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Updated by Santa Barbara Divorce Lawyers of Kaspar & Lugay, LLP on Jul 04, 2019
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5 Ways Divorce Can Affect You Financially

There’s no doubt that divorce can easily become a complicated and a messy job, especially when matters involving money are concerned. Your finances will definitely be one of the first to be affected by your divorce and here are some things that you will probably encounter:

1

Splitting Property

Splitting Property

Depending on the state where you live in, you can settle property matters by establishing an agreement with your spouse as to how the property will be divided. There are also some states in the U.S. which are classified as community property states which means that they have laws stating all assets acquired during the marriage by both parties are joint marital assets.

2

Paying Debt

Paying Debt

The first thing you need to do when settling debt is to get your credit report. From certified agencies. Your report will allow you to see how much you owe under your name and this makes dividing debts much easier. Once you’ve settled the amounts that need to be paid, it’s important to pay off the debts as soon as possible.

3

Tax Implications

Tax Implications

Given the many other financial concerns and burdens faced by divorcing couples, it’s no longer surprising to think that tax is not that much of an immediate concern. But do remember that overlooking your taxes can easily spell thousands of dollars in penalties.

4

Retirement Savings

Retirement Savings

Know what you’re entitled to when it comes to retirement savings. Did you know that you are entitled to up to half of the retirement savings of your spouse? You can use the money you’ll be getting to pay off the down payment of a house or to cover your relocation expenses.

5

Negotiating Real Estate

Negotiating Real Estate

All property including the marital house, commercial and business properties, vacation houses, and even rental property are all subject to negotiations. If you and your spouse have agreed to sell the marital house, know who will pay for the expenses of the house.

There will always be financial hurdles along the way but with the help of your family law attorney in Santa Barbara, you can rest assured that you won’t have to do it all alone.

  • Based in Marin County, CA and with offices that serve San Francisco, Napa, Walnut Creek, and Santa Barbara, CA, Kaspar & Lugay LLP is a dynamic boutique law firm focusing on divorce and other family law matters. Additionally, our experience in tax and business law matters allows us to effectively represent clients in high value divorce cases.

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