Outside of custody, division of finance and assets during divorce is probably the most difficult part of the process. Marriage creates many entanglements and community property. I read an article recently that discusses some of the nuances of finances, assets, and divorce.
What are the elements of finance that fall into consideration? Well, financial assets include cash, savings accounts, checking accounts, certificates of deposit, money-market accounts, stocks, bonds, real estate investment trusts (REITs), mutual funds and savings bonds. Some of these have long term tax implications. Equalizing payments should take this into consideration.
Real estate is another area of confusion and concern. The duration of marriage may make a difference based on jurisdiction. Also, when the property was purchase (before/during marriage) and also how the payments were funded for the property can all affect the division of this asset. The process is not always as simple an equity split. Additionally, one spouse “buying” out the other spouse can be complicated when a new mortgage needs to be obtained to remove the obligation of one party from an existing mortgage. These are all things that should be discussed with a family law attorney.
Recent changes in tax laws have significantly affected the process of spousal support/child support and what can and cannot be deducted in your return when filing for taxes. Again, knowledgeable advice from a family law attorney will be key here to understanding how the process will play out.
An often overlooked component of divorces is community debt. Most people would probably see that a joint credit card could be an issue in the process of divorce. Should one spouse decide to rack up significant charges, the recourse to getting the funds out of that spouse through family court to pay can be frustrating. Also, to touch on the mortgage aspect again: just because one spouse is awarded the house, and is making payments on it on his/her own, does NOT remove the obligation to a creditor if both parties are on the mortgage.
Finances vary widely from situation to situation. If you feel there may be some concerns, it is important to find a family law attorney to help you understand what your recourse is, and how to financially protect yourself and minimize risk in divorce.
If there are any legal questions you may have, I encourage you to, please contact my San Jose Divorce Lawyer office. My San Jose Family Lawyer offices assists many people who are going through family law related issues. We have many Affordable San Jose Divorce Lawyer solutions for many different budgets. San Jose unbundled limited scope family lawyer.
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