Divorce comes with many financial concerns, and spouses who pay close attention to their financial situation could save themselves from fiscal troubles during and after the proceedings. California spouses might find it necessary to focus on “money matters” to come out of divorce proceedings on stable financial footing.
Money issues related to divorce
Complete auditing of all financial accounts and obligations might be necessary when divorcing. One spouse may not realize the other spouse took out loans or made credit card charges on joint accounts— settling “who pays what” could leave debt obligations with the spouse who ran up the bills.
Taxes also create debts, and the IRS could seek payment from both spouses on a joint return. Divorce negotiations may involve agreements on how to handle the debt, freeing one spouse from liens, levies, and worse.
The family home might be the most contentious asset examined during the proceedings. One spouse may be attached to the property, but the costs of owning it without the other spouse’s income could prove fiscally unstable. Looking at all costs, including utilities, upkeep, insurance, and taxes, may lead to decisions about selling the property and splitting the proceeds.
Working through money issues during negotiations
A spouse might find adequate alimony and child support payments help avert financial strains. Fully understanding one’s monthly expenses and those related to child care could result in asking for an appropriate monthly amount.
The effects of a divorce could remain even many years after the process becomes finalized. Divorce impacts retirement accounts, adding complexities to the lives of older persons involved in a “gray” divorce.
Financial settlement negotiations could reach an impasse, leading to more stress. Perhaps entering into mediation may overcome the stumbling blocks and lead to an agreeable outcome. Considering the financial implications, going through mediation may be worthwhile.