As the tax laws change regarding alimony for divorces concluded in 2019 or later, many people are looking toward individual retirement accounts as a way to create fair settlements that preserve tax benefits for both parties. When the shifting of the tax burden for alimony goes into practice, the current environment that encourages generous support payments through a valuable tax deduction will change considerably. However, both parties will still be looking for a solution that provides a measure of tax protection for the paying former spouse while providing needed funds to the recipient.
For many California couples, considering getting a divorce may be a major step towards the realization that their marriage is about to end. While former couples should never rush to divorce unless there is violence or abuse in the marriage, waiting to get a divorce finalized in 2019 versus 2018 could have an impact on the former couple's finances, especially if one person wants to keep the family home.
A divorce can leave California residents with legal bills and children to raise on a single income. However, it can also provide a person with a significant asset in the form of the marital home. In many cases, a custodial parent will keep the home to provide stability for any children a couple had while married. Every time a mortgage payment is made, a homeowner increases his or her equity in that asset.
For California families, planning for a child's higher education can be a major priority, especially given the importance of a university degree for future success in many professions. However, the costs of college are rising continuously and may put the expenses nearly out of reach for many families. The College Board estimates that tuition costs rise around 3 percent annually; in order to provide for a child's education, it can be important to put a plan into effect long before a child considers their future educational plans. However, a divorce can add extra complications and difficulties to the already-onerous task of saving for college.
Hollywood, the famous neighborhood in Los Angeles, California, may be known for several things, films and movie stars to name a few, but it is currently responsible for spreading a trend among recent divorcees: bird nesting. Bird nesting is when a recently divorced couple agrees to share a common dwelling by alternating living in it with their children. The children remain in the home, while the parents move in and out according with their visitation schedule
While divorce can be hard on spouses, it can be even more difficult for children. In many cases, however, both parents can agree that caring for their children is the most important task. Even in cases where the relationship is more contentious, many divorcing parents in California work hard to keep their children from being exposed to marital strife or issues with divorce negotiations.
For some couples in California, a retirement account could be their largest asset. Therefore, dividing the account in a divorce could be quite contentious. In a 2016 survey, the American Academy of Matrimonial Lawyers found that separating retirement accounts was the second most common cause of conflict in a divorce.
Finding an affordable place to live in California challenges people under the best of circumstances, and the emotional and financial strains of divorce complicate the issue. Regardless of the difficulties, the divorce process involves one or both parties moving out of the marital home. Deciding where to live after a divorce requires a person to evaluate carefully financial resources, future goals and family needs.
When couples in California are just starting their relationship, they often plan ahead to have a healthy marriage. From the advice of family and friends to online articles, many resources act as a guide for a long-lasting marriage. However, there are some social myths and beliefs that can be harmful rather than helpful to couples looking to improve their connection.
Negotiating a divorce settlement may be a possibility for some California couples instead of going through litigation. The process may be less expensive and quicker, but it may also be more productive for people who are well-prepared.