When people in California decide to divorce, the financial implications can be serious and long-lasting. This is especially true at the end of longer marriages where large assets like retirement funds are divided. As a result, people may have to make significant changes to how they plan for the future. There are some key points that people can keep in mind to help them emerge from the divorce process with a solid plan to prepare for the future.
A divorce in California involves the division of the spouses' marital assets and debts. Although the state views marital assets as community property that should be divided equally upon the dissolution of marriage, family law carves out some special rules for student loan debt.
There are so many consequential aspects to a divorce. Who gets custody of the kids? What happens to the family home or car? Another important consideration is who gets to keep the pet. And thanks to a new law in California, the courts treat pets more like children than property in divorce proceedings.
An increasing number of young people in California and across the country are facing growing credit card debt and bills that are difficult to repay. Many millennials became adults during the financial crisis of 2008 and the immediate aftermath, and they became known for avoiding credit cards and other forms of personal debt. At the same time, many already struggle with significant amounts of student loan debt, especially as the cost of university has skyrocketed in the United States. However, millennials have also experienced growing incomes and professional salaries that are often accompanied by solicitations from credit card companies.
Children need the support of their parents physically, mentally and emotionally. After a divorce, the court will likely put a court-ordered physical child support payment arrangement in place.
Parents in California and elsewhere will ideally create a plan to share custody of their children over the summer months as early as possible. A set plan can reduce stress for both the adults and the children who must live with them. The first step in determining who gets custody of a child and when is consulting the parenting plan. In many cases, this will only be a starting point in terms of what the summer months will look like.