Photo of Professionals at McCoy Fatula, APC
Photo of Professionals at McCoy Fatula, APC

Are your purse strings feeling a tug from your divorce?

On Behalf of | Apr 13, 2017 | Divorce

Whatever led to the break-up of your marriage may no longer be as much of an issue as how to restore financial stability as you plan and prepare for your future. Let’s face it. Even in California households with dual-incomes, making ends meet in the modern world can be quite the challenge. Factor in one or more children and divorce, and you’ve got a whole new ball game with which to contend. Getting divorced does not necessarily have to mean you’re going broke.

However, most people face various types of financial challenges as they navigate divorce proceedings and enter single lifestyles after one or more years of marriage. If you’re a custodial parent, you obviously want to make sure you have adequate monetary resources to provide for your children’s basic needs. The court’s final decision-making authority is likely to bear significant impact on your future. Therefore, learning as much as you can ahead of time and being as prepared as possible are two key factors to help increase your chances of obtaining a favorable outcome.

Many people face these financial issues in divorce

It’s no secret divorce can be very stressful. You’ll likely make decisions and address matters outside your normal scope of living, such as who keeps the house, who lives with the children, who is responsible for credit card debt and more. The following list is comprised of common issues that often present the most challenge in divorce:

  • Marital assets: California happens to be one of only nine community property states in the nation. This means all marital assets are split 50/50 in divorce. If you signed a prenuptial agreement before marriage, it may contain specific instructions so certain assets are not subject to division (such as an inheritance intended solely for you).
  • Exchange of assets: The court may allow you and your spouse to barter assets (as long as the division remains equal in value). Many people “trade” assets, such as allowing one spouse to keep the car while the other gets the boat, etc.
  • Debt liability: Just as assets are divided 50/50 in community property states, so are debts. It’s crucial to be as prepared as possible (obtaining copies of credit reports, etc.) to maintain full disclosure and avoid carrying debts for which you are not responsible.
  • Tax problems: Questions like, “Who gets to claim the kids?” and other similar issues are common to divorce. There are specific laws regarding such matters. Many situations involve factors that require special consideration by the court.

In the long run, all you want is a fair and favorable settlement that keeps your children’s best interests at heart and allows you to move forward to a happy new lifestyle as a family. Many people successfully overcome obstacles and delays related to finances in divorce by aligning themselves with experienced outside support. For instance, a financial adviser can be a tremendous asset as you attempt to restore financial stability and accomplish your goals for the future.

Another person most people in similar situations like to have on their sides is a highly experienced family law attorney. Often a skilled negotiator, an experienced California attorney can address all aspects of the divorce process as they pertain to finances, child custody, parental rights and other family-related issues.

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