For many divorcing couples, the assets in retirement plans represent a significant portion of marital property. Both the process of valuing and dividing these assets can be extremely complicated.

As you develop plans for dividing assets in divorce, it is important to understand the value in current terms, the potential future value, tax consequences, and the special steps that must be taken to allow these assets to be allocated in divorce. Mistakes can lead to costly delays and unnecessary tax liability, so it is a good idea to work with legal and financial professionals who understand the special handling required for retirement assets, particularly qualified retirement plans.

Why Retirement Plans Add Complexity to Divorce

Employers frequently offer numerous types of retirement plans and compensation bonus plans as incentives to their valued employees. Some of these benefits become available right away, but others require the employee to wait until the interest is vested to attain full value. It can be quite a challenge to value and divide assets that are not fully vested. It is also difficult to ascertain the current value of a defined benefit plan that is not expected to pay benefits until a future date.

Moreover, many retirement plans are considered “qualified plans” under the federal Employee Retirement Income Security Act (ERISA) and these require special handling to avoid tax issues. Plans such as 401(k) plans, profit-sharing plans, 403(b) plans, and Keogh plans are considered qualified plans. Employers generally deduct pre-tax wages to invest in these plans, and taxation on the growth of the funds is deferred until the funds are withdrawn.

So, when assets are withdrawn to provide to a spouse in divorce, one or both spouses could be hit with a tax bill for the deferred taxes as well as a penalty for early withdrawal. However, this can be avoided with the right planning.

Using a Qualified Domestic Relations Order (QDRO)

Before the administrator of a retirement plan can release funds to a former spouse in conjunction with a divorce, they generally need a domestic relations order from the court that explicitly gives the spouse the right to receive a disbursement. If that order meets certain requirements, it is considered a Qualified Domestic Relations Order, generally known as a QDRO. When funds are withdrawn from a retirement account with a QDRO, both spouses can avoid immediate tax liability or early withdrawal penalties. However, funds received by the non-earning spouse may need to be reinvested into another retirement fund to avoid current tax liability.

A QDRO must be drafted carefully to contain elements that satisfy government requirements. A law firm or legal specialist typically prepares the order according to the terms of the divorce settlement and presents the order to the court for approval and execution. Once the court approves the order, then the spouse obtaining the distribution from the retirement plan will need to submit it to the administrator of the plan, and it may take considerable time for the plan to approve and pay out the funds. It is important to ensure that the terms of division in the divorce decree fit with the options allowed by plan administrators, or the order may need to be redrafted and distributions will be further delayed.

California law requires that in some cases, the administrator of the plan will need to be added as a party to the divorce through joinder before orders can be established. When this is necessary, it must be completed before the QDRO can be issued.

How Much of Your Retirement Plan Will You Lose in Divorce?

The amount of funds that will be removed from a retirement plan and disbursed to a spouse in divorce will depend on many factors. First, if the couple executed a pre- or postnuptial agreement that addresses retirement plan assets, the terms of that agreement will be followed over the default terms under the law.

If you don’t have an agreement, then retirement assets are subject to division as community property. The value of contributions to the plan made during the marriage and the value of appreciation during the marriage would be split equally between spouses. If your spouse also accrued retirement benefits during the marriage, you are entitled to half the value of those. So the amount you could see taken from your retirement plan will depend on how long you were married, how much value was added to the plan during the marriage, and how much your spouse may also have accrued in their own plan.

Holstrom, Block & Parke, APLC Works to Protect Your Interests in Retirement Assets

You worked hard to build up your retirement assets, and we want to help you protect your property. The experienced team at Holstrom, Block & Parke, APLC has over 300 years of combined experience safeguarding the assets of our clients in divorce, and we understand the intricate details that must be managed to secure the best outcome with respect to all assets, including retirement plans. For a confidential consultation to learn how we can protect your interests, contact our team today.

Deciding to get a divorce isn’t an easy choice, but when you understand more about the process, you give yourself a greater base of knowledge on which to form your decisions. Learning about the grounds you can use to file for divorce in California can help you determine whether divorce is appropriate in your situation. So let's delve into what California law says about acceptable grounds for divorce.

