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Grandparents Have Visitation Rights, Too!

November 14, 2013/in Family Law /by Gretchen Boger

Popular television personality Bethenny Frankel is waging a full-blown (and very public) divorce and contentious custody battle with her soon-to-be-ex-husband – and her newest attack on Mr. Hoppy is not regarding him, but his parents: she wants to limit the grandparents’ time with her three-year-old daughter, Bryn. So does this mean that Bryn, who reportedly has a very strong bond with her grandparents, will be unable to see them in the future without Bethenny’s consent?

In California, grandparents have no absolute right to visitation with their grandchildren. In some cases, however, grandparents may have the right to visit their grandchildren even over the objection of the children’s parents – but the courts will begin with the assumption that the rights of the parents supersede those of grandparents. This is because parents have a fundamental right to the care, custody, and control of their children. However, there are a number of situations where the courts may grant grandparents visitation rights:

  • One parent has died and the remaining parent refuses to let the grandparents visit.
  • The parents are divorced.
  • The child does not live with either parent.
  • Visitation is deemed by the court to be in the best interest of the child. Visitation is deemed by the court to be in the best interest of the child.

Furthermore, grandparents generally cannot file for visitation rights while the grandchild’s parents are married. However, there are a number of exceptions, including:

  • The parents are living separately;
  • A parent’s whereabouts are unknown (and have been for at least a month);
  • One of the parents joins the grandparent’s petition for visitation;
  • The child does not live with either of his or her parents; or
  • The grandchild has been adopted by a stepparent.

Grandparent visitation issues are complex. At Lonich Patton Erlich Policastri, we are committed to working with grandparents to help them maintain access to their grandchildren. Our attorneys typically handle two types of grandparents’ rights cases: those involving the custody of grandchildren and those involving grandparents seeking visitation rights. If you have any questions about grandparents’ rights, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization). Our attorneys have decades of experience handling complex Family Law proceedings and are happy to offer you a free consultation.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Gretchen Boger https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gretchen Boger2013-11-14 15:27:052021-12-22 21:17:08Grandparents Have Visitation Rights, Too!

YouTube PSA from the Santa Clara DA’s Office: Is an Annuity Right For You?

October 16, 2013/in Estate Planning, Family Law /by Lonich Patton Ehrlich Policastri

The Santa Clara County District Attorney’s Office has just released a YouTube Public Service Announcement regarding annuities – complex insurance investments that are often misunderstood and aggressively marketed to seniors.

In this 5-minute video, Assistant DA Scott Tsui, Deputy DA Janet Berry, and DA Jeff Rosen warn seniors about the financial perils that can result from annuities. Often, “free financial planning seminars” are targeted towards seniors but in the end, the old adage holds true – there’s no such thing as a free lunch. In fact, Tsui cautions that “annuities are not necessarily safe, not necessarily smart, and they are never free.”

Berry reminds us that the insurance agents who sell annuities have no duty to ensure that the process is the smartest idea for the folks who purchase them. In fact, if the insurance company goes out of business, you’ll lose all the money you’ve invested with them. Because of the risks involved, Berry offers the following list of details to be mindful of when considering purchasing annuities:

  1. Make sure the insurance broker is licensed.
  2. Do not sign documents at the presentation.
  3. Do not leave your documents behind.
  4. Talk to someone you trust – perhaps an insurance agent you already have, or someone else who can give you an unbiased opinion.
  5. Even if you’ve already signed the agreement, you have 30 days to walk away. If you have any misgivings, exercise this right.

Ultimately, the DA’s Office warns seniors to be vigilant and pay attention to the red flags associated with annuities – after all, you’ve worked hard for your savings and the decision to invest that hard-earned money ought to be informed decisions.

If you have any questions regarding your retirement investments, are interested in developing an estate plan, or are interested in reviewing your current estate plan, please contact the experienced estate planning attorneys at Lonich Patton Erlich Policastri for further information. The attorneys at Lonich Patton Erlich Policastri have decades of experience handling complex estate planning matters and are more than happy to meet with you for a free, 30-minute consultation.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Lonich Patton Ehrlich Policastri https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Lonich Patton Ehrlich Policastri2013-10-16 14:05:512021-12-22 21:18:41YouTube PSA from the Santa Clara DA's Office: Is an Annuity Right For You?

