Our 20 family law attorneys at Minyard Morris in Orange County have over 350 years of combined experience. They have been assisting clients navigate complicated, high-profile and high net worth divorce and other family law matters for over 48 years. If you live in Laguna Beach, you can trust our experienced and qualified attorneys to help you discretely and efficiently with your legal matter.
Minyard Morris, a prominent family law firm in Orange County, stands out for its strategic approach and commitment to resolving clients’ cases efficiently. The firm’s unique structure and resources offer significant advantages in handling complex family law matters.
With 20 attorneys and over 350 years of combined experience, Minyard Morris leverages its size and expertise to provide comprehensive legal services:
Minyard Morris emphasizes strategic planning in its approach to family law cases:
A key aspect of Minyard Morris’s practice is their commitment to resolving cases efficiently:
Minyard Morris’s approach is designed to provide superior client service:
The firm’s exclusive focus on Orange County family law for over 48 years has resulted in:
By combining the resources of a large firm with a strategic, urgent approach to case resolution, Minyard Morris offers clients a unique advantage in navigating complex family law matters. Their commitment to collaboration, efficiency, and client service sets them apart in the field of family law.
Which one of the over 600 Orange County divorce lawyers should you hire? Which lawyer will understand your objectives and will align with your view of the issues?
In the State of California, the laws require that all community property be divided equally in a divorce. Our attorneys are known among the legal community as being skilled negotiators with the resources to thoroughly investigate and uncover all of a couple’s community assets and wealth to ensure an equal distribution of the community property.
While most Laguna Beach clients assume that a divorcing couple will share joint custody, a judge will always take the child’s best interest into consideration in any paternity matter or divorce case. If you believe that child custody will be contested in your divorce, our Laguna Beach child custody lawyers can protect your parental rights or fight for what you believe is in the best interests of your child.
Oftentimes, spousal support or alimony can be a contested issue in an Orange County divorce case. If there was a significant income imbalance in your divorce, or if one party gave up their career to stay home with the couples’ children, spousal support can easily be a contested issue in your divorce and our attorneys can help protect your rights.
Our goal is to help you find the most appropriate lawyer for your individual situation, whether it is Minyard Morris or another firm. It’s important to remember that no lawyer is the perfect fit for every client. In your search for a lawyer, the aim is to identify a professional whom you feel comfortable with, whom you can trust, and in whom you have confidence. We want to help you make a well-informed comparison between our divorce law firm and other attorneys in Orange County. Most websites are designed to convey a message to the reader about the lawyers in the firm. Our objective is to help you select a lawyer who meets your unique requirements.
Divorce can be one of the most emotionally challenging experiences in a person’s life, and it often brings complex legal issues to the forefront. One of the most significant challenges in divorce proceedings is determining how to divide property consistent with California family law. In California, understanding the difference between separate and community property is crucial to resolving these disputes.
This guide provides an in-depth look at how separate property is defined, how it interacts with community property, and what steps you can take to protect your assets during a divorce.
In California, separate property refers to any asset that belongs to one spouse, as opposed to both spouses. Assets classified as separate property are typically acquired in one of three ways:
The date of acquisition plays a crucial role in determining whether an asset is considered separate property. This is important because assets acquired during the marriage that do not fall under the gift or inheritance category are generally treated as community property. Once a court classifies an asset as separate property, it will remain with the spouse who owns it and is not subject to division in a divorce.
Community property, on the other hand, includes assets and income acquired by either spouse during the marriage. In a divorce, community property is typically divided equally between the spouses, but that doesn’t necessarily mean each asset will be split in half. Instead, the court looks at the total value of all community property and divides it in a way that ensures each spouse receives an equal share. This often involves awarding different assets to each spouse and, in some cases, ordering one spouse to make an equalization payment to the other.
Gifts and Inheritances: Important Exceptions to Community Property Rules
It is important to note that gifts and inheritances received by either spouse during the marriage remain the separate property of the recipient. The law recognizes that these assets are separate property, regardless of whether they were received during or before the marriage. Even if a spouse inherits property while married, that inheritance is solely theirs and will not be subject to division in the event of a divorce.
