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Tax Traps to Avoid During Divorce

December 15, 2015/in Family Law /by David Patton

Many individuals negotiate and finalize their divorce without taking into account the tax impact of the decisions they are making. However, there are several tax traps that people could avoid while preparing to undergo divorce proceedings, which include their division of assets, their tax filing status, alimony, and child support.

One of the most hectic and stressful processes during divorce is the division of assets. However, instead of worrying about getting half of everything, there is something that individuals can do before they get divorced that would save them money. Before signing the divorce papers, the parties may transfer property tax-free using a property settlement agreement. Using a property settlement agreement, the ownership of major assets can either be signed over or the property can be sold and the proceeds can then be split amongst the parties.

Depending on an individual’s specific situation, certain filing statuses may be more beneficial than others. If an individual is legally divorced by December 31^st, then he or she must file either as “single” or “head of household.” These statuses may also be used if parties have a legally binding separation agreement, or if the parties have lived apart for at least the last six months of the tax year. However, if the parties are still legally married as of December 31^stand are still living together, then they must file as either “married filing jointly” or “married filing separately.” Generally individuals who file as either “head of household” and “married filing jointly” have lower taxes than those who file as “single” or “married filing separately.” So even though an individual may be going through divorce, he or she may still find it beneficial to file a joint tax return to save money.

Oftentimes, parties forget that alimony is considered taxable income for the recipient and an above-the-line tax deduction for the payer. It would be beneficial to the recipient of alimony to add his or her monthly alimony taxes into their monthly budget in order to understand how much alimony they really need.

While alimony can be considered in tax returns, child support payments cannot be included on the recipient’s tax return and they are not deductible to the payer. However, the payer of child support may remit the payments in the form of alimony in order to save money on taxes. Though the IRS allows this, any alimony that does resemble child support may not be fully deductible.

In an already costly process, these few tax tips may be able to help individuals save some money. While taxes may be the last thing on their mind, they should be prepared for these tax changes as soon as possible.

If you have any questions about taxes in the divorce process or any other issue, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. 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.

Source: http://www.irs.com/articles/how-to-avoid-the-tax-traps-of-divorce

Source: http://www.divorcemag.com/articles/5-tax-traps-to-avoid-during-divorce

Alternative Dispute Resolution in Marital Cases

October 27, 2015/in Family Law /by Gina Policastri

No one marries with the intent that they will divorce someday. However, there may be a point in a relationship when it is clear that marital dissolution (i.e., a divorce) is inevitable. How the parties proceed after this point can make the difference between an amicable, peaceful conscious uncoupling and a nasty, drawn-out battle.

Even though a trial, complete with a judge and court-room setting is glorified on television, most cases do not make it to trial and are more commonly resolved with a settlement. Contrary to what some believe, a divorce does not have to go to court. Parties looking to divorce may resolve their dispute through informal negotiations by using out-of-court alternative dispute resolution (commonly referred to as ADR). These proceedings between you and your spouse along with your attorneys promote voluntary settlement though they can also include traditional court proceedings.

Several ADR processes that family law attorneys use are mediation and arbitration in lieu of proceeding to trial. These forms of dispute resolution are gaining in popularity and are shifting the role divorce attorneys play from representing their clients in a legal battle to acting as divorce mediators who help their clients achieve their goals. In order to determine which approach might be right for you, it’s helpful to understand the process each one entails.

Mediation

The goal of mediation is for a neutral third party to help disputants come to a consensus on their own. In mediation, a professional mediator works with the conflicting sides to explore the interests underlying their positions. Parties in mediation find it effective at allowing them to vent their feelings and to fully explore their grievances.

Mediation sometimes requires the parties to sit in a room together, while other times the parties are in separate rooms and the mediator goes back and forth. This is typically referred to as Kissinger style shuttle diplomacy after it was used to describe the efforts of the United States Secretary of State, Henry Kissinger.

