How LGBT Couples Are Avoiding Domestic Partnership Headaches
Thursday, April 15th, 2010 at 4:09 pmIs entering a California “registered domestic partnership” the right move for you and your partner? More and more gay and lesbian couples are finding that the law relating to their relationship is confusing, and potentially very expensive.
Many couples who have been together for years, and who registered as domestic partners, are surprised when they later end their relationship and discover they are subject to the special rules surrounding “community property.” In other words, they discover that half of their earnings during the domestic partnership are deemed to belong to their partner, and that they may have to pay spousal support (sometimes called alimony). This is all because California law now extends the same burdens and benefits of marriage to registered domestic partners.
Further complicating matters for lesbian and gay couples is the fact that while some states recognize California domestic partnership, many do not. This becomes a problem when gay and lesbian couples move out of California and then wish to “divorce” in their new state. Many are forced to move back to California for the sole purpose of finalizing their divorce.
Gay and lesbian couples in California also face the reality of a complicated and confusing tax filing process. In California, domestic partners must file their returns as “married.” Because of the so-called “Defense of Marriage Act,” however, the IRS and federal government refuse to acknowledge either gay marriage, or domestic partnerships for tax purposes. Thus, gay and lesbian couples must file separate individual returns for federal taxes, and then complete a mock “married” federal return in order to get the proper numbers to then go back and place on their California state returns. This quickly becomes extremely complicated.
More and more gay and lesbian couples are using Preregistration Property Agreements (“prenups”) to avoid many of these community property and alimony issues later on. Other couples are choosing to not register at all, and instead are making sure that they have the appropriate documents such as wills, trusts, powers of attorneys and healthcare directives in place to protect themselves and create a quasi-marital relationship.
There is no right answer to how any couple should memorialize their relationship. Understanding the legal effect of their decisions however, can save time, frustration, and potentially money down the line.
— Richard
Erik W. Newton Mr. Newton brings a wealth of diverse experience to the practice of law, having worked in a range of industries including sales, network marketing, telecommunications, corporate litigation and government. 
Terrance C. Heath A graduate of UC Berkeley and Boston College Law School, Terrance Heath established his private practice in 2002. 
Robert S. Kamin Robert grew up in Palo Alto, California. After receiving a Bachelor of Arts in history with honors from UC Berkeley, he accepted a graduate fellowship at the American University in Cairo, Egypt. 
Richard J. Nelson Richard is a California native who earned a history degree (summa cum laude) from San Francisco State University, a law degree from Hastings College, and a Masters of Law in Taxation from Golden Gate University. 
Alison Grcevich. Ms. Grcevich holds a J.D. from Golden Gate University School of Law and a B.A. in Communication from the University of California, Santa Barbara.