Top Divorce DOs and DON’Ts: Financial Tips from a Divorce Attorney in California

“Why is divorce so expensive? Because it’s worth it.”

It is a sad truth that when community property is divided and salaries suddenly have to support two households instead of one, no one comes out ahead. No one knows this better than a divorce attorney in California who sees no-longer-happy couples struggle with this every single day.

Read on to learn from their experience. Here’s a list of things that you should do and shouldn’t do when you’re preparing for or going through your divorce.

Divorce DON’Ts – Advice from a Divorce Attorney in California.

First and foremost, do not make extravagant purchases until the divorce is final! Yes, you may have to set up a new household, and no, you do not have to furnish it entirely from castoffs and charity stores. You are entitled to live at or close to the way you did when you were married.

But significantly overspending for revenge or any other reason is likely to be seen as deliberately squandering marital assets, and this means that when the divorce attorneys are battling it out, your frivolous spending will be deducted from your share.

Don’t fight too hard for the marital house. No one wants to move, and you likely think of the house as yours. It’s understandable why you’d want to keep it, but this doesn’t mean that it’s a wise financial decision.

You likely bought the house with the understanding that there would be two incomes paying on the mortgage and two paychecks to cover unexpected emergency repairs – and you maybe still felt like it was a stretch. Think about whether you really want to be paying for everything on your own, and then think about what you could buy or rent if your spouse bought out your half of the house (or you sold it and split the proceeds).

If you’re getting part of your ex’s retirement accounts in the divorce, don’t necessarily roll it all over. A divorce attorney in California is likely to be expensive, and you may need some of that cash to pay the retainer and other fees. If you are an alternate payee under a QDRO on a 401(k) or 403(b), your withdrawal is exempt from the 10% early withdrawal penalty.

What You Should DO Instead

There’s always a lot to do and think about when you’re in the midst of a divorce, even if you’re one of the lucky ones whose divorce is relatively amiable. Still, to make sure that you get your fair share of marital assets, you can help your divorce attorney in California help you.

Document your household goods. The second part is way easier than it was 30 years ago, thanks to the advent of cellphone cameras and cloud storage. Walk around your house and take pictures of valuable and sentimental items. You want to be sure that they are all accounted for when it comes time to negotiate.

Be sure to take pictures of your jewelry and other valuable things. We’re not accusing your soon-to-be-ex of anything at all, but very small and very expensive items have been known to disappear when things get stressful and contentious. Also, if any of the jewelry was a gift, be sure to document it. Gifts may not be considered community property in court or at the negotiating table.

Gather all your financial documents and get them ready to turn over to your attorney. Some of the records that you’ll need to pull together include tax returns and supporting documents, wills and trusts, deeds and titles, brokerage and bank statements, year-to-date pay stubs, and business balance sheets.

It’s equally important to document all debts. These will be divided too, and you certainly don’t want to wind up with more than your fair share. Make sure that you have your mortgage and loan documents, credit card bills, doctor bills, and anything else that you may owe to anyone.

While you have all your paperwork in one place, look through it to see how many accounts you will need to update with your newly unmarried status (and change of address and change of name, if applicable). Take pictures of everything you’ve assembled and give it all to your divorce lawyer.

Check in with Social Security. Many people who “stayed home” while kids were young have a gap in their earnings history. If you were married for 10 years or longer, you are eligible to draw on your spouse’s Social Security earnings history. Figure out which one will be more favorable to you!

Wrapping up

Divorce is complicated, and it isn’t fun. However, there are some things that you can keep in mind to make the process go more easily and smoothly with your lawyer. Remember that your divorce attorney in California has navigated these treacherous waters with hundreds of couples already. Don’t hesitate to contact WGS Law for a socially distanced Zoom consultation so that you can go forward in the right direction.