California residents understand how challenging divorce can be. There is a reason why divorce is often described using metaphors of war: negotiations, conflicts, battles, winners, losers, collateral damage, etc. There is an added volatility to divorce because the two individuals who are now at odds with each other were once in love to the point of getting married, joining their finances and even having children.
Married couples in California and elsewhere around the world have to work hard in order to make their relationships work, and, fortunately, they have been more successful over the past few years as divorce rates have been declining. Nevertheless, some couples still decide to break their vows and end a union that was supposed to last a lifetime. Ergo, these same couples might have benefited greatly from learning about the top reasons that lead to divorce as well as what they could have done about them.
A woman in California who gets a divorce may be at a higher risk for cancer than a man in the same situation. A study that appeared in "The Journal of Health and Social Behavior" in 2005 reported that a wife's illness raises the divorce risk while a husband's illness does not.
California residents may have heard that Amazon founder Jeff Bezos and his wife are divorcing after 25 years of marriage. It is believed that the couple had a joint net worth of about $136 billion. One of the issues that will need to be resolved during their divorce is to determine how to divide the wealth. As a general rule, divorces involving wealthy people tend to be more complicated because of the assets that they hold.
California residents who go through a divorce could experience a wide range of emotions. However, it is important to keep those feelings in check when it comes time to negotiate a settlement. Otherwise, an individual could face criminal charges, an unfavorable parenting plan or undesirable financial terms. Generally speaking, it is wise to consult with a lawyer before attempting to negotiate a deal. It can also be in a person's best interest to review a settlement with an attorney prior to signing it.
As many California couples know, finances can negatively impact relationships, even leading to divorce. However, if couples can work on how they handle their finances, they may make their relationships better in the process.
Getting a divorce can have a negative impact on a person's finances in many ways. However, California couples who are ending their marriage can take certain steps to avoid having their financial future adversely affected.
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.
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.