News and Events
NEWS FLASH
Pacific Divorce Management Managing Director, Justin Reckers honored by the Institute for Divorce Financial Analysts in the Summer 2010 edition of Divorce Magazine.
_____________________________________________________________________
NEWS FLASH
“How much time can elapse before is becomes was?” . . .
The California Court of Appeal held, In re Marriage of Kacik, that an ex-spouse must file a request to modify spousal support within a reasonable time after a child-support order terminates if a companion child support order is in effect. The question in this case became “How much time can elapse before is becomes was?”
In this case child support terminated August 2006 when the child reached age 18. Mother filed in February 2008 requesting an increase in Spousal Support due to the termination of Child Support causing a material change of circumstance in her ability to support herself. My understanding is that Family Code typically allows for such a request if a companion child support order is in effect and would consider termination of Child Support a material change. The question of this case required the court to discuss the how long after such an order terminates a modification may be requested. It sounds like it also required a look at motive.
The court determined that the request for a change must be made within a “reasonable time” after the modification and gave a little guidance as to what would be considered reasonable by saying time to allow “some post-termination data to be collected” would be important. They concluded the 17 months lapsed in this case was too long and appeared linked more closely to the looking Spousal Support step-down order than it was to Child Support nixing the request on two fronts.
_____________________________________________________________________
NEWS FLASH
National Media Feature of Mark Hill CFP®, CDFA™
Financial Advice for Mrs. Tiger Woods
By Brett Arends Staff Reporter of The Wall Street Journal
Please read the following article posted in the Wall Street Journal Online featuring Pacific Divorce Management’s very own Mark Hill CFP®, CDFA™.
Click Here to Read Article
_____________________________________________________________________
NEWS FLASH
Financial Disputes Are the Number One Reason for Divorce
A study by Jeffrey Dew at Utah State University determined couples who admitted to having financial disagreements at least once a week were 30% more likely to file for a divorce than couples who admitted to having financial disagreements a few times a month.
The study consisted of 2,800 couples. Both husband and wife were asked questions regarding how often they had disagreements over household chores, visiting family, spending time together, sex, and finances. The couples were then contacted again five years later to see if they were still married. If they were not it was questioned what the underlying cause of the divorce was. It was concluded disputes over finances were the leading cause of divorce among the couples.
Couples often clash over finances when times are hard but let things slide when money is not as tight. The stress is more acute today because of the economy. The key to dealing with the stress is being open to considering the other side of the coin. Recognizing many stress inducing concerns that turn into arguments boil down to a decision making problem rather than an actual dispute can help a couple avoid clashes over finances.
A financial advisor skilled in facilitating a rational decision making process can help couples deal with money problems before a dispute arises. If the disagreements simply cannot be avoided then divorce may become an option. Our financial advisors can be involved before, during, and after marriage in a way that allows the family to avoid the emotional and financial consequences of unnecessary arguments by helping parties recognize when the word dispute does not quite fit their problem.
_____________________________________________________________________
NEWS FLASH
End of a Season, End of a Marriage
The end of another baseball season brings with it an end to a 30 year marriage for Los Angeles Dodgers owner Frank McCourt and wife Jamie McCourt. Mrs. McCourt filed for a divorce on October 27, 2009 after being fired from the position of the team’s chief executive officer (CEO) when the Dodgers were eliminated from the playoffs. In her filing Mrs. McCourt is requesting some major league financial support from her soon to be ex-husband.
So what Happens to the Dodgers, or Any Business Owned in a Marriage?
In a marriage it is not uncommon for one or both spouses to own all or part of a business. During a divorce a business is considered community property to the extent that it was developed during the marriage. In the McCourt’s case the business was purchased in 2004 using mostly debt to finance the purchase. With that being said, the value of a business to the community is determined based on factors such as when the business was purchased, the source of funds to start the business, what each spouse has contributed to the business, what the business owns, what it owes, who is employed by the business, and how much income it produces.
The Business as a Community Asset
When dealing with a business as community property there are many options that spouses can agree on or the court may order. Spouses could choose to continue to work together as business partners; this tends not to be feasible as divorcing couples are usually not interested in maintaining relationships with one another. One spouse could keep the business and offset the other spouse’s portion with the value of another asset. For instance, Mrs. McCourt has stated that she is prepared to purchase Mr. McCourt’s share of the Dodgers from him using funds from her separate property in order to be the sole owner of the Los Angeles team. The business could be sold altogether with profits being divided between the spouses; similar to what took place earlier this year when former San Diego Padres owner John Moore sold his share of the San Diego franchise as part of his divorce settlement.
How Should I Value My Business?
