When a California couple contemplates getting a divorce, there are typically countless issues to resolve. Certainly, finances are at the forefront of many discussions. When the couple was together, their income and assets — as well as their expenses and debts — were co-mingled. The question of property division is paramount in determining what the financial situations of both parties will look like in the future.
Experts stress the importance of thoroughly reviewing all aspects of the couple’s finances. A couple may have assets like savings accounts, cash, real estate, stocks or savings bonds. It is critical to understand the tax implications of each type of asset. Also, it is worth noting that a particular asset may have a greater impact on a certain spouse. Retirement accounts have very specific guidelines regarding how they should be divided in a divorce.
Debts should also be carefully scrutinized in the divorce proceedings. While the spouse who keeps an asset is generally the one who will pay the related debt, both parties are still obligated to pay it if it was jointly owned. The financial obligation is not terminated in a divorce. Credit card debt should also be analyzed. Pay close attention to the balances, as well as the names on the accounts and who else has charging privileges on them.
How taxes are filed following a divorce must be considered. Who files as head of household or custodial parent can have a significant impact on tax burdens. Also, a couple needs to review how alimony or child support payments may affect their taxable incomes.
A California divorce attorney can provide valuable guidance throughout every step of the legal process, including issues of property division. An experienced lawyer will consider a client’s needs, both currently and for the future. Every effort will be made to achieve the most beneficial outcome in the divorce proceedings for a client.