By Cathleen Collinsworth, CDFA®, MAFF®
Do I need a financial specialist as well as a lawyer for my divorce? Won’t I be paying twice the money for two professionals to be doing the same work? As in all questions relating to divorce, the answer is, “It depends.” If the marital estate consists of assets such as a residence, retirement accounts, investments, and or credit card debts, you should consider hiring someone to assist you in fully understanding all the financial issues relating to the marital estate.
Misinformation and misconceptions about the divorce process can be detrimental. Many have false expectations that they will be able to secure a divorce settlement allowing them to continue with their accustomed style of living. Financial divorce analysis helps to ensure a good, stable economic future and prevents long-term regret with financial decisions made during the divorce process.
The financial work provided by a lawyer is not the same as that provided by a trained financial professional specializing in the divorce process. In addition, being a CPA or a CFP does not mean that individual has specific training in family law financial matters.
As you go through the divorce process, finding the … Read More
by Diana L. Martinez
Collaborative Lawyer and Mediator, West Coast Law & Mediation, APC
As a family law lawyer, I really look forward to my time on duty to volunteer at Riverside County Superior Court for VSC (Voluntary Settlement Conference) day. It is offered two Fridays per month and is THE most successful mediation program in the nation with an over 90 percent success rate!
Why? Because, in order to be a mediator on this panel, you must have the highest training and qualifications as both a family law lawyer and as a mediator. Not only do we donate our time, we must be in practice at least 10 years and have hundreds of hours of mediation training and practice under our belts. Other family law mediation programs that either do not have a structured program with high mediator qualifications, or that pay retired judges to do this work, enjoy a success rate below 60 percent.
Judges have an incredibly difficult job. It takes very specific skill sets to be a good judge. But being a talented judge does not, in and of itself, make you a good mediator.
I also volunteer as a fee arbitrator in attorney-client fee disputes … Read More
by Suanne I. Honey
Attorney at Law, CFLS, Mediator and Collaborative Attorney
Sorry for the silly pun when this is such a serious topic. Seriously, though, pre-nuptial agreements are hot topics which give rise to many emotions.
“It paints the Devil on the wall.”
“It is anticipating failure of the marriage.”
“If he or she really loved me, this would not be necessary.”
“I am uncomfortable talking about finances.”
The list can go on and on. Sometimes emotions are an unnecessary waste of energy. Other times emotions have some benefits, even negative emotions. For example, fear in a dark alley in a dangerous neighborhood will cause you to be zealously vigilant about your surroundings which will lead you into taking appropriate steps for your safety … much like the pre-nuptial agreement itself.
Unfortunately, statistics today are not favorable for a lasting marriage. If and when there is a decision to get divorced, the person you once loved turns into the enemy. There is often a total lack of trust at the time of a divorce. There are fights over money, property, and other issues creating stress for both partners. This stress almost always filters down to the children.
Collaborative Law … Read More
Orange County Collaborative Practice professionals will share their expertise with colleagues in April at the annual Collaborative Practice California Conference XII in Redondo Beach.
Members of Collaborative Divorce Solutions of Orange County (CDSOC) are in demand as professional education panelists and seminar leaders throughout Fall 2017 due to their expertise and experience working with a diverse array of Orange County clients in the Collaborative approach to divorce.
“Many collaborative professionals are committed to continuing professional education in order to provide the best service to our clients,” said Dr. Carol Hughes, CDSOC member and workshop leader. “The annual conference of Collaborative Practice California is one venue for us to do this.
“We CDSOC members are honored to be contributing to the further growth of our Collaborative colleagues throughout the state. Ultimately, the reward is offering better options to clients who want to avoid the trauma, time and expense of a litigated divorce or other disputes,” added Dr. Hughes.
Collaborative Practice California presentations include:
Collaborative Family Lawyer and Mediator Bart Carey, Divorce Coach and Child Specialist Dr. Hughes, Ph.D., LMFT, and Financial Specialist Cathleen Collinsworth, CDFA™, MAFF™ will facilitate an advanced seminar titled “Grand Rounds for Collaborative Practitioners.”
The workshop format introduces … Read More
by Brian Don Levy, Esq., Collaborative Attorney and Mediator
What single item can add the most cost to your divorce or civil dispute? Acting or reacting based on emotional thinking, or making unilateral decisions that are based in emotional thinking. It is critical to understand how our emotions can drive our thinking and our behavior, and it is important to manage those emotions in a healthy way that allows for understanding viable solutions and facilitates well thought out problem solving.
