The Top 20 Most Expensive Divorces of All Time

                Divorce can be a trying, frustrating and expensive process for anyone. Just how expensive a divorce is may depend on the assets being divided. Here are the 20 largest divorce settlements:

20. Steven Spielberg and Amy Irving: $100 million

A California judge refused to recognize the couples prenuptial agreement scrawled on a napkin and awarded Irving $100 million after the four years of marriage in 1989, according to Forbes.

Spielberg and Irving dated from 1976 to 1979 when she broke up with him to date Willie Nelson. The two got back together and married in 1985.

19. Greg Norman and Laura Andrassy: $103 million

After 25 years of marriage, the Australian golfer split from his wife, before marrying former #1 ranked tennis player Chris Evert. His marriage to Evert only lasted 15 months; he moved on to marry his interior designer Kirsten Kutner in November 2010. Norman, known as “The Shark”, has become an entrepreneur with ventures in boating, wines, among others.

18. Tiger Woods and Elin Nordegren: $110 million

From the moment Woods crashed his Escalade into the tree outside his Florida home in 2009, it was impossible to ignore the events leading up to his divorce after the couple’s six years of marriage.

The New York Daily News reported that Elin received $110 million in the divorce.

17. Harrison Ford and Melissa Mathison: $118 million

Hollywood icon Harrison Ford was married to Apocalypse Now screenwriter Melissa Mathison for 18 years. A year after his separation, he began dating Ally McBeal’s Calista Flockhart. They married in June 2010. His continued box office success has helped him recover from the sizable payment made to Mathison.

16. Frank and Jamie McCourt: $130 million

In what became known as the “Dodgers Divorce,” former Los Angeles Dodgers owner and chairman Frank McCourt gave ex-wife Jamie $130 million, and Jamie relinquished her ownership stake in the team, according to the Los Angeles Times.

The couple, who had been married for 30 years, split in 2009.

15. Neil Diamond and Marcia Murphey: $150 million

The American singer-songwriter divorced his wife after 25 years of marriage. TV production assistant Marcia Murphey left with half of his $300 million fortune. This was Diamond’s second marriage and he said that Murphey was “worth every penny”. The singer later married his manager, Katie McNeil, on April 12, 2012.

14. Samathur Li Kin-kan and Florence Tsang Chiu-wing: $154 million

Samathur Li Kin-kan, a Hong Kong property tycoon and billionaire heir, was ordered by a court to pay $154 million to his ex-wife, Florence Tsang Chiu-wing, according to UPI.

The couple were married in 2000 and divorced in 2008. It’s believed to be the biggest divorce settlement ever filed in Asia.

13. Boris Berezovsky and Galina Besharova: Estimated $163 million

Berezovksy, a Russian oligarch who made his fortune in the auto and oil industries, reached a settlement with his former wife in 2011. The couple had been estranged for 16 of their 18 years of marriage, according to The Guardian.

While no final sum has been officially reported, it’s understood that the settlement was more than $163 million, The Guardian reported at the time. And The Telegraph reports that the settlement could have been as high as $359 million.

12. Michael and Maya Polsky: $184 million

In 2007, after the Polskys were married for 31 years, Maya filed for divorce. The couple married in the Ukraine in 1975 and came to the United States a year later.

Polsky, the founder, president and CEO of Invenergy LLC, gave half of his estate to Maya in the settlement, according to the AP.

11. Charles Edgar and Marlene Fipke: $200 million

Canadian prospector and diamond magnate Charles Edgar Fipke divorced in 2000. Marlene’s settlement included a 20% share of the mine. Charles Fipke currently breeds thoroughbred racehorses.

10. Michael and Juanita Jordan: in excess of $260 million

Basketball legend Michael Jordan married Juanita in 1989. She filed for divorce in 2002, before reconciling. Unfortunately, divorce papers were filed again in 2006. In 2011, Jordan proposed to Cuban-model Yvette Prieto. Forbes Magazine in 2010 listed Michael Jordan as the 20^th most powerful celebrity in the world. Along with his numerous endorsement deals, Jordan is currently the majority owner of the NBA’s Charlotte Bobcats.

9. Roman and Irina Abramovich: $300 million

Russian oligarch Abramovich married Irina in 1991, and the couple had five children according to ABC News.

The couple, married for 16 years, tied the knot in Russia before Abramovich secured the majority of his wealth. They divorced following growing speculation of Roman dating 24-year-old model, Daria Zhukova, who had Abramovich’s sixth child in 2009.

8. Robert and Sheila Johnson: $400 million

Robert L. and Sheila Johnson built their fortune together over 33 years of marriage from 1969-2002 with BET, which Robert Johnson founded in 1980. BET sold to Viacom for $3 billion, according to Black Enterprise.

Following the divorce, Shelia Johnson married Arlington County Circuit Court Chief Judge William T. Newman, who presided over her divorce, according to The Daily Beast.

7. Mel and Robyn Gibson: $425 million

Mel Gibson accrued his fortune through his success in Hollywood. His wife Robyn had been a part of that success for 26 years. The Lethal Weapon actor never signed a prenuptial agreement and under California Law, Robyn was awarded half of his estimated $850 million wealth. The controversial actor has since had a very toxic relationship with Russian pianist Oksana Grigorieva.

