Are You a Victim of Financial Infidelity?


The author in this article presents a very interestin­g take on fidelity in marriage. The idea of “financial fidelity” is a good one. So many of my divorce clients arive at the decision to end their marriages over money issues. As a divorce profession­al, I appreciate the advice to have a moderate response with financial “cheating” is discovered­. Many of my clients opt for a postnuptia­l agreement when such happens as a way to prevent the marriage from disintegra­ting. Having a written agreement with clear understand­ings of the financial boundaries and what is expected from a spouse can have a huge impact on the success or failure of the marriage going forward. I also support having the prenup discussion prior to marriage so that a marrying couple can have the money conversati­on. This prevents misunderst­andings and incorrect expectatio­ns from developing down the road.
Read the Article at HuffingtonPost

What sort of drug or alcohol testing can a California Family Court order in a custody proceeding?

California Family Code section 3041.5 provides a mechanism for drug and alcohol testing for parents involved in custody disputes. Testing can be ordered if the court finds, by a preponderance of the evidence, that a parent uses illegal drugs or alcohol habitually or continually.

It doesn’t end there, however. The tested party is entitled to a hearing to challenge any drug results. So, a positive test, in and of itself, is not sufficient grounds for a ruling to limit or terminate custody rights. However, it can be a huge factor in evidence.

Interestingly, only certain tests are allowed thanks to a case known as Deborah M. v. Superior Court (Daryl W.) (2005) 128 Cal.App.4th 1181. In Deborah M., the court held that because Family Code section 3041.5 requires drug testing to conform to federal drug testing procedures and standards, only urine testing is allowed.

While a 5 panel urine drug test can indicate whether drugs have been used recently, the preferred test, the hair follicle test, cannot be ordered by the court unless the parties agree. Hair follicle testing is more reliable than urine testing because the evidence of substances remains for as long as the hair follicle exists, whereas in urine testing the substances pass out of the system in 24 hours. . It is then that professional help might be sought and with the help of service providers (such as Countrywide Testing) in this specialized field, proper results can be achieved. More often than not, the tests conducted tend to give accurate results and the same lays a significant effect on the outcome of various hearings. However, as with all methods, there can still be faults with hair drug testing. Regardless, the Court has made it clear that the code’s requirement of conformity to the federal standard of urine testing is what will be allowed. Of course, parties can agree to a more stringent standard.

If a client of mine is worried about the other parent’s alcohol or drug use, but there is not enough evidence to get a drug test ordered or there is a concern that unrine testing will be insufficient, I often recommend that the client try to get an order for a mutual prohibition of alcohol or illegal drug usage in the presence of the child.

If there is a past history of addiction, the Court will often require attendance with a sponser at Alcoholics Anonymous or Narcotics Anonymous. Whenever I represent a party with a history of addiction, no matter how slight that history may be, I often recommend and even insist that the client attend AA or NA as a protective measure in the case. I have never seen a Judge punish a party for going to meetings.

I have also had cases in the past where there is concern that a client is abusing prescribed pain medication such as Oxycontin. In such case, it is a good idea for the non-using parent to insist that there be controls in place to ensure that the other parent doesn’t abuse his or her medication. For instance, there should be a pain management contract regulating the use of controlled substances. I have also had success in getting orders for mass spectometry and liquid chromotography testing, which does a more thorough examination of a urine sample using laser technology. Not only does it give a qualititative result (i.e., relating to the presence of a substance) but also gives a quantitative result (i.e., how much of a given substance is present). This is helpful because the test itself is a simple urine sample type test, so it is no more invasive than any other urine test, but the data is so much more useful. It is especially helpful in determining whether a pain management patient is compliant with his contract or if he is overusing a particular medication or is mixing the medication with alcohol. Although I have been successful in getting orders for such a test, I have seen no caselaw to test whether it meets the standard set out in Deborah M.

