California couples who do not live together before marriage might be less likely to get a divorce if they make it through the first year of marriage. A study that appeared in the September 2018 edition of the "Journal of Marriage and Family" reported that cohabiting couples were actually at a higher risk for divorce in the long term.
Many California couples have a number of misconceptions about prenuptial agreements. In some cases, this lack of understanding leads soon-to-be spouses to avoid the topic. However, debunking misconceptions may eliminate some of the negative feelings about prenups.
The Federal Reserve Board reports that the larger the discrepancy in a couple's credit scores, the greater the likelihood that they will split up within the first five years of their relationship. A SunTrust Bank survey reported that over a third of the respondents said money was a big area of conflict in their relationships. Furthermore, it is not just lack of money that creates stress in a marriage. Couples in California and elsewhere may be more likely to divorce if they are wealthy.
Parents going through a divorce have a number of important concerns to prioritize during this time, primarily the wellbeing of their children. As you and your soon to be former spouse go through the divorce and custody arrangement process, it is important that you keep in mind the potential hardships your children face during this time.
For Californians who divorce after the end of 2018, alimony payments will not be tax-deductible or tax-payable. This is one of several tax changes brought about by the Tax Cuts and Jobs Act, which was passed in late 2017, that could affect the finances of divorcees.
One important step that older California residents can take to lessen how much a divorce negatively impacts their retirement is to consult with a retirement specialist before they begin negotiating divorce settlement terms. A financial adviser can assist individuals with determining what type of financial resources they may need for the future and what they have to do to meet their financial goals. It is also a good idea to meet with the advisor after the divorce settlement terms have been finalized to determine how to get their new financial plan into action.