During a divorce you lose assets you likely need to replace. Rebuilding your finances post-divorce should be a huge priority. It’s often an uphill battle. It takes work and determination. Here are tips on how to budget, save, establish post-divorce credit, and how to make a clean financial break from your ex.
California is a community property state. Many interpret community property division to mean there is an automatic 50/50 split, but that is not the case. Community property states view all marital assets as joint property regardless of title, but there are exceptions.
When a spouse owns a home prior to marriage and community funds are used to pay down the property, it creates a community property interest. The state of California uses a formula called Moore Marsden to determine if one spouse should receive any money due to contributing mortgage payments.
Your business is a divisible asset, but there are scenarios in which it will remain separate. If the business is divisible, there are several ways to move forward. One partner can buy out the other, you can continue as business partners, one spouse becomes a silent partner, while the other takes over the day-to-day. If an agreement can’t be reached, you may be forced to sell the business and divide the proceeds.
The average cost of a divorce in California is $17,500. All cases will incur an initial filing fee. In San Diego, this costs $435 and additional motions bring additional fees. This ballpark range is strictly an estimate; significant assets, children, and how contested the divorce is will all add to the expense. In complex divorces that are highly contentious or go to trial, it is possible for the cost of divorce to exceed $100,000. The cost of a complex divorce will be impacted by the necessity of experts.
If you file for divorce and share credit card debt with your spouse, in the state of California, you are equally liable for paying it off.
When you file for bankruptcy in California, it freezes all financial matters. Everything related to property, assets, debts, and the rest comes to a screeching halt. This includes the division of property. Until you put the money issues to bed, you can’t finalize your divorce.
You may need a new place to live after ending your marriage, but it may not be the right time to buy a house during a divorce.
Every divorce has a lot at stake, but high asset divorce presents its own unique problems. Here are some costly common mistakes people make.
Leaving the marital home without having a strategy in place, can create a significant disadvantage throughout the rest of the divorce process.
