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We Don't Need No Stinkin' Prenup: Lessons for Johnny Depp

by Chandra Moss

As most persons have “heard” by now (pun intended), actors Johnny Depp and Amber Heard went through a heavy divorce battle. Unfortunately for Mr. Depp, per media reports, the parties did not sign a prenuptial agreement. Why unfortunate? Because under California’s community property laws, Ms. Heard may be entitled to one-half of all property and income accrued during the short fifteen month marriage.

What is a prenuptial agreement? Under California law, prior to marriage, parties may agree to limit the effects of the state’s community property rules. For example, they can decide what current and future property remains the separate property of a party, waive apportionment of increases in value of businesses during marriage and determine whether future wages and salaries are a party’s separate property and not amenable to division.

Parties to a prenuptial agreement may provide for a method by which community property is obtained, how community expenses are to be paid and whether or not there is a “minimum” community property estate – in other words, a minimum amount of a person’s separate property which would be community upon divorce. Parties may even negotiate, limit or waive spousal support, or alimony as it is often called. These limits might include the maximum amount of total spousal support payable or the term for payment of spousal support.

In Mr. Depp’s case, he may well rue the lack of a prenuptial agreement protecting his estate. Consider this:

  • During his short term marriage to Ms. Heard, Mr. Depp worked on two notable major productions – “Pirates of the Caribbean: Dead Men Tell No Tales” and “Alice Through the Looking Glass”. Not only might he be on the hook for giving Ms. Heard 50% of his wages, he may also be paying her 50% of the residuals. Residuals are like a royalty paid to a performer for repeat of the production.
  • Mr. Depp is no doubt the high wage earner of the duo. While this marriage is considered short term by the Court (and therefore spousal support is generally paid for half the length of the marriage), he could be paying out big time to Ms. Heard. The Court might not have issued a spousal support order on an emergency basis, but you can be sure the issue will be “heard” at some date in the near future.

This by no means is a full recitation of what Mr. Depp stood to lose for his failure to plan. While most of us don’t have quite so much to lose, considering a prenuptial agreement to protect separate assets, limit alimony liability and to reduce future litigation can save headaches and costs in the event of a dissolution. If you have any questions about the advantages preparing a prenuptial agreement, please give us a call.

Can a Couple Use the Same Lawyer for a Divorce?

Going through a divorce is going to cause some ripples in your life and probably some troubles and frustrations. If you want to do everything you can to eliminate as many obstacles as possible, can you and your soon-to-be ex-spouse agree to use one divorce attorney for each of your legal counsel? In most cases, the answer is no.

Oppositions & Conflicts of Interest

Even if your divorce is uncontested, meaning you and your spouse agree on all the important terms and conditions, you are still both technically on opposing sides of the courtroom. Any attorney that represents one of you will not be permitted to also represent the other because this would create a conflict of interest. Imagine how absurd it would be for both the defense and prosecution to be handled by just one lawyer; family law courts would see the same absurdity in a case where two spouses shared one attorney. Basically, if there is a possibility of a serious conflict of interests, any decisions or agreements made could be subject to undue influence, and the court can’t accept it.

Divorcing with Neutrality

You cannot go into court both sharing one attorney, but what if you don’t rely on the courtroom to settle your disagreements? If you decide to use mediation and come up with a divorce agreement in a conference room instead of a courtroom, you are looking at an entirely different legal situation than before. During mediation, you can use one attorney, but that lawyer isn’t representing you or your ex-spouse. Instead, the family lawyer overseeing your mediation acts as a neutral party that helps each but fights for neither.

The responsibilities of an attorney-mediator include:

  • Explaining the nuances of family law
  • Ensure all paperwork is completed accurately
  • Checking finances for full disclosure
  • Discuss potential points of contention
  • Ease tensions and encourage collaboration
  • Draft final divorce settlement agreements

Remember that an attorney-mediator is working in total confidentiality and not technically for either spouse. If you want them to testify in court later for you, there is nothing that says they have to. In fact, most won’t and the court won’t want them to because that would create a new conflict of interest.

If you think that mediation might be the solution you are looking for in your divorce process, contact Holstrom, Block & Parke, APLC. Our divorce lawyers represent clients all throughout Southern California and bring 300+ years of total family law expertise to each case we handle. We look forward to helping you.

The 9 Essential Steps to Estate Planning

While most people are aware that an estate plan is something they should have, many believe that simply creating a will or trust is all they need to secure their future. While these documents are indeed important, they are not catch-all solutions to all of the potential issues that can arise in the event of your incapacity or death. To ensure your future and family are protected, be sure to consider the following checklist when creating your estate plan.

