<?xml version="1.0" encoding="UTF-8"?>
<?xml-stylesheet type="text/xsl" href="/wp-content/themes/feed/atom.xsl"?>
<feed
        xmlns="http://www.w3.org/2005/Atom"
        xmlns:wwe="http://release.wwe.com/atom/1.0"
        xmlns:thr="http://purl.org/syndication/thread/1.0"
        xmlns:taxo="http://purl.org/rss/1.0/modules/taxonomy/"
        xml:lang="en-US"
        xml:base="https://www.dinneenlaw.com/wp-atom.php"
	>
    <title type="text">Law Offices of Steven A. Dinneen P.C.</title>
    <subtitle type="text">Law Offices of Steven A. Dinneen P.C.</subtitle>

    <updated>2026-05-21T14:22:50Z</updated>

    <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com" />
    <id>https://www.dinneenlaw.com/feed/atom/</id>
    <link rel="self" type="application/atom+xml" href="https://www.dinneenlaw.com/feed/atom/?forceByPassCache=0.6060613372677162" />
	
	<generator uri="https://wordpress.org/" version="6.9.4">WordPress</generator>
<icon>/wp-content/uploads/sites/1404471/2019/12/cropped-fav-icon-32x32.jpg</icon>
        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[How California divorces may divide RSUs?]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/05/how-california-divorces-may-divide-rsus/" />
            <id>https://www.dinneenlaw.com/?p=51894</id>
            <updated>2026-05-21T14:22:50Z</updated>
            <published>2026-05-21T14:21:22Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[California law generally treats assets earned during a marriage as community property. This rule often applies to restricted stock units (RSUs), connected to employment. RSUs are shares that employers may offer as part of a compensation package, often with conditions that require an employee to remain with the company for a certain period before the shares fully vest.  When courts…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/05/how-california-divorces-may-divide-rsus/"><![CDATA[California<span style="font-weight: 400;"> law generally treats assets earned during a marriage as community property. This rule often applies to restricted stock units (RSUs), connected to employment. RSUs are shares that employers may offer as part of a compensation package, often with conditions that require an employee to remain with the company for a certain period before the shares fully vest. </span>

<span style="font-weight: 400;">When courts review these assets, the timing of the stock grant may matter just as much as the vesting schedule.</span>
<h2><span style="font-weight: 400;">Why may RSUs count as marital property?</span></h2>
<span style="font-weight: 400;">Some RSUs reward work completed during the marriage. Others encourage continued employment after separation. As a result, courts often examine the employer’s purpose for granting the award.</span>

<span style="font-weight: 400;">Several factors may influence how courts classify RSUs, including:</span>
<ul>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The date the employer granted the RSUs</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The vesting schedule tied to the shares</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The date you and your spouse separated</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The purpose of the award under the employment agreement</span></li>
</ul>
<span style="font-weight: 400;">Many stock awards vest over several years, so part of the RSUs may qualify as marital property while another portion may remain separate property.</span>
<h2><span style="font-weight: 400;">How courts may divide unvested RSUs?</span></h2>
<span style="font-weight: 400;">Unvested RSUs can create additional challenges because the employee spouse does not yet fully own the shares. To address this issue, California courts often apply time based formulas to determine what percentage of the stock may qualify as community property.</span>

<span style="font-weight: 400;">These formulas often compare:</span>
<ul>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The amount of time worked during the marriage</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The amount of time worked after separation</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The total vesting period required by the employer</span></li>
</ul>
<span style="font-weight: 400;">This calculation may help determine the portion of the asset that belongs to each spouse. In some cases, courts may delay distribution until the shares officially vest. Courts often rely on </span><a href="https://case-law.vlex.com/vid/marriage-of-hug-in-891746810" target="_blank" rel="noopener noreferrer" data-wpel-link="external"><span style="font-weight: 400;">established family law formulas</span></a><span style="font-weight: 400;"> when stock awards overlap both the marriage and the post separation employment period.</span>
<h2><span style="font-weight: 400;">Why valuation and taxes may matter?</span></h2>
<span style="font-weight: 400;">The value of RSUs can change over time as stock prices rise or fall. In addition, taxes may reduce the final amount you receive after the shares vest. Because of these factors, accurate valuation may play an important role during property division discussions.</span>

