The dissolution of a marriage opens the door to many decisions that need to be made. Once anyone venturing into a divorce understands the scope of those decisions, particularly any decisions that pertain to finances, that party can make a more informed and positive choice about property division, child support, alimony, pensions and other factors that may impact that person’s life long after the split. The actual impact on finances can vary greatly for California residents, depending on the amount of assets to be divided and the length of the marriage, along with other various individual factors.
The division of assets or the property division portion of a divorce can get more complex than expected. The first step to minimize complexities will be to distinguish what is marital and what is separate property. This can include the house, which for most may be the most valuable asset involved. Itemized lists of assets can be useful as property is divided. As for the house, the fate of children and the specifics pertaining to where they may live can impact who gets the house, along with details about whether or not that party can afford to keep the home after a divorce.
Other financial issues to consider can involve pensions. These savings accrued during the marriage can be subject to division. The division of pensions can also include any cost of living increases over time and future survivor benefits.
Additional financial considerations during a divorce can involve alimony, child support and debt issues that need to be split or resolved. A clear and accurate financial picture must be painted in order to ensure fairness for all in California who are in the midst of a divorce. This clear picture can help each person prepare for a new bottom line as he or she goes from a two income situation to one income. Experienced legal guidance can help make the transition smoother.
Source: delawarebusinesstimes.com, “Viewpoint: Things to know about divorce and finances“, Leslie B. Spoltore, May 26, 2016