Divorce is not generally an experience that people in California try to rush through, especially when they have to come to agreements on how to separate their joint assets and liabilities. This process can take some time and requires concessions and negotiations along the way. However, an imminent change to the federal tax laws may well be changing all of this, at least for the rest of the 2018 calendar year.
As someone navigating your way through a California divorce, you may find that some steps in the process prove far easier than others. While dividing, say, home equity and debt between you and your soon-to-be-former partner can, in some cases, prove seamless, you may find that things become more complicated when you or your spouse have considerable assets or especially complex financial portfolios. In such situations, you may find it beneficial to enlist the aid of a forensic accountant who can delve deeper into your financial affairs in an effort to help you get your fair share.
In a community property state like California, you may feel a sense of relief during your divorce, knowing that assets will be divided equally between you and your spouse. However, what if your soon-to-be-ex is concealing assets from the court during the divorce process? This could result in your ex keeping significant assets from you, which could be particularly devastating if you will have difficulty making ends meet on a single income.
Filing for divorce in California can be an emotional ordeal. In addition to dealing with issues involving child custody, alimony and child support payments, you’ll have to separate the community property that was accumulated during the time you were married. Also referred to as marital property, community property, consists of a myriad of different items and assets. Some you may not have thought about when it comes time to negotiate the terms of the divorce settlement. By understanding what constitutes community property, you can ensure you receive everything you are entitled to in the settlement.
Although you may feel alone getting a divorce in your 50s or 60s, your experience is far from uncommon. “Gray divorce,” the popular term for divorce among the older crowd, happens more today than you might expect. You and other Californians who are divorcing at the same time you would be preparing for retirement should understand the unique challenges that come from ending a marriage later in life, especially for women.
At the Law Office of Lily L. Huang in California, we know that times have changed when it comes to alimony. Whereas these moneys once were paid only by men to their ex-wives, today both men and women can receive alimony when they divorce. Consequently, the payments no longer go by the name of alimony, but rather spousal support. In fact, when a woman makes these payments to her ex-husband, the Women’s Institute for Financial Education says their nickname is manimony.
Divorces have a reputation for being highly contested affairs, and when it comes to California spouses that have earned a lot of money, sometimes a divorcing spouse may engage in fraud to hide assets so they cannot be distributed as part of a divorce judgment. The Huffington Post details ways in which financial fraud during a divorce can be revealed.
While many California couples own and run a business together without incident, the business could be contested in a divorce proceeding if the couple ever decides to end their marriage. Some couples have significant wealth invested in the business, and it is possible the business could be sold to finance a divorce settlement. However, according to Marketwatch, there are several avenues that a spouse or spouses can take to protect a business from divorce fallout.
California residents facing delinquent support payments face a number of options to try and collect. According to the Internal Revenue Service, a qualified domestic relations order issued by a judge can spell out how assets held in pensions or retirement plans are to be dispersed. However, a QDRO is not only used to divide a pension during a divorce proceeding, but can also be used to assist a spouse if that person is not receiving required support payments.
Due to the increasing trend of older people getting a divorce, or “gray divorces” as they are popularly called, older California residents are becoming increasingly concerned that divorce can impact their retirement accounts. Some fear that an ex-spouse might have hidden or moved assets at some point during or before the divorce. Fortunately, there is a way to find out if your retirement assets have been altered by a former spouse.