Orange County Divorce Lawyer Blog

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

In order to avoid the pitfulls of divorce and consulting a Los Angeles County or Orange County divorce attorney, I came across a recent article on things to consider prior to getting married. Certainly, you do not want to plan for your divorce while you are planning for marriage, but it's really not a bad idea. With the spike in the divorce rate in Orange County and its surrounding cities, such as Costa Mesa and Huntington Beach, here is some food for thought prior to tying the knot.

Do you know ANYONE who is planning marriage? Are they getting good pre-marital counseling, which includes financial counseling? If not (or perhaps even if they are), send them to this post. This Three Step approach is meant for them.

Step One: Take This Quiz
Print out two copies of the following questions, then each of you answer them in writing. Do this in separate rooms or separate houses; just be sure to take your time and think through each answer.

How would you prioritize the following choices: getting out of debt, paying off house, investing for retirement, establishing an emergency fund?

How much money would it be OK to spend without discussing it with my spouse?

Do you think, upon marriage, you two should have separate checking accounts or joint accounts?

How would you feel about borrowing money from parents?

Do you currently balance your check book?

Upon marriage, which of you should balance your check book?

Do you currently live on a written budget?

How much debt do you currently have? What kind of debt?

How much debt and what kind of debt would be OK in your marriage?

Are you in favor of a pre-nuptial agreement? If you answered "Yes", explain your answer.

What is your credit score?

Have you ever NOT paid your bills?

Have you ever co-signed a loan? Had a loan co-signed?

Upon marriage, what would your short term financial goals be?

Upon marriage, what would your long term financial goals be?

What is the stupidest thing you have ever done with money?

What financial secrets does your fiancé not know about?

Which of these three best describes you: tightwad, average or spendthrift?

Which of these three best describes your fiancé: tightwad, average, or spendthrift?

Continue reading "Things to Consider Prior to Marriage" »

The California divorce proceedings of singer Paul Anka and his wife Anna are shaping up as unusually vitriolic, even by celebrity standards. The couple married in 2008. Paul Anka filed for a California divorce last December. Now, according to several celebrity news websites, he is also suing Anna for defamation.

The defamation allegations are, in a way, related to the divorce; specifically to the couple's California prenuptial agreement. Paul's suit charges Anna with claiming, first, that there is no prenuptial agreement, and later implying to Swedish media outlets (Anna is Swedish by birth) that a prenup only appears to exist because Paul forged her signature it.

Obviously, forging a partner's signature on a legal document would, if true, be a serious crime. For those of us without inside knowledge of the Anka marriage, however, the really noteworthy point here is the sheer speed with which the California divorce action has become both extremely public and extremely toxic. Over the last 30 years or so prenuptial agreements have become increasingly common tools, particularly when one of the spouses-to-be has significant assets they wish to protect in the event of a divorce. That there could even be a dispute among the divorcing spouses over the legitimacy of the prenup (assuming, for the sake of argument, that there is one) is a sign that this marriage is probably beyond saving.

The Anka dispute, therefore, highlights the importance of drawing up prenuptial agreements in a clear and professional manner - one that leaves little or nothing open to dispute. In this regard, the importance of finding an experienced Southern California prenuptial agreement lawyer who you feel comfortable with and can trust cannot be overstated. The fact that the Ankas appear to disagree on the legitimacy of their California prenuptial agreement makes it highly likely that one of the parties may also dispute the document's actual contents. Careful Los Angeles or Orange County family law work designed to minimize disputes at the beginning of a marriage can save both parties much trouble and expense if and when the marriage ends.

TMZ.com: Paul Anka Sues Estranged Wife for Defamation

Jam Showbiz: Paul Anka Sues Estranged Wife

The British newspaper the Daily Mail reports that fallout is continuing from the high-profile California divorce of former Monty Python star John Cleese. Though Cleese and his now ex-wife Alyce are English they lived in California during their marriage and went through their divorce in the state.

Under California's community property laws the couple agreed to a final settlement under which John Cleese reportedly owes his ex about $20 million. Among other things, she was awarded sole ownership of their Los Angeles-area home in the California divorce settlement. The newspaper reports that Alyce, having retained the Cleese name throughout the divorce proceedings, is now returning to the use of her former surname, Eichelberger. Considering that Britain's tabloids long-ago took to calling her "Poison Alyce" that might not be especially surprising. John Cleese, meanwhile, has launched a stand-up comedy tour under the title "How to Pay for Your Divorce".

According to media reports, the settlement in Cleese's divorce (his third) was so large because he had not signed a pre-nuptial agreement prior to his marriage to Alyce. His situation highlights the importance of considering a pre-nup, especially for couples where one or both parties bring significant financial assets or unusually high earning power to the union.

A California marriage and family law attorney in Los Angeles County or Orange County can offer advice on pre-nuptial agreements and other family law matters tailored to your specific circumstances. If you are beginning divorce proceedings and there is no earlier agreement, an experienced Southern California divorce lawyer can advise on the best ways to protect your assets while negotiating a final settlement on your behalf.

Daily Mail: Poison Alyce is no longer Mrs. Cleese

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

A Prenuptial Agreement is an agreement which couples use to determine how their assets will be divided in the event of a divorce. You may want to consider a prenuptial agreement if you....

1. Have a separate property family business: With a prenuptial agreement, you can draft an agreement to prevent your spouse from acquiring an interest in the appreciation of your separate property business. Otherwise, your spouse may be entitled to half of the value of the business.

2. Have substantial separate property assets: Similarly, if you own separate property assets such as real estate, you may want to draft language in a prenuptial agreement which safeguards your separate property interest in the appreciation of the property.

3. Have children from a prior relationship: You may also want to consider drafting a prenuptial agreement if you have children from a prior relationship. In addition to a will or trust, a prenuptial agreement can back up the terms of your will by delineating the assets you do not wish your spouse to inherit upon your death.