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LONICH PATTON EHRLICH POLICASTRI
1871 The Alameda, Suite 400, San Jose, CA 95126
Phone: (408) 553-0801 | Fax: (408) 553-0807 | Email: contact@lpeplaw.com
LONICH PATTON EHRLICH POLICASTRI
Phone: (408) 553-0801
Fax: (408) 553-0807
Email: contact@lpeplaw.com
1871 The Alameda, Suite 400
San Jose, CA 95126
Located in San Jose, Lonich Patton Ehrlich Policastri handles matters for clients in northern California, specifically San Jose and Silicon Valley. Our services are available to anyone within the following counties: Santa Clara, San Mateo, Contra Costa, Santa Cruz, Monterey, and San Benito. For a full listing of areas where we practice, please click here.
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How Is Child Support Determined in California?
/in Estate Planning /by Virginia LivelyA primary concern of divorcing parents is how it will impact their children’s standard of living. In the state of California, both parents are legally responsible for the financial well-being of their children.
But how does the court determine the amount each parent should provide?
There are many considerations that go into determining child support, and it starts with a formula from California Family Code § 4055 that takes into account the parents’ combined total income and the amount of that which must go towards financial support:
CS = K[HN – (H%)(TN)]
CS = child support amount
K = the combined amount of both parents’ income that is to be allocated towards financial support
HN = the net monthly disposable income of the parent who earns more
H% = the approximate percentage of time the higher earning parent has physical custody of the child compared to the other parent
TN = total net monthly disposable income of both parties
Each parent’s net disposable income includes the following:
Another key factor in determining child support is custody and time-sharing. The custodial parent, who has the child for the majority of the time, typically receives child support from the non-custodial parent.
In a 50/50 custody situation, child support may still be required from the higher earner.
The purpose of child support is to ensure the availability of financial resources necessary for their well-being, including:
Child support orders are not set in stone. They can be modified if there are changes in circumstances, such as a significant change in income or alterations in custody arrangements. Only a court order can change the amount of financial support.
Even if both parents agree on the new amount, it still must be approved by the court.
Additionally, non-payment of late payment of child support can lead to legal consequences, including wage garnishment, property liens, or applying any tax refund toward the delinquent amount.
Understanding how child support is determined in California can be complex. Still, it’s crucial to ensure a fair outcome for all parties involved and protect the best interests of the child. If you’re navigating child support issues, consider seeking advice from a legal professional who specializes in family law. Our attorneys at Lonich Patton Ehrlich Policastri work with families throughout San Jose, Silicon Valley, and the Greater Bay Area. We can assist you in navigating the legal process and answer any questions you may have.
Contact us for a free consultation by calling (408) 553-0801.
Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
Will My Estate Plan be Impacted by the Corporate Transparency Act?
/in Estate Planning /by Michael LonichIf you have taken the time to create an estate plan, then you understand the importance of ensuring your family’s financial security after you have passed away. You have taken the necessary steps to enable your assets and estate to be passed on with minimum complications and taxes.
However, in recent times, new laws and regulations are changing how individuals prepare for the future.
One law that has caught people’s attention is the Corporate Transparency Act (CTA) and how it may impact their estate plans. Understanding the purpose of the CTA and its implications can help you decide if you need to revise your estate plan.
What is the Corporate Transparency Act?
The Corporate Transparency Act was signed into law in January 2021. The purpose of the act is to enhance the transparency of corporate entities and prevent illicit activities such as money laundering, financing terrorists, tax evasion, and other illegal financial acts.
Starting January 1, 2024, many companies in the United States will need to disclose information to the Financial Crimes Enforcement Network (FinCEN) regarding beneficial ownership, the individuals who actually own or control the company. Both new and existing businesses will need to comply, and the reports will be stored in a secure, non-public database that will only be accessible to authorized government agencies and law enforcement.
How Does the CTA Affect Estate Planning?
The Corporate Transparency Act doesn’t just affect corporations. It is expected to have a significant impact on real estate holdings, asset protection planning, and estate planning. Many people use Limited Liability Companies (LLCs), corporations, and partnerships in estate planning for privacy and asset protection. With the Corporate Transparency Act’s new reporting requirements, these entities will face increased scrutiny, thus affecting the privacy the beneficial owners once had.
