Since we’re talking about California divorce this week, I thought I’d add a note on finances, since they seem to be at least one of the top reasons for divorce. Untangling your financial lives can be really tough, even out of court. Here are some things to consider:
Tax implications – what are the tax implications of your filing status as you go through divorce? What are the implications of your asset division?
Expert fees – what are your attorney/accountant/child custody evaluator/financial advisor fees going to be?
Support – there are tax implications to paying and receiving child and spousal (or family) support in California. If you just take the highest/lowest amount because funds are tight, you may be in trouble later.
But the divorce process is just the beginning. You also have to consider the financial aspects of your post-divorce life. You need to consider these things as soon as possible, and not wait until it’s happened.
Cost of living adjustment – here’s still the same bills, but only one of you is paying them.
Change in auto/home/health insurance costs
Increase in “combined” costs. Did you share a Netflix account?
Lower savings and discretionary income due to the tightened financial belt.
Loss of assets in the divorce – that retirement home may be gone.
Needing/getting new employment – what do you do if you’ve never worked?
Reduced retirement income or savings – you may have thought you were set for retirement…now what?
The theme for this week seems to be planning. Planning is you’re thinking of divorce, and planning if you’re in the process of divorce. Don’t let the process or anything that happens in the process to take you by surprise. It doesn’t have to if you know what to look for and where to look. Need more help? Click here to make an online appointment.