Orange County Divorce Lawyer Blog

An excellent article published earlier this month by Fox Business News outlines some of the pitfalls that dissolving a marriage holds for one's credit rating. The article makes several points that anyone contemplating an Orange County divorce would be well-advised to keep in mind.

First and foremost - and, it must also be said, unfortunately - it pays to be a bit wary of your soon-to-be-ex while going through the divorce process. "People do unpredictable things during emotional times," the article notes, citing a credit counselor. It goes on to describe a woman whose husband apparently ruined her credit on purpose by failing to honor a number of bills he had promised to pay.

From the perspective of an Orange County family law attorney, this is a reminder of why care and caution are always important. If a couple holds joint credit cards or other accounts it is critical that there be a written understanding of who will become responsible for what, and equally critical that each party prove to the other that its joint credit obligations have been met. Changing the names on everything from utility bills to in-store loyalty cards can be a surprisingly lengthy and frustrating process. The sooner it begins - and the more carefully each party monitors it - the smoother it is likely to be.

This is one of the aspects of divorce and the separation of assets where you might not think about your Orange County divorce lawyer, despite the fact that he or she can play a critical role. Drawing up legal documents in a careful and thorough manner, and then ensuring that both parties keep up their respective ends of the agreement is one of the most important services attorneys can offer clients. With it can come peace of mind during an otherwise chaotic and emotional time.

Fox Business: How to protect your credit during Divorce

The divorce rate in America - roughly half of all marriages - is a well-known statistic. So how does one guard against the prospect of losing control of one's small business as part of an Orange County divorce?

A recent article in Entrepreneur magazine offers a number of tips. Some - such as signing a California prenuptial agreement - are straightforward, even obvious. Others come across as a bit Machiavellian, such as the suggestion that while your marriage is collapsing your first concern should be finding an angel investor to buy a stake in the business.

There is a broader point here, however; one which all business-owners contemplating an Orange County divorce need to keep in mind. Advance planning is key - and for many Orange County couples that means thinking ahead not only to where a marriage may end up, but also to where a business may be many years down the line. As Entrepreneur notes, "you have a $100,000 business... not anticipating that 20 years later it's a $5 million business." Advance planning can make sorting out a development like this a lot less painful.

These are the sort of scenarios where an Orange County divorce attorney can help with planning long before a divorce is contemplated, if ever. As the article notes, arrangements - especially those made after the wedding - are often stronger in legal terms if they have been in place for a number of years. For many couples, it is worth taking time when the marriage is good to consider how a business might be divided up in the unfortunate event that things turn sour.

These are the sort of decisions on which a Costa Mesa, Santa Ana or Anaheim community property attorney can offer detailed, professional advice. Just as estate planning is often best done while a person is still alive, so post-marital planning is often smoothest when it takes place in the less confrontational circumstances of a marriage that is going well. Orange County family law attorneys are here to help clients in good times as well as bad.

Entrepreneur: How to Divorce-Proof Your Company

The seemingly endless, and endlessly acrimonious, California divorce of Frank and Jamie McCourt is due back in Los Angeles family court later this month. According to Bloomberg News, a judge has scheduled the couple's latest hearing to consider Jamie's request that Frank be forced to sell the Los Angeles Dodgers immediately "so they can divide the proceeds." The agency reports that the judge "will at the same hearing consider an earlier request by Jamie McCourt for information about the Dodgers' business."

Frank, in turn, is asking the judge to rule that Jamie has no right to be involved in the media rights deal he is reportedly close to completing with Fox Entertainment.

And so it goes. Legally-speaking the couple have been divorced for some time, but a lengthy fight over a post-nuptial agreement (the court eventually ruled in Jamie's favor - throwing the agreement out) as well as deep differences over the future of the baseball team have prevented them from reaching a final settlement.

Indeed, according to Bloomberg, the fate of the Dodgers has again taken center-stage in this long-running Los Angeles divorce case. Earlier this year Baseball Commissioner Bud Selig took control of the team's business affairs. Jamie is reportedly asking the court to order Frank to go ahead with a sale to be arranged by the McCourts as a couple, on the grounds that any other resolution is likely to fetch a lower price and, therefore, is not "in the best interests of the club or the marital estate." That claim by Jamie highlights an important aspect of California family law that any Orange County divorce lawyer should make clients aware of: spouses should do nothing to damage community assets during the negotiation of their settlement. Doing do can only create greater legal difficulties down the road.

