Business owners in California may want to consider a prenuptial agreement to protect their company. A prenup can establish the value of the business at the time of the marriage to help ensure that only value gained during the marriage is subject to division in case of a divorce.
It's not uncommon today for older California couples to end a marriage. The divorce rate for Americans 50 and over has doubled since 1990. Amazon founder Jeff Bezos, who is over 50, came through his divorce relatively unscathed financially. Other individuals, however, may not be so lucky, regardless of what kind of assets are involved.
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.
When deciding what should happen to the family home, many divorcing couples in California will opt for the property to remain with one of the spouses. After this decision is made, there are other factors that both parties will still have to address regarding the home and the mortgage.
A partner hiding assets in a marriage is something that has occurred as long as there have been marriages. Concealing assets is a sign of betrayal. In some cases, it can be a sign of marital infidelity. Tax returns can provide the key to determine if a spouse in California has not been honest.
Older married residents of California may be interested to learn that 25 percent of the people in the United States who get a divorce are at least 50 years old. This is as the rates of divorce for other age groups have either become constant or have dropped.
California couples with a high amount of wealth who decide to divorce have a lot of obstacles when it comes to the legal process. Everything from deciding who gets how much of a business to the custody of children can be up for debate, potentially making things very difficult. In order to avoid as much hassle as possible, it's important for each party to have very focused priorities. No one involved is going to get everything they want, but being willing to compromise on more trivial points can provide leverage on the important topics.
California couples may be concerned about how the new tax rules may affect their plans to divorce. These changes, included in the 2017 tax bill, were scheduled to go into effect in 2019. This spurred many unhappy couples to escalate their divorce timelines in order to maintain the current tax system. Couples who finalize their divorces in 2018 will continue to use the old system, but divorces finalized after the new year will operate according to the new rules.
Judges in California will soon have more issues to consider when awarding pet custody in divorce cases. A new state law that was signed by Governor Jerry Brown on October 18 allows judges to base their pet custody decisions on matters pertaining to the pet's well-being.