Forgot a Pre-Nup? Create a Post-Nup

September 9, 2013/in Family Law /by Mitchell Ehrlich

In June, billionaire media mogul Rupert Murdoch surprised his third wife, Wendi, with divorce papers. Mr. Murdoch, the founder, Chairman, and CEO of the world’s second-largest media conglomerate, has been married with the current Mrs. Murdoch for 14 years, has two young daughters with her, and has four other children from previous marriages. In other words – plenty is at stake. However, the Murdoch divorce may not play out as disastrously as one would imagine because the couple signed not only a prenuptial agreement but two postnuptial agreements – one after each of their daughters was born.

Nowadays, postnuptial agreements are becoming increasingly common. Unlike prenuptial agreements, postnuptial agreements are entered into after the marriage rather than before. They cover many of the same issues commonly covered in prenuptial agreements, such as asset protection, debt division, and spousal support.

Oftentimes, however, many people are hesitant to enter into a postnuptial agreement because they believe that they adversely impact one spouse while benefiting the other. In actuality though, postnuptial agreements can protect assets as well as shield spouses from debts. Some scenarios where postnuptial agreements are a good idea include:

  • One spouse wants to borrow a significant amount of money to start up a business. The other spouse does not want to share in the debt that is created should the business fail. A postnuptial agreement can be drafted to shield one spouse from the debt burden in the event of a divorce.
  • One spouse receives a large inheritance and wants to invest it in an existing family business, but he or she wants to ensure that if there is a divorce the value of the inheritance will be protected. A postnuptial agreement can be drafted to protect the value of the investment in the business.
  • A postnuptial agreement can also be drafted so that real estate and community property is divided equitably rather than equally (a 50-50 split), as prescribed by California community property law.

Since the legal relationship between people changes once they are married, it is vital to have an experienced attorney draft any postnuptial agreement. Courts carefully scrutinize postnuptial agreements to ensure that they were entered into voluntarily, without coercion, duress, or undue influence. Likewise, the Murdoch postnuptials (and prenuptial) will be highly scrutinized by both parties for these loopholes.

At Lonich Patton Erlich Policastri, our attorneys are prepared to help clients create targeted, legally binding postnuptial agreements. We always recommend that clients have legal counsel review their agreements to make it more difficult for either spouse to challenge the issues later on. If you have any questions about postnuptial agreements, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization). Our attorneys have decades of experience handling complex Family Law proceedings and are happy to offer you a free consultation.

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Mitchell Ehrlich https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Mitchell Ehrlich2013-09-09 12:14:172021-12-22 21:18:53Forgot a Pre-Nup? Create a Post-Nup

DIY Divorce Success: The Exception, Not The Rule

September 5, 2013/in Family Law /by Gretchen Boger

Recently the Huffington Post took a look at the risks of the new “Do-It-Yourself Divorce” trend, and we agree with their findings. Of course, anyone can get a divorce without an attorney, but it is not for everyone. This is especially true because many individuals underestimate what it will really take to dismantle their marriage, split up their property, and determine appropriate living arrangements for their children.

There are some couples who are in agreement on most issues, making divorce a cinch with or without a lawyer. So when is pursuing a DIY divorce a good idea? According to DivorceNet.com, a lawyer-free divorce is a good idea when:

  1. Both parties agree on all issues, including child custody, property division, and support (child and spousal);
  2. Both parties are certain that they have a comprehensive understanding of their family’s relatively simple financial situation, including assets and debts; and
  3. Both parties are content with the custody and support arrangements for their children and are readily prepared to co-parent.

Essentially, if your situation is not too complicated and you feel that every aspect of your separation is fairly settled, you might be a good candidate for an attorney-free divorce. Nevertheless, for every easy case there are ten more that are painfully complex. Many divorces may take years to work through because of the level of difficulty involved, especially when it comes to financial matters like pensions and stock options. When a divorce litigant is on his or her own when complications arise, efficiency tends to go out the window and a great deal of time and even money can be spent getting on the right track.

