A California resident who has won the family home in a divorce settlement may be considering their options when it comes to handling the mortgage. Common options include both spouses continuing to pay on a joint mortgage, one spouse refinancing the mortgage in their name or one spouse assuming the loan. The first two options are pretty straightforward. However, when it comes to the third option, a lot of misconceptions need to cleared up prior to proceeding.
Is your spouse overpaying taxes? Putting money in a brokerage account but not withdrawing it? Transferring money across different checking accounts?
Some California spouses who are going through a divorce may attempt to hide cryptocurrency assets. This is a growing issue as cryptocurrency becomes more popular. However, it is still far enough out of the mainstream that few people have experience dealing with it as an asset in divorces. Even when a partner is forthcoming about cryptocurrency assets, another problem that could arise is getting an accurate valuation. This is because cryptocurrency value can fluctuate a great deal.
A divorce requires California parents to decide who gets to claim the children as dependents on federal tax returns. Claiming children could produce significant tax savings via the Dependent Care Credit and Child Tax Credit. A custody, divorce or separation agreement can specify who gets the privilege of claiming the dependents. In the absence of such an agreement, then IRS rules determine who can claim children on a tax return.
Parents in California and other parts of the country are understandably concerned about the possible dangers and risks associated with texting and social media use. However, there's a new study that suggests texting and social media can help keep parents and children stay connected when a marriage comes to an end. Interestingly, it didn't seem to matter how well former spouses got along with one another.
When divorcing in California, a couple’s community property is typically divided so that both spouses end up with roughly the same value in assets and debts. However, sometimes one spouse will hide assets to prevent those assets from being divided in the divorce.