Divorce Lawyers in Orange County

Dealing with a divorce can be one of the most stressful events anyone faces. Having a reliable, experienced, and compassionate divorce lawyer who also serves as your trusted advisor can make the difference between a good experience and a disaster

Our Orange County family law firm is dedicated to providing the highest quality legal representation to help residents of Orange County through these difficult times.

Collaborative Firm Meetings at Minyard Morris

For many years, Minyard Morris has made it a priority to hold regular meetings focused on analyzing and strategizing for our Orange County clients’ cases. Our team of highly experienced divorce lawyers, with over 350 years of combined expertise, gathers three times a week—Monday at 5:00 pm, and Tuesday and Thursday at noon—to delve into the intricacies of our ongoing Orange County cases. These meetings are not optional; they are a key component of our firm’s approach to case analysis, management and execution.

During these strategy sessions, our family law attorneys discuss a wide range of topics, such as how to best address the challenges posed by specific opposing counsel, strategies tailored to the judicial officer hearing the case, recent appellate decisions, insights from relevant seminars, and experiences from handling similar cases in the past. We also explore settlement options, evidentiary issues, trial tactics, the value of the matters at hand, and the likelihood of success, all while keeping our Orange County clients’ objectives and goals in mind.

The family law community is well aware of our commitment to these regular conferences. We frequently receive inquiries from other divorce lawyers and judicial officers, intrigued by our unique collaboration model. Our meetings are not just a discussion but a powerful tool that attracts talented and extensive divorce lawyers to our firm, allowing us to leverage the collective experience of 20 family law specialists. This collaboration is a unique advantage we bring to our Orange County clients.

What Does This Mean for Our Orange County Clients?

The value of these meetings to our Orange County clients is substantial, though it varies from case to case and cannot be easily quantified. However, consider this: would you rather to have the backing of 20 other seasoned divorce lawyers with a combined over 350 years of legal experience, who specialize exclusively in Orange County family law, with the full support and resources of Minyard Morris or would you rather rely on the counsel of a small firm?

A common occurrence in our meetings is the discussion of legal support for specific positions, whether they are our own or those of the opposing side. Often, one of our 20 divorce lawyers has dealt with the exact or a related issue before and can quickly identify relevant appellate court cases, providing a solution without requiring extensive research and the related attorneys fees. This kind of efficiency benefits our Orange County clients directly and greatly.

At times, one of our divorce lawyers might seek a “reality check” on a case, opening the floor for input and guidance from the team. Other discussions might revolve around the probability of winning an issue before the assigned judicial officer or selecting the right expert for a particular case. One of the most significant aspects of our meetings is brainstorming on how to structure settlements and creatively overcome obstacles that are impeding a resolution. These discussions cover a nearly limitless range of scenarios.

A Unique Commitment

We dedicate the time of 20 divorce lawyers to these meetings three times a week, without ever billing our Orange County clients for this internal collaboration. The cost to the firm for these meetings is substantial, given our attorneys’ hourly rates ranging from $350 to $800. Despite the expense, we remain steadfast in our commitment to these conferences because of the immense value they provide to our Orange County clients.

While other firms may have informal discussions among their family law attorneys, none can match the frequency, robustness or intensity of our meetings. These sessions are a key factor that sets us apart in the family law field, offering a distinct advantage to our Orange County clients. At Minyard Morris, we are dedicated to delivering the highest level of client service and achieving the best outcomes. We firmly believe that our collaborative meetings play a pivotal role in our Orange County clients’ representation and success.

Expertise and Experience

Our 20 divorce lawyers specialize exclusively in family law, which means we have extensive knowledge and experience in handling a wide range of family-related legal matters. With over 46 years of practice in Orange County family law, we understand the nuances of local family law and have successfully represented the residents of Orange County for decades. We are large enough to have the bandwidth necessary to handle and staff any emergency you may have and we are small enough to provide personalized service. Experience and size matters when it comes to your family law matter.