What is especially unfortunate for DIY-ers is the moment when they realize that they are in over their heads. This may occur when their ex shows up at a hearing with an attorney and they are all alone. Or, they may come to realize that their ex was withholding financial information, or their rights are being trampled in some other way.

To be sure, retaining a divorce attorney is an investment, but your attorney is also your ally. Your attorney will ensure that your rights are protected and that you will be in the best possible financial position after the divorce. Experienced family attorneys have the foresight to avoid problems before they arise and can help you reach a marital settlement that you and your family can be happy with for many years to come.

Whether you decide to retain an attorney or not, it is best to consult with one before you embark on your divorce journey. Contact the certified Family Law Specialists (as certified by The State Bar of California Board of Legal Specialization) at Lonich Patton Erlich Policastri to learn more about the divorce process. Our attorneys have decades of experience handling complex family law matters and we offer both full-service and consulting options. Make an appointment today for a free half-hour consultation with one of our attorneys.

 Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results.  While this post may include legal issues, it is not legal advice.  Use of this site does not create an attorney-client relationship.

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Gretchen Boger https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gretchen Boger2013-09-05 11:10:502021-12-22 21:19:09DIY Divorce Success: The Exception, Not The Rule

Tax Ruling: Joint Federal Tax Returns For Everyone!

August 30, 2013/in Family Law /by Gina Policastri

For many married couples across the country, filing your federal taxes just got a lot less complicated. As of last Tuesday, if you are a part of a legal same sex marriage, you will be treated just like heterosexual married couples under federal tax laws.  The Treasury Departments and the IRS just announced that all married couples will receive identical benefits for filing jointly regardless of where the couple lives.

“Today’s ruling provides certainty and clear, coherent tax filing guidance for all legally married same-sex couples nationwide. It provides access to benefits, responsibilities and protections under federal tax law that all Americans deserve,” Treasury Secretary Jacob Lew said in a written statement*

The tax ruling, however, will not apply to persons in civil unions or domestic partnerships. Nevertheless, the ruling is another huge milestone for same-sex couples. Moving forward, everyone will receive the same treatment across the board.

If you have any questions regarding your marriage or are interested in creating a prenuptial agreement, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization) at Lonich Patton Erlich Policastri. Our attorneys have decades of experience handling a wide array of family law cases and are more than happy to meet with you for a free consultation.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

 
*Via Fox News, “IRS Extends Tax Benefits to Married Gay Couples.” Find the full text here: http://www.foxnews.com/politics/2013/08/29/irs-issues-tax-rules-for-married-gay-couples/#ixzz2dTc44G5n

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Gina Policastri https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gina Policastri2013-08-30 15:56:582021-12-22 21:19:16Tax Ruling: Joint Federal Tax Returns For Everyone!

We’re Getting Divorced – Who Gets the Stock Options?

August 20, 2013/in Family Law /by Mitchell Ehrlich

This year, compensation packages for top levels executives rebounded considerably following a decline last year and the most significant increase was seen in stock option awards.*  For example, Apple’s Bruce Sewell led the pack with a whopping $66,571,750.00 in stock options! Though usually not to the tune of $66 million dollars, you or your spouse may have received some number of stock options during your marriage.  During divorce, characterizing stock options and how determining how to appropriately allocate the options between the spouses often becomes very contentious.  However, there are two prevailing methods for allocating intermediate stock options, i.e., options that were awarded during the marriage but will vest after the date of separation: the Hug formula** and the Nelson formula***. Ultimately, the Hug formula tends to be more favorable to the community, while the Nelson formula is typically more favorable to the employee spouse.

Under the Hug formula, the number of options determined to be community property is the product of the following fraction: the numerator is the total number of months between commencement of employment and the date of separation, and the denominator is the total number of months between the commencement of employment and the date when each option vested. This fraction is then multiplied by the number of shares of stock which could be purchased on the date each option vested.

In the Marriage of Hug, the Court recognized that stock options could be construed, depending on the particular facts of the case, as compensation for either past, present, or future services or a combination of these possibilities.  The Court found that in Hug, the stock options were granted partly to entice the husband to leave his prior job and partly as an incentive to work hard in the future.  Therefore, the Court concluded that the husband was earning the options from the date his employment started to the date the options vested.

