reasons for divorce amongst the older demographic appear to be vastly different. One of the leading causes of divorce among the younger generation is infidelity. Interestingly, this reason is not often cited as the compelling force behind the gray divorces. Although infidelity is not leading to these divorces, it still does occur in the relationships that are ending for those in their fifties.

Another factor that has been explored is the life expectancy of the gray divorcé. Many previous marriages ended in death before or near the time one of the spouses reached the age of fifty. Now, those over fifty are still looking forward to decades more of healthy life. Further, those who married in the 1970’s also began to focus on individual happiness as a goal in a fulfilling marriage. Taking that same principal, many spouses who are no longer happy are more willing to get a divorce.
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Former Dallas Cowboy quarterback and NFL legend Troy Aikman paid $1.75 million dollars to his ex-wife as part of an agreed divorce settlement. Aikman was married to his wife Rhonda for eleven years until the couple split in April 2011. As we have previously blogged, ten years of marriage is a significant turning point under California family law and can greatly impact the rights of the parties to a divorce. Aikman’s estimated net worth is $25 million dollars and it is unclear whether he has or will make additional payments to Rhonda.

The San Diego family court system encourages parties to reach voluntary agreements, rather than pursuing a court-determined judgment. Before a divorce or child custody case will go to trial, the court requires the parties to participate in a mandatory settlement conference. A mandatory settlement conference is overseen by the judge on the case but is facilitated by a volunteer attorney within the community. The volunteer attorney is a recognized family law expert in the field and is called the “settlement judge.” Prior to the conference, the parties are required to submit briefs to the settlement judge so that he or she will have an opportunity to review the facts and issues in the case ahead of time. If the parties are represented, all attorneys are permitted to attend the conference and speak with the settlement judge. However, the settlement judge may ask an attorney to step out of the room so that the judge has an opportunity to hear the client’s concerns. Often, the settlement judge will propose solutions that address the needs and interests of both spouses and most importantly, any children involved in the case. The scope of the issues that the parties can agree on, and therefore exclude from any further litigation, is limitless. The parties may settle property disputes, spousal and child support, child custody and visitation, and any other issues in the particular case.

Settling a case that involves such personal and intimate issues, as in all family law cases, is advantageous for all parties. Reaching a settlement can give parties control over the outcome of the litigation. The order of a judge is not debatable and might not address the specific concerns of all parties. Trial and extended litigation can also be expensive for both parties. The earlier in the process that the parties reach an agreement, the less they will be forced to spend on costs and attorney’s fees. Settlements can also be reached much faster than a final adjudication of the case in court.

After nearly twelve years of marriage Debra Messing and husband Daniel Zelman are calling it quits. 

Messing and Zelman say the split is amicable and that they intend to remain close friends as they raise their son together. The two announced their separation six months ago. Ironically, immediately following this announcement, Messing began dating her new Smash co-star, Will Chase. The divorce petition filed by Messing on Tuesday June 5, 2012 lists the commonly cited “irreconcilable differences” as the reason for the divorce.

In New York, a man is suing his ex-fiancé for contributions made in contemplation of their upcoming nuptials. Specifically, Steven Silverstein is asking for $19,000, which she allegedly withdrew from their joint bank account prior to the most recent split, $28,000 in rent to represent her ½ contribution for the apartment they shared, and $27,000 he spent in nonrefundable deposits a wedding photographer, hotel rental, videographer, and furniture rentals. The couple was engaged for two years during which Kendra Platt-Lee broke off the pending wedding twice.

Platt-Lee has since moved to San Diego and is pursuing a career in marketing. According to her lawyer, Platt-Lee denies all allegations and even plans to file a countersuit against Silverstein for failure to return her personal belongings. It is her position that relationship was resolved when she returned the $32,000 engagement ring he had given to her. The question for the Manhattan Supreme Court is whether the cash, the rent, and the deposits were all gifts from Silverstein to Platt-Lee or whether he has a right to reimbursement now that she has cancelled the wedding.

