Married couples going through a divorce that is not yet final on the last day of the year are often confused about how to file their tax returns. The major thing to realize is that they are still married in the eyes of the IRS for their federal taxes and in the eyes of the California Franchise Tax Board for filing California taxes. This means they cannot file under single status because they … [Read more...] about Tax Issues to Look Out for in a California Divorce
One major issue that comes up in a divorce when dividing assets is what to do with the 401k plan. One party often questions why the account should even be divided when the account has been maintained by that person’s employer. California is a community property state, which means all income during the marriage is presumed to be community property. So, income that both parties deferred … [Read more...] about What to Do About Your 401k In a Divorce Process
Dividing a business during the divorce process often wreaks havoc on the family business. It can be either a crippling experience or one that brings the couple together when it comes to reaching their divorce goals. The Collaborative Divorce Process Helps You Identify Your Goals In traditional divorce litigation, spouses often fight over the value of the business, each wanting to remain an … [Read more...] about How to Divorce When You Have a Family Business
When people get divorced, one issue that often looms over them as they head toward the property division stage of the process is what to do with the family home. One spouse may be firmly dedicated to keeping the home. It may be difficult to sway that person into reality and to consider whether keeping the home is really in that spouse’s best interest. House Rich versus Cash Poor During the … [Read more...] about Pros and Cons of Keeping the House in Divorce
When couples divorce, particularly in an older or “Gray Divorce”, one or both spouses may be collecting their Social Security benefit or expect to begin collecting it shortly after the divorce is final. Social Security income is considered an income stream when it comes to tallying up assets in a divorce. How that income is divided is basically the same as any income is divided. However, … [Read more...] about Can An Ex-Spouse Claim Your Social Security?
One of the biggest concerns people have who are going through a divorce is whether they will be okay financially when the divorce is over. They wonder what their life is going to be like in 10 years. How to Have Financial Peace of Mind After the Divorce If you received a lump-sum payment in your divorce, one way to have financial peace of mind is to invest it wisely. As part of the … [Read more...] about Keys to Post-Divorce Financial Peace of Mind
Going through a divorce is generally a stressful period. While emotions are running high, daily financial obligations must be met. At least one spouse is often concerned about their financial future. Some stress can be alleviated with the help of an accounting specialist who can help the couple achieve a more amicable divorce with both parties feeling the asset division was fair and … [Read more...] about Benefits of A Financial Specialist in Your Divorce
Divorce is one of the most stressful life events. Emotions run high while important decisions must be made. The couple are trying to figure out how to support two households on the income they previously used to support one. Retirement plans and savings accounts must be divided. A neutral professional financial consultant can assist with this process. Family law attorneys often call on a … [Read more...] about Why Work with a Divorce Financial Neutral?
In a traditional, litigated divorce, the focus is on, “How can I keep my money?" Each spouse is focused on getting as much from the divorce as they can. They have an “every man or woman for themselves” approach which often leads to a very contentious and expensive divorce. A Collaborative Divorce is different. The couple works with a team and the team works together with both spouses during the … [Read more...] about Navigating Finances Post Divorce
Going through a divorce is a highly stressful life event. Unfortunately, some spouses play financial games with the intent of “winning” in the divorce as they are pitted against the other spouse in the traditional adversarial divorce process. Here are some of the most common games that people play: 1. Undervaluing the Business Often, in the year leading up to the divorce, the income … [Read more...] about The Financial Games People Play In Divorce