The Law Offices of Keith F. SimpsonManhattan Beach Family Law Attorney | Divorce Lawyer Los Angeles2024-03-17T21:31:08Zhttps://www.simpsonlaw.net/feed/atom/WordPress/wp-content/uploads/sites/1402659/2022/03/cropped-KFS-site-icon-32x32.jpgOn Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481632024-03-17T21:31:08Z2024-03-17T21:31:08ZIn a high-net-worth divorce, the stakes can be substantial. Absent a valid prenuptial or postnuptial agreement, these kinds of divorces can often turn contentious and bitter when it comes time to divide the marital assets.
While most couples tend to focus on the highly visible assets, like real estate, investments and business holdings, there are a lot of valuable assets that can easily get overlooked. Consider these:
Intellectual property rights
Patents, copyrights, trademarks and royalties derived from one spouse’s creative works or inventions can possess immense monetary potential. However, these assets can easily slip through the cracks during divorce proceedings, especially if it’s believed that the creative spouse owns all that they produce as separate property instead of recognizing that their creations are part of the marital estate.
Deferred compensation and stock options
Executives and high-earning professionals often receive compensation packages that include stock options, restricted stock units (RSUs) and deferred bonuses. These assets can hold substantial future value – even if they’re largely worthless at the time of the divorce. Failing to consider the implications of deferred compensation and unvested stock options can result in inequitable settlements, depriving one spouse of their rightful share of the future earnings those stock options may bring.
Airline miles and credit card points
Airline miles and credit card points may not be immediately apparent as marital assets, yet they can represent a substantial portion of the couple's combined wealth, especially in cases where one spouse frequently travels for work or accumulates significant credit card rewards. In many cases, their value can total into the thousands.If you’re approaching a divorce that involves a lot of assets, it pays to scrutinize your financial holdings very carefully – and experienced guidance can make it a lot easier not to leave money on the table.
]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481612024-03-06T22:46:06Z2024-03-06T22:46:06Zfinancial considerations to keep in mind when planning for divorce.
Understand your assets and liabilities
Before proceeding with a divorce, it's essential to have a clear understanding of all marital assets and liabilities. This includes property, investments, retirement accounts, debts and any other financial obligations. Hiring a financial advisor or accountant can help ensure that nothing is overlooked.
Assess your income and expenses
Both spouses should evaluate their individual incomes and expenses post-divorce. This assessment will help in determining the financial feasibility of living separately. Understanding the ongoing financial obligations and potential lifestyle changes is crucial for realistic planning.
Alimony and child support
Alimony (spousal support) and child support are significant financial considerations in many divorce proceedings. Depending on the circumstances, one spouse may be required to provide financial support to the other or contribute to the upbringing of children. Understanding the legal implications and potential tax consequences of these payments is important.
Asset division
The equitable distribution of assets is a complex process in divorce cases. It involves dividing marital property fairly between spouses. Factors such as the duration of the marriage, contributions to the marriage and future financial needs are considered. Seeking legal advice can help to ensure a fair division of assets.
Health insurance and benefits
After divorce, spouses may lose access to health insurance and other benefits provided by their partner's employer. Understanding the options for obtaining alternative coverage, such as COBRA or individual plans, is crucial for maintaining financial stability.
Proper financial planning is essential when preparing for divorce. By addressing these important considerations, individuals can navigate the process more effectively and better secure their financial well-being moving forward.]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481582024-02-20T04:11:02Z2024-02-20T04:11:02Zcommunity property laws apply to executive pay and benefits can help ensure that your settlement is balanced and equitable, regardless of whether you or your spouse is the one with these assets.
Marital vs. separate property: A refresher
In California, any income earned during the marriage, regardless of who earned it, is joint marital property -- even complex executive benefits. That means it is subject to division under state law.
The assets spouses owned before marriage or inherited individually remain separate property, unless they’ve been commingled, and not generally subject to property division.
Valuing executive compensation
Executive compensation often involves assets with fluctuating values or vesting periods, making accurate valuation crucial.
Stock options and restricted stock have uncertain future values due to vesting periods and market fluctuations. They require expert appraisals to determine a fair market value at the divorce date.
Courts value assets like deferred compensation and bonuses based on their projected payout dates and vesting schedules, accounting for future uncertainties.
Dividing executive packages
As you may know, California law aims for an equal division of community property, but other factors can influence the outcome. For example, the contents of a premarital agreement or a spouse's alimony needs can lead to deviations from the 50/50 split.
Creative problem solving
Remember, every divorce is unique and can benefit from an innovative approach to resolving contentious matters. With experienced guidance and a willingness to explore progressive solutions, you can emerge from your divorce proceedings with a truly fair property settlement.]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481562024-02-07T16:42:03Z2024-02-07T16:42:03Zsource of danger, conflict or distraction. Establishing a unified approach to technology management is crucial.
