2020 has come and gone like a whirlwind, and the pandemic along with other global events have left many with troubled finances. Despite this, divorce rates have not decreased significantly, which means that plenty of soon-to-be-separated partners have an additional financial burden to worry about: asset division.
For today’s post, we’re offering some tips on how you can get started as you prepare for the asset division portion of your divorce. You should know that asset division can be an incredibly complex process, one with long-term consequences. As such, for specific advice, make sure you check in with a qualified professional.
That said, here’s what you need to know about asset division in CA in 2020.
Take Inventory of Your Assets and Liabilities
During asset division, you’ll be expected to provide a detailed rundown of everything you own as well as all debts that belong to you. This includes everything from household possessions to the property itself, as well as pets, vehicles, retirement benefits, and more.
This means there are a lot of items to log, so the earlier you start the better. 2020 adds a few unique challenges if you did any gig work, received any payments for goods or services via online apps, invested in cryptocurrency, and more. If in doubt, jot it down anyways and have a legal professional look over your work.
Don’t Forget to Budget for Taxes
Taxes are stressful as it is, but many people don’t appreciate the scope to which divorce will impact their upcoming tax season.
Once your assets have been split and you’re on your own, where will this place you on the federal and state tax brackets? For any dependants, do you or the ex get to claim them? Make sure you account for this or you may be looking forward to a surprise bill from the IRS.
Take a marital household for another example. Let’s say it is sold during asset division and the money is split evenly. Who takes care of the estate tax? Is there any relevant capital gains tax you have to worry about? Ask yourself these questions ahead of time to save future you a lot of trouble.
Count on a Qualified Authority on Asset Division in CA
Above all, don’t skip getting help from an expert in this area! Asset division is a critical part of the divorce process, one whose results will follow you for years to come. In general, you should always have your own dedicated legal representation when dealing with any type of family law process in CA.
While this post offers a general set of tips that can help you prepare for asset division, nothing can replace the dedicated counsel of a family law attorney. At R & S Law Group, LLP, we’re equipped to navigate any step of the divoce process and work tirelessly to protect our clients and their loved ones.
If you have any questions for our team of legal experts, or if you want to book a free initial consultation, give us a call at (949) 825-5245 today!