Do grandparents have a right to visitation with their grandchildren?

Experienced bay area family law attorneys will tell their clients that, yes, Grandparents may petition for visitation with their grandchildren in the following situations:

·      A parent is deceased (Fam C §3102);

·      A dissolution or other family law proceeding is pending in which child custody is already at issue (Fam C §3103);

·      The parents are not married to one another, including after a marital dissolution (see Fam C §3104(b); Marriage of Harris (2004) 34 C4th 210, 211);

·      The parents are married but are living separately and apart on a permanent or indefinite basis, and meet other statutory criteria (Fam C §3104(b)); or

·      The child has been adopted by a stepparent (Fam C §3104(b)(5); Finberg v Manset (2014) 223 CA4th 529, 532).

A court has authority to grant “reasonable visitation” to grandparents in dissolution, nullity, or legal separation proceedings. Fam C §3101. In addition, if either natural parent is deceased or incarcerated, the court may grant reasonable visitation of a minor child not only to the parents and grandparents of the deceased parent, but also to any children or siblings of the deceased parent. Fam C §3102.

If you are Grandparent and are looking to ask the Court for visitation, you have two options when it comes to asserting a right to contact with a child: (1) Either a guardianship proceeding must be initiated, or (2) the grandparent must assert a claim either by filing a separate petition initiating a family law action or by seeking an order in an existing action under Fam C §3021. See Fam C §3103. For (2), you should speak to a lawyer regarding the Joinder procedures.

The judgment of the natural parents will control the grandparent’s contact in most cases, and any contact must still be deemed in the child’s “best interest.” Fam C §3104(a)(1). The family court may make no more than a visitation order between the child and the grandparents. However, in light of the effect this may have on the custody proceeding, the grandparents may also be ordered to pay child support as well as medical and daycare expenses for the child. Fam C §3103(g)(2).

You can contact me at Amanda@gordonfamilylaw.com for more information.

What new parents need to know about taxes

Preparing for a new baby can be exciting, stressful, and somewhat terrifying.  It’s easy to get overwhelmed with the onslaught of advice that comes with having a newborn. That’s why we prepared a cheat-sheet for you on taxes for new parents, so that you don’t need to surf through all the noise and you can focus on what really matters – spending time with your new little one.  

These tax tips apply exclusively to married parents with one child.

1. Dependent Exemption

An exemption on your tax return is an amount of money that you are entitled to deduct from your Adjusted Gross Income. There are two types of exemptions: personal exemptions and dependents.  For each exemption you can deduct $4,000 on your 2015 tax return.

If you are married and filing a joint return, you are entitled to an exemption for you, your spouse, and your child.  For example, in a family with two parents and one child, the family can deduct $12,000 or 3 x $4,000 from their Adjusted Gross Income.

To claim your child as a dependent you will need to put his/her social security number on your tax return.  Social Security Numbers are typically arranged for right after birth at the hospital.  However, if you never requested a SSN, you can file Form SS-5 With the Social Security Administration to get a replacement. You will need to provide proof of the child’s age (birth certificate) and proof that the child is a U.S. Citizen.

For 2015 income taxes, new parents can claim any child born in 2015.  If your child is born in 2016, you will have to wait until next year to get the dependent exemption.

2.    Child Tax Credit

You may also qualify for the Child Tax Credit which can reduce your tax bill by up to $1,000 for every child under the age of 17.

To claim a child for purposes of the Child Tax Credit, the child must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew.  

The Child Tax Credit is limited if your AGI is above a certain amount. For married taxpayers filing a joint return, this limitation begins at $110,000. This means that if you and your spouse jointly make more than $110,000 the amount of child tax credit will reduce. In addition, the Child Tax Credit is limited by the amount of the income tax you owe and any alternative minimum tax. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit. See https://www.irs.gov/publications/p972/ar02.html

3.    Child and Dependent Care Credit

If you paid another individual to care for your child who is under 13 years old last year, you may be able to claim the credit on your taxes.  The credit can be applied to after-school care and day camps during school vacations.

If you qualify for the credit it can be worth between 20 and 35 percent of your allowable expenses.  However, the percentage you are allowed to claim depends on your gross earned income.  If you paid for one caregiver you can expense $3,000 and if you paid for two caregivers or more you can expense $6,000.

There are some limitations: (1) The care must have been necessary so you could work or look for work. If you are married, the care also must have been necessary so your spouse could work or look for work. (2) Your child must have been under 13 years old during the year.

To claim the credit, you will use Form 2441 and should include the SSN of each caregiver including their name, address and taxpayer identification number of your care provider on your tax return.

If dependent care benefits are part of your employer’s compensation package, you will want to look at IRS Form 2441, because special rules may apply.

4.    Start a 529 Plan

Another tax saving tip is that you may consider starting at 529 plan with your state or another educational institution. Created by Congress in 1996, a 529 plan is a savings plan operated by a state or educational institution that has tax advantages to make it easier to save for college and other post-secondary training for your child.  

