When reviewing your finances in preparation for a divorce, you'll no doubt remember all the big expenses: mortgage or rent, car payment, child care or education costs, utilities, student loans and even cellphone bills. But you shouldn't overlook one major part of your financial responsibilities: insurance.
Do I have to divorce my insurance, too?
Divorce-related choices may affect standard of living, income
Getting divorced can be one of the most stressful events in a person's life. Two people in California may find themselves in disagreement about how their assets should be split and even how issues such as child custody should be handled. Unfortunately, the difficulties of divorce can continue to plague a person even years after the marital dissolution if a person fails to make educated decisions regarding the divorce settlement.
Tax implications of divorce decisions are wise to consider
Navigating the process of divorce can be strenuous because of the financial and emotional components of this type of family law proceeding. One of the biggest areas of contention during a divorce in California is the financial assets. When divorcing couples focus on how to split their marital assets, they sometimes concentrate on making sure that their immediate needs are met but fail to think about how their decisions today may affect their finances in the long run.
Splitting up 401(k) during divorce requires core steps
One of the most challenging parts of going through a divorce is preparing for the financial aftermath of the dissolution of the marriage. Divorcing individuals in California may be especially concerned about how the divorce will impact their long-term retirement plans. However, splitting up a 401(k) as part of a divorce settlement can be less painful if an individual takes the proper steps.
Divorce settlement may have tax consequences
The emotional wounds of divorce can understandably be difficult to cope with, but the financial wounds can also be devastating. Unfortunately, these financial wounds sometimes develop simply because a person is not informed about how certain divorce settlements will affect them long-term. A couple of tips may help people going through the divorce process in California to avoid experiencing related money problems in the future, particularly when it comes to paying taxes.
Financial decisions during divorce can affect a person's future
Divorce can be an overwhelming time financially, as the decisions one makes during divorce proceedings can have long-term implications. Failure to analyze a potential divorce settlement from all angles may cause a person to hurt him or herself monetarily in the long run. A few tips, however, may help divorcing individuals in California safeguard their finances by allowing them to make educated decisions.
Divorce can have long-term financial implications
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.
Prenuptial agreement may offer protection during divorce
When people are preparing to get married and share their lives with another individual, they may feel a mixture of excitement and fear. Their biggest concern is if things don't work out as planned in the marriage. Having a prenuptial agreement can help to mitigate some of these fears and protect one's assets in the event of a divorce in California.
Financial planning is wise during and after divorce
When people go through a divorce, the financial pendulum usually swings one way or the other. For some in California, they may walk away from the marriage financially strapped. Others might actually gain more wealth and thus have more to manage. Financial planning is paramount in either case, as it may help a person to make the most of his or her monetary situation following divorce.
Divorce decisions could harm retirement plans
As employees near retirement in California, they may also be faced with having to file for divorce as a result of irreconcilable differences with their spouses. When getting a divorce, it can be easy to overlook critical details. Several areas require attention during this type of family law proceeding in order to retain as many assets as possible, thus potentially having a more financially secure retirement.
