Marriages end for a multitude of reasons. In most divorces, both parties will feel some financial impact. This is especially true in high-asset divorces. For those in California who are ending their marriages, here are some important financial areas to inspect before beginning the divorce process.
Financial assets
For high net-worth marriages, there will be significant financial assets that will need to be examined. Typically, these include bank accounts, mutual funds, stocks, retirement plans, life insurance, pensions, etc. A big thing to remember is there could be tax implications associated with financial assets along with possible penalties for early distribution.
Debt
In most instances, spouses accrued debt during their marriage. During divorce proceedings, marital debt, such as a mortgage, may be negotiated or rearranged from both individuals to only one. However, this may necessitate re-qualification and also brings about the possibility of denial. Unfortunately, the credit scores of both individuals can take a hit during the proceedings, which could jeopardize financial freedom.
Obtaining legal assistance
Navigating divorce proceedings is not only stressful but often financially challenging. Fortunately, there are several steps that individuals can take early on to reduce the costs and worries that usually come with the dissolution of a marriage. Any person in California who has questions about divorce could obtain assistance by meeting with a knowledgeable legal professional. Speaking with a lawyer does not mean a person has to get divorced or that it is an inevitability. However, an experienced family law attorney can provide invaluable knowledge to help individuals make informed decisions while protecting personal interests.