Mediation may be particularly helpful when parties have a relationship they want to preserve (e.g., family members, neighbors or business partners have a dispute) or when emotions are getting in the way of finding a resolution. An effective mediator can hear the parties out and help them discuss issues with each other in an effective and nondestructive manner.

Arbitration

Another form of alternative dispute resolution in family law cases is arbitration where a neutral third party serves as a judge who is responsible for resolving the dispute. The arbitrator listens as each side argues their case and presents relevant evidence, and then renders a binding or non-binding decision, depending on the type of arbitration entered into. Arbitration is less formal than a trial, and the rules of evidence are often relaxed.

Although used more often in civil litigation, arbitration is less often used in divorce cases. In marital dissolution cases, an arbitrator’s decision is not necessarily final, and the parties may still be able to resolve key issues before a court at a later date. It is important to keep in mind that most out-of-court alternatives for resolving a divorce will still require some level of court approval.

Litigation

Perhaps the most recognizable form of dispute resolution, litigation involves two parties facing off before a judge or judge and jury (Currently, Texas and Georgia are the only states that offer spouses the opportunity to litigate their divorce before a jury). During the trial of a divorce case, the attorney’s for each party present evidence on contested issues while the judge (or jury) is responsible for weighing that evidence and making a ruling.

Typical issues that arise in litigation are the determination of the separate property of a party, how to divide community property and liabilities as well as determination of the validity of a pre- or post-nuptial agreement. If children are present the custody arrangement, child and spousal support as well as the time sharing schedule of the children are often areas prone to increased litigation.

It is important to keep in mind that all of the alternative dispute resolution processes are available in settling any ongoing dispute such as property division, child custody or support. However, the effectiveness of these alternatives in contrast to a full trial depend on factors such as how willing the parties are to work on resolving these issues and the general degree of animosity between them.

These choices can make the decision to divorce a complex field. If you are considering filing for divorce, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. Also, 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.

Source: http://www.pon.harvard.edu/daily/dispute-resolution/what-are-the-three-basic-types-of-dispute-resolution-what-to-know-about-mediation-arbitration-and-litigation/?mqsc=W3814478&utm_source=WhatCountsEmail&utm_medium=PON%20Harvard+Neg%20Insider%20(Tuesday/Thursday)%20Standard%20Rule+Neg%20Insider%20(Tuesday/Thursday)%20Standard%20Rule&utm_campaign=Neg_WIR_10242015

The Upcoming W.N.B.A. Battle: Setting Precedent for Same-Sex Couples with Children

July 1, 2015/in Family Law /by Mitchell Ehrlich

W.N.B.A. players Brittney Griner, last season’s defensive player of the year, and Glory Johnson, two-time All-Star, had a controversial relationship leading up to their marriage on May 8, 2015. Even more provocative are the actions taken by Ms. Griner a month after the couple was married and a day after Glory Johnson announced her pregnancy.

On April 22, 2015, the couple was arrested following a domestic disturbance at their home. As a result of the fight, Ms. Griner received a bite wound on her finger and scrapes on her wrist, and Ms. Johnson received a cut above her lip and a concussion. Ms. Griner pleaded guilty to misdemeanor disorderly conduct, while Ms. Johnson pleaded not guilty and her case was dismissed.

At a time of increased scrutiny of domestic violence and athletes, the league suspended both players for seven out of their thirty-four game season— the longest in league history. According to Laurel J. Richie, president of the W.N.B.A., “The W.N.B.A. takes all acts of violence extremely seriously. It is our strong belief that violence has absolutely no place in society, in sports or in this league. As president, it is my reasonability to protect the league and uphold its values. Our athletes represent the W.N.B.A., and they all must abide by the league’s standards of conduct. In this case, Brittney and Glory failed to do so, and that is unacceptable.”

