On average, 40 to 50 percent of marriages will end prematurely, and some will end in a financial mess. When couples call it quits, what happens to the debt incurred during the marriage and who determines how it is distributed after a divorce? This may be determined by where one lives. California is one of nine community property states that recognizes that all debts are the responsibility of both parties.
During the process of ending a marriage, is it best to separate finances or file taxes together as a married couple? According to the IRS, couples in the process of divorce but have not yet finalized are still eligible to file taxes together as a married couple. If filing separately, both must either take the standard deductions or both must itemize. In California and other states, couples can file joint tax returns if they are still married on the last day of the previous year.
Ending a marriage is rarely a pleasant experience. With new changes coming in the form of scrapping the current alimony tax laws, negotiations could get even more ugly. In California, the change in tax incentives for alimony payments could have lasting consequences for other payments such as child support that is often calculated together during divorce negotiations.
The dissolution of marriage at any age can be unnerving and ultimately affect one’s thought process. Divorce is never easy and often causes increased stress and can take an emotional toll on a person. Being well organized and researching the state laws as they apply to divorce can help prepare for the often-tumultuous times ahead. In California, divorces over age 50 have doubled in the past 25 years.
January has been deemed the most popular month for married couples to split up. Records show that divorce filings are one third higher in January than in other months because couples do not want to ruin holiday celebrations. In California and other states, the first week in January usually sees a substantial uptake in divorce inquiries.
A substantial part of income for retirees comes from Social Security benefits. After years of paying into the program, there is no reason to settle for less than the highest amount one can get. Sometimes, one spouse may receive a higher benefit than the other. In California and other states, ex-wives or husbands may be entitled to spousal benefits from Social Security after a divorce.
A new bride vowed to love, honor and cherish her new husband and her new stepson. She also vowed to do the same regarding the child's mother. During her marriage ceremony, the bride pledged her vows to her husband and included his former girlfriend and the son they have together in her new life and role as stepmom. In California, parents are taking a careful look at what is in the best interest of the child by co-parenting together.
A proposed tax overhaul was delivered to President Donald Trump who promptly signed it into law. The tax plan is set to touch every facet of life, including spousal support. The 75–year old tax deduction, sacred to those who pay alimony, will be scrapped effective January 1, 2019. In California and every other state, divorce negotiations may be harder and may lead to less alimony being paid.
When a marriage ends, it can be both emotionally and financially crippling. It may be so painful that one cannot think clearly about making critical financial decisions. Dividing household contents, the marital home, bank accounts and vehicles, can take a toll on all parties involved. In California, proper planning can help safeguard assets during a divorce to secure financial well-being.
Studies show that one in four couples will end their marriage after the age of 50. Compare that to twenty years ago when one in 10 couples with a spouse over the age of 50 divorced. Some experts agree that with the surge in late-in-life break-ups, so-called gray divorces have become like an epidemic. In California, people are living longer and have more opportunities to grow apart. Studies show that social customs have changed, and there are fewer stigmas about divorce and living life as a single person.