When California couples decide to divorce, they will need to address a number of financial issues. For example, they may have to divide retirement accounts. In order to avoid having to pay taxes and penalties when the account is divided, a qualified domestic relations order might be necessary.
These aren’t the only financial issues to address. For example, the couple may need to sell a home, or one spouse might refinance it. Spouses should also separate any joint accounts. Those who do not have their own credit record may need to start establishing one. In addition, it may be necessary to revise an estate plan. For example, an ex-spouse may need to be removed from a beneficiary designation.
Soon-to-be exes should find out whether they need new health insurance. They may be able to get COBRA benefits temporarily. However, it’s important to note that COBRA can be more expensive. Therefore, a divorcee should consider creating a budget. Professionals can help with taxes, financial planning and other issues after divorce.
Since California is a community property state, most of the assets a couple acquires after the marriage are considered shared marital property. Inheritances may be considered an exception if they are not mingled with other marital property. An attorney who is experienced in family law can help an individual through the asset-division process. By obtaining legal representation, a divorcing spouse can help ensure a fair separation agreement. A lawyer could also assist with issues such as child custody and alimony payments.