Despite these troubles, the couple proceeded to marry. However, only 28 days later, Ms. Griner filed for an annulment. Ms. Griner made the following statement, “I can confirm that today [June 5^th] I filed for an annulment. In the week prior to the wedding, I attempted to postpone the wedding several times until I completed counseling, but I still went through with it. I now realize that was a mistake.” In response, Ms. Johnson’s agent, D.J. Fisher, stated that Ms. Johnson “loves Brittney and made a huge sacrifice to carry a child, put her career on hold, invest in their relationship and their future.”

It is anticipated that the couple will be heading for a battle as they have vastly conflicting opinions of Ms. Johnson’s impending motherhood. Ms. Griner claims that she does not even know when Ms. Johnson became pregnant and she has no biological connection to the baby. Ms. Johnson claims that Ms. Griner was a “willing participant, consenting and signing all the necessary documents” for the in vitro fertilization.

The law has been changing in regards to same-sex couples, most recently with the United States Supreme Court finding that the Constitution guarantees a right to same-sex marriage. Courts have been trying to navigate the waters in terms of the rights and privileges of same-sex couples. In recent years, there have also been developments relating to their child support obligations.

Courts have asserted a number of bases for “an obligation on the part of the parent’s former same-sex partner to provide financial support for the child,” including a finding of an obligation based at least in part on a contract or promise. In Karin T. v. Michael T., the parties had two children by means of artificial insemination. Before this procedure, “the partner executed an agreement stating[:] ‘a. That such child or children so produced are his own legitimate child or children and are the heirs of his body, and b. That he hereby completely waives forever any right which he might have to disclaim such child or children as his own.’” Additionally, the parties had lived together in the same household for six years and both contributed to the support of the family and the children. The court found under these circumstances and the provisions of the agreement between the parties there was an enforceable contract. The court stressed that “the document that was signed by the partner, by which these children were brought into the world, gave rise to a situation that needed to provide these two children with remedies.” To hold otherwise, the court stated, would allow the partner to escape her responsibilities in supporting the children.

As the law continues to shift in regards to same-sex marriages, the very public Griner-Johnson separation will likely bring attention to child support obligations of same-sex partners. If Ms. Griner “fights paying child support, it could set a precedent in the state for same-sex couples.” As Arizona lawyer Claudia D. Work stated, “This is going to come down to whether the court will hold Ms. Griner to contractual promises.”

If you have any questions about same-sex marriage or any other issue, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. 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.

Source: Julie A. Nice, Symposium, The Descent of Responsible Procreation: A Genealogy of an Ideology, 45 Loy. L.A. L. Rev. 781, 798 (2012).

Source: Child Support Obligations of Former Same-Sex Partners, 5 A.L.R.6th 303 (Originally published in 2005).

Source: http://www.nytimes.com/2015/05/16/sports/basketball/wnba-suspends-brittney-griner-and-glory-johnson-in-domestic-violence-case.html?_r=0

Source: http://www.huffingtonpost.com/2015/06/05/wnba-brittney-griner-annul-marriage_n_7523708.html

Source: http://www.bostonherald.com/inside_track/celebrity_news/2015/06/wnba_war_the_day_after_glory_johnson_reveals_shes_pregnant

Trouble in Springfield: The Simpsons and Changing Family Structures

June 22, 2015/in Family Law /by Gretchen Boger

The Simpsons has become a symbol of American Television with its hysterical spoofs of current events and iconic characters. After 26 seasons, The Simpsons will be addressing a new topic in its 27^th season that has had a steady increase in American life- legal separation and divorce. Executive producer Al Jean told Variety that in its new season, Springfield’s supercouple would be splitting with the appearance of a surprising other woman. “In the premiere [of the 27^th season], it’s discovered after all the years Homer has narcolepsy, and it’s an incredible strain on the marriage,” said Jean. “Homer and Marge legally separate, and Homer falls in love with his pharmacist, who’s voiced by [HBO’s Girls creator and star] Lena Dunham.”

