Divorce is much more complicated for business owners, particularly financially, than it is for others in California. After working hard to build your business, it is important to take the right steps to protect the enterprise and ensure you emerge from the divorce process positioned advantageously and not struggling under a load of impossible obligations.

The Certified Family Law Specialists at Holstrom, Block & Parke know how to assess all the factors that require strategic handling during and after the divorce process. These factors are different in every situation, but here is a general overview of the financial issues business owners need to address in a California divorce.

Your Business is Probably Community Property

Unless you executed a prenuptial or postnuptial agreement specifying that the business would remain the separate property of one spouse, then the value of at least part of the business is probably considered community property, even if you owned the business before you got married. California’s community laws consider amounts you earn during the marriage to be jointly-owned marital property belonging equally to both spouses. This is particularly likely to be true if your spouse contributed to the business in any way, such as maintaining the home while you focused on building the business.

This means that as part of the process of dividing marital property, you will need to assess the value of your business, determine how much of that value is community property, and develop a plan to either buy out the other spouse’s interest or to share financial interests and control after the divorce.

Do You Have a Business Succession Plan?

Many partnerships and privately-held corporations in California have plans for business succession, such as buy-sell agreements among owners. These generally provide structure for handling interests when one owner goes through a transition such as a divorce. A comprehensive business succession plan should include a method for establishing the value of the owner’s interests and strategies for transitioning those interests.

These plans can make it much easier to ensure that business operations continue uninterrupted so that the business maintains viability and value regardless of what happens during the divorce process.

If you don’t have a plan for business succession, you need strategies to keep business operating as close to normal as possible for the sake of both spouses. It does neither party any good to decrease the value of such an important marital asset.

Valuing Business Interests in California

Setting a value on a business is both an art and a science, and in divorce, both parties have interests that are often at odds when it comes to the result. It often works most effectively to agree on a neutral third party to perform a value evaluation.

Providing the most detailed information about obligations as well as assets can help ensure that the valuation is accurate. When you work with an attorney who is experienced in protecting business interests in divorce, your attorney can also keep watch over specific interests such as managing intellectual property and maintaining the value of unique assets.

Business Ownership Impacts Alimony, Child Support, and Custody in California

In addition to determining an accurate value and the appropriate percentage of the business to be treated as community property, a business owner who is divorcing in California also needs to be mindful of the effect on spousal support (alimony), child support, and parenting plans. It will be necessary to calculate a reasonable income figure for the spouse who works in the business. If both spouses receive income from the business, that will complicate matters still further.

Spouses seeking child support or alimony from a former partner who operates a business often present calculations based on unrealistic income figures that can cripple the cash flow needed for business operations. At the other end of the spectrum, business owners can often find ways to hide income and assets, so it may take a thorough investigation to gain an accurate financial picture.

Buy Out, Sell, or Continue Joint Operation?

Every business is unique and every family situation is unique, so the best solutions for handling business interests in divorce often require a creative approach. While you might want to buy out the other spouse’s interests, that may not be immediately feasible or advisable. A spouse might consider retaining economic interests in the business for a set period of time. Or couples who are capable of working together might continue to do so after the divorce. In this type of situation, it is helpful to have rights and obligations specifically spelled out in a detailed written agreement.

In some cases, the most economically sensible approach is to sell the business and start fresh with a new enterprise after the divorce. When you work with an attorney who understands the issues, your legal advisor can help you evaluate your options and formulate the right plan based on your specific needs and goals.

Get the Advantage of 300+ Years of Collective Experience in Handling Tough Issues in California Divorce

The team at Holstrom, Block & Parke, APLC has extensive experience handling intricate cases involving challenging issues associated with business ownership and complex assets of high value. We develop strategic plans to protect the full range of business owners’ interests in divorce. For a confidential consultation to learn more about the protection we can provide in your particular case, contact our team today.

Divorce can tear your social life apart. Friends often feel that they have to take sides with one partner or the other, so your social network can decrease quickly. At the time you most need the support of friends and the comfort of a regular routine, you may find yourself forced into unfamiliar surroundings and uncertain of who to turn to vent frustrations or even where to go when you need a break.

When you belong to a country club, that club is often your safe haven. It is the place where everybody knows your name and you can always be certain of a warm welcome and a place to relax. But divorce threatens to take that away, too. What happens to a golf club membership when you divorce in California?

Is the Golf Club Membership Community Property?