On May 19, 2012, Priscilla Chan married the creator of Facebook, Mark Zuckerberg. The couple met in 2003 at a fraternity party at Harvard where they both attended college. The wedding ceremony took place at the home they share in Palo Alto and most of the details are still being kept private. However, the wedding date has sparked the most media attention. Mark and Priscilla tied the knot just one day after Mark’s company went public. On his wedding day, Mark owned 503 million shares of Facebook, which at the time, was worth an estimated $17 billion. Sources indicate that Priscilla has no interest in Mark’s fortune. In fact, she recently graduated from medical school at the University of California, San Francisco and plans to pursue a career as a pediatrician.San Diego is located in one of the few states that have adopted community property laws. In community property states, any property acquired prior to marriage is separate property. Separate property will be awarded to the owner upon divorce without offset. Anything acquired after marriage is community property and generally distributed equally upon divorce. According to these laws, any property owned by Mark or Priscilla prior to marriage is their respective separate property and will be distributed to the owner upon divorce. However, after marriage, any earnings of Mark or Priscilla will become community property. In other jurisdictions, courts apply the equitable division rules. Under this statutory scheme, all property owned by either party at divorce is divided equitably by the courts regardless of ownership prior to marriage.

Although Mark has made it clear that his Facebook fortune is his separate property by marrying Priscilla the day after his company went public, the distinction between separate and community property can become blurred over time. Once separate property becomes commingled with community assets, the spouses must keep diligent records of the source of the funds or risk transforming once separate property into community property.

The main question upon the Zuckerberg divorce would be whether Priscilla is entitled to the increased value, if any, of Mark’s Facebook stock. The general rule in California is that stock acquired prior to marriage remains the owner separate property upon divorce or legal separation. However, the Zuckerberg case will be different because it is Mark’s job to continue to contribute to the growth of Facebook as well as its stock. So this situation begs the question – is the increased value of the Facebook stock merely stock or Mark’s earnings during the marriage? One possible solution to this gray area would be the creation of a premarital agreement. Prior to marriage, Priscilla and Mark had the option of determining how the increased value would be divided upon divorce. In the past, Priscilla had Mark sign a “relationship agreement” outlining the details of their relationship before she would agree to move to California to be with him. Considering the massive fortune at stake and the previous history between the parties, it is likely that the parties executed a premarital agreement prior to marriage.

We often blog about the importance of social networking sites as tools in family law cases. Facebook is an invaluable resource for spouses, parents, and family law attorneys to use in order to dig up information on the opposing party in a particular case. Recently, Facebook has surfaced on the family law radar in a new and unexpected way. One of Facebook’s well-known features is its ability to suggest family members, acquaintances, or friends that the user may want to “add as a friend” on his or her Facebook page. This friend suggestion tool alerted Alan Leighton O’Neill’s wife that her husband was married to another woman. O’Neill’s first wife clicked on the Facebook page of his second wife and saw her husband in a wedding photo with another woman. As a result of the friend suggestion tool, felony bigamy charges have been filed against O’Neill.

In San Diego, any married person who marries any other person is guilty of bigamy. Alan Leighton Fulk married his first wife on April 16, 2001. In December of 2011, he petitioned the court to change his name to Alan Leighton O’Neill. This tactic was used in order to accomplish his second marriage only five days later.

Although most people can gamble on a recreational basis, millions suffer negative consequences in their lives from problem gambling. According to the National Council on Problem Gambling about two to three percent of adults experience gambling-related problems each year. These problem gamblers have an uncontrollable urge to gamble and cannot stop gambling despite the negative consequences that result from their gambling. These negative consequences are frequently financial problems that impact the gamblers personal life, family relations, educational endeavors and/or employment.

Sometimes the gambling and problems stemming from the gambling becomes so bad that the non-gambling spouse files for divorce. When this occurs, the non-gambling spouse usually reports that the gambling spouse gambled away a significant amount of community property assets and that there are outstanding gambling debts. However, the non-gambling spouse may not be liable for the outstanding gambling debts.

Generally, all assets and debts incurred during marriage are considered community property. Family Code §2625 makes an exception to the general rule stating that, “All separate debts, including those debts incurred by a spouse during marriage and before the date of separation that were not incurred for the benefit of the community, shall be confirmed without offset to the spouse who incurred the debt.”

This Family Code section provides the court with the ability to assign gambling debts to the gambling spouse. This is one of the few insteances where a court has the discretion to make an equitable division based on fault rather than an equal division of debt.