The Simpsons separation is not unusual in modern society. In the United States alone, about 40 to 50 percent of married couples divorce and the divorce rate of subsequent marriages are even higher. In the state of California, the divorce rate per year has grown to every 8 out of 1,000 couples divorcing. Consequently, these rates have led to a change in the American “family values.”

There are many who still fight for the return of the “good old days” and the traditional two- parent household. However, recent research cast doubt as to whether most Americans agree that a healthy family must have the traditional two-parent household. The “reality is that we live in an era of change and controversy with respect to many kinds of values, including values about family life.” In a survey conducted by the Families and Work Institute, a nonprofit New York research group, only two percent of the women and one percent of the men questioned define family values as being about the traditional nuclear family. Additionally, nine out of ten women defined family values as loving, taking care of and supporting each other, knowing right from wrong and having good values, and nine out of ten said that society should value all kinds of families.

In its 27^th season premiere, The Simpsons will reflect this indication of changing family values in American society as it is becoming more prevalent in today’s world. But let’s hope that Springfield’s favorite couple reunite.

If you have any questions about legal separation, divorce, or any other issue, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. 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.

Source: http://www.cnn.com/2015/06/10/entertainment/homer-marge-split-simpsons-feat/index.html

Source: http://www.apa.org/topics/divorce/

Source: http://divorce-laws.insidegov.com/l/5/California

Source: Twila L. Perry, Family Values, Race, Feminism, and Public Policy, 36 Santa Clara L. Rev. 345 (1996).

*Since the writing of this post The Simpsons divorce rumors have been invalidated

Common Fears about Divorce in California

June 18, 2015/in Family Law /by Michael Lonich

For the longest time, your spouse was your world. Whenever you had an exciting day, an interesting moment or fun experience you couldn’t wait to share it with them. They were your life, and they were enough.

Today, everything is different.

You and your significant other argue – constantly. It’s been like this for a while and it hasn’t been getting better. You wonder how and why it got to this point. Is it you or is it them? Wherever the problem is, it does not seem resolvable.

The decision to divorce can be one of the most difficult and emotional decisions to make. Before seeking a divorce, it is important to consider that there are many reasons to try and save a marriage, especially when there are children involved. Counseling and hard work can make a considerable difference, even if the circumstances seem bleak.

Unfortunately, often one or both parties see divorce as the only way to legally end a marriage which emotionally ended long ago. This is a personal decision for each party involved. Once the decision is made, each step afterwards may be clouded in mystery, especially if the divorce process is new.

Some of the most common questions regarding divorce are:

How do I find a lawyer that is right for me?
How much will it cost?
What steps need to be taken?
How do I begin the divorce process?
What should I expect as I go through this process?
Who gets the kids?
What am I legally entitled to get under California law?
Is divorce the same for a married same-sex couple?

If divorce is inevitable for your relationship, do not let fear and doubt paralyze you from making the best choice for you. Divorce is hard – emotionally, mentally, physically, spiritually, financially and socially. It will impact each aspect of your life, from your immediate family to your extended family and friends. Seeking the advice of a professional may not only alleviate fears and doubts about the process, but will also educate you about the process so you can make better decisions for yourself and your family.

If you are considering divorce or have questions about divorce planning, 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 offer 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.

Source: http://www.huffingtonpost.com/diane-l-danois-jd/mistakes-we-fear-well-mak_b_3721696.html

Domestic Violence and The Rebuttable Presumption

June 17, 2015/1 Comment/in Family Law /by Gretchen Boger

Acts of domestic violence so often occur behind closed doors. Domestic violence has now been recognized as a “public policy issue with major implications for the health and safety of women and children.” Many surveys have projected domestic violence as the number one cause of injury to women in the United States. Unfortunately, the nature of the criminal justice system makes domestic violence cases harder to prosecute and history has shown that there has been little communication between the prosecutors, police, victim advocates, and the courts. Because of this lack of communication, “the chances are good that some of these problematic cases will slip between the cracks and that battering will continue, sometimes with tragic result.” For this reason, it is not surprising that many victims feel hopeless and decline to report incidents of domestic violence.

