The Los Angeles Times reports on a whistle-blower who tells how a private detective arranged for men to be arrested for drunk driving at the behest of their ex-wives and their lawyers — and that entrapment using decoys was only one of many alleged misdeeds. Read full article
David Dutcher says his 2008 arrest on suspicion of drunk driving was a setup orchestrated by a private detective who is the subject of a state and federal criminal investigation. (Michael Macor, The Chronicle / October 17, 2011)
Los Angeles Family Law Attorney
Monday, October 17, 2011
Los Angeles Times - MCourt Divorce
Frank and Jamie McCourt confirmed in a joint statement Monday that they have settled their divorce, as The Times reported earlier in the day. The McCourts disclosed no terms other than that Jamie McCourt would withdraw her Bankruptcy Court opposition to the Dodgers' proposed sale of television rights and would now support that sale. Major League Baseball and Fox Sports remain opposed. Read article
Are community property laws taken into account in determining adjusted gross income (or modified adjusted gross income) for purposes of the dependent
According to a recent IRS publication:Yes. Community property laws must be taken into account in determining the adjusted gross income (or modified adjusted gross income) amounts in section 21(a) (dependent care credit), section 24(b) (child tax credit), section 32(a) (earned income credit), and section 36A(b) (making work pay credit).
Los Angeles Family Law Attorney
Saturday, October 08, 2011
Are registered domestic partners who reported income without regard to community property laws required to amend their pre-2010 returns to each report
According to a recent IRS publication:Registered domestic partners who reported community income without regard to community property laws for a taxable year beginning before 2010 are generally not required to amend those returns to report half of the community income. The following rules apply for taxable years prior to 2010:
Registered domestic partners in
In
In
In all cases, if one of the partners amends his or her return to report half of the community income, the other partner must report the other half.
Los Angeles Family Law Attorney
If a registered domestic partner adopts the child of his or her partner as a second parent or co-parent, may the adopting parent claim the adoption cr
According to a recent IRS publication:The adopting parent may claim an adoption credit to the extent provided under § 36C. Section 36C(d)(1)(C) does not allow taxpayers to claim an adoption credit for expenses incurred in adopting the child of the taxpayer’s spouse. However, the limitation in section 36C(d)(1)(C) does not apply to adoptions by registered domestic partners because registered domestic partners are not spouses as defined by federal law.
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
If two registered domestic partners adopt a child together, can one or both of the partners qualify for the adoption credit?
According to a recent IRS publication:Each registered domestic partner may qualify to claim the adoption credit on the amount of the qualified adoption expenses paid or incurred for the adoption. The partners may not both claim credit for the same qualified adoption expenses, and neither partner may claim more than the amount of expenses that he or she paid or incurred. The adoption credit is limited to $13,170 per child in 2010. Thus, if two registered domestic partners each paid qualified adoption expenses to adopt the same child, and the total of those expenses exceeds $13,170, the maximum credit available for the adoption is $13,170. The partners may allocate this maximum between them in any way they agree, but the amount allocated to a partner may not be more than the amount of expenses he or she paid or incurred. The same rules generally apply in the case of a special needs adoption. The total credit for such an adoption is limited to $13,170, but the amount that each partner may claim is not limited by the amount of expenses paid or incurred.
Los Angeles Family Law Attorney
Thursday, October 06, 2011
Are community property laws taken into account in determining earned income for purposes of the dependent care credit, the refundable portion of the c
According to a recent IRS publication:No. The federal tax laws governing these credits specifically provide that earned income is computed without regard to community property laws in determining the earned income amounts described in section 21(d) (dependent care credit), section 24(d) (the refundable portion of the child tax credit), section 32(a) (earned income credit), and section 36A(d) (making work pay credit).
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
Are registered domestic partners each entitled to take credit for half of the total estimated tax payments paid by the partners?
According to a recent IRS publication: No. Unlike withholding credits, which are allowed to the person who is taxed on the income from which the tax is withheld, a registered domestic partner can take credit only for the estimated tax payments that he or she made.
Los Angeles Family Law Attorney
Wednesday, October 05, 2011
Are registered domestic partners each entitled to half of the credits for income tax withholding from the combined wages of the registered domestic pa
According to a recent IRS publication: Yes. Because each registered domestic partner is taxed on half the combined community income earned by the partners, each is entitled to a credit for half of the income tax withheld on the combined wages.
