Summary Dissolution property question

[barnabybquentin]

What is the name of your state (only U.S. law)? CA

In my last thread it was determined that my wife and I do not qualify for an annulment, so we are looking at the seemingly easiest type of divorce: summary dissolution.

We qualify for the following: <5 years marriage (~1.2), have no children, do not own real estate, agree for no spousal support, agree how to split our marital assets equally, have less than $4,000 marital debt.

We do NOT qualify for the following (currently): have less than $36,000 worth of property. I have about $40,000 banked/invested and she has about $5000, so we are $9,000 over the limit (not considering possessions yet).

However, since we need to split things equally anyways, can we do (legal) things to bring our amount down below $36,000 before filing? For example, she has pre-marital student loan debt of roughly $10,000 remaining. Can I pay that off before filing in order to reduce our total net worth? In this same situation, would the judge (whoever actually reviews these) look askance at a split on paper that is not 50/50 or does he/she just let whatever is written go as long as both parties authorize it? Obviously I would not want to gift her $10k and then still split the remaining amount 50/50 immediately after. That would be giving her 25 and myself 15.

Is this shady or illegal?What is the name of your state (only U.S. law)?

 

[mistoffolees]

What is the name of your state (only U.S. law)? CA

In my last thread it was determined that my wife and I do not qualify for an annulment, so we are looking at the seemingly easiest type of divorce: summary dissolution.

We qualify for the following: <5 years marriage (~1.2), have no children, do not own real estate, agree for no spousal support, agree how to split our marital assets equally, have less than $4,000 marital debt.

We do NOT qualify for the following (currently): have less than $36,000 worth of property. I have about $40,000 banked/invested and she has about $5000, so we are $9,000 over the limit (not considering possessions yet).

However, since we need to split things equally anyways, can we do (legal) things to bring our amount down below $36,000 before filing? For example, she has pre-marital student loan debt of roughly $10,000 remaining. Can I pay that off before filing in order to reduce our total net worth? In this same situation, would the judge (whoever actually reviews these) look askance at a split on paper that is not 50/50 or does he/she just let whatever is written go as long as both parties authorize it? Obviously I would not want to gift her $10k and then still split the remaining amount 50/50 immediately after. That would be giving her 25 and myself 15.

Is this shady or illegal?What is the name of your state (only U.S. law)?

You are married. You can spend your money however you wish. If you want to pay off student loan debt with your assets, there is certainly nothing wrong with that.

Someone else will have to answer the question of whether the judge would allow it or if it would create a problem because I don't know.

If you agree on everything, it may not be that expensive to get an attorney to file the appropriate divorce paperwork. If you end up fighting, of course, it could cost a lot of money.

Is the piece of mind worth the $5 K (you get $15 K vs. $20 K). Only you can answer that.

 

[LdiJ]

What is the name of your state (only U.S. law)? CA

In my last thread it was determined that my wife and I do not qualify for an annulment, so we are looking at the seemingly easiest type of divorce: summary dissolution.

We qualify for the following: <5 years marriage (~1.2), have no children, do not own real estate, agree for no spousal support, agree how to split our marital assets equally, have less than $4,000 marital debt.

We do NOT qualify for the following (currently): have less than $36,000 worth of property. I have about $40,000 banked/invested and she has about $5000, so we are $9,000 over the limit (not considering possessions yet).

However, since we need to split things equally anyways, can we do (legal) things to bring our amount down below $36,000 before filing? For example, she has pre-marital student loan debt of roughly $10,000 remaining. Can I pay that off before filing in order to reduce our total net worth? In this same situation, would the judge (whoever actually reviews these) look askance at a split on paper that is not 50/50 or does he/she just let whatever is written go as long as both parties authorize it? Obviously I would not want to gift her $10k and then still split the remaining amount 50/50 immediately after. That would be giving her 25 and myself 15.

Is this shady or illegal?What is the name of your state (only U.S. law)?

