The purpose of spousal support is not defined by the legislature in that its purpose varies according to the facts and circumstances of each case. The facts and circumstances of a particular case may be such which call for no spousal support, or for support for a very limited period of time, with the purpose to assist the supported spouse to "get back on his or her feet" as a single person, or until community property is distributed. On the other hand, the facts and circumstances of another case may call for support for an extended period of time, perhaps until death of the supported spouse, the purpose for which to provide assistance to one who cannot support himself.
The two situations mentioned hereinabove are extreme cases, on opposite ends of the spectrum. Quite obviously, the facts and circumstances in a particular case may be such which call for some amount of support for some period of time, though not until death of the supported spouse. For example, the court may order support for that period of time required for the supported spouse to obtain or complete an education, to allow the supported spouse to take care of the children until they reach an age where a return to employment would be more feasible, or to become self-supporting within a reasonable time.
Although the use of standard guidelines based on income is encouraged in the award of temporary support, such guidelines cannot be used in awarding permanent spousal support. As indicated herein above, the award of support is in large part based on the facts and circumstances of the particular case. In determining spousal support, the court considers numerous factors, set forth in Family Code Sec. 4320. They include: 1) The extent to which the earning capacity of each party is sufficient to maintain the standard of living established during the marriage, 2) The extent to which the supported party contributed to the attainment of an education, training, a career position, or a license by the supporting party, 3) The ability of the supporting party to pay spousal support, taking into account the supporting party’s earning capacity, earned and unearned income, assets, and standard of living, 4) The needs of each party based on the standard of living established during the marriage, 5) The obligations and assets, including the separate property, of each party, 6) The duration of the marriage, 7) The ability of the supported party to engage in gainful employment without unduly interfering with the interests of dependent children in the custody of the party, and 8) The age and health of the parties.
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Atty. Kenneth Ursua Reyes was President of the Philippine American Bar Association. He is a member of both the Family law section and Immigration law section of the Los Angeles County Bar Association. He has extensive CPA experience prior to law practice. LAW OFFICES OF KENNETH REYES, P.C. is located at 3699 Wilshire Blvd., Suite 700, Los Angeles, CA, 90010. Tel. (213) 388-1611 or e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Visit website Kenreyeslaw.com.
( www.asianjournal.com )
( Published on December 6, 2008 in Asian Journal Los Angeles p. C4 )
The Basics: Time value of money
Evangeline A. Giron
One well-known fact of economic life is that a dollar received today is worth more than a dollar received a year from now.
Time and money
The relationship between time and money provides the foundation for virtually every financial decision you will make. Whether you are saving money for a future event or considering a loan to pay for a current financial need, you will be greatly impacted by the time value of money.
This is true for two main reasons. First, a dollar received today can earn interest or appreciate in an investment account, thus increasing its value with time. Second, inflation impacts the value of your dollar. As the price of goods increases with time due to inflation, the value (or purchasing power) of your dollar decreases.
Time value tips
Whether you are saving for retirement or a down payment on a home, college funding or dependant care needs, you will be greatly impacted by a few simple time value tips.
Time Value Tip #1: The longer you have to prepare, the less your objectives will cost. Assuming that you are able to invest your savings and earn a positive return, you will always be better off saving for your goals in advance. Not only will your savings earn interest, but the interest you earn will also begin to earn interest. This is called "compounding" and was referred to by Albert Einstein as the "ninth wonder of the world."
Time Value Tip #2: The higher the interest rate you are able to secure on your savings, the faster your money will grow. Generally speaking, the amount of risk you are willing to take on your investments will determine your long term rate of return. The longer you have to save for your goals, the more risk you should take on your investments and the greater rate of return you should expect.
Time Value Tip #3: It is usually better to postpone paying taxes on your investment proceeds. When you have the choice, you should usually choose to delay paying taxes on investment proceeds as long as possible. This is because as long as you have your investment’s growth in your hands, you can continue to earn more interest on that growth (see "compounding" above.) Once you pay the taxes, you will never earn interest on those lost funds again. One way to postpone the payment of taxes is to invest in "growth" oriented assets, as opposed to interest oriented assets. Another is to use qualified retirement plans whenever possible.
Time Value Tip #4: Factor inflation into your long term plans. When preparing for long-term financial objectives, you must factor inflation into your plan. Over the last 20 years, inflation has averaged about 4% per year. The cost of some financial objectives will grow even faster than this—college costs, for example, have averaged nearly 8% annual growth. Planning for such cost increases will ensure that your saving level is sufficient to meet your objectives.
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Evangeline could be reached at her marketing location at the Eagle Rock Plaza, Ground Floor (infront of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041, phone number (323) 356-3803 or (323) 254-6787. Her office provides the following products and services: insurance and financial services, income tax preparation, notary public, and resume preparation.
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Evangeline does not provide legal advice. Please consult with your lawyer regarding the divorce process. The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described.
( Published on December 6, 2008 in Asian Journal Los Angeles p. C4 )
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