In 2024, the esteemed and independent lawyer rating service, Best Lawyers in America® listed 19 of 20 Minyard Morris divorce lawyers, an unprecedented level of recognition for a family law firm.

Selecting an Orange County Divorce Lawyer

The 20 divorce lawyers of Minyard Morris have nearly 350 years of combined experience as lawyers which we leverage for benefit of our Orange County family law clients. Before hiring an Orange County divorce lawyer, take the time to carefully compare lawyers and law firms. No two divorce lawyers are the same, in the same way all clients are different. There are over 600 divorce lawyers serving Orange County. They cannot all be the right lawyer for you. You will not accidently find the “right” one for you and your case. You will only retain the divorce lawyer that is competent and aligned with your objectives if you perform proper due diligence. Don’t look back years from now and regret having hired the wrong divorce lawyer because you spent less time investigating who to retain than you spent deciding what color to paint your kitchen or which tires to buy for your car. A very good starting place for conducting research is an Orange County divorce lawyer’s website and internet reviews.

Strong Negotiations and Litigations Skills

Our objective is to achieve amicable solutions through negotiation. Our goal is to protect the rights and interests of our Orange County clients, whether through a negotiated settlement or a court decision. Litigation should be the last resort, but if it is necessary, our divorce lawyers are skilled divorce attorneys.

Deep Local Knowledge

As a family law firm based in Orange County whose 20 divorce lawyers know the nuances of Family Law in Orange County. We are familiar with the judges, courtroom procedures, and other local divorce lawyers, which can be extremely helpful in resolving issues and cases of our Orange County clients. Our local knowledge allows us to navigate the system efficiently and effectively, ensuring that your case progresses as smoothly and as rapidly as possible.

Client-Centered Approach

We keep our Orange County clients informed at every stage of the case. We are available to answer any questions you may have. Minyard Morris divorce lawyers and staff do not work remotely. We are in the office and available to our Orange County clients.

Positive Outcomes and Testimonials

Why are we the largest family law firm based in Orange County? The answer is because Orange County knows that we are the “go to” divorce lawyers. Our success is measured by the positive outcomes we achieve and the glowing testimonials they provide. We have a powerful reputation built on over 46 years of exclusively handling Orange County family law cases. Retain the law firm Orange County knows and trusts. Our Orange County clients know that we won’t let them down.

Our Practice Areas

We limit our practice to family law and handle matters in almost every category of this area of law for Orange County residents.

Child Custody: Many of our divorce lawyers spend a considerable amount of their time on child custody matters.

Child Custody Relocation/Move Away: Move away cases are challenging. It is crucial to understand the law and the challenges of moving or preventing a move as soon as the issues arrive.

Spousal Support: Understanding the law is critical in that the court is required to consider over thirteen different factors.

Executives: We frequently handle divorces of executives and C-Suite individuals residing in Orange County, so we’re familiar with the unique issues faced by executives in divorce.

Self-Employed and Business Valuation: This area is probably the most complex area of family law. Many of our divorce lawyers have extensive training and experience in cases involving businesses owned before the date of marriage or acquired during the marriage. This is a sub-specialty in family law. A small percentage of divorce lawyers handle self-employed individuals on a regular basis.

Validity of Premarital Agreements: We have litigated countless premarital and post marital agreements. In fact, one of our divorce lawyers tried one of the premarital agreement cases.

Breach of Fiduciary Duties and Misappropriation: In the last 20 years, this area of the law has received far more attention from the courts and divorce lawyers than in previous years. We tried one of the landmark cases in the fiduciary duty areas. If your spouse has used community money in a maneuver that breached these duties, we can protect your rights.

Stock Options/RSUs/Deferred Compensation: Deferred compensation is a significant part of property division in many divorces. Our divorce lawyers are very familiar with the many nuances of many forms of deferred compensation.

