Law Offices of John H. Tannenberg, A.P.C.

Does divorce mean your business is done for?

2019-05-30T14:14:08Z

Having a business and being married are two aspects of life that can bring joy and turmoil. In either situation, a chance exists that the endeavor will not work out. While you may not have obvious steps to take with your business to protect your marriage relationship in the event of a serious business issue, you can make efforts to protect your business in the event of divorce. If you owned your business before tying the knot, you may have created a prenuptial agreement to protect your business should the marriage come to an end. Of course, if you started your business after you married or simply did not create a prenup, you are not out of luck. Benefits of a prenuptial agreement If you created a prenuptial agreement, you may have included useful terms to protect your business, such as the following:

Ensuring that your business remains separate property, meaning a California court will not divide it during divorce
Limiting your spouse's share to any value the business gains after marriage, which you may consider marital property
Creating a buyout agreement if you and your spouse both own and operate the company

Of course, the terms you included are likely specific to your business, and hopefully, each term clearly dictates how property division proceedings will address certain items. Other protective measures As mentioned, if you did not create a prenuptial agreement, you still have options for protecting your business. You can even address the possibility of divorce in your business-related documents. For instance, you can specify terms that indicate that your company cannot be transferred to another party if you divorce. In such a case, your spouse may instead obtain a cash award instead of a portion of the business. Additionally, the manner in which you keep your business records could also help protect your business. Recording any cash transactions made, paying yourself a salary that coincides with market standards, keeping your business and personal expenses separate, and other similar actions can help reduce the chances of your spouse claiming entitlement to business assets. Having help A lot is a stake when you own a business and face a divorce. As a result, you certainly want to do what you can to avoid major upset to business operations. In addition to taking protective measures yourself, you can also work with an experienced attorney to come up with strategies for mitigating negative effects to your business during this time.

Dividing debt: Another reason to stay out of court

2019-05-30T14:17:04Z

As you start thinking about the issues you need to resolve with your future former spouse as you begin the divorce process, you may neglect to consider the debts you share until after you believe you resolved other issues. That could be a mistake since the debts you take on post-divorce have a significant impact on your financial future. Because California is a community property state, the court may just divide all of your marital debts right down the middle -- regardless of who accumulated them. In order to avoid this eventuality, you may want to stay out of court. Negotiating a settlement outside the courtroom could give you a better chance of a more equitable resolution to your debt issues. Dealing with debts secured by an asset You may own a home and one or more vehicles with your spouse. As you consider how to divide those assets during your divorce, you may also want to consider any debt attached to them. Ordinarily, the court will give the debt to the spouse who receives the asset. If you are lucky enough to have equity in the marital home, you will split that 50/50 with your spouse. If you keep the home and refinance the mortgage, you still owe your former spouse his or her half of the equity. There may also be other considerations regarding the debt that could mean giving up other assets in order to keep the home. The same issues apply to keeping a vehicle. Dealing with unsecured debts These debts do not have an asset securing them. They include financial obligations such as credit cards. More than likely, the court will divide these debts 50/50 regardless of who actually accumulated the debt. Under certain circumstances, you could even end up responsible for part of your ex-spouse's student loans and vice versa. Ways to make debt division decisions yourself If you don't want to end up responsible for half of all the debt, you may want to consider other options rather than going to court. If you failed to execute a prenuptial agreement prior to your marriage, then you may want to consider mediation or collaborative divorce as an alternative to traditional litigation. In these atmospheres, you and your future ex-spouse can sit down and come to an agreement on your own. You retain control over the outcome and may find a better way to divide your debts that better suits your needs. The same method could also help you resolve all of your other issues and leave you with a more satisfactory end to your marriage.

