Finances and divorce

Ideally, a divorce settlement will allow both parties to exit the marriage on solid financial footing. However, if that is not possible, California couples should aim to get as much security as possible prior to exiting the relationship. In most cases, it is easier to get the best possible settlement by taking time to inventory all marital assets.

In addition to taking care of financial issues that need to be addressed today, a divorce agreement should address future issues that may arise. For instance, the agreement should take into consideration who pays for a child’s college tuition or medical expenses. If one spouse is responsible for child care or spousal support, he or she may need to get life insurance. This ensures that financial obligations are met even if an individual passes on.

If former spouses owned a business together, it is usually better for the individual leaving the company to accept a note for the portion that he or she owned. This means that the business doesn’t have to be sold and the former couple no longer has to work together. Once the divorce is finalized, it is important for an individual to review his or her financial plan and determine if there is enough money coming in to make ends meet.

After a divorce, it may be possible for an individual to receive financial support to help raise a child or maintain a reasonable standard of living. An attorney may review a case to determine if child support or spousal support is appropriate. It may also be possible for legal counsel to review a prenuptial agreement or any other agreement that may resolve property division issues without the need for litigation.