Practical Tips

If you are separating, consider the following tips: 1 deposit your pay check in a new and separate account 2 separate finances and start using a new and separate checking account 3 if you cell phone is on a family plan change providers 4 change all of your passwords 5 set up an email account to communicate with your lawyer that is not an email address that your spouse has access to 6 stop social media postings 7 consult with a divorce lawyer before making any significant financial decisions, investments, or purchases

Separate Property

Separate property is defined as an asset that was acquired before the date of marriage, acquired after the date of marriage or acquired during the marriage by way of a gift or inheritance. Generally, characterization is determined by the date of acquisition. If an asset is not separate property, it is community property. The court confirms separate property to a spouse in a divorce and equally divides community property. The Orange County courts are not required to divide each individual asset equally, rather it can allocate the assets to each party as it chooses but the total assets awarded to each party must have equal values. The court has the power to sell an asset if it chooses to generate cash, in order to equalize the assets and it may also award assets in a disproportionate manner and order the party receiving assets with a greater value to pay the other party an equalization payment in a sum that ultimately results in an equal division of the total assets. However, ordering an equalization payment further complicates the issues, in that the interest rate on the sum owed and the duration of the payment can be disputed.

An inheritance is the separate property of whichever party receives the bequest, regardless of when the inheritance occurs.

A gift is the separate property of the recipient of the gift, regardless of when the gift is received.

Separate Property Business

An Orange County business owned before the date of marriage are the separate property of the owning spouse. The character of an asset is determined by the date of acquisition. If the owner-spouse works in the business during the marriage and the business increases in value during the period between the date of marriage and the date of separation, the community may have a right to reimbursement of either the amount of under-compensation of the spouse working in the business or a portion of the increase in value of the business after a reasonable investment return to the owner-spouse on the value of the business after the date of marriage. The type of return paid to the community, in the form of a right to reimbursement, is determined by determining the main driver of the increase in value of the business during the marriage. The two cases that established these formulas are Van Camp and Periera. Van Camp is generally applied where the business is capital intensive and Periera is generally applied in a personal service type business. It is not always clear which formula is to be applied. It is possible for the court to apply one formula during one part of the marriage and the other formula during the other part of the marriage, although that is rare. Such a split would occur when there was a major change the nature of the business during the marriage. Neither the community nor the non-owner spouse can acquire an ownership interest in the business. The recovery is limited to the right to reimbursement. If the right is to any under-compensation to the owner-spouse, the amount is the total under-compensation to the owner-spouse during the marriage less income taxes and not including any interest. The non-owner spouse would receive 50% of that sum. If the recovery is based on a portion of the increase in value during the marriage, the return paid to the owner, before the right to reimbursement, is an interest rate paid on a long-term secure investment or an industry rate. This rate could be seven percent, ten percent or an industry rate which in one case was set at 12%.

The fact that the non-owning spouse worked in the Orange County business with or without compensation does not impact the value of the business or its character.

The sum to be paid to the community does not bear interest.

The only manner in which a separate property Orange County business can become a community asset is for the owning spouse to sign a writing that transmutes the asset into community property. The writing must be an express declaration of a change of ownership. The writing does not have to have specific magic words but the words must make it totally clear that the ownership and character of the asset are being changed. It is said that a transmutation cannot accidentally occur. The character or ownership of a business will not be changed based on oral statements about who owns the Orange County business or promises about future ownership.

Business Valuation

A business formed or purchased during the marriage is presumed to be community property. The business is generally awarded to the spouse who is operating the business and is valued using one of the valuation methods accepted by the courts. Courts have wide discretion in valuing businesses but cannot use a method that speculates about future earnings. The two most common methods are know as the ‘capitalization of earnings’ which is an income approach and the “capitalization of excess earnings” which is an asset approach. Often Orange County forensic accountants use both approaches. The case law is clear that the real valuation is the investment value, which is the value of the business as an investment to the owning spouse. The value is not necessarily what a business could be sold for. The spouse is awarded the divorce lawyers business is charged with the value of the business without any adjustment for potential future capital gains. If there is an equalization payment to be paid to the other spouse, the payment is an after-tax payment and is not deductible for tax purposes by the paying spouse and not includible to the recipient spouse.

