When couples in California decide to pursue divorce as an option for resolving marital conflict assuredly, they are faced with a difficult road to recovering, maintaining and planning their financial future. In serious cases where couples are unable to reach any amicable negotiations, each person may be at a critical disadvantage in being able to maintain their financial stability.
If you and your spouse plan to divorce in 2019, you may be in for a rude awakening. According to CNBC, the new tax law, which Congress has set to take effect at the first of the year, will change who pays alimony on spousal support. Though lawmakers anticipate that all divorcing parties will feel the financial burden imposed by this new law, it is those in high-tax states such as California and New York that will take the greatest hit.
If you are one of the many people in California who is facing an impending divorce or who may even be in the midst of a divorce right now, you know all too well just how many details there are for you to address during this process. It can be easy to feel overwhelmed by what are the most pressing issues at the moment, such as whether or not you will sell your house, which spouse might keep the pets or how you will divide your retirement accounts. However, in addition to these things, you should also pay attention to other matters involving your estate planning.
If you live in California and either receive alimony or pay alimony, you should be keeping records of payments for tax purposes. Unfortunately, many divorced individuals are unaware of their alimony recordkeeping obligations and are often the subject of IRS scrutiny. You can avoid scrutiny by educating yourself on what documentation is and is not worth keeping.
You have probably heard through advertising or news stories that California is a "no-fault" state when it comes to divorce. It is for this very reason why so many that we here at Dianne Drew Butler & Associates, Inc. work with in Stockton express surprise when asked what their grounds for divorce are. At first glance, you too might also question why you need to cite grounds for divorce in a no-fault scenario. However, a quick explanation as to how these two concepts fit together might clear up your confusion.
The decision to divorce is a tough one to make, as once a couple makes the decision there is no going back. Many California couples are not ready for that kind of finality. If you and your spouse have decided that you need a time-out but are not quite sure if divorce is what you want, you may consider legal separation.
You knew that making the decision to divorce your spouse in California would take its toll from an emotional perspective. You were fully prepared to begin making important decisions about your future relating to your financial situation, living situation and child care situation. However, you never considered how significant amounts of stress could begin to alter your ability to stay focused, be effective in your job and continue to build and maintain solid relationships. Fortunately, there are healthy ways of combating the stress related to your divorce.
How is spousal support calculated in California divorces? Is it just a matter of plugging numbers into a formula? The answer, like many things about alimony in California, is somewhat complicated.
Ending a marriage is not easy, whether a divorce stems from the marriage running its course or more specific issues like infidelity. No matter what the circumstances leading up to the divorce are, however, many people prefer an amicable divorce to a contentious one. This is especially true when there are children involved.
The decision to get a divorce can often feel like a single, charged moment. It's likely been building for a while, but once you've finally made the decision, an entirely new chapter of your life begins. Even before proceedings have gotten underway, the divorce is real in your mind. It's tempting to embrace this feeling and change everything all at once, but the reality is that finalizing a divorce takes a while, typically six months in California. During that time, there are certain things you can't do, even though it may feel right to do them. You may be frustrated by these restrictions, but they're intended to protect all parties while negotiating the terms of the divorce.