Given the faults of the criminal justice system, many victims find themselves without anywhere to turn. Unfortunately, the domestic violence continues and those with children may also suffer. Victims of domestic violence develop post-traumatic stress disorder, anxiety, traumatization, or suffer from some other psychological/physiological effect resulting from the abuse. These negative effects of abuse can cause the victim to experience a variety of symptoms that have a direct bearing on the capacity of her parenting. For example, victims may experience emotional numbness or withdrawal from their children, leaving the children to feel even more isolated in an already distressing situation. Children may feel as though the victim parent does not care about them, when this may be far from the truth. Consequently, these negative effects of abuse compromises the victim’s parenting.

The question then becomes, what happens in child custody cases? The standard used by all family court judges, is the “best interest” of the child rule. However, deciding what is in the “best interest” of the child is often difficult depending on the particular set of circumstances. In a domestic violence situation, where the mother’s parenting was compromised due to years of abuse, but the father has shown that he is still a capable parent- who should be awarded custody? What is in the child’s best interest when an abusive father and an emotionally distant mother seek custody? “Taking custody away from an abused mother seems to penalize her for being the victim of domestic violence, and it discourages other mothers from seeking help or reporting domestic violence for fear of losing custody of their children.” Apart from the effect on the victims, awarding custody to the abusers also teaches children harmful lessons.

The California Legislature has recognized the potential problem that domestic violence can create in the family courts. To address this issue, the California Legislature drafted California Family Code § 3044. For traditional child custody cases, the court is to determine what is in the child’s “best interest” by considering several factors, such as the health, safety and welfare of the child, and the amount of contact that the child has with both parents. In domestic violence cases, the court must also consider any history of spousal abuse. Although the court is given discretion in how much weight they accord each factor, the factors are crucial in helping to guide judges on issues that they should consider in assessing a child’s best interest.

In addition to the factors, the California Legislature did specifically state that domestic violence is detrimental to the well-being of a child. This was codified in California Family Code § 3044. According to this section, if domestic violence is found to have occurred within the previous five years of the custody evaluation, then there is a rebuttable presumption that awarding custody to the abuser is detrimental to the “best interest” of that child. The court must also consider seven factors in determining whether the presumption has been overcome. These factors include, but are not limited to, whether the abuser is restrained by a protective order and has complied with its terms and conditions, whether the abuser has completed a program of alcohol or drug abuse counseling, and whether the abuser has committed any additional acts of domestic violence since the start of the custody case.

Additionally, under this section, a person is found to have perpetrated domestic violence when he or she either “intentionally or recklessly caused or attempted to cause bodily injury, or sexual assault, or to have placed a person in reasonable apprehension of imminent serious bodily injury to that person or to another. . . .” It also includes behavior including, but not limited to, “threatening, striking, harassing, destroying personal property or disturbing the peace of another, for which a court may issue an ex parte order pursuant to § 6320 to protect the other party seeking custody of the child or to protect the child and the child’s siblings.”

With the rebuttable presumption, the hope is that victims will triumph in seeking custody of their children as they seek to regain control of their lives.

If you have any questions about this rebuttable presumption or any other issue, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. 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.

Source: MICHELE C. BLACK ET AL., THE NATIONAL INTIMATE PARTNER AND SEXUAL VIOLENCE SURVEY: 2010 SUMMARY REPORT 54 (2011), http://www.cdc.gov/violenceprevention/pdf/nisvs_report2010-a.pdf.

Source: Patrick F. Fagan, Anna Dorminey, & Emily Hering, The Effects of Family Structure on Child Abuse, in CHILD ABUSE, FAMILY RIGHTS, AND THE CHILD PROTECTIVE SYSTEM: A CRITICAL ANALYSIS FROM LAW, ETHICS, AND CATHOLIC SOCIAL TEACHING 155, 171 (Stephen M. Krason ed., 2013).