Separate Property Family Residence

If a party owns a home before the date of marriage, that residence is that parties, separate property. If the mortgage payment includes a partial paydown of the mortgage with each payment, and the mortgage is paid with community property, the community acquires a pro-tanto interest in the Orange County residence (not a right to reimbursement). The amount of interest is determined by the amount of the paydown of the mortgage and the amount of the increase in the value of the home after the date of marriage. The fact that the community had the benefit of living in the residence during the marriage does not impact the formula referred to as Moore/Marsden.

If the owner spouse transmutes (gives) the house to the community during the marriage, that spouse is, in effect, giving the appreciation of the house to the community, after the date of the gift. However, if the owner spouse expresses in writing a waiver of the family code section 2640 rights, the gift is of all of the equity in the home to the community. In other words, if, on the date of the gift, the equity in the residence was $1,000,000 and at the time of the divorce the equity was $2,000,000, unless there was a family code section 2640 waiver, the proceeds would be divided $1,500,000 to the spouse who owned the house before the date of marriage and $500,000 to the other spouse.

Date of Separation

One of the first issues that is addressed in a divorce is the date of separation, which is defined as the date when one party clearly and unambiguously states to the other that the relationship has ended. A trial separation is not a separation, in that it is not a final separation. Moving out of a residence is not, by itself, a separation. Of great relevance is what words were spoken at or about the time of the separation. The end of sexual relations between the parties, is not by itself, a separation in the same way as ceasing to wear wedding rings will generally not constitute a separation depending on other factors. The date of separation may be determined by the total of events occurring at the time. Of significance is the fact that a clear date of separation may be voided by conduct, after the date of separation, that evidences a reconciliation or a resumption of the marital relationship. The statement by one party to the other that a separation has occurred need not be in writing to be effective. However, failing to document the event in a text message or email may result in the other party misunderstanding the communication or denying it. To put the importance of this issue in perspective financially, understand that the date of separation can impact the duration of spousal support, the valuation of certain assets, and the responsibility for certain debts. A dispute relative to the date of separation may be of financial significance and may result in a multi-day trial relative to the date of separation, which could have been avoided with a simple email or text message.

Expenditures Post Date of Separation

The earnings of a party after the date of separation are that party’s separate property. Expenditures made after separation may be categorized as the separate debt of the party incurring the expense. If the parties are using joint credit cards or the same checking account, sorting out whose expenses are whose, can be time consuming and very expensive. Often an Orange County forensic accountant is involved in the project and sometimes the differences are significant enough that the matter is litigated. The simple solution is at or about the date of separation, separate the credit cards and checking account.

Payment of Community Expenses after the Date of Separation

A common issue is whether a party should receive credit for using separate post-separation earning for the payment of expenses that are community in nature. If a party uses separate earnings to pay community expenses after the date of separation, credit should be received unless the expenses are for an asset that they paying party using, the payment is in lieu of support or there is an agreement to the contrary. For example, if a party is paying the lease payment for a car that they are driving, no credit should be given.

Separate Property Defined:

• Separate Property: Includes assets acquired before marriage, after the date of separation, or during the marriage through gift or inheritance.
• Community Property: Any asset not considered separate property. In divorce, community property is generally divided equally between spouses, although not necessarily asset by asset.

Court’s Role in Division:

• The Orange County court may allocate specific assets to each spouse, ensuring the total value is equally divided. If needed, the court can order the sale of assets or require equalization payments to balance the division.

Inheritance and Gifts:

• Inheritance and gifts remain the separate property of the recipient, regardless of when they are received.

Separate Property Business:

• A business owned prior to marriage remains separate property. However, if the Orange County business grows during the marriage due to the owner-spouse’s efforts, the community may have a right to reimbursement.
• Two primary methods guide this reimbursement:
  • Van Camp: Applied when the business’s growth is capital-intensive (e.g., due to investments).
  • Pereira: Applied when growth is attributed to the personal effort of the owner-spouse.
• Orange County courts may use one or both formulas during different periods of the marriage if the nature of the business changes significantly.