<span style="font-weight: 400;">To better understand the value of the stock awards, you may need to review employment contracts, executive compensation plans and vesting schedules. These records may help clarify how the RSUs fit into the larger marital estate and how courts could approach the division process..</span>
<h2><span style="font-weight: 400;">Understanding the final division process</span></h2>
<a href="https://www.dinneenlaw.com/divorce/division-of-property/" data-wpel-link="internal"><span style="font-weight: 400;">Dividing RSUs in a California divorce</span></a><span style="font-weight: 400;"> rarely follows a simple 50/50 split. The grant date, vesting timeline and purpose behind the award may all influence the outcome. A careful review of your financial records may help you better understand how California courts could treat these assets during divorce proceedings.</span>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[5 signs that a family’s custody order is not working well]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/05/5-signs-that-a-familys-custody-order-is-not-working-well/" />
            <id>https://www.dinneenlaw.com/?p=51892</id>
            <updated>2026-05-18T18:00:02Z</updated>
            <published>2026-05-18T18:00:02Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Custody orders outline the schedule for parents sharing custody. They help guide co-parenting and should center the best interests of the children. Frequently, parents can maintain the same custody arrangement for years so long as they adhere to the schedule and communicate effectively with one another when a change is necessary. Occasionally, the current schedule creates conflict or excessive stress.…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/05/5-signs-that-a-familys-custody-order-is-not-working-well/"><![CDATA[Custody orders outline the schedule for parents sharing custody. They help guide co-parenting and should center the best interests of the children. Frequently, parents can maintain the same custody arrangement for years so long as they adhere to the schedule and communicate effectively with one another when a change is necessary.

Occasionally, the current schedule creates conflict or excessive stress. Parents may need to go back to court to modify the custody order to ensure that their arrangements uphold the best interests of their children.

What are some of the warning signs that a custody order has become problematic?
<h2>1. Emotional withdrawal</h2>
Children stressed by their family situations sometimes close themselves off from their parents, siblings or friends. They may spend more time on their phone or in their rooms. Especially when social withdrawal occurs specifically while they are with one parent or immediately after custody exchanges, parents may need to revisit their schedule.
<h2>2. Declining grades</h2>
A noticeable drop in academic performance is an early warning sign of a negative change in a young adult’s mental health. When children struggle at school or stop participating in preferred activities, such as sports or theater, those changes may be due to intense negative responses to stressful situations.
<h2>3. Consistent scheduling complications</h2>
Stability and predictability are key for a child's ability to adapt to new situations and to get to sleep on time. If parents have to constantly adjust the household schedule, that lack of stability can be harmful for the children and their rest.
<h2>4. Regular parental conflicts</h2>
Parents may find themselves arguing whenever they need to adjust the custody schedule or communicate about the children with one another. When shared custody triggers repeated conflicts, the disputes between parents <a href="https://www.psychiatrictimes.com/view/children-high-conflict-divorce-face-many-challenges" target="_blank" rel="noopener noreferrer" data-wpel-link="external">can prove highly damaging</a> for the children and the family.
<h2>5. Children returning dirty or injured</h2>
In some cases, one parent truly cannot meet the needs of the children effectively. They might even become abusive or aggressive towards them. If a parent doesn't consistently meet the needs of children while they are in their care, reducing their overnight time with the children may be beneficial.

Parents in California can modify custody by reaching new terms together and submitting paperwork together to request an update of their existing order. Both parents have the right to petition the courts to review and update the custody order. They must explain to the courts why the proposed changes are in the best interests of the children when there is a dispute about a modification.

Going back to court to pursue a<a href="/child-custody/" target="_blank" rel="noopener" data-wpel-link="internal"> custody modification</a> can reduce parental stress and conflicts. It can also affect the emotional stability and development of the children. Parents who share custody may need to take action to ensure their custody orders continue to meet their children's needs.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[Unique considerations for high-net-worth child custody cases]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/05/unique-considerations-for-high-net-worth-child-custody-cases/" />
            <id>https://www.dinneenlaw.com/?p=51890</id>
            <updated>2026-05-12T13:04:06Z</updated>
            <published>2026-05-12T13:04:06Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Creating a parenting plan is a challenge for any parents who are splitting up; however, the challenges often increase when the parents have a high net worth. These divorces usually have issues that go beyond just a standard parenting schedule.  The core question in these cases is still what’s in the child’s best interest. This may involve more details that…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/05/unique-considerations-for-high-net-worth-child-custody-cases/"><![CDATA[<span style="font-weight: 400">Creating a parenting plan is a challenge for any parents who are splitting up; however, the challenges often increase when the parents have a high net worth. These divorces usually have issues that go beyond just a standard parenting schedule. </span>

