Property division is sometimes a contentious aspect of getting divorced, but it’s necessary to get it done before the marriage can legally end. California is a community property state that generally requires courts to dictate a 50/50 split of assets and debt. However, many couples reach a different arrangement through mediation or another collaborative method.
These three tips might be beneficial when looking to handle property division in this manner.
1: Set a realistic budget
One of the first things you should do is set a realistic budget that’s based on your income. This might be vastly different from the budget when you were married, but it’s critical that you know what you can afford now.
2: Focus on logic, not emotions
Some assets, such as the home where you raised your children, have memories associated with them. It’s all too easy to focus on the emotional ties to those assets, but that might lead to you trying to keep an asset that’s going to cause you stress over financial strain. Instead, consider how each possible property division option will affect every area of your life. Logical thinking may help you to avoid making a costly mistake.
3: Include all debts
Property division doesn’t involve only your assets. You also have to divide the community debt, so consider how that will affect your budget. Remember though that if your ex is given responsibilty for a debt and doesn’t pay it, it can also affect your credit score because you can still be held liable by the creditors.
Ultimately, your goal should be a property division order that puts you in the best financial position possible after the divorce. Because this can have a significant impact on your future, it might be beneficial to work with someone familiar with these matters so they can assist throughout the process.