Business Valuation:

• A business formed during the marriage is generally community property. The Orange County courts use established methods like “capitalization of earnings” or “capitalization of excess earnings” to value the business but avoid speculative future earnings.
• The business value is based on its worth as an investment to the owning spouse, not on a potential sale price.

Separate Property Family Residence:

• An Orange County home owned before marriage remains separate property. However, if community funds are used to pay down the mortgage, the community gains a proportional interest in the property’s appreciation, based on the Moore/Marsden formula.
• A written agreement (transmutation) is required for the separate property to be converted into community property.

Date of Separation:

• The date of separation is the point when one party communicates, clearly and unambiguously, that the relationship has ended. Moving out or ceasing sexual relations does not, by itself, determine separation.
• Disputes over the date of separation can have significant financial implications, such as affecting spousal support duration or asset valuation.

Post-Separation Considerations:

• Earnings after Separation: These belong solely to the earning spouse as separate property.
• Community Expenses: If post-separation earnings are used to pay community expenses, the paying spouse may receive credit unless the payment benefits them directly (e.g., for a car they use).

Overview of Separate Property in California

Divorce proceedings are often complex, particularly when it comes to the division of assets. In California, the distinction between separate property and community property is fundamental to determining how assets are distributed between spouses. Understanding these categories and their legal implications is essential for navigating the divorce process. This guide offers a thorough examination of separate property, its interaction with community property, and how these assets are addressed in a California divorce.

What Is Community Property?

Defining Separate Property

In California, separate property refers to assets that are solely owned by one spouse. This classification typically applies in three main scenarios:

1. Property acquired before marriage: Assets owned by a spouse prior to entering the marriage remain separate property.
2. Gifts or inheritances: Assets that are gifted to or inherited by one spouse, regardless of when they are received, are classified as separate property.
3. Post-separation acquisitions: Once the couple has legally separated, any assets acquired by either spouse are treated as separate property.

The occurrence and manner of acquisition are crucial in determining whether an asset is classified as separate or community property. Conversely, community property encompasses assets and income accumulated by either spouse during the marriage. Upon divorce, community property is generally divided equally between the spouses. However, this does not imply that each individual asset is split equally. Instead, the court ensures that the total value of the community property is shared fairly, which may involve assigning different assets to each spouse and, if necessary, ordering equalization payments to balance the division.

Are The Gifts Separate Property Or Community Property?

Gifts and Inheritances: Isolated as Separate Property

Under California law, gifts and inheritances remain separate property, even if they are acquired during the marriage. However, in order to maintain their separate status, these assets must not be commingled with community property.

For instance, if inheritance funds are deposited into a joint investment account that contains community assets, the separate nature of those funds may become blurred, potentially leading to an expensive tracing project and their classification as community property. To avoid this, it is advisable to keep gifts and inherited assets in separate accounts, clearly distinguishing them from marital funds.

Can An Increase In Value Of A Separate Property Or Business Benefit The Community?

Separate Property Businesses: Complexities in Divorce

A business entity owned by one spouse prior to marriage is separate property. However, if the business appreciates in value during the marriage—particularly due to the efforts of the owner-spouse—the community may be entitled to a share of that increase in value.

California courts employ two principal methods to calculate the community’s interest in the appreciation of a business:

1. Van Camp Method: This approach is used for capital intensive businesses and when the business’s growth is largely due to external factors, such as investments or market conditions, rather than the personal efforts of the owner-spouse. Under this method, the community’s share is typically based on the reasonable value of the owner’s labor during the marriage.
2. Pereira Method: This approach is used for personal service companies and is applied when the business’s success is primarily driven by the personal efforts of the owner-spouse. In such cases, the community may be entitled to a portion of the increase in the business’s value, after allowing for a reasonable return on the owner’s separate property interest.

In some instances, the court may apply both methods, particularly if the nature of the company changes significantly over the course of the marriage. It is important to note that the non-owner spouse does not acquire ownership of the business itself; their entitlement is limited to financial reimbursement based on the portion of the business’s value attributed to community efforts.

Are Forensic Accountants Necessary To Value A Business?