A private club membership is a unique resource. As an investment, it is a type of property. But it also includes contractual arrangements that govern its use. And, as noted above, club membership has significant emotional value. Let’s first consider club membership as a type of property that may be subject to division in divorce.

Under the community property rules in California, most property acquired during the course of a marriage is considered marital property, and both spouses have equal ownership rights in it. The exceptions to this rule are inherited property and gifts, which generally belong to the spouse who received them. So if a country club membership was given or bequeathed only to one spouse, that spouse may be able to keep it as their separate property. If it was a joint gift, however, it would be marital property.

Assets owned before marriage are also a spouse’s separate property, but if those assets become commingled with marital property, they can lose their separate character. So if one spouse had the club membership before they got married and paid all dues with money owned before the marriage started, then the value of the club membership might belong solely to that spouse. But if funds earned during the marriage were used to pay dues or assessments, then at least part of the value of the membership becomes community property.

What Do the Club Rules Say?

The discussion about community property refers to the financial value of the membership and whether and how that may need to be allocated in divorce. The question of which spouse gets to remain a member of the club is usually an entirely different issue because it is generally determined by the contractual terms in your agreement with the country club.

For most clubs, even when you hold a family membership, one person is considered the primary member. The rules sometimes specify that in the event of divorce, the primary member has the right to retain the membership. Those rules may allow the other spouse to sign up for a separate membership or they may prohibit another membership. Still other types of club rules may specify that the club will honor the terms of the divorce settlement with respect to continued membership.

It is important to understand that unless the club policies and contractual terms violate the law in some way, they are binding because you agreed to them when you joined the club.

Regardless of the details, in most cases, the spouse who loses the membership often suffers harm financially and emotionally, and this needs to be taken into account in the divorce settlement. Even if that spouse is allowed to join the club on a separate membership, they will usually incur initiation fees, go through a formal approval process, and often be placed on a waitlist. In addition to accounting for the financial losses as part of the divorce settlement, such as membership fees and bond funds, it also may be wise to include a provision specifying that the member spouse will not say or do anything to inhibit the other spouse from joining separately, such as making disparaging comments or voting against their membership.

Details Matter in Divorce

So often, it is the seemingly small issues, such as golf club membership, that cause the most pain in the divorce process. It is important to work with a divorce attorney who is aware of the potential issues and prepared to take the right steps to protect your interests.

At Holstrom, Block & Parke, APLC, our Certified Family Law Specialists and associates analyze the full range of issues that could affect your divorce and we develop the most advantageous strategies to ensure that you emerge from the divorce ready to enjoy your best life ahead. To discuss club memberships or other issues that can affect you in divorce, schedule a confidential consultation with our team today.

Because of California’s community property laws, your retirement plan is also your spouse’s retirement plan. If your spouse has a plan of their own, part of it belongs to you. Everything you earned during your marriage, including employer contributions to your plans and interest earnings over time, is considered community marital property. Both spouses own an equal share.

Amounts you accrued before you got married may be considered your separate property, but unless you had a pre-or postnuptial agreement specifying that retirement benefits would remain as one spouse’s separate property, then you share your interests in both spouse’s plans. Chances are the amounts in the plans are not exactly equal, so one spouse will be receiving funds out of the other’s retirement plan. This can be complicated and requires special handling.

If your divorce attorney is experienced in handling complex and significant assets, they should understand the specific needs and be able to guide you through the process. At Holstrom, Block & Parke, APLC, our Certified Family Law Specialists and associates protect our clients’ interests in retirement plans regularly. But if your attorney is not comfortable with the process or you’re looking for background information, here are the basics.

What Makes Retirement Plans So Complicated

Unlike dividing up funds in a checking account, the process of dividing benefits in a retirement plan involves a lot more issues. You need to understand not just the value on the books today, but also the potential future value and tax consequences. In addition, the companies that manage retirement plans require your legal team to jump through some extra hoops before they will release funds to someone other than the employee who earned the benefits.

The types of retirement plan benefits can vary widely. Sometimes benefits may be accrued but not fully vested, which means the employee might only have the right to a percentage of those benefits if they were to leave today employment, but at some point in the future, they will have full right to those accrued benefits.

When a retirement plan is considered “qualified,” that adds another layer of complexity. The federal Employee Retirement Income Security Act (ERISA) allows certain plans to be funded with pre-tax dollars and these must be managed carefully in divorce to avoid triggering an immediate bill for the deferred taxes. Plans such as 401(k) plans, profit-sharing plans, 403(b) plans, and Keogh plans are considered qualified plans. You generally need a special type of court order to divide qualified retirement plans in divorce.

