Staying in an unhappy marriage is a burden that no one in California should have to bear. However, couples over the age of 50 may not feel as if they have any other choice. Even for a person who is relatively well-off may worry about what finances will look like after a divorce. Much of this worry centers around how money and other valuable assets will be split during property division.
Married couples spend years and even decades accumulating joint assets. From family homes to shared vehicles to living room furniture, the number of assets that are considered community property can be quite high. This can be overwhelming when going through the divorce process. However, having a better understanding of California state law in regard to property division ease some people's concerns.
Property division can be extremely complicated, especially when a California has complex assets to split. A divorcing couple might pay particular attention to the tax implications of any property settlement, but they may overlook another potential financial problem in a high asset divorce. Whereas a person paying alimony could once deduct the amount on his or her taxes, those payments are no longer deductible. Instead, individuals will need to explore other options for minimizing taxes after a divorce.
Inheritances are often deeply personal, and most have significant amounts of both financial and emotional wealth. For these reasons, protecting an inheritance during marriage and divorce is essential. It is not uncommon for a California resident to file for divorce and then discover that his or her inheritance is considered community property, and as such subject to property division.
Credit scores have the ability to govern many aspects of a person's life. From securing an auto loan with a favorable interest rate to getting a mortgage, living with a low credit score can cut off access to a wide range of financial opportunities. In a high asset divorce, there are many factors that can affect a person's credit score. While filing for divorce does not show up on credit reports, actions taken during and after can certainly have a negative impact.