Los Angeles Family Law Attorney
Money and Divorce
It can be hard to deal with divorce from an entirely rational viewpoint, but letting your emotions get the better of you can hurt your wallet more than your pride.
Your best option is to be as honest as possible – don’t try to hide your assets – no matter how badly you’d hate to share them with your ex – as this will only take more time and money to sort out and is TOTALLY ILLEGAL.
Failing to agree over the division of family assets (such as the family home, a business and pension funds), child custody and support and even personal items like CD collections or pets can also cause fees to skyrocket, especially if both parties reach a stalemate over who gets to keep Harry the hamster
How to negotiate:
Collaborative law is growing in popularity. Rather than attorneys exchanging a series of angry (and expensive) letters as they negotiate the terms of the settlement and ending up in court if they can't agree, instead both parties sit down with their respective attorneys to, if possible, work out the terms of the settlement. This only works if both sides are prepared to be constructive and, again, make full-disclosure of their assets. It is an “all cards on the table” exercise but, if successful, can reduce the legal costs of divorce considerably.
Collaborative law is not dissimilar to mediation, although this has proven unpopular with couples as there is usually only one mediator involved who can give advice to both parties, meaning one often feels short-changed at the end of the process.
In collaborative law, your attorney is present during the meetings and if a settlement can’t be reached, the same attorney can’t go on to represent you in court, thus eliminating any incentive to draw out the process in hope of a larger fee.
Protect your assets:
If you are experiencing an emotional or bitter divorce then make sure, if you do choose to get married again, that you’re prepared for the worst. A prenup, is a worthwhile consideration particularly where one party is bringing significant assets into the marriage. It is intended that the prenup would provide the couple with a framework for dividing the assets on a divorce. (read more on pre-nups) Finally, no matter how betrayed you feel, or how bitter the divorce, it is almost always best to grin and bear the pain even after the proceedings are over rather than harbour a grudge into eternity.
The benefit of couples dealing with matters amicably is that this will hopefully enable them to communicate sensibly with their former spouse in the future. Many divorcing couples seem to forget that, following the resolution of the proceedings between them, that they may still need to have contact with their former spouse, particularly where children are involved. (read more on child custody) Generally where the couple have conducted the proceedings amicably, there seems to be a better prospect of them avoiding further disputes with their former spouse. (read more on hidden assets)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
Your best option is to be as honest as possible – don’t try to hide your assets – no matter how badly you’d hate to share them with your ex – as this will only take more time and money to sort out and is TOTALLY ILLEGAL.
Failing to agree over the division of family assets (such as the family home, a business and pension funds), child custody and support and even personal items like CD collections or pets can also cause fees to skyrocket, especially if both parties reach a stalemate over who gets to keep Harry the hamster
How to negotiate:
Collaborative law is growing in popularity. Rather than attorneys exchanging a series of angry (and expensive) letters as they negotiate the terms of the settlement and ending up in court if they can't agree, instead both parties sit down with their respective attorneys to, if possible, work out the terms of the settlement. This only works if both sides are prepared to be constructive and, again, make full-disclosure of their assets. It is an “all cards on the table” exercise but, if successful, can reduce the legal costs of divorce considerably.
Collaborative law is not dissimilar to mediation, although this has proven unpopular with couples as there is usually only one mediator involved who can give advice to both parties, meaning one often feels short-changed at the end of the process.
In collaborative law, your attorney is present during the meetings and if a settlement can’t be reached, the same attorney can’t go on to represent you in court, thus eliminating any incentive to draw out the process in hope of a larger fee.
Protect your assets:
If you are experiencing an emotional or bitter divorce then make sure, if you do choose to get married again, that you’re prepared for the worst. A prenup, is a worthwhile consideration particularly where one party is bringing significant assets into the marriage. It is intended that the prenup would provide the couple with a framework for dividing the assets on a divorce. (read more on pre-nups) Finally, no matter how betrayed you feel, or how bitter the divorce, it is almost always best to grin and bear the pain even after the proceedings are over rather than harbour a grudge into eternity.
The benefit of couples dealing with matters amicably is that this will hopefully enable them to communicate sensibly with their former spouse in the future. Many divorcing couples seem to forget that, following the resolution of the proceedings between them, that they may still need to have contact with their former spouse, particularly where children are involved. (read more on child custody) Generally where the couple have conducted the proceedings amicably, there seems to be a better prospect of them avoiding further disputes with their former spouse. (read more on hidden assets)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
Tuesday, October 04, 2011
How should registered domestic partners report Schedule C income that is community property?