<span style="font-weight: 400">The core question in these cases is still </span><a href="https://selfhelp.courts.ca.gov/child-custody" data-wpel-link="external" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400">what’s in the child’s best interest</span></a><span style="font-weight: 400">. This may involve more details that are harder to unwind. </span>
<h2><span style="font-weight: 400">Lifestyle choices affect custody planning</span></h2>
<span style="font-weight: 400">In high-net-worth cases, issues related to private schools, tutors, household staff and international travel may need to be addressed. Security concerns and intense work schedules may also be factors. As parents go over all these matters, they should focus on providing stability, safety and love for the children. </span>

<span style="font-weight: 400">School is often a major source of stability and support for children. Private schooling is common for children who have parents with a high net worth. This can become a source of contention if the parents can’t agree about tuition, transportation or the school the children will attend. </span>

<span style="font-weight: 400">Another issue that’s often present in these divorces is household staff, including the child’s nanny. Determining how to handle the nanny can be challenging, so talking with the nanny is critical. In some cases, the nanny may go back and forth between homes with the children. The parents have to determine who will pay for the nanny and how things like time off and other contractual obligations will be handled. </span>
<h2><span style="font-weight: 400">Financial aspects of high-net-worth child custody</span></h2>
<span style="font-weight: 400">High-net-worth child custody often comes with considerable financial considerations. Child support, extracurricular activities, insurance, school fees and other expenses will all need to be covered. These should be covered in a written order so there’s no disagreement about who has to pay what expenses. </span>

<span style="font-weight: 400">Outlining a </span><a href="https://www.dinneenlaw.com/child-custody/" data-wpel-link="internal"><span style="font-weight: 400">parenting plan</span></a><span style="font-weight: 400"> can be challenging in these cases because of the specific factors that must be covered. Working with someone who’s familiar with these matters may be beneficial since they can assist you with determining how to set everything up so the agreements are clear and legally enforceable.</span>

&nbsp;]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[How can you protect your business in a California divorce?]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/05/how-can-you-protect-your-business-in-a-california-divorce/" />
            <id>https://www.dinneenlaw.com/?p=51887</id>
            <updated>2026-05-06T12:38:54Z</updated>
            <published>2026-05-06T12:32:28Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[When a marriage ends in California, business ownership often becomes a central part of the property division process. California follows community property rules, so the timing of when you acquired assets and how they grew during the marriage often plays an important role in how the court divides them. What is the community property presumption? California law sets a baseline…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/05/how-can-you-protect-your-business-in-a-california-divorce/"><![CDATA[When<span style="font-weight: 400;"> a marriage ends in California, business ownership often becomes a central part of the property division process. California follows community property rules, so the timing of when you acquired assets and how they grew during the marriage often plays an important role in how the court divides them.</span>
<h2><span style="font-weight: 400;">What is the community property presumption?</span></h2>
<span style="font-weight: 400;">California law sets a baseline for dividing property. Under </span><a href="https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FAM&amp;sectionNum=760." target="_blank" rel="noopener noreferrer" data-wpel-link="external"><span style="font-weight: 400;">California Family Code</span></a><span style="font-weight: 400;">, the law generally treats assets acquired during marriage as community property. In simple terms, a business started or expanded during marriage may give a spouse a possible claim to part of its value.</span>

<span style="font-weight: 400;">Courts often review the full history of the business. This review may include when the business started, how it operated day to day and how each spouse contributed to its success or stability.</span>
<h2><span style="font-weight: 400;">How do courts divide business value?</span></h2>
<span style="font-weight: 400;">A business that existed before marriage does not always remain fully separate. Courts often look at how much the value changed during the marriage and what caused that change.</span>

