Orange County Divorce Lawyer Blog

In the latest twist in what is becoming a large - and very public - Southern California divorce proceeding, businessman Elon Musk has published a long essay at The Huffington Post to, in his words, "correct" the public record about his California divorce from ex-wife Justine and his financial situation.

As I originally noted back in May, Justine, a successful novelist, has taken to blogging about her divorce, using the public forum of the internet to defend her contention that the couple's post-marital agreement was "extremely harsh" and needs to be renegotiated. Several weeks later word began circulating in the business press that Musk was essentially broke - subsisting on loans from friends "and spending $200,000 a month while making far less."

In his Huffington Post article Elon Musk, one of the founders of PayPal, seeks to address the image those reports created: of a man so rich that he felt he could not scrape by each month on what, for most Americans, is a head-spinning sum of money. While stating that "I never said... I was "broke" or even that I lacked considerable assets," Musk claims that the vast majority of that monthly figure - $170,000 - is going to the accountants and lawyers working on his divorce-related issues. Another $20,000, he says, goes to Justine each month with the remaining $10,000 covering his own living costs. He also goes out of his way to defend his continued use of a private plane, saying it is essential to his work as head of both SpaceX, a company trying to bring commercial uses to space exploration and Tesla, an auto company that is preparing to launch an all-electric car aimed at consumers.

The on-going, very public, feuding of Elon and Justine Musk is a painful reminder of just how bitter and stressful some Orange County and Los Angeles divorces become. It is also a reminder how important it is to have an experienced Orange County divorce lawyer in your corner when entering this adversarial process. If your ex, or soon-to-be ex, is trying to complicate the California family law and divorce process or turn friends and neighbors against you by putting private details into the public domain, it pays to have an Orange County divorce attorney working on your behalf to correct the distortions.

The Huffington Post: Correcting the Record About My Divorce

The situation involving Elizabeth Edwards and John Edwards is not uncommon for couples in distress. Elizabeth and John are separated but they do not intend to file for divorce until someone decides to remarry. For most people, upon one person's infdelity, it would make sense for the other party to want to cut all ties, divorce and move on with their life. Such is not the case for Elizabeth and John Edwards. Elizabeth states that the couple plan to sell their $5.5 million mansion in Chapel Hill, North Carolina because their "dream house" just does not have any meaning anymore.

In divorce proceedings here in Los Angeles County and Orange County, liquidation of a community property residence is normal. It's one step towards resolving the property division aspect of the divorce. However, sometimes, if the couple have minor children, the parent raising the children usually wants to hold on to the house until the youngest child turns 18 so that the child can continue with their education in the environment they have grown familiar to. The less disruption for the child, the better the situation becomes. The Edwards' still have two minor children together. So, it is unknown what the couple intends to do regarding whether they intend to send the two minor children to the same school and/or if they will continue to reside in the same area.

For more information on child custody, visitation or disposition of a community property asset, such as a home, contact and Orange County divorce lawyer for more information.

Source: cbs2news.com Elizabeth Edwards: No Divorce from John Planned

Actor Michael Douglas and his first wife Diandra finalized their Southern California divorce a decade ago, but she now insists their California family court settlement entitles her to half of his profits from a movie that hasn't even been released yet. According to the New York Post, Diandra has filed suit in a New York court seeking half of the money Douglas will receive from "Wall Street 2", a sequel to his 1987 Oscar-winner. The movie is scheduled to premier in September.

According to the celebrity website PopEater, Diandra's claim is based on a clause in the couple's California divorce settlement giving her half of the proceeds from work Douglas did during the couple's marriage. Since Douglas plays the same character in the new movie that he did in the original, she is asserting that the forthcoming film fits the settlement's definition of "residuals, merchandising and ancillary rights".

According to the Post, Douglas' lawyers have filed papers claiming that a "sequel" is not the same thing as a "spinoff". Were the new film the latter, they say, she would have a case; but, they argue, it is the former - and that means she is not entitled to a cut. Douglas' lawyers are also arguing that California family court is the proper venue for the suit since the couple were divorced in the state. Diandra's attorneys say they filed in New York because that is where both of the ex-spouses now live.

