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.
Protecting your inheritance during property division
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.
Protecting and dividing retirement savings in 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.
Will your credit survive a high asset divorce?
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.