Obtaining a Qualified Domestic Relations Order (QDRO)

A domestic relations order from the court is usually required before the administrators of a retirement plan will hand over funds to a spouse in divorce. When you are dealing with assets in a qualified retirement plan, you also need a Qualified Domestic Relations Order or QDRO. This is a specialized document that must contain certain features to meet government requirements. Once the QDRO is prepared to incorporate the legal terms and explanations of the assets involved, then the order is presented to the court. If the judge approves, it will be signed and the spouse obtaining the distribution will present the QDRO to the retirement plan administrator. Then the plan itself needs to approve the QDRO. The bottom line is that it takes considerable time and effort to obtain funds from a qualified retirement plan. If the terms of division in the divorce decree do not align with options offered by plan administrators, then it may be necessary to redraft the order, which will further delay payment and add to the expense.

In some cases, the plan administrator actually needs to be added as a party to the divorce through joinder before a QDRO can be established, which adds still further delays. Finally, when all is complete and funds have finally been released, the spouse receiving funds from a qualified retirement plan may need to be prepared to take quick steps to reinvest the funds appropriately to avoid a tax bill.

Protect Your Interests in Retirement Assets by Working with the Experienced Team at Holstrom, Block & Parke, APLC

Retirement assets are one of if not the most significant source of assets for many couples facing divorce. You don’t want to risk losing out on any value that should rightfully be yours, and you don’t want to waste resources on administrative mistakes. The skilled team at Holstrom, Block & Parke understands how to handle and divide retirement assets of all types, including qualified retirement plans. Schedule a consultation with our team today to learn about the protection we can provide in your particular situation.

Unlike some jurisdictions, California does not impose a longer waiting period for divorce when children are involved. Yet it still seems to many people that the divorce process takes longer when a divorcing couple has children.

At Holstrom, Block & Parke, APLC, we know there are several reasons that divorce can take longer with children. We appreciate the struggles that parents go through to protect their children’s best interests during and after the divorce process. While we know that each case comes with unique challenges and it is impossible to precisely predict how long it will take to finalize a divorce with children in California, here are some factors that affect the process.

A Divorce with Children Adds Numerous Issues That Require Resolution

Whether the terms of a divorce are established through attorney negotiation, mediation, or litigation, the process always involves developing terms for each issue. This includes how assets and debts are classified, how marital property will be divided, whether one spouse will pay alimony, and how tax consequences will be handled, and numerous other issues.

When a marriage involves children, then many additional issues will also need to be addressed and resolved, including plans for custody and child support. Not only will there be more issues requiring resolution, but they are issues that are complex and often hotly contested.

Everyone Wants to Get the Issues Right

When couples with children divorce, the outcome affects more than just the two people named in the court docket. A divorce with children impacts the lives of the children and the extended family such as grandparents. The impacts of the process and outcome will affect the children emotionally and mentally, as well as physically and financially. The stakes become extremely high, and everyone recognizes that.

For that reason, everyone involved, from parents to attorneys to court clerks wants to take extra care to make sure they get everything right. Giving extra consideration to every decision will naturally extend the process. If doubling checking figures and confirming the availability of alternatives adds to the length of each stage, then the end result is going to be a longer proceeding.

Issues Involving Children Have Both Emotional and Financial Impact

Another reason a divorce with children can take longer is that the additional issues are those with tremendous emotional and financial impact. Couples who take a reasoned, pragmatic approach to other aspects of their divorce sometimes suddenly refuse to apply logic when it comes to custody issues because they are so terrified of missing out on their children’s lives. When people react emotionally rather than addressing conflict logically, negotiations stall and issues stay unresolved.

Parenting plans affect financial standing as well as emotional wellbeing, so they can trigger a reaction that is even more visceral and hard to overcome.

The Best Interests Standards is Not Cut and Dried

Issues involving children in a California divorce are supposed to be made based on the best interests of the child. Determining what outcomes are in a child’s best interests is not a simple and straightforward determination. Courts are required to consider a wide range of factors, and parents may bring up additional issues as well. It takes considerable time to produce evidence regarding each factor, and then each one must be presented and reviewed by the court. Even if an issue is being negotiated out of court, parents generally should consider the full range of issues to discern what would be in the child’s best interests.

So How Long Does Divorce Take?

At the absolute minimum, if both spouses agree on absolutely every facet of every issue and they get their agreement written up accurately and legally, a divorce could theoretically be finalized within six months and one day. This never happens.

