Couples tend to start building wealth early in their marriages. This could result in considerable assets when they are ready to retire. However, California couples who get divorced before they exhaust those investment funds may have to divide those assets when they separate.
Take stock of assets prior to filing for divorce
What to consider before getting a strategic divorce
California residents may see a reduced tax bill by divorcing their spouses. Furthermore, it may be possible for an individual to qualify for government health benefits by ending his or her marriage. This is because those individuals could have fewer assets and a lower yearly income on their own compared to when they were married. However, there is also a chance that a person loses out on the ability to benefit from IRA contributions or a 401(k) balance.
Property division and keeping a house with a buyout
Californians who are getting a divorce will have many issues to navigate, such as spousal support and child support. Another vital aspect is property division. If the couple owns a home, it may have significant value. One or both spouses might want to retain it. To sift through the complexities in this situation, it is important to know how to resolve it.
Healthy ways to approach divorce
Getting through a divorce is an experience that often involves having to mourn a lost way of life. However, California residents can approach their divorce in healthy ways that might help them overcome the negative feelings that often accompany a split.
Children sometimes ask to change child custody arrangements
Family law judges in California and around the country may modify child custody arrangements when doing so would be in the best interests of the child. Sometimes, custody arrangements are revised because custodial parents have problems with drugs or alcohol or enter into relationships with toxic or dangerous individuals, but judges could agree to a change in living arrangements simply because the child involved has decided that they would rather live with the noncustodial parent.
Prenups more popular among millennials
Research suggests that more and more California couples are signing prenuptial agreements before marriage. Once thought to be the exclusive province of celebrities and the ultra-rich, prenups have become an option for couples of various means, especially as more people marry after establishing their careers. According to a recent study by the American Association of Matrimonial Lawyers, younger people are particularly likely to consider a prenup before tying the knot. Of the lawyers surveyed, around 62% said they have seen an increasing number of clients wanting a prenuptial agreement in recent years.
Children are the first priority in a divorce
When a California couple with children begins experiencing marital difficulties, there is typically a great deal of thought about what's best for the family. If the conclusion is that divorce makes the most sense for all under the circumstances, it is natural for both parents to focus on the legal issues such as community property, separate property, property division and spousal support. Of course, the issues of child custody and support are at the forefront; although the settlement of these issues is part of the divorce process, the welfare of the kids as they transition from one family home to two separate residences is of the utmost importance.
Gray divorce, older women and financial woes
In California and across the United States, women often experience complex financial issues following divorce. Whether the issue involves community property, separate property, child custody arrangements or spousal support, divorced women seem to face more difficulties than divorced men. An older woman obtaining a "gray divorce" typically experiences more problems than a younger woman. For some women, gray divorce causes financial woes that are difficult to handle.
Finances and getting remarried
California residents who decide to get remarried should be aware that there can be financial issues that have to be addressed. This is because people who get remarried tend to have more financial assets than they had the first time they were married. It is also likely that they may have lingering financial complications from a previous marriage. The situation can become even more complex when there are adult children.
Student loans can threaten health of marriage
As California residents know, the costs of a college education have risen steadily over time. Paying for that education often comes with steep loan amounts that keep rising. What might be surprising to know, however, is the threat that student loans can pose to marriage.