  1. Draft a will: The backbone of your estate plan is your last will and testament. This document will allow you to provide instructions to your family on how you want your property to be distributed in the event of your death, as well as name beneficiaries and guardians to care for your minor children in your absence.
  2. Create a trust: Holding your assets in a living trust will allow you to ensure they are smoothly transferred to your chosen beneficiaries at the time of your passing rather than being collected and distributed through probate, a notoriously expensive and frustrating process. Living trusts can be used to transfer real estate, savings accounts, mutual funds, and certain other investments to your beneficiaries with ease.
  3. Create health care directivesAdvanced health care directives such as a “living will” allow you to provide instructions to medical personnel regarding the treatment you would like to receive in the event of your incapacity, such as whether or not you want to be put on life support.
  4. Create a financial power of attorney: Similar to a power of attorney for health care, a durable power of attorney for finances allows you to grant someone the power to handle your financial and property matters if you should become incapacitated.
  5. Protect your children’s inheritance: If you have minor children, you should name a trusted adult who will manage any property or money you leave to them until they are of age. This person may be the same as the guardian you have designated in your will.
  6. File beneficiary documents: Bank accounts, retirement plans, stocks, bonds, and brokerage accounts can be made to immediately transfer to a designated beneficiary and skip the probate process in the event of your death by filing beneficiary forms with their respective managing institutions.
  7. Consider purchasing life insurance: There is a possibility that you may owe significant debts or estate taxes when you pass away. If you have young children or own a home, purchasing a life insurance policy may be wise to protect them against these expenses.
  8. Make funeral arrangement: Document your wishes regarding organ and body donation as well as whether you want your body to be buried or cremated. Likewise, create a payable on death bank account with funds to be used to cover your funeral and burial expenses.
  9. Establish a business succession plan: If you own a business, be sure to consider its future in your absence. Creating a thorough succession plan or buyout agreement can help ensure control of your business is transferred to the appropriate parties in the event of your passing.

While nobody ever wants to entertain the thought of their own passing, it is an inevitability which must be planned for ahead of time. At Holstrom, Block & Parke, APLC, our Southern California estate and probate lawyers can provide the steadfast guidance you need to create a comprehensive estate plan with ease. From creating wills and trusts to establishing guardianships and more, we have what it takes to help you achieve peace of mind.

Call (855) 747-6225 or fill out an online form today to schedule your free phone consultation.

Do's and Don'ts of Custody Mediation

by Chandra Moss

In California, anytime custody is an issue in a family law matter, the parties are required to go to mediation. In some counties, mediation is simply a forum in which a neutral third party helps the parents to work out an agreement. However, there are some counties where the mediator makes a recommendation to the judge. That recommendation can set the tone for your entire litigation. So how do you make the best of what could be a bad situation?

Consider the following:

DO make sure your paperwork is complete if you are the moving party. If you are the responding party make sure you have filed and served your responsive papers prior to mediation.

DO be on time. The mediator’s schedule is usually jam-packed and often, if you are more than a few minutes late, you will not be seen.

DO make all your remarks to the mediator child focused instead of “me” focused. Remember this isn’t about your “rights” as a parent. It’s about the children, your relationship with them and your ability to co-parent.

DO ask for separate mediation if domestic violence is involved in your relationship. You do not have to sit in the same room with your abuser.

DO come into mediation with a custody plan and logical reasons why it should be implemented.

DO talk about the children as “our” children. This takes practice, because we all conversationally refer to them as “my kids”. The explanation is below under DONT’S

DO make sure you get a good night’s sleep before mediation. It might be difficult, but you want to make sure you are alert and responsive to the mediator’s questions. Also make sure you have eaten decently so that you are able to concentrate on the mediation process rather than how empty your stomach is.

DO be polite. You don’t have to be best friends with the mediator, but neither do you want to be on the mediator’s bad side.

DO ask your attorney to help you prepare for mediation. The hour or so spent on preparation is well worth the cost.

DON’T be obnoxious, argumentative or interrupt the other parent. Those tactics usually backfire, with the mediator believing you are the problem.

DON’T point fingers at the other parent or engage in the blame game. Yes, there are times when you need to point out that the other parent has a substance abuse problem or is a danger to the children, but think about couching issues in child focused terms. For example, “Jane is a good mother, but I feel sometimes she lets her need for alcohol overshadow the children’s needs” as opposed to, “Jane is a drunk”. Use “I” statements.

DON’T lean forward, loom, or stare at either the mediator or the other parent. Intimidation tactics, while they might work in the boardroom or during a sporting event, do not work in the context of custody mediation.

DON’T sign anything in mediation without consulting your lawyer, if you have one. Once you sign on the dotted line, it makes it difficult for your lawyer to argue against the recommendation if 1) you change your mind; or, 2) you forgot an important provision that needed to be made.