However, the spouse who receives the gift or inheritance must be careful to keep those assets separate from any community property. For example, if inherited money is deposited into a joint bank account, it will be considered commingled with community funds, potentially making it subject to division. To avoid this, the recipient should ensure the gift or inheritance is maintained in a separate account.
Businesses Owned Before Marriage: A Special Case
Businesses owned by one spouse before the marriage are typically considered separate property. However, if the business increases in value during the marriage, the community may have a right to some of the business’s appreciation. The critical factor here is the role of the owner-spouse in the business during the marriage. If the spouse works in the business and their efforts contribute to its growth, the non-owner spouse could be entitled to compensation.
The courts use two primary methods to calculate this compensation:
In rare cases, the court may decide to use both formulas during different phases of the marriage. For instance, if the business’s nature changed significantly during the marriage, such as shifting from a capital-intensive venture to a personal service enterprise, both methods might be appropriate. However, the non-owner spouse does not gain any ownership interest in the business itself—their recovery is limited to a financial reimbursement based on the business’s growth during the marriage.
Valuing a Business During Divorce
If a business was formed or purchased during the marriage, it is generally considered community property. In most cases, the court will award the business to the spouse who is most involved in its operation. However, determining the value of the business can be a complex process that requires expert testimony, often from forensic accountants.
California courts rely on two primary valuation methods:
These methods aim to determine the business’s investment value, which is the value of the business as an ongoing investment for the spouse who will retain it after the divorce. It is not the amount the business would sell for on the open market. Importantly, if the court orders an equalization payment to the other spouse, that payment is not tax-deductible for the spouse making the payment. In other words, the payments are after tax.
Separate Property Residences and the Moore Marsden Formula
A residence owned by one spouse before marriage remains that spouse’s separate property, but things can get complicated if community funds are used to pay down the mortgage or improve the property. In such cases, the community may acquire a proportional interest in the property, which means that the non-owner spouse may be entitled to a share of the home’s appreciation.
The courts use the Moore Marsden formula to calculate the community’s interest in the home. This formula takes into account how much of the mortgage was paid with community funds and how much the home’s value increased during the marriage. For example, if community funds paid down a portion of the mortgage, and the home appreciated in value, the non-owner spouse may be entitled to a share of that value.
If the owner-spouse wants to convert the home into community property, they can do so by signing a written agreement, known as a transmutation. This agreement must be clear and explicit, as courts will not recognize verbal promises or casual statements about ownership.
The Date of Separation: A Key Determination
The date of separation is one of the most important factors in divorce proceedings, as it determines when community property stops accumulating and separate property begins. California law defines the date of separation as the point at which one spouse clearly expresses, through words or actions, that the marriage has ended.
A trial separation or simply living apart does not necessarily establish the date of separation unless there is a clear intent to end the marriage. The date of separation can affect several aspects of the divorce, including the division of assets, the calculation of spousal support, and the responsibility for debts incurred after the separation.
It’s crucial to document this event in writing, such as through an email or text message, to avoid disputes later. Failing to establish a clear date of separation can lead to costly litigation, as the court may need to examine various actions and behaviors to determine when the marriage effectively ended.
Managing Finances After Separation
After the date of separation, each spouse’s earnings become their separate property. However, things can get tricky when it comes to paying community expenses after the separation. For example, if one spouse uses their post-separation earnings to pay the mortgage on the family home or pay other shared expenses, they may be entitled to reimbursement unless they directly benefit from the payment (such as by living in the home or driving a the vehicle).
To avoid confusion, it’s essential for separating couples to immediately divide their finances, close joint accounts, and stop using shared credit cards. Doing so will make it easier to track expenses and avoid disputes over who paid for what, which result in expensive litigation.
Practical Tips for a Smooth Separation
To navigate the complexities of divorce and protect your financial interests, consider taking these steps as soon as you and your spouse separate:
Our divorce lawyers at Minyard Morris offer confidential initial consultation appointments. To schedule an appointment with one of our experienced lawyers, contact our office by calling 949-724-1111 or by sending us an inquiry through our website. We look forward to answering your questions and telling you more about how we can help you with your Laguna Beach divorce.