Every legal and financial decision is potentially wrapped in emotion, and those emotions can prevent us from fully understanding our options and choosing the options that make the most sense going forward. For almost every divorcing couple or civil disputant, trust is usually broken and communication is not working very well, if at all. Bringing broken trust and poor communication into the decision-making process is not a good recipe for success.
Therefore, communication coaches are an important investment to be made in achieving a long term satisfying outcome for those in conflict. I use the term “investment” because failure to understand and manage emotions is a huge cost inflator for those engaged in civil and family law disputes. The … Read More
In its effort to assist divorcing couples in Orange County pursue a divorce outside traditional litigation, Collaborative Divorce Solutions of Orange County (CDSOC) now provides a “Professional Resources” page on its website. This page offers referrals to individuals familiar with the Collaborative Practice model who offer services that divorcing families can access to help them through the process.
CDSOC welcomes Orange County real estate broker Juliane Waggoner of RE/MAX College Park Realty in Seal Beach as its first Professional Resources member listing.
Waggoner, a fourth generation real estate broker, is also a probate specialist, Certified Negotiation Expert (CNE), and has completed mediation training through the Los Angeles County Bar Association. She is a graduate of the University of California Santa Barbara and has attended graduate courses at the University of California, Irvine.
“My mission is to work as a neutral real estate agent throughout your divorce or separation, bringing peace to the parties and negotiations along the way,” said Waggoner. “I can help couples explore their options, which sometimes means working to help one spouse keep the property. I can also remain a neutral consultant if a sale is required, marketing the home nationally and internationally and helping couples negotiate … Read More
by Diana L. Martinez
Collaborative Lawyer and Mediator, West Coast Law & Mediation, APC
When you are trying to navigate a divorce, there are many issues you need to address. If you own property in California, your decisions about your real estate can be among the most challenging, and perilous, if you are not fully informed.
One area often overlooked when making decisions about real property are the tax consequences. The tax implications can end up making a significant impact on your financial well-being, especially if you are part of the current wave of “gray divorces” among adults 55 years and older.
Many older couples who own property qualify for a lower property tax rate under California’s original Proposition 13. At the discretion of each county in California, Proposition 60 and Proposition 90 allow qualifying sellers to carry their Proposition 13 tax base on their original property with them towards the purchase of a new property of equal or lesser value. (Prop 60 governs real estate sales and purchases in the same county; Prop 90 governs real estates sales and purchases between two California counties).
Proposition 13 protects longtime homeowners against escalating property taxes as the value of their property … Read More
by Thea Glazer, CFP®, CDFA™, MS Accounting
Glazer Financial Advisors, Laguna Hills, California
Stock options and restricted stock may be part of the marital estate. And they are some of the more complex assets. This brief overview provides a basic understanding of the factors you need to take into consideration. It does not go into all the many tax and technical issues that are aspects of equity compensation. Seeking professional guidance for your specific circumstances is always a good idea.
Many companies grant their employees equity compensation in addition to their salaries, commissions and cash bonuses. Equity compensation is non-cash compensation representing a form of ownership interest in a company. Among the most common are employee stock options and restricted stock or restricted stock units. In divorce, stock options and restricted stock are property to be divided. The employee’s separate shares are often also considered as income in the calculations of support.
Employee Stock Options (ESOs)
An employee stock option is the right given by an employee to purchase a specified number of shares of the employer’s stock for a specified price and for a specified time. There are two types of ESOs, Incentive Stock Options (ISOs) and … Read More
by Tracy S. McKenney, CFP®, CDFA™
When a couple divorces, you may wonder whether anything happens to their Social Security benefits. What if the husband has been employed the entire marriage and the wife has stayed home with the children? Do they split the husband’s Social Security benefit at retirement? What if one of them remarries?
First, divorce laws are different from state to state. Social Security is a federal program and can’t be overridden by
divorce laws or a divorce judgment in any individual state including California. California courts cannot issue a divorce judgment to ‘split’ Social Security payments at retirement, because the federal rules governing Social Security override them.
What does the law say about Social Security and Divorce?
As of summer 2016, if a person has been married longer than 10 years and then gets divorced, the ex-spouse can receive 50 percent of their former spouse’s Social Security benefit –OR- 100 percent of their own Social Security benefit. Notice: you can collect only ONE benefit, not both.
For example, “Dolly” and “Dennis” got divorced when Dolly was age 52, and Dennis was age 54. Dennis decided to start collecting Social Security when he turned … Read More