Bohm Wildish: Divorce Business Ownership – Divorce finance is complicated as it is, but trying to divide a business makes it extremely vital to know the process before making business decisions. The business is typically an asset and a source of income for the couple. [Read more…]
Bohm Wildish – Divorce and Taxes: Tax season is here– everyone’s favorite time of year. (Not.) Most people are currently thinking about their finances, their taxes, their credit score, etc. More than 75% of California marriages end in divorce, so many of our clients from Orange County and Los Angeles are especially worried about finances this time of year if they’ve been recently divorced. RoadFish recently released a few observations about how a divorce can affect one’s credit, and we thought we would share them with you. [Read more…]
In this very digital age, divorce has become much more transparent. Couples even a few years ago could live their lives quite anonymously (can you say affair?) while stashing money on the side for any troubling possibility.
Not so much anymore. With all records going digital and with cameras on every smart phone, our lives are rather clear. So how do you protect yourself against any treachery and what is legal and what’s not when it comes to “spying” on your spouse?
Firstly, make certain to get some good legal advice from a reputable family law lawyer, especially if you are a high-income earner, investor or property owner. Some of the first steps towards a separation or divorce (and certainly in the case of a cheater and liar!) are critical when it comes to bank accounts, co-parenting and who is going to keep the house.
But the question remains: Is it legal to find a cheater whether it be an extramarital affair or “hidden” assets? [Read more…]
Are women doing better at getting their share of the financial divorce pie in the 21st century? Yes, so says a recent Pew Charitable Trust story. Part of Pew’s Economic Mobility Project (EMP), the study is encouraging for women when it comes to income levels after a divorce.
The EMP report shows income increased by 25 percent or more by 20 percent of all divorced women across the political spectrum. This compares with just 11 percent of women in the 1970s.
One way women can ensure more income equality when it comes to divorce is to hire a support team, including a reputable family law lawyer, financial planner and tax accountant. Unfortunately, the study also shows that 50 percent of spouses come out of a divorce in a worse financial situation than when they started. [Read more…]
Women undergoing a divorce are under tremendous stress dealing with emotional, legal and financial demands not to mention the challenges of a career and children. With all these pressures, many women make bad financial decisions such as not obtaining an excellent lawyer or too quickly accepting the first settlement proposal.
Remember, whatever financial consideration decisions you make will possibly last a lifetime so it’s best to take your time and get the best advice possible from reputable divorce professionals.
First off, gather all your financial records together in one place. Create a detailed list of income, expenses, assets and debts. Make copies of everything including records such as bank and brokerage account statements, pension plans, IRAs and insurance policies.
Next, start developing a short- and a long-term financial plan. It’s also important to research and understand the potential tax consequences for divorcing couples.
Your research into the financial implications of divorce – along with advice from your divorce attorney – will help you strategize when it comes to understanding the financial implications in each settlement proposal.
What about bank accounts?
In consultation with your attorney, carefully begin to separate joint bank accounts and open new individual accounts. This will be important for your future financial independence.
The same goes for credit cards. Ask your lawyer about closing joint credit card accounts and opening new credit card accounts in your name only. To avoid problems with any credit charges, remember to place fraud protection alerts on any joint credit cards accounts.
What if you own a business?
Unfortunately, a divorce can lead to the ruination of your business. Why? If your business increased in value during the marriage, a judge can be obligated to award half the increased value to your spouse. And if your business cannot come up with this owed amount, you may be forced to sell your business quickly and at a rock bottom price.
What if your husband is your business partner? He may be entitled to ownership interest. But be forewarned. If your spouse retains part ownership, his future wife may eventually become your business partner too. To get your husband out of your business completely, ask for a “unilateral right to buy” your husband’s part of the business. To do this, however, you may need to use monies from your share of the marital assets or devise an ongoing payment plan.
The #1 divorce tip: How do you avoid these scenarios altogether? Savvy business women can take years to “divorce proof” their business with the help of a qualified financial planning and divorce attorney team.