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Calabasas Family Law Blog

Financial consequences of divorce for the wealthy

One of the reasons couples may hesitate to divorce is due to the cost and financial instability of post-divorce life. When you are wealthy, you likely do not worry about legal fees and living on your own. However, that does not mean divorce has no significant impact on finances for those in the higher-income bracket.

If you fall for this myth, you may end up paying for it in many noticeable ways. Watch out for these financial consequences of divorce so you can prevent or prepare for them:

Keeping watch over marital debts following divorce

Many individuals in California and elsewhere may consider it essential to maintain a healthy financial standing. Those who are going through the end of a marriage may have concerns about how the process will affect their finances. While property division will inherently have an impact on this area of life, individuals who are going through a divorce may also find it advisable to keep watch over marital debts, as these could have a substantial influence on the outcome of the situation.

Since California is a community property state, all marital assets and debts are divided equally among both parties during divorce. However, even if one spouse is deemed responsible for certain marital debts in the divorce decree, the other party may find it advisable to keep watch over his or her credit report. If both parties are listed on similar accounts, creditors could may still hold each party legally liable.

Understanding the process of determining child support payments

When parents in California make the decision to take separate paths in life, there may be a variety of topics to address concerning the future of their kids. In addition to reaching an acceptable child custody agreement, parents who are parting ways may also enter negotiations concerning child support payments. While this could be an intimidating topic to discuss, gaining an understanding of certain aspects of the process could help reduce the stress of the situation.

The first topic a parent may wish to address could pertain to how child support payments are determined. In situations where one parent becomes the primary caretaker of the children, the noncustodial parent might be required to provide financial support to his or her children based on a variety of factors, such as the income of both parents and the previous standard of living of the kids. However, even in situations where custody is shared, one parent may still be required to pay child support.

Prenuptial agreements in California

If a couple is thinking about divorce, the prenuptial agreement is one among several factors that could have a significant effect. A valid prenup can supersede other considerations when it comes to matters such as spousal support or property division.

Sometimes, a spouse may want to challenge the validity of a prenup or of a particular provision.

Making the decision to divorce may rarely be easy

It might not be all that uncommon for married couples in California and across the nation to experience problems in their relationships at times. Should the issues within a marriage persist for prolonged periods, a couple might begin to wonder if parting ways is in the best interests of everyone involved. Since divorce is a major decision that could have a long-term impact on one's future, it might be advisable to take the time to think things over prior to deciding on a path.

There are numerous scenarios in which a couple might experience high levels of conflict within a marriage. During these periods, emotions could be heightened and neither party may be capable of thinking clearly. Before deciding that the relationship has run its course, a couple may find it helpful to take the time to calm down, as decisions based on emotional response may rarely be indicative of one's true feelings or wishes.

Divorce and the potential importance of being financially aware

When it comes to retirement, many individuals in California and elsewhere consider it vital to have a strategy in place. However, while preparing for this period in life, certain scenarios could prove challenging to account for, such as the end of a marriage. Divorce can have a significant impact on one's plans for the future, perhaps especially for those who haven't played an active role in marital finances.

When it becomes clear that a marriage is no longer functional, a divorce could be the healthiest solution for everyone involved. However, even if it is the best path, it can still be a stressful decision to make, and the outcome of a divorce can affect a person's financial future. For those who leave many or most of the financial decisions to their spouse, being prepared for life after divorce can be a challenging task.

Remember these 3 things when spousal support is on the table

Spousal support is a huge piece of the post-divorce lives of the people that ended their marriage. It isn't guaranteed to be involved in any given divorce, but when it is, there are a number of important matters that the two spouses need to consider.

So let's review these three critical points one by one:

Safeguarding your wealth in a high-asset divorce

If you have substantial assets, one primary concern you may have is safeguarding your wealth from a California divorce. Whether you are currently married or getting ready to tie the knot, there are actions you can take to protect your wealth and ensure your financial security if divorce ever occurs. 

It is important for you to keep sight of your finances during your relationship even if you are not the primary breadwinner or in charge of managing the household expenses. Here are some suggestions on how to protect your finances from divorce

Establishing parentage or paternity in California

As a California parent, there are a number of different reasons you may find it necessary to establish paternity. Maybe you know a man fathered your child, but he disputes your assertion and refuses to pay child support, or perhaps you are a father looking to obtain visitation custody or parental rights to your child. Regardless of your reasoning for doing so, however, there are certain steps you can take to legally establish parentage in California.

Your options for establishing paternity or parentage in California include the following:

2 issues to avoid in a high net worth divorce

While going through your high net worth divorce in the Southern California area, it is important to be careful about how you handle key decisions. The decisions you make now will have an immediate and lingering impact on your and your kids’ lives after the judge issues the final divorce decree. 

Divorce is not easy, especially for individuals who have so much at stake. You might feel pressured and confused while you contemplate important issues, such as alimony, child support, custody and the division of marital assets. Take some time to review two common mistakes made in high-value separations so you can avoid them. 

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Langlois Family Law, APC
23632 Calabasas Rd, Suite 104
Calabasas, CA 91302

Phone: 818-225-9900
Fax: 818-225-9929
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