Dividing assets under community property laws can be intricate. Recognizing potential complexities in advance can help you take steps to resolve issues effectively.
Here are some indicators that you may be in for a complicated property division process when divorcing in California.
Disputes over a house or business
Disagreements about what to do with assets like a home or business can stall negotiations. Additionally, they often carry financial and emotional weight, making consensus even harder to achieve. It’s important to explore compromises that align with both parties’ long-term interests.
Substantial debt or bankruptcy risk
Shared debt or looming bankruptcy can make asset division more overwhelming. Properly allocating responsibility for these debts requires careful planning and guidance. Consulting with a financial advisor to help you develop a clear plan for dividing debts equitably and addressing insolvency concerns.
A pre- or postnuptial agreement
Prenuptial or postnuptial agreements can make the divorce process easier and faster. However, they can raise questions if the terms are unclear, contested or improper.
Since these agreements often dictate critical decisions about property allocation, they deserve attention in a divorce. Consider getting a legal review of the agreement prior to beginning the divorce process to assess its validity and enforceability.
Hidden or undisclosed assets
Significant challenges may arise when one spouse fails to disclose assets. This can include secret bank accounts, overseas investments or concealed business interests. A forensic accountant may even be worth the added expense if they can uncover hidden assets.
Undisclosed or unexpected debt
Similarly, uncovering a spouse’s hidden debts during a divorce can erode trust and disrupt your property arrangements. Transparency is crucial to ensure a fair property division. Getting a thorough financial review can help ensure that all liabilities are accounted for before negotiations begin.
The best first step is getting experienced legal guidance. This can help you be better prepared to handle these and other complexities of property division and all aspects of your divorce.