When California couples divorce, if they also own a business together and do not have a prenuptial agreement in place that deals with it, they will have to decide how to divide it. While one person might want to buy the other out, this could be difficult if that individual's money is largely invested in the business itself. In this situation, it may be possible to get a bank loan or to sign a property settlement note that allows the individual to pay the other person back over time with interest.
Since California is a community property state, most assets acquired during marriage are considered marital property to be divided in the case of a divorce. However, there are a few exceptions to this rule, including inheritances. To maintain an inheritance as separate, the beneficiary should not commingle that money with jointly owned assets.
Some California parents may be pleased to learn that the Trump administration has not yet interfered with an executive order by Barack Obama that changed the way some states collect child support payments from parents who are imprisoned. The new rule took effect on Jan. 19.
If you have been fortunate enough to acquire significant assets, then you know that more money can indeed mean more problems. This is exceptionally true when it comes to divorce. While couples who do not have much of an estate may be able to call it quits with relative ease, significant potential marital property makes the process exponentially more difficult.
Emotional issues often drive people's decision to end a marriage, but the divorce process entails many important financial considerations. Once a couple splits, each party must establish a new household with a single income, which could be difficult in many housing markets in California.