In today's world a good credit score is a very valuable asset. It can affect one's ability to get credit and can also be a factor in obtaining employment. A married couple often builds a credit history jointly through shared credit cards, mortgages and car loans. If the couple divorces, these debts may be considered part of community property in California.
Dividing up debt does not follow absolute rules in a divorce proceeding. Even though one party assumes all of the debt by being the only person named on a credit card account, for example, courts will sometimes order that the other party pay some or all of the account balance. Courts generally have the authority to divide assets and debt with a certain discretionary authority intended to achieve fairness in divorce. California is a community property state and thus the rules for debt and asset division are somewhat at variance with the majority of states.
When a couple decides to move forward with divorce, it is a decision that will being many significant changes to to the lives of both parties. Division of marital property and how credit card debt is handled will affect a person's financial stability for years to come. California is a community property state, which means both spouses are considered equally responsible for any credit card debt accumulated over the course of the marriage until the date of separation.
California residents may be aware that former NY Mayor Rudy Giuliani and his wife Judith are moving through a high asset divorce. As they navigate that process, the couple are at odds over how much money Mr. Giuliani is bringing in. According to his 2017 tax returns, he made $9.5 million last year. As the couple negotiate how to divide property, however, Giuliani claims his income has dropped off drastically this year.
A prenuptial agreement may not be the most romantic part of planning for a wedding; however, many California couples discover that it is an essential part of the planning process. As the couple is planning to say "I do," they are not anticipating the end of their relationship. Yet, research shows that approximately half of all marriages end in divorce; this number is even higher for second and third marriages. By discussing financial and property division matters and expectations prior to the wedding, the couple can lay a foundation for communication and planning for future needs.
School will be starting soon, and then the holidays will be here. Would it be better to file for divorce now or wait until the New Year? These are common thoughts that often run through one's head while making the decision to divorce. In addition to these considerations, many California residents also find it advisable to consider the tax implications associated with the various decisions that need to be made.
A wedding is an exciting event. The bride and groom spend countless hours planning and preparing for this glorious event. Yet, all too often, they spend more time planning for the wedding than they do planning for the marriage. In today's society, many California engaged couples bring with them significant assets, children from a previous relationship and even a possible interest in an ongoing business. In light of these aspects, the couple will also want to spend time discussing how decisions will be made throughout the marriage, their philosophy regarding spending and budgeting as well as how property division will be addressed in case of death or divorce.
Advances in technology are wonderful. While they can be enormously beneficial to individuals and society, they can also be abused and used for illegal and immoral purposes. California residents who are going through divorce may be aware of a particular technology that is sometimes employed in the creation of hidden assets.
Mortgages and realty ownership can be complicated at the best of times. When a California couple divorce, the marital home may be dealt with in a number of ways. If there is no definite severing of rights and responsibilities on mortgage agreements and realty deeds, then problems may arise again in respect of property division, sometimes years following finalization of the divorce.
Money, or the love of it, may or may not be the root of all evil: however, there is no doubt that it can cause many an argument. When California residents divorce, an individual retirement account may be part of the property division. What may start off as an amicable agreement could potentially end up as a bone of contention further down the line. A woman from an unknown state was divorced from her husband about a year ago, and she is now questioning whether she should have handled things differently regarding the division of a shared individual retirement account with her ex-husband.
Marriage may be intended to be an equal partnership, but the division of labor is not often entirely fair. There can be a significant difference between a spouse who is a genuine homemaker and one who simply leeches from the other. For some California residents, making the decision to divorce a spouse who contributes nothing to the marriage may be accompanied by a desire to ensure that the other party does not benefit equally in the property division as a result.
Many people have fond memories of their childhood home. For California couples who are facing divorce, the family home is often sold as part of the property division, and this is usually the least complicated option. Any children affected by the marriage breakdown may find it difficult initially to adjust to new living arrangements; however, there may be a variety of reasons why one spouse might choose to remain in the marital home.
It is natural to want to see fairness and justice prevail. When couples divorce, it can be common for emotions to spiral out of control, skewing one's view of what fairness looks like. The community property assessment may become a battleground where California residents can find that spouses are devious – or desperate – enough to create hidden assets.
They say that one should not mix business and pleasure, yet couples will often set up a business together. This can work extremely well until divorce strikes, at which point things have the potential to deteriorate very quickly. What options might California residents consider with this aspect of property division?
Hindsight can be a wonderful thing, but sadly it usually comes too late for one to act upon it. In the majority of divorce cases, the division of assets will be relatively simple; however, where there is a large amount of wealth involved it may be necessary to seek professional financial advice. When it comes to property division, many California residents make the mistake of assuming that the most valuable assets are the most obvious ones.
The Boy Scouts of America have a motto: be prepared. This is good advice for most areas of life, especially if one is considering or has already initiated divorce proceedings. When things are going well within a marriage, one may feel a sense of security that belies the possibility that matters may not be as they appear. One may think that only wealthy California residents need to plan carefully about property division in the event of a divorce, but the truth is that this is something that affects people at every financial level.
Hindsight is a wonderful thing. Many California residents who have gone through divorce may wish that they could have had the benefit of it. For those who are currently thinking about initiating divorce proceedings, there are some things that are worth bearing in mind in order to achieve the best settlement when it comes to community property and the division of assets.
The economic climate can affect many aspects of making the decision to divorce. Making the transition from a joint household to a single household can be financially difficult, and many couples have chosen to remain in the marital home as roommates until such time as each one is able to afford the financial burden of a single-income household. The California Supreme Court recently made a ruling regarding separate property assessment and cohabitation that will give pause to couples facing divorce.
One might naturally assume that there will be no further problems after the finalization of one's divorce. While this may often be the case, there are certain situations in which further discussion or cooperation may be necessary. There can be unforeseen tax implications when filing returns with the Franchise Tax Board, even if one thinks tax issues have been addressed in a divorce agreement. The California Senate recently voted, with unanimous approval, on a piece of legislation designed to uphold divorce agreements in relation to tax liabilities.
When couples are married, they may discuss many topics regarding their relationship. The number of children each spouse would like and the neighborhood in which they would like to live may come high on the list, but it may come as a surprise to learn that finance is a subject often overlooked. In a community property state such as California, financial responsibilities do not lie solely with the spouse who incurs them, and the tax implications can come as an unwelcome shock during tax season both during and following divorce.