As an Orange County divorce attorney, this case has been fascinating to watch. In some ways it has come to embody almost everything that most family law attorneys counsel their clients to avoid. Of course, few divorces are perfectly smooth, but skilled, caring legal advice can go a long way toward ensuring that they are no more drawn-out, and no more acrimonious, than they need to be.

Bloomberg: Judge sets June 22 hearing for Jamie McCourt's request for Dodgers sale

When last we left Frank and Jamie McCourt - a couple who, over the last 18 months, have engaged in what is arguably the biggest, bitterest and highest profile Southern California divorce in recent memory - Jamie had just won a major victory with a Los Angeles family law court's ruling that a disputed post-nuptial agreement is valid and she, therefore, is a co-owner of the Dodgers.

That made last week's headline in the Los Angeles Times a bit surprising: "Frank and Jamie McCourt working quietly on a settlement." 'Quiet,' 'settlement' and 'McCourt' are words we are not accustomed to seeing together in the same sentence. The confluence of that headline and Opening Day made this seem like a good time for an update.

The Times report says attorneys for the couple sought and received postponement of a hearing scheduled to take place early next week regarding settlement issues. The hearing had been scheduled to consider Jamie's demand "that Frank be ordered to provide her with extensive financial documentation regarding the Dodgers' business operations." The Times notes that media reports over the winter have indicated that Jamie is willing to cede her share of the team back to Frank in exchange for a payout "but she has balked at the proposals he has offered" so far. The postponement request, coming after about a month of renewed settlement talks, may indicate that the two sides are making progress.

One need not be a baseball fan to observe that the McCourts' may stand a better chance of coming to a final California settlement agreement if they manage to continue to keep their negotiations out of the media spotlight. Complex settlement litigation can become a problem for high net-worth couples, and publicity rarely helps if the goal is to make property division issues go smoothly. Resolving cases like these involving business valuation issues and the separation of high-value marital assets often requires specialized legal assistance. In the McCourts' case, for example, issues surrounding the Dodgers appear to have become a sticking point (now that courts have ruled that Jamie is a part-owner of the team).

As a result, this case is emerging as a textbook example of the important role a Los Angeles or Orange County family law attorney can play resolution of complex and contentious California family law issues.

Bloomberg: Dodgers Owner McCourt's Ex-Wife Seeks Documents on Baseball Team finances

Los Angeles Times: Frank and Jamie McCourt working quietly on a settlement

The Huffington Post's divorce section (a relatively new, but fast-growing, addition to the site) offers an extremely useful primer on the difference between separate and marital property and how those differences can impact your Orange County Divorce.

As the article, written by Jeffery Landers, a financial planner who specializes in divorces, notes, "depending on your individual circumstances, your spouse may be entitled to as much as 50% of your business in a divorce." Since divorce is governed by state law the precise circumstances will vary widely from place to place. California, of course, is one of the nation's nine community property states. Having said that, Landers offers some good, basic advice on protecting your business during a divorce - advice that applies as much here in Orange County as it does anywhere else in the country.

First and foremost, he talks about the importance of prenuptial agreements. While the law is relatively clear on the difference between a separate property asset and a marital asset that does not mean that individual things are not open to debate during the California divorce process. The more of those debates you can foreclose through legal agreements negotiated long before either spouse is contemplating divorce, the smoother the ultimate Orange County Divorce process is likely to be. Of course, agreements are not foolproof (ask the McCourts!) - particularly if one party can later make a case to a California family law court that the agreement is grossly unfair, was entered into under duress or is the product of misrepresentation.

The same can be said for other common business-protection strategies, such as putting your ownership interest into a trust. It might work, or it might not. A lot depends on how you go about it and the quality of the legal work that goes into the actual agreement.

This is the area in which the assistance of an experienced, detail-oriented Orange County family law attorney is so crucial. It can seem unromantic to say that you should speak with a lawyer about protecting your business at the outset of a marriage or other relationship, but the insight and advice an Orange County divorce lawyer can offer peace of mind down the line even if that advice is something you, in the end, never need to act upon.

