There are some who see January as a new year in more ways than one. While most people are counting the cost of Christmas, others decide to initiate divorce proceedings. Across the country, divorce attorneys experience an increase in business during each January of around 25 per cent, rising to as much as 50 per cent. How may California residents who are considering this route prepare themselves prior to taking action?
Thorough research will assist one greatly. Understanding one’s financial position is essential, as this will not only affect costs incurred during the divorce but also in the future. If substantial wealth is involved, then it usually makes sense to consult financial advisers. Gathering together all information relating to assets, debts and insurance policies will allow one to create a more accurate picture.
There are also legal implications to consider. For the purpose of tax returns, it is one’s marital status on Dec. 31 which determines liabilities for the entire tax year. Other things that can also affect a divorce settlement are prenuptial agreements, inheritances and businesses that have been established during the marriage. Filing in a community property state such as California will also have a bearing on property division.
Using emotion as the basis to divorce may seem natural, but it would be unwise to rely solely on one’s feelings. As circumstances differ from one couple to the next, it is important to ensure that one gets the appropriate advice. Taking the time to prepare the way prior to taking action may smooth the legal process and help to secure a better future.
Source: marketwatch.com, “Divorcing in 2016? Get your affairs in order first“, Quentin Fottrell, Dec. 12, 2015