The Wealthy’s Best-Kept Secret: How Divorce Mediation Can Save Your Fortune

Posted by: Cherie Davis

Divorce proceedings can be tough and even more so for wealthy individuals who risk losing their fortune and assets. However, there is one solution that many wealthy couples have turned to – Divorce mediation. While mediation is often viewed as the choice for those with less money, it’s also a great option for high-net-worth individuals. In this blog post, we will explore six reasons why wealthy couples use divorce mediation to preserve their fortune and assets.

Confidentiality and Privacy

Divorce mediation is a private way of resolving issues, which offers an amicable resolution to cases without disclosing any of the information discussed in divorce mediation. Rather than discussing their private matters in front of a judge, the process is kept confidential. All parties involved can come to a resolution while keeping their personal information private.

Customized Solutions

Wealthy couples have much at stake in a divorce and can benefit from the flexibility of divorce mediation. This process allows wealthy individuals to develop solutions that make more sense to their unique situation. For example, they can negotiate property settlements, spousal and child support, and other aspects of the divorce tailored to their individual needs.

Control over the Process

The court system can proceed in a rather unpredictable way, with little to no control. However, the parties involved have complete control over the outcome in mediation. Rather than leaving the process completely up to a judge, they maintain control over decisions affecting their lives.

Preserving Business Interests

Wealthy individuals with businesses can benefit greatly from mediation when protecting and preserving business interests. Mediation provides a controlled environment to negotiate a division of business assets and liabilities.

Reducing Conflict

Conflict is inevitable in a divorce, but mediation can help to reduce it. Mediating a divorce can help parties resolve their issues amicably, resulting in a solution that makes sense. By seeking a peaceful resolution through mediation, parties can avoid wasting money and assets fighting the case in court.

Efficiency and Cost Effectiveness

Divorce litigation can be a long, drawn-out process, which can come at a high cost for all parties involved. Wealthy individuals can use mediation to take control of the costs of their divorce without incurring substantial legal fees. The average person certainly can’t afford litigation costs, but mediation offers a more manageable solution to their legal issues.

In conclusion, divorce mediation is a versatile solution for wealthy individuals looking to dissolve their marriage with minimal impact on their fortune and assets. This process can help to maintain privacy, provide customized solutions, and preserve business interests. Additionally, mediation can reduce conflict, and costs, while allowing parties involved to maintain control of the outcome. So, if you’re a wealthy individual going through a divorce, consider using mediation as an amicable resolution to your marital issues.

Contact Us for Divorce Mediation Assistance

If you have any questions about the divorce mediation process or want to schedule a consultation, please contact us to learn more. We help clients work together to maintain a respectful dialogue and reach agreements that result in sustainable outcomes that will benefit everyone involved in the process. We look forward to helping you.

What To Do If You Can No Longer Afford Spousal Or Child Support

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediation; California Divorce MediatorsA common concern that often comes up after the declaration of a divorce judgment in the court is the spouse who has been asked to pay for spousal or child support declares his or her inability to do so any more. The aim of this article is to discuss the steps that should be taken if such an issue comes up.

Step 1: Go through the divorce decree thoroughly

While it is an obvious thing to do, there are several people who tend to overlook it. A divorce judgment is an extremely crucial document, which anyone such as the judge, litigant and attorney should examine carefully. It is a document that the basic framework to determine how to proceed.

There are some cases where the judgment was announced many years ago. In such cases, the support that is unaffordable can be already the unable. Hence, it is extremely crucial to read the language well especially in the section for spousal support or child support of the court judgment to find out the conditions, which could lead to an automatic censure of support. There could be also a particular end date to pay for support according to the judgment pronounced. When such conditions are specified, the spouse who has been paying may just stop paying for alimony or child support. You need to also conduct a proper review of the judgment for making sure whether your court has reserved its jurisdiction over matters related to spousal support or child support.

Step 2: Put your best foot forward to reach an agreement

Your next step should be to find out whether the issue can be settled informally without the knocking the doors of the court. In order to get it done, it makes sense to directly interact with recipient of your support and know whether they are comfortable with a possible reduction.