According to a recent IRS publication: Half of the income, deductions, and net earnings of a business operated by a registered domestic partner must be reported by each registered domestic partner on a Schedule C (or Schedule C-EZ). In addition, each registered domestic partner owes self-employment tax on half of the net earnings of the business. Although the employment tax rules prohibit spouses from treating net earnings as community income (section 1402(a)(5)), registered domestic partners are not spouses as defined by federal law and this provision does not apply to them.
Los Angeles Family Law Attorney
Retirement Plans FAQs
1. Types Of Retirement Plans
2. Earning Retirement Benefits
3. Plan Information To Review
4. Payment Of Benefits
5. Taking Your Retirement Benefit With You
6. Your Benefit During A Plan Termination Or Company Merger
7. Divorce - Potential Claims Against Your Benefit
In general, your retirement plan is safe from claims by other people. Creditors to whom you owe money cannot make a claim against funds that you have in a retirement plan. For example, if you leave your employer and transfer your 401(k) account into an individual retirement account (IRA), creditors generally cannot get access to those IRA funds even if you declare bankruptcy.Federal law does make an exception for family support and the division of property at divorce. A state court can award part or all of a participant's retirement benefit to the spouse, former spouse, child, or other dependent. The recipient named in the order is called the alternate payee. The court issues a specific court order, called a domestic relations order, which can be in the form of a state court judgment, decree or order, or court approval of a property settlement agreement. The order must relate to child support, alimony, or marital property rights, and must be made under state domestic relations law. The plan administrator determines if the order is a qualified domestic relations order (QDRO) under the plan's procedures and then notifies the participant and the alternate payee. If the participant is still employed, a QDRO can require payment to the alternate payee to begin on or after the participant's earliest possible retirement age available under the plan. These rules apply to both defined benefit and defined contribution plans. (see QDROs)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
2. Earning Retirement Benefits
3. Plan Information To Review
4. Payment Of Benefits
5. Taking Your Retirement Benefit With You
6. Your Benefit During A Plan Termination Or Company Merger
7. Divorce - Potential Claims Against Your Benefit
In general, your retirement plan is safe from claims by other people. Creditors to whom you owe money cannot make a claim against funds that you have in a retirement plan. For example, if you leave your employer and transfer your 401(k) account into an individual retirement account (IRA), creditors generally cannot get access to those IRA funds even if you declare bankruptcy.Federal law does make an exception for family support and the division of property at divorce. A state court can award part or all of a participant's retirement benefit to the spouse, former spouse, child, or other dependent. The recipient named in the order is called the alternate payee. The court issues a specific court order, called a domestic relations order, which can be in the form of a state court judgment, decree or order, or court approval of a property settlement agreement. The order must relate to child support, alimony, or marital property rights, and must be made under state domestic relations law. The plan administrator determines if the order is a qualified domestic relations order (QDRO) under the plan's procedures and then notifies the participant and the alternate payee. If the participant is still employed, a QDRO can require payment to the alternate payee to begin on or after the participant's earliest possible retirement age available under the plan. These rules apply to both defined benefit and defined contribution plans. (see QDROs)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
Monday, October 03, 2011
Is a registered domestic partner the stepparent of his or her partner’s child?
According to an IRS publication: If a registered domestic partner is the stepparent of his or her partner’s child under the laws of the state in which the partners reside, then the registered domestic partner is the stepparent of the child for federal income tax purposes.
Divorce and hard times
Gregory Rodriguez, July 13, 2009 Los Angeles Times
Economic woes often cause marital splits, right? Well, not so fast.
Can't stand your boring husband? Thinking of calling it quits? Well, you should have mustered the nerve to leave him well before this economic crisis. Now you might not be able to afford to live without him, literally.
It's a well-known fact that financial woes are the biggest cause of marital spats. With the economy the way it is, you'd expect lots of husbands and wives to be at each other's throats. But the conventional wisdom is wrong. This recession is so bad that you can count divorce lawyers among those professions that have taken a hit.
That's good news, right? People are now forced to stay together and work things out. Well, not if history tells us anything. The Depression also saw a decline in the divorce rate, but, according to marriage historian Stephanie Coontz, incidents of domestic violence and outright family desertion went up.
In any case, despite the fact that divorce can cause all sorts of emotional and financial turmoil, its statistical decline isn't as positive a social indicator as one might think. As economist David Friedman has written, divorce is actually a reflection of "an increase in the range of choice available to individuals," and a high divorce rate and the general weakening of marriage "are bad things only to the extent that they reflect a failure of our institutions and expectations to adjust completely to new circumstances."
