What You Need to Know About Divorce California 10-Year Rule

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Did you know that according to Forbes.com, couples spend an average of $7,000 to dissolve their union? Apart from the emotional toll of divorce, couples also need to face the financial aspects of it.

One of the key areas of divorce is the concept of alimony. Alimony, or spousal support, is not always automatically awarded after a divorce, but when necessary, it is awarded based on each spouse’s income, financial assets, and how long they were married.

California’s 10-Year Rule for Divorce is one example of state legislation that tackles long-term or permanent alimony in “lengthy” or “long-term” marriages (usually over 10 years). The 10-Year Rule is used in determining various aspects of divorce settlements, from spousal support eligibility to asset division.

Understanding the 10-Year Rule is important as it helps you make informed decisions during this hard time.

Importance of the 10-Year Rule

In California, marriages that have lasted for 10 years or more are considered long-term marriages. In long-term marriages, the court may have the authority to award spousal support indefinitely, unlike in short-term marriages, where support is usually granted for a limited duration.

This rule can also influence the division of assets and debts between the spouses. In long-term marriages, there’s often a complex mix of finances, properties, and investments to sort out during the divorce.

Spousal support lawyer Blair E. Cody III says it is worth noting that other states like NC have special rules when it comes to alimony. For example, if there was marital misconduct within the marriage, the court will consider the behavior as grounds for alimony.

Marital misconducts like negative behavior or cruel treatment by one spouse toward the other, abandonment, life-threatening actions, and humiliating demeanor can be grounds for alimony.

The 10-Year Rule in California can greatly impact the outcome of the divorce settlement and financial obligations of each spouse so you need to have a solid understanding of it if you are in the midst of a divorce.

Eligibility for Spousal Support

While in long-term marriages there is a possibility of getting awarded permanent or long term spousal support, it’s important to keep in mind that in some cases, even short marriages can result in long-term spousal support. The court may be more inclined to award spousal support to one spouse if there’s a significant income gap between both parties.

The standard of living during the marriage, each spouse’s earning capacity, contributions to the household, and the needs of each party are all taken into consideration when deciding on spousal support.

For long-term marriages, a party who is financially dependent on the other may have a stronger claim for spousal support. It’s important to consult with a knowledgeable attorney to understand how the 10-Year Rule could affect one’s eligibility for spousal support in a specific situation.

Impact on Asset Division

For long-term marriages, the division of assets tends to be more balanced due to the concept of community property. California is a community property state, meaning that assets acquired during the marriage are generally split equally between spouses upon divorce.

Asset division may not be as straightforward for short-term marriages. The court will consider factors such as each spouse’s income, contributions to the marriage, and future earning potential when determining how assets should be divided for marriages under 10 years. This means that the asset division may not necessarily result in a 50/50 split.

The 10-Year Rule can help you prepare for the financial aspects of divorce proceedings, especially if you think you are entitled to receive more assets than the other party once the divorce is finalized.

Exceptions to the Rule

Exceptions may apply to the 10-Year Rule in California divorce cases affecting how assets are divided. One exception is when a spouse can prove that a significant portion of the marriage was spent building up a business or investment that greatly increased in value. In such cases, the court may decide to treat the increased value as community property, regardless of the length of the marriage.

Another exception is if one spouse can demonstrate that the other spouse committed domestic violence or fraud during the marriage, it could impact how assets are divided.

A prenuptial agreement that specifies how assets should be divided in the event of a divorce, regardless of the duration of the marriage, is also an exception to the rule. Prenuptial agreements can override the 10-Year Rule and dictate asset division according to the terms agreed upon before marriage.

Future Planning Considerations

It’s important to strategize about how assets acquired during the marriage will be divided in case of a divorce, especially when approaching the 10-year mark in marriage.

One important consideration is the characterization of assets as community property or separate property. Separate property, such as assets owned before the marriage or received as gifts or inheritances during the marriage, isn’t subject to division under California law.

If one has valuable assets or anticipates a significant increase in wealth in the future, a prenuptial agreement or postnuptial agreement may be taken into consideration to protect the assets in the event of a divorce. These agreements can outline how assets should be divided and can provide clarity and protection for both parties. Planning can help safeguard your financial interests and streamline the divorce process if it ever becomes necessary.