What Are The Main Financial Implications of Divorce (Video)
Attorney and CPA Brent Kaspar discusses the financial implications of divorce and explains the concept of the division of assets and the related tax considerations. He highlights court-ordered sale of assets as one of the potential case complications. When substantial assets are involved, it is critical that your lawyer has the experience and knowledge to evaluate complex financial matters.
As an attorney and a CPA, one of the questions that I get asked the most in a consultation is, what are the financial implications of a divorce?
A lot of times my response is simply, it’s the division of assets and debts during the marriage, closely held businesses. How are those allocated? Um, investments, 401k, those kinds of things. How are those divided? And then, you know, the more sophisticated clients will ask, well, what are the tax aspects of those under California law?
California is community property state meaning any, any assets that were in during the marriage or debts that were accrued during the marriage, are divisible 50 50. Now, in order to facilitate the division of assets, sometimes the court will force the sale of the asset because the parties don’t have the ability to buy the equity out of the other spouse’s interests.
And that can be one of the more complicating factors because spouses have an emotional tie to specific assets and it’s very, very challenging to deal with. As an attorney and as an accountant, we get these questions all the time and we understand how complicated this process can be, so feel free to give us a call and set up a consultation.
We’ll answer your questions.