The average time for a divorce in California generally is generally 15 months. This includes simple divorces with short marriages and no complicating factors. Given the issues that complicate divorce when children are involved, the process can be much longer, depending largely on how long it takes for parents to reach agreement on custody and parenting plans. You can do your part to speed the process by providing information promptly when requested by your attorney, by being willing to compromise, and by working with an attorney who is dedicated to your interests rather than one who really enjoys the drama of divorce trials.

When a Divorce Involves Children, Holstrom, Block & Parke APLC Helps Find Solutions That Are Right for the Family

The divorce process sometimes has as much of an impact on children as the outcome, so it is important to consider the children’s interests all throughout proceedings. The Certified Family Law Specialists and associates at Holstrom, Block & Parke, APLC know how to effectively advance your interests while safeguarding your children. We invite you to schedule a confidential consultation to learn how we can help you protect your children in divorce.

If you want to get a divorce in California, you will need to specify the right grounds for divorce in your divorce petition. This is necessary even though California is a “no-fault” state when it comes to divorce.

It is important to choose the right grounds for divorce, which are different from the grounds for annulling a marriage. Your attorney can ensure that your divorce petition includes the correct grounds and help you take all the right steps necessary to protect your interests throughout the divorce process.

Grounds for Terminating a Marriage

Although most people use the term “divorce” to refer to the process of ending a marriage, officially, California courts often refer to “dissolution” of marriage or “termination” of a marriage. These terms all refer to divorce. By contrast, “nullity” of a marriage is quite different. When a divorce is annulled, it is treated as if it never legally occurred in the first place, in contrast to divorce where an existing marriage is brought to an end.

This distinction is important because there are eight legal grounds for nullity but only two legal grounds for divorce or legal separation. Divorce and legal separation may be granted either on the grounds of “irreconcilable differences” or “permanent legal incapacity to make decisions.” Instances where one spouse is judged incapacitated are fairly rare, so most divorces are sought on the basis of irreconcilable differences.

What are Irreconcilable Differences?

Even when it seems that the meaning of a legal term is obvious, it is always a good idea to see how the term is defined both in statutes and by courts interpreting the statutes. In this case, Section 2311 of the California Family Code specifies that “irreconcilable differences” consist of “those grounds which are determined by the court to be substantial reasons for not continuing the marriage and which make it appear that the marriage should be dissolved.”

In this particular situation, the statutory definition does little to clarify the definition. The reason or grounds for divorce—irreconcilable differences—are defined in the statute essentially as “reasons for ending the marriage.” The statute does specify that the reasons should be “substantial” as “determined by the court.” So what have courts in California determined to be substantial reasons for ending a marriage?

There are numerous examples. Just as every marriage is unique, every divorce is also unique. Some common instances of irreconcilable differences that provide credible grounds for divorce include:

• Disagreement on whether to have children or how children should be raised
• Loss of trust between spouses
• Conflicts with personality and behavior
• Religious or political differences
• Long-distance physical separation
• Excessive fighting
• Money problems
• Miscommunication or lack of communication
• Problems with sexual intimacy
• Too much focus on work

One way to think of irreconcilable differences as grounds for divorce is that you are describing reasons why your marriage is broken and cannot be repaired or saved.

How Do You Prove Irreconcilable Differences in California?

Although you need to assert grounds to justify the request for a divorce in California, the court does not require you to present evidence to demonstrate that your marriage is irretrievably damaged and why you believe your differences are irreconcilable. This makes the process a true no-fault divorce because you are not obligated to present evidence of wrongdoing or fault.

What Happens When a Divorce is Based on Grounds of Insanity?

Divorce sought on the grounds of “permanent legal incapacity to make decisions” is generally referred to as divorce on grounds of incurable insanity because that was the term used formerly. Unlike divorce on grounds of irreconcilable differences, when the grounds for divorce are incapacity/insanity, then the spouse petitioning for divorce needs to present proof of the other spouse’s condition. Specifically, they need testimony from a mental health practitioner to demonstrate that the spouse was and has remained incurably insane since the petition for divorce was filed and that the spouse is expected by medical professionals to remain incapable of making major decisions in the future.

Holstrom, Block & Parke, APLC Protects You Through Every Step of the Divorce Process

Divorce is a complex process, and choosing the grounds for divorce is probably the easiest part of that process. The decisions you make regarding property, custody, alimony, and other issues will impact your life for years to come, so it is wise to work with a legal team who is prepared to explain the ramifications of your choices and fight to protect your interests throughout the proceedings.

