What is Moore Marsden and do I need it?

Experienced San Francisco Bay Area Family Law Attorneys will tell clients about reimbursement rights for property purchased prior to marriage with separate property funds.

For example, if one spouse owns a residence or other real estate as separate property before marriage, and then community funds are used to reduce the principle owed on the mortgage, then the community estate will acquire a pro-tanto interest in the property. This is commonly known as Moore/Marsden based on two cases in the 1980s.

Stated another way, Moore/Marsden Rule provides that when community property funds are used to reduce the principal balance on a loan used to acquire a separate property residence owned prior to marriage by one of the spouses, the community acquires an interest in that property.

A different approach has been used when community property is used to improve separate property. In family law, separate property funds that are contributed to a community property are entitled to reimbursement under Family Code 2640 (without interest or appreciation). Be careful because the statute limits reimbursement to the net value of the property at the time of division.  An additional wrinkle in Moore Marsden calculations can be a refinancing - so contact a family lawyer or Certified Divorce Financial Planner if you have questions about separate property reimbursement.  

Learn more about property division:

MY SPOUSE LIQUIDATED OUR ACCOUNT DURING OUR DIVORCE, CAN HE DO THAT?

WHAT IS COMMUNITY PROPERTY?

 

 

Is Spanking Considered Child Abuse in California?

Experienced California Family Law Attorneys will advise their clients about what constitutes abuse in a custody dispute.  I recently looked into whether spanking of a elementary aged child by parent of opposite gender could be a basis for diminishing custodial time, or joint legal custody. 

The answer is surprising, and it's No - spanking is not abuse.  Under California Welfare and Institutions Code Section 300(a), reasonable and age appropriate spanking where there is no evidence of physical injury does not constitute abuse.  This also includes harsh words.

If you are surprised, so was I. There have been several legal attempts to change this provision of the Welfare and Institutions Code, however, none have been successful.  Gordon Family Law advocates for co-parenting relationships without violence, and if you are concerned about your co-parent's behavior, please reach out to a mental health professional first to assess the situation. 

 

What Is a QDRO or “QUADRO”?

A QDRO (or Qualified Domestic Relations Order) is Court order after a divorce or that splits and changes ownership of a retirement plan to give the divorced spouse their share of the asset or pension plan.

QDROs apply only to employee benefit or pension plans under ERISA.  
Retirement benefits are among the largest assets parties can own and these benefits are considered community property unless there is a premarital agreement stating otherwise.

QDROs were created by Congress to allow a Retirement Plan to pay a portion of the retirement fund to the non-employee spouse or the alternate payee. There is no limitation on the amount awarded to a non employee spouse. While many family lawyers may not tell their clients this fact, a QDRO distribution is not limited by federal law to 50% distribution.  In fact, under ERISA, the non employee can be awarded “all or a portion of” the benefits payable to or on behalf of a payee.  ERISA 206(d)(3)(B)(l)

If you are doing a QDRO yourself, you can request information from the Plan, in writing, including such as the Summary Plan Description and Annual Statement or Account Balance.  A word to the wise, do not count on a plan doing the actuarial valuation – that is something you will need to speak with a forensic accountant. 
Each retirement plan is different and many have specific rules. For example,in California, there is a joinder process for Family Court and the Court must have jurisdiction over a third party and you must join the Plan before administration.  
Additionally, you have to tell the Plan you are asking for a QDRO before you ask for a Court order.  It is best to speak with an attorney because you could cost yourself time and money if you simply fill in the blanks of a mock QDRO without carefully tailoring the document to your circumstances.  One more thing:  QDROs should be filed and served before your divorce is final.  Don’t wait to get your QDRO done – if the employee spouse dies before the QDRO is signed – then the non employee spouse will not be entitled to any benefits.

Looking to figure out if your retirement plan qualifies for a QDRO? Check out our nifty chart. 

Is my speculative bonus income used for a child support calculation?

No. This is different than Ostler/Smith Orders. Under California Family Code Section 4508, speculative bonus income – such as the potential to make a large commission at the end of the year, cannot be included in income used for calculations of spousal and child support. This is because a court may not base monthly support amount on predicted receipt of large bonus that may never materialize.

Other types of money that cannot be included as income are: Student Loans not used for books and tuition and Life insurance death benefits.

However, Gordon Family Law does not advise that you hide all your cash in speculative bonuses or student loans to avoid payments. Why? Because even if the Court rules that a certain category of income is not includable as gross income for the purposes of calculating guideline support, a party can ask the court to deviate from the guideline based on the income received as a “special circumstance,” which would allow the court to increase child or spousal support. 

What is “income” for the purpose of child and spousal support?

Child and Spousal Support calculations are one of the most complicated issues in a divorce.  California Family Code Section 4508 governs how income is calculated for the purpose of support.

Before spousal support or child support can be calculated, each party must disclose their income on an Income and Expense Declaration (FL 150), one of the most crucial forms in your child support case. Calculating support may be as simple as looking at a paycheck stub, but if the party makes income from a variety of sources, be sure to contact a family law attorney to help you run a Dissomaster account because the calculations can actually be sophisticated and complicated.

The Court has wide discretion when determining what is income for the purposes of support and has included benefits and here are some examples of income used for support calculations under Family Code 4508 that you may not expect:

·       Commissions

·       Royalties

·       Bonuses (Marriage of Ostler/Smith)

·       Rents

·       Dividends

·       Pensions

·       Interest

·       Trust income

·       Annuities

·       Social Security benefits

·       Military allowances for housing and food

·       The value of company car

·       Subsidized housing as income. 

·       Re-occurring gifts

I often talk with clients who remember generous relatives who gave annual gifts of $14,000 to their grandchildren and children. If those gifts have not been included on the FL – 150, you should make sure that the other parent discloses these gifts on the income and expense declarations as reoccurring and regular monetary gift from a payer’s parents are income for the purpose of support.

Want to learn more about what is NOT included for support payments? Click here to read about what is not considered income under California Family Code Section 4508.

When does a court look at my ex’s ability to earn to calculate support?

Is my speculative bonus income used for a child support calculation?