Types of child custody and what they mean for your family

2019-05-30T14:16:58Z

When a California family goes through divorce, it can affect the youngest members of the family in various ways. Because of the potentially negative impact of the end of a marriage, many parents strive to develop parenting plans that allow for stability and security for the children. A strong plan likely involves allowing the children to have regular access to both parents. If your divorce proceedings are underway, you may have serious concerns about the well-being of your children. It is beneficial to consider the long-term impact of any choices you make, while not allowing temporary emotions to drive your decision-making. When considering joint custody or a shared parenting plan, it is useful to understand the types of custody and what they may mean for your kids and your role in their lives. Clearly understand your role Navigating the aftermath of a divorce can be complex and messy. It is sometimes difficult to work with the other parent, even when both of you are completely committed to parenting well together. One way to avoid issues is to clearly and completely understand your role regarding both physical and legal custody. The differences between these two are as follows:

Legal custody: Legal custody refers to the right one parent has to make important decisions for the child. This could affect your say in matters pertaining to education, religious upbringing and more. Parents may share legal custody, but often, one parent retains this right, even if sharing physical custody.
Physical custody: Physical custody is the time that you will actually be able to spend with your children. This deals with weekend visitation, holiday visits, vacations and much more.

If drafting a parenting plan, it is prudent to carefully spell out the terms of both legal custody and physical custody. This clarity can help you avoid complications and issues that can eventually lead to disputes between you and the other parent. How can you protect your rights? You have certain rights as a parent, and it is beneficial to take steps to protect your interests at every step of the process of deciding on a custody and visitation plan. If you have concerns about what your relationship with your children will look like after the divorce is final or your rights as a parent, you are entitled to seek guidance. Do not delay in getting the help you need to protect your parental rights and the interests of your children.

Are you motivated to keep your divorce out of the courtroom?

2019-05-30T14:17:39Z

There are often enough emotional ups and downs associated with divorce. The last thing you may want is to spend the next few weeks or months of your life battling with your future former spouse in litigation. You may wonder whether you can keep your divorce out of a courtroom in order to avoid any further drama, expense and stress. If you and your future ex share that same motivation, you may make use of an alternative method of resolving your issues: divorce mediation. Many other California couples in your position have successfully negotiated a settlement with which they were both satisfied through this method. What you can achieve through divorce mediation You may find numerous advantages to mediating your divorce. The most common of these includes the following:

Costs less than traditional litigation
Avoids the risks of traditional litigation
Takes less time than traditional litigation
Provides a neutral atmosphere for negotiations
Encourages you to compromise and cooperate to reach a settlement
Minimizes the potential for controversy after your divorce is final
Allows you to retain control of the outcome
Decreases stress and conflict
Protects your confidentiality
Protects your children from the intense conflict and emotions of traditional litigation
Teaches conflict resolution for future communications
Eliminates the concepts of "right or wrong" and "winning or losing"

In addition, most couples who negotiate their own settlement through divorce mediation tend to adhere to their agreements since they created them. Each of you receives the opportunity to speak and to come up with possible resolutions that may be "outside the box." The law limits what judges can do, and those limitations may set your family up for failure in the future. Going through the process Your mediator may arrange a preliminary meeting in order to set forth the expectations for the process. If you believe you may need third parties such as appraisers or financial advisors to provide additional information for you, this is the time to speak up. The mediator may ask you to gather and exchange information needed in order to negotiate in good faith. Before your first negotiation session, you may want to obtain an understanding of your rights and determine what you expect from your final settlement. Going into the process with an idea of what you will need for the future provides you with a starting point. The mediator does not take sides. He or she will simply explain the legal ramifications of the provisions you intend to include in your agreement. If you reach a stalemate or a point of contention, the mediator can advise you regarding how the court would handle the situation. This may be enough to get you back to figuring out what would work best for your family. Once you reach an agreement, the mediator will document it, review it and file it with the court for approval.

Family care plan is key to avoiding active duty custody problems

2019-05-30T14:19:22Z

Like most California parents, your life may often be busy, making it a challenge to keep up with your daily tasks and duties, not to mention maintain active, healthy relationships with your kids. As a member of the U.S. military, you are definitely no stranger to personal sacrifice and probably encounter various challenges in trying to balance your career obligations with family life. If a divorce or non-marriage situation is creating custody problems, your family care plan may be your greatest asset to rectify the problem. Single parents cannot enter the military; however, if you enlisted first and then became a single parent, that's another story. Whether your particular situation involves divorce or single parenthood, you no doubt want to find the swiftest, least stressful solution possible. Your children's best interests are of paramount importance, especially while you're deployed. Knowing how to protect your parental rights and where to turn for support if a problem arises while you're serving active duty can help you provide for your children during separation. Execute a thorough plan ahead of time Your life in the military no doubt includes many rules, regulations and ceremonial requirements to which you must adhere at all times lest you be at risk for disciplinary action. There's one area, however, where you are free to make your own decisions and choices -- to customize a plan that best fits your family's needs. The following information explains the importance of creating a thorough family care plan:

