Is an Advance on Salary Community Property
My question involves a marriage in the state of: CA
Hi,
Being a self-employed, I have some flexibility in terms of how, when and how much I pay myself in wages. In order to take care of some financial obligations I received money from my company in the form of advance salary for the rest of the year. Within a month from that my wife filed for dissolution of marriage. My question is, does the advance salary I received from my S-corp becomes community property or is it still considered my separate property?
For e.g. In June I took advanced salary for the next six months that is up to end of December. If my wife filed for divorce in July, is my salary from August to December considered community property or separate property?
Thanks in advance.
Re: Is an Advance on Salary Community Property
You can attempt to argue based on cases like In re Marriage of Frahm (1996) 45 Cal. App. 4th 536 [53 Cal. Rptr. 2d 31] that you had not accrued a right to your advanced wages during the marriage (or at least prior to the filing of divorce) and thus that they're not a community asset. I would expect your spouse to characterize things differently, and for the lawyers and accountant(s) to find lots of things to argue about.