<span style="font-weight: 400;">Courts often rely on methods that sort business growth into clear categories. The focus often centers on two main factors:</span>
<ul>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Growth tied to personal effort, such as management decisions or daily work</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Growth tied to outside factors, such as market trends or added capital</span></li>
</ul>
<span style="font-weight: 400;">These factors may lead parties to treat different parts of the same business in different ways during property discussions.</span>
<h2><span style="font-weight: 400;">Why does the date of separation matter?</span></h2>
<span style="font-weight: 400;">The date of separation often plays an important role in property division. Under </span><a href="https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FAM&amp;sectionNum=771." target="_blank" rel="noopener noreferrer" data-wpel-link="external"><span style="font-weight: 400;">California law</span></a><span style="font-weight: 400;">, income earned after separation usually counts as separate property.</span>

<span style="font-weight: 400;">Clear records of the separation date may help reduce confusion about which earnings belong to the marriage and which belong to one spouse. Accurate financial records around that time can also support clearer lines around business income.</span>
<h2><span style="font-weight: 400;">How can you separate personal and business finances?</span></h2>
<span style="font-weight: 400;">Strong financial habits may help reduce questions about ownership or value. Early planning can also make it easier to show how the business operated during the marriage.</span>
<ul>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Maintain separate accounts for business and personal funds to help avoid mixing money</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Keep steady financial records that track income, expenses and growth over time</span></li>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Use written agreements, such as prenuptial or postnuptial arrangements, to outline ownership terms</span></li>
</ul>
<span style="font-weight: 400;">These steps may help clarify what belongs to the business and what may fall within marital property.</span>
<h2><span style="font-weight: 400;">Final considerations</span></h2>
<span style="font-weight: 400;">A California </span><a href="https://www.dinneenlaw.com/divorce/high-net-worth-divorce/" data-wpel-link="internal"><span style="font-weight: 400;">high net worth divorce</span></a><span style="font-weight: 400;"> often requires balancing business stability with property division rules. Each situation tends to depend on its own facts, especially financial records that show ownership history, contributions and timing of growth.</span>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[Common warning signs of hidden assets during a divorce]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/05/common-warning-signs-of-hidden-assets-during-a-divorce/" />
            <id>https://www.dinneenlaw.com/?p=51885</id>
            <updated>2026-05-02T23:47:21Z</updated>
            <published>2026-05-02T23:47:21Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Spouses have a right to a fair share of their marital estate and a responsibility to help address marital debts. Unfortunately, some people resent the obligation to fairly divide marital resources. They may look for ways to control or manipulate the outcome of the property division process. Hiding assets from a spouse and providing inaccurate disclosures to the courts during…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/05/common-warning-signs-of-hidden-assets-during-a-divorce/"><![CDATA[Spouses have a right to a fair share of their marital estate and a responsibility to help address marital debts. Unfortunately, some people resent the obligation to fairly divide marital resources.

They may look for ways to control or manipulate the outcome of the property division process. Hiding assets from a spouse and providing inaccurate disclosures to the courts during a divorce are common strategies used to gain an economic advantage that undermines the state's property division statute.

What warning sign should people look for when preparing for divorce?
<h2>Red flags for hidden assets</h2>
A lack of financial transparency is one of the most common indicators of attempts to hide assets or divert income. Other times, one spouse might notice substantial transfers from joint accounts with no reasonable explanation.

Lifestyle inconsistencies can also be indicative of attempts to hide assets. One spouse might suddenly drastically reduce their spending on routine household expenses, such as groceries, while income levels and recurring bills remain roughly the same. They may have begun diverting capital to a hidden account or establishing a secret stash of cash by making withdrawals when shopping with their debit card.

Unusual business activity, such as deferring payment from clients or transferring ownership of company resources, can also be warning signs of attempts to hide assets.
<h2>How do spouses hide assets?</h2>
In some cases, hiding assets involves intercepting income to <a href="https://www.forbes.com/sites/catherineschnaubelt/2019/03/08/finding-hidden-assets-in-a-divorce/" data-wpel-link="external" target="_blank" rel="noopener noreferrer">fund a hidden bank account</a>. Some people go so far as to acquire cryptocurrency and other digital assets that are difficult to track as a means of obfuscating the full extent of the marital estate.

Physically removing assets from the marital home or a business that is technically marital property can be a way to hide resources. Intentionally undervaluing assets, sometimes by tens of thousands of dollars or more, is another way to manipulate the outcome of the property division process.