Holstrom, Block & Parke provides the benefit of 300+ years of experience to every divorce case we handle. To learn more about the ways we can safeguard you in divorce, schedule a consultation today.

In California, cars are often such an integral part of our lives that we don’t consider them ordinary property. They provide a lifeline for getting to work and accomplishing everything from grocery shopping to going out to dinner. They’re essential, like food and shelter. But in a climate where cars often remain in a well-preserved state, our cars retain aesthetic value and we can become emotionally attached to them. Luxury models and rare collectible vehicles can hold significant financial value as well.

So how are these vehicles with so much meaning treated in a California divorce? Are they marital property? Can your spouse keep the car even if you bought it before you were married? There are several factors to be considered before these questions can be answered. If keeping your vehicle is a high priority for you, make sure you work with an attorney who knows how to protect assets in divorce and also make sure your attorney knows how important it is to you.

Your Car is an Asset But it May Not Be a Marital Asset

No matter how much your car means to you and what you’ve been through together, unlike children and pets, cars are treated as ordinary property in a California divorce. That means they are subject to the same rules about assets and debts as other property such as your house or your 401k account.

The question is not whether your car is an asset but whether it is a marital asset. When something is a marital asset, it is owned jointly and equally by both spouses. When something is a separate asset, it is owned solely by one spouse, and that spouse keeps it in divorce. Marital property—also known as community property in California—is divided equally in divorce.

It is possible for an asset or debt to a hybrid of both separate and marital property. That means part of the value of that assets would be shared in divorce and part of the value would belong completely to one spouse.

How Can You Tell if Your Car is Community Property?

The general rule for classifying property in California is that when something is acquired before marriage it is separate property and when it is acquired during the marriage it is marital property. It doesn’t matter whose name is on the title or who bought it—if you obtained the car while you were married, the assumption is that it is marital property belonging jointly to both spouses. However, there are exceptions to this rule.

1. If you received the car as part of an inheritance, the law considers it to be your separate property.
2. If you bought the car with money you inherited or money earned before you were married, then the car could be separate property (if you kept the money separate)
3. If you owned the car before you were married but you spent marital funds making payments or improvements, the car could be treated a marital property or hybrid property

The question of whether your car is marital property or separate property could be very complicated depending on the circumstances. If you believe your car should be separate property, if you can point to records tracing it to your separate funds, that will help establish the separate character of the property. For rare and valuable vehicles, it may be worth consulting a forensic accountant who can develop a strong record of the vehicle’s ownership history and upkeep.

What if You Owe Money on Your Car?

With the high price of even used vehicles, most of us are still making payments on our vehicles. Sometimes we owe more than the vehicle is worth because of damage, prior loans, depreciation, interest, and other factors. What happens then? Is the debt allocated equally or is one spouse responsible for it?

Just as with the value of the vehicle itself, the allocation of debt also comes down to primarily the issue of when the debt was incurred.

Written Agreements Can Change the Rules

The rules discussed so far regarding classification of marital property are the default rules under California law. Couples are free to create their own agreements that override these rules. A prenuptial or postnuptial agreement, for instance, might specify that a car is to remain separate property regardless of whether it is used and improved by both spouses. Or a couple can execute a transmutation agreement changing the vehicle from separate property to community property or vice versa.

Let Your Attorney Know if Keeping Your Car is a Priority

At Holstrom, Block & Parke, APLC, our experienced divorce attorneys work to ensure that our clients obtain the objectives that mean most to them in divorce. If your car is the one asset you can’t live without, make sure you let your attorney know, and explain what you might be willing to give up in exchange if the vehicle is marital property.

To discuss how to achieve your goals for property division and other issues in divorce, schedule a consultation with our attorneys today.

When you want to get a divorce in California, you need to provide a reason for ending your marriage. However, the reason does not need to involve fault. You don’t have to prove someone did something wrong. You can request a no-fault divorce on the grounds of “irreconcilable differences.”

What does this mean and how do you prove it? As a legal team with over 300 years of combined experience protecting the interests of clients during and after divorce, we have seen a wide range of situations that qualify. In this post, we will explain what irreconcilable differences are in a legal sense and the effect of using these differences as the grounds for your divorce.

