California is a community property state, which means that marital assets are divided in half for divorces. This has lead to many concerns for separating couples, including one woman who is divorcing her husband of 25 years. Her husband has insisted that he is going to get both the home and half of her 401(k). The woman, who has been the main breadwinner for a decade, feels that this is unfair. She also believes that her husband is concealing assets.
Many California residents may be unsure what to do if assets are transferred from a joint account into an account in one spouse's name. One man opted to give his wife one month to replace $130,000 that was transferred into a CD in her name only from a joint account. In this case, the wife countered by saying that the money couldn't come out for six months.
Many Californians know that divorce can create lots of financial turmoil, even if only in the short term. However, there are some potential financial benefits that can emerge during and after the divorce process.
Older California couples whose marriages are ending might be surprised at just how costly their divorces might be. Between fees for legal representation, tax implications and even long-term financial adjustments, gray divorces can become very expensive for the parties involved.
Going through a divorce can be an emotionally taxing experience. As such, estranged California couples may not be in the best state of mind to make financial decisions that will have a major impact on their lives after the divorce. To potentially prevent major financial missteps, people should ensure that they understand the implications of any decisions they make, even if they have a financial planner and a family law attorney on their side.
Alimony and child support payments are parts of many California divorce decrees, and they may represent significant ongoing expenses. To help reduce the overall costs, alimony payments can be considered tax deductible, but child support payments are not. It is important for a person to understand the complicated differences between the two.
When going through a divorce, estranged California couples must divide their marital assets. Although some can come to an agreement on their own, there are certain types of assets that require some more attention to detail. These include retirement accounts, such as Thrift Savings Plans that are owned by federal employees.
California couples who wish to divorce often have to deal with complex property division issues. Whether you are the spouse who has a higher net worth or the spouse who has a lower net worth in your marriage, going through a divorce may necessitate the help of a team of professionals.
California couples who are ending their marriage can organize their finances in a way that might make the process less difficult. While they may get advice from friends and family, it is important to remember that legal and financial professionals might be able to offer more reliable counsel, and people should not hesitate to consult and hire these professionals if necessary.
The community property laws in California provide family law judges in the state with few options, and divorcing couples who would rather decide for themselves how their property will be divided may enter into amicable agreements to avoid protracted court disputes. Celebrity gossip is now an accepted part of the daily news cycle, and famous divorcing couples may be especially motivated to end their marriages quietly and avoid the public glare of a civil trial.