Source: Alytia A. Levendosky & Sandra A. Graham-Bermann, Behavioral Observations of Parenting in Battered Women, 14 J. FAM. PSYCHOL. 80, 81 (2000).

Source: Cal. Fam. Code § 3020 (West 2000).

Source: Megan Shipley, Note, Reviled Mothers: Custody Modification Cases Involving Domestic Violence, 86 Ind. L. J. 1587, 1589 (2011).

Source: Symposium, Domestic Violence, Child Custody, and Child Protection: Understanding Judicial Resistance and Imagining the Solutions, 11 Am. U. J. Gender Soc. Pol’y & L. 657 (2003).

Source: Cal. Fam. Code § 3011 (West 2013).

Source: Cal. Fam. Code § 3044 (West)

Source: Amy B. Levin, Comment, Child Witnesses of Domestic Violence: How Should Judges Apply the Best Interest of the Child Standard in Custody and Visitation Cases Involving Domestic Violence?, 47 UCLA L. Rev. 813, 826 (2000).

Mom and Dad Have Something to Tell You: Talking to Kids about Divorce

June 8, 2015/in Family Law /by Mitchell Ehrlich

With forty to fifty percent of married couples proceeding in marriage dissolution, thousands of children experience the stress of divorce each year. While the adults are navigating their own emotions, children are also struggling with their own feelings. Many of these children get lost in the process as their parents often find it difficult to talk to them about divorce.

When parents decide to break the news to their children, it is important to leave any feelings of anger or blame out. Practicing the conversation may be helpful as to release any feelings of anger before talking with them. If possible, parents should also break the news together to avoid confusion. Telling children together also helps to preserve the child’s sense of trust in both parents.

The conversation should also be age appropriate. In other words, “[t]he discussion should fit the child’s age, maturity, and temperament.” It should also always include the following message: “What happened is between mom and dad and is not the child’s fault.” It is imperative to include this message as most children will feel that they are to blame for the separation, when this may be far from reality.

It is also vital to be prepared to handle children’s reactions to the news. For the children who become upset, parents can let them know that they care about these feelings and reassure them that their feelings are understandable. Some children may not react immediately. For these children, parents can let them know that this is also okay and that they will be there for them when they are ready to talk.

While there is no easy way for parents to break the news to their children, there are important things that both parents can do to help guide their children through this challenging time. The following is a list of helpful tips:

· Be truthful and discuss changes with your children.

· For younger children, have a simple and to-the-point conversation.

· Remember to keep legal talk, heated discussions, and visible conflict away from the children.

· It is important to keep each parent involved in the children’s lives.

· Try to minimize any disruptions in their daily routines.

· Restrict negative talk to private therapy sessions or conversations with friends outside of the home.

· Encourage children to share their feelings.

· Remind your children how much you love them.

· Most importantly, support your child as he or she is navigating through the process.

The Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. If you have any questions about helping your children through this process, please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. 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.

Source: http://kidshealth.org/parent/positive/talk/help_child_divorce.html

Source: http://www.redlandsdailyfacts.com/social-affairs/20150530/the-ins-and-outs-of-talking-to-kids-about-divorce

Source: http://www.babycenter.com/0_how-to-tell-your-child-youre-getting-divorced_3657051.bc

Automatic Temporary Restraining Orders or ATROs: Positive or Negative

May 22, 2015/in Family Law /by Riley Pennington

While there are marriages that end on good terms and amicably, this is a rarity in today’s world. The “ideal” divorce is hard to find and in reality, most marriages do not dissolve so easily, and from the moment a spouse is served, their emotions can get the best of them. They may act out- draining community accounts, cancelling joint benefits, or even threatening to withhold or leave with the parties’ children. This is when Automatic Temporary Restraining Orders, or “ATROs” come into play. Unlike a traditional restraining order which protects against other people, ATROs serve to protect the status quo of the marriage.