Valuing a Company in Divorce

When a company is formed or purchased during the marriage, it is typically classified as community property. In most cases, the court will award the business to the spouse actively managing it, but the court must first determine its value. Business valuation in divorce proceedings can be a complex process and often requires expert testimony from forensic accountants or financial analysts.

Two traditional methods used to value businesses include:

1. Capitalization of Earnings: This method calculates the business’s value by projecting its future profitability based on its current earnings, Income method.
2. Capitalization of Excess Earnings: This approach assesses the value of the business’s assets and determines the return generated by those assets, Asset Method.

The court’s goal is to determine the investment value of the business to the spouse who will retain it, which may differ from its market value.

Does Using Community Income To Pay Down A Mortgage Create A Community Interest?

Property Owned Before Marriage: The Moore Marsden Formula

If a spouse owns a property before the marriage, the property is generally regarded as their separate property. However, if community funds—such as income earned during the marriage—are used to pay down the mortgage or improve the property, the community may acquire an interest in the property’s increased value.

To calculate the community’s share, the court applies the Moore Marsden formula. This formula takes into account the portion of the mortgage paid with community funds, as well as the appreciation in the property’s value during the marriage. The formula ensures that the non-owning spouse receives a share of the property’s appreciation, reflecting the community’s contributions.

If the owning spouse intends to convert the property into community property, they must execute a transmutation agreement. This formal written agreement must clearly express the intent to change the ownership status of the property. Under California law, anything other than a written family code ŧ852 writing is insufficient to alter the classification of property.

Is It Required That A Date Of Separation Be Set?

The Significance of the Date of Separation

The date of separation plays a pivotal role in California divorce cases, as it marks the point when community property ceases to accumulate. Any assets acquired after this date are considered separate property.

To establish the date of separation, there must be clear evidence that one spouse has explicitly communicated, either through words or actions, their intention to end the marriage. Simply living apart or undergoing a temporary separation does not constitute legal separation unless it is accompanied by a clear intent to dissolve the marital relationship.

Documenting the separation date, such as through formal communication or written documentation, can prevent disputes in the future. The date of separation can significantly affect the division of assets, the calculation of spousal support, and responsibility for post-separation debts.

Are There Any Tips To Follow Regarding Post Separation Finances?

Managing Post-Separation Finances: Addressing Community Expenses

Once the date of separation is established, each spouse’s earnings become separate property. However, complications may arise when one spouse uses their post-separation income to cover community expenses, such as paying joint debts or the mortgage. In such instances, the paying spouse may be entitled to reimbursement, unless the expenses solely benefited them.

To minimize confusion and potential disputes, it is advisable for spouses to immediately separate their finances upon deciding to divorce. This includes closing joint accounts, discontinuing the use of shared credit cards, and clearly defining each party’s financial obligations moving forward. A failure to separate finances can result in a very expensive post-separation accounting project.

Should A Party Review Their Passwords and Digital Assets At The Date Of Separation?

Key Steps to Protect Financial Interests During Separation

To safeguard your financial interests during the separation process, consider the following measures:

1. Open a new individual bank account for your income.
2. Close all joint accounts and establish separate credit cards.
3. Update the passwords for all personal and financial accounts.
4. If you are on a shared phone plan, consider switching to an individual plan.
5. Create a new email account specifically for communications with your attorney.
6. Limit or refrain from posting on social media until your divorce is finalized.
7. Consult with an experienced divorce attorney before making significant financial decisions, such as major purchases or investments.

Serving All Orange County

Choosing the “right” divorce lawyer and family law firm will make a real difference in the outcome of your case. Our Orange County family law firm combines expertise, experience, compassion, and a client-centered approach for residents of Orange County, to provide exceptional legal representation. Minyard Morris is dedicated to helping you navigate the complexities of family law with confidence and peace of mind.

Hire the law firm that Orange County knows and trusts.

Contact Minyard Morris today to schedule a consultation and learn how we can assist you in achieving the best possible resolution. Call Minyard Morris or send us an inquiry using our online contact form.