California is home to many wealthy couples who have gone through high-asset divorces. When a large amount of money is involved, any asset could be the subject of a million-dollar legal battle. One of the issues that may arise during property division is who gets to keep an art collection that took decades to curate. In many cases, an art collection is even more sentimentally valuable to a spouse that its price tag indicates.
Divorce may have an effect on the credit of some people in California. For example, one person might want to keep the home, but this could involve refinancing and taking on more debt.
California residents know that a divorce can be complicated, both emotionally and financially. While it means the end of a relationship that just did not work, starting over and letting go of previous life plans can be very difficult. Additionally, the division of a couple's assets can bring even more conflict into the situation. When the couple also owns bitcoins, this division can become even messier.
California residents may take steps to forget about their divorce and move on with their lives. However, it may be possible to collect Social Security benefits based on the work record that a person has with a former spouse. Collecting such benefits may make it easier to live comfortably in retirement or at least make it easier to make ends meet as a person ages.
California homeowners who are getting a divorce should handle their home mortgages with care. Refinancing a mortgage may be the best way to protect one's financial future and a home, which usually is a couple's most valuable asset.
One issue that California residents could face after a divorce involves building or rebuilding credit histories. To do this, an individual should make sure that debts held with a former spouse are paid on time. In some cases, this may require an individual to pay them in full even if their spouse was technically responsible for the debt. This is because creditors are not held by any agreement made between a divorcing couple.
When couples in California divorce, the personal finances of each spouse are often thrown into turmoil. Asset division and commitments to spousal or child support are typical aspects of the divorce settlement process. However, it is also essential for each spouse to take responsibility for their financial health during the separation process.
California couples who are getting a divorce may want to keep things as simple as possible, but if they are splitting a retirement account, they might need professional assistance to avoid having to pay taxes and penalties. For example, to split a 401(k), the couple will need a document known as a qualified domestic relations order to avoid these costs.
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.