6. Craig and Wendy McCaw: $460 million plus

After meeting in Stanford University, the couple married and went on to start a cable TV company (which sold for $755 million) and built and sold a cellphone company to AT&T for $12 billion. Wendy used a small portion of her settlement money to help bring the killer whale Keiko of “Free Willy” fame back to the wild. Craig McCaw later married the former United States Ambassador to Austria, Susan Rasinski. McCaw is also famous for buying the most expensive car ever sold: a 1962 Ferrari 250 GTO, originally built for Sir Stirling Moss. He paid $35 million for it.

5. Stephen and Elaine Wynn: $740 million

Stephen and Elaine Wynn really tried to make things work. Their marriage saga started in 1963, when the college sweethearts tied the knot. Twenty years later, in 1986, the couple divorced and remarried just five years later, the AP reported.

But Stephen and Elaine just weren’t meant to be and got divorced again in 2009. Under the settlement, she reportedly received $741 million in company stock.

4. Adnan and Soraya Khashoggi: $850 million

Soraya, formerly Sandra, sued the Saudi businessman for $2.54 billion in the divorce. Ultimately, she walked away with $850 million. Adnan had made his money buying and selling arms for the Saudi Royal family. He later created Triad, based in the tax exempt Switzerland, which owns banks, hotels and real estate around the world. The former richest man in the world went on to marry his second wife Lamia (formerly Laura Biancolini before converting to Islam).

3. Bernie and Slavia Ecclestone: $1 – 1.2 billion

The president and CEO of Formula One was married to his second wife Slavia for 24 years. Despite their 2009 divorce, the Forbes World’s Billionaires List of 2011 ranked Ecclestone as the 4^th richest person in the UK with an estimated fortune of $4.2 billion. He later married Fabiana Flosi in August 2012.

2. Rupert and Anna Murdoch: $1.7 billion

The Australian media mogul is the founder, Chairman and CEO of global media holding company News Corporation. He married his second wife Anna, a Scottish-born journalist, in 1967. They divorced in June 1999. 17 days later, he married Wendi Deng. In 2011, Forbes estimated Murdoch’s wealth at $8.3 billion.

1. Alec and Jocelyn Wildenstein: $2.5 billion

Alec Wildenstein, a family member of wealthy art dealers, met Jocelyn while in their 30’s. Their divorce was due to Alec’s infidelity and Jocelyn’s love for plastic surgery. Jocelyn is rumored to have spent $4 million in plastic surgery to look more “cat-like” because of Alec’s love for big cats.  The divorce judge stipulated that Jocelyn could not use her alimony payments for further cosmetic surgery. She received $2.5 billion in the settlement and $100 million each year for 13 years.

While these divorce settlements are not typical, the issues involved are. Whether dividing billions of dollars in assets, or hundreds of thousands of dollars in debt, important issues of valuation, characterization and division need to be addressed. There may or may not be issues of child or spousal support to consider and the guidance of an experienced family law attorney is strongly recommended.

While no former clients of our firm appear on the list above, we have extensive experience dealing with the valuation, characterization and division of marital assets involving marital estates both large and small. For a free 1 hour consultation on these issues, please contact The Law Office of Matthew J. Rudy.

Read more on Wikipedia and http://www.thisismoney.co.uk

How to Handle Halloween Visitation

The month of October marks the unofficial beginning of the holiday season. Halloween is the first of these holidays and is one that might easily be overlooked in a custody or visitation schedule because of its relative importance in contrast to Thanksgiving or Christmas. Many parents and children, however, view Halloween as an important holiday.  If you are a newly divorced parent, the next 120 days are going to test your patience and communication skills with your ex-spouse. Halloween is an opportunity for a parent who is recently divorced or going through the divorce process to work to improve his or her relationship with both the other parent and their children.

Communication Is Key

With children under the age of 12, elementary schools generally have a lot of planned Halloween activities during and after school that your child will be attending. If you are in a joint custody schedule it is important to communicate with the other parent with regards to any upcoming school functions and emails that you receive from the teacher. There is nothing more embarrassing for your child than when he or she goes to class empty-handed, especially when the classroom has a planned activity. Send an email, voice mail or have face-to-face communication to let each other know how important it is not to let your child feel different about having two households. Often your child’s backpack is not checked for fliers from school. Keep an eye on what your child brings home starting with this holiday.

Costume Picking

Most schools have dress codes that are enforced on Halloween and some have even banned dressing up all together on Halloween. Many schools have nixed the traditional costume march because of the nature of some of the costumes: some are too violent or too provocative. As a co-parent, both parents need to unite and be good examples of what is acceptable. One parent allowing his or her child to wear an inappropriate costume will only cause more friction between spouses and can set a bad parenting example with lasting effects.

Splitting Time Trick or Treating

Most divorce decrees do not address the custody schedule on Halloween, so it is up to the parents to decide what is best. Always keep the child’s best interests in mind rather than your own. Make agreements with your ex-spouse prior to Halloween to avoid conflict closer to the actual day of Halloween and be sensitive to your child’s wishes with regard to the holiday. If your child wants to trick or treat with neighbors and familiar faces, by all means make that a priority. If your ex-spouse is residing in that neighborhood, make it a point to stay classy and offer the opportunity to walk with your child together or separately. Your child will thank you in the long run (kids remember everything). If you are sharing the experience together, don’t bring a boyfriend or girlfriend, and don’t talk about money or other disagreements.