Creating a technology plan
Developing a shared technology plan can effectively align expectations and rules regarding children's use of tech devices. This plan should cover various aspects, such as the age-appropriateness of devices, what apps and websites are allowed and how to handle online safety and privacy. By discussing and agreeing on these topics, co-parents can present a united front, making it easier for children to adapt to and respect the established boundaries.
Open communication and flexibility
Open communication between co-parents is vital when managing children's use of technology. This includes regularly updating each other on new apps or games that children may be interested in and any concerns regarding their online behavior.
Flexibility is also essential. As children grow, their needs and challenges will change, necessitating adjustments to the technology plan. Regular check-ins can help co-parents stay on the same page and adapt their strategies as needed.
Certain technology guidelines can be built into a parenting plan, so both parties have them in writing. Getting this together as quickly as possible after a separation can benefit children because they can learn the new guidelines and become accustomed to them quickly as they’re adjusting to all other changes in their family dynamic instead of being forced to come to terms with new guidelines in a piecemeal fashion.]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481542024-01-31T19:35:43Z2024-02-01T19:35:30ZProfessional practice valuation
Unlike many other professions, physicians often have their own practices. They involve intricate financial structures. Determining the value of a medical practice requires a thorough understanding of the unique aspects of the health care industry.
Spousal support and high-earning potential
Doctors tend to earn a lot of money. The court takes into account the standard of living during the marriage, and for doctors, this may involve a significant income. Calculating spousal support becomes nuanced. It considers the financial implications of a medical career, including the potential for future income growth.
Parental responsibilities and demands of the medical profession
For doctor-parents, finding a balance between demanding medical careers and parental responsibilities adds complexity to divorce. A parenting plan that accommodates irregular work hours, on-call duties and the demands of the medical profession is important. This ensures that both parents can actively participate in the upbringing of their children.
Impact on licensing and credentialing
The divorce process may raise concerns about licensing and credentialing for doctors in California. The state's medical board may scrutinize divorce proceedings, especially if there are allegations of professional misconduct or concerns about a physician's ability to practice medicine effectively.
Health care benefits and insurance
Comprehensive health coverage is important, especially in the medical field. Ensuring the continuation of benefits for both spouses may require careful negotiation. Addressing these concerns early in the divorce process helps mitigate potential disruptions to medical care.
Addressing these challenges requires careful navigation and strategic planning to achieve a fair and equitable resolution for all parties involved.]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481522024-01-25T18:20:44Z2024-01-25T18:20:44Zaffect their credit involves strategic decisions about assets and liabilities.
Strategic asset liquidation
Selling assets during a divorce can be a strategic move to manage joint debts. Liquidating assets like property, vehicles or investments provides funds to pay off shared debts. This approach can be particularly beneficial in preventing missed payments on joint accounts, which can negatively impact both parties' credit scores.
Handling joint debts
Joint debts should be spelled out explicitly in the divorce agreement. If possible, paying off joint debts before finalizing the divorce is ideal. If that isn’t feasible, converting joint debts to individual obligations can protect each party's credit. This might involve refinancing a mortgage or auto loan in one person's name or transferring credit card balances.
Credit monitoring and management
Regularly monitoring credit reports can help identify any discrepancies or unexpected changes in credit score. This is especially important if an ex-spouse is responsible for paying debts that are still in both names.
Avoiding financial overextension
After the divorce, it is important to avoid taking on new debts that could strain finances. This is particularly crucial if assets have been liquidated to settle joint debts. Careful budgeting and financial planning are key to maintaining a healthy credit score after divorce. Understanding how property division options can affect the future is crucial for anyone going through a divorce.]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481492024-01-10T03:17:54Z2024-01-10T03:17:54ZWhen considering the factors that may contribute to the odds that your marriage ends in a divorce, make sure you think about your commute. How far you drive to work every day – and how much time you spend on the road – can be a major predictor of divorce.
For example, one report claimed there is a 40% increase in divorce odds when one of the partners has a commute that exceeds 45 minutes. This is especially true right at the beginning of this arrangement. If couples can get through five years or more, then that falls all the way to a 1% increase in divorce odds. But many couples will split up long before that five-year point, so why is this?
Less time together
The biggest issue is just that the couple has less time together if one person is spending so long on the road. Their commute could take up an hour and a half of their life every day, which is time they don’t get to spend with their spouse or their children. They may also get home feeling stressed out from being stuck in rush-hour traffic. This takes away from the quality of their interactions with their family members even after they have returned from that commute.
