As the economy recovers divorce rates naturally increase. An increase in divorce isn’t looked at positively by most people, but in this case, these are people that couldn’t afford a divorce although they’re unhappy in their marriage… and now they can. Silver lining. An important factor noted in a Los Angeles Times article is the drop in...

When dividing a business as part of the financial settlement in a divorce,  care must be taken to understand the process for the decision making. Generally a family business is an asset and therefore a source of income for both parties. Patricia Barrett, a certified divorce financial analyst makes these suggestions: Determine if the business is community...

In the United States, 50% of the people who marry will get divorced.  In 2013, California has been surveyed to have a 75% divorce rate.  The rising divorce rate has become a catalyst for the rising number of couples getting prenuptial and postnuptial agreements.  A 2012 Harris Interactive Poll showed that 44% of singles and 49% of divorcees have thought of...

There are a few financial complications when divorcing your spouse.  You should be correctly informed about your filing status as well as your exemptions and deductions when preparing for the tax season.  First, you have to understand that the marital status for tax filing is set as of the last day of the year (December 31).  According to the IRS, you are...

General Information Generally, community property and obligations are those acquired during marriage and prior to separation. They could include assets acquired after separation using community funds and obligations incurred after separation to preserve community assets. Generally, they do not include items incurred or acquired after separation or those acquired...

California is one of nine states that embrace the law of community property. Community property is a theory of law in which the husband and the wife are treated as co-owners of property in a form similar to a partnership. All of the property owned by married couples in California can be classified as community property, separate property, or quasi-community...

As a general rule, all community property and community debt is split evenly (50-50) between the spouses upon dissolution. This of course does not mean the house or the car will be physically split in half or the spouses will have to share them. Rather, the rule states each item of community property must be evaluated in terms of its market value. Each spouse is...

In many cases the parties pension plan, 401(k), 403(b) or other retirement plan is one of the largest assets in the divorce, following the family residence. While taking an early distribution from such a plan would most likely trigger a serious tax penalty, federal law allows spouses to divide such plans without incurring any tax liability. QDROS Under the...

Money problems can frequently put a marriage on the rocks, and bankruptcy can derail a divorce as well. If you are married and your spouse declares bankruptcy, your attorney may advise you to join with your husband in filing for bankruptcy, particularly in a community property state such as California. A joint bankruptcy will wipe the slate clean for both of...

Valuation, Apportionment, Tax and Other Strategic Issues Employee or Executive Stock Options are becoming increasingly more popular forms of compensation in the work place. Understanding how to value and transfer Stock Options are particularly important when dividing marital property. Under California Law, assets acquired during the marriage are community...

Military divorces can differ from standard family law cases when it comes to residence requirements for filing, obtaining process service upon an active duty spouse, compliance with military rules and regulations, and the division of a military pension. It is necessary to personally serve the active duty member with a summons and petition for dissolution of...

What do forensic accountants look for when they review financial statements of a business provided to them by counsel? What are the signs that there are irregularities taking place? What are the typical types of financial statements? There are three standards and three types of financial statements. The three standards are audits, reviews and compilations. The...