There are important financial matters to be considered when a person decides to file for divorce in California. These include the distribution of assets and spousal maintenance among several other things. One important thing that anyone should do as they move through the divorce process is to conduct a complete review of finances, including both assets and debts.
With divorce rates for couples over the age of 50 rising, more people have to consider more carefully how a divorce will affect their finances. For many older couples who have been married for a number of years, the division of assets and debts is of particular importance. Couples with long marriages may have multiple savings and investment accounts to consider. Additionally there are retirement accounts to be divided that can alter long-term financial plans for some couples.
Another consideration for those going through a divorce in California may be the need to establish a credit history. This can be especially true for those who have been stay-at-home parents for the majority of a marriage. As soon as the decision to divorce is made, it may benefit these individuals to open bank accounts and credit cards in their name alone. Building a solid credit history can be vital when applying for a mortgage or other loan in the future.
Finally, for some couples in California who have substantial assets, mediation or collaborative divorce can be a good approach to take. In these cases, a focus is placed on negotiating in a less adversarial setting. These negotiations can cover all aspects of a divorce. However, like in more traditional methods that include litigation, if a couple cannot agree on an issue in the divorce process, the court may be asked to decide.
Source: AARP, “6 Ways to Protect Your Money In a Divorce,” Sid Kirchheimer, May 16, 2012