Do you need tax and financial professionals when you divorce?

Do you need tax and financial professionals when you divorce?

Your legal counsel can be a valuable ally when you are divorcing. However, you and other Californians who have significant assets may not want to put your trust in only one person. It may benefit you to seek the advice of those with experience in financial and tax matters when you are preparing to separate your assets.

Fox Business explains that even in community property states like California, an equitable distribution of marital assets is not necessarily fair. Marital assets are those that you and your spouse acquired during your marriage, such as the money you both put into a joint savings account, your family home and your vehicles. The inheritance your grandparents left you and the money you made from selling a business before you were married, on the other hand, would be considered your sole property and would not be divided during the divorce. The same rules apply for student loans, credit card debt and other debts you acquired before or during your marriage.

However, some rules can be confusing or slanted toward your spouse’s favor if you are not financially savvy. For example, if you receive the marital home in the divorce while your spouse gets other assets, it might count as a 50/50 split on paper, but it could be difficult for you to keep up with the expenses related to the home’s upkeep, resulting in a financial hardship – while your ex sells off recreational vehicles and other unneeded assets he or she received in the divorce and makes a profit. A financial advisor can inform you how to protect your interests in the divorce, which assets to fight for and how to invest so you don’t suffer financially when the divorce is over.

Dividing assets can complicate a divorce, but consulting with financial and tax professionals may help you protect your share and avoid costly mistakes. This information is not meant to substitute for legal advice.