182 Days

Look at that number above and think about it for a moment. 182 days is all the time you get to spend with your child under an equal custody and visitation schedule in a calendar year. That means you only get to see so many birthdays and holidays together with your child. You need to take advantage of this time and make your memories count. The best way to stretch a few more precious days on your joint custody calendar is to create a positive and amicable relationship with your ex-spouse. A great co-parenting relationship will make this holiday season better for everyone.

If you have questions about child custody issues, contact The Law Office of Matthew J. Rudy for a free 1 hour consultation today.

Summary Dissolution

In California, there is a legal action known as a summary dissolution. This is the dissolution of a marriage that has only been legal for five years or less. A joint petition for summary dissolution can be filed when either spouse meets the standard residency requirements and irreconcilable differences the marriage render the marriage irretrievably broken. A summary dissolution can also be filed when the marriage does not involve any children and the wife is not pregnant (Wikipedia).

Who Can File for Summary Dissolution?

This fast-track legal procedure is available to married couples and domestic partners regardless of gender and to those who began as domestic partners and later married. Couples do not have to end their domestic partnership when they marry. On the other hand, they can end both their marriage and domestic partnership at the same time with summary dissolution.

To qualify for summary dissolution, you have to meet all of the following requirements at the time you file your petition:

• One of you has lived in California for the last 6 months and in the county where you file the petition for the last 3 months. (There’s an exception to this residency requirement for same-sex married couples who no longer live in California, but were married in California. If this is your situation, you can file for summary dissolution in California if your current state of residency will not dissolve your marriage. To do this, you must file in the California County where you were married.)
• Both of you want the marriage or domestic partnership to end because of irreconcilable differences.
• You have no minor children together and do not expect (are pregnant) any children together.
• The marriage or domestic partnership lasted five years – from the date you were married or registered as domestic partners to the date of separation – or less.
• Neither of you owns any real property, in other words, land or buildings. You can have a lease, but it cannot have an option to purchase and it must end within one year from the date you file your summary dissolution petition.
• Neither of you has incurred more than $6,000 in debt since the start of your marriage or domestic partnership. You can exclude car payments, however.
• You have $38,000 or less in community property. Generally speaking, community property is all assets and debts acquired or earned during marriage. You can exclude your cars here, too, but you must include any deferred compensation (like a 401K) or retirement benefits earned during the time of the marriage or domestic partnership.
• Neither of you has more than $38,000 in separate property. Separate property tends to be anything you owned before marriage or registration as domestic partners and after separation. It also includes any gift or inheritance you got during marriage or your domestic partnership.
• You both complete and sign a property settlement agreement, which divides your community property. Before filing your summary dissolution petition, you also must sign the necessary paperwork to make this agreement effective. In other words, you need to take care of title certificates, bills of sale, or other transfers.
• You both agree to waive any rights to spousal support.
• You both waive your rights to appeal once the court enters your summary dissolution, and
• You both agree that you have read and understand a booklet called Summary Dissolution Information (provided by the California courts).

If you do not qualify for a summary dissolution, but still want to end your marriage or domestic partnership, you can file for a regular dissolution (courts.ca.gov).

Summary Dissolution Waiting Period

You need to wait six months after filing your petition for summary dissolution. Once this time runs out, the court will enter a judgment that dissolves your marriage or domestic partnership. At that point, your marriage or domestic partnership is over and your property settlement agreement goes into effect. You are also free to remarry or enter a new domestic partnership (Wikipedia).

Revocation

There is a catch, however. Either of you can stop the summary dissolution by filing a Notice of Revocation for Summary Dissolution within the six-month waiting period. This tends to happen when couples reconcile, or if one decides to pursue a regular divorce (perhaps to receive spousal support), for example. You can file to revoke your summary dissolution and then re-file for a regular divorce. If you re-file within 90 days, then the time already spent during your waiting period applies to the time you must wait in a regular divorce.

If you miss that six-month window, then you still have limited recourse. If your dissolution was a result of fraud, mistake, or some other injustice, then you can make a motion to set aside the summary dissolution. Then, however, you would have to go to court to prove it (Wikipedia).

If you would like to know more information about Summary Dissolutions, please contact The Law Office of Matthew J. Rudy for a free 1 hour consultation.

 

 

Reasons to Hire a Divorce Attorney

Divorce is a situation that few people ever plan, budget or save for. It is also a significant disruption to everyday life. Housing, finances, family relations and friendships can be seriously affected by a divorce, however amicable. Deciding on the best way to handle the divorce goes along with the decision to pursue divorce at all.

Even people who would prefer not to divorce often come to believe they have no choice but to go through the process. Many people wish to avoid the expense and hassles of traditional divorce litigation but do not know how. Couples who think they agree on how to divide property and how to cooperate in the care of children may also think that they can save time and money with a low-cost “do-it-yourself” (DIY) divorce, with no lawyer involved.