In general, unless you have obvious and provable abuse, it is hard to produce enough evidence to limit a drug or alcohol abusers parenting. The best alternative approach is to insist on boundaries and controls that can provide the most possible protection for the child, even if parenting cannot be limited.

Responding to Recent Violence in Custody Disputes, CA Attorney Mark Baer Advocates Consensual Dispute Resolution Methods to Help Quell Future Meltdowns

 

 

 

Mr. Baer sums up my thoughts regarding the seeming increase in domestic violence in custody disputes.  I am convinced that the adversarial litigation process for resolving family issues has contributed significantly to the level of hostility between parties.  While some parties will be dangerously violent no matter what environment they are in, we can help reduce conflict in many cases as attorneys be referring folks to forms of alternate dispute resolution such as mediation or collaborative divorce.  Even in a litigation context, attorneys should be careful not to “fan the flames” of the conflict.  Much can be done to reduce the chances that a particular family will move into dangerous territory.  Here’s Mr. Baer’s articles:

Responding to Recent Violence in Custody Disputes, CA Attorney Mark Baer Advocates Consensual Dispute Resolution Methods to Help Quell Future Meltdowns.

Can I deduct my divorce or family law legal fees on my taxes?

How much will it cost?

Generally, divorce fees are not deductible.

The general rule is that divorce is a personal expense and is not deductible as a business expense. United States v. Gilmore (Gilmore I) (1963) 372 U.S. 39. So the short and easy answer is, “No.”

However, don’t despair. There are still some ways you can get a break from some of those fees.

Here are some exceptions to the general rule:

Fees to obtain alimony or taxable pension distribution.

If you are a spousal support or alimony recipient, you can deduct those fees relating to obtaining taxable spousal support or a taxable pensions distribution. (See I.R.C. 212(1); Treas Reg. 1.262-1(b)(7); Wild v. Commr. (1964) 42 T.C. 706. So, those fees that you spend with your attorney to get spousal support from your ex can usually be deducted. Don’t forget, the fees for getting your share of a pension distribution may also be deductible.

Tax planning or advice.

The costs of tax planning or advice are deductible. I.R.C. 212(3). We family lawyers tend to shy away from giving anyone tax advice because we are, for the most part, not tax attorneys or CPAs. There are plenty of sites such as can be found at https://www.taxrise.com/free-tax-consultation/ that offer you a free tax consultation if needed. However, there can be certain occasions as you are planning your divorce or legal separation that your attorney is able to give you some tax advice. (For example, tax advice about dependency exemptions, deductibility of spousal support payments, post-divorce real estate transfers, etc.) When that happens, the associated fees can be deductible.

Capitalize.

Even if the fees for your divorce lawyer aren’t deductible, expenses can often be capitalized. Serianni v. Commissioner (11 Cir 1985) 765 F.2d 1051, 1985 CFLR 2892. Talk to your CPA about how this can be done.

Below the line.

Now these aren’t the greatest of deductions because they are below the line. But every little bit helps… right?

Talk to your lawyer early!

If you are interested in deducting some of your legal fees on your taxes, it is important that you have a conversation with your family law attorney early so that (s)he knows to keep track of your fees and what portions may be deductible. Typically, your attorney can give you a letter at the end of the year indicating what portion of your fees was, for example, associated with the collection of alimony. Usually, this so-called “allocation letter” sent by the attorney to the client will suffice as sufficient proof of the deduction to satisfy the IRS. Goldaper v. Commissioner (1977) T.C. Memo. 1977-343, 36 T.C.M. 1381, 1979 AFLTR 1110. However, if your attorney doesn’t know that you will want to claim this deduction, you will put him in the difficult and awkward position of trying to recreate his records. It’s better that he knows from the outset so that (s)he can keep better track.

As with every tax question, it’s a really good idea to talk it over with your CPA. The rules can be complex and there are limitations. However, with a little diligence, you may save some money at tax time.