Valuing or appraising a business is a complex task that requires the help of a professional business appraiser who is skilled in recognizing the pertinent information as well as applying the correct valuation methods. The factors involved in a business valuation are many and constantly changing so experience is paramount. It is important to choose an appraiser who holds recognized credentials in the accounting and business valuation fields such as CPA, ABV and CVA.
It is also important to consult your attorney before selecting someone to value your business. Always be sure you have agreements as to what a valuation will be used for before spending the money as it is guaranteed that no two appraisers will come up with the same number and this ambiguity leaves the valuations open to criticism. Consulting a financial advisor who specializes in divorce financial planning can help illustrate the financial impact of proposed settlements, as well as suggest ways to minimize the effect your divorce has on your business.
_____________________________________________________________________
NEWS FLASH!
Pacific Divorce Management Is a Sponsor For…
Kids Turn San Diego 8th Annual Wine Event
“Wine, Waves, and Whimsy”
What: Wine Tasting, Food, Live and Silent Auction, Live Music, Free Admittance to the Maritime Museum (until 8:00pm), and Free Harbor Tours
When: Saturday November 21, 2009 from 6:00pm to 10:00pm
Where: Abroad the Berkeley on Harbor Drive
Ticket Price: $100 Per Person
Please Contact Kid’s Turn at 858-521-0027 to Reserve and Purchase Your Ticket
Kid’s Turn is the only program in San Diego County working with the whole family to achieve a child-centered and healthy divorce. Their programs are known throughout the United States and have been in San Diego since 1996.
Kid’s Turn is a low cost solution for families experiencing the pain of divorce or separation, no matter how great the conflict. While many of their families are court ordered, a growing number of families are taking the Kid’s Turn workshops because of the recommendation of an attorney, teacher, counselor, or because of their own desire to make this traumatic life change as healthy for their family as possible.
For More information on Kid’s Turn Please visit their website at http://www.kidsturnsd.org/index.html or contact them by phone at 619-615-6289 or 858-521-0027
_____________________________________________________________________
NEWS FLASH!
Child Support Payments and Getting a U.S. Passport
Section 51.70 (a) (8) of Title 22 of the Code of Federal Regulations states, in part, that if you are certified to Passport Services by the U.S. Department of Health and Human Services (HHS) to be in arrears of child support payments in excess of $2,500, you are ineligible to receive a U.S. passport .
If this applies to you, Passport Services strongly recommends you contact the appropriate State child support enforcement agency to make payment arrangements before applying for a passport. This is because, the State agency must certify to the U.S. Department of Health and Human Services (HHS) that acceptable payment arrangements have been made. Then, HHS must notify Passport Services by the removal of your name from the electronic list HHS gives to Passport Services. Note Passport Services cannot issue a passport until your name has been deleted by HHS.
It can take 2-3 weeks from the time you make payment arrangements with the State agency until your name is removed from HHS’ electronic list. Passport Services has no information concerning individuals’ child support obligations and has no authority to take action until HHS removes your name from its list.
Please direct any questions to the appropriate State child support enforcement agency. You may go to the Department of Health and Human Services – State Child Support Enforcement Web Site for a listing of HHS state and local agencies.
_____________________________________________________________________
NEWS FLASH!
The Tax Court Says…
Legal costs to determine title to assets in a divorce are not deductible. In this case, the divorcing couple was squabbling over the title to property that had once been the separate property of one spouse but was apparently later converted to community property. Nor can the payer deduct legal costs incurred to make the divorce court order a sale of the property. But the portion of legal costs paid to try to collect a share of rents from the realty can be deducted as an investment expense (Est. of Melcher, TC Memo. 2009-210).
_____________________________________________________________________
NEWS FLASH!
Superior Court of California County of San Diego
San Diego Superior Court Announces One Day A Month Closure
In light of the unprecedented financial situation facing the State of California, the Judicial Council of California on July 29, 2009, pursuant to Government Code section 68106, has announced the closure of all state courts one day per month through the remainder of this fiscal year.
The San Diego Superior Court will be closed to public business on the third Wednesday of each month through June 2010. The specific closure dates are:
Wednesday, September 16, 2009
Wednesday, October 21, 2009
Wednesday, November 18, 2009
Wednesday, December 16, 2009
Wednesday, January 20, 2010
Wednesday, February 17, 2010
Wednesday, March 17, 2010
Wednesday, April 21, 2010
Wednesday, May 19, 2010
Wednesday, June 16, 2010
No matters will be scheduled on these dates. The court will reschedule previously scheduled matters to another date. Pursuant to the provisions of Government Code section 68106, the closure days will be treated as holidays for the purposes of scheduling hearings and calculating time for statutory and filing deadlines. A judicial officer will be available for the signing of any necessary documents on an emergency basis during the days the court is closed, just as a judicial officer is now available on Saturdays, Sundays, and holidays.