Even when dissolving your marriage is the right decision, divorce is regarded as one of life’s most stressful events. Filing for divorce often means looking at your finances in-depth while making life-altering decisions that impact your financial future. It’s common for parties to rush through this process or agree to the unequal distribution of assets to end acrimonious proceedings. Still, you must consider the future impact of your financial decisions during divorce proceedings.
You can confidentially discuss your financial concerns with the dedicated divorce attorneys at Bamieh & De Smeth by calling (805) 643-5555 or contacting us online.
Distributing Marital Assets During California Divorce Negotiations
As a pure no-fault divorce state, California does not consider fault when dividing marital assets. This means you cannot use another party’s infidelity as grounds to increase your share of marital property. Instead, family judges apply state laws regarding the equitable distribution of shared property, which often includes the following:
- Primary residence
- Furniture
- Savings accounts
- Joint checking accounts
- Shared business ventures
- Retirement funds (pension and 401K)
- Stocks and investments
- Collectibles
Nearly all assets obtained during the marriage, including your personal income, are considered marital assets in California. Courts generally encourage spouses to settle these financial matters privately before submitting an agreement for approval, but you must consider how doing this will impact your financial future.
Important considerations include whether you can live off a reduced pension or retirement fund and what it will cost to rebuild your home. An attorney with experience handling asset distribution cases can guide you through this process by pointing out the potential future financial considerations and tax consequences of a proposed distribution agreement.
Considering Alimony and Child Support Payments During Asset Distribution
Courts may order the higher-earning spouse to pay alimony (spousal support) during and after divorce proceedings. This can result in substantial lost income to the paying spouse and tax consequences for the spouse receiving payments. Before agreeing on alimony payments, you must consider whether you can sustain these payments in the long term. This is especially true if you must rebuild your savings and retirement accounts and pay child support.
You cannot negotiate lower child support payments, but you might agree to pay for certain future expenses such as college, a motor vehicle, or a wedding. You must consider the future financial impact of agreeing to those provisions, as they could result in long-term financial strain and additional court appearances. Working with a dedicated domestic relations lawyer now can protect you from making unsustainable financial decisions during divorce proceedings.
A California Divorce Lawyer Can Protect Your Financial Future
An experienced family law firm can help you make wise financial decisions now to protect your future. Do not rush into divorce settlement agreements to end proceedings. Let the dedicated California divorce attorneys at Bamieh & De Smeth guide you during this emotionally challenging period in your life. Call our family law team today at (805) 643-5555 or contact us online,