If you are considering a DIY divorce, we would challenge you to think again. Navigating the many avenues of divorce can be complicated, and you may want a professional there to guide you and help you through your case. There are a variety of reasons that a divorce attorney can be an invaluable asset in your case. For one, a divorce attorney can offer expert advice. You may not understand the ins and outs of family law, but an attorney can look at your situation and know what laws apply.

An attorney may be able to work to make sure that you receive retirement funds or other income from an ex-spouse in the future, and may be able to resolve complications. Also, a divorce attorney understands how to work through child custody and support issues and will do so in your favor.

In addition to being a wealth of knowledge, an attorney can reduce stress during the divorce. Divorce is always a stressful time for those involved, but an attorney can help deal with the legalities of the process so that you can cope with the emotional effects. An attorney can also help you to avoid mistakes.

If you are doing a DIY divorce, there is a chance that you could mess up on paperwork or fail to disclose details about your marriage because you didn’t know that they were required. You may simply forget to address an important issue such as medical debt, or you may overestimate the value of an asset. Most of these mistakes can be effectively avoided, and all you have to do is hire a divorce attorney to help you with your case.

Also, a divorce attorney can ensure that you have a clear and binding agreement with your spouse that is less likely to be broken or contested later on. The court is permitted to review any divorce documents that you present but an attorney can create documents that specifically state your wishes. Lastly, hiring a divorce attorney can help you to avoid delays. When you are doing a DIY divorce, the court may not be motivated to move your process along. With a divorce attorney on your side, you may be able to push the process along faster.

Learn more by contacting The Law Office of Matthew J. Rudy for a free 1 hour consultation today.

Collecting Unpaid Child Support in California

Collecting unpaid child support is an on-going problem for many custodial parents. High unemployment and the national economic situation leads to more people than ever unable to meet their financial obligations including child support payments.

There are a growing number of individuals who have exhausted their unemployment benefits and cannot find work. Bankruptcy, while offering relief from a variety of consumer and medical debts, does not offer relief for a former spouse who is behind in support payments.

California and other states have implemented new ways to help encourage parents to stay current on child support obligations. Even if the non-custodial parent lives in another state, federal child support law requires cooperation between states. The non-custodial parent is legally required to make regular child support payments, regardless of where they live.

California Child Support Enforcement Measures

In order to cut down on the amount of unpaid child support California has enacted provisions that allow for interest and surcharges to be added to delinquent child support accounts. If you have had a change in your income that makes it impossible for you to comply with your current child or spousal support orders it is important that you promptly file for a modification of these orders.  The Court only has the ability to modify support orders retroactive to the date that such a request if filed.

California law requires that interest be charged on delinquent child support accounts. In addition, when a parent that is required to pay child support is 30 days or more delinquent, their name can be submitted by the Department of Child Support Services (DCSS) to the DMV for suspension of their driver’s license. DMV sends a letter giving the parent 150 days to work with DCSS to pay their past due support. If payment is not made, the driver license suspension will take place.  These  laws make no distinction between someone who is financially able to make payments and does not and someone who was unable to pay because of job loss or disability (scscourt.org).

Here is a list of further options:

1. A “wage assignment” is typically imposed to collect regular and past-due payments directly from the paying parent’s paycheck. Funds are deducted by their employer and remitted directly to the custodial parent.
2. Fines and/or possible imprisonment may be imposed by the court
3. Court-ordered earnings withholding which can result in up to 50% of the paying parent’s other income being withheld by their employer(s).
4. Past-due child support may be collected from federal and state income tax refunds, state or property tax credits, and lottery winnings.
5. Liens may be filed against his or her real property or other assets.
6. Applications for state issued business, professional and driver’s licenses (for example: cosmetologist, contractor, doctor, teacher, attorney, class A, B, and C drivers licenses) to parents with past due child support payments may be denied for new licenses or renewals. Current licenses may also be suspended or revoked. Compliance with an agreement to pay past-due child support is required for reinstatement.
7. Workers’ compensation lump sum payments owed to non-custodial parents may be collected to pay past due child support. (supportkids.com)

Interest on Missed Child Support Payments

The State of California allows for interest to be charged on missed support payments at a rate of 10% per year. Interest accrues from the date an installment is due if support is payable in installments, or from date of entry of judgment if a lump sum support order was made.

California also charges interest on back child support at a statutory rate of 10% per year. Interest accrues from date installment is due if payable in installments, or from date of entry of judgment (singleparents.about.com).

Age of Emancipation / Age of Majority in California

Child support must be paid until the child becomes 18, unless the child has not graduated from high school, in which case the child support continues until the child has graduated high school or turns 19, whichever occurs first. California law does not allow the court to impose continuing support beyond the age of 19, unless the child is physically or mentally disabled or otherwise incapacitated from earning a living. However, if the parents have agreed that child support is to continue into the college years, such an agreement will be enforced by the Family Court (singleparents.about.com).

California has no statute of limitations on past due child support payments; child support is enforceable until paid in full. There is also no statute of limitations on establishing paternity. Paternity can be established at any time. Parents in California have options available for collecting delinquent child support. California families may utilize services available through the California Department of Child Services (scscourt.org).

If your child is suffering from the effects of unpaid child support payments, we may be able to help. Contact the Law Office of Matthew J. Rudy for a free 1 hour consultation.