On the other hand, under the Nelson formula, the numerator is the number of months from the date of grant of each block of options to the date of separation, and the denominator is the period from the time of each grant to its date of exercisability.

In the Marriage of Nelson, the Court observed that the options in Marriage of Hug were designed to attract new employees and more generously reward past services. However, in Nelson, only prospective increases in the value of the stock could result in a profit to the employee option-holder. Therefore, the Court determined that it was appropriate to place more emphasis on the period following each grant to the date of separation than on the employee’s entire tenure with the company up to the time of separation.

Allocating stock options is a very complicated and confusing issue. If you have any questions regarding the appropriate characterization of your stock options or you are simply looking for more legal advice regarding your current situation, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization) at Lonich Patton Erlich Policastri. Our attorneys have decades of experience handling complex dissolution proceedings and are more than happy to meet with you.

 

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

 

*Corporate Counsel Finds 2012 General Counsel Compensation Turnaround: Every Pay Category Rose, Stock awards Jumped 64.8%: http://www.alm.com/about/pr/releases/corporate-counsel-finds-2012-general-counsel-compensation-turnaround-every-pay

** In re the Marriage of Hug, 154 Cal. App. 3d 780 (1984).

*** In re the Marriage of Nelson, 177 Cal. App. 3d 150 (1986).

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Mitchell Ehrlich https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Mitchell Ehrlich2013-08-20 15:42:542021-12-22 21:19:39We’re Getting Divorced – Who Gets the Stock Options?

Sperm Donors: Are You (Legally) My Father?

July 19, 2013/in Family Law /by Gretchen Boger

When actor Jason Patric broke up with his long-time girlfriend, Danielle, he told her he didn’t have any money to give her at the end of their ten-year-relationship – but he could give her his sperm so she could have a baby.  In return, Danielle agreed to never tell anyone, never to ask for child support, and made herself an appointment to be artificially inseminated (this is important). In 2009, Baby Gus was born, and true to his word, Jason never paid child support. Then last year, Jason decided he wanted to be part of Gus’ life after all and he filed for 50/50 custody. Fast forward to today, and Jason’s story has evolved from Hollywood headline-fodder into a California legislative bill: Senate Bill 115 (SB 115).

Under current law, sperm donors are not legally considered to be the natural fathers of the children born using their donated sperm except under certain circumstances.* Furthermore, Cal. Fam. Code § 7613(b) makes it clear that if a man provides his semen to a licensed physician, surgeon, or sperm bank for the purpose of impregnating a woman who is not his wife, the man is legally barred from claiming parentage of the child the woman conceives.**

For example, in a 1986 case, Jhordan C. v. Mary K., a man gave his semen directly to a woman to artificially inseminate herself. The Court held that these facts did qualify for the statutory preclusion of paternity, because a California statute required the semen be instead given to a licensed physician. Accordingly, the Court allowed the donor to raise his claim for paternity.*** Conversely, a strong aspect of Jason and Danielle’s case is that she was inseminated by a physician – their case was not statutorily barred because her pregnancy did not result from a do-it-yourself insemination.

The purpose of the current artificial insemination laws is to allow unmarried women and women married to an infertile spouse the freedom to conceive via a sperm donor without the fear that the donor would interfere following the baby’s birth by asking for parental rights. However, SB 115 now seeks to allow a specific group of sperm donors to claim parentage – any donor who has “received the child into his home and openly holds out the child as his natural child,” regardless of the method of conception, would be presumed to be the father of the child. SB 115 passed the California senate in April 2013 and now, it’s up to the California assembly to determine if the bill will be signed into law. This raises questions about what qualifies as “openly holding out” a child as one’s own. There are many definitions of the concept of “family,” and the impetus for agreements to claim, or not to claim a child can change over time.

Parental rights can be a complicated and confusing issue. If you have any questions regarding your parental rights and obligations, or you are simply looking for more information regarding your legal options, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization) at Lonich Patton Erlich Policastri. Our attorneys have decades of experience handling complex Family Law proceedings and are happy to offer you a free consultation.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

 

*The Uniform Parentage Act, http://codes.lp.findlaw.com/cacode/FAM/1/d12/3.

