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San Diego County Family Law Blog

Underwater mortgages turn divorce settlements upside down

Today, a martial home can be more of a burden than an asset during a divorce, especially if the couple has found themselves with an underwater mortgage. This has left many divorcing couples in a predicament when it comes to asset division.

Oftentimes, neither party wants to take over a loan that is exceeds the value of the home, so the parties decide to sell the house. However, the parties soon find out that the buyer will have to provide a cash payment or the lender will have to approve a short sale, which can take several months.

California couple Heidi Klum and Seal announce separation

A celebrity couple known for making public displays of attention announced that they were separating this week. Musical artist Seal and supermodel Heidi Klum confirmed their separation on Sunday, after almost seven years of marriage.

If the California couple decides to move forward with divorce there will likely be a lot of assets at stake. Not to mention, the couple has three children together and a fourth from Klum's previous relationship, so child custody will also be an issue.

All is fair in divorce and alimony?

There are several states around the nation that have passed alimony reform laws or are considering doing so. One of the biggest objections to current alimony laws in these states is permanent alimony.

A permanent alimony award continues throughout the lives of the divorced couple, unless the court allows the order to be modified for a significant change in circumstances, such as a lost job or the spouse receiving alimony remarries.

Social Security retirement benefits, divorce and you

Recently, the Wall Street Journal published a very informative article on Social Security retirement benefits and divorce. The article pointed out that people who were divorced many years ago, or went through the process on their own, likely never heard about an opportunity for a bigger retirement benefit.

First, Social Security retirement benefits are calculated by looking at a person's earning record. The more a person has earned in taxable income throughout their working life, the bigger the retirement benefit will be.

What you should know about legal separation (2 of 2)

Welcome back to our discussion on legal separation. As we have said, it is becoming more common for people in California to choose legal separation as an alternative to divorce. The decision can be influenced by many factors, including finances.

In fact, for some people, legal separation could end up being a better choice financially than divorce. A recent Forbes article explained a handful of scenarios in which a legal separation may be financially superior to a divorce. Here are a few:

What you should know about legal separation (1 of 2)

Legal separation is becoming more common in California and elsewhere. Although some people choose legal separation as an alternative to divorce for religious or personal reasons, there can be financial reasons that influence the decision as well.

As a recent article from Forbes pointed out, there are a growing number of couples choosing to stay legally separated for a length of time or permanently because of the financial benefits it offers in certain situations.

What to remember when going into family law mediation

As we often discuss, mediation is one of the most efficient ways to settle a divorce. Here are some reasons why mediation is a good option for many divorcing couples:

  1. It can be less expensive than litigating a divorce in court;
  2. It can offer privacy as California law protects settlement discussions in mediation as confidential;
  3. It allows the parties in a divorce to have more control of the outcome, rather than a judge; and
  4. It can be a more amicable way to part ways, which can prevent hostility for years down the road, especially if children are involved.

'California girl' Katy Perry rings in the New Year with a divorce

For many people, the New Year will also mean a new marital status. This is true for one of the most famous pop stars in the world, self-described "California girl" Katy Perry.

It was reported that Perry's husband of 14 months, British comedian and actor Russell Brand, filed for divorce on Dec. 30 citing "irreconcilable differences." The announcement came after year of media reports that the couple's marriage was on the rocks.

What to know before divorcing later in life (2 of 2)

Welcome back. We are discussing a recent article in The Wall Street Journal that highlights the financial problems many people encounter after divorcing later on in life.

According to the article, older women are especially vulnerable in a divorce because some have not held long careers outside of the home or established their own retirement assets. This means they have to depend on the retirement savings of their ex-spouses to get by.

So what can you do to prepare yourself for a divorce later on in life? The article said that there are a few steps every couple should consider taking, even those who seem happily married.

What to know before divorcing later in life (1 of 2)

A recent article from the Wall Street Journal highlighted the financial problems many people run into after divorcing later in life. It's no secret that getting a divorce can cut your assets in half, but for some the new standard of living is devastating, the article said.

A wealth adviser interviewed for the article said this is why it's imperative for people to understand the financial consequences of their divorce before going through with it, especially older women.