Looking at the Statute

To determine legal obligations, it is usually necessary to look at both statutes governing an issue and the way that the courts have interpreted those statutes. With regard to the grounds for divorce, Section 2310 of the California Family Code specifies that there are only two reasons a court can grant dissolution of marriage, which is the official term for divorce. A spouse who wants a divorce must either request a dissolution based on “irreconcilable differences” or “permanent legal incapacity.” Since most divorces take place between spouses who are legally competent and coherent, that means that most divorces in California are based on irreconcilable differences.

The statutory section that lists irreconcilable differences as one of two grounds for divorce describes these differences as factors which “have caused the irremediable breakdown of the marriage.” In the next statutory section, lawmakers further explain that “[i]rreconcilable differences are those grounds which are determined by the court to be substantial reasons for not continuing the marriage and which make it appear that the marriage should be dissolved.”

Neither of these descriptions is very specific. So, to discover what irreconcilable differences are in real life, it is helpful to look at some examples from the courts.

What are Irreconcilable Differences?

The term irreconcilable differences as interpreted in California can include a wide range of circumstances. Essentially anything that can justify ending a marriage can be considered irreconcilable differences.

Some examples include:

• Disagreements over spending or debt
• Loss of trust
• Religious differences
• Excessive conflict
• Inadequate communication between spouses
• Infidelity
• Disagreement on parenting issues
• Physical separation due to work
• Intimacy issues
• Disagreements over family matters
• Too much focus on work over personal life

Basically, if you can articulate a reason that you want a divorce, then you can show that you have irreconcilable differences that justify a divorce. You don’t actually need to prove those differences to the court—you just need to tell the court truthfully that such reasons exist. Even if your spouse believes the difficulties can be resolved and disagreements reconciled, if you do not, you can still be granted a divorce.

What Happens When You Divorce on Grounds of Irreconcilable Differences?

One party will start the divorce process when their attorney files a divorce petition in court and legally serves the official paperwork on the other spouse. That party then has a chance to file a legal response.

Both partners will be required to share financial information so that decisions can be made about classifying and dividing property, alimony, child support, and other issues. If your spouse does not want a divorce, they may try to delay the process or refuse to provide information, so your attorney may need to use legal discovery tools to gain the important information.

With that information, attorneys for each spouse can negotiate agreements on all the issues involved. If they can’t reach a mutually agreeable solution on some issues (or any issues) then they will present information to enable the judge to make a decision. Even in a “no-fault” divorce, one spouse can try to bring up bad behavior on the part of the other spouse to try to gain an advantage. It is important to share information honestly with your attorney so that your legal advocate is prepared to make the best arguments to support your goals for property classification, alimony, custody, and other issues.

Experienced Divorce Advocates Work to Secure the Best Possible Outcome in Divorce

At Holstrom, Block & Parke, APLC, we know how to leverage our extensive knowledge and experience into persuasive arguments to gain your objectives in divorce. Irreconcilable differences can make it challenging for spouses to develop mutually acceptable terms for their divorce, but we know how to facilitate productive conversations and negotiate advantageous agreements to achieve a beneficial outcome without unnecessary delays. For a confidential consultation to discuss your needs, call us at  855-426-9111 or contact us online today.

If your divorce is taking too long to finalize because you have not reached an agreement on issues such as property division, alimony, or custody, California law gives you the option of splitting your divorce case into two sections. This is known as bifurcated divorce.

When you bifurcate a divorce, you can regain single status while you work to resolve the remaining issues. This process can be highly beneficial, but there are some factors you should be aware of before you embark on a bifurcated divorce.

How Bifurcated Divorce Works

In a typical divorce process, one spouse files for divorce and serves paperwork on the other spouse, that spouse then responds, and then parties are required to start providing financial information to each other. After sharing information, the parties try to negotiate agreements on how they will divide debts and assets, amounts for alimony and child support, and other issues. This can take considerable time, and when parties cannot reach agreement on their own, they ask the court to make decisions. This takes even more time. While all this time passes, the parties remain married. They remain married until all decision-making is complete and the court issues final orders.

In a bifurcated divorce, one party asks the court to hold a separate legal proceeding that focuses only on marital status. This simple, single-issue proceeding can be completed much more quickly than a divorce case with multiple issues, so you can change your marital status to single much more quickly. However, you will still need to complete the legal process to determine all other issues.

Benefits of Bifurcation

A bifurcated divorce can have significant emotional benefits, and sometimes financial benefits as well. Knowing that you are no longer married to an abusive, controlling spouse can enable you to move forward with more confidence. It can also stop a spouse from continuing to engage in delaying tactics with regard to finalizing the divorce.

