Kevin Qualls Family Law
Maintaining Professionalism. Preserving Civility. Finding Answers. Practical Guidance On Important Divorce And Custody Matters

Understanding some of the changes accompanying divorce

For people of Orange County, a divorce might be amicable or contentious, but the basic ways in which a divorce affects people's financial lives are quite similar. At the end of a marriage, parties must decide how to divide their assets and which assets are subject to division. Although California courts state that they wish former spouses to walk away from a divorce with an equitable share of property, someone could end up with less than what is fair if he or she does not understand their options.

Any property acquired during a marriage is considered marital property, and thus should be split between both parties. However, there are some exceptions. Generally, people may keep gifts they received or inherited assets that were bequeathed to them while married. Other assets are not an individual's property, such as retirement accounts in one person's name. A court can issue an order transferring benefits to the unnamed spouse.

People sometimes assume that one person should get the primary residence in the event of divorce. A house could be sold with the profits divided among both parties, or a house could remain in both names. If one person lives there, the other usually contributes to the mortgage, which could be part of an alimony or child support agreement. Another consideration is one's status for filing taxes. Before a divorce is final, couples may sometimes file jointly even if they are separated. This could allow for more deductions and tax breaks.

Figuring out the best course of action for everything from tax filing status to who, if anyone, should keep the house is crucial to one's financial future. An attorney could offer guidance in divorce negotiations for asset division and other terms.

Source: Nerd Wallet, "Divorce: Making Sense of the Confusion", J. Kevin Stophel, June 03, 2014

No Comments

Leave a comment
Comment Information

Kevin Qualls Family Law
625 The City Drive South
Suite 470
Orange, CA 92868
Toll Free: 800-783-1934
Fax: 714-750-5983
Map and Directions