**Unless the donor and the woman agreed otherwise in a signed writing prior to the conception of the child. http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0101-0150/sb_115_bill_20130408_amended_sen_v97.pdf

*** Jhordan C. v. Mary K., 179 Cal. App. 3d 386 (1986).

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Gretchen Boger https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gretchen Boger2013-07-19 12:30:232021-12-22 21:20:41Sperm Donors: Are You (Legally) My Father?

Domestic Violence: “Abuse” Encompasses More than Just Physical Blows

July 12, 2013/in Family Law /by Gina Policastri

Domestic violence scholars have questioned the appropriateness of the ever-present inquiry, “why did she stay?” Professor and author Martha Mahoney describe the importance of understanding the complexity of women’s experience and struggle and “recast[ing] the entire discussion of separation in terms of the batter’s violent attempts at control.”*

“Every legal case that discusses the question ‘why didn’t she leave?’ implies that the woman could have left.”*  The threat of violence and the aggressor’s continued control preventing women from leaving, financial dependence, and emotional ties are some of the reasons she cites.*

Mahoney writes that battered women often struggle with denial (a defense mechanism which allows us to unconsciously “disavow…[the] external reality….which [is] consciously intolerable.”).** Victims of domestic violence also “tend to minimize the history of assault against them and the pain they have suffered.”**

Often this denial is a result of the belief that the abuse suffered is not “bad enough” to qualify as domestic violence.  Many Californians believe that they have to be hit or display bruising in order to be considered a victim of domestic violence. This notion, however, is very far from the truth.  The definition of “abuse” included in California’s Domestic Violence Prevention Act (“DVPA”) is intentionally broad.  There are many ways in which we can suffer abuse, including psychological abuse, stalking, financial abuse, and in some instances, even cyber-bullying. Take a look at the California Family Code statute that outlines what our state considers impermissible “abuse”:

“For purposes of this act, ‘abuse’ means any of the following:

a)      Intentionally or recklessly to cause or attempt to cause bodily injury;

b)      Sexual assault;

c)       To place a person in reasonable apprehension of imminent serious bodily injury to that person or to another; or

d)      To engage in any behavior that has been or could be enjoined pursuant to Section 6320.”

Cal. Fam. Code § 6203.

The first two sections of Section 6203 (above) are easily recognized as traditional forms of domestic violence –  when a person suffers physical injury or sexual assault at the hands of their partner it is clear instance of DV. The last two prongs, (b) and (c), however, leave room for interpretation. Section (c) refers to what a reasonable, average person would find threatening to such an extent that they fear that they or someone else will be seriously harmed by the alleged perpetrator, and imminently.

Section (d), however, expands the concept of abuse to include more than violent abuse alone.  Section 6320(a) of the family code includes a long list of behaviors that can be halted by restraining order:

“The court may issue an ex parte order enjoining a party from molesting, attacking, striking, stalking, threatening, sexually assaulting, battering, harassing, telephoning, including, but not limited to, making annoying telephone calls…., destroying personal property, contacting, either directly or indirectly, by mail or otherwise, coming within a specified distance of, or disturbing the peace of the other party, and, in the discretion of the court, on a showing of good cause, of other named family or household members.” Cal. Fam. Code § 6320(a).

As can be seen, the DVPA’s definition of abuse is intentionally broad, and a restraining order may be appropriate protection from a myriad of different kinds of abuse. One notable catch-all provision in Section 6320(a) is “disturbing the peace,” meaning that a restraining order may be granted against someone who is disturbing your peace. What does it mean exactly?  “[T]he plain meaning of the phrase “disturbing the peace of the other party” in section 6320 may be properly understood as conduct that destroys the mental or emotional calm of the other party.” In re Marriage of Nadkarni (2009) 173 Cal.App.4th 1483, 1497.

In Nadkarni, the husband broke into the wife’s email account, learned and tracked her constant whereabouts, and distributed personal and business information about the wife and her business interests.  This conduct, the wife alleged, caused her “to suffer ‘shock’ and embarrassment,’ to fear the destruction of her ‘business relationships,’ and to fear for her safety.” Nadkarni, at 1499.  It is important to note that the court found that because of the past physical abuse against her by the husband, the wife’s fears regarding the husband’s potential for further abusive conduct in the future were reasonable.