In the case In re Marriage of Cairo, Wife was able to prove that debt incurred during marriage on credit cards in Husband’s name was for Husband’s gambling. The Trial Court characterized the credit cards in Wife’s name as a community property obligation and the credit cards in Husband’s as his separate property obligation. The Court of Appeal affirmed relying on the predecessor to Family Code §2625, which also stated that debts not incurred for the benefit of the community can be assigned without offset to the spouse who incurred the debt.

On the other hand, if the gambling spouse wins big when gambling with community property assets, then those gambling proceeds could be considered community property assets and equally divided between the parties.

In the case In re Marriage of Shelton, after separation Husband gambled $10,000 of community property monies at a casino in Nevada, won $22,000 and bought Ferrari for $32,000. Husband claimed that $22,000 of the value of the car was his separate property. The Trial Court disagreed and characterized as the car as community property. The Court of Appeal affirmed holding that the character of the gambling proceeds follow the character of their source. In this case the source of the monies used to gamble were community property, therefore, the gambling winnings were also community property. The Court of Appeal rejected Husband’s argument that the winnings were his separate property post-separation earnings because gambling is primarily a game of chance where the skill component is small.

In the case In re Marriage of Wall, Wife used her post-separation earnings (or support payments) to buy an Irish Sweepstakes ticket and won $120,000. Although Husband claimed the winnings were community property, the Trial Court disagreed and awarded the winnings to Wife as her separate property. The Court of Appeal affirmed. Unlike the Shelton case, in this case the source of the monies used to buy the Sweepstakes ticket was Wife’s separate property. Therefore, the Sweepstakes winnings were also her separate property.
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It is not surprising that many California couples decide to adopt pets. But what happens to those pets when the couple decides to seek a divorce? Across the country custody battles over family pets are increasing. Although pets are not technically the couple’s children, they can become a core part of the family that neither spouse is willing to part with. If the couple does have children, the judge is likely to order the pet to stay with the child.One reason these pet custody cases are on the rise is the dissolution of same-sex marriages or domestic partnerships. These legal unions are relatively new and the couples tend to adopt pets in lieu of or in addition to children. Unlike children, pets are a form of property in every state. In the past, pets have been divided up along with the rest of the marital property without distinction. The family courts are changing and beginning to recognize that pets are more like children than furniture. The shift may be resulting from a widespread recognition of pets as part of the family rather than mere possessions. Litigants are now passionate and unashamed to fight for custody of a pet.

When a couple divorces, the best interest of the child guides a judge’s decisions on child custody and visitation. For pets, this is not the case. Since pets are a form of property, the laws regarding pets are generally aimed at benefitting the owner. The court will consider the same factors when deciding who gets custody of the pet as they would in deciding who gets custody of a television set. The court takes into consideration factors such as: whether either spouse owned the property prior to marriage or post separation, how much the property is worth, and any agreement the couple reached about who gets the property.

As California family law stands today, there is no pet visitation provision. The courts simply have the authority to award custody of the pet to one party or the other. If splitting couples wish to split time with their pets they must work out a visitation schedule together. These schedules can be negotiated with the help of lawyers and mediators. Some can be rather elaborate and include long-distance traveling for the pet, a holiday schedule, daycare expense sharing, grooming responsibilities, training, treats, food, medical care and other related decisions. Like parents who share legal custody of a child, some couples agree to share a form of legal custody of a pet. This means that both parties will have the right to make decisions regarding the health, safety, and welfare of the pet including end of life decisions.Another area of family law that has begun to recognize pets as family members is domestic violence. In the past, domestic violence restraining orders could not be issued to protect pets. More recently, this has become a common practice. Under California Family Code section 6320(b), “on a showing of good cause, the court may include in a protective order a grant to the petitioner of the exclusive care, possession, or control of any animal owned…the court may order the respondent to stay away from the animal and forbid the respondent from taking, transferring, encumbering, concealing, molesting, attacking…the animal.” Local community organizations have also reached out to victims of domestic violence and their pets. For example, Rancho Coastal Humane Society offers shelter for the pets of these victims while they escape their abusers and seek shelter themselves. Because abusers tend to threaten harm to the animal as a tool to control their victim, these programs facilitate a victim’s decision to escape and take part of the abuser’s power away.

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