Those who believe their spouse has engaged in attempts to hide assets or may be likely to, given their personality and previous behavior, may need assistance in the early stages of divorce. They can work with an attorney to conduct a forensic review of household financial records and economic disclosures. They can work with outside professionals to value resources such as business holdings, real estate and collections.

In scenarios where there are suspicions of attempts at financial manipulation, settling outside of court or in mediation can be risky. Litigated property division proceedings often protect spouses through formal financial discovery rules.

Discussing concerns about hidden assets with a divorce attorney can help people identify red flags and locate hidden marital income or property. A thorough financial review can protect people from misconduct that might otherwise deprive them of their fair share of the marital estate in a <a href="https://www.dinneenlaw.com/divorce/high-net-worth-divorce/" data-wpel-link="internal">high-asset divorce</a>.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[How to avoid capital gains tax when selling a home in California]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/03/how-to-avoid-capital-gains-tax-when-selling-a-home-in-california/" />
            <id>https://www.dinneenlaw.com/?p=51870</id>
            <updated>2026-03-13T13:27:58Z</updated>
            <published>2026-03-13T13:27:58Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[There is a tax rule that may allow you to exclude profit from the sale of your primary residence — the home sale exclusion rule under IRS section 121. If certain requirements are met, some or all of the gain may not be taxed. Here is how that works. The home must be your principal residence The rule applies only…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/03/how-to-avoid-capital-gains-tax-when-selling-a-home-in-california/"><![CDATA[There is a tax rule that may allow you to exclude profit from the sale of your primary residence — the home sale exclusion rule under IRS section 121. If certain requirements are met, some or all of the gain may not be taxed. Here is how that works.
<h2>The home must be your principal residence</h2>
The rule applies only when you sell the home that served as your main place of living, or your principal residence. It is the property you actually live in most of the time, rather than a home held mainly as a rental or investment. If the property was mainly used to generate rental income or held for investment purposes, <a href="https://www.ftb.ca.gov/file/personal/income-types/income-from-the-sale-of-your-home.html" target="_blank" rel="noopener noreferrer" data-wpel-link="external">the exclusion generally does not apply</a>.
<h2>You must have owned and lived in the home long enough</h2>
The law also looks at how long you owned and lived in the property before selling it. In most situations, you must have owned the home for at least two years and used it as your principal residence for at least two years during the five years before the sale. The time you owned the home and the time you lived in it do not have to overlap, but both must fall within that five-year period.
<h2>Only part of the gain can be excluded</h2>
The exclusion protects gains only up to certain limits. If you file taxes as a single homeowner, you can generally exclude up to $250,000 of profit from the sale. Married couples filing jointly may exclude up to $500,000. If the gain from the sale exceeds those amounts, the portion above the limit may still be subject to capital gains tax.
<h2>You can lose the exclusion in certain situations</h2>
The exclusion is not available in every home sale. For example, you generally cannot use the rule if you already claimed the home sale exclusion on another property within the previous two years. In addition, if the profit from the sale goes beyond the exclusion limits, the remaining gain may still be taxable even though part of the sale qualifies for the exclusion.
<h2>Before you sell</h2>
If you expect a large gain, it helps to <a href="https://www.dinneenlaw.com/divorce/complex-property-issues/" target="_blank" rel="noopener" data-wpel-link="internal">review the rules before listing the property</a>. Small details about how long you lived in the home or how the property was used can affect whether the exclusion applies. Taking a closer look at your situation before the sale can help you avoid unexpected tax consequences later.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[Tax issues that complicate divorce in California]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/03/tax-issues-that-complicate-divorce-in-california/" />
            <id>https://www.dinneenlaw.com/?p=51868</id>
            <updated>2026-03-10T11:37:00Z</updated>
            <published>2026-03-10T11:37:00Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Divorce can create tax consequences that many people do not expect, especially in California, where community property laws require a 50/50 division of marital assets. When large assets are involved, tax planning should be an essential part of the process. Here are several tax issues that often complicate divorce in California. Capital gains & property If you and your spouse…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/03/tax-issues-that-complicate-divorce-in-california/"><![CDATA[Divorce can create tax consequences that many people do not expect, especially in California, where community property laws require a 50/50 division of marital assets. When large assets are involved, tax planning should be an essential part of the process. Here are several tax issues that often complicate divorce in California.
<h2>Capital gains &amp; property</h2>
If you and your spouse own assets that have increased in value, the person who keeps the asset may later face tax obligations when selling it.