No-Fault Divorce

California is considered to have a “no-fault” divorce system. Aspects like adultery or other forms of marital misconduct generally don't have a direct impact on the eligibility to file for divorce or the granting of the divorce itself. Unlike fault-based divorce systems, where cheating or abuse can be leveraged for a more favorable settlement, California's courts usually don't consider these factors when deciding to grant a divorce.

The primary question the court considers is whether the marriage is "irretrievably broken." By eliminating the need to prove fault, the system aims to make the divorce process less adversarial and emotionally draining. Therefore, even if one spouse has committed adultery or another form of marital misconduct, it won't typically affect the court's decision about whether to dissolve the marriage.

Two Grounds for Divorce

There are only two grounds for divorce recognized by the California Family Code, and most divorces are granted on the basis of one factor. That is, most divorces are based on “ irreconcilable differences, which have caused the irremediable breakdown of the marriage.” The other legal ground on which to seek a divorce is one partner’s “permanent legal incapacity to make decisions.”

Irreconcilable Differences

The term "irreconcilable differences" offers a lot of flexibility when you're considering divorce. You don't need to pinpoint specific incidents of wrongdoing, like adultery or abuse, to justify the decision to separate. You and your spouse may simply have philosophical, emotional, or practical differences that have led you to the point where staying married isn't tenable. Filing on this ground avoids a lot of the finger-pointing and stress that can accompany divorce proceedings, making it easier and often quicker to move through the legal process.

Legal Separation Before Divorce

Legal separation can be an interim step if you and your spouse aren't entirely sure that divorce is the right option. While legally separated, you can divide assets and debts, figure out child custody arrangements, and live separately, all without legally ending the marriage.

It's a way to get a feel for what divorce would entail emotionally and financially. After a period of legal separation, if you decide that reconciliation isn't possible, transitioning from legal separation to divorce can be more straightforward since some of the agreements may already be in place.

Divorce on the Grounds of Incurable Insanity

The option to divorce on the grounds of "incurable insanity" is not commonly used in California but it is still a legally valid reason for divorce. This would require proving with medical or psychiatric evidence that one spouse is and will remain incurably insane.

Because this involves bringing medical professionals into a legal proceeding, this approach can be more time-consuming and costly. It also might involve more emotional turmoil, given the serious nature of the claim. Therefore, most couples opt for the no-fault ground of "irreconcilable differences" unless the situation truly warrants a claim of incurable insanity.

What Happens to the Assets in California?

Asset distribution can be one of the most contentious parts of a divorce. In California, a community property state, any assets acquired during the marriage are typically divided equally between both parties. However, any property or assets you owned before the marriage remain yours, unless commingling of assets occurs.

While adultery or other forms of wrongdoing during the marriage do not provide grounds for divorce, they can impact the division of marital property. If one spouse’s divorce attorney demonstrates that the other spouse’s bad conduct wasted marital assets, that attorney could persuade the judge to award additional marital property to the other spouse to make up for the waste.

Residency Requirements in California

To file for divorce in California, at least one spouse must be a resident of the state for at least six months. Additionally, one spouse must have resided in the county where you plan to file for at least three months. If both parties agree to the divorce terms, they can finalize the divorce out of court, but it can be very difficult to reach an agreement on all the issues without legal assistance.

Contact Holstrom, Block & Parke, APLC

Even though it may be simple to determine the grounds for divorce in California, other aspects of the process can be quite complex. The terms of your divorce will affect your life for years to come, so it is worthwhile to invest time and resources to ensure that you receive a fair settlement.

To put our experience to work protecting your interests in divorce, call Holstrom, Block & Parke APLC, today at (844) 237-5791 or contact us online to schedule a consultation.

For couples facing challenges in marriage, the decision of how to move forward can be daunting. California offers two main options for those looking to redefine their marital status: divorce and legal separation.

Each carries its own set of implications, benefits, and drawbacks. In this post, we'll delve into the differences between the two to help you understand which might be the right fit for your situation.

Understanding Divorce in California

In the Golden State, the process of divorce, sometimes referred to as the dissolution of marriage, is more than just the legal conclusion of a marital bond. It signifies a turning point, a fresh chapter. When a couple in California chooses to divorce, it means they're transitioning not only the emotional aspects of their relationship but also the tangible components of their shared life.

Of course, divorce grants the freedom to remarry or start a new domestic partnership. However, in the process, the couple must navigate intricate decisions regarding property distribution, the future care and custody of their children, and financial elements like spousal and child support. Opting for divorce is a profound step. It's definitive, severing all marital ties once concluded.

