The best solutions to divorce problems are tailored to your unique needs and dreams. They vary widely, and any number of solutions may resolve a single problem.
Here are common problems people face when dividing assets, establishing spousal support, and determining child custody in California divorces, and a variety of solutions my clients have used over the years.
Problem #1 – What to do with the house
A couple buys a home during the marriage and uses separate property to make the down payment and community property to pay the mortgage, property tax, and home improvement costs. The couple must decide how to divide the separate and community property interests in the house during the divorce.
Possible solutions include:
- Sell the home, pay sales costs, commissions, and mortgages, reimburse the separate property down payment(s) and equally divide the net proceeds.
- One spouse buys out the other spouse’s interest and does whatever he/she wishes with the home, which may include living in it, allowing the other spouse to live it in, renting it or selling it.
- Defer the sale of the home until a specified date then, unless otherwise agreed, sell the home, pay sales costs, commissions, and mortgages, reimburse the separate property down payment(s) and equally divide the net proceeds. During the period of deferment, either, both or neither spouses live in the house.
- Co-own and rent the home, use the income to pay the property expenses, divide or reinvest net proceeds and sell the home at the behest of one spouse, subject to the other spouse’s first right of refusal. If sold, pay sales costs, commissions, and mortgages, reimburse the separate property down payment(s) and equally divide the net proceeds.
- Co-own and continue living the house until either spouse wishes to sell, split expenses, divide equity upon sale after expenses and reimbursements.
Problem #2 – Establishing spousal support
A couple is divorcing and wish to determine the amount, duration, and other terms of spousal support.
Possible solutions include:
Methods for determining the amount:
- Calculated using the DissoMaster or Supportax programs.
- Established by weighing the factors enumerated in California Family Code Section 4320, including the marital standard of living, which a forensic accountant calculates
- Determined by taking the actual financial needs of the supported and supporting spouse and the supporting spouse’s ability to pay
- A sum equal to the supported spouse’s share of some/all of the community property and/or separate property assets available at the time of the divorce
- A sum otherwise mutually agreed upon by the parties
Types of payments:
- A single lump sum payment
- An unequal division of community property assets
- Fixed monthly payments for the duration of the support obligation
- Fixed monthly payments that step down on specified dates during the support obligation
Terms:
- Taxed and tax deductible
- Nontaxable
- Modifiable
- Non-modifiable
- EFT
- Personal checks
- Wage garnishment
Problem #3 – Determining Child Custody and Visitation
A couple has kids and needs to determine legal and physical custody and visitation
Possible solutions include:
- Joint legal and physical custody
- Sole legal custody and joint physical custody
- Sole legal custody and sole physical custody with visitation (supervised or unsupervised)
- Sole legal and physical custody with no visitation
Problem #4
A divorcing spouse isn’t voluntarily producing his/her records
Possible solutions
- Make a formal discovery request of the spouse/spouse’s attorney – Form Interrogatories, Special Interrogatories, Request for Production of Documents
- Prepare and serve Subpoenas on third parties – banks, employers, investors, partners
- Demand a site inspection
- Depose a spouse or third parties with knowledge/records
The best solutions to divorce problems may shift during the course of a divorce for any number of reasons. For example, at the outset of a divorce it may seem most desirable to defer the sale of the home until the children are grown. Months later, after accurately assessing a couple’s finances, it may be impractical and too costly to keep the home thereby making an immediate sale of the home the best solution.
What are your best divorce solutions?
Only you can decide, but these suggestions may help you find the answer.
- Know your financial, emotional, physical, mental and spiritual needs
- Identify your best, acceptable, and worst outcomes
- Understand your legal rights and risks
- Uncover your options
- Consider your spouse’s personality and positions
- Be creative
- Verify the feasibility of your options
- Make choices aligned with who you are and what you value
- Find options that can make this divorce a catalyst of your dreams
- Make choices that align with your core values