DON’T talk about wanting 50/50 time shares or any percentages of timeshares. That raises a red flag to the mediator that you are only in this for a reduction/increase in child support, since part of the child support calculation is how much time each parent spends with the children.

DON’T talk about “my rights”. Ever. The mediator and the judge don’t care about you or the other parent – they care about your children.

DON’T refer to the children as “my” children. Another red flag for the mediator – someone who seems possessive of the children will not be found to be the parent who fosters a relationship between the children and the other parent – one of the statutory factors the Court must consider when fashioning a custody order.

DON’T dress like you’re going to wash the car or headed out for a night on the town with the girls. Looks may be deceiving – underneath the oversize T-shirt and low slung jeans might lurk the heart of a great parent, but a mediator and/or judge will have a difficult time seeing past the image you project. Dress business casual, get a haircut, cover your tattoos. And please, do not wear flip-flops!

This is not an all-inclusive list. Keep in mind that above all else, the mediator is looking out for the best interests of the children. You can help the mediator achieve that goal by presenting the best you.

When Does Child Support Begin After Divorce?

One of the most frequently asked questions regarding California divorce law regards when a parent is required to begin making child support payments during the divorce process. Do payments begin right away? Should parents wait until a court order is issued? Is it considered abandonment if a parent does not pay child support during the separation period? The answer: it depends.

Child support actions typically begin when married parents file for divorce. Once the request for child support is filed, it must be served to the other parent. The receiving parent generally has 9 days to respond before a hearing is set to issue a temporary order. The court will review each parent’s paperwork, listen to testimony, and issue a support decision. This decision will be memorialized both verbally and on the court’s record.

Generally speaking, the sooner a case is filed, the sooner the courts will set a temporary support obligation for the paying parent. This order can usually be obtained within 60 days of filing for divorce, though delays can occur if the seeking parent fails to properly complete the support request or the paying parent does not properly or honestly complete their income and expense declaration.

Legally, you are not required to make child support payments to your spouse unless the court orders the payments. While parents are always free to make arrangements and offer agreements on child support on their own, the court retains the final word for the best interests of the children.

Child support actions, while seemingly simple, can expose parents to numerous frustrations and pitfalls if not handled by an experienced attorney. Whether you are looking to pursue child support from your child’s other parent or are concerned about being required to pay an unfair amount, the Southern California divorce lawyers at Holstrom, Block & Parke, APLC can provide the strong guidance you need to ensure your best interests are guarded.

To find out more about what our 300 years of combined family law experience can do for you, call our office today at (855) 747-6225.

Protecting Your Business Assets in a Divorce

Decades of hard work can go into the creation of a successful business and when a divorce puts your assets at risk, it can create a significant threat to your livelihood. Even if a company was founded before a marriage, your spouse may have legal grounds to claim that your business should be counted as community property. California’s laws regarding the division of property state that each spouse must receive an equal share of marital assets. If you do not take legal preparations, your business could take a substantial hit. Below, our blog outlines several strategies that you can use to safeguard your business interests in the event of a divorce.

  • Prenuptial and postnuptial agreements: If your business was created before a marriage, protect it by naming it as separate property in a prenuptial agreement. Similarly, you can protect a business that was created after a marriage through the use of a postnuptial agreement. “Postnups” have the greatest chance of success when written well before a divorce is ever on the horizon. These agreements can state early on what portion of a business if any a spouse may be able to claim upon divorce.
  • Give up other assets: The laws in California dictate that the total value of assets received by divorcing spouses must be equal. As the owner of a company, you may be able to retain control of your business if your spouse receives equal compensation through other assets. You may consider sacrificing your claim to any sizable investment, retirement, or insurance accounts in exchange for your business assets.
  • Separate business and personal finances: While assets that were acquired or created before a marriage are typically considered separate property, investing marital assets into an otherwise separate business, which is regarded as commingling assets, can cause complications. separate business (this is called co-mingling assets) can introduce complications. For example, if a business owner were to use shared income to purchase company supplies, a spouse can claim that part of the business has undergone transmutation by becoming community property. Maintaining complete and accurate records of all business-related transactions can help to substantiate your claims in the courtroom.

Help for Business Owners Working through Divorce

When it comes to protecting your business interests in a divorce, it pays to take legal action as soon as possible. If you are currently working through or anticipating the end of a marriage, do not waste any time in contacting Holstrom, Block & Parke, APLC.

Our Southern California divorce attorneys have substantial experience representing clients in high-asset divorce and understand the unique problems you may face as a business owner.

Call (855) 939-9111 and schedule a free phone consultation to get more than 300 years of collective experience in your corner.

