Seattle Divorce Lawyer Philip Tsai of Tsai Law Company speaks at the Washington State CLE regarding issues that thwart settlement. Issues discussed include spousal maintenance, alimony, law, maintenance rules, AAML recommendations, separate property claims, separate property tracing, inheritance, parental gifts, remarriage, and social security payments

1. THE SHAPE OF THE TABLE;ISSUES THAT THWART SETTLEMENT Carl T. Edwards, Esq. Philip C. Tsai, Esq. October 7, 2011

2. ‣ Is this a Maintenance Case? ‣ If so, How Much and for How Long? ‣ What are the Factors to Consider? Spousal Maintenance/Alimony TLC Seattle Divorce Lawyers

3. RCW 26.09.090 Need versus ability to pay Age, Health, Work History No Specific Guidelines re: Amount and Duration Washington’s Maintenance Law TLC Seattle Divorce Lawyers

4. Short Term Marriage- 5 Years or Less Long Term Marriage- 25 years or more Mid Range Marriage- everything in between Judge Winsor’s Treatise (1982) TLC Seattle Divorce Lawyers

5. Ratio Regarding Length of Marriage to Duration of Maintenance Income Equalizing Approach Diminishing Maintenance Over Time Maintenance-Rule of Thumb TLC Seattle Divorce Lawyers

6. Santa Clara, California: Payor Net Income (payor’s gross monthly income minus income tax and Social Security payments and minus child support) – (child support x 40%= ____________) - (Payee net income x 50% = _______________). Other State’s Approach TLC Seattle Divorce Lawyers

7. Ohio: No specific guideline per se, frequently use a 3 to 1 ratio for duration. Lifetime maintenance is possible in long term marriage and court retains jurisdiction to modify. Other States Approach (Cont.) TLC Seattle Divorce Lawyers

8. Texas: Requires 10 year marriage for post divorce maintenance, except in cases of disability. Support is limited to $2,500 per month for a period not to exceed three years. Other State’s Approach (cont.) TLC Seattle Divorce Lawyers

9. Florida: Statutory Factors with a Rule of Thumb Timeline. Marriage of 6 Years is Short Term. Marriage of 16 years or longer Long Term with a presumption of lifetime maintenance. An entitlement of marital lifestyle is considered looking to the last 3 to 4 years of the marriage. Other States Approach (Cont.) TLC Seattle Divorce Lawyers

10. New Mexico: During the divorce proceeding, the court divides the income equally after the fixed expenses are paid to include housing, utility, minimum debt service, and insurance. Other States Approach (Cont.) TLC Seattle Divorce Lawyers

11. To determine the duration of the alimony award, multiply the length of the marriage by the following factors: 0-3 years (.3); 3-10 years (.5); 10-20 years (.75), over 20 years, permanent alimony. American Academy of Matrimonial Lawyers Recommendations TLC Seattle Divorce Lawyers

12. To determine the amountof alimony, a spousal support award should be calculated by taking 30% of the payor’s gross income minus 20% of the payee’s gross income. However, when added to the gross income of the payee, the alimony award shall not result in the recipient receiving in excess of 40% of the combined gross income of the parties. American Academy of Matrimonial Lawyers Recommendations (Cont.) TLC Seattle Divorce Lawyers

13. Lifetime Maintenance Awarded AAML Recommendations Considered by Trial Court Upheld by Court of Appeals Marrige of Boemio, 414 Md. 118 (2010) TLC Seattle Divorce Lawyers

14. All Property Acquired During Marriage Presumed to be Community Property All Property Owned Prior to Marriage is Separate Property including Rents, Issues, flowing from Separate Property Property Inherited or Gifted During Marriage is Separate Property Separate Property Claims TLC Seattle Divorce Lawyers

15. Clear and Convincing Evidence Test Explain Tracing Requirement to Client Immediately Make Document Requests If Feasible, Hire Expert Witness to Perform Analysis Separate Property: Tracing TLC Seattle Divorce Lawyers

16. Real Property Owned Prior to Marriage Funds in Bank or Stock Account Retirement Accounts Pre and Post Marriage Stock Awards and/or Options Common Tracing Scenarios TLC Seattle Divorce Lawyers

17. House Titled in Both Parties Names No More Joint Title Gift Presumption Marriage of Olivares, 69 Wn. App. 324 (1993) Marriage of Hurd, 69 Wn. App. 38 (1993) Estate of Borghi, 167 Wn.2d 480 (2009) A Game of King’s X TLC Seattle Divorce Lawyers

18. Inheritance- Vested Interest or Mere Expectancy Parental or Other Gifts Remarriage Social Security Payments Expectancy or Loss TLC Seattle Divorce Lawyers