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High Asset Divorce Archives

Social Security spouse benefits and divorce

California residents going through the divorce process understand that a divorce is going to have an impact on their financial well-being. As opposed to living on two incomes, the divorcing spouses will now need to rely solely on their income. This can require one or both of the spouses making some drastic changes in their standard of living. Some individuals may be concerned about the impact their divorce will have on their ability to collect Social Security payments from their ex-spouse.

Financial independence after divorce

As part of the divorce process, an individual in California will want to make sure that all joint debts are paid off in full. Preferably, debts will be paid off prior to the split occurring. However, it may be necessary to divide up joint debts as part of a divorce settlement. It is important to note that creditors may come after either person listed on a joint debt regardless of who was required to pay it as part of the divorce decree.

Financial steps to take in a divorce

People in California who are getting a divorce might need to take a number of steps to protect themselves financially. First, a person may want to talk to an attorney about the financial aspect of the divorce even if a decision has not yet been made. The person might also want to pull and review credit reports.

Community property states and property division

A person in San Jose who is getting a divorce will be subject to California community property laws. Under these laws, property is usually divided 50/50. However, when one California woman asked her husband for a divorce, he hoped to get their home and half of her 401(k). While he probably was entitled to half of the 401(k) although his wife had been the main breadwinner for the past 10 years, the house would probably be split between the two of them.

What to do if a spouse takes joint assets

A spouse's unusual or secretive financial activity could indicate that the spouse is considering divorce, or it could simply be an effort to protect a couple's money if the other spouse is irresponsible. In San Jose, if a couple does divorce, it is under community property laws, so moving marital assets to an individual account will usually not affect how property is divided. However, a person whose spouse is using shared marital assets for an individual account may have legal concerns.

Financial silver linings in divorce cases

Individuals in San Jose who are approaching or going through divorce may fear the financial downsides. The divorce process itself can be expensive, and the loss of a spouse's income can make things more difficult financially. There are, however, potential financial silver linings associated with divorce.

Saving retirement accounts during a California divorce

Divorce is a trying process, and it's one that approximately 1.2 million married couples go through annually. Beyond the mental and emotional stress, divorce can significantly complicate finances, especially when it comes to the retirements of the parties.

What to avoid when dividing an IRA because of divorce

When money is taken out of an IRA, it is subject to income taxes, and it may also be subject to a 10 percent early withdrawal penalty. This penalty still applies even if a California resident makes a withdrawal pursuant to a divorce decree. To avoid paying the 10 percent early withdrawal penalty, the money should be sent directly to the other person's IRA.

Divorce and finances: how to prepare

For California couples who are ending their marriage, property division negotiations can become complicated, and when one or both parties are unsure of what their financial situation will look like after the divorce, they can become crucial. There are ways for people to prepare for this before the process begins, however.

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