Financial Considerations During California Divorce

Financial Considerations During California Divorce

When it comes to divorce, one thing you will be discussing is your finances. Aside from having children, your asset and debts division and discussion will likely be the next biggest topic.

I know that is the case with my clients. First they focus on the children, next comes the finances.  Both children and finances are part of divorce and will be part of your Marital Settlement Agreement also know as the divorce judgment.

When discussing your assets and debts as part of a divorce, one of the things both parties will have to do is disclosure. This is where both of you will create a list of your assets and debts that you are aware of.

The court’s require this mandatory disclosure so that you and your spouse can essentially tell each other what you are know exists.  Even if you feel you both know what everything is, the court will require you to certify that you have complied with the disclosure process.

Here are a few things to think about when going through a divorce:

  • Start Collecting Your Financial Documentation

This could mean obtaining your credit card statements, bank statements, mortgage statements, etc. If you are going through an amicable divorce, your discussion regarding asset and debt division may occur at the coffee table while you go through everything trying to figure out what would be fair.  Or you may find yourself in divorce mediation if you need help coming up with a settlement.

  • Make Sure You Both Are Aware Of What Debt’s You Are Responsible For

Once you have agreed on who is  keeping what debt, you will need to make sure that each of you are aware of what assets and debts you are going to be paying on.

In many cases the debt you pay on may stay in both of your names. It would make sense for each of you to open separate credit cards and pay off the community debt and put each of your portions on a separate credit card.

  • Keep An Eye On Your Credit Score

Even in the most amicable of situations you will want to keep an eye on your credit score. This is especially true where you keep credit card debt or even vehicle loans combined because you are unable to get new credit cards or refinance loans into your own name. You wouldn’t want your credit ruined because your ex either forgot to pay the debt they agreed or was unable to pay and did not tell you.

Here at Divorce661, we offer a full-service divorce assisting our clients going through divorce in California who don’t want the high expense of hiring an attorney and who are amicable enough that they can work together with our assistance to get through the divorce process.