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Preparing for financial elements of divorce

A San Jose couple dealing with marital difficulties might decide that divorce is the only solution. However, this solution could create some serious financial challenges for both parties during and after the process. Financial problems often trigger thoughts of divorce, but it may not necessarily resolve those problems. It is important to understand areas of finances that might be impacted by terminating a marriage.

Owing money can be a trigger for marital disputes, and a failure to carefully address these debts during divorce could leave one or both parties in the middle of continuing financial difficulties. Loan agreements signed during the marriage are not terminated just because a marriage ends. It is important to be sure that debt resolution and responsibility is clearly identified and that one’s own credit history is protected from post-marital actions of the other party.

Community property states like California require assets that have been obtained during the marriage to be divided equally between the parties. An individual might want to seek the exemption of certain assets that belonged to them prior to the marriage, but this might be challenged by the other party if the asset in question has been commingled. For example, an inherited sum used to purchase a marital home or deposited into a joint account used by the other spouse could be viewed as a joint asset.

Child support is an important element of a divorce agreement, and both parties should make sure that the terms are clearly established and legally documented. Without good documentation, the agreement might not be enforceable. .Divorce legal issues can be challenging, but there are some alternative resolution options for those willing to work together to obtain a fair resolution. In many cases, both time and money can be saved by agreeing to mediation. Couples who agree to go through that process are still entitled to the representation of their respective attorneys.