Huffington Post: How to divorce-proof your business

An essay on the subject of pets and divorce published earlier this month at The Huffington Post has been blogged and commented-upon widely over the last ten days or so. The article, by Jill Brooke (an author who describes herself as a "Blended Families Expert"), looks at the increasing prevalence of pet-related issues in divorce cases.

"According to the American Academy of Matrimonial Lawyers, attorneys have seen a 23 percent jump in pet custody cases," Brooke writes. A similar analysis at the pet-focused website Paw Nation notes that "today half of the 190 accredited law schools in the United States, including Harvard and Yale, offer courses in animal law" - a field that barely existed as recently as a decade ago.

Brooke presents a long string of anecdotes outlining the strife that pet custody can cause in a divorce proceeding. She writes that "dogs used to be viewed as property... But now courts realize that pets are members of the family and their best interests are being considered." That, however, is not an entirely accurate reading of the law, at least here in Orange County and elsewhere in California.

Perhaps the problem is one of terminology. We talk of "custody", and we may think in those terms regarding pets but, legally speaking, your dog and your kids are very different things. It is true that, here in California, legislation signed by Gov. Arnold Schwarzenegger in 2007 (SB 353) allowed courts to issue both custody orders and restraining orders in relation to pets. It is also true that many California divorce settlements contain provisions specifically related to pet custody and visitation. None of that, however, changes the fact that animals, legally speaking, are property and deciding who gets the pet is a property division issue. The terminology ("custody", "visitation") may be similar but the standards for deciding who gets the dog or cat should not be - and, indeed are not - the same as deciding which parent a child should live with.

Terminological distinctions like these are among the most important issues an Orange County divorce lawyer can help clients with. None of this is meant to minimize the emotional trauma that losing your pet in a divorce can engender. In negotiating an Orange County divorce, however, it is important to have the help of a skilled attorney who can help you understand how assets (pets included) differ from one another and who can help you sift through your own priorities in deciding what, exactly, is most worth fighting for.

The Huffington Post: Who Gets the Pet in a Divorce?

Paw Nation: Who gets the dog in a divorce?

On Tuesday Los Angeles Superior Court Judge Scott Gordon issued a key ruling in the seemingly endless, blockbuster divorce of LA Dodgers owners Frank and Jamie McCourt. According to the Los Angeles Times, Judge Gordon invalidated the postnuptial agreement (technically known as a Marital Property Agreement, or MPA) signed by the couple in 2004.

MPA's, like a prenuptial agreement, are meant to remove agreed-upon assets from the purview of community property laws in California and other states. Under the terms of the McCourt post-nup Frank would, in the event of a California divorce, retain sole ownership of the baseball team while Jamie became sole owner of the couple's numerous homes. Granted that a 50% interest in the Dodgers would be worth immensely more than the couple's reportedly large collection of houses Jamie held that the agreement was unfair and, therefore, invalid.

Perversely, both McCourts claimed to have neither read nor understood the document before signing it. Judge Gordon rejected this testimony as "not credible," but focused his ruling on a more troubling legal issue. Specifically, in holding that the MPA does "not conform to California law" he cited the fact that Frank's Boston-based lawyer, who drew up the document, altered it after both McCourts had signed it and without telling either of them. "The Court finds that there has not been sufficient evidence presented to indicate which of the two materially inconsistent MPA's represented the actual intent of the parties," the judge wrote, according to the Times.

All of this, as the paper noted in a separate analysis, does not necessarily mean that Jamie now owns half of the team - she says she does, but Frank's lawyers have other arguments for his claim to sole ownership. It does mean that the issue will now be adjudicated during the next phase of their divorce trial. As I noted last month, the couple's California divorce recently became final despite the large number of outstanding property issues that remain to be resolved.

If there is any lesson for the rest of us to take away from this ongoing saga it is of the importance of careful legal work. When seeking an Orange County divorce attorney it is important that clients carefully consider the experience level of a prospective lawyer and ensure that they are both comfortable with and have a high level of confidence in, their choice.