Paternity and Child Support

Establishing paternity, or determining a parent child relationship, is legally necessary in order to collect child support. If a child’s parents were not married to each other when the child was born, the law does not recognize the father unless paternity is legally established by a court order. Establishing paternity will give your child the same rights and benefits as children born to married parents. Unmarried parents can establish paternity by signing the voluntary Declaration of Paternity. This can be done in the hospital after the child is born. A Declaration of Paternity may also be signed by parents either before or after they leave the hospital (Wikipedia).  The federal government provides a payment to the hospital for each Declaration of Paternity signed.  The signed Declaration of Paternity has the effect of a legally binding Judgment of Paternity.

An acknowledged father is a biological father of a child born to unmarried parents, for whom paternity has been established by either the admission of the father or the agreement of the parents.  An acknowledged father must pay child support.  An unmarried man who impregnates a woman is often referred to as an alleged father until there has been a finding of paternity.  An alleged or unwed father will be required to pay child support if a court determines or he acknowledges that he is the father; in addition, an alleged or unwed father has the right to visitation with his child and may seek custody (Babycenter.com).

If parents are registered domestic partners when a child is born, the law assumes that the domestic partners are parents. However, same sex parents should get legal advice to make sure that the parentage is clear. Parents who are not married when a child is born can sign a Voluntary Declaration of Paternity before they leave the hospital, or after. When people who are not married cannot agree about parentage, the Court can order genetic testing. Usually a child’s parentage must be established before you can get child support or custody and visitation orders. You can ask the Judge for child support or custody and visitation as part of a case that establishes the parentage of a child (Nolo.com).

Can I get child support if I am not sure who the father of my child is?

No. Paternity must be established before child support can be ordered. Paternity gives your child many rights, including child support, access to medical records, government benefits and more. However, you can get CalWORKS without paternity (Nolo.com).

What if the father leaves the state before it is proven that he is the father?

The local court may use information they have to decide paternity without him. If paternity is established without the alleged father’s cooperation, the court may order him to pay child support no matter where he lives, even if he is out of California (Babycenter.com).  Once service has been achieved on the alleged father the Court will likely have jurisdiction over the alleged father, particularly if the child was conceived in the state of California.

The man does not have any money or a job to support our child. Why should I bother proving that he is the father?

If you do not establish paternity, your child will not be able to get child support or health insurance even after the alleged father gets a job. Proving he is the father as soon as possible makes collecting child support easier later on (Nolo.com).  Once a child support order is in place the local Department of Child Support Services, if involved in enforcing the order should be alerted of the child support obligor’s new employment once the obligor begins to show up on the new employer’s payroll tax records.

Can I start my case while I am pregnant, before my baby is born?

You may start the paperwork to establish paternity when you are pregnant. The local child support agency can only open and pursue the case after the child is born. If the man you believe is the father denies that he is the father, a genetic test can be ordered after your baby is born. (Some labs will only perform genetic tests after a child is six months of age or older). Genetic tests can be scheduled through the local child support agency (Nolo.com).

Can paternity be established for my child if the father lives in another state?

Yes. The local child support agency will ask for a genetic test from the court in the other state. Also, a man can sign a Declaration of Paternity voluntarily declaring he is the child’s father even if he lives in another state (Nolo.com).

For more information, please contact The Law Office of Matthew J. Rudy for a free 1 hour consultation.

Palimony

Many people believe that if a couple lives together for a period of years and holds themselves out to the world as a married couple, then the couple will be considered to be “legally married.” While this may be true in certain states, California abolished these common law marriages over a hundred years ago. A common law marriage can never be created in California; however it will recognize common law marriages that were created in states which do recognize them.

Even though California does not allow for common law marriages, couples who live together may still have rights to financial support and property division as if they had been legally married, but only under strict circumstances.  In these cases, if one or both persons in the relationship had a reasonable and good faith belief that they had entered into a valid marriage, but it turned out the marriage was void, then that person can be considered a “putative spouse.”  To be given the status of a putative spouse, it is not enough to say that you simply believed you had a common law marriage.  Instead, the couple must have actually gone through the motions to get married, yet had something go wrong when trying to comply with the legal requirements for marriage (often this happens when one person was in a prior marriage and mistakenly thought that he or she was legally divorced).  Not only that, but this good faith belief that you are married must continue throughout the marriage, if you find out that the marriage is invalid, then you lose putative status.  Recently, it was also established that these same principles can be applied to couples who were in an unregistered domestic partnership.  A person with putative spouse status will be entitled to share in property acquired during the invalid marriage or domestic partnership under our community property laws, and to any spousal support that is required once the relationship is terminated.  A putative spouse may also have marital-type rights in other situations as well, such as workers compensation or retirement benefits (Wikipedia).  The spouse who knew or should have known that the marriage was not valid will typically not be able to benefit from these provisions.

A second category involves the rights of unwed couples who are not putative spouses (because they never tried to get married), but had an agreement to treat assets like community property or promised lifetime support, despite the fact that both partners knew they were not married.  Here, no one is entitled to support or property rights under California family law, but there can be rights created under the oral or written contract.  One person may have promised to provide support for the other that’s similar to spousal support (alimony), and this has come to be known as “palimony.”  These palimony actions started in the early 1970’s after actor Lee Marvin broke up with his girlfriend Michelle Triola, whom he had lived with for several years (Nolo.com).

