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Riverside Family Law Blog

Outstanding debt can pose issues during divorce in California

One of the biggest stressors when it comes to going through a divorce in California is sorting out which spouse will get to keep which assets. However, a divorce can become even more complex if one party fails to abide by the obligations for repaying debt as provided in the couple’s divorce decree. A couple of tips can help a person to increase his or her chances of smoothly splitting up with their spouse.

First, it’s worth noting that creditors pay little attention to one’s divorce decree. Therefore, if two divorcing individuals have joint accounts for credit cards, they both are legally obligated to ensure that these debts are paid. This is typically true no matter what the divorce decree says.

Outcome of divorce can impact finances going forward

After filing for divorce, a person may struggle with varying emotions. The individual may be relieved that he or she finally took the necessary step to end an undesirable marriage; however, the person might also be worried about how decisions during the divorce will affect his or her finances in the future in California. This is especially true if one may be dealing with finances in regard to child custody issues as well.

It is wise for people to protect their assets when getting married. A prenuptial or post-nuptial agreement can be particularly helpful whether a person is getting married for the first time or has decided to remarry after a divorce. Sometimes it is not wise for individuals to combine all aspects of their finances when they are entering blended marriages. This is because one person might wish to pass down family heirlooms or assets that he or she brought into a new marriage -- but to his or her own children in particular.

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.

Making the transition from married to single can be shocking for a person who has been married for years or even decades. When people who are middle-aged or older dissolve their marriages, they might be worried about their spouses claiming a portion of their retirement benefits and other valuable assets. Losing this money can feel like salt in the wound at a time when one’s living expenses will increase due to the fact that he or she is now single.

Mediation, collaboration can help during California divorce

When two people have different opinions about how to approach matters during a divorce, a debate can naturally ensue, causing both individuals duress. However, if both people are willing to consider the other person’s needs in addition to looking at their own, they increase their chances of achieving an outcome that is mutually helpful. Property division and the distribution of assets are common areas that spark debate during divorce proceedings in California.

One way that a couple can try to work out their own divorce-related issues and thus avoid court intrusion is to embrace the idea of mediation. Mediation is ideal for couples that are looking for an alternative to litigation. Through this method, people can reach their own resolution rather than having a judge who doesn’t know them make life-changing decisions for them.

Divorce may affect one's work life in California

A divorce doesn’t just affect one’s personal and family life. It can also have a major effect on a person’s career. This is especially true for people who are public figures or entrepreneurs who are essentially their own brands. Even traditional employees can be affected by divorce if they allow their divorce matters to interfere with their work in California. A couple of tips can help workers to keep their divorces from putting their jobs and finances in jeopardy.

First, it’s paramount that individuals physically care for themselves. This includes getting a proper amount of sleep, exercising and eating correctly. Lack of sleep and healthy foods can drain energy and cause feelings of melancholy, potentially resulting in poor business decisions. Spending time with comrades or getting a massage may help to improve the ability to handle divorce-related stress.

Divorce may stem from financial disagreements

When a relationship is going well in California, it is actually the ideal time to discuss the one thing that breaks up a large percentage of marriages today -- finances. When two single individuals are in love, they’re naturally more open to each other’s viewpoints and wishes. Talking about money is paramount both before and during marriage because differences in how two people spend money can weigh on a marital union, thus potentially causing divorce.

One 2009 study found that two married people who argue about their finances once each week had a 30 percent higher chance of getting divorced than did those who fought about money only occasionally each month. Those who can discuss money matters in an amicable way before problems arise are more likely to prevent disagreements that can lead to divorce. It’s best if this discussion is comprehensive, meaning that both people are willing to unveil both their strengths and their weaknesses when it comes to their finances.

Knowing the law can help wealthy people facing divorce

There comes a time when two people have been married for years realize that spending their lives apart may be a wiser alternative. However, people with significant assets typically fear the process of divorce, as they are afraid that they will end up losing a significant portion of their valuables. A couple of tips can help these individuals to be as prepared as possible for their high-asset divorce proceeding in California.

First, people sometimes immediately assume that a court ruling will end up meeting their initial expectations. This doesn’t always happen. If two parties can avoid court when trying to reach a divorce settlement, they have a much higher chance of achieving their goals and keeping their divorce matters private. Going to court means that one’s divorce drama and even net-worth information could end up in the newspaper.

Prenuptial agreement may help Kanye, Kim in event of divorce

Many people in California may have learned about Kanye West and Kim Kardashian’s recent marriage. Although the celebrities may have been blissful on their wedding day, this bliss may not last very long for a variety of factors, according to modern research. A prenuptial agreement may help a person who is getting married in our state to protect his or her assets in the event that a divorce happens.

Like Kardashian, many people are already divorced before getting married to new spouses. In Kardashian’s case, she had been divorced twice prior to connecting with West. Previous divorces increases a person’s chances of getting divorced again in a future marriage.

Health insurance may be worth considering during divorce

When people are ready to end their marriages, they may be eager to go straight to filing the divorce papers. This is particularly true when the two parties can’t find common ground on important areas of their marriage, such as the finances. However, timing plays an important part in filing for divorce in California, particularly for an individual who depends on his or her spouse for health insurance.

For instance, one reason a person may wish to delay a divorce has to do with the couple’s health insurance situation. One person may be either uninsured or uninsurable, and may thus be depending on the other party’s health insurance policy to meet his or her health needs. In addition, the cost of health insurance might prohibit one spouse from divorcing and pursuing his or her own policy.

Divorce tips include attention to retirement accounts, property

Just as preparing for a California wedding can be highly stressful, so can getting ready for a divorce. This is especially true for those who have a large amount of shared assets and property to divide with a spouse. A few tips can help a person to pay attention to his or her most important assets in a marriage, as well as to prepare financially for life after divorce.

After a divorce, one would be wise to remember to change any beneficiary designations on his or her retirement accounts. Otherwise, in the event of one’s death, this retirement money may end up in an ex-spouse’s hands. In addition, it may help to recalculate the amount of money one has and needs for retirement following the divorce. This is particularly important if one was ordered to transfer money from a retirement account to an ex-spouse during the asset distribution phase of the divorce proceeding.

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