For example, imagine you keep a house purchased for $500,000 that is now worth $1.2 million. If you sell the property later, the gain may trigger capital gains taxes based on that increase in value. Two assets that look equal during division may carry very different tax consequences later.
<h2>Spousal support (Alimony)</h2>
Under current federal law, you generally <a href="https://www.irs.gov/taxtopics/tc452#:~:text=The%20payer%20spouse%20can%27t%20deduct%20alimony%20or%20separate%20maintenance%20payments%20made%20under%20a%20divorce%20or%20separation%20agreement%20(1)%20executed%20after%202018%2C" target="_blank" rel="noopener noreferrer" data-wpel-link="external">cannot deduct alimony payments</a>, and the person receiving support usually does not report the payments as taxable income. Because of that change, support negotiations often focus on the actual cash flow between spouses rather than tax deductions.
<h2>Retirement accounts &amp; QDROs</h2>
Dividing retirement accounts usually requires a Qualified Domestic Relations Order, commonly called a QDRO. This order allows retirement funds to transfer between spouses without triggering early withdrawal taxes or penalties.

Without a properly structured QDRO, withdrawing money from a retirement account during divorce could create unnecessary taxes and penalties.
<h2>Stock options and RSUs</h2>
Stock options and restricted stock units can complicate divorce because their value often depends on vesting schedules and future employment. Some shares may not vest until after the divorce, which can raise questions about how much belongs to each spouse.

Taxes may also apply when the shares vest or when you sell them, which makes timing an important factor when dividing these assets.
<h2>Protect your financial interests</h2>
Tax consequences can change <a href="https://www.dinneenlaw.com/divorce/high-net-worth-divorce/" target="_blank" rel="noopener" data-wpel-link="internal">the real value of the assets</a> you receive in a divorce. If your case involves real estate, retirement funds or equity compensation, an attorney can help you review how these tax issues may affect your financial outcome. Clear guidance can help you make informed decisions while you move through the divorce process.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[Protecting your investment portfolio during divorce]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/03/protecting-your-investment-portfolio-during-divorce/" />
            <id>https://www.dinneenlaw.com/?p=51865</id>
            <updated>2026-03-04T15:32:59Z</updated>
            <published>2026-03-04T15:32:59Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Divorcing couples often worry the most about dividing assets fairly. While regular bank accounts usually split easily, you can’t really say the same for investment assets. In the Bay Area, where many people earn company stocks as part of their pay, understanding how California values and divides various investments during divorce can protect your financial future. Tangling up marital and…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/03/protecting-your-investment-portfolio-during-divorce/"><![CDATA[Divorcing couples often worry the most about dividing assets fairly. While regular bank accounts usually split easily, you can’t really say the same for investment assets.

In the Bay Area, where many people earn company stocks as part of their pay, understanding how California values and divides various investments during divorce can protect your financial future.
<h2>Tangling up marital and separate assets</h2>
Generally, California law considers investments you bring into your marriage as separate property. But your actions during the marriage can potentially convert them to community property.

One example of this is adding your spouse to investment accounts. Another is using marital earnings to grow pre-marital investments.

If your investment falls under marital property, your options to divide the assets include:
<ul>
 	<li>Buying out your spouse’s share</li>
 	<li>Offsetting the value of the investment with another marital asset</li>
 	<li>Selling the investment and splitting the proceeds</li>
</ul>
Determining the value of your investment before dividing it up is a different challenge entirely.
<h2>Stock options count while not yet exercisable</h2>
Stock options let you buy company stock at a set price in the future. In California, options earned during marriage belong to both spouses, even if you can't use them yet.

Basically, courts look at when you received the options, not when you can actually use them. They will use a formula to figure out how much belongs to the marriage and how much might be your separate property.

Additionally, you'll eventually pay taxes when you use these options, which affects their true value.
<h2>RSUs may depend on the vesting period</h2>
Restricted Stock Units (RSUs) are promises from your company to give you actual stock after a vesting period or a certain amount of time working. RSUs credited and vested while married count as marital property.

