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
Divorce
What to Do About Your 401k In a Divorce Process
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
How to Divorce When You Have a Family Business
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
Pros and Cons of Keeping the House in Divorce
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
The Financial Games People Play In 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
Divorce: Where to Start in Gathering Information
When making financial decisions during the divorce process, there are documents that are needed to help in the division of assets and building making future realistic budgets. In many marriages, one spouse has handled the finances and the other is in the dark about their family’s finances. The start point is gathering important financial documents for the financial neutral in a Collaborative … [Read more...] about Divorce: Where to Start in Gathering Information
4 Keys for Working with Your Divorce Financial Professional
One of the first things that a divorcing couple needs to do is gather your financial information. In the divorce process you will both need to have a complete picture of your financial situation before you can begin to work on a settlement agreement. In a Collaborative Divorce, this step is easier than in traditional litigation because you have the assistance of a neutral financial … [Read more...] about 4 Keys for Working with Your Divorce Financial Professional
Divorce and Cryptocurrency
An issue that is coming up more often for divorcing couples is how to divide the cryptocurrency. Unfortunately, it often seems that one spouse may have acquired this asset without the knowledge of the other spouse. This behooves their attorneys to be certain each spouse reveals all assets, including cryptocurrency. Cryptocurrency Must be Valued One problem that arises in a divorce is that … [Read more...] about Divorce and Cryptocurrency
Divorce: Dividing Retirement Funds
When divorcing couples begin dividing their assets, they often find their retirement account or accounts are the most valuable thing they own. Even if the account is an employer-maintained benefit, such as a 401(k), IRA, profit-sharing plan, or another such account, and is in the name of only one spouse, the earnings in that account that occurred during the marriage are community property in … [Read more...] about Divorce: Dividing Retirement Funds
How To Do A Business Evaluation For A Divorce
When income that is generated during a marriage comes from a business owned by one or both parties, there should be a business evaluation conducted as part of the process of determining the overall value of the estate. There are several methods for valuing a business. Which valuation approach works best for purposes of family law depends on the nature of the business at issue. The Market … [Read more...] about How To Do A Business Evaluation For A Divorce