Koblin Family Law Center
Koblin Family Law Center
  • Home
  • About Us
    • Koblin, Kennedy
    • Your First Consultation
  • Practice Areas
    • Divorce
    • Family Law
    • High – Asset Divorce
    • Modifications
  • Testimonials
  • Blog
  • Contact

 925-298-2961

Koblin Family Law Center
Call: 925-298-2961
  • Home
  • About Us
    • Koblin, Kennedy
    • Your First Consultation
  • Practice Areas
    • Divorce
    • Family Law
    • High – Asset Divorce
    • Modifications
  • Testimonials
  • Blog
  • Contact

Boutique Family Law Representation & Stellar Client Service

  1. Home
  2.  » 
  3. Divorce
  4.  » 
  5. The Impact Of Passive Income On A California Divorce

The Impact Of Passive Income On A California Divorce

On Behalf of The Koblin Family Law Center | May 4, 2023 | Divorce

Establishing a reliable stream of passive income is frequently ideal for modern professionals. They can live their lives without being beholden to an employer or constantly chasing the next client.

Passive income may result from invested resources, peer-to-peer lending or even rental real estate holdings. The lifestyle permitted by those with passive income is something that people often want to protect when preparing for divorce.

Passive income can affect property division and support matters

Whether the people divorcing find a way to settle outside of court or ask a judge to make the key decisions in their case, they need to disclose all sources of income and major assets. That will include sources of passive income, including rental properties and investment accounts.

When people decide how they want to divide community property or how much support one spouse may need to pay the other or for their children, passive income can actually have a profound impact on the final determination. The totality of someone’s financial resources, including their passive income, plays a major role in what obligations they have in a divorce.

People generally have to account for all assets and sources of income for any formal financial disclosures made to the courts. Failing to do so could leave them open to penalties later due to the misrepresentation of their circumstances. Therefore, passive income can increase the risk of complications during divorce if someone doesn’t address it properly.

A divorce could reduce someone’s passive income

The property division process in a California divorce could potentially diminish the assets that generate passive income. Spouses may need to divide their investment accounts or liquidate investment real property holdings to properly and fairly divide their marital property with their spouse.

For those who hope to retain the assets that generate their passive income, settling outside of court may be the best approach to divorce. They can negotiate to preserve specific assets by compromising in other areas. Seeking legal guidance and recognizing that passive income can change both someone’s priorities as they prepare for high-asset divorce can help people better advocate for themselves during the property division process.

 

Categories

  • Child Custody (19)
  • Child Support (8)
  • Community Property Division (12)
  • Divorce (66)
  • Domestic Violence (8)
  • Family Law (15)
  • Firm News (13)

Archives

Recent Posts

  • 3 financial issues that can complicate high-asset divorces
  • Can one parent prevent the other from seeing their children?
  • Addressing a family – owned business in a California divorce
  • How commingling can impact property division in a divorce
  • How parental alienation can affect a California custody order

We Can Resolve Your Legal Issue Arrange Your Consultation Today

Koblin Family Law Center
Koblin Family Law Center

Office Locations

Pleasanton Law Office

5700 Stoneridge Mall Road, Suite 230
Pleasanton, CA 94588

San Ramon Law Office

111 Deerwood RD,
Suite 200
San Ramon, CA 94583

Contact Info

Phone: 925-298-2961
Fax: 925-2982961

  • Follow
  • Follow
  • Follow
Super Lawyers Rising Star
Review Us

© 2025 The Koblin Family Law Center • All Rights Reserved

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw

Visa, Master Card, American Express, Discover Network