When you and the other party do not succeed in reaching an agreement, you may else take help from alternative resources of dispute resolution like family law judges who have retired or mediators specializing in family law. When you take such an initiative, there could be the formation of a confidential forum to resolve your disputes in a cost-effective and timely sinner instead of taking the matter to the court.

Step 3: Get set for your post-judgment litigation

In case you and the other party are unable to reach an agreement, the only choice left before you is to approach your Family Law Court to plead your case for a modification action on the judgment issued previously. The opposing party should receive a copy of such a motion.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Tips to Keep Your Divorce Expenses Down

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediation; California Divorce MediatorsAlthough you could be the one you initiated your divorce process, it may still take a toll on you. It is quite a costly process and there is hardly anyone who emerges as a winner in a divorce? Costs can get multiplied when a single household splits into two. But rational and logical thoughts, proper planning and education may be helpful in lowering the financial impact. Check out the following suggestions that can come handy for keeping your costs in check during the divorce.

Try to stay out of a court as far as possible

A litigated divorce can be quite an expensive affair. In fact, it may even deplete the marital assets of a couple who are about to end their marriage. Collaborative or mediation divorce can save both money and time and also help in completing the procedure in a proper manner. When these approaches are adopted, it is easy to agree on common grounds so that a mutually satisfactory agreement between the couple can be reached. When both the parties are flexible and can come out with solutions to sort out their issues, there could be a cooperative association between the former spouses in the future. Hence the parties can proceed with fewer possibilities of conflict and stress, particularly when kids are involved in a marriage.

You can secure professional help to get a feel of your financial situation

Splitting natural properties and financial issues can be extremely time consuming and complicated aspects while a couple gets divorced. Expenses can shoot up drastically as a consequence. It is recommended to hire an experienced attorney as they have the necessary expertise and experience on similar legal matters. The only point you need to take care us about hiring an attorney with specialized knowledge of handling with complex financial matters.

Increase communication and reduce conflicts

You need to realize that when you fight more, your divorce proceeding could get more complicated, It in turn will make the overall process more expensive. Make sure that the attorney hired by your spouse or your attorney does not try to encourage conflict between the two of you. You need to think rationally so that you can continue to communicate freely with your estranged spouse. When you adopt a flexible approach and are ready to negotiate, you can actually save thousands of bucks. There is hardly any merit to try taking revenge on your former spouse or extract vengeance for their supposed bad behavior. The culmination of the distribution of your marital property should be accomplished in a manner that is equitable and just for both the parties involved.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Considering Your Credit Ratings When You Get Divorced

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediation; California Divorce MediatorsIf you are getting divorced, it is imperative for you to be cautious so that your credit does not get damaged during the process. Check out some of these common scenarios that you should be vigilant about.

It is becoming too much to make the car payments 

The court has declared that the family car should be awarded to the ex-wife. However, she is also supposed to take ownership of the payments. When the couple was married, it might not have been a strain to make those payments. However, now that she is shifting to a new house and has to completely rely on her own personal income, she may end up paying the EMIs late. When payments are not made on time, the credit report may get hit. 

None of the spouses paid the due on their joint credit. 

When the divorce settlement is being negotiated, both the parties usually settle and decide who will bear the responsibility of paying certain debts, For instance, the former husband is supposed to pay the debt on the joint credit card. When he fails to pay off the debt, collections may receive that account. As a result, there could be significant damage caused to the records of both the parties although the former wife is clueless about what was happening.

No credit as there was no history 

In many marriages, only one of the spouses controls finances. On many occasions, the names of both the couples may feature on the accounts. For instance, only the husband’s name appears on the sole credit card and on the mortgage and the wife has to depend on their family checking account. After a divorce is finalized, the said wife may not have any credit as she did not attempt to create her separate credit history during the marriage. It is important to note that credit history is a part of the credit score.

Ensure that credit record are protected

The spouses should realize that credit scores are an important concern during the process of divorce. It is crucial for both the parties to contemplate about personal credit history. They should address relevant concerns in their divorce decree. Here are some of the ways of doing so.

