Division of Property

California Court Discusses Domestic Violence Allegations in Divorce Cases

Published on: September 29, 2022 | by Bay Area Family Law Center

Typically, when evaluating requests for spousal support or modifications of existing obligations, the courts will look at each party’s income and needs and the costs of maintaining the child’s standard of living. They are not limited to these factors, though, but may consider other relevant issues as well. For example, as demonstrated in a recent California ruling, they may assess whether either party has engaged in domestic violence. If you have questions about how domestic violence allegations may impact your rights with regard to divorce or spousal support, it is wise to meet with a Bay Area family law attorney as soon as possible.

Procedural Background of the Case

It is alleged that the parties were married for 23 years before the husband filed a petition for dissolution in 2016. The husband was the main income earner during the marriage, and the parties accumulated substantial wealth, including an eight-figure estate. They had four daughters during their marriage. In April 2017, when two of the daughters were still minors, the parties entered into a stipulation in which the husband agreed to pay the wife $45,000 in spousal support and $5,000 in child support each month. At that time, the husband earned over $2.25 million per year.

Reportedly, in February 2018, the husband sought a modification of his support obligation after his bonuses, which made up the majority of his income, were suspended. The court granted the motion and reduced his support obligation to approximately $5,000 per month. In May 2020, the wife moved for an increase in her spousal support to $54,000 per month. The husband opposed the motion and, in doing so, asked the court to consider the wife’s history of domestic violence. In support of his assertions, he submitted declarations from three of his daughters recounting repeated acts of abuse. The court ultimately found that the wife committed numerous severe acts of domestic violence and that it was equitable that she receive no more than necessary to maintain home and hearth. As such, it ordered the husband to pay approximately $4,000 per month. The wife appealed. Continue Reading ›

Epstein & Jeffries Credits and Watts Charges and Their Use in California Divorces

Published on: May 24, 2022 | by Bay Area Family Law Center

Many married couples grapple with debt, and disagreements over money are one of the primary reasons marriages end. In some instances, one party will lack the ability or desire to pay down debts, and the other party will use their separate property to pay community debts while a divorce is pending. In such cases, a court may choose to grant reimbursements or credits via what is referred to as Epstein & Jeffries credits and Watts charges, but they are not required to do so. If you have questions regarding your rights and obligations with regard to the payment of joint debts, it is smart to meet with a California divorce attorney as soon as possible.

Epstein & Jeffries Credits and Their Use in California Divorces

The term Watts Eppstein & Jeffries credits come from a 1979 California case, Marriage of Epstein. In that case, the court ruled that a spouse who pays community debts or expenses using their separate funds after they separate from their spouse is entitled to receive reimbursement for the other party’s share of the debt. For example, if a couple has a mortgage on the marital home, but only one spouse contributed towards the payment of the mortgage after the couple separated, the courts may order reimbursement to the paying spouse.

The California Family Code was later modified to reflect the court’s authority to order such payments. Notably, however, the courts are not required to issue Epstein and Jeffries credits in all cases; for example, they may reject a reimbursement request if the payments in question were made in replacement of support or other court-ordered obligations. Parties seeking such reimbursement must present their claim through a declaration setting forth the balance of the debt on the date of separation, the amount and dates of post-separation payments, the source of such payments, and any documentation supporting the claim. Continue Reading ›

Determining and Transmuting the Character of Property Under California Law

Published on: March 14, 2021 | by Bay Area Family Law Center

California is a community property state, which means that any property acquired by either spouse during a marriage is considered to be owned by each party equally. Either spouse can identify property as separate, though, and it will remain their sole property if they divorce. Certain actions can transmute or modify separate property into community property, though, and anyone with separate property must take care not to take actions that will impair their rights. In 2015, a California appellate court issued a ruling explaining how and when the character of a property is defined and how to determine if transmutation occurred. If you or your spouse own separate property and you are contemplating ending your marriage, it is prudent to speak to a seasoned California divorce attorney about your rights.

Facts of the Case

Reportedly, the husband purchased a home prior to his marriage. By the time the couple married in 1993, the husband had paid off the mortgage. He also had a retirement account that he contributed to prior to getting married, which he stopped paying into at the time of the marriage. The couple lived in the home but after a few years decided to move to a town called Westlake. The husband retained the separate home, however. He made the down payment for the Westlake home from the separate retirement account and took out a mortgage loan in his name only. The loan application stated that the title to the house would be in the husband’s name, and the deed stated it was granted to him and his sole and separate property.

It is alleged that the husband sold his separate home and used the mortgage proceeds to pay for the Westlake home. The wife filed for divorce twelve years later. A prime point of contention was whether the Westlake home was community or separate property or a combination of the two. The court ultimately ruled that it was community property, and the husband appealed. Continue Reading ›

California Court Issues Ruling Regarding Bitcoin Transactions in Divorce Cases

Published on: October 6, 2020 | by Bay Area Family Law Center

Recent changes in technology and currency have not only altered the global economy, but they have also modified settlements and property division in divorce cases. This was demonstrated in a recent California case in which the court found that the husband violated the fiduciary duty he owed his wife as well as her interest in the community estate by failing to disclose information regarding his cryptocurrency investments. If you are in the process of determining whether to end your marriage, it is important to understand how the investments you and your spouse own may be evaluated, and you should consult a knowledgeable California divorce attorney regarding your rights.