Legal Separation Does Not End a Marriage

Legal separation offers a different path for couples with troubled marriages. Instead of completely dissolving the marital bond, a legal separation allows couples to create some distance, physically and financially, while still remaining legally married.

This route can be the best solution for those guided by personal convictions or religious beliefs that discourage formal divorce. It's also very helpful for those wishing to retain shared benefits based on marriage, such as health insurance or Social Security benefits. Because legal separation lacks the finality of divorce, it is often chosen as a step for couples who are uncertain about whether they wish to save their marriage.

In the legal separation process, couples must still grapple with many of the same decisions as divorcing partners, such as splitting assets or determining child custody. But the legal sanctity of the marriage remains untouched, offering a unique blend of autonomy and connection.

Is Legal Separation a Better Option Than Divorce in California?

Many couples who are unhappy with their marriage still feel that they are at a crossroads where they're uncertain about the permanence of their decision. For those in California contemplating this critical choice, legal separation emerges as a viable alternative to divorce. Legal separation offers the hope of reconciliation. Couples often find that life apart provides the clarity or healing time needed, enabling each spouse to reflect and grow. They might come back together with renewed commitment or move toward divorce feeling confident that they are taking the right step. Legal separation grants couples breathing room without irrevocably severing the marital bond.

Financial factors can also influence the decision. In California, legal separation allows couples to maintain certain marital benefits. For instance, they may continue to file joint tax returns, potentially benefiting from tax breaks that wouldn’t be available post-divorce. If one spouse is covered under the other’s health insurance plan, they can continue to receive coverage.

For some, personal or religious beliefs make divorce unappealing or impossible. Legal separation respects those convictions, providing an avenue to live separately without violating deeply held beliefs. In essence, legal separation in California offers a flexible solution. It acts as a bridge for couples seeking space and time, without forcing them to make an irreversible decision about the future of their marriage.

Implications on Property and Assets

As a community property state, California views assets acquired during marriage as jointly and equally owned, unless a couple has executed an agreement providing otherwise. Although couples who are legally separated remain married, they divide up community property just as if they were getting divorced. After the separation, assets and debts acquired belong solely to the acquiring spouse. A legal separation offers protection for a spouse who is concerned about poor financial decisions of their partner.

Making the Right Choice for Your Situation

There's no one-size-fits-all answer when deciding between divorce and legal separation. The choice depends on your individual circumstances, beliefs, and future plans. Whether it's considering potential financial implications, emotional well-being, or the future of your children, it's essential to weigh all factors. Remember, both processes require legal paperwork and court intervention in California.

Contact Holstrom, Block & Parke, APLC in California

Divorcing or considering legal separation in California can be a challenging process. It's crucial to have the right guidance. The team at Holstrom, Block & Parke, APLC is here to assist. Reach out to us today at (844) 237-5791 or contact us online to schedule a consultation with a knowledgeable divorce lawyer in Southern California.

Divorce is complicated in California, and the more property involved, the more complex the proceedings become. Two of the factors that complicate property division in divorce are ownership of real estate and situations where separate and marital property have transformed or become commingled.

Quit claim deeds and transmutation agreements are two tools that can simplify property division issues in a California marriage as well as in divorce. Before using them, however, it is important to understand how they work.

What is a Quit Claim Deed?

A quit claim deed is one of the most common instruments used for real estate during the property division process. Essentially, this type of deed transfers ownership of real property without guaranteeing the grantor holds a valid title.

In a divorce, unlike a real estate sale transaction, the parties know each other and have mutual interests in and knowledge about the validity of the title. When a spouse wishes to transfer their interest in shared property, a quit claim deed can do the trick without unnecessary complications or expense.

The Role of Transmutation Agreements

Transmutation agreements in California are pivotal tools that affect the characterization of property in marriage and divorce. These agreements allow couples to reclassify the nature of their assets–where they are separate property or community property–granting them control over their property status.

For a spouse who wants to protect an inheritance or a particular asset from potential division, a transmutation agreement can be used to secure its separate nature. These agreements simplify the divorce process because they serve as clear evidence of a couple's intent about the nature of their property and they establish that nature in a legally enforceable format.