  • Separate from the joint account 

A spouse should ensure that their name no longer features in an account controlled by the ex.

  • Must have separate and own accounts 

One needs to ensure their access to credit. Both the parties should ensure that those accounts have a good history.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Epstein Credits and How They Can Affect Your Divorce

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediation; California Divorce MediatorsEpstein credits come up often in California divorce proceedings and as such it pays to know a bit about it. Spouses often learn about these from their lawyers and it is often a contested issue.

Epstein Credit

The term Epstein credit originated from the Marriage of Epstein case. This 1979 case is a published California case. The Epstein credits initially partially became a part of the California Family Code, section 2626. The code states, “The court has jurisdiction to order reimbursement in cases it deems appropriate for debts paid after separation but before trial.”

So, the Epstein credit is basically a form of reimbursement. It offers reimbursement to the spouse who pays community expenses or debts after separation but before the trial. This applies when the spouse pays such expenses with their post separation money. The reimbursement that they receive is actually the other spouse’s share of that particular debt or expense. As example of the type of expense we are discussing here we can consider payments toward a property mortgage. These credits are not limited only to certain types of payments or assets.

Exception to Epstein Credits

There are several exceptions that need to be kept in mind while considering the Epstein Credits rights. There are certain situations in which the family court may not order the reimbursement: They are as follows:

  • The spouses have a prior agreement that does not allow a reimbursement.
  • The payment was to take care of the paying spouse’s spousal support or child support obligations.
  • The spouse who is seeking the reimbursement will not receive it as the payment was initially intended as a gift.
  • The spouse cannot seek reimbursement for the mortgage payment of an asset that they have been using exclusively.

Each individual case differs from the other when it comes to the use of these credits. Irrespective of that, it cannot be ignored that these credits can come in very handy and be useful in any California divorce proceedings. It can take care of some of the most complicated cases of division of assets and treatment of payments made towards mortgage and debts; an issue that most separated couples face.

It is important to consult a divorce advocate who can provide you counsel on whether or not these credits are applicable in your case and if so, then how you can go about using it in your case.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Top Financial Challenges Faced By Divorced Mothers

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediators; California Divorce MediatorsWhen you know the challenges that lie before you as a single mom, it becomes easier to prepare an appropriate action plan so that you can take care of the kids in the best possible manner in your next stage of life. Here are some of the top financial challenges moms face after a divorce gets finalized. 

Ways of paying the bills

One of the top financial concerns for the newly single moms is paying the monthly mortgage or bills. It can be an overwhelming and daunting affair to take care of the household utilities. However, do not despair and give up hopes. You can get through the trying time through many ways. For instance, you can sell off your house and move in with your close friends or family members during this trying time so reduce the financial burden. Alternatively, you can also contemplate refinancing your house to procure a lower rate. 

Providing necessities for the family

It is quite likely that your household income could have been slashed considerably after your divorce. You could be a homemaker while being married. There are other financial concerns after your divorce too such as clothing and school supplies. After all, these can be expensive too. A serious concern for you as a divorced mother is to look out for ways of providing for the entire family. 

Getting the required money to pay for childcare

If you are a newly divorced single mom, you may have a series of financial obligations that may compel you to join work once again or opt for double jobs simultaneously to meet ends. In fact, it can be a big blow as you, not only feel tired and anxious but cannot spend much time with your kids.

When you work full-time, you also need to look out for a reputable childcare facility to take care of your little ones when you are at office. You can take the help of your friends and family members to seek care for the kids when you are away from home until the time you start enjoying financial stability once again. 

Finding a suitable place to live

It is a sad truth that 20 percent of the divorced women fall below the poverty line after their marriages end. Now, that is hardly an encouraging statistic for divorced and single moms who want to offer the finest housing facility and schooling situation to their kids. A serious financial concern after your divorce is where you will live. In case you are incapable of staying in your original house, you should not feel disappointed, you can get help from various assistance programs for housing designed specifically for single moms and families with low incomes, which can come handy during this difficult time.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

3 Things You Must Do Prior to Filing for Divorce

Posted by: Gerald A. Maggio, Esq.

