Staying in an unhappy marriage is a burden that no one in California should have to bear. However, couples over the age of 50 may not feel as if they have any other choice. Even for a person who is relatively well-off may worry about what finances will look like after a divorce. Much of this worry centers around how money and other valuable assets will be split during property division.
There are few things as satisfying as starting a business and then nurturing it into a successful, thriving entity. Realizing that a business could be in jeopardy during a divorce is not a thought that most California business owners would like to entertain, but like with business, it is necessary to be forward-thinking when it comes to marriage. The reality is that some marriages end in divorce. As such, it makes sense to protect personal and business interests during property division, which is often best accomplished by creating a prenuptial agreement.
Married couples spend years and even decades accumulating joint assets. From family homes to shared vehicles to living room furniture, the number of assets that are considered community property can be quite high. This can be overwhelming when going through the divorce process. However, having a better understanding of California state law in regard to property division ease some people's concerns.
Property division can be extremely complicated, especially when a California has complex assets to split. A divorcing couple might pay particular attention to the tax implications of any property settlement, but they may overlook another potential financial problem in a high asset divorce. Whereas a person paying alimony could once deduct the amount on his or her taxes, those payments are no longer deductible. Instead, individuals will need to explore other options for minimizing taxes after a divorce.
Inheritances are often deeply personal, and most have significant amounts of both financial and emotional wealth. For these reasons, protecting an inheritance during marriage and divorce is essential. It is not uncommon for a California resident to file for divorce and then discover that his or her inheritance is considered community property, and as such subject to property division.
Saving for retirement is a lifelong endeavor. Most people in California start out saving early in their careers with the goal of achieving a financially secure retirement. Unfortunately, no matter how well-considered a plan for retirement might be, it can be knocked off track by major life events, such as divorce. To avoid losing important milestones in the process of saving for retirement, it is essential to understand the various available options during property division.
Credit scores have the ability to govern many aspects of a person's life. From securing an auto loan with a favorable interest rate to getting a mortgage, living with a low credit score can cut off access to a wide range of financial opportunities. In a high asset divorce, there are many factors that can affect a person's credit score. While filing for divorce does not show up on credit reports, actions taken during and after can certainly have a negative impact.