In other words, in more traditional days, in which social changes occurred more slowly, we all shared a general idea as to what marriage was and how it functioned. From an economic standpoint, we all understood how the marital division of labor worked. But in a rapidly changing society, it's harder to figure out what kind of arrangement we should make with our spouses. Such changes as the entrance of large numbers of women into the workplace and the mechanization or outsourcing of household duties (from washing clothes to curing bacon) undermined that tradition.
As the basic marriage deal has shifted, our notions and ideals haven't shifted with it, and the disconnect explains the astronomical divorce rate in contemporary America. We haven't figured out a new marriage model that takes into account the greater range of choices for both women and men.
This fits right into the fact that we're divorcing less in hard times. In the context of this recession, we have fewer choices, and fewer choices means we're back to a good fit with the marriage model of old. Still -- and a little paradoxically -- the fact that there are untraditional marriages may also be helping husbands and wives withstand some of the emotional and financial stress of economic hard times. During the Depression, the ego blow to a man who lost his job caused marital problems. Today, if a man loses his job -- and his wife is the breadwinner -- it's less likely to create as much unhappiness.
If it's distasteful to you to look at marriage in economic terms, then it might be easier to consider the economics of divorce. Not only are there attorney's fees to be paid, but the value of the two biggest assets of most marriages -- a home and a retirement plan -- has diminished dramatically. Faced with the prospect of halving their shrunken assets, many couples are deciding to stick it out a while.
A recent survey conducted by the Institute of Divorce Financial Analysts -- who knew? -- found that 68% of its members "have seen clients who could not afford to get divorced because of recession-related financial problems."
So even as most of us are looking forward to happier days of an economic recovery, there must be a number of Americans who are waiting patiently to be able to afford to experience the pain and suffering of divorce. You've heard of the pent-up desire and aspiration that are released after times of war? That's why we get such phenomena as baby booms. When this economic recovery finally arrives, prepare yourselves for a boom of an entirely different sort.
Write to George Rodriguez: grodriguez@latimescolumnists.com
Read the whole article here
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
Economic woes often cause marital splits, right? Well, not so fast.
Can't stand your boring husband? Thinking of calling it quits? Well, you should have mustered the nerve to leave him well before this economic crisis. Now you might not be able to afford to live without him, literally.
It's a well-known fact that financial woes are the biggest cause of marital spats. With the economy the way it is, you'd expect lots of husbands and wives to be at each other's throats. But the conventional wisdom is wrong. This recession is so bad that you can count divorce lawyers among those professions that have taken a hit.
That's good news, right? People are now forced to stay together and work things out. Well, not if history tells us anything. The Depression also saw a decline in the divorce rate, but, according to marriage historian Stephanie Coontz, incidents of domestic violence and outright family desertion went up.
In any case, despite the fact that divorce can cause all sorts of emotional and financial turmoil, its statistical decline isn't as positive a social indicator as one might think. As economist David Friedman has written, divorce is actually a reflection of "an increase in the range of choice available to individuals," and a high divorce rate and the general weakening of marriage "are bad things only to the extent that they reflect a failure of our institutions and expectations to adjust completely to new circumstances."
In other words, in more traditional days, in which social changes occurred more slowly, we all shared a general idea as to what marriage was and how it functioned. From an economic standpoint, we all understood how the marital division of labor worked. But in a rapidly changing society, it's harder to figure out what kind of arrangement we should make with our spouses. Such changes as the entrance of large numbers of women into the workplace and the mechanization or outsourcing of household duties (from washing clothes to curing bacon) undermined that tradition.
As the basic marriage deal has shifted, our notions and ideals haven't shifted with it, and the disconnect explains the astronomical divorce rate in contemporary America. We haven't figured out a new marriage model that takes into account the greater range of choices for both women and men.
This fits right into the fact that we're divorcing less in hard times. In the context of this recession, we have fewer choices, and fewer choices means we're back to a good fit with the marriage model of old. Still -- and a little paradoxically -- the fact that there are untraditional marriages may also be helping husbands and wives withstand some of the emotional and financial stress of economic hard times. During the Depression, the ego blow to a man who lost his job caused marital problems. Today, if a man loses his job -- and his wife is the breadwinner -- it's less likely to create as much unhappiness.
