For some reason, many people in California and across the country choose to end their marriages during the month of January. Divorce filings tend to increase after the major holiday season, with numbers peaking somewhere near March and then decreasing again toward autumn. New financial plans are often incorporated into New Year resolutions. Getting divorced in January may increase the need to accomplish those goals.
It’s likely impossible for divorce to have absolutely no financial significance to those involved. Typically, joint accounts must be converted to single accounts and estate plans need to be updated to change powers of attorney, living wills and other documents. Separating joint finances can lead to various types of complications.
Divorce decrees often list various tasks and deadlines related to money matters which typically require careful review. A failure to comply could cause significant legal problems. In situations where children are involved, cooperation and compromise are often required to develop a new financial plan that keeps the children’s best interests at heart. For spouses who have trouble communicating amicably, the temptation to argue over money can be intense.
Another crucial component to creating new financial plans to coincide with filing for divorce is to close any credit card accounts that bear the names of both spouses. This allows each person to establish an individual line of credit and also helps prevent an angry spouse from going on a contentious spending spree. Anyone in California with questions regarding financial issues in divorce can seek answers through consultation with an experienced family law attorney.
Source: CNBC, “It’s January, also known as divorce month. Here’s how to cope“, Kelli B. Grant, Accessed on Jan. 18, 2017