Marvin Case

In Marvin, the plaintiff, Michelle Triola, alleged that she and Lee Marvin entered into an oral agreement which provided that while “the parties lived together they would combine their efforts and earnings and would share equally any and all property accumulated as a result of their efforts whether individual or combined.” The parties allegedly further agreed that Michelle would “render her services as a companion, homemaker, housekeeper and cook.” Michelle sought a “judicial declaration of her contract and property rights, and sought to impose a constructive trust upon one half of the property acquired during the course of the relationship.” (NYTimes.com)

The trial court granted a judgment on the pleadings in favor of the defendant, Lee Marvin, holding that the alleged agreement was unenforceable. The California Supreme Court reversed, stating that “a contract between non-marital partners is unenforceable only to the extent that it explicitly rests upon the immoral and illicit consideration of meretricious sexual services.” The Court held:

“In summary, we base our opinion on the principle that adults who voluntarily live together and engage in sexual relations are nonetheless as competent as any other persons to contract respecting their earnings and property rights… So long as the agreement does not rest upon illicit meretricious consideration, the parties may order their economic affairs as they choose, and no policy precludes the courts from enforcing such contracts.” (NYTimes.com)

Although the plaintiff’s complaint alleged only an express contract, the Supreme Court went on to address the issue of “the property rights of a non-marital partner in the absence of an express contract.” Here, the Supreme Court made new law. Prior California cases had refused to enforce implied contracts between non-marital cohabitants. The Court overruled that line of cases, holding that in the “absence of an express agreement the plaintiff might be able to establish an implied contract or implied partnership, and might be able to invoke such remedies as constructive trust, resulting trust, and quantum meruit.” (NYTimes.com)

The problem for Triola, and many since, is that it can be very hard to prove the terms of an oral agreement.  After winning her appeal, Triola’s case against Marvin was returned to the trial court for rehearing on Triola’s claims.  The trial result was again in Marvin’s favor.

For this reason, it’s important to put promises into writing and couples who live together without getting married or entering into a domestic partnership should be forewarned.  Many of these troublesome issues can be resolved with a written “cohabitation agreement” to help protect your interests if the relationship dissolves.  As the two of you contribute toward your financial future together, a cohabitation agreement can set out fair arrangements regarding property ownership and division, and any support, similar to how a prenuptial agreement works.  If you lived together before getting married, then both a civil palimony lawsuit and family court divorce (dissolution) action may be necessary, but note that palimony suits must be brought within a certain time period after the agreement is broken to prevent your claim from being barred (Nolo.com).

If you need more information, please schedule a free 1-hour consultation at The Law Office of Matthew J. Rudy.

Ways To Protect Your Credit During A Divorce

Divorce can cause a range of emotions from anger to sadness to relief. Divorces can be both mentally draining and time consuming.  As such, sometimes finances can be an afterthought. As things get hectic, it is a mistake to forget about your credit situation. Before we start going through the tips, here’s a bonus tip: pull your credit report.  You will be using it a lot to prepare for your divorce

Below are some ways to protect your credit during a divorce as well as a brief analysis of California Family Code Section 2040 and the automatic restraining orders that take place to help protect your finances:

Know ALL your credit and debit lines

When couples are married for many years, it is easy to forget about that random department store credit card you and your spouse opened years ago. Since you’ve pulled your credit report, go through it and review it, and make sure you understand what is on it. An individual account in your name means you may be solely responsible for the debt.  A joint account means you and your spouse will likely share responsibility for paying off any debt on that account. An authorized user means the account is held individually by one person who allows another to use the card, but who may not be responsible for the balance. Note the difference and proceed accordingly (Experian.com).

Monitor remaining joint accounts

Sometimes joint accounts cannot be transferred easily, such as a mortgage. In this case, assume your spouse agrees to continue paying the mortgage on the home you own together.  You will want to ensure this is properly documented in the divorce agreement, but in addition, you will also want to monitor those joint accounts.

Ask your lender to send you a copy of the joint account’s statement each month.  Some may do it automatically, while others may allow access to account statements and records online. Do this even if your ex has agreed to make the payments, that way you can catch any missed payments before they damage your credit (Experian.com).

Create a post-divorce budget

One of the most difficult parts of a divorce for many people is that their income typically decreases (especially if you’re moving from a dual-income household to a single-income household) and expenses increase.  Some people tend to get in over their head with expenses rapidly stripping their income, either from divorce expenses or perhaps from frivolous spending stemming from the emotional turmoil of divorce.

The best thing to do is create and track a monthly budget that includes your steady income and all expenses.  Mortgages, utilities, credit card payments, auto loan payments, property taxes, insurance, etc.  Unfortunately, you may be faced with making some hard choices if you find that your expenses exceed or come close to exceeding your income, but it is better to know ahead of time rather than accumulate a huge pile of debt that you will then be stuck with. (Divorcesupport.about.com)

CA Family Code Section 2040: What Are The Automatic Restraining Orders In California Divorces and Legal Separations?