Imagine a situation where one spouse brings a fully paid-off home into the marriage. Ordinarily, that home could be considered that spouse’s separate asset (although some disagreement could arise if marital funds were used to pay for improvements.), Both spouses might decide the house should be a shared marital asset. Creating a transmutation agreement turns this intent into a legally recognizable decision. Conversely, if a couple purchases an asset together but later agrees that it should belong solely to one party, a transmutation agreement could solidify that choice.

Key Aspects to Note with Transmutation Agreements

It's crucial to understand some key aspects when considering transmutation agreements in California. First, for assets acquired or transmuted after January 1, 1985, the agreement must be documented in writing. This ensures there's a clear record of the spouses' intentions.

Second, both spouses must provide their express consent for the agreement to be valid. Lastly, but most importantly, there must be full disclosure about the implications of the change. This transparency is vital not only for the clarity of both parties but also to sidestep any potential legal challenges or pitfalls down the line.

The Link Between Quit Claim Deeds and Transmutation

Transmutation of real estate can be more complicated than transmutation of other types of property. Once spouses decide to transmute a piece of real estate, the quit claim deed becomes the final stamp on that decision. Think of transmutation as expressing the intention and the quit claim deed as the action.

Though quit claim deeds seem straightforward, they can lead to misunderstandings or financial troubles if not approached correctly. It's crucial to remember that while a quit claim deed changes property ownership, it doesn't alter financial obligations tied to that property, like mortgages. So, if you transfer your property interest to your spouse, but your name is still on the mortgage, you remain financially liable.

Seeking Guidance in Property Transmutation Matters in California

Transmuting property isn't just about signing documents. It's about making informed choices that protect your interests and financial future. Before transforming the character of a property, you need to consider its value, equity, tax implications, and any associated debts. It's important to look beyond the present to think about the long-term impact on your financial well-being. Once an agreement has been entered, it can simplify the divorce process, but your property settlement could potentially be reduced.

At Holstrom, Block & Parke, APLC, we can help you make the right choices for your relationship or during the process of divorce, ensuring that your property decisions align with your best interests.

If you need assistance creating a transmutation agreement or want to better understand how an agreement and quit claim would be used in divorce, our team is here to assist. Reach out to Holstrom, Block & Parke, APLC today at (844) 237-5791 or schedule a consultation online with our dedicated attorneys in California.

When you're facing a divorce in California, you deserve to receive the right share of property. Determining what that share should be is often quite a challenge. It is important to establish which assets should be treated as one spouse’s separate property that they keep in divorce and which assets should be divided equally as community property.

If one partner made a down payment on real estate before the marriage and then during the marriage community property was used to pay down some of the principal owed, then the Moore/Marsden calculation will probably be used to determine how much of the home’s equity is community property and how much should belong to the spouse who made the initial purchase.

So, if one of you owned a home before you got married, but during the marriage, mortgage payments were made from community earnings, then the house is a mix of both separate and community property. The Moore/Marsden calculation will be used to help determine each spouse's interest in the home.

Historical Context of the Moore/Marsden Calculation

The Moore/Marsden calculation derives its name from two landmark California cases: In re Marriage of Moore (1980) and In re Marriage of Marsden (1982). These cases set precedents in California family law regarding property division, especially when it comes to dividing homes where a down payment was made before marriage but where mortgage payments were paid with community funds.

These rulings emphasized the importance of fairness and equity in marital property division. Essentially, they ensured that if community funds (joint earnings from both spouses during marriage) were used to pay for a property initially purchased with separate funds, then the community has a right to a proportionate share of the property's equity. This equity is not only in terms of the direct contribution (like mortgage payments) but also in terms of the appreciation of the property’s value over time.

This legal foundation ensures that spouses aren’t unjustly enriched at the other's expense, particularly in a state like California with high property values. Given how common it is for couples to merge finances and contribute jointly to mortgage payments or home renovations, the principles established by Moore and Marsden have become more relevant than ever. It's essential to recognize that the Moore/Marsden calculation isn’t just an arbitrary formula; it's rooted in decades of legal thinking and is geared towards ensuring equitable outcomes in divorce cases. However, application of the formula is often far from simple, particularly when home improvements are involved.

