In a divorce, everyone walks away with fewer assets and less property than they had beforehand. If you go to court, the process can also be quite costly. You may be wondering if there are any tax breaks that you and your spouse can take advantage of. Here is what you need to know. Property Transfers There are some tax breaks to be aware of if you transfer property from one spouse to another as a part of your divorce [...]
Your household items are more than just things. They can represent memories, history, and even the marriage itself. Some people can say, "it's just stuff," and move forward. Others may not want physical reminders of their spouse going forward. However, many couples find dividing household items to be one of the most emotionally challenging facets of property division. Here's what you need to know to make that process easier and simpler. Source: shutterstock.com / Photo Contributor: vchal Household Items [...]
A tax obligation is a debt you owe to a tax authority, such as a city, state, or the federal government. In California, divorcing couples divide tax obligations just like other property. Separate Tax Obligations Sometimes, the tax is owed only by one spouse. If that's the case, you'll have it confirmed as that spouse's obligation. Usually, this is the case when the tax that one of you owes is from before the marriage, or if you filed separately. Joint [...]
There are three parties involved in the division of debts in your divorce agreement: you, your spouse, and your creditor. While your divorce agreement is legally binding for you and your spouse, this isn’t true for your creditor. Here is what that means for the debt-division process. Source: shutterstock.com / Photo Contributor: David Pereiras Whose Debt Is It? In a lot of ways, dividing your debts works just like dividing your assets. However, it’s essential to keep track of [...]
Whether you are working with attorneys or a mediator, hashing out a divorce agreement means bringing proposals for dividing your assets, debts, and tax obligations for your spouse to consider. In this process, it’s important to think about what your spouse will accept. Here are some tips for coming up with proposals. Saving Time In Mediation Creating a divorce agreement without going to court means finding a compromise that both you and your spouse can agree to. Your [...]
With all this talk about community and separate property, you might be wondering, “do I really need to disclose everything? What if the account is just mine?” Figuring out what needs to be disclosed and what doesn’t can seem complicated, but it’s not. The easy rule to remember is disclose everything. Let’s say that Jen and John are getting divorced. They have a joint bank account like most couples, but Jen also has access to a bank account that she shares [...]
If you have children under the age of 18, one of the most important and challenging things in your divorce agreement is custody. With so many legal terms and logistics, it can seem downright overwhelming. We've broken the issue down for you. This article will help you think through the issues that you and your spouse will need to reach an agreement on. Source: shutterstock.com / Photo Contributor: fizkes Best Interest of the Children In general, you and your [...]
People in same-sex relationships long looked forward to the day their marriages were treated like marriages. Finally, in 2015, the United States Supreme Court held that the right to marry is an essential part of a person's liberty. They ruled that States must recognize same-sex marriages performed in other states. Various people and religious organizations refuse to recognize same-sex marriage. Both local and federal governments, however, must now treat such marriages as valid. This will result in greater certainty [...]
Before creating your divorce agreement, you need to know, from a legal standpoint, what belongs to you, what belongs to your spouse, and what belongs to both of you. In states like California, this is where the concept of community and separate property comes in. Source: shutterstock.com / Photo Contributor: Basicdog What You Need To Know About Community Property So what is "community property"? Community property is an asset or debt that both spouses have an equal right to. [...]
When emotions are riding high, individuals might engage in behavior that they wouldn't have previously imagined possible. One of the people in a divorce may be fixated on making sure their spouse "never sees a dime." So, what happens if one spouse is spending a lot of money before the divorce being final? Although marital fault is becoming less of a factor for many judges, the concept of economic fault remains essential when it comes time to divide [...]