For RSUs that you received before the wedding but vested during marriage, the courts generally use a time-based formula to get the percentage of the investment that counts as marital property.
<h2>Retirement accounts may need special handling</h2>
Your 401(k), pension and other retirement savings may need <a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-qdro-qualified-domestic-relations-order" target="_blank" rel="noopener noreferrer" data-wpel-link="external">special court orders to split up.</a>
Courts use QDROs or Qualified Domestic Relations Orders for 401(k) and similar accounts. This way, you won’t trigger any tax penalties. Individual retirement accounts are simpler in comparison and only need a “transfer incident to divorce”
<h2>Startup equity creates valuation headaches</h2>
Stock in private startups might be similar to stock options but are a little harder to divide. After all, unlike public companies, private company stock has no clear market price.

Different types of shares, future funding events and vesting rules all affect the value. You might need experts to estimate what your startup equity is actually worth.

Additionally, the company might even restrict whether you can transfer shares during divorce, creating extra complications.
<h2>Protecting your financial future during divorce</h2>
Working with experienced professionals helps ensure <a href="https://www.dinneenlaw.com/divorce/complex-property-issues/" target="_blank" rel="noopener" data-wpel-link="internal">fair division of complex assets</a> during divorce. Lawyers who understand investments, stock compensation and California property law may help spot problems before they happen.

Taking time to properly handle investment division creates better financial stability for both parties after the split.]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[The role of prenuptial agreements in high-net-worth marriages]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/01/the-role-of-prenuptial-agreements-in-high-net-worth-marriages/" />
            <id>https://www.dinneenlaw.com/?p=51840</id>
            <updated>2026-01-16T04:08:29Z</updated>
            <published>2026-01-16T04:08:29Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[In high-net-worth marriages, business interests, investment portfolios, real estate holdings and family wealth can all impact the relationships between spouses. And, understandably, if a marriage ends, these challenges can impact the ways in which the divorce process plays out – and ultimately resolves.  Prenuptial agreements often help to manage these risks by setting clear expectations and protecting assets before marriage…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/01/the-role-of-prenuptial-agreements-in-high-net-worth-marriages/"><![CDATA[<span style="font-weight: 400">In high-net-worth marriages, business interests, investment portfolios, real estate holdings and family wealth can all impact the relationships between spouses. And, understandably, if a marriage ends, these challenges can impact the ways in which the divorce process plays out – and ultimately resolves. </span>

<a href="https://www.forbes.com/sites/frawleypollock/2019/12/09/what-you-need-to-know-about-prenups/" data-wpel-link="external" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400">Prenuptial agreements</span></a><span style="font-weight: 400"> often help to manage these risks by setting clear expectations and protecting assets before marriage begins. Having clear expectations in place can help to build stronger marriages. Making this effort proactively can also help to streamline a fair divorce process if a marriage does not work out. </span>
<h2><span style="font-weight: 400">The basics of marital agreements and their uses</span></h2>
<span style="font-weight: 400">High-net-worth individuals often enter marriage with substantial separate property, such as businesses, inherited wealth and/or pre-marital investments. A well-drafted prenup can clearly define what remains separate property and how future appreciation, income or reinvestment will be treated. This clarity can prevent disputes and expensive litigation if the marriage dissolves.</span>

<span style="font-weight: 400">Prenups can also help to address business continuity. For entrepreneurs and executives, divorce can threaten control of a company or otherwise disrupt operations. A prenuptial agreement can specify how ownership interests will be handled, limit claims against a business and better ensure proper coordination with operating or shareholder agreements. </span>

<span style="font-weight: 400">It is additionally worth noting that in California, spouses generally have rights to spousal support, but a prenup can define or waive support within legal limits. For high-net-worth couples, this allows for more predictable outcomes and can reduce the risk of prolonged disputes over lifestyle, earning capacity and standard of living.</span>

<span style="font-weight: 400">Prenuptial agreements can also protect family wealth and legacy planning. Families may want to ensure that certain assets remain within bloodlines or are preserved for children from prior relationships. A prenup can work alongside estate plans and trusts to support these goals, particularly in blended family situations.</span>

<span style="font-weight: 400">For a prenuptial agreement to be enforceable in California, specific legal requirements must be met. Both parties must fully disclose assets and liabilities, and the agreement must be entered into voluntarily. Each party must have independent legal counsel or explicitly waive that right in writing. The agreement must be fair at the time of execution, and it cannot be unconscionable at the time of enforcement. The agreement must be signed well before the wedding, allowing adequate time for review without pressure.</span>