This case highlights the fact that unexpected issues that can arise long after the fact in an Orange County divorce settlement. National media have recently highlighted cases of other long-divorced spouses (though, to be fair, not movie stars) seeking to renegotiate their settlement agreements because of changed economic circumstances. Such situations are moments when having an experienced Orange County divorce lawyer in your corner is of the utmost importance. A Los Angeles or Orange County family law attorney can help identify areas in your settlement that may become problems in the future, and can suggest ways to avoid trouble.

PopEater: Michael Douglas' Ex-Wife Wants a Piece of His 'Wall Street 2' Money

New York Post: Michael Douglas' ex-wife greedy for his 'Wall Street 2' $$

Are you as sick and tired as I am about hearing Jake Pavelka and Vienna Girardi talk about their split? Ugh, these two are only after publicity, just like Heidi and Spencer, but not as bad (yet). Why would you want to broadcast the details of your relationship/split to the media if you did not have some ulterior motive? Imagine all the dirty laundry that would result had these two gotten married and divorced years later? At any rate, one issue that comes to mind after Jake and Vienna's split is what happens to Vienna's 2.72 carat Neil Lane engagement ring? According to reports, Neil Lane himself believes the ring will be returned to Warner Brothers.

From an Orange County Divorce lawyer's perspective and in the event Jake and Vienna did get married and later divorced, the disposition of the engagement ring upon divorce would be different. An engagement ring given to the bride would ultimately become the separate property of the bride. Afterall, it is a gift. For the most part, any gifts given by one person to the other during marriage will be the recipient's separate property, unless otherwise provided in writing. So, if the husband tries to allege that he should get the ring back, his grounds will likely be invalid unless he has a premarital agreement in place or something in writing stating that the engagement ring should be returned to him upon a divorce. With that said, as a general rule, the engagement ring should remain with the recipient unless the recipient deems it only fair to return it. .

For more information on how to dispose of assets during a Los Angeles County or Orange County Divorce, please contact a Costa Mesa family law attorney.

Source: What will Become of Vienna Girardi's Engagement Ring?

When going through a divorce, it is pretty common for parties to dispose of their assets by listing a family residence for sale. It is especially the case if one party cannot afford the mortgage payments. If that is the case, a buy-out is usually unlikely and the parties must sell the residence.

Indeed, California Family Code Section 2108 provides in pertinent part as follows: "[a]t any time during the proceeding, the court has the authority, on application of a party and for good cause, to order the liquidation of community or quasi-community assets so as to avoid unreasonable market or investment risks, given the relative nature, scope, and extent of the community estate..."

Further, pursuant to In re Marriage of Lee (1976) 63 Cal.App.3d 705, the court held that "the trial court could, with appropriate safeguards, have required one potential community asset be sold to save another such asset." The court further held that: "[n]othing in the Family Law Act would have prevented the trial court from ordering the sale of the claimed community property asset. . . without making any factual determinations beyond the value of the asset to be sold, provided it required security sufficient to protect the objecting spouse."

Such is the case for Orange County's Jesse James and Sandra Bullock. Jesse James has listed his beachfront Orange County property on the market for a whopping $6.75 million. I doubt James is listing the property because he cannot afford the mortgage payments. His pal reportedly told People Magazine that he wanted more privacy, hence, he's listing the pad for sale.

At any rate, if you are contemplating a divorce in Orange County, please contact an Orange County divorce attorney.

Last month I wrote about Justine Musk and her unusual approach to her pending California divorce from billionaire investor Elon Musk. Justine, a novelist who specializes in supernatural thrillers, had taken to blogging about her settlement negotiations with Elon. As I noted at the time, she was demanding stakes in two of his business ventures as well as $6 million in cash, the couple's house, child support and alimony. There was speculation at the time that her demand for ten percent of Tesla Motors could complicate the company's plans to go public later this year.

The good news for investors is that the company now says the Los Angeles divorce case will not "affect its plans to list its shares," adding, according to the Reuter News Agency, that Tesla "does not rely on (Elon Musk) to provide further funding." The news agency reports that in an SEC filing last week the company stated "we do not believe that Mr. Musk's personal financial situation has any impact on us."

The week's other Musk headline, however, concerns Elon's 'personal financial situation': the billionaire co-founder of PayPal now claims to be having money problems. According to the Silicon Valley Business Journal, Elon Musk recently said "in legal filings that he has been getting by 'on personal loans from friends since October 2009 and spending $200,000 a month while making far less.'" The Business Journal, citing the blog Venturebeat, says Elon contended in a February court filing that has now come to light, that he has "run out of cash."