Breaking Down the Calculation

Without getting too much into the math, the Moore/Marsden formula takes into account:

1. The property's original purchase price
2. The amount of principal one spouse paid before the marriage
3. The property’s value at the time of the marriage
4. The property's value at the time of divorce
5. The amount of principal paid down during the marriage from community funds

By considering these factors, the formula helps in establishing a clear line between what belongs to the community (both spouses) and what remains separate property.

To understand the calculation’s application in the real world, let’s use an example. Imagine you purchased a home in San Diego for $400,000 before your marriage, and between the down payment and payments made before the wedding, you paid $100,000 toward the principal. Over the course of your marriage, you and your spouse used joint funds to pay down another $100,000 of the principal.

Now, during divorce proceedings, the house has appreciated and is worth $500,000, so there is $300,000 in equity at stake. The Moore/Marsden calculation will factor in these amounts to determine how much of the equity should belong to the community. Remember that the amount allocated to the community will still be divided between the spouses while the amount determined to be separate property will go solely to that spouse.

Moore/Marsden Calculations Can Be Complex

Many factors can complicate the calculation. For instance, if the value of the home at the time of the marriage is not known, which is frequently the case, it can be difficult to determine the amount of appreciation that occurred during the marriage.

When improvements are made to the home during the marriage, that also complicates the determination. How much of the value increase should be attributed to the renovation? Were the funds used to cover the renovation separate or community property? Clear financial records help, but they are not always available. It is important to work with a divorce attorney who knows when to bring in a forensic accountant or valuation expert to assist in getting the calculation right.

Holstrom, Block & Parke, APLC Works to Get the Share of Property You Deserve

Divorcing in California when you own significant assets, like a home, requires a thorough understanding of the applicability of intricate property laws. The Moore/Marsden calculation is just one such example.

If you're looking to ensure the right allocation and division of assets in California, turn to a trusted source for assistance. Reach out to us at Holstrom, Block & Parke APLC today at (844) 237-5791 or contact us online to schedule a consultation. Our experienced team is ready to fight for your best interests every step of the way.

When you divorce in California, you get to keep property that is characterized as separate, and you have to equally divide property that is considered marital community property. So it makes a big difference how you characterize every piece of property in divorce.

And it can be a very confusing issue. Property can start out as one type and be transformed into another. This can happen through a formal transmutation agreement or in other ways such as when different types of assets are commingled.

If you have separate assets that may appear to be community assets, you want to take the right steps to protect your interests in that property, and that often involves tracing those assets. Assistance from an experienced attorney makes this process much easier.

Understanding Transmutation in California

In California, property owned by either spouse prior to the marriage remains their separate property unless it is transmuted into community property. Transmutation involves changing the character of an asset either through a written agreement or by the way it has been handled. For instance, spouses might sign an agreement stating that a business started by one of them before the marriage should be considered marital property owned by both of them.

If an asset has been mixed with marital assets, it may be considered transmuted. This can occur if a spouse puts separate funds into a joint account. Our experienced attorneys can help clarify if your assets have undergone transmutation and develop the best arguments to achieve your goals for property characterization and division.

The Importance of Tracing Assets in a Divorce

Tracing refers to the process of tracking the origin and journey of an asset to determine if it should be treated as separate or community property. This can be quite crucial in situations where an asset has been commingled with marital assets. The team at our San Diego law firm can assist you in tracing your assets, allowing for a fair division during your divorce.

The tracing process can be a complicated endeavor, requiring extensive record-keeping and a keen understanding of California law. Records such as receipts, account statements, and property deeds can be invaluable during tracing. Our team can help you gather the necessary documentation and guide you through this complex process. In some cases, we work with forensic accountants to establish the origins and history of separate assets.

Avoiding Transmutation with Help from Holstrom, Block & Parke, APLC

You deserve to keep property that is rightfully your separate property, but proving your property is separate can often be a challenge. While it is best to keep your separate and marital assets distinct, in the real world, this can be difficult, and that’s where asset tracing can be particularly important.

If you're unsure about the status of your assets, you need a divorce attorney experienced in asset tracing and division. Call us at Holstrom, Block & Parke APLC today at (410) 590-9401 or contact us online to schedule a consultation with a knowledgeable divorce lawyer in Southern California.

When you’re untangling a big knot, you loosen the strings and try to figure out where they came from. The process of characterizing assets in a California divorce is somewhat similar. Each string– meaning each asset–may look like it should be characterized as separate property or community property, but you can’t tell for certain until you follow the string back to see where it originated and what happened to it along the way.