Los Angeles Times: Judge's ruling in favor of Jamie McCourt is based on legal fundamentals

Los Angeles Times: Questions and answers about the McCourt ruling

USA Today: Judge invalidates McCourt agreement, leaving Dodgers ownership in question

A fascinating article recently published on the Fox Business website looks at the complex ways in which debt can effect marriage and divorce here in California and elsewhere. As the article notes, "any debts incurred" during marriage or residence in a community property state, such as California, "are considered jointly owned, regardless of who spent the money or why."

The article is an advice column, and the author was responding to a specific question regarding a surviving spouse's responsibility for debt incurred by the other person in the marriage in the event of that person's death. As the column noted, the couple in question are separated.

Though focused on death, questions like these are also relevant to many California divorces. Sorting out assets and debt obligations can be one of the most complex elements of the Orange County property division required under California's community property laws as part of a California divorce. Issues such as these can be one of the most challenging aspects of negotiating a Los Angeles or Orange County divorce.

For example, what if a couple have been separated for some time and one partner lives outside California, in a state where community property is not the law? How do assets acquired after a separation but prior to a divorce factor into community property? How do you divide an interest in retirement funds or an on-going business? These, and many other complicated questions, require the assistance of an experienced Orange County divorce lawyer - someone familiar with both the letter and the spirit of the law, and who will vigorously defend your interests throughout a legal process which can become drawn-out, and is often confusing for the layperson.

Even couples who are not seeking to end their relationship are often well-advised to spend some time with an Orange County family law attorney. A skilled practitioner can assist with prenuptial agreements or other legal instruments designed to ease your way through the court system whether your partnership ends in divorce or the death of one spouse or partner after many long and happy years.

Fox Business: Separate in Marriage, but Joined in Debt?

Both the LA Times and a host of celebrity publications are reporting that Heidi Montag has filed for a Los Angeles Divorce from husband Spencer Pratt. The reality TV star, who recently made headlines for announcing earlier this year that she had undergone a head-spinning number of cosmetic surgery procedures in a single day, at the age of 23, initially went to Southern California family law court seeking a legal separation from Pratt two months ago. Media reports say she amended that filing to request a California divorce at the end of last month.

According to People magazine, "the public and Montag's own former co-stars from The Hills initially expressed doubts about whether the split was legitimate or another publicity stunt." A consensus appears to have formed, however, that the divorce filing is, indeed, real.

A cynic might note that Montag and Pratt appear to deserve each other ("We love each other, but I'm a fame whore and I'll never grow out of it," Pratt told People), but their California divorce can also be seen as a cautionary tale for those of us who live far from Hollywood's lights. The lesson: plan ahead... and if you fail to do that, be prepared for a potentially difficult time in court.

A whirlwind relationship involving a couple with substantial assets can lead to an exceedingly complex Los Angeles or Orange County divorce. Particularly if no prenuptial agreement is in place, the assistance of a skilled Orange County divorce lawyer is essential if you hope to untangle your affairs from your ex's in a just and equitable manner.

California law gives divorcing spouses certain rights. The best way to protect these is to have an Orange County Legal Separation and Divorce attorney working for you. An experienced attorney can offer invaluable advice on the best strategies to ensure you get everything to which you are entitled as your marriage or partnership moves toward dissolution.

Los Angeles Times: Heidi Montag files for divorce from'Hills' husband Spencer Pratt

People Magazine: Heidi Montag files for divorce from Spencer Pratt

A variety of celebrity websites are reporting that Charlie Sheen and his wife, Brooke Mueller, have signed divorce papers. According to the site PopEater, however, the couple's California divorce settlement agreement has not yet been formally submitted to a court for consideration.

The couple's marriage began to unravel last Christmas when police were called to a residence in Aspen. Sheen is now facing domestic abuse charges in Colorado. In the wake of that incident Sheen and Mueller's progress toward divorce, and a Southern California family law court, has been swift.

The California divorce settlement may be filed in Orange County or elsewhere in the region. According to HollywoodNews.com, the document stipulates that the couple will share custody of their 15-month old twin boys, with Sheen paying $55,000 a month in child support. Media reports say the settlement specifically says that Mueller's level of child support may not be lower than the sum Sheen pays to his first wife, Denise Richards. In addition to the child support, Mueller will reportedly receive a large cash payment, as well as having Sheen buy out her equity in their home (Sheen will keep the house itself).