Specifically, California Family Code § 2040(a), which outlines the contents of ATROs, lists the following that both parties are restrained from exploiting during the dissolution process:

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;
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 requiring each party to notify the other party of any proposed extraordinary expenditures at least give business days before incurring those expenditures and to account to the court for all extraordinary expenditures made after service of the summons on that party;
cashing, borrowing against, canceling, transferring, disposing of, or changing the beneficiaries of any insurance or other coverage, including life, health, automobile, and disability, held for the benefit of the parties and their child or children for whom support may be ordered;
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. [1]

As one of the obligations when filing for dissolution of marriage, the Petitioner must file and serve a Summons and a Petition to put the other party on notice that they are being divorced. This Summons, Form FL-100[2] in California, lists the ATROs or the “Standard Family Law Restraining Orders” in their entirety. The ATROs binds both parties and becomes effective immediately upon the service of the Summons.

ATROs impact to main issues in a divorce proceeding: travel with children and finances. ATROs temporary “freezes” both parties financial assets and forbids travel with children outside of the state of California without the prior written consent of the other party, or a court order.

An interesting case involving the effect of ATROs in the marital dissolution proceedings is of John McTiernan, director of big Hollywood films such as Bruce Willis’s Die Hard and his ex-wife, Donna Dubrow. [3] During the course of their dissolution proceedings, McTiernan sold certain community property stocks, which he partially used to pay community expenses. However, ATROs forbids the transfer or disposing of any property, “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.” The court found that although he did not sell these stocks in ill will or maliciously, it was nevertheless a violation of ATROs because he could have consulted his wife or obtained court approval. Since he did neither, the court awarded Dubrow with restitution damages resulting from the sale of the stocks.

Essentially, ATROs protect both spouses and any disruptions to their “financial status, home life, and relationships with children while in the process of dissolving their marriage.”[4] If either party were worried about either finances or their relationships with their children, these items should be prioritized during the process. The concerned party may want to immediately file for temporary custody orders or even reach out to the other party about accounts and assets. In an already upsetting and tense situation, ATROs helps to safeguard a degree of respect between the divorcing couple and may even relieve some of anxiety and mistrust that so often results in the marriage dissolution process. For these reasons, ATROs are an invaluable tool during divorce proceedings. [5]

If you are considering filing for divorce at any time of the year and have questions regarding ATROs, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. 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] Cal. Fam. Code § 2040(a) (West).

[2] http://www.courts.ca.gov/documents/fl110.pdf

[3] In re the Marriage of John McTiernan and Donna Dubrow (2005) 133 Cal. App. 4th 1090.

[4] Dana Warstler, A History of the Automatics TROS in Family Code 2040(A), 11 J. Contemp. Legal Issues 191, 191 (2000).

[5] http://www.more.com/relationships/marriage-divorce/what-divorcing-women-need-know-about-automatic-temporary-restraining-?page=2

Billionaire’s divorcing wife wants at least $1 million per month

March 6, 2015/in Family Law /by Mitchell Ehrlich

How difficult would it be to spend $1 million dollars per month? In divorce proceedings that initiated last July, the wife of hedge fund manager Ken Griffin says that is precisely the amount that she requires to maintain her standard of living.

What are some of these expenses? They include:

– $2,000 a month for stationary

– $6,800 a month for groceries

– $7,200 a month for restaurant meals

– $8,000 a month for gifts

– $60,000 a month for an office and professional staff

– $160,000 a month for hotels

– $300,000 a month for a private jet

She makes this claim despite the presence of a prenuptial agreement that she signed in 2004. Ms. Dias-Griffin is seeking to have the prenuptial agreement nullified on the basis of duress and coercion. Mr. Griffin argues that she was fully aware of what she signed. The terms of the prenup included that she received $25 million upon signing the document, $1 million every year thereafter and Ms. Griffin had the advice of independent counsel – namely three prominent law firms – when signing.