Money and happiness
The main reason that someone often accepts a job with a long commute is that they’re going to be making more money. They think this will relieve some stress and make them happier. But, depending on the amount of money they will earn at their new job, it may not be worth it. For instance, some reports claim that a salary that is 30% higher is not worth the extra hour of commuting, but that a 40% salary increase would be the minimum necessary.In other words, many people realize that the new job hasn’t made them happier, but it has taken its toll on their relationship. If this happens to you, carefully consider the legal steps you’ll need to take while ending your marriage.]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481472023-12-26T15:49:10Z2023-12-26T15:49:10Zintangible assets that may be concealed.
In the pursuit of an equitable division of assets, forensic accountants may play a pivotal role. Their knowledge extends to uncovering hidden income, undisclosed accounts and intricate financial structures. If you are concerned about the concealment of intangible assets on the part of your spouse, it may be time to speak with your attorney about engaging the services of a forensic accountant.
Intellectual property
In the digital age, intellectual property (IP) has emerged as a silent powerhouse. From trademarks and patents to copyrights and trade secrets, these intangible assets can significantly contribute to a marital estate. Uncovering the true worth of these assets demands a keen eye and specialized skill.
Goodwill
Goodwill, often reflected on financial statements, goes beyond mere accounting. It encapsulates the reputation, customer loyalty and overall market perception of a business. In high-asset divorces involving shared business interests, understanding the nuances of goodwill becomes paramount. Valuation experts can decipher the intangible value embedded in a brand, helping ensure an accurate representation during divorce proceedings.
Digital assets
As the digital landscape evolves, so does the nature of assets. Cryptocurrencies, digital currencies and virtual assets add a layer of complexity to high-asset divorces. Given their decentralized and often anonymous nature, tracing and valuing these digital assets require specialized knowledge. Additionally, a spouse’s online presence may unveil a wealth of information. Digital forensics experts can analyze electronic devices, social media accounts and online transactions to trace hidden assets.
Navigating the complexities of high-asset divorces demands a thorough understanding of intangible assets, partially because they can easily be hidden. From intellectual property and goodwill to digital assets and forensic examinations, every concern may play a crucial role in achieving a fair and just division of resources.]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481452023-12-14T15:07:58Z2023-12-14T15:07:58ZEven in the best of times, raising kids is never a walk in the park. Things become even more challenging when you are trying to co-parent with your ex following a separation or divorce. Creating an effective parenting plan is, without a doubt, the path to ensuring that your child receives the love and care they deserve from both parents. As you can imagine, however, not all parenting plans deliver the results hoped for. Here are two questions that can help you determine if your parenting plan is no longer working.
Is the child receiving adequate care?
The whole point of having a parenting plan is addressing the best interests of the child following the divorce. If you believe the plan in place is no longer meeting this goal, then you need to review and modify it. An example of this would be a change in the work schedule that makes it difficult for visitation to be realistic per the terms of the original plan. For the court to approve a modification request, however, you must demonstrate that the change in schedule in question is substantial and that you are not able to spend time with the child or make them available to the other parent.
Is your ex undermining the plan?
You may have worked out a parenting plan on your own. However, it is still binding as long as the court adopts and incorporates it in the final custody order. Thus, both parties are expected to honor its terms. If your ex is undermining a parenting plan, then it clearly isn’t working. However, you cannot take matters into your own hands. You must seek the court’s intervention for the possibility of a modification.A properly drafted parenting plan ought to solve more problems than it creates. If, however, the existing plan is no longer working, then you need to take appropriate steps to address your concerns and ensure that your child’s parental needs are met. ]]>On Behalf of The Law Offices of Keith F. Simpsonhttps://www.simpsonlaw.net/?p=481422023-12-06T13:51:25Z2023-12-06T13:51:25ZHolidays can be challenging after a divorce, especially when kids are involved. Both the parents and kids no longer get to experience the family activities they were used to. But this doesn't have to be the case. You can have the best holidays after divorce.
Here is how you can do this:
Have a holiday schedule
When making a regular parenting schedule, you should also create aholiday one. You don't want to conflict with your co-parent every holiday. A detailed holiday schedule lists all holidays of the year and specifies who will be with the kids. You can also use this schedule for vacations.
Stick to the plan
Having a holiday plan does not necessarily guarantee a smooth experience. You and the other parent should stick to it. Consider putting the information in the holiday schedule in your shared calendar to avoid missing out on dates.
Let the kids know about the schedule
It can be more manageable when your kids know where they will be during a certain holiday. Accordingly, they can be prepared earlier. You don't want your child to make plans with friends in your neighborhood when they will be spending the holiday in the other parent's neighborhood.
Have new traditions
Not doing what you were used to during holidays can create stress. But you don't need to keep doing them to maintain your family spirit; you can create new traditions. You don't have to change everything at once or stop doing what the kids enjoy the most, but you can create a few customs and introduce them gradually.It's possible to have amazing holidays with your kids after your divorce. Seek legal guidance to create a practical schedule.
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