How much of that 40k did you have before you got married? Have you kept that 40k in an account with only your name on it? Its quite possible that a good chunk of that 40k is NOT marital property, and therefore NOT subject to division.

 

[barnabybquentin]

How much of that 40k did you have before you got married? Have you kept that 40k in an account with only your name on it? Its quite possible that a good chunk of that 40k is NOT marital property, and therefore NOT subject to division.

All of it was earned after the marriage took place and is in an account with only my name on it. We kept separate accounts. We married right after I finished my degree and I found a job a few months later.

If you agree on everything, it may not be that expensive to get an attorney to file the appropriate divorce paperwork. If you end up fighting, of course, it could cost a lot of money.

Isn't the purpose of a summary dissolution that people agree, want to avoid court/lawyers, and want to be finished as quickly as possible? Or is an ordinary divorce quicker (SD is 6 months minimum)? I guess I need to research some more.

 

[LdiJ]

All of it was earned after the marriage took place and is in an account with only my name on it. We kept separate accounts. We married right after I finished my degree and I found a job a few months later.



Isn't the purpose of a summary dissolution that people agree, want to avoid court/lawyers, and want to be finished as quickly as possible? Or is an ordinary divorce quicker (SD is 6 months minimum)? I guess I need to research some more.

Well, if it was all earned after the marriage took place, then yes, its all a marital asset.

You can agree on everything and still end up with a quick divorce, even if its not a summary dissolution. The key is to submit a comprehensive, signed agreement with your petition for divorce.

 

[CourtClerk]

All of it was earned after the marriage took place and is in an account with only my name on it.

Then you do not qualify for a summary dissolution, however, if you can agree with everything, then file for a standard divorce and file a MSA.

 

[barnabybquentin]

Then you do not qualify for a summary dissolution, however, if you can agree with everything, then file for a standard divorce and file a MSA.

The OP stated that I know that my casholas are marital property. The question was "can I do things prior to filing to bring our net worth down under the limit for a summary dissolution," and the answer was "yes."

New questions:

1. We are going to a free family law consultation tomorrow to get new outside perspective. What information should we bring and what should we expect? Pay stubs and all that jazz, or are those unnecessary?

2. (Reworded question) Do marital assets need to be split equally? What if the parties agree to terms that are not equal?

3. Does non-taxable income count as marital property? I travel for work sometimes. I am payed per diem that is not taxable. Sometimes I am able to pocket some of it due to my frugality. It does not show up on my W-2 (I am told, haven't worked long enough to get a W-2 yet.)

 

[LdiJ]

The OP stated that I know that my casholas are marital property. The question was "can I do things prior to filing to bring our net worth down under the limit for a summary dissolution," and the answer was "yes."

New questions:

1. We are going to a free family law consultation tomorrow to get new outside perspective. What information should we bring and what should we expect? Pay stubs and all that jazz, or are those unnecessary?

2. (Reworded question) Do marital assets need to be split equally? What if the parties agree to terms that are not equal?

3. Does non-taxable income count as marital property? I travel for work sometimes. I am payed per diem that is not taxable. Sometimes I am able to pocket some of it due to my frugality. It does not show up on my W-2 (I am told, haven't worked long enough to get a W-2 yet.)

Yes, that is still marital property.

 

[mistoffolees]

3. Does non-taxable income count as marital property? I travel for work sometimes. I am payed per diem that is not taxable. Sometimes I am able to pocket some of it due to my frugality. It does not show up on my W-2 (I am told, haven't worked long enough to get a W-2 yet.)

This is not non-taxable 'income'. It is an expense reimbursement and is not income at all - which is why it doesn't show up on your W-2.

 

[LdiJ]

This is not non-taxable 'income'. It is an expense reimbursement and is not income at all - which is why it doesn't show up on your W-2.

However it is still marital property.

 

[mistoffolees]

However it is still marital property.

Of course.