New Child Support Legislation in California: A Closer Look at Parental Earning Capacity Assessment

In light of the new legislation that came into effect on January 1, 2023, the process of determining a parent's earning capacity for child support in California has become more nuanced. This legislation mandates the courts to delve deeper into the individual circumstances of the parent, as far as known, when establishing or modifying support orders. A myriad of factors come into play, painting a more accurate picture of a parent's financial standing and ability to contribute towards child support.

Understanding the Factors Affecting Earning Capacity

Under the new legislation, as stipulated in Fam C §4058(b)(2), a broader spectrum of factors surrounding a parent's circumstances are to be considered. These include, but are not limited to:

• Assets

• Residence

• Employment and earnings history

• Job skills

• Educational attainment

• Literacy

• Age

• Health

• Criminal record and other employment barriers

• Record of seeking work

Moreover, the local job market dynamics also play a significant role in this assessment. The courts will consider the availability of willing employers, prevailing earnings levels in the community, and other pertinent background factors that could affect the parent's ability to earn.

Special Consideration: Incarceration or Involuntary Institutionalization

A notable aspect of the new legislation is the treatment of incarcerated or involuntarily institutionalized parents. Per Fam C §4058(b)(3), the law specifies that such circumstances should not be regarded as voluntary unemployment when establishing or modifying support orders, irrespective of the nature of the offense leading to incarceration or institutionalization. This particular provision aligns with the definitions set forth in Fam C §4007.5(e), offering a more balanced approach towards evaluating a parent's earning capacity under challenging situations.

Implications and Moving Forward

This legislative amendment reflects a more compassionate and realistic approach towards evaluating a parent's financial capability for child support. By considering a broader range of life circumstances, the law aims to foster fairer child support determinations that truly resonate with the parent's ability to contribute.

The nuanced assessment of earning capacity underscores the evolving landscape of family law in California, promoting a more equitable framework for child support that aligns with the realities faced by parents today. This is a progressive step towards ensuring that child support orders are just, equitable, and in the best interest of the child, while also being fair and achievable for the parents involved.

Wage assignment orders

In order to have use a wage assignment order for child support you need to have a state wide DCSS case open.

Navigating Spousal Support: A Comprehensive Overview

Introduction: Spousal support, also known as alimony, is a crucial aspect of family law in California. It aims to ensure fairness and financial stability for both parties after a divorce or separation. While there are statutory guidelines in place, the outcome of spousal support cases can be uncertain and subjective. In this blog post, we'll provide an overview of spousal support, highlighting key considerations and Family Code Section 4320.

Understanding Spousal Support: Spousal support, particularly long-term or post-judgment support, involves several critical factors that impact its determination. Here are some key aspects to consider:

1. Becoming Self-Supporting:

   • The recipient spouse is expected to make reasonable efforts to become self-supporting within a reasonable period.

2. Marriage Duration:

   • For marriages shorter than 10 years, half the term of the marriage is often considered a reasonable time for self-support, although this is not absolute.

   • For marriages longer than 10 years, there is no presumption regarding the duration of support.

3. Marital Standard of Living:

   • The "marital standard of living" serves as a reference point for determining post-marital support needs but is not always a definitive guide.

4. Co-Habitation:

   • When a support recipient lives with another person, there is a presumption of decreased need for support, though this can be rebutted.

5. Impaired Earning Capacity:

   • If domestic duties during marriage significantly impair one's earning capacity, additional time or training may be necessary before re-entering the workforce.

6. Support for Education/Training:

   • Support may include funding for education or re-training to enable self-sufficiency.

7. Adjusting Support:

   • Support amounts may be adjusted based on milestones such as completing an educational program or achieving specific goals.

8. Cohabitation Impact:

   • Cohabitation can affect the amount and duration of spousal support.

9. Lump-Sum Support:

   • While support is typically monthly, lump-sum arrangements can be made by agreement.

Considering Family Code Section 4320: Family Code Section 4320 is a crucial reference point for spousal support decisions. It outlines various factors that the court must consider, including:

• Earning capacity of both parties.

• Contributions to education, training, or career by either spouse.

• The supporting party's ability to pay.

• Needs based on the marital standard of living.

• Obligations and assets of each party.

• Duration of the marriage.

• Ability of the recipient to work without affecting dependent children.

• Age and health of the parties.

• History of domestic violence.

• Tax consequences.

• Balancing hardships.

• Goal of self-sufficiency for the recipient within a reasonable time.

• Criminal convictions of an abusive spouse.