Serving an active duty overseas can be stressful as well as dangerous, in certain situations. The less you have to worry about trouble arising on the home front while you're deployed, the better. Your family care plan allows you to leave specific instructions regarding the care of your children, so you leave no stone unturned while you're away.
You may address emotional, physical, health-related, spiritual or financial issues in your FCP. In fact, you may include any item you consider important to your children's well-being while you're gone.
The two most basic components of an FCP are designated short-term and long-term care providers. Those designated are non-military service members who agree to be ready to step in at any time to take custody of and care for your children when your military service calls you away from home.
If there's an existing court order regarding child custody in your family, it's best to make sure your FCP coincides with any and all mandates contained therein to avoid legal problems down the line.

Your family care provider can access many military resources to help things run smoothly in your absence. If you're worried about a particular custody matter, you can take comfort in knowing there are laws to protect you against custody-related litigation if you cannot be present in the courtroom due to deployment. Tap into immediate support networks when needed If there's ever a time when you need immediate guidance or support related to child custody or other legal issues concerning your children while you're away on active duty, there are California family law advocates available, experienced in addressing military family law issues.

Divorcing in California? You’ll want to read this

2019-05-30T14:05:44Z

You may have several reasons for choosing California over the 49 other states in the nation as your primary residence location. Perhaps you're one of many who love the climate here, or you and your loved ones are surfing enthusiasts who enjoy the ocean waves along the West Coast. You might also be a rising entrepreneur and want to live where there's a lot of business action and chances for success are promising. In any event, this state has certain laws that may greatly impact your life, especially if you happen to be getting divorced. California happens to be one of only nine states in the entire nation that continues to govern the property division aspect of the process under community property laws. What that means and how it might affect your situation There is one major difference between community property law and equitable division, which is what the 41 states that do not follow community property law use to determine who gets what in divorce. The following list includes facts that further explain the issue and what impact it might have on your post-divorce lifestyle:

When you divorce in a community property state, everything you and your spouse jointly own in marriage is typically split 50/50.
To the contrary, a judge following equitable division guidelines may not necessarily divide marital property equally in divorce but will rule on what the court determines a fair division.
If you do not have a signed prenuptial agreement, it may be very difficult to try to keep an asset separate from division. However, if you can prove that you owned the asset in question before you got married (such as a gift or inheritance) you may be able to retain complete ownership of that asset in divorce.
Generally speaking, any income, property, or assets you or your spouse acquire during marriage is automatically considered jointly and equally owned for the purpose of dividing assets in divorce.
If you received compensation for damages in a legal action after suffering a personal injury, such proceeds may also be considered separate property.

In addition to all assets, community property states also consider both spouses equally responsible for all marital debt. If you are navigating a particularly high net worth divorce, you'll want to make sure you clearly understand community property laws and know how to protect your rights and best interests. Where others have turned for support Many people find it less stressful to address asset issues in divorce by relying on experienced family law attorneys who are highly skilled negotiators to help them get all they are entitled to and nip in the bud any problems that arise.

Do you think your spouse is hiding assets from you?

2019-05-30T14:09:49Z

When you got married, you more than likely never anticipated a time when it would end. However, now that you face this situation, you want to be sure that you receive your fair share of the marital estate. It may work to your advantage that California is a community property state. You and your spouse own all assets equally unless proved otherwise to the court. However, what happens when you can't find all of the marital assets because your spouse is attempting to hide them from you and the court? Start digging If you weren't actively involved in the family finances during the marriage, now is the time to correct that problem. Start looking for a paper trail. This could include actual paperwork your spouse stashed around the house. It's your house, too, at least for now, so you have the right to search it. Physical paper isn't the only way to hide assets, however. As technology has improved, many people keep accounts that exist only online. A check of the family computer could reveal additional accounts or information on property holdings you knew nothing about during the marriage. Your spouse goes on a spending spree Extravagant purchases could signal an attempt to hide assets as well. Your spouse may spend marital funds on items that you would never agree to purchase during the marriage. Document these purchases because if they come close enough to the divorce, the court may require your spouse to include them in the marital estate. Keep an eye on joint accounts You may need to check account balances daily. If you see unusual activity, such as large withdrawals, that could indicate that your spouse is attempting to hide assets from you. If you see any of the following activity, you may have a problem:

Repayment of a non-existent debt
Money transfers to friends or relatives
A new account in a child's name
Loans to friends or relatives

The friend or relative may hold the money on behalf of your spouse until the court finalizes the divorce. Unusual activity at work Every year during your marriage, your spouse got an annual bonus -- except this year. Your spouse either decided to hide that money or asked his or her employer to hold off on disbursing it until after the divorce. The same may be true of raises or promotions. Business owners may have unusually high expenses or delay billing customers or clients until after the divorce. This deprives you of potential monies that you enjoyed during the marriage. Business funds could also end up with a friend or relative for safekeeping until after the proceedings end. You probably need some help Even if your efforts to root out hidden assets are somewhat successful, you may have only touched the tip of the iceberg. You may require help to determine whether anything else is missing. Family law attorneys are used to conducting investigations to look for hidden assets. They more than likely have resources you don't and can help you find missing or unknown assets to ensure that you receive your share of the marital estate.

Mediate your way to a strong post-divorce future

2019-05-30T14:07:48Z

Divorce is a complicated and difficult process for both parties. It can be daunting to think about the possibility of walking through an arduous, stressful litigation process during an emotionally challenging time, but thankfully, that is not your only option. Mediation offers you a better way to divorce, providing you with more control over the outcome and a more peaceful way to reach a final settlement.

Avoiding litigation can be a positive step for your California family, but mediation is not the right choice in every situation. You may find it beneficial to explore how a mediated divorce can provide your family with the tools to build a strong post-divorce future. What happens during mediation? Mediation allows both parties to minimize the negative impact of a divorce. While there will certainly be financial adjustments and compromises, it is likely that a negotiated settlement reached between two parties is more sustainable and positive for everyone than an arrangement handed down by a judge. In the mediation process, both parties work through issues with the help of a neutral third party, the mediator. Couples will have several meetings to discuss issues and go over the terms of a final agreement. The mediator facilitates these discussions, spurs on negotiations and helps point out positive solutions. Why choose mediation? There can be many reasons why mediation could be a positive choice for you, your soon-to-be ex and any minor children. Some of the benefits to this choice include:

Saves time
Helps reduce stress
Reduces the cost of the divorce
Provides more control over the final outcome of the divorce
Allows couple to keep details of the divorce private
Makes it more likely both parties will continue to abide by the terms of the agreement long after the divorce is final

Before you make any major decisions regarding your divorce, you would be wise to carefully and thoughtfully consider the long-term implications of your decision. Securing a strong post-divorce future Divorce is a major life event, and the decisions made during this process will have an impact on your life for years to come. If you believe that mediation could be the right way to approach your divorce, a mutual willingness to cooperate will be required from both parties. Keeping your divorce out of court can not only make the process faster and easier, it can allow you to intentionally and thoughtfully lay the foundation for a strong post-divorce future.

Prior planning prevents poor performance, so how about a prenup?

2019-05-30T14:11:21Z

When you think about your future and the plans you should be making for your welfare and those you love, you're probably thinking about wills, powers of attorney or retirement savings. However, if your plans include marriage, you may also wish to consider drafting a prenuptial agreement. Naturally, a divorce is not in your plans if you're getting married soon. No one plans on divorce; they plan on a life of love with that special someone. Unfortunately, that's not always how it works out, and a little planning now could spare a lot of headaches and frustration in the future. What a premarital agreement can do for you and your spouse By making arrangements now, it may be possible to avoid some areas of confrontation during a divorce, should that come to pass. An agreement generally addresses property issues and the division of assets if the marriage ends. Examples include:

