No matter what a person’s income level is, getting divorced can be financially destructive. The divorce process can deal a huge blow to a person’s finances, especially if he or she makes ill-informed decisions regarding important matters such as property division and asset distribution. A few tips can help people to make decisions that will lead to personally favorable results following a divorce in California.
First, it is necessary to create a detailed statement listing all of one’s living expenses, assets and income. It is worth noting that the process may be particularly tricky for couples who own a family business or another type of major joint asset. Financial documents, such as those regarding retirement benefits and deferred compensation statements, are helpful to gather as well.
All of this information gives divorcing individuals an idea of what they own and what assets and debts will have to be split during the process of dissolving their marriages. Various divorce settlements have different tax and financial implications. Appropriate legal guidance may help people to determine the short- and long-term financial benefits and disadvantages of the settlement one wishes to pursue.
When two people are getting a divorce in California, it may benefit them to try to reach a mutually beneficial settlement through the process of divorce negotiation or mediation. This allows them to avoid the often stressful process of litigation. However, if they cannot agree on how to split their shared assets and property, a judge will step in and make the ultimate decision for them.
Source: CNBC, “Getting divorced without breaking the bank“, Susan Caminiti, Feb. 9, 2015