Spousal support cases can be complex and emotional, but understanding the factors involved, including those outlined in Family Code Section 4320, can help bring clarity to the process.

(Note: This blog post provides general information and should not be considered legal advice. Always consult with a qualified family law attorney for specific legal guidance.)

The Unseen Losses of Divorce: Beyond Just Your Partner

Divorce is more than just the end of a romantic relationship. It signifies the loss of dreams, connections, and parts of oneself that were intertwined with another. The journey of divorce is filled with unexpected losses that can leave deep scars.

1. The Extended Family: Imagine being embraced by a family for over a decade, only to feel the cold shoulder of abandonment when the relationship ends. The bonds we form with in-laws can be deep and meaningful, and their sudden absence can feel like a betrayal.

2. Grieving a Dream: The end of a relationship can mean mourning the life once envisioned, especially when children are involved. Discovering that the person you thought you knew might have been a facade can be a harrowing experience.

3. Friendship Dynamics: It's a harsh reality when friends, who once stood by both partners, drift away or choose sides. The sting of such losses can be as painful as the end of the romantic relationship itself.

4. Self-Worth and Identity: Relationships shape our sense of self. When they end, it's not uncommon to grapple with questions of self-worth, especially if the relationship began at a young age. The journey to rediscover oneself can be both challenging and transformative.

5. The Children: For parents, the pain of not being with their children during significant moments, holidays, or everyday life can be heart-wrenching. The shared memories and "remember when" moments become treasures of the past, with no one to reminisce with.

6. Financial and Mental Strain: Divorce can take a toll on mental health, time, and finances. The disparities in income and the costs associated with therapy and legal proceedings can be overwhelming.

7. Pets and Shared Possessions: Sometimes, the smallest members of the family, our pets, become unexpected casualties of divorce. Their absence can leave a void that's hard to fill.

Navigating the complexities of divorce requires more than just legal expertise. It demands compassion, understanding, and a genuine desire to help clients find their way through the maze of emotions and challenges.

As a compassionate and dedicated divorce attorney, I understand the multifaceted nature of divorce. My commitment is not just to guide you through the legal process but to be a pillar of support, ensuring that your voice is heard and your interests are protected. Because at the end of the day, it's not just about ending a marriage; it's about starting a new chapter with hope, clarity, and dignity.

Business Income in Divorce

When navigating family law cases involving small business owners, one of the key challenges is determining income available for child and spousal support. In this blog post, we'll delve into the specific considerations that come into play when calculating and using income available for support in such situations.

Small Business Income Inclusion

When a party in a family law case owns a small business, their income from the business is generally included in the calculation of gross income for child and spousal support purposes.

Gross Income Calculation for Small Business Owners

Gross income, in the context of small business ownership, is calculated by considering the income generated by the business. Specifically, this includes gross receipts. However, this is just the starting point.

Required Expenditures

Required expenditures refer to the legitimate and necessary expenses incurred in the operation of the small business. These expenses are subtracted from gross receipts to arrive at the gross income figure. It's important to carefully scrutinize these claimed business expenses.

Depreciation Consideration

Depreciation deductions related to business assets, such as equipment or rental property, are generally not allowed as an expenditure when calculating gross income for child and spousal support. Instead, depreciation deductions should be added back to the adjusted gross income to determine the actual cash flow amount available for support.

Scrutiny of Business Expenses

One of the critical aspects of this process is carefully scrutinizing the claimed business expenses of the small business owner. This scrutiny ensures that only legitimate expenses required for the operation of the business are deducted from gross receipts.

Disclosure and Cooperation

Small business owners involved in family law cases must provide complete and accurate financial disclosure. This includes profit and loss statements, income tax returns, and other relevant financial documents related to the business. Cooperation in the discovery process is essential to ensure that all relevant financial information is available for determining income available for support.

Evidence of Income

In cases where there is a lack of cooperation in providing financial information or suspicion of perjury in income declarations, the court may rely on other evidence. This can include mortgage applications or financial records to establish the party's income.

Fair and Accurate Determination

The ultimate goal in these cases is to arrive at a fair and accurate determination of income available for support. This is achieved by considering the actual financial situation of the small business owner and ensuring that all income sources and expenses are properly accounted for.

Conclusion:

Calculating income available for support in family law cases involving small business ownership is a complex process that requires a thorough examination of both income sources and legitimate expenses. By following these guidelines, attorneys can ensure that support obligations are determined fairly and equitably, based on the actual financial circumstances of the small business owner.