Additionally, trusts that have beneficial ownership in a business may need to comply with the Corporate Transparency Act disclosure regulations.
And, while the Corporate Transparency Act itself doesn’t directly affect tax laws, it could have indirect tax implications in relation to estate planning. Specific estate planning strategies are aimed at minimizing tax liabilities, and the new reporting requirements could influence how trusts are used in asset protection.
What Should You Do?
If you have an estate plan that involves an LLC or another entity covered by the Corporate Transparency Act, it’s essential to understand the implications of this new law and how it will impact your existing structures. Our attorneys at Lonich Patton Ehrlich Policastri can assist you. You may need to restructure assets, revise trust agreements, or explore other options for wealth preservation. We have significant experience working with individuals on estate planning and asset protection planning throughout San Jose, Silicon Valley, and the Greater Bay Area.
Contact us for a free consultation by calling (408) 553-0801. We can discuss how we can guide you through the complexities of the CTA while still achieving your estate planning goals.
Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
Everything You Need to Know About an Annulment
/in Family Law /by Mitchell EhrlichIn the realm of personal relationships and the institution of marriage, the concept of annulments stands as a significant but often misunderstood legal process. While divorce is a familiar term to many, annulments offer a distinct and alternative route for couples seeking to dissolve their marriages. Here, we’ll explain what an annulment is, how it’s different from a divorce, who may be eligible for an annulment, and how to file for an annulment in California.
What is an annulment?
An annulment is a legal process that declares a marriage to be void, as if it never existed in the eyes of the law. Unlike divorce, which ends a valid marriage, an annulment essentially erases the marriage from the records, treating it as if it never happened. This legal remedy is available to couples who meet specific criteria that render their marriage legally invalid or voidable.
How does an annulment differ from a divorce?
The key distinction between divorce and annulment lies in their effects on marital status. Divorce acknowledges that a valid marriage once existed but is now dissolved, allowing both parties to be considered divorced individuals. On the other hand, annulments invalidate the marriage entirely, so the parties are legally treated as though they were never married.
Who is eligible for an annulment in California?
In the state of California, obtaining an annulment is a legal process available to couples who meet specific criteria that render their marriage void or voidable. It’s important to note that annulments are not granted automatically and require the party seeking the annulment to present evidence supporting one of the recognized grounds.
The following are some common grounds upon which a marriage may be annulled in California:
There are time limits within which annulments must be sought after the marriage. Failure to meet the time limits may result in the loss of the right to seek an annulment on that ground.
How to get an annulment in California
At Lonich Patton Ehrlich Policastri, our experienced attorneys specialize in annulment. You can trust us to handle your annulment situation in a way that represents you and your interests.
Contact LPEP today at 408-553-0801 or complete this form for a free, 30-minute consultation.
Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
What is ‘inheritance tax’, and why does it exist?
/in Estate Planning /by Michael LonichIn the intricate web of financial regulations and taxation, one added layer of complexity is inheritance tax. Also referred to as estate tax, this often complex form of tax is essential to understand if you’re dealing with the inheritance of an estate.
So, what exactly is inheritance tax, who does it apply to, and how does it work? In this article, we’ll unravel the complexities surrounding inheritance tax, teaching you everything you need to know about this important tax consideration.
What are inheritance taxes?
Inheritance taxes are a specific category of taxes imposed by governments on the transfer of wealth from a deceased individual to their heirs or beneficiaries. In the United States, the specifics of inheritance tax laws vary from state to state.
The tax rates, exemptions, and thresholds are subject to frequent revisions and adjustments by governments, making it crucial for individuals to stay informed about the relevant laws and regulations in their area.
Inheritance taxes vs estate taxes
While they share similarities in their objectives and mechanisms, there are distinct differences between inheritance taxes and estate taxes.
Inheritance taxes are taxes imposed on the assets or wealth inherited by beneficiaries after the death of the individual who owned those assets. These taxes are calculated based on the value of the inherited assets. The tax liability falls on the heirs or beneficiaries, and the amount owed may vary depending on a number of factors that we’ll discuss shortly.