Divorce mediation attorneys in Orange County; California Divorce MediatorsMany couples who are on the verge of getting divorced feel extremely emotional and cannot think rationally while the process is underway. Often, the decision of taking a divorce roots from negative emotions, which can trigger a person to take a leap towards the divorce process.

Similar to other high-impact decisions in one’s life, it makes sense to take some time, know what will be your financial position in the future and where do you stand now, and align yourself with a good divorce lawyer who can help you by protecting your legal rights, prior to and after filing for the divorce.  The following 3 steps are some of the things you should do before going ahead and filing for divorce.

Seek the help of a reputable divorce attorney

You should interview a minimum of three divorce lawyers before hiring one. Opt for an attorney who has an experience between five to ten years and has been practicing divorce and family law. However, your divorce becomes a cakewalk and less costly when you and the other party can settle all matters without litigation. However, when that is not possible, you need to ensure that a capable attorney is hired who will be prepared to litigate your divorce case in the court before a judge.

Collect evidence of income

There will be a requirement of relevant documentation to show your income as well as your spouse’s income. In case both of you are salaried employees, there may be also a requirement to produce your recent pay slips’ copies along with your latest Income Tax Return.

Ascertaining income could be a tough task when your partner is self-employed.  In scenarios like that, copies of financial statements and statements of bank accounts can have proper clarity on your spouse’s income. Make sure that you have copies of all these statements prior to filing for your divorce. However, it will be difficult to know the actual and exact amount earned by your estranged spouse when he or she is self-employed, though you can get a fair idea with the suggestions given above. Collect whatever information you are able to. Later on, your attorney may help you in getting the remaining information through the process of discovery.

You need to have a fair idea of your financial position

One of the major goals of any divorce process is to ensure an equitable division of your marital debts and assets. So, you should have a clear idea of where you and your estranged spouse fare financially. If you want to receive your just share while negotiations for your divorce settlement is going on, it is essential to know what is owed and what is owned.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Tips for Mothers Going Through Legal Separation or Divorce

Posted by: Gerald A. Maggio, Esq.

Once the initial shock settles down and the divorce becomes a reality, you start realizing that your life will change in many ways when you become a single woman once again. A realization like this can be actually scary for many. However, like many others, you will also get used to these new changes gradually. So do not lose your cool and be patient.

It is indeed a gutsy role to be a single mother once your divorce gets finalized. Such a role will also be a challenging one as you transform into a stronger individual with each day. Do not feel scared and prepare yourself for the rainy day. You should start doing everything on your own so that your life becomes less stressful and easier. You may consider the following divorce tips that are helpful for single moms so that you can prepare yourself and plan accordingly.

Spend time in reviewing your financial position 

Do not indulge into self-pity or worry unnecessarily about your inability to provide for your kids. It will not serve any purpose and will end up giving you headaches. Thus, it is advisable to put aside your worries about how to get enough money to purchase a bicycle or doll for your little one. There are various ways of giving toys to your kids without going to the market to purchase them. You can make those toys at home. Let your kids help you out as they are going to love such activities. When you spend your time together and create these toys, it will be a memory they are going to cherish for a long time to come.

Self-education is extremely important 

Self-improvement initiatives and education are important things to work on at this crucial juncture of life as you need to be self-equipped and self-dependent in your new life. You can go online and research for some free courses on the net, find out easy tips to earn money and check available resources as a part of your action plan.

Be well-informed about issues like insurance plans, savings, credit, and taxes as they will come quite handy after your divorce. You can do so by either researching about them online or by hiring a professional consultant. Try to find out whether there are any government sponsored programs along with the benefits they offer to single mothers. The bottom line is you should have all relevant information at your disposal so that looking after your household and finances after your divorce become simpler.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

What Happens When Your Former Spouse Files For Bankruptcy?