Family Code Section 2040 sets forth what legal professionals often refer to as the “ATROS” – automatic temporary restraining orders in the Summons. At the moment that a spouse or domestic partner signs the Petition for Dissolution of Marriage or Domestic Partnership, Legal Separation, or Nullity of Marriage, they become bound by the contents of the Summons which must accompany the initial filing. Page 2 of the Summons has the exact language of Family Code section 2040. Once the Summons is served upon the Respondent, they likewise become bound by the ATROS. Failure to comply with section 2040 can result in contempt citations or allegations for breach of fiduciary duty (legalinfo.ca.gov).

The Summons reads as follows:

“STANDARD FAMILY LAW RESTRAINING ORDERS

Starting immediately, you and your spouse or domestic partner are restrained from

1. Removing the minor child or children of the parties, if any, from the state without the prior written consent of the other party or an order of the court;

2. Cashing, borrowing against, canceling, transferring, disposing of, or changing the beneficiaries of any insurance or other coverage, treats including life, health, automobile, and disability, held for the benefit of the parties and Their minor child or children;

3. Transferring, encumbering, hypothecating, concealing, or in any way disposing of any property, real or personal, whether community, quasi-community, or separate, without the written consent of the other party or an order of the court, except in the usual course of business or for the necessities of life, and

4. Creating a nonprobate transfer or modifying a nonprobate transfer in a manner that affects the disposition of property subject to the transfer, without the written consent of the other party or an order of the court. Before revocation of a nonprobate transfer can take effect or a right of survivorship to property can be eliminated, notice of the change must be filed and served on the other party.

You must notify each other of any extraordinary proposed expenditures at least five business days prior to incurring these extraordinary expenditures and account to the court for all extraordinary expenditures made ​​after these restraining orders are effective. However, you may use community property, quasi-community property, or your own separate property to pay an attorney to help you or to pay court costs.” (courts.ca.gov)

The most important exception is the right to use the community property assets or bank account in order to hire a party’s attorney. The legislative intent is to encourage parties to be able to retain competent legal counsel for their divorce or legal separation, but fees are limited to what is reasonable and a spouse who does so is required to account to the other for how the money was spent.

Another provision of section 2040 that is difficult to enforce and sometimes gets abused is the end of “3” which permits parties to dispose of assets “in the usual course of business or for the necessities of life.” The wording is very vague and thus difficult to measure. Since governments cannot and should not micro-manage the daily lives of people in divorce, there is an element of voluntary compliance with the ATROS. We hope that spouses and domestic partners will behave honorably, but many don’t.

Finally, there are important consequences to the disposition of jointly titled, right of survivorship interests in real estate or personal property that are important to recognize: If property is held in joint tenancy and one party dies before marital status has terminated (i.e., the parties become “unmarried”), the other spouse inherits the entire property.(divorcesupport.com)

Credit and finances can be very complicated. It is always best to consult a specialist before making any decisions. For more information, please contact The Law Office of Matthew J. Rudy for a free 1-hour consultation.

 

Proposition 8 Ruling Explained

In late June, the Supreme Court of the United States (SCOTUS) ruled that the Defense of Marriage Act (DOMA) was unconstitutional, and that the benefits available to legally married heterosexual couples should be available to legally married gay couples. The 1996 federal law had defined the institution of marriage as a union between a man and a woman, thus denying federal benefits for gay couples whose marriages were recognized at the state level—like joint tax returns, Social Security, health insurance, pension protection, benefits for military couples, and immigration protections for couples from different countries.

The court invalidated DOMA in a 5-4 ruling. Justice Anthony Kennedy, who delivered the decisive vote along with the court’s four liberal justices, wrote the majority opinion stating that DOMA “violates basic due process and equal protection principles applicable to the Federal Government.”

The Prop 8 ruling, on the other hand, is less decisive and more complicated. Proposition 8 was a 2008 California ballot initiative that prohibited same-sex marriage by amending the state’s constitution. The case was dismissed on the basis that the petitioners lacked standing.  Since the California courts have already invalidated Prop 8, the outside lawyers supporting Proposition 8 have no standing to defend it. This means the court has effectively validated the rulings of lower courts that have rejected Prop 8 (sfgate.com).

In this blog, we will answer some questions to further explain this ruling.

Is gay marriage legal in the state of California now?

SCOTUS’s decision itself does not legalize gay marriage, or speak to the validity of gay marriage bans, but the lower court decision overturning Prop 8 still stands. Same sex marriages have resumed in California after the Ninth Circuit Court of Appeals took the unusual step of lifting a stay during the 25 day period before SCOTUS’s decision became final.

Can legally married gay couples file for income tax deductions and receive the same tax, health and retirement benefits as different sex couples?

Yes, the ruling against DOMA should allow legally married gay couples (or, in some cases, a surviving spouse in a same-sex marriage) to receive the same benefits and tax breaks available to legally married heterosexual couples (nbcpolitics.nbcnews.com).

What about an appeal?

On July 15, the California Supreme Court refused to stop gays from marrying while it considers a legal bid to revive Proposition 8. The court rejected a request by ProtectMarriage, the sponsors of the 2008 ballot measure, to stop the issuing of marriage licenses to same-sex couples while considering the group’s contention that a federal judge’s injunction against the marriage ban did not apply statewide. The court is not expected to rule on the group’s petition until August, at the earliest.

