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.
IRS rules for divorced parents who claim dependent children
Texting and social media may make divorce easier for kids
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.
Planning for a business during a divorce
California business owners often do not consider the potential for divorce when they decide to marry. Still, the presence of a business means that entrepreneurs may need to consider additional protections before or after they tie the knot. Many equity investors may even insist on protections that could safeguard the business from being divided or destroyed in case of the end of a marriage. In many cases, both spouses are deeply involved in a business' success or failure. Making an agreement does not need to mean that one spouse is deprived of the value they deserve, but simply creates a framework for fair distribution.
Planning for divorce
Married California couples may not want to think about the necessity of planning for a divorce, but it might be something to consider. According to statistics, the rate of divorce in the United States is at almost 50 percent. This means that nearly 2 million divorces occur each year. Being prepared for a divorce means understanding the divorce process and planning for what comes before, during and after a divorce.
Divorce more likely when wife gets sick
Several studies suggest that couples are more likely to get divorced if one of the spouses gets sick. The risk of divorce for California couples depends on the strength of the relationship and the specific illness involved, and an increasing number of studies say divorce is more likely when the husband gets sick than the wife. A 2015 study published by the Journal of Health and Social Behavior said that an elevated risk of going through divorce was found with a wife's illness but not with the husband's, for example.
How divorces can affect the super-rich
Given that the news of Amazon founder Jeff Bezos, the current richest man in the world who is about to divorce his wife of 25 years, citizens of California would not be faulted for wondering how his huge fortune will get split up. In fact, this story illustrates how the divorce proceedings of the ultra-wealthy differ from those of the average couple.
Divorce risk may be higher for men marrying 'out of their league'
Some men in California believe they are lucky when they marry "out of their league" and tie the knot with women more attractive than themselves. However, there's research suggesting men marrying more physically attractive women may have less committed wives, which may lead to a higher risk of divorce. A social psychology professor commenting on this topic further notes that couples are not on par with one another with physical attributes tend to have romantic relationships that aren't all that successful.
Handling joint debt in a divorce
A credit card company is not bound by a divorce decree. Therefore, California divorcees may find it more difficult to get rid of joint debt than to separate from their actual spouses. Ideally, individuals will take steps to divide this debt prior to getting a divorce. This could mean paying the joint balances together or transferring a portion of the debt to credit cards in each person's name.
Planning for financial clarity in a marriage
When people in California consider divorce, some of the most common issues that can lead to the end of a marriage are financial. Indeed, 59 percent of divorcing couples say that financial issues played at least some role in the split, according to a study by Experian, the credit bureau. In addition, 20 percent said that finances were a major issue, and 26 percent said that credit scores and handling of credit were a major obstacle in the relationship.
Ways to save on taxes after a divorce
Couples in California who are going through a divorce may need to get ready to make changes to their budget. This is because they will be living on a single income as opposed to the combined income they were afforded while married. In some cases, an individual will be required to pay alimony to help the other spouse maintain their standard of living after the marriage ends.