Celebrity divorces in Orange County, Los Angeles or elsewhere in Southern California can often seem far-removed from the lives the rest of us live. In fact, their basic outlines are often little different from anyone else's and, as such, highlight the important role that having the right Orange County divorce lawyer plays in the process.

An experienced Orange County child custody and divorce attorney should be both an aggressive advocate for your interests and a knowledgeable advisor on the complexities of California family law. Dividing up assets, establishing an equitable level of child support and negotiating custody arrangements are as important to you as they are to any celebrity. Ensure that your settlement protects your interests by utilizing the services of a comprehensive Los Angeles and Orange County family law practice at every stage of the California separation and divorce process.

PopEater: Charlie Sheen and Brook Mueller Sign Divorce Docs

HollywoodNews.com: Charlie Sheen's divorce settlement with Mueller: Not a penny less than Denise Richards

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

Several celebrity websites report that Oscar-winning actress Halle Berry and boyfriend Gabriel Aubry recently broke up after four-plus years together. Their rupture raises potential California child custody issues because the couple, though never married, have a two year old daughter.

The Huffington Post quotes entertainment websites reporting that the split actually took place several months ago, but has only now leaked out into the media. Quoting Radaronline, the website reports: the couple "have already hammered out a custody and financial agreement." The article goes on to say that the document calls for "50/50 custody" of their child. Aubry, a model, was not reportedly interested in receiving money from Berry.

When a couple are not married Orange County custody issues may become more complex than they might otherwise be. In this particular case, the fact that the father is foreign (Aubry is Canadian, according to the website Monsters & Critics) adds a further potential twist to whatever Los Angeles or Orange County custody agreement the couple may have worked out. Significantly, celebrity website TMZ, quoted by The Huffington Post, describes the couple's arrangement as "a temporary custody agreement," adding: "there is no long-term custody arrangement or property settlement agreement."

Without wishing either half of the couple ill, it seems important to point out that situations like this are fraught with danger for both parties. It is exactly in custody and visitation cases such as this - ones where a number of significant issues remain to be resolved and a final agreement is yet to be reached - that the advice of an experienced Orange County custody and visitation attorney is essential.

Even if you and your ex are not married, an Orange County family law attorney can offer sound advice on the best way to structure a California child custody and visitation agreement so that your parental rights are protected to the fullest extent of the law. Spelling out both parties rights and obligations in a clear, enforceable way is an important element of a California custody settlement. However amicable a break-up might initially be, leaving such issues to chance over the long term is never a wise approach.

Monsters & Critics: Halle Berry is Single Again

The Huffington Post: Halle Berry & Gabriel Aubry SPLIT: Break-up for Actress & Model

The ongoing Southern California divorce case of San Diego real estate mogul John Moores and his estranged wife Rebecca took a new twist recently with the two sides arguing over whether one of Mr. Moores' companies was capitalized with joint funds and, therefore, subject to California's community property laws.

At issue, according to the San Diego News Network, is JMI Guaranty LLC, a lending company John Moores set up to finance his "various real estate projects." Rebecca Moores claims the $14 million in seed money used to start the company came from the couple's joint funds. The dispute, if it drags on, has the potential to affect financing for a variety of real estate developments.

The high-profile Southern California divorce case highlights the complexities of California community property law. Consulting with a Southern California family law attorney is a key step in making your way through this unfamiliar area of divorce law, even when the stakes are far lower than the $1 billion-plus dollars the Moores family is reportedly worth. As the Moores' case demonstrates, dividing up assets is often not as simple as it might seem - particularly when disagreements arise over what, exactly, constitutes a joint asset.

Seeking the advice of an experienced Southern California divorce lawyer is a crucial first step in navigating a lengthy, and often complex, process. Revelations about the Moores case, for example, have been dribbling into the media for months, even though the case is not scheduled to go to court until December. The case has already led John Moores to initiate the sale of one of his highest-profile assets: the San Diego Padres baseball team. Having a skilled Southern California family law attorney in your corner can be a crucial step toward making this legal process less onerous.

San Diego News Network: John Moores divorce hearing could affect JMI project financing

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.