If it's distasteful to you to look at marriage in economic terms, then it might be easier to consider the economics of divorce. Not only are there attorney's fees to be paid, but the value of the two biggest assets of most marriages -- a home and a retirement plan -- has diminished dramatically. Faced with the prospect of halving their shrunken assets, many couples are deciding to stick it out a while.
A recent survey conducted by the Institute of Divorce Financial Analysts -- who knew? -- found that 68% of its members "have seen clients who could not afford to get divorced because of recession-related financial problems."
So even as most of us are looking forward to happier days of an economic recovery, there must be a number of Americans who are waiting patiently to be able to afford to experience the pain and suffering of divorce. You've heard of the pent-up desire and aspiration that are released after times of war? That's why we get such phenomena as baby booms. When this economic recovery finally arrives, prepare yourselves for a boom of an entirely different sort.
Write to George Rodriguez: grodriguez@latimescolumnists.com
Read the whole article here
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
Sunday, October 02, 2011
If a child is a qualifying child under section 152(c) of both parents who are registered domestic partners, which parent may claim the child as a depe
According to an IRS: If a child is a qualifying child under section 152(c) of both parents who are registered domestic partners, either parent, but not both, may claim a dependency deduction for the qualifying child. If both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time. If the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.
Family Home in Divorce Part IV
By Warren R. Shiell
The following information is specific to California.
How do we determine the value of the house?
If you decide to either to buy out the other spouse’s community interest in the house or to exchange it for another asset, you will need to know the equity and financial value of the house. The equity in the house is equal to the house’s fair market value less any debts connected to the house such as mortgages and liens. The fair market value of the house is usually assessed by a certified real estate appraiser. The parties may agree to jointly retain an appraiser to keep down costs. A certified appraiser who knows the local market may provide a more accurate appraisal than the local realtor. Sometimes couples place the house on the market to see of anyone makes any offers.
It is important to note that if the Court is asked to calculate each spouse’s share in the house it will only consider the equity value. The court will not consider other costs that might reduce future sale proceeds such as closing costs, sales commissions and tax bills because those costs are not considered “immediate and specific.” FN5. Therefore, if the fair market value of the house is $500,000 and the balance of all outstanding mortgages is $200,000, the equity value of the house is $300,000. If this is all community interest then each spouse will be entitled to $150,000.
If you are trying to negotiate a settlement, you may wish to argue that the financial value of the house should be considered after taking into account taxes after sale and closing costs. This is important because once you get divorced and awarded the house you are only entitled to a $250,000 exemption on any gain. Therefore what may look like a fair bargain may not seem so fair after you factor in taxes. Consider this example: the equity value of the family home is $500,000 and the equity value of stocks and shares is also $500,000. Is this a fair exchange if the husband keeps the stocks and shares in exchange for the house? It depends. Assume that the shares have a high tax basis so that if they are sold the husband is liable for $100,000 of gain. The wife on the other hand is liable for $250,000 gain if she ever decides to sell the house. Is this still a fair exchange?
(read more on our website)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
The following information is specific to California.
How do we determine the value of the house?
If you decide to either to buy out the other spouse’s community interest in the house or to exchange it for another asset, you will need to know the equity and financial value of the house. The equity in the house is equal to the house’s fair market value less any debts connected to the house such as mortgages and liens. The fair market value of the house is usually assessed by a certified real estate appraiser. The parties may agree to jointly retain an appraiser to keep down costs. A certified appraiser who knows the local market may provide a more accurate appraisal than the local realtor. Sometimes couples place the house on the market to see of anyone makes any offers.
It is important to note that if the Court is asked to calculate each spouse’s share in the house it will only consider the equity value. The court will not consider other costs that might reduce future sale proceeds such as closing costs, sales commissions and tax bills because those costs are not considered “immediate and specific.” FN5. Therefore, if the fair market value of the house is $500,000 and the balance of all outstanding mortgages is $200,000, the equity value of the house is $300,000. If this is all community interest then each spouse will be entitled to $150,000.
If you are trying to negotiate a settlement, you may wish to argue that the financial value of the house should be considered after taking into account taxes after sale and closing costs. This is important because once you get divorced and awarded the house you are only entitled to a $250,000 exemption on any gain. Therefore what may look like a fair bargain may not seem so fair after you factor in taxes. Consider this example: the equity value of the family home is $500,000 and the equity value of stocks and shares is also $500,000. Is this a fair exchange if the husband keeps the stocks and shares in exchange for the house? It depends. Assume that the shares have a high tax basis so that if they are sold the husband is liable for $100,000 of gain. The wife on the other hand is liable for $250,000 gain if she ever decides to sell the house. Is this still a fair exchange?
