A chief stressor for individuals during a California divorce is money. After all, the choices a person makes in the heat of the moment during a divorce can have long-term repercussions. One of the biggest mistakes that divorcing individuals make when it comes to their finances is not knowing where their assets are.
The division of assets is essentially simple math, with even child support and alimony typically being dictated by formulas. However, this math becomes complicated when a person does not understand his or her household’s assets or the family business’s assets if one exists. As a result, these individuals will not understand the basis for any concessions that they may be called to make during the divorce proceeding.
It is wise to review all of the family’s financial accounts before going into the negotiating room with a soon-to-be-ex. If this is not possible, hiring a qualified forensic accountant may be beneficial. Forensic accountants have the ability to dig through a wide range of accounts, including IRAs and 401(k)s, and they can also go back and review tax records. The more information a person knows about his or her household and business finances, the more likely he or she is to make personally favorable decisions during a divorce proceeding.
Financial matters related to the dissolution of a marriage in California can be complex and overwhelming. However, proper legal guidance may enable a person to navigate the divorce process and arrive at a mutually beneficial settlement with his or her future ex. If two people are unable to find common ground through divorce negotiation or mediation, a judge will have to decide for them how their assets will be divided.
Source: mainstreet.com, “3 Worst Financial Mistakes You Can Make in a Divorce“, Kathryn Tuggle, May 28, 2015