Estate taxes, on the other hand, are levied on the entire estate of the deceased person before the assets are distributed to heirs or beneficiaries. These taxes are imposed by the federal government and are calculated based on the total value of the estate, including all assets, investments, real estate, and personal property. While inheritance taxes typically have a variable tax rate, estate taxes have uniform rates that apply to the entire estate.
How is inheritance taxed?
In California, the taxation of inheritances can be a complex and nuanced process, influenced by a variety of factors, including:
Most states provide exemptions or deductions to reduce the taxable value of the estate. These exemptions often include thresholds below which no inheritance tax is owed, as well as deductions for specific assets or bequests. For example, family homes, small businesses, and charitable donations may be exempt or subject to reduced taxation.
Inheritance tax rates are determined by the government and can vary widely depending on the state and the relationship between the deceased and the beneficiaries. Spouses and close family members may benefit from lower tax rates or even complete exemptions in some states, while more distant relatives or non-relatives may face higher tax rates.
Schedule a consultation to learn more
Given the complexity of inheritance tax laws, it is highly advisable for individuals and families dealing with estate inheritance to seek the expertise of tax professionals, estate planners, or attorneys.
At Lonich Patton Ehrlich Policastri, our experts can provide guidance on minimizing tax liability through various legal strategies and ensure your compliance with all applicable regulations.
Contact us today to schedule your free consultation.
Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
Extramarital Affairs in California
/in Family Law /by Gina PolicastriUnfortunately, extramarital affairs affect many marriages. In fact, according to the American Association for Marriage and Family Therapy, up to 40 percent of people in long-term relationships have experienced adultery. Allegations of an affair can sometimes be the catalyst for seeking a divorce and can heighten tensions when negotiating a divorce agreement.
Even if your spouse’s infidelity is the driving factor in your divorce, though, you do not have to prove adultery to be granted a divorce in California. As a no-fault divorce state, California allows parties to file for divorce without establishing the fault of a spouse. Instead, many couples cite irreconcilable differences when filing for divorce.
How An Extramarital Affair May Affect Your Divorce Settlement in California
The California family court system does not usually take extramarital affairs into account during divorce proceedings. However, the judge does have the leeway to determine whether the infidelity impacted some areas of the marriage in any way that needs to be addressed. For instance, certain cases and situations can affect child custody agreements, spousal support, and the division of the marital estate.
Child custody and visitation rights
When deciding matters related to child custody agreements (i.e., visitation schedules, child support, etc.), the best interests and safety of the child should always come first. Infidelity does not necessarily reflect on parenting abilities, but an extramarital affair could still adversely affect the child. For instance, if the cheating spouse left the child unattended in order to conduct the affair, neglected the child while having an affair, or if the adulterous parent and the new partner create an unsafe or inappropriate environment for a child, the judge would take those issues into consideration when granting custody.
Spousal support
Although you cannot necessarily get out of paying spousal support, or alimony, if your partner cheated on you, their affair could have financial repercussions in your divorce. A common situation is where the adulterous spouse ends up moving in with their new partner. This new living arrangement might provide them financial security that they wouldn’t have on their own. If you can prove that they can support themselves financially, the judge might reduce or eliminate any alimony payment requirements.
Division of marital estate
When it comes to dividing up the marital estate, California is a community property state. Generally speaking, assets and debts accrued during the marriage are divided equally. However, if your spouse spent money on an extramarital affair, such as paying for hotel rooms or buying expensive gifts, the judge will likely either require the adulterous spouse to pay penalties or reimburse you for those assets during the division of your marital estate.
Get Help by Talking to an Experienced Family Law Attorney
Have you discovered an extramarital affair and are planning to file for divorce? Or has your spouse unfairly accused you of cheating? The well-established family law attorneys at Lonich Patton Ehrlich Policastri have almost two decades of experience helping our clients resolve complicated divorce cases both in court and through mediation. Call us at 408-553-0801 to schedule a free, 30-minute consultation to discuss your situation and your needs. We will fight to protect your rights and help you navigate this stressful season of life.
Disclaimer: This article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.