On behalf of Morna Challoner of Challoner Law posted in High Asset Divorce on Friday, June 16, 2017. Celebrity prenuptial agreements tend to make news because of the different (and odd) provisions that couples hold each other to. It is not surprising to find clauses requiring a spouse to remain at a certain weight, or prohibiting in-laws and friends from staying in the home for more than a week at a time. As prenuptial agreements evolve, more are including what referred to as "lifestyle" clauses. A common example of such a clause is an "infidelity" section. Essentially, a cheating spouse may be subject to a financial penalty if he or she strays from the marriage. One example is the cheating clause rumored to be in the prenuptial agreement established between Justin Timberlake and Jessica Biel. According to Forbes magazine, Timberlake would have to shell out $500,000 if he cheats. Like many clauses in celebrity prenuptial agreements, the infidelity clause may make its way into prenup for everyday people. Indeed, no one wants to face the prospect of being cheated on, and an infidelity clause can help soon-to-be married couples talk openly about what would happen if the relationship gets complicated. While it may sound good while negotiating the agreement, it is important to understand whether such a clause is actually enforceable. Of course, there is no clear cut answer, but courts generally look to a number of factors to ascertain whether the couple actually intended to include an infidelity clause and hold each other accountable. They include, but are not limited to, whether each party had legal counsel while negotiating the agreement, and whether either party signed it under duress. If you have additional questions regarding prenuptial agreements, an experienced family law attorney can advise you.
On behalf of Morna Challoner of Challoner Law posted in High Asset Divorce on Thursday, July 6, 2017. If you and your spouse have made the decision to divorce, no doubt that you have many questions about the process. For many people in Santa Rosa, their biggest concerns lie with how the child custody process and the asset division process will be handled. Every situation is different based on the best interests of the child and the financial aspects of the divorcing couple, among other factors. When a family has multiple assets, including a vacation home, you might be wondering how to procure that asset for yourself in a divorce. If a vacation home is marital property (and it often is) it will be considered an asset that qualifies for division between the two spouses. If the vacation home is a priority for a person in a divorce, and it falls under the category of marital property, one may have to sequester or give up another asset in lieu of the vacation home. However, one should be aware of the tax obligations that may accompany a vacation home. Since virtually all real estate is taxed under California state law, one may need to consider the financial obligations of the property both now and in the future. At Challoner Law, we understand that you may have assets that are very important to you and we do our best to procure those assets for our clients. The tax obligations could help offset the immediate cost of taking sole ownership of the family's vacation home. There are many ways that an asset division can be handled during a divorce. It is important to get a full and complete understanding of all assets and liabilities that can affect the asset division process. This will be the basis [...]
On behalf of Morna Challoner of Challoner Law posted in High Asset Divorce on Thursday, August 10, 2017. Money is a have it or have not situation. For those who have it, it is a great blessing but also a big responsibility. For married couples who have decided to go their separate ways, financial aspects will begin to creep into the minds of those who are looking to separate. So, which assets belongs to whom in a Santa Rose high asset divorce? Financial assets could be any tangible asset like property and savings accounts. Many people have questions about their 401(k)s, many of which have been accumulating assets for years of a couple's marriage. Oftentimes, it is accumulated by the income of one spouse, so the non-earning spouse may have concerns about accessing those funds. Unless previously determined (like in a prenuptial agreement), 401(k)s are typically considered marital property and, thus, subject to equal division between divorcing spouses. However, transferring these assets successfully and with minimal fees is key to getting the most out of your financial assets and investments. When filing for divorce, there are often special considerations or filings that need to be done in order to avoid extra and unnecessary taxation and fees. This could apply to transferring financial accounts like 401(k)s and stocks in case of a divorce. The process can be enough to deal with, so any unnecessary costs or hassles should be avoided during the asset division process, if possible. Special considerations could also apply to the family home if divorcing spouses decide to sell the property and divide up the profits. If not approached correctly, there could be unnecessary costs associated with this process. Divorcing spouses are usually allotted specific tax breaks or discounted fees associated with asset division or transfer. Other parties not going through [...]
On behalf of Morna Challoner of Challoner Law posted in High Asset Divorce on Friday, August 18, 2017. Living in California, it's hard not to notice what's going on with Hollywood couples. Thinking about how these couples juggle their high-profile jobs, relationships and even kids can appear effortless in the media. However, the reality is that high-profile couples often have the same struggles as normal couples and families living in Santa Rosa. One high-profile couple, Anna Faris and Chris Pratt, recently announced their separation in a shocking social media post. In addition to being Hollywood stars with high profile careers and a slew of high value assets, they are also the proud parents of their son. For his sake, they requested privacy at this time, which is understandable as their family is in transition. The couple has been married nearly a decade before they decided to call it quits and have starred in several big productions between the two of them and have acquired several assets both prior to and during the marriage. Because of their high-profile status and careers prior to the marriage, it's entirely possible that a plan may have been in place to help guide the couple in case of a divorce. This agreement is sometimes known as a prenuptial agreement. Prenuptial agreements can help to mitigate how assets may be divided in case a couple decides to end the marriage. It's important to know that a prenuptial agreement can include things about asset division but cannot generally include clauses specific to child custody decisions. Per the press release, it appears that the couple is amicable and working together to sort out their process of divorce. It appears that their focus is on their child and trying to work together to make that transition as smooth as possible for him. [...]
On behalf of Morna Challoner of Challoner Law posted in High Asset Divorce on Friday, August 25, 2017. For families going through a divorce, there are often many questions associated with the process that one would like answered. Questions about child custody and alimony top the list. While these decisions may not impact every family in a high asset divorce (due to not having children) a popular issue, regardless of children, is who gets the family home in a divorce? Naturally, it can't really go to both parties in the split, so how does the law decide who gets it? There isn't always a clear-cut answer for such a straight-forward question. In cases in which a high asset divorce has children involved in custody decisions, the home usually goes to the spouse who has primary physical custody. This is for the betterment of the child, as to uproot a child from their home seems unnecessary and not in the child's best interests. For divorces in which children aren't affected by property decisions it isn't always as clear who might get the home in a high asset divorce. Divorces are meant to be fair and equitable. But if both parties want the home, how can the split be equitable? The truth is, oftentimes other assets will offset a piece of property in which one spouse gets to keep it. For example, the spouse who wanted the home (but didn't end up with it) may get a larger chunk of a retirement account accumulated between the spouses, or another asset like a vehicle or even alimony payments, when appropriate. In high asset divorces, there are often several other assets to take into consideration. Assets like property, financial accounts and other marital property should be accounted for. If not tallied and made aware of, certain assets [...]