One of the first steps toward getting the right allocation of property in your divorce is to ensure that all assets are properly characterized. At Holstrom, Block & Parke, APLC, we have the experience and financial acumen to help you protect what’s rightfully yours in divorce, and that includes making strong arguments to show why property should be characterized in your favor.

Community Property vs. Separate Property in California

In California, property acquired during marriage is generally considered community property, and it's divided equally between spouses upon divorce. Conversely, separate property is any property one spouse owned before marriage or acquired during the marriage by gift or inheritance. It typically remains with the original owner after a divorce.

However, it’s important to realize that separate property can transform into community property. Moreover, property that might appear to be jointly owned marital property can be kept separate through a prenuptial agreement or a validated postnuptial agreement.

Transformation of Property in California

The character of property can be changed or prevented from changing through a written agreement, and it can also change when separate property is commingled with community property. For instance, if a spouse inherits money and deposits it in a joint bank account, the spouse has commingled separate property with community property, and it becomes more challenging to divide the funds in that account during divorce.

Transmutation is a more formal process for changing the character of property. It requires a written agreement.

Creating a Transmutation Agreement

At one time, a spouse in a California divorce was allowed to claim that the other spouse informally agreed to change the character of certain property, and that oral agreement could be enforceable. But these unwritten agreements were very hard to prove, so California law now requires transmutation agreements to be in writing and to follow specific rules.

The terms of the agreement need to be clear and unambiguous and both parties must receive certain essential information before signing or the agreement could be ruled invalid. In addition to ensuring that a transmutation agreement meets legal requirements, it is also important to consider the implications of the agreement such as the impact on tax liability.

Holstrom, Block & Parke, APLC Protects Your Share of Property in Divorce

Whether you're considering transmutation or dealing with any other divorce-related issue, the team at  Holstrom, Block & Parke, APLC, is here to help. We understand the intricacies of California law and can guide you in making decisions that protect your interests. Call us today at (844) 237-5791 or contact us online to schedule a consultation with a knowledgeable divorce lawyer in Southern California.

If you’re married, you need to understand your rights and responsibilities under California law regarding marital property and debts. One aspect of California property law that often generates questions and confusion is the concept of transmutation agreements.

What are they? How do they function in the context of a marriage or a divorce? In this post, we’ll shed some light on this crucial topic, but feel free to contact us if you have questions about transmutation of property in your particular situation.

Grasping the Concept of Transmutation

Transmutation agreements might sound complicated, but they're relatively straightforward once you break them down. Essentially, they are legal documents that spouses in California use to change the character of their property from separate to community, or vice versa. For example, if you owned a house prior to marriage (separate property), you could agree to change it to community property through a transmutation agreement. Similarly, a home purchased during marriage (community property) could be transmuted into separate property.

Why does this matter? The character of property is vitally important in the event of divorce, but it also plays a role in inheritance, taxation, and other issues.

California's Community Property Law and Transmutation

Because California is a community property state, assets and debts acquired during marriage are generally treated as community property and split evenly in a divorce. But what if you want to protect certain assets? Or perhaps you want to share an asset that you brought into the marriage?

That's where a transmutation agreement comes in. With this legal tool, you and your spouse can decide together how you want to classify your assets, regardless of when they were acquired.

The Importance of a Written Agreement

In California, transmutation agreements need to be in writing in order for them to be enforceable. A verbal agreement simply won't cut it, and it's also vital that the agreement is explicit about the intention to transmute the property. An experienced California family law attorney can help you craft a transmutation agreement that clearly reflects your intentions as well as your spouse's, protecting your interests and avoiding potential disputes in the future.

Transmutation Agreements and Divorce

When a marriage ends, a transmutation agreement can play a significant role in the division of assets. It might be used to confirm separate property that would otherwise be considered community property or to split a separately owned asset amongst the parties. A clear, well-drafted transmutation agreement can streamline the division of property during divorce, making the process more predictable and potentially reducing conflict.

Potential Pitfalls of Transmutation

Despite their advantages, transmutation agreements also have potential pitfalls. For instance, they might result in inadvertent tax consequences. In addition, the court might view the agreement with suspicion if it appears one spouse was disadvantaged. Therefore, it's crucial to consult a California divorce lawyer before entering into a transmutation agreement to understand the implications fully.