In papers filed in Illinois state court, Mr. Griffin claims he already paid Ms. Dias-Griffin some $37 million in payments under the premarital agreement, in addition to giving her a 50% stake in the couple’s $11 million Chicago home. Ms. Dias-Griffin claims that this would only leave her with 1% of Mr. Griffin’s net worth and should be voided since she signed it under duress.

“Anne failed in her initial effort to obtain these things from Ken in the name of maintaining the ‘status quo,’” the filing reads, according to CNBC. “Now she claims that these same expenses are in fact ‘child support.’”

If you don’t know who he is, Ken Griffin is one of the world’s wealthiest men. As the founder and CEO of Citadel, a global investment firm, Forbes estimated his net worth at a value of $5.5 billion in 2014. Mr. Griffin married Anne Dias-Griffin in July of 2004. Ms. Griffin is also a founder of the Chicago-based hedge fund firm Aragon Global Management. Together, they have three children each less than 10 years old.

Typical Components of a Prenuptial Agreement

A prenuptial agreement can be a powerful tool in limiting property rights and alimony. A properly drafted prenup may be impossible to set aside. While the requirements for properly drafted prenuptial agreements vary from state to state, some of the general requirements in California for a valid prenuptial agreement under the California Premarital Agreement Act are:

– They must be executed voluntarily;

– Each party had independent legal counsel (or properly waived that right);

– Had legal capacity to enter into the agreement;

– There was no fraud, duress, or undue influence;

– A seven day waiting period between being presented with the agreement and signing it;

– Any other factor a court deems as relevant.

These are not all of the requirements, and each of the above mentioned requirements have elements that must be met in-and-of themselves. The Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. If you are interested in learning more about prenuptial or post-nuptial agreements, please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information.

Divorce Month is Half Over

January 16, 2015/in Family Law /by Riley Pennington

This coming Monday, January 19, 2015, has been marked as “blue Monday” or the unhappiest day of the year. Experts predict the following factors contribute to blue Monday: weather conditions, debt level, time since the holidays, time since failing our new year’s resolutions, low motivational levels, and the feeling of a need to take action. On a similar note, every January also experiences a noticeable increase in the number of individuals seeking divorce advice and ultimately filing for divorce. The president of the American Academy of Matrimonial Lawyers says the number of divorce filings is one-third more than normal, starting in January and continuing until early March. Like blue Monday, this trend is rather melancholy but makes sense for a couple of reasons.

First, an unhappy spouse may want to wait until the new year to file for divorce in order to avoid the associated social stigma. Most spouses probably do not want to explain why their spouse was served with divorce papers right before the holidays, a time traditionally for family. Additionally, waiting until January avoids “ruining” Christmas for the children and keeps the status quo until the children return to school.

Further, a new year comes with new year’s resolutions, most of which are aimed at achieving personal happiness. If a spouse is in an unhappy marriage, then a divorce may be an appealing option.

Lastly, it may be logistically easier to wait to file until the holidays are over. This may streamline the divorce process, making it more likely that the divorce will be finalized before the end of the year. Courts often experience backlog during the holiday season, as spouses rush to finalize their divorce before January for tax purposes (they want to file as single for the new year).

Whatever the reason, if you are in an unhappy marriage right now, you are probably not alone. On a positive note, many spouses have completely different and new lives in front of them after divorce. Hence, January is also the busiest time of the year for online dating websites, which experience a similar 38% increase in registrations from December through February. According to a study published in the National Academy of Sciences, around one-third of American marriages now begin online and are less likely to end in divorce than those who did not meet online.

If you are considering filing for divorce at any time of the year, the Certified Family Law Specialists at Lonich Patton Erlich Policastri have decades of experience handling complex family law matters. Please contact the Certified Family Law Specialists at Lonich Patton Erlich Policastri for further information. 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.