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Prerequisites for Summary Dissolution (California)

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Mr Hogg

Junior Member
What is the name of your state (only U.S. law)? California

I have a quick question about a Summary dissolution which I would be grateful if anyone could answer:
My wife and I qualify for a Summary Dissolution for all the prerequisites such as no children, no community property, no debt etc except that my wife recently inherited some money from her father meaning that she has more than $38000 separate property.

This is her money and I have no desire to take any of this. We agree on everything else in terms of community property. My question is can she temporarily move the money to, say, a relative's account for the duration of the divorce proceedings? This would mean any financial disclosures she signs would be true when they state that she has less than $38000 separate property. This would allow us to have a quick, simple divorce minimizing the pain for both parties.

Thanks for any response
GrantWhat is the name of your state (only U.S. law)?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? California

I have a quick question about a Summary dissolution which I would be grateful if anyone could answer:
My wife and I qualify for a Summary Dissolution for all the prerequisites such as no children, no community property, no debt etc except that my wife recently inherited some money from her father meaning that she has more than $38000 separate property.

This is her money and I have no desire to take any of this. We agree on everything else in terms of community property. My question is can she temporarily move the money to, say, a relative's account for the duration of the divorce proceedings? This would mean any financial disclosures she signs would be true when they state that she has less than $38000 separate property. This would allow us to have a quick, simple divorce minimizing the pain for both parties.

Thanks for any response
GrantWhat is the name of your state (only U.S. law)?
That would be fraud, and a very risky thing for her to do.
 

Mr Hogg

Junior Member
That would be fraud, and a very risky thing for her to do.
Thanks, I appreciate your response. I realize this could be constituted as fraud based on the letter of the law but do you think it would really be "very risky"?

Whom would be wife be defrauding? I am assuming it would be me by her not fully disclosing her finances to me prior to the dissolution. However this is her money and I am happy to let her keep it. Perhaps she would be defrauding the state of California but does the Clerk or Judge really look into both parties finances prior to judgement?

I was just wondering because we qualify for a Summary Dissolution for all prerequisites except for her Separate Property being greater $38000. I am sure there is a legal reason for this figure but it does seem a somewhat arbitrary figure.

As I say I appreciate any feedback and am not just wanting someone to tell me the answer I want to hear. I just wanted to make an informed decision.

Thanks again
Grant
 

mistoffolees

Senior Member
Thanks, I appreciate your response. I realize this could be constituted as fraud based on the letter of the law but do you think it would really be "very risky"?

Whom would be wife be defrauding? I am assuming it would be me by her not fully disclosing her finances to me prior to the dissolution.
She would also be defrauding the court - which could get her a contempt fine.

In addition (and I'm surprised Ldij didn't mention this), it could create a tax problem for one or both parties if not properly done.

Suggestion - NEVER knowingly lie to the court. Never ever.
 

Mr Hogg

Junior Member
She would also be defrauding the court - which could get her a contempt fine.

In addition (and I'm surprised Ldij didn't mention this), it could create a tax problem for one or both parties if not properly done.

Suggestion - NEVER knowingly lie to the court. Never ever.
Thanks for your answer!
 

LdiJ

Senior Member
She would also be defrauding the court - which could get her a contempt fine.

In addition (and I'm surprised Ldij didn't mention this), it could create a tax problem for one or both parties if not properly done.

Suggestion - NEVER knowingly lie to the court. Never ever.
I have to disagree with the bolded. Yes, there are tax issues regarding inheritances but there is no tax issues related to divorce that would shift a tax burden to an ex spouse unless a joint return was filed that accidentally omitted tax issues related to inheritances.

Nevertheless, I still emphasize that you don't play games with divorces.

You may not be eligible for a summary dissolution but if the two of you submit a stipulated agreement to the court regarding your divorce and property settlement, then you could likely end up divorced just as quickly as you would with a summary dissolution....without playing any games or committing any fraud.
 

mistoffolees

Senior Member
I have to disagree with the bolded. Yes, there are tax issues regarding inheritances but there is no tax issues related to divorce that would shift a tax burden to an ex spouse unless a joint return was filed that accidentally omitted tax issues related to inheritances.
That's not the point.

The point is that if OP's wife gives $38,000+ to her sister, THAT could create tax issues (specifically gift tax). Then another gift tax if the money is given back.
 
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LdiJ

Senior Member
That's not the point.

The point is that if OP's wife gives $38,000+ to her sister, THAT could create tax issues (specifically gift tax). Then another gift tax if the money is given back.
But not for the OP...the problem would be his wife's, not his...and unless one of them (her or her sister) exceeded their lifetime exclusion for gifting (currently 1 million) the maximum hassle would be the need to file a gift tax return.

The bigger danger, in my opinion is taking a risk that someone wouldn't get greedy and avoid returning some or all of the money.
 

mr2fyre

Junior Member
I would have to read through everything again, but i believe that the limit for value of assets is for community property only and does not include the value of the separate property. Also, the inheritance would be considered separate property.

You would have to double check that, but if it really is the case you still qualify for the summary dissolution.

If you both agree on everything or she does not plan to file the paperwork, the process for a judgment by default is not that much more difficult than summary dissolution.
 

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