Holstrom, Block & Parke, APLC Protects Your Property Interests in California

Transmutation agreements in California can have significant effects on the outcome of a divorce and they can impact your finances in other situations as well. It's important to understand the legal and financial consequences before making any decisions.

At Holstrom, Block & Parke, APLC, we have experience with all aspects of California family law, including transmutation agreements. Call us at 410-590-9401 or contact us online to schedule a consultation. We're ready to help you understand your options and make informed decisions.

It is an unfortunate fact of divorce in California that sometimes a spouse will try to deliberately hide assets so they can gain an unfair advantage. In other cases, spouses will forget about assets or have difficulty locating them.

In any of these situations, it is helpful to call on a divorce attorney with experience uncovering hidden assets. At Holstrom, Block & Parke, APLC our team of Certified Family Law Specialists and associates knows how to identify hidden assets and we understand the most effective ways to ensure you receive the right share of property in your divorce.

What are Hidden Assets?

The term hidden assets refers to property or financial resources that one spouse does not disclose during a divorce. This can range from secret bank accounts and real estate investments or to valuable personal items and property cloaked by false transactions. Unfortunately, some spouses attempt to obscure assets to influence the division of property in their favor, which is why you need vigilant representation.

Types of hidden assets vary broadly, spanning from clandestine cash hoards to concealed business interests. They may include undisclosed life insurance policies, investments in cryptocurrency, or foreign holdings. Additionally, phantom income from a business, artwork, antiques, or any high-value collections kept secret are also regarded as hidden assets. When a spouse operates a business, they have opportunities to hide assets by paying salary to nonexistent employees, making payments that are later reversed, and a variety of other tactics.

California's Stance on Hidden Assets

Under California’s community property laws, assets accumulated during the marriage are deemed to be jointly held, regardless of who acquired them. This extends beyond obvious assets such as your residence or vehicles to include salary, investments, retirement funds, business interests, and more.

Efforts to achieve a fair division of property fail when a spouse chooses to covertly squirrel away assets. However, if the attempt at hiding assets is revealed to the court, judges can require that spouse to make restitution and there could be other legal consequences as well. Judges tend to take a dim view of fraud during the divorce process, so when you can uncover attempts to hide assets, a skilled attorney can use this knowledge to your advantage. Efforts to hide assets not only affect property division but also can also impact decisions on child support and alimony, so it is crucial to have an accurate accounting in divorce.

How We Can Help Uncover Hidden Assets

The experienced team at Holstrom, Block & Parke knows how to uncover attempts to hide assets to ensure a fair distribution of property. We investigate transactions, dig up records, and scrutinize everything to determine if assets are missing from accounts, and to locate and value those assets.

The process is intensive, particularly when one spouse owns a business. We look for assets hidden through means such as:

• Accounts that use a different name or social security number
• Gifts given to friends and family members who could be temporarily holding property with the intent to return it after the divorce
• Accounts opened in the name of a minor or other vulnerable individual
• Repayments of fake loans that will be returned after the divorce becomes final
• Fraudulent business expenses or concealed profits
• Overseas accounts
• Collectibles with an unusually high value

As experienced family law litigators, our team knows how to use strategic discovery tactics to uncover documents and information that can expose hidden assets. Skillful questioning often reveals valuable information about false loans and other suspicious transactions. We can also uncover evidence of assets depleted on an extramarital affair or other wrongful undertaking.

In addition, we work with seasoned professionals, including forensic accountants, expert property appraisers, and other niche specialists to delve into the complexities of your marital estate. Our approach is meticulous; we trace the monetary path, scrutinize every inconsistency, and question each inexplicable transaction to secure a just settlement that truly reflects your entitlements. We can uncover not only assets that were hidden intentionally but also those that may have been forgotten or misplaced over time.

Holstrom, Block & Parke Helps You Get the Assets You Deserve in Divorce

If you suspect your spouse may be trying to conceal assets during your divorce proceedings in California, you need to protect yourself. The sooner you act, the easier it may be to uncover hidden funds or other property.

We have the knowledge and experience to help. Reach out to us at Holstrom, Block & Parke today at (855) 395-5111 or contact us online to set up a consultation with a divorce attorney skilled at locating hidden assets and protecting your property interests.