Adults spend decades saving money for retirement. It is not uncommon for young adults in California to start their retirement savings very early on in their careers, which can help secure a more financially stable future. Unfortunately, a large retirement account is quite often vulnerable during a high asset divorce.
Ending a marriage is a complicated matter and can be time-consuming and involve significant emotional and financial commitments. Since divorce is often the culmination of marital distress over a period of time, the loss of time and emotional struggles may not seem like too much to deal with. However, during a high asset divorce, the financial side of things can quickly feel overwhelming.
Popular media likes to portray divorcing women in a single light. Women are often shown viciously going after ex-spouses for money, desperate to squeeze out every last nickel and dime for their own advantages. In reality, this is very rarely the case. When facing a high asset divorce, the average California woman just wants to be certain of her financial security.
For some California couples, money may feel like a significant barrier to divorce. This does not always mean that a couple cannot afford to divorce, and indeed may even mean the exact opposite. In a high asset divorce, dividing complex assets and determining alimony payments can be daunting. Here are a few ways to approach the associated financial concerns of going through a divorce.
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.
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.
In certain situations, more money really does equal more problems. In the case of a high asset divorce, a California couple might have to divide money from multiple income streams, complicated investments, businesses and other complex financial assets. However, couples do not have to go into marriage blindly trusting that they will figure out money matters if they end up divorcing. Here are a few ways in which a person can protect his or her finances and interests during divorce.
Having the financial security of a well-paying job can be extremely reassuring during difficult periods of life. Unfortunately, jobs are not always as permanent as they may seem. Losing a job during a high asset divorce is not an easy situation for California residents to find themselves in, but here are a few ways to minimize any negative consequences.
Real estate is often the biggest investment that people make, and most do not even realize it. Purchasing a home is a significant life step and investment that many California couples are happy to make during their marriage. However, depending on the type of property, its worth and personal feelings, dealing with real estate during a high asset divorce can be quite a task.
While virtually all divorces have to go through the same processes of property division, figuring out alimony and even child custody agreements when applicable, some divorces are far more involved than others. In a high asset divorce, a couple in California will generally encounter more complicated assets that are difficult to divide. For some, things like reputation could also be a complicating factor. Here are a few things to keep in mind when dealing with this type of situation.