If you want to remarry, a bifurcated divorce allows you to do so legally.

With regard to financial issues, a bifurcated divorce allows you to file your taxes as a single, rather than married taxpayer, and for some people, this is preferred. If either spouse files for bankruptcy, bifurcation can allow the divorce to continue at the same time that bankruptcy details are in progress.

Requirements for a Bifurcated Divorce

If you want to ask the court for a bifurcated divorce, you need to wait at least six months after the responding spouse (the spouse who did not file for divorce) was served with divorce papers. Generally, if you file a request sooner than that, it will likely be denied, and even if it is granted, it will not take effect until the six month waiting period has ended.

You must also demonstrate a good reason for asking the court for bifurcation. If your spouse is trying to prevent you from remarrying and is dragging out the process of resolving issues in your divorce, for example, your attorney should be able to argue effectively for a successful bifurcation.

Since other issues have not yet been resolved when a divorce is bifurcated, California law imposes some additional requirements. If one spouse has health insurance through the other spouse’s employer, the spouse providing insurance is obligated to continue to do so in some way. The spouse requesting bifurcation will need to reimburse the other spouse for tax consequences and losing the right to claim a probate homestead or family allowance. If either spouse has a pension plan or retirement account, one spouse may be entitled to receive compensation for the loss of death benefits and the court may need to issue an interim order to preserve one or both spouse’s rights to retirement plan benefits. Essentially, the court needs to ensure that each spouse retains the same rights as they would if the case had not been split, so a judge may order additional conditions if necessary to protect the spouse that did not request bifurcation.

An Experienced Divorce Attorney Can Help You Determine Whether Bifurcated Divorce is Your Best Option

With over 300 years of collective experience, the legal team at Holstrom, Block & Parke, APLC has assessed the advisability of bifurcated divorce with many clients in California. We can help you determine if it is the right move in your situation, and if it is, we know how to successfully justify your rationale to the judge. If your spouse is requesting bifurcation, we can ensure your rights remain protected. To learn more about how bifurcation might work in your situation, just schedule a consultation.

Even if you know you’re both thinking about it, and even if you’ve discussed it in the past, when you are finally ready to put an end to your marriage, it can seem incredibly difficult to find the right words. And then there’s the issue of finding the right time and place, as well.

With over 300 years of collective experience handling divorce cases, the team at Holstrom, Block & Parke, APLC, has seen a wide variety of approaches when it comes to starting the divorce conversation. What works well for one couple may not be the best idea for another, but here are some ideas and factors to consider as you prepare.

Choose a Time and Place Where You Can Focus

Planning to bring up the subject of divorce is a little like planning a surprise party. Even if the sense of anticipation is one of dread rather than joy, you still need to choose the right time and place to spring the surprise. Instead of picking a time when the most people of guests can come, you need a time when the two of you will be alone for long enough to hold a serious discussion. You need a quiet place where you feel safe and comfortable. If you regularly watch TV in the evenings to wind down, this might be a good time, as long as it is not so late that one or both of you are so tired that you can’t think straight. Turn off the TV and put away cell phones to avoid distractions.

If you have kids, you might want to choose an afternoon when you can have a family member or friend watch the kids so that you don’t have to worry about being interrupted. And if you are concerned that your spouse could react violently, make sure you have a plan for your own safety.

Practice Focusing on “I” Instead of “You” When it Comes to Blame

Your conversation needs to be even and rational, to the greatest extent possible. One way to sabotage rationality in a conversation is to introduce blame, and it can happen before you’re even aware of it. You can prevent yourself from being swept into the blame game by making your statements selfish, believe it or not.

Focus on yourself and how you feel. “I don’t like it when you criticize me in front of the kids” is much easier to accept than “you always criticize me in front of the kids,” which sounds like an accusation. Try practicing a few phrases, such as “I get worried when you spend so much money” or “I feel like we’re not equal partners when you disregard my opinions.”

Write Down the Reasons that You Want to End the Marriage

It is natural for a spouse to ask “why” when the other spouse says they want to get a divorce. Even if they know the reasons, they still need to hear it. And that means you need to be prepared. You may have a million reasons that you no longer want to be married, but if you are not prepared to articulate those reasons, you will not be able to give your spouse a satisfactory answer. You both deserve that answer. So write down your reasons, and choose the ones that seem most important and permanent.

You might also write down some things you believe your spouse is unhappy with. If your spouse does not want a divorce, pointing out the issues that make them unhappy in the marriage can help them to agree with the need to end the marriage.