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediation; California Divorce MediatorsWhen you go through a divorce, it can be both financially as well as emotionally painful. Moreover, if your former spouse suddenly files for bankruptcy, things can be even more stressful for you as there is a possibility that your financial stability can get greatly affected.  Divorce, as well as bankruptcy, may have a great impact on your financial position in various ways based on the new circumstances of your ex-spouse. Check out some of the important things that you can consider while going through a bankruptcy and a divorce.

Cosigned or joint credit liabilities

When your former spouse files for bankruptcy, the responsibility for any debt falls on you in case you are a cosigner or a joint owner. The lender may hold you accountable as a cosigner or a joint owner to pay for a loan when your ex-spouse declares that he/ she is bankrupt and is unable to make the due payment.

Though it is unfortunate but the creditors are least concerned about the statements mentioned in your divorce agreement. So, your liability to pay the debt still exists when your former spouse fails to make the payment. A divorce payment does not remove your accountability to pay; it only indicates that you can compel someone else to do so. So you should be ready to pay the debt in case your former husband or wife is discharged from the need to pay off the loan or stops paying due to the bankruptcy. In such a scenario, you should immediately get in touch with your divorce lawyer and discuss what legal options are available for you.

Child support and alimony

Expenses for child support and alimony should be paid prior to paying the other creditors as well as taxes. However, though your alimony cannot be discharged, it does not mean that you will continue receiving the same amount before your former spouse fee pared bankruptcy.  In a majority of the States, the obligations for alimony can be revised when the ex-spouse submits his or her request to a bankruptcy court. It is up to the bankruptcy court to decide a revised amount for the alimony or enter into a new agreement with you after the petition filed by your former spouse.

But there are a few rare situations when alimony may be also discharged. Thus, in order to be on the safer side, it is better to consult your divorce attorney to make sure that your support payments or alimony remain protected.

Impact on your credit report

Though your ex-spouse filed for bankruptcy, your credit score may not get affected directly. The reason for this so your credit score is considered to be distinct and separate from your former spouse.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation

Can An Orange County Divorce Destroy Your Retirement?

Posted by: Gerald A. Maggio, Esq.

Orange County divorce mediators; California Divorce MediatorsWhen you have finally made up your mind to get a divorce, it is likely that you may not think too much about how it can have an impact on your retirement. However, it is an extremely valid matter to think about. Insured Retirement Institute conducted a study which observed that about 24 percent of the divorced couples who are born after World War II felt their condition will deteriorate after retirement because of the divorce. About 23 percent of the respondents mentioned that they must work for longer years to combat the hardship. Thus, it signifies that you need to take certain measures for protecting your retirement plans. Additionally, it is better to do so as quickly as possible. After all, the financial impact of a divorce can actually last for many decades. Check out some ways to ensure that your retirement dreams are on a proper track irrespective of your divorce.

Retirement and divorce

Although your divorce could be taking place many decades before your retirement date, it is likely that your retirement savings may be badly affected. First of all, a divorce would typically mean that your retirement funds could be split between your former spouse and you. As a result, you may find a substantial reduction in your retirement savings. Secondly, a divorce also signifies that soon it will be a single income household albeit temporarily. Thus, it is possible what you would be able to save quite less for your post-retirement years as compared to what you had initially anticipated or planned.

Divorce and your retirement savings

Local as well as state laws ascertain the manner in which your retirement savings will be split between your former spouse and you. In case you are residing in one of the community property states, any assets acquired by your spouse or you during the course of your marriage are regarded as joint property irrespective of who saved the money. California is also an example of a community property state along with other States like Washington, Texas, Arizona, Louisiana, Wisconsin, Idaho and New Mexico.

The most certain technique to ensure that your retirement savings are protected is to enter into a prenuptial agreement, which specifies which party will get the exact percentage of the saving in the accounts in the event of a marriage breakup. In case, you have not set up a prenup, you should negotiate with your former spouse and come up with an agreement that will benefit you both. You can hire one of the reputable Orange County divorce mediators at California Divorce Mediators to help you in the process.

To learn more about the divorce process in California and how mediation can help, please visit our page, What is Divorce Mediation