Understanding the Financial Impact of Divorce: Part II

As laid out in part I of this article, it is important for anyone contemplating a divorce to understand the financial impact that divorce will have on your life. The more you understand what to look out for, the more you can protect your own interests and help to ensure that you take the steps you need to be able to operate independently and financially secure in the future.

This article will continue in the same vein as the first, discussing some of the important financial items you should have in mind if you are facing a potential divorce. For further information and help in your own case, contact the esteemed divorce attorneys at Cardwell, Steigerwald Young

Spousal Support

Spousal support is also commonly known as alimony. While not present in every divorce case, it certainly plays an important role in many divorce proceedings.

If alimony is appropriate and awarded, the amount of support and duration of the payments will depend upon several factors:

• Duration of the Marriage: The length of the marriage has a huge impact on whether the court will deem it appropriate to order support, and how long that support should last. An experienced divorce and spousal support attorney can help you to understand what to expect in your own case. Generally, the longer the marriage lasted and the more disparate the income of the couple, the more likely it is that support will be awarded and that it will be long-lasting.
• Income and Financial Needs: As touched on above; in assessing a spousal support award courts will consider each spouse’s earning capacity and financial need. The goal is for both spouses to be able to maintain a standard of living that is similar to what they enjoyed during the course of the marriage.
• Ability to Pay: Notwithstanding the above, courts are not in the business of “punishing” one spouse. If a spouse is not capable of meeting support obligations without enduring undue hardship, the courts will, of course, need to keep that in mind.

Debt Division

In addition to dividing assets, you must also keep in mind that a divorcing couple will also need to divide the accountability to pay off debts. This might include mortgages, credit card debts, car loans, joint credit accounts, etc.

• Mortgages and Loans: Who will be responsible for the mortgage on the family home? What about credit card debts, student loans, or car loans?
• Joint Credit Accounts: Any debt in both names can be a challenge, and it’s crucial to address who will be liable for which debts moving forward.

Child Support

Even the easiest of divorce proceedings can snag when it comes to issues of child support. While many issues can be negated by implementing a solid pre-nuptial or post-nuptial agreement, child support cannot be addressed in California pre-nuptial and post-nuptial agreements. The minimum amount of child support to be paid is a matter that is to be approved by a judge. Child support can be negotiated between parents (to a degree) and California provides a formula to ensure that a child’s basic needs are met. Child support court orders depend on the income of both of the parents, the amount of time each parent spends with the child (and will, then, be paying for their care during that time) as well as the child’s individual needs.

Conclusion

The financial impact that a divorce can have is often complex, but if you understand what is ahead you can move with surety and confidence. Working with experienced attorneys can help you to protect your future and move through any complexities with the knowledge that professionals are fighting for your interests. Contact the San Francisco divorce attorneys at Cardwell, Steigerwald Young to learn more.

Sources:

cnbc.com/select/common-costs-of-divorce/

people.com/rhobh-mid-season-trailer-dorit-kemsley-worries-estranged-husband-pk-will-wage-legal-war-8781370