You still have to pay taxes on any earned income that you put in the savings plan, however, the main tax advantage of a 529 plan is that all earnings of the money in the plan are not subject to federal tax if they are used for the educational expenses of your child. Educational expenses can even include technology. You can start a 529 plan anytime during your child’s minority and unlike a custodial account that eventually transfers ownership to the child, the account owner (not the child) calls the shots on how and when to spend the money in a 529 plan.

You can contact me at Amanda@gordonfamilylaw.com for more information.

What value does a Mediator add?

Parties are often surprised at the role of a Mediator. Unlike attorney advocates, Mediators rarely tell individuals what is best or how to structure their deals. Instead, Mediators act as a buffer between parties who has the ability to identify underlying needs and interests of the parties. Mediators pay attention to the process and provide structure by ensuring a safe environment set up for success. 

Mediators are also trained in conflict management. Instead of fearing conflict, Mediators embrace conflict and work through tensions to create a durable agreement for the party’s future.  Mediators are okay with tears, yelling, and frustration. Our job is to maintain neutral and not be swayed by big emotions. 

A mediator also has excellent communication skills and is able to re-frame, assert, and ask effective questions. We seek to be the agent of reality, and a good sounding board for ‘fairness’ and equality. 

Last,  Mediators can often be especially skilled at data collection and analysis. Unlike an attorney advocate who wants to find the smoking gun in your financial disclosures, a Mediator can quickly sort though the information without judgment and display alternatives and variables in a calm neutral manner.

Mediation can be the right fit for your family if you want more control over the process.  However, if the parties need a Judge to tell them how it should be, then Mediation is not a great fit.  Mediators let both sides present as much information as they need, and unlike Court, decisions are not final until the parties agree to them in writing.

Mediation is likely to succeed if there are many issues at play, the parties want to control the process, there is communication conflict (where parties have different ideas of fairness), the parties wish to save time and stress, and there is room for creative resolution. 

You can contact me at Amanda@gordonfamilylaw.com for more information.

What about our Children?

Divorce is never easy on kids, but there are many ways parents can help lessen the impact of their break-up on their children:

Never disparage your former spouse in front of your children. Because children know they are "part mom" and "part dad", the criticism can batter the child's self-esteem. 

Do not use your children as messengers between you and your former spouse. The less the children feel a part of the battle between their parents, the better.

Reassure your children that they are loved and that the divorce is not their fault. Many children assume that they are to blame for their parent's hostility.

Encourage your children to see your former spouse frequently. Do everything within your power to accommodate the visitation.

At every step during your divorce, remind yourself that your children's interests – not yours – are paramount, and act accordingly. Lavish them with love at each opportunity.

Your children may be tempted to act as your caretaker. Resist the temptation to let them. Let your peers, adult family members, and mental health professionals be your counselors and sounding board. Let your children be children.

If you have a drinking or drug problem, get counseling right away. An impairment inhibits your ability to reassure your children and give them the attention they need at this difficult time.

If you are the non-custodial parent, pay your child support. The loss of income facing many children after divorce puts them at a financial disadvantage that has a pervasive effect on the rest of their lives.

If you are the custodial parent and you are not receiving child support, do not tell your children. It feeds into the child's sense of abandonment and further erodes his or her stability.

If at all possible, do not uproot your children. Stability in their residence and school life helps buffer children from the trauma of their parent's divorce.

You can contact me at Amanda@gordonfamilylaw.com for more information.

Post Divorce Checklist

Did you get divorced recently? Once all the dust has settled, here is a checklist of items to help you separate your financial affairs.

Bank and Investment Accounts
Open individual checking and savings accounts and be sure to close any remaining joint accounts, other than any designated children’s expense accounts
If assets are being transferred from a joint account to a separate account, be sure the company handles them as in-kind transfers when needed to avoid any unexpected tax consequences.

Property
Transfer ownership on all real estate deeds and be sure they are recorded at the appropriate county recorder office.

Complete any refinancing or mortgage assumptions necessary.
Transfer ownership and registration for any automobiles, boats, etc. and be sure they are recorded with the appropriate DMV office.
Be sure any auto loans, etc. are refinanced as needed.
 

Retirement Accounts
Review and update the beneficiary designations on all of your retirement and pension accounts. If there are retirement accounts to be transferred, provide the custodian with a copy of the settlement in order to get them processed. And if a QDRO is required to split a qualified retirement account, confirm that the plan administrator has accepted it and that it has been filed with the court.

Debts
Open individual credit card accounts.
If necessary, transfer any credit card/loan balances into your own name and then close joint accounts.

Insurance
If health insurance plans will change, obtain COBRA coverage or start a new individual policy.
Update any homeowners, umbrella, auto, etc., insurance policies.
If appropriate, obtain a life and/or disability insurance policy on the payor of child or spousal support to protect income should the payor die.  The recipient of support should be both owner and beneficiary, and should control payment of premiums.
 

Estate Planning
Review and update your will and/or trust, and be sure to designate guardians for your children if necessary.
Update any health care proxy and power of attorney documents.

Taxes
If in your settlement, complete IRS form 8332 in order to transfer child dependency exemptions to the non-custodial parent.
Review your tax withholding allowances and determine if any estimated quarterly payments might be necessary.

You can contact me at Amanda@gordonfamilylaw.com for more information.