(read more on our website)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
Saturday, October 01, 2011
Can a registered domestic partner qualify to file his or her tax return using head-of-household filing status?
According to recent IRS publication: Generally, to qualify as a head-of-household, a taxpayer must provide more than half the cost of maintaining his or her household during the taxable year, and that household must be the principal place of abode of the taxpayer’s dependent for more than half of the taxable year. If registered domestic partners pay all of the costs of maintaining the household from community funds, each partner is considered to have incurred half the cost and neither can qualify as head of household. However, if one of the partners pays more than half by contributing separate funds, that partner may qualify as head-of-household.
Los Angeles Divorce AttorneyLos Angeles Family Law Attorney
Family Home in Divorce Part III
By Warren R. Shiell
The following information is specific to California.
What are the options for dividing the house?
There are three options if you are trying to reach a settlement:
(a) One spouse buys out the community interest share of the other spouse;
(b) The house is sold and the proceeds are divided; and
(c) The house remains in joint names for a limited period of time and is then sold to the other spouse or is put on the market.
During economic downturns when house prices are depressed couples increasingly turn to the last option.
But there is a catch. If you litigate, option (c) is called a deferred sale order (or a “Duke Order”) and the Court can only order a deferred sale in very limited circumstances where it is in lieu of child support and economically feasible. FN3.
Should I keep the house or exchange it for other assets?
It is very important to consider the financial as well as the legal realities of electing to keep the house. It is used to be very common where the husband owns a business to suggest that the wife keeps the house and the husband keeps the business. Before even getting into whether this is a fair exchange of assets of equal value, one has to consider whether the spouse who wants to keep the house can afford to do so. Often the spouse who has primary custody of children wants to stay in the house for the sake of the children but this may not be economically possible. The spouse who wants to stay in the home should sit down and work out a budget. They should estimate housing costs and compare this with their estimate earnings from employment, support and other sources. Housing costs are more than just mortgage and property taxes and one should factor in utilities, repairs, insurance, fees etc. You may also be entitled to mortgage interest deduction relief lowering your costs. If you can still afford to stay in the house, only then should you consider this option.
(read more on our website)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
The following information is specific to California.
What are the options for dividing the house?
There are three options if you are trying to reach a settlement:
(a) One spouse buys out the community interest share of the other spouse;
(b) The house is sold and the proceeds are divided; and
(c) The house remains in joint names for a limited period of time and is then sold to the other spouse or is put on the market.
During economic downturns when house prices are depressed couples increasingly turn to the last option.
But there is a catch. If you litigate, option (c) is called a deferred sale order (or a “Duke Order”) and the Court can only order a deferred sale in very limited circumstances where it is in lieu of child support and economically feasible. FN3.
Should I keep the house or exchange it for other assets?
It is very important to consider the financial as well as the legal realities of electing to keep the house. It is used to be very common where the husband owns a business to suggest that the wife keeps the house and the husband keeps the business. Before even getting into whether this is a fair exchange of assets of equal value, one has to consider whether the spouse who wants to keep the house can afford to do so. Often the spouse who has primary custody of children wants to stay in the house for the sake of the children but this may not be economically possible. The spouse who wants to stay in the home should sit down and work out a budget. They should estimate housing costs and compare this with their estimate earnings from employment, support and other sources. Housing costs are more than just mortgage and property taxes and one should factor in utilities, repairs, insurance, fees etc. You may also be entitled to mortgage interest deduction relief lowering your costs. If you can still afford to stay in the house, only then should you consider this option.
(read more on our website)
© 2011 Warren R. Shiell. Warren R Shiell is a Los Angeles Divorce and Family Law attorney. All rights reserved. The information contained in this blog/website is an "Advertisement." It is for informational purposes only and shall not constitute legal advice. Nothing in this Website shall be deemed to create an Attorney-Client relationship. An Attorney-Client relationship shall only be created when this office agrees to represent a Client and a Client signs a written retainer agreement.
For more information visit www.la-familylaw.com
Contact a Los Angeles Divorce Attorney at Law Offices of Warren R. Shiell
Call for a free consultation now 310.247.9913.
Divorce and Money
Los Angeles Family Law Attorney
Divorce Lawyers|Attorneys Los Angeles, Beverly Hills
California Prenuptial, Prenups
Subscribe to:
Posts (Atom)