Rights of each spouse to joint property
Establishment of separate property
Ability to manage or dispose of property
Ownership and disposition of insurance policy death benefits

Decisions about child custody and support cannot be a part of a prenuptial agreement. In fact, if a judge determines an aspect of an agreement may be detrimental to the children's support, he or she may strike down that section of the document. Is an agreement set in stone? While it is always prudent to make the best possible agreement given the known circumstances, there may be conditions under which it is desirable to alter a prenuptial agreement. Changes written into the agreement require the consent and signatures of both parties. In order to be enforceable as a whole, both parties need to have willingly signed the agreement. Full understanding of the terms is required, and the terms cannot heavily favor one party over the other. You and me, and a lawyer make 3 Creating a prenuptial agreement is a relatively simple matter. A couple just needs to put the agreement in writing and sign it to make it valid. Despite the apparent simplicity, however, advisors strongly recommend that couples prepare the document with the assistance of an attorney. An attorney can ensure the wording in the document is proper, all the content is appropriate and the terms represent the best interests of the client. If you are interested in learning more about prenups and whether one is right for you, a lawyer can help answer your questions.

Avoid these common high net worth divorce mistakes

2019-05-30T14:12:35Z

Whether you planned your wedding for months or you simply chose a date, invited a few close family members and friends, and "tied the knot", you likely believed your marriage was going to last a lifetime. If it hasn't, and you're preparing for divorce, you'll want to beware of several common mistakes others have made. Especially if you have substantial assets subject to division, seeking clarification of property division laws in California and other matters before proceeding to court may be wise. Preventable high asset divorce mistakes Obviously, there are certain situations in life that are completely out of your control, such as what the weather will be like tomorrow. With regard to your divorce, however, you often have the ability to choose your plan, and, by being proactive and making informed decisions, you may be able to avert some of these common mistakes:

Rash decisions: Although you may desperately want to end your marriage in as swift a manner as possible, hurriedly agreeing to things is typically never a good idea. Assets, business valuations and other factors should be considered before you agree to anything that may bear financial impact.
Possible fraud: While it may seem like a good idea in the short term to transfer items of high value to a third party to escape division, it is generally not a good idea in the long run because a court may consider this as fraudulent behavior.
Banking on others' experiences: Just because your friends obtained certain settlements or won child custody victories in court doesn't mean you can presume what the outcome of your particular situation will be. Every case is different.
Lack of full disclosure: The law requires you to record a full inventory of all your assets and liabilities. Failure to properly fill out the affidavit can cause big problems.

You might want to think of your divorce as a type of business exchange, even though some may find this thinking a bit callous. Many people in the past who have allowed their emotions to overtake their decision-making process in divorce have had disastrous outcomes. This is one of several reasons it might be best to try to avoid emotional outbursts and proceed as though you are doing business in order to protect your interests and achieve an agreeable settlement. Who can help you most? Even though it's helpful to approach various portions of the divorce process from a business standpoint, it is also comforting to know there is experienced support available to help you through all aspects of your situation. After all, you're about to embark on a whole new journey and will be facing many unknowns as you build a new lifestyle and plan a happy, successful future. If you're feeling worried, depressed or concerned about a particular unresolved issue, you can reach out for assistance in the following ways:

Talk to a trusted family member or friend: Having a confidant may help alleviate your fears and provide the encouragement and support you need as you adjust to your new lifestyle.
Seek guidance from a faith leader in your community: A minister or other faith-based leader can provide spiritual nourishment and a friendly alliance as you make important decisions and take steps toward a new way of life.
Meet with a financial adviser: Generally speaking, your divorce will have a financial impact on you. It might be helpful to speak with a financial adviser to gain clearer insight as to your immediate and long-term financial needs.
Request assistance from a family law attorney: An attorney can advocate on your behalf in all matters, including many of the above. Protecting your rights and providing for your best interests are the primary goals of an experienced attorney.

Chances are, you worked long and hard to acquire your assets. There is no reason you should be treated unfairly or be forced to accept liability for a debt that is not your own. High net worth divorces can be quite complicated. By contacting a family law attorney who has successfully represented others in similar situations, you can protect your rights and secure an agreeable settlement plan.