We can all speculate on how one might find ways to economize on a $200K per month lifestyle - but the divergent pictures of Elon Musk's finances are a reminder of why anyone contemplating an Orange County, Los Angeles County or Southern California divorce needs to spend time talking strategy with an Orange County divorce lawyer. Simply put: Justine Musk still believes her husband to be loaded. He says he is broke. Sorting through claims like these to find the truth and reach a fair settlement is what Orange County family law and divorce attorneys do.

An experienced Orange County or Los Angeles divorce lawyer can walk clients through the procedures necessary to get the information a spouse may be withholding, protecting a client's rights and his or her future.

Reuters: RPT - Tesla says not affected by CEO's divorce dispute

Silicon Valley Business Journal: Tesla CEO gets by with help from friends

Blogging about other people's Southern California divorces is one thing, but your own? While it is still being adjudicated? Say what you will, author Justine Musk is taking an unusual approach to negotiating her Los Angeles County divorce settlement. The real negotiating is, of course, taking place behind closed doors involving Southern California divorce lawyers. Musk, however, has used her blog to lay down a marker about what she wants and to defend it in public. The case of Musk and her husband, billionaire investor Elon Musk, is especially interesting because, as Reuters reports, Justine's demand for a stake in Elon's latest venture - the Tesla electric car company - may complicate plans for the company to go public.

According to LA Observed the couple have been married eight years and have five children. Elon Musk is a co-founder of PayPal. Justine Musk is a successful novelist, specializing in supernatural thrillers. LA Observed, quoting her blog, says she is demanding a 10 percent stake in Tesla, as well as five percent of another Musk venture, Space X. She also wants $6 million in cash, the couple's house, child support and alimony... and a Tesla Motors Roadster (retail price: $109,000).

Reuters reports that Justine Musk's demand for a stake in Tesla Motors as part of her California divorce settlement "could complicate plans... to take the company public and retain $465 million in U.S. government funding to launch a mass-market electric car named Model S." The news agency reports that lawyers for both spouses did not return calls seeking comment.

The case highlights an aspect of Orange County and other Southern California divorce proceedings that is not often publicized: the post-marital agreement (which is less well-known, at least to the public, than are prenuptial agreements). Justine contends that the agreement she signed shortly after the couple wed is "extremely harsh" and has asked the California divorce court to throw it out. An initial ruling favored Justine, but that is being appealed. If the lower court ruling stands she would be entitled to half of Elon's assets under California's community property laws.

Your marital affairs do not have to involve stakes of this sort to be complex and emotionally draining. Consulting with an Orange County divorce attorney is an essential early step in the often complex task of untangling a couple's affairs and making sure you get the settlement you deserve.

Reuters: Tesla stake on the table in CEO's divorce dispute

LA Observed: Author blogs her divorce from billionaire

Today, I read a report concerning two elderly Connecticut sisters squabbling over lottery winnings won by one of the sisters, Rose Bakaysa, and another brother. Turns out that Bakaysa and her brother won a $500,000 lottery jackpot back in 2005. Younger sister, Theresa Sokaitis, claims that Bakaysa violated a notarized contract they signed almost a decade earlier to split all future winnings. However, Bakaysa claims the two broke off the deal during a 2004 fight over a few hundred dollars. Sokaitis acknowledged the rift but believed that contract was still in place. You can read more about the story here. A New Britain Superior Court Judge is expected to issue her ruling in the next few months.

From an Orange County divorce attorney perspective, this report got me thinking about the effect of one spouse concealing lottery winnings from the other spouse during a divorce proceeding. Back in 2001, a Los Angeles County trial court ruled in a dissolution proceeding that lottery winnings concealed by wife during the proceedings to her ex-husband, constituted fraud. Marriage of Rossi, 90 Cal.App. 4th (2001).

The Court of Appeal affirmed said ruling. The court found that the funds used to purchase the lotto ticket were from a community property source and that wife's claim that same was a gift was not credible. The trial court found that wife intentionally failed to disclose her lottery winnings in the marital settlement agreement, the judgement and in her declaration of disclosure. She also intentionally consulted with a lottery commission as to how she could deprive her hsuband of a share of the prize, used her mother's address for all communications with the lottery officials and did not disclose samd throughout the divorce.