<span style="font-weight: 400">Prenuptial agreements are not about anticipating divorce. They are about transparency, planning and a reflection of mutual understanding. In high-net-worth marriages, they can reduce conflict, protect complex assets and provide greater peace of mind. Working with an </span><a href="https://www.dinneenlaw.com/family-law/premarital-agreements/" data-wpel-link="internal"><span style="font-weight: 400">experienced legal team</span></a><span style="font-weight: 400"> can help to better ensure that a particular prenup is tailored to a couple’s financial realities and drafted to meet strict enforcement standards, safeguarding both the relationship at issue and the long-term interests of each spouse. </span>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>On Behalf of Law Offices of Steven A. Dinneen P.C.</name>
				            </author>
            <title type="html"><![CDATA[High-asset divorces: How mediation and collaborative law can help]]></title>
            <link rel="alternate" type="text/html" href="https://www.dinneenlaw.com/blog/2026/01/high-asset-divorces-how-mediation-and-collaborative-law-can-help/" />
            <id>https://www.dinneenlaw.com/?p=51837</id>
            <updated>2026-01-11T12:33:08Z</updated>
            <published>2026-01-11T12:33:08Z</published>
					<taxo:topics><![CDATA[-]]></taxo:topics>
            <summary type="html"><![CDATA[Divorce can easily become contentious. In some cases, spouses with significant personal holdings end up embroiled in divorce litigation for months while trying to settle disputes about property division and financial support. While disagreements and intense emotions are common, spouses do not need to battle against one another in court. People preparing for high-asset divorces may want to consider working…]]></summary>
			                <content type="html" xml:base="https://www.dinneenlaw.com/blog/2026/01/high-asset-divorces-how-mediation-and-collaborative-law-can-help/"><![CDATA[Divorce can easily become contentious. In some cases, spouses with significant personal holdings end up embroiled in divorce litigation for months while trying to settle disputes about property division and financial support.

While disagreements and intense emotions are common, spouses do not need to battle against one another in court. People preparing for high-asset divorces may want to consider working collaboratively with one another and possibly attending mediation. Doing so can offer a host of practical benefits.
<h2>What are collaborative law and mediation?</h2>
Collaborative law, also known as <a href="https://www.psychologytoday.com/us/blog/a-better-divorce/202303/why-consider-a-collaborative-divorce" data-wpel-link="external" target="_blank" rel="noopener noreferrer">collaborative divorce</a>, requires a commitment to work with one another instead of litigating. Spouses sign an agreement promising to settle all of their disagreements outside of court.

Mediation is a form of alternative dispute resolution where people sit down with a neutral third party to work through the agreements and find a mutually-agreeable solution. Both collaborative divorce and mediation occur outside of the court system, which can make them particularly beneficial for couples facing a high-asset divorce.
<h2>The benefits of collaborative divorce</h2>
Spouses who agree to settle their disagreements outside of court, possibly by attending mediation with one another, can derive numerous benefits. First and foremost, they protect their privacy. In a litigated divorce, disclosures about financial matters and accusations of misconduct typically become public record. Anyone who attends court hearings or requests transcripts from the courts may learn very private information about the spouses.

Collaborative divorce occurs outside of the legal system, allowing spouses to discuss things confidentially. Mediation sessions, in particular, have statutory protection that makes the records of the session confidential. Only the final agreement becomes part of the court proceedings and therefore public record.

Collaborative law and mediation are also beneficial because they give spouses more control over the process. They do not need to let a judge decide what should happen with their property or how to share custody of their children. Provided that they both agree to compromise in some areas, each spouse can potentially secure the terms that matter most to them.

While high-asset couples may have resources that they can use to pay for divorce, the decision to collaborate with one another instead of litigating can help them control the overall expense of the divorce process. Even though they may need to pay for outside services, reducing the amount of time spent in court can limit the total costs of the divorce.

Particularly when spouses worry about their privacy or must maintain an amicable relationship due to shared children or joint business ventures, collaborative divorce and mediation can be an excellent alternative to traditional divorce litigation. Discussing options with a licensed divorce attorney can help spouses to choose the best path forward as they prepare for a <a href="https://www.dinneenlaw.com/divorce/" data-wpel-link="internal">high-asset divorce</a>.]]></content>
						        </entry>
	</feed>