Holstrom, Block & Parke, APLC Opens New Riverside Office

Holstrom, Block & Parke, APLC is proud to announce the opening of our new office in Riverside! As of October 15th, 2016, our firm’s newest location can be found at 3780 12th St., Riverside, CA 92501. Located on the corner of Market Street and 12th Street, our new office is just across the street from the Riverside Family Law Courthouse and a short block away from the Riverside Hall of Justice.

The expansion provides a unique opportunity for our firm to bolster its reach and effectiveness while also providing the added convenience of being located closer to our clients in the heart of Downtown Riverside. Our firm’s team of family law attorneys pride ourselves on providing individualized advocacy to all who come to us for assistance, and our new location will allow us to continue offering the premier-quality representation for which we are known.

Parties interested in seeking legal representation can continue to reach our office at (855) 939-9111 or by filling out an online contact form today. With more than 300 years of combined family law experience and nine Certified Family Law Specialists within our ranks, our knowledgeable advocates can help you get through your family dispute as smoothly and as quickly as possible.

Is Child Support Mandatory with Minor Children?

When a family goes through a divorce, parents have a legal duty to ensure that the needs of their children continue to be met. To this end, child support payments exist to ensure that a divorce does not severely limit the resources available for a child’s care. While parents often have strong opinions about what is in the best interest of their family, the terms of child support are ultimately set and decided upon by the court. In California, detailed guidelines exist for determining support payments and the state calculates payment amounts through the use of formulas. Once all the variables are accounted for, a judge typically orders child support to be paid following the guideline amount.

Factors which can influence the terms of child support often include:

  • Total income of both parents
  • The expendable income of each parent
  • The projected cost of the child’s needs
  • The amount of time each parent will have with a child
  • Support payment obligations from other relationships

Every divorce will contain unique factors and it is understandable that the guidelines for child support will not be best in every situation. It is possible to request a change in the amount of child support that a court determines to be in order. Preference is not an adequate motive for a change in support and spouses must provide a good reason as to why a judge should approve the request. However, even in situations where payments are set to $0, the legal obligation for child support is never waived. In these situations, a parent can revisit the issue and request that the original guideline amounts are set in place.

How Long Do Child Support Payments Last?

Child support payments will typically last for as long as a child is a minor, however, there are certain exceptions to this rule. For example, support can be lengthened if a child has special needs, is living at home while in high school (up to the age of 19), or both parents agree that an extension is in the child’s best interest. The period of support can also be reduced in situations where a child becomes self-sufficient such as when they join the military, get married, or become legally emancipated. To modify an order once it is in place, a parent must be able to show that a substantial change in circumstance has occurred.

Attorneys Helping Families with Child Custody Disputes

The process of determining child support is one that all divorcing parents must go through. While guidelines exist to help determine the nature of child support payments, you may have to fight for what is truly in the best interests of your children and your family. If you are currently experiencing a dispute over the terms of child support, contact Holstrom, Block & Parke, APLC and get the help you need. Our Southern California divorce lawyers can bring more than two centuries of collective legal experience to your case.

Call (855) 939-9111 and discuss your case with an attorney in a free phone consultation.

Assets Before Marriage: How Divorce Impacts Them

California is one of only a few states that considers marital property to be communal, meaning it belongs equally to each spouse, regardless as to how the item, asset, or property was actually obtained. You could pay 100% for an item while you are married and half of its value would still technically belong to your spouse. This community property rule for property division is the groundwork for heated disputes in a lot of divorces in the state.

But what about property that you acquired before you were married? Do you have to split that up, too, if you and your spouse call it quits?

Separate Property Rules in California

Separate property is any sort of property – cash, control of businesses, real estate property, material goods, etc. – that you had acquired before marriage. It is called “separate” because it does not get included in community property should you ever divorce. Certain pieces of inheritances or gifts made directly to you in particular can also be considered separate property, even if you are married at the time you obtain them.

You cannot simply assume that your separate property has stayed that way throughout your marriage, however. If your spouse frequently benefitted from a piece of separate property, or if they took reasonable effort to improve upon a piece of separate property, it could become community property. For example, if you owned your home before you got married but then your spouse helped you with renovations that increased its sell-value, they would probably be given a 50% share of that home’s value in your divorce. As another example, if you were given a lump sum of cash in inheritance and used it to fund your spouse’s college education, the money has become community property because it benefitted them and contributed to their lifestyle significantly.

In the end, it is always the safer choice to consult with a Southern California divorce attorney before you get too involved with property division. Without the guidance of a professional lawyer, you could accidentally give up items that are not communal, or illegitimately attempt to hold onto items that actually are not separate. Feel free to contact Holstrom, Block & Parke, APLC to speak to our team about your case and options today.

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.