Facts of the case

It is reported that in January 2013, the wife filed a petition for divorce and, along with the petition, served her husband with a restraining order that prohibited him from transferring, concealing, or disposing of any property, whether community or separate. In April 2013, the husband made three bitcoin-related transactions. Ultimately, most of his $45,000 were tied up in a bankruptcy action. He eventually recovered a small amount, and in his financial disclosures in February 2014, disclosed ownership of 1,062 bitcoins.

Allegedly, the court found the bitcoins to be community property and divided them equally between the spouses. Only after the wife sought to collect her half of the bitcoins was it disclosed that the remaining coins were tied up in bankruptcy. The value of the bitcoins had increased greatly at that time, and the original investment of $45,000 was now worth $8 million. The wife filed a motion to have half of the value of the bitcoins transferred to her and to grant her attorneys’ fees. The court granted the motion, finding that the husband breached the fiduciary duty he owed his wife. The husband then appealed.

How California Courts Divide Businesses In A Divorce

Published on: December 12, 2019 | by Bay Area Family Law Center

California business owners face a unique set of challenges when they divorce. By law, a divorcing business owner may be required to hand over up to 50% of their interest in a business to their ex. Several factors determine the division of a business during divorce, even in a community property state like California. So to understand who gets what when it comes to business and divorce, here’s what you need to consider.

Is The Business Community or Separate Property?

In simple terms, the assets and property acquired during marriage are community property. While assets and property acquired before or after the marriage are separate property. So, when a spouse or couple acquires or starts a business during the marriage with community resources, courts will consider it to be community property and divide the asset equally between both ex-spouses.

Who Gets What When Accidents Occur During A Divorce?

Published on: December 4, 2019 | by Bay Area Family Law Center

Accidents can happen at any time—house fires, car accidents, worker’s compensation claims, and injuries to life and limb, to name a few. A civil lawsuit or claim may continue for years after the injury. Sometimes civil claims arise while a couple is in the middle of a divorce. Which raises the question: How do California courts handle personal injury claims and insurance proceeds during a divorce?

If an ex-spouse has to file an insurance claim or personal injury lawsuit because of the mishap, it’s not easy to determine which spouse is entitled to a payout or where to turn to figure it out. If you have questions about how the court will divide your accident proceeds, here’s what you need to know about accidents, insurance, and divorce. For purposes of this article, an “Injured Spouse” and a “Personal Injury Award” includes injuries to property, such as houses and vehicles, as well as injuries to life and limb.

Automatic Temporary Restraining Orders Ensure that Upon Service of a Divorce Case, Neither Spouse Is Permitted to Remove or Cancel Their Spouse’s Insurance Policies.

6 Money-Saving Tips That Will Change Your Approach on Deciding Who Gets The House In A California Divorce

Published on: October 8, 2019 | by Bay Area Family Law Center

In California, one of the most common questions that arises when it comes to divorce is, who gets the house? When couples divorce, they often tie deciding who gets to house to child custody, financial arrangements, and negotiations for other marital property. So if the ex-spouses do not agree, things can escalate quickly. And so can the legal bills.

If you and your ex-spouse are trying to decide what to do with your family home, here are some money-saving tips to consider:

Tip #1: Figure Out Who Owns What

Divorce: Completing Your Preliminary Declaration of Disclosure

Published on: February 19, 2019 | by Bay Area Family Law Center

In a divorce proceeding, Family Code 2104 tells us what each party must disclose to the other party in order to advance the divorce case to a settlement conference or a trial:

(1) Each party shall serve on the other party a preliminary declaration of disclosure, executed under penalty of perjury on a form prescribed by the Judicial Council. The commission of perjury on the preliminary declaration of disclosure may be grounds for setting aside the judgment, or any part or parts thereof, pursuant to Chapter 10 (commencing with Section 2120 ), in addition to any and all other remedies, civil or criminal, that otherwise are available under law for the commission of perjury. The preliminary declaration of disclosure shall include all tax returns filed by the declarant within the two years prior to the date that the party served the declaration.

(2) The preliminary declaration of disclosure shall not be filed with the court, except on court order. However, the parties shall file proof of service of the preliminary declaration of disclosure with the court.

California Court Rules an Interspousal Transfer Deed Changed Nature of Property

Published on: December 21, 2018 | by Bay Area Family Law Center

Under California law, any property obtained during a marriage is presumed to be community property. The California Family Code allows for parties to change community property to separate property in certain circumstances, however.

Recently, an appeals court in California held that an interspousal transfer grant deed contained the necessary language to constitute a transmutation of the character of marital property. If you intend to seek a divorce, you should meet with an experienced California divorce attorney to assess the nature of any property obtained by you or your spouse during the marriage.

Ownership of the Property in Question

The husband and wife married one another in January 2010. In May 2010, the wife reportedly purchased a condo. The deed from the seller allegedly transferred the condo to the wife as “a married woman as her sole and separate property.” That same month, the husband signed an interspousal transfer grant deed (ITGD) granting the condo to the wife as her sole and separate property. The money used for the down payment on the condo was from the husband’s separate bank account. The husband filed for divorce in August 2011. The wife claimed the condo was her separate property based on the ITGD. The husband insisted the condo should be his separate property, however, because he paid for the down payment.