If your partner is harassing you or treating you in a way that “destroys your mental or emotional calm,” you may be a victim of domestic violence and you can seek relief from the court.  The Court has discretion to issue a restraining order pursuant to the DVPA if the court is satisfied by “reasonable proof of a past act or acts of abuse.”  See Nakamura v. Parker, 156 Cal. App. 4th 327, 334 (2007); Cal. Fam. Code § 6300.

This is huge for California residents because, “[a]buse takes many forms. It’s more than just the obvious slap in the face, punch, or push. It’s about power and control, any way possible.”*** Californians are no longer forced to suffer in silence but instead get a helping hand from the courts on their journey to a better home life. The purpose of DVPA is to prevent the reoccurrence of acts of violence and to separate the parties so the causes of violence can be resolved.  Cal. Fam. Code § 6220.  In addition, under the DVPA, after notice and a hearing the Court may issue an order for the payment of attorney’s fees and costs to the prevailing party.  Cal. Fam. Code § 6344.

If you believe that you may be suffering from domestic violence, or are contemplating a divorce, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization) at Lonich Patton Erlich Policastri. Our attorneys have decades of experience handling complex Family Law matters and here to meet with you and offer you a free consultation. Life is too short to live with an abusive partner.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

 

 

*Martha R. Mahoney, Legal Images of Battered Women: Redefining the Issue of Separation, 90 Mich. L. Rev. 1 (1991).

**Julie Blackman, Potential Uses for Expert Testimony: Ideas Toward the Representation of Battered Women Who Kill, 9 WOMEN’S RTS. L. REP. 227, 228-29 (1986).

***Quote by Julie Saffren, Santa Clara University Law Professor and Domestic Violence attorney, from San Jose Mercury News, “Domestic Violence: Bill Targets Cyberbullying,” printed July 1, 2013; quote obtained with permission from Mrs. Saffren.

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Cohabitation Agreements: A Beneficial Tool For Both Parties

July 8, 2013/in Family Law /by Gina Policastri

So your relationship is going well and you’ve decided to start living together. Before couples get married, many consider creating a pre-nuptial agreement. But you’re just moving in together, just testing the waters – no harm, no foul, right? Not necessarily.

Although it may seem like no legal consequences can arise from simply living together*, California recognizes a particularly pesky action: the Marvin claim. In 1976, the California Supreme Court held that express contracts between non-marital partners are enforceable.** In Marvin, Lee and Michelle lived together as an unmarried couple for seven years and Michelle claimed Lee promised to take care of her for the rest of her life. Although Michelle was ultimately unable to provide proof of an implied contract, the Court’s holding was clear: express contracts between unmarried couples are fair game and enforceable.

As a result, with the sharp increase in the number of cohabitating couples in the past decade, a cohabitation agreement is a highly useful tool for unmarried couples to consider – much like a prenuptial agreement is for married couples. Some factors, amongst many more, to keep in mind when drafting a cohabitation agreement include:

  • Everything must be voluntary: cohabitation agreements must be entered into freely and voluntarily – just like prenuptial agreements.
  • Put everything in one document: include an integration clause that provides that the document signed by you and your partner constitutes the entire agreement – that there are no other outside agreements or oral agreements to be taken into consideration.
  • Put everything in writing: have a clause that requires all amendments to be made in writing, preventing the possibility that one party will later argue that later oral or implied changes were made to the original agreement.

A cohabitation agreement can benefit both the Lee’s of the relationship – the wealthier partner who has financially more to lose, and the Michelle’s of the relationship – the “weaker” partner who relied upon a partner’s promise to her financial detriment. If you are interested in creating a cohabitation agreement or reviewing your current cohabitation agreement, please contact our California Certified Family Law Specialists (as certified by the State Bar of California Board of Legal Specialization) at Lonich Patton Erlich Policastri. Our attorneys have decades of experience handling complex Family Law matters and are more than happy to meet with you and offer you a free consultation.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results. While this post may include legal issues, it is not legal advice. Use of this site does not create an attorney-client relationship.

