How is child support calculated?

In California, child support is calculated using a state-mandated formula that considers both parents' incomes, the percentage of time each parent spends with the child, and any tax liabilities or credits. The calculation also accounts for health insurance expenses, mandatory retirement contributions, and support for children from other relationships. This approach aims to balance the financial contributions of both parents fairly, so that the child's needs are met while considering the financial ability of each parent.

How is property divided in a California divorce?

Property division during a divorce follows the community property law, which means that any assets and debts acquired during the marriage are considered owned equally by both spouses and are divided equally in the divorce. Separate property, which includes assets owned before marriage or acquired as a gift or inheritance during the marriage, generally remains with the original owner. The court aims to ensure a fair and equitable division of all marital assets and debts, taking into account factors such as the economic circumstances of each spouse.

Can spousal support be modified after the divorce is final?

Yes, spousal support can be modified after the divorce is final in California, but certain conditions must be met. Modifications are generally considered if there has been a significant change in circumstances for either party, such as a substantial change in income, unemployment, or a serious health issue. The party seeking the modification needs to file a motion with the court and provide evidence of the change in circumstances. The court will then review the case and decide whether an adjustment to the spousal support is justified.

What is the difference between legal custody and physical custody?

Legal custody refers to a parent's right and responsibility to make significant decisions about a child's health, education, and welfare. This includes decisions about schooling, medical care, and religious upbringing. Physical custody, on the other hand, pertains to where the child lives and with whom. A parent with physical custody has the child living with them for most of the time, though this can be shared in a joint physical custody arrangement where the child spends significant time with both parents. Both types of custody can be awarded jointly or solely, depending on what the court deems is in the best interest of the child.

What can and cannot be included in a prenuptial agreement?

In California, a prenuptial agreement can include provisions for the division of property and assets, the rights and obligations of each spouse regarding property, management of household bills and expenses, and the distribution of property upon separation, divorce, or death. Spousal support terms can also be included but must not be unconscionable at the time of enforcement. However, a prenuptial agreement cannot include terms that affect child custody or child support decisions. These matters are determined by the court based on the child's best interests at the time of the divorce. Additionally, prenuptial agreements cannot contain clauses that promote divorce or violate public policy, such as penalties for gaining weight or stipulations on personal behavior.

Cryptocurrency Division During Divorce

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When you’re getting divorced in California, crypto becomes part of the property division conversation. Unfortunately, it’s not as straightforward as splitting a bank account. Digital assets don’t sit somewhere obvious. They live on decentralized networks, which makes them trickier to track down and value than your standard checking account. Courts treat cryptocurrency as property that needs dividing, but actually doing that requires technical knowledge most people don’t have. California’s a community property state. Assets acquired during marriage get split 50/50 in most cases. Your cryptocurrency falls under that rule if you purchased it with marital funds after you got married. But timing changes everything. Crypto you owned before the wedding stays yours as separate property.

Disclosure Requirements For Digital Assets

California requires complete financial disclosure during divorce. Not partial disclosure. Everything. That includes your cryptocurrency holdings. Every wallet you’ve got. Every exchange account. All those tokens you thought might be easy to overlook. Don’t hide digital assets. Courts view that as fraud, and judges really don’t appreciate spouses who play games during disclosure. The consequences affect not just property division but potentially spousal support calculations too.

Blockchain technology actually makes hiding crypto harder than people think. Each transaction creates a permanent record that forensic accountants can trace. A Manhattan Beach high-net-worth divorce lawyer works with these specialists who know how to follow digital breadcrumbs across networks and platforms.

Valuation Challenges

Cryptocurrency values swing dramatically. You can wake up and find your holdings changed by thousands of dollars overnight. This creates real problems when dividing assets. The court has to pick a specific date for valuation, and that choice matters enormously. Common options include:

Date of separation
Trial date
When you signed the settlement agreement
Some negotiated point in between

Consider what happens if Bitcoin is trading at $60,000 when you separate, but drops to $40,000 by trial. That’s a $20,000 difference affecting both of you. Some couples decide to split the actual tokens instead of converting everything to cash. Both parties then share whatever happens next with the price.

Community Property Vs. Separate Property

Figuring out whether your crypto is community or separate property can get complicated fast. If you bought Bitcoin before marriage with your own money, that’s separate property. Pretty clear. But what if that Bitcoin appreciated significantly during the marriage? Or what if you’ve been actively trading, and somewhere along the way, separate funds got mixed with community funds?

Let’s say you purchased Bitcoin two years before getting married. The original purchase stays yours. But if you traded actively during the marriage and the value grew substantially, courts might consider that appreciation community property. Your original investment remains separate, but the gains could be divided between you and your spouse. Skarin Law Group handles these disputes regularly in high-asset cases.

Finding Hidden Cryptocurrency

Some people try to hide digital assets during divorce. They transfer tokens to wallets their spouse doesn’t know about or move funds to offshore exchanges.

Blockchain technology makes this harder than they realize. Every cryptocurrency transaction leaves a traceable record. Forensic specialists can review your complete exchange history, analyze wallet addresses, track transfers between platforms, and spot patterns that suggest concealment. Courts have broad authority here. Judges can compel full cryptocurrency disclosure and impose real sanctions when they discover hidden assets. You might get a smaller share of the marital estate, your spouse might receive a larger portion of other assets to compensate, and you’ll probably end up paying their attorney fees. The risks far outweigh any temporary advantage.

Tax Implications

Dividing cryptocurrency triggers potential tax consequences you need to think about before finalizing anything. Transferring digital assets directly between spouses during divorce usually qualifies as tax-free under IRS rules. But selling crypto to fund your settlement? That’s a taxable event. Capital gains taxes apply based on the difference between your original purchase price and the sale price.

A Manhattan Beach high-net-worth divorce lawyer should coordinate with tax professionals to structure your division strategically. Sometimes, the way you handle the split makes a significant difference in how much both parties ultimately keep after taxes.

Protecting Your Financial Interests

Cryptocurrency division isn’t something you want to handle without specialized help. You’re dealing with California family law and digital asset management simultaneously. Keep documentation of everything. All transactions, all purchases, all transfers. Work with professionals who actually understand blockchain technology. The decentralized nature of these assets makes hiding them seem possible. But forensic tools keep getting more sophisticated, and courts have seen every trick people try. If you’re holding significant digital assets and facing divorce, you need experienced legal counsel who’s navigated these issues before and understands both the technical challenges and the legal framework.