Financial health after a divorce

Filing for divorce puts many responsibilities on the shoulders of estranged California spouses. The primary reason for the divorce could capture both parties’ attention the most, such as ending a marriage with someone abusive. However, both spouses need to examine their financial situation and determine their fiscal path forward.

Divorce and financial matters

A comprehensive personal audit of all jointly and solely held financial accounts seems vital. Making financial decisions without access to monetary records, including debts, would be difficult. Compiling and reviewing all financial accounts may assist a spouse in understanding their current situation and their future one.

Issues might arise if one spouse attempts to hide accounts or assets. If this occurs, that spouse could face serious legal problems. Sometimes, honest mistakes and oversights occur, and a thorough review might uncover something a spouse neglected to mention.

Additional financial matters

Jointly filed tax returns and credit accounts hold both spouses equally accountable for the debt. The situation would remain the same even if one spouse were more responsible for incurring the debt. So, addressing who pays what obligations during the divorce settlement process could be critical for a spouse with lesser earning potential.

Looking at a post-marriage budget might help a spouse determine how to survive financially on a single household income. Keeping control of a budget after a divorce could keep a spouse from overspending. Seeking the fair and equitable distribution of assets may support a path to sound fiscal health. The spouse could also determine if a specific amount of alimony would help.

Divorce settlement talks need not be confrontational, as both parties could work out their differences and be reasonable. When an impasse occurs, mediation may assist with overcoming the problems. Mediation is not binding, but the mediator’s recommendations might provide a path forward.