 

*1 in 4 people living together believes they have the same legal protections as married couples (http://www.guardian.co.uk/money/2013/mar/09/cohabitation-agreement-essential-non-married-couples).

**Marvin v. Marvin, 18 Cal. 3d 660 (1976)).

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 Gina Policastri https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png Gina Policastri2013-07-08 09:18:082021-12-22 21:21:49Cohabitation Agreements: A Beneficial Tool For Both Parties

Educational Debt: Be Smart at Divorce

June 24, 2013/in Family Law /by David Patton

Upon divorce, many people find that they are still saddled with substantial educational debt. So, where does that debt go? It depends. California is a community property state. When a couple divorces, each spouse receives fifty percent of all assets earned during the marriage. Similarly, a couple must split whatever debts they have acquired during the marriage. (For example, if you owe $10,000 on a particular credit card, each spouse is responsible for $5,000 of that debt or a debt of equal value.) Simple enough, right?

Not always. The allocation of educational debt at divorce can look much different. “A loan incurred during marriage for the education or training of [one spouse] shall not be included among the liabilities of the community for the purpose of division….but shall be assigned for payment by the [student spouse].”*

It is sometimes said that “the debt follows the debtor” in this situation. Usually, the student-spouse will keep the loan taken out for his or her education. Take, for example, the situation where a husband takes out a loan (in his name) to pay for his wife’s nursing credential. There, it is likely that the wife will be solely responsible for paying off that debt after dissolution, not her husband. (So, if you and your spouse have no debt except for your spouse’s student loans, you may be able to walk away from the marriage debt-free!)

On the other hand, however, the distribution could be much more complicated. Educational loans come into play in several ways upon divorce depending on when the loan was taken out and whether payments were made during marriage. Here are some scenarios you could face:

  • If your student-spouse took out an educational loan during your marriage and your combined earnings were used to repay that loan, you might be a candidate for reimbursement. In this situation, you could potentially receive half of whatever was paid for the student-spouse’s educational costs (e.g., tuition, books, transportation, supplies).
  • On the other hand, if your student-spouse took out an educational loan during your marriage and your combined earnings were used to fully repay that loan, you may not be able to recover all of those expenses. If the student-spouse can show that the community (you, your spouse, and the property acquired by you and your spouse during marriage) substantially benefitted from the educational loan, the community may not receive a reimbursement .
    • For example, if you put your husband through medical school but have been enjoying a high standard of living due to his increased earning capacity, you may be out of luck as the non-student spouse. Nevertheless, every situation is unique, and depending on the specific circumstances of your case, reimbursement could still be on the table and it is worthwhile to investigate fully.
  • If the student-spouse took out the loan before the marriage, the debt incurred is probably the student-spouse’s separate property obligation, meaning that you will not be liable for repayment of that loan.**
  • If both spouses went to school during marriage, there could be a reduced right to reimbursement or offset of the resulting debt.
  • Additionally, the likelihood of reimbursement could be reduced for a non-student spouse if the education or training funded by that spouse enables the student-spouse to engage in gainful employment that substantially reduces the student-spouses need for financial support.
    • In the long run, keeping spousal support payments in mind, eating the educational debt could be best alternative when compared with financially supporting your ex for many years to come (or indefinitely).

There are several different ways the educational-loan story can pan out. Similar to other areas of family law, the outcome really depends on the facts of that case.

Needless to say, educational debt problems can be complicated under California law, and you may need legal assistance to ensure that debt distribution is fair at divorce. Contact the certified Family Law Specialists (as certified by The State Bar of California Board of Legal Specialization) at Lonich Patton Erlich Policastri to learn more about handling educational debt at divorce. Our attorneys have decades of experience handling complex family law matters.

Please remember that each individual situation is unique and results discussed in this post are not a guarantee of future results.  While this post may include legal issues, it is not legal advice.  Use of this site does not create an attorney-client relationship.

*Quoting California Family Code §2641.

**See California Family Code §2627.

https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png 0 0 David Patton https://www.lpeplaw.com/wp-content/uploads/2021/05/LPEP_PC.png David Patton2013-06-24 09:26:052021-12-22 21:23:53Educational Debt: Be Smart at Divorce
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Fax: (408) 553-0807
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San Jose, CA 95126

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