BCS Mediation Blog

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Divorce, Money and the Creative Person or Entrepreneur

Disclaimer: This article does not constitute legal advice. If you have any questions about your individual situation it is best to seek the advice of an experienced legal professional.

It’s often advised that you should do what you love, but sadly this can conflict with who you love. Analysis of US census data shows that some careers can impact marriage more than others. Professions with lower pay, odd hours, high stress, frequent travel and high uncertainty can threaten marriage. Mingling with people in a social context at work also puts a strain on marriage.

Then if you divorce, you may find yourself faced with new problems. Divorcing creative people or entrepreneurs pose a particular risk to a “happy divorce” because of the unreliability of income and the difficulty of determining what’s mine and yours. A “happy divorce” may seem like anachronism, but increasingly, people seek positive divorces using mediation rather than traditional adversarial litigation.

So what can threaten a happy divorce when you’re divorcing a creative person or entrepreneur (or you are the one with creative job)? At Boileau Conflict Solutions, we use math, psychoanalytical tools and financial expertise to clarify complex or uncertain situations. For example, using game theory, we can help you understand how your interests converge with your divorcing partner’s. We apply financial analysis to speculative income and other non-standard compensation to determine how you can divide your assets fairly. The following is a look at some of the problems you may face.

Speculative Income

From conditional bonuses and stock options to record sales and entertainment or advertising contracts, many people have to plan based on potential future income that can’t be exactly calculated. Bonuses may be conditional on performance and entertainment or advertising contracts might also be conditional or might not materialize. An album or creative project can end up making a loss rather than a profit. Then there is the modern phenomenon of the social media influencer whose income is based on their fluctuating follower count and social media clout. How do you calculate these kinds of earnings and make sure divorcing partners are provided for in the future? At Boileau Conflict Solutions, we can help you estimate future income and create contingency plans. We can also help you determine who is entitled to what. Your spouse may not be entitled to future income such as stocks or conditional compensation if this is not mature yet. It’s important to be aware of the law and make sure even speculative income is handled correctly in your divorce.

Intellectual Property and Marital Property

For both artists and entrepreneurs, intellectual property is a variable that might span and/or pre-date the marriage. The contribution of one partner in terms of time, ideas, inspiration etc. to the creation of intellectual property can be difficult to determine and cause a great deal of conflict. A project started before the marriage but pursued throughout the marriage, a partner who works longer hours to support the other’s dream… These interdependencies should be explored with respect and a full consciousness of both partners’ time and energy. At BCS we approach these problems with the utmost sensitivity and deep psychological expertise.

Debt

Both partners may have taken on debt to support one partner’s artistic career or business. It’s not just assets, but debts that can be shared in a marriage and considered community property under California law. These debts will also have to be factored into a plan for the future.

Who We Are and How We Can Help

We are caring, well-educated mediators who are skilled in applied financial mathematics, the law psychoanalysis, and game theory. We strive to efficiently comprehend your situation and its opportunities for sustainable and agreeable resolution. This may include a review of your parenting plan, spousal support calculations, community property equalization, settlement agreement, and all other aspects of your case. We can either confidentially present you with a private analysis, or mediate the conflict with both of you until resolved. Any resolution you come to will be informed by a deeper analysis of the conflict that can be psychoanalytic and/or more financially-focused. Conflict analysis can result in a more optimized understanding of the net community property, which adds value to the overall estate, benefiting you both. Our high-level divorce mediation services are tailored to the needs of people with complex lives or divorces that may be difficult or protracted. We can intervene to break litigation deadlocks when divorces are already underway. We work with individuals from several cultures and countries, and can help with national and international relocation issues associated with divorce. You can visit us at our offices in Campbell, CA, Irvine, CA and San Diego, CA. We can also be reached by Telephone, Zoom or Facetime. We are available 7 days a week and at urgent notice. Please contact us to see how we can help.

Read More: https://www.forbes.com/sites/frawleypollock/2019/08/13/how-your-compensation-structure-can-affect-your-divorce/#3ba7453e1ace

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