The U.S. Supreme Court decided last month that ProtectMarriage lacked the legal right to appeal a 2010 injunction against Proposition 8 issued by a federal trial judge in San Francisco. Gov. Jerry Brown said the injunction compelled him to order county clerks to issue marriage licenses to same-sex couples.

But ProtectMarriage insists the injunction applies only to two counties at most and that Brown erred when he ordered clerks to stop enforcing the marriage ban.

State Attorney General Kamala D. Harris has contended that ProtectMarriage is asking the state court to interfere with a federal court order in violation of the constitution (sfgate.com).

If you would like more information about same-sex marriage and the rapidly changing associated rights and responsibilities, please contact The Law Office of Matthew J. Rudy for a free 1-hour consultation today.

Relationships in America

Embed this infographic on your site!

<a
href=”http://www.topcounselingschools.org/relationships-in-america/”><img

src=”http://www.topcounselingschools.org/wp-content/uploads/2013/06/relationships.png&#8221;
alt=”Relationships In America” width=”500″ border=”0″
/></a><br />Source: <a
href=”http://www.topcounselingschools.org/”>Top Counseling
Schools</a>

 

Are women caught in a war between evolution and careers?

Today the average age for marriage is:

Males=29
Females=27

In 1990 it was:

Males=26
Women=23

And in 1960:

Males=22
Females=20

But our biological clocks have stayed the same…

44% of women have a child by age 25

Because of changes in marriage timing
This leaves 48% of first births to occur outside of wedlock

Which compounds with 50% of first marriages that end in divorce
That means that out of four children
2 are born out of wedlock
This is because
(1) Women’s earning potential is increased by getting married later.
(2)absentee fathers
1 is born into a marriage that ends in divorce
And 1 is born into a marriage that stays intact

That means that only one out of four children has their biological parents in the same house until they are eighteen.

The trajectory of mating

Females have the most sex at age 25
Males have the most sex at age 29

[age group–gender—percent engaging in vaginal intercourse]
14-15 y.o.
Male:9%
Female:11%

16-17 y.o.
Male:30%
Female:30%

18-19 y.o
Male: 53%
Female:62%

20-24 y.o.
Male: 63%
Female:80%

25-29 y.o.
Male:86%
Female:87%

30-39 y.o.
Male: 85%
Female: 74%

40-49 y.o.
Male: 74%
Female: 70%

50-59 y.o.
Male: 58%
Female: 51%

60-69 y.o.
Male: 54%
Female: 42%

70+ y.o.
Male: 43%
Female: 22%

Same old folks

Evolutionary theories of human mating

Fundamental dilemma: women:
Access to resources with which to care for children and self
Access to suitable genes in males (attractive personal traits)

Fundamental dilemma: men:
Access to partners of a healthy child-bearing age (fertile)
Assurance of paternity

The optimal age for conditions to be met results in a 2-3 year discrepancy in the ages of partners.

Female sexual trajectory peaks in the mid to late twenties
Male sexual trajectory peaks in the 30’s
2012 marriage stats correspond with these numbers more than ever
[age of marriage—gender]
29—males
27—females

Makes perfect sense, right?

Information or evolution?

Males profit from marrying earlier, females later, but one way or another evolved tendencies are going to get pushed aside.

Pros and Cons of marriage trends

Earnings
Female average earnings by time of marriage and degree
[age of marriage; education level; average earning]
<20
High school/some college–$18,000
College–$31,000

20-23
High school/some college–$19,900
College–$34,000

24-26
High school/some college–$20,500
College–$39,500

27-29
High school/some college–$21,000
College–$44,000

30+
High school/some college–$21,500
College–$50,500

Never Married
High school/some college–$24,000
College–$52,500

The later women wait to marry the higher their average income
The highest earning demographic are women who have never married and have a college degree.

Male Average Earnings by time of marriage and degree
[age of marriage; education level; average earning]
<20
High school/some college–$41,500
College–$60,000

20-23
High school/some college–$43,500
College–$75,000

24-26
High school/some college–$43,500
College–$81,500

27-29
High school/some college–$33,000
College–$82,500

>30
High school/some college–$40,000
College–$78,000

Never Married
High school/some college–$33,000
College–$65,000

Men who marry in their late twenties make more money than those who marry earlier or later, regardless of education level.

Recap: Men benefit from marrying earlier, women later, as evolutionary studies of human mating predict.

Children

2% of children with two parents live in poverty
22% of children in one parent households live in poverty
For >7 years
Children are 2-3 times more likely to have behavioral and emotional issues when from a single parent home
Single parent family children are more likely to
Become pregnant as teenagers
Drop out of high school
Abuse drugs
Get in trouble with the law

The flags of a productive female workforce are raised, and once set familial boundaries are more porous than ever.
But why do the casualties have to be kids?

[citations]

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/25/nine-facts-about-marriage-and-childbirth-in-the-united-states/

http://ht.ly/km76N

http://www.theatlantic.com/sexes/archive/2013/03/getting-married-later-is-great-for-college-educated-women/274040/

http://www.children-and-divorce.com/children-divorce-statistics.html

http://www.huffingtonpost.com/2012/05/29/sexual-peak-women-28-men-33-myth_n_1554011.html

http://www.nationalsexstudy.indiana.edu/graph.html

http://www.guttmacher.org/pubs/journals/3116099.html

Click to access bussandschmitt.pdf