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.
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.
In certain situations, more money really does equal more problems. In the case of a high asset divorce, a California couple might have to divide money from multiple income streams, complicated investments, businesses and other complex financial assets. However, couples do not have to go into marriage blindly trusting that they will figure out money matters if they end up divorcing. Here are a few ways in which a person can protect his or her finances and interests during divorce.
Having the financial security of a well-paying job can be extremely reassuring during difficult periods of life. Unfortunately, jobs are not always as permanent as they may seem. Losing a job during a high asset divorce is not an easy situation for California residents to find themselves in, but here are a few ways to minimize any negative consequences.
Real estate is often the biggest investment that people make, and most do not even realize it. Purchasing a home is a significant life step and investment that many California couples are happy to make during their marriage. However, depending on the type of property, its worth and personal feelings, dealing with real estate during a high asset divorce can be quite a task.
While virtually all divorces have to go through the same processes of property division, figuring out alimony and even child custody agreements when applicable, some divorces are far more involved than others. In a high asset divorce, a couple in California will generally encounter more complicated assets that are difficult to divide. For some, things like reputation could also be a complicating factor. Here are a few things to keep in mind when dealing with this type of situation.
Credit card rewards programs are a significant draw for those who use their cards responsibly. Many people in California use their credit cards strategically so as to optimize their rewards. However, during a high asset divorce, these become another complicated asset to value and divide.
Virtually no one in California weds with the intent of filing for divorce later on. However, the reality is that many couples are simply unhappy after spending years or even decades together, and the best option is to end the marriage. This might feel easier said than done, especially in the case of a high asset divorce that comes after decades spent together.
Prenuptial and postnuptial agreements are about far more than simplifying the divorce process or opening up new lines of communication. A carefully crafted pre or postnup can protect a person's assets, California business interests and far more. When it comes to dealing with a potentially high asset divorce, these protections can be essential for securing the best possible outcome.
Handling complicated assets, large bank accounts and financial investments is not for the faint of heart. When this much is on the line, California couples usually turn to professional advisers for help and guidance. But when it comes to a high asset divorce, should couples continue sharing the same advisers, or should they aim for a cleaner financial break?