Continue reading "The Effect of Lottery Winnings in a California Divorce" »

Several celebrity news websites are reporting that a settlement has been reached in the California divorce of Playboy founder Hugh Hefner, which is expected to become final next month.

The relationship between Hefner, 83, and his wife Kimberly has, according to media reports, been an unusual one. The couple married in 1989 and separated in 1998, but only filed for a California divorce last year. In the interim Kimberly has been living with the couple's children in a house adjacent to the Playboy Mansion and Hefner has been paying her a monthly allowance.

Divorce settlements involving high-asset couples - especially couples in which one partner brings most of the assets into the marriage - can be especially complex. California prenuptial agreements were created, in part, to address situations like this. The Hefner settlement may also have been complicated by the unusual living arrangements the couple have had for more than a decade. Further complicating matters is a lawsuit Kimberly filed last year against the ageing publisher, demanding
$5 million as her share of the profits from Hefner's sale of the home where Kimberly and the couple's sons have been living. Hefner claimed in response that "he's paid her nearly $12 million since they separated," according to TMZ.

Though unusual in many respects, the Hefner divorce is also a reminder of the importance of securing the help of a skilled Orange County divorce lawyer who can help you chart a course through your California separation and divorce whatever their circumstances may be. Divorces that do not involve multi-million dollar homes or other significant California community property assets can be just as complex and contentious as those of movie stars or magazine publishers. The first important step to take involves finding a Los Angeles, Orange County or San Bernardino County divorce attorney who will give your case the careful attention it deserves, and fight for everything to which you are entitled.

Contactmusic.com: Hefner's Divorce Finalised in March

TMZ.com: Hugh Hefner Divorce: A Done Deal

One tedious aspect of going through a divorce is dividing up various community property furniture and furnishings. From an Orange County divorce attorney perspective, when completing a Schedule of Assets & Debts (which is required prior to getting a divorce), each party must itemize their respective assets and debts, whether they are separate property or community property. I often advise clients to not bother listing every single fork, knife, table, lamp etc. as the list of furniture, furnishings, artwork, jewelry can get pretty long. Instead, I advise my clients to simply list the items that are have value and leave the remaining items as "to be divided between the parties." However, sometimes couples cannot agree to divide anything amongst themselves. Afterall, these people are going through a divorce and the word "agree" has seemed to have disappeared from their vocabulary. At any rate, in such instances, there are alternate procedures to make such divisions equitable.

Continue reading "Kate Walsh Divorce: Dividing Furniture & Furnishings through Alternate Pick Method" »

For 12 seasons, from 1985 to 1996, Lenny Dykstra was a star major league baseball player. He later became a celebrity investment guru, writing a syndicated column and dispensing investment advice on national television. Today, reduced to bankruptcy and near-homelessness, he blames his troubles on his creditors (several of whom are presently suing him). Recent articles in the Wall Street Journal and the Ventura County Star detailing Dykstra's troubles do not paint a particularly sympathetic portrait of the three-time All Star, but they do highlight a connection between personal financial crisis and marital trouble ending, for Dykstra, in a California divorce filing.

Dykstra's financial woes (19 lawsuits, $37 million in debts, defaulting on not one but two estates) would take too long to detail here. From an Orange County family law perspective, however, the telling remark is one his wife Teri made to the Star (the couple are separated but not yet formally divorced). As Lenny's business ventures began to go sour the "very, very charming, funny, witty" man she met two decades ago slowly changed "into someone she no longer wants to be around." Today, Teri lives with the couple's children at a rented property in Thousand Oaks. A judge awarded her sole possession of Lenny's $5700 a month MLB pension.

For his part, the ex-baseball star blames his troubles on the bankers who loaned him tens of millions of dollars, telling the Star: "They're the ones responsible for me losing $38 million. They're the ones responsible for a 25 year marriage being dismantled piece-by-piece."

While the Dykstra family's case is, perhaps, a bit extreme it highlights a much simpler truth: financial troubles can often set an otherwise sound relationship on the road to a California divorce. It is especially important in such situations to have a compassionate and experienced Southern California divorce attorney on your side to assure a fair division of both assets and liabilities. Blaming the banks may make one or both of you feel better, but it does not solve the immediate legal issues arising from a California separation and divorce filing. To keep these from spiraling out of control an early consultation with a Los Angeles or Orange County family law lawyer is a wise precaution.