Put Yourself in Your Spouse’s Shoes and Practice What You Want to Say

Try to imagine if you were in your spouse’s position, and consider how you would want to hear the message. Focus on how you can both rebuild better lives going forward. You can write out a speech or just jot down a few words, and then practice delivering your message to the mirror, your phone, or a friend. It doesn’t have to be perfect—in fact, you don’t want to look rehearsed. But you want to feel confident delivering your message, and preparation and practice are the best ways to gain that confidence.

Your Attorney Can Help with Specific Tips to Prepare and Protect Yourself as You Approach Divorce

Divorce is hard, so don’t be afraid to ask for help. When you work with the experienced divorce attorneys at Holstrom, Block & Parke, APLC, our team can share wisdom gained from experience handling all aspects of divorce. We can provide suggestions and guidance, particularly if you are dealing with a controlling, narcissistic spouse or a partner who might try to hide assets or make your life difficult in other ways. To talk to us about the ways we can assist, call 855-426-9111 or contact us online to schedule a confidential consultation.

When you’re in the middle of divorce proceedings, mentally you may already see yourself as no longer married. You may have shifted your financial focus to a single lifestyle with an emphasis on your children, other family members, or a new partner.

However, your marriage still exists, legally, and that can have a serious impact on your loved ones if you pass away before your divorce is finalized. Here are some factors to consider while your divorce is in progress.

A Bifurcated Divorce Could End Your Marriage Before Your Other Divorce Terms are Settled

It can take a long time to resolve all the issues that need to be settled to complete the divorce process. If you have a business or other complex assets or are going through a contested custody battle, divorce can take well over a year to finalize. However, it is possible to put a legal end to your marriage while the other issues are still being hashed out.

You can split your divorce case into two sections. The court can adjudicate just the issue of marital status and declare that you are no longer married. This can often be accomplished much more quickly than resolving all the divorce issues that are under contention. The Family Law Court will retain jurisdiction over the other issues such as how marital property is classified and divided.

If you obtained a judgment changing the marital status but leaving the other issues under the control of the Family Law Court, and you pass away before the other issues are resolved, then your divorce case would essentially continue after your death. Instead of an attorney representing you in the negotiation over property division, debt allocation, and other issues, the attorney will be representing your personal representative acting on behalf of your estate. However, your death would usually automatically end the court’s jurisdiction over custody, child support, and alimony.

Your former spouse would no longer be the beneficiary of your will, trusts, and retirement plans (although the spouse would get a share of retirement benefits as marital property). If you and your spouse owned property together, your interests in that property would pass to your heirs or beneficiaries, although if your spouse was the beneficiary of your life insurance policies, the end of the marriage would not change that designation.

Incomplete Divorce Proceedings May Have No Impact on Your Estate

Unless the Family Law Court has already adjudicated some issues, everything else pertaining to the divorce loses effect if you pass away before proceedings are finalized. Your estate plans—or lack thereof—would operate the same way as if you were still happily married. Your share of marital property and all your separate property would be distributed to beneficiaries under your will as written, even if everything is set to go to the spouse you wanted desperately to cut ties with. If you don’t have a will, trust, or other estate plans, the California laws of intestate succession will determine who receives your property. Your share of community property would go to your spouse, and some or all of your separate property as well.

Update Your Estate Plan to Protect Your Loved Ones

If you want to protect your children or other loved ones such as a new partner, it is a good idea to create or update your beneficiary clauses and estate planning documents to the extent that the law allows while your divorce is in progress. This includes creating or changing powers of attorney to give someone other than your soon-to-be-former spouse the ability to make medical decisions on your behalf or manage your finances if you become incapacitated.

Couples often create estate plans together, and since you know you are separating your life from that of your spouse, you can go ahead and memorialize that separation in your estate plans now. The law might restrict your ability to change your life insurance beneficiary and other facets of your plan while the divorce is in progress, but talk to an attorney about taking the best available steps to protect your loved ones during and after the divorce.

Holstrom, Block & Park Can Adjust Your Estate Plans While Your Divorce is in Progress

The actions you take in one aspect of your life can and should affect other aspects of your life, and estate planning is no exception. The team at Holstrom, Block & Parke, APLC includes not only experienced divorce attorneys but also a legal team dedicated to creating the right estate plans to protect you now and in the future. For questions about divorce or estate planning, call us at 855-426-9111 or contact us online to schedule a consultation with one of our attorneys today.