Wall Street Journal: Dykstra mansion on the market for $14.9 million

Ventura County Star: Ex-baseball player Lenny Dykstra tries to cope with personal, professional losses

As a noted in a previous post, there have been several high-profile instances reported in the media in recent months of long-divorced spouses returning to court and seeking to renegotiate settlements because their financial circumstances have changed. Now, from New York, comes another version of this: According to a recent Associated Press report, a Family Court judge in Manhattan has ruled that a prominent New York lawyer can't recover money he paid his ex-wife that was lost as part of the Bernard Madoff Scandal.

The division of assets in Steven Simkin's 2006 divorce included a $2.7 million payment the attorney gave his ex-wife as half of the value of their investment account with Madoff. We now know, of course, that Madoff has essentially pocketed the money. As a result, three and a half years later, Simkin's ex has cash but he is left holding a worthless investment account. Last week a judge ruled that Simkin's ex-wife, Laura Blank, does not have to return the money her husband paid her.

As is so often the case, this high-profile dispute can serve as a cautionary tale for the rest of us. An experienced Orange County divorce attorney can advise clients on the best ways to protect their assets during the process of dividing up California community property. Before the division becomes final it is important that due diligence is conducted to make sure all assets are properly valued. A Southern California divorce lawyer can help you make your way through this complicated process regardless of the size of the size of the estate involved.

AP at The Huffington Post: Steven Simkin Can't Recover Madoff millions from ex-wife Laura Blank: Judge

The link below will take you to a fascinating story published last week in Fortune magazine that is also a cautionary tale about the mixing of personal and corporate assets and how they can get tied up as part of a divorce. The article focuses on John Randolph "Bunky" Hearst Jr., a grandson of the legendary California newspaper magnate William Randolph Hearst. Though the article focuses on New York (where Bunky lives) the issues it raises can be even more complex in a state like California where divorce is governed by community property laws.

As the article details most of Bunky Hearst's came from the payments he received as a beneficiary of a family trust that controls the privately-held Hearst media empire (Hearst's assets include 200 magazines, 16 newspapers, the A&E cable channel and a 20% stake in ESPN). Even by the standards of privately-held companies Hearst is remarkably secretive. Yet, as the article notes, legal maneuvering around Bunky Hearst's divorce came close to spilling the company's most closely-held business secrets into the open.

The tale is a fascinating reminder not only of how intrusive and emotionally wrenching a divorce can be, but also of how it can create work-related disruptions with far-reaching consequences.

Stories like this remind us how important a skilled Southern California divorce lawyer is when a marriage is facing dissolution. Protecting your assets is a key part of any Orange County divorce proceeding, but keeping a business' affairs out of the court spotlight can be equally important - and even more complex. A full-service California family law firm can examine assets at any stage of a marriage, helping ensure that private affairs remain private.

Fortune: Citizen Bunky: A Hearst Family Scandal

In many California divorces possession of the family home is one of the most contentious issues. This should hardly be surprising: a house is the most expensive thing most people will ever own. As a recent article on Examiner.com notes, however, the national financial crisis has changed the way some people think about homes when they are splitting up. The article notes that it is no longer uncommon for both divorcing spouses to want the other one to take the house.

An analysis by Bloomberg News last summer indicated that 26% of properties nationwide are now 'underwater' (i.e. the property is worth less than the outstanding mortgage on it), and cited alarming statistics from Deutsche Bank predicting that the underwater rate might rise to 48% - yes, nearly half of all homes - by 2011. Looked at that way the trend cited by Examiner.com might not be so surprising. A house with a severely underwater mortgage can be seen as a liability rather than an asset.

Situations like these highlight the need for consultation with a skilled Orange County family law attorney if you are considering a Southern California divorce or legal separation. Attorneys from an experienced Southern California family law firm can assist with the division of assets in today's treacherous economic environment.

An underwater mortgage was once almost unimaginable - particularly in areas like Southern California that have long been known for their ever-rising property prices. Coping with this, and the other Los Angeles family law challenges emerging from the current recession, requires the services of a skilled professional.

Examiner.com: And you can have the house!

Bloomberg: 'Underwater' mortgages to hit 48%, Deutsche Bank says