Divorce can be a complex and emotional process, and there are several aspects that might catch people by surprise during a California divorce. Here are some common surprises individuals may encounter:
1. Property Division Is Not Always 50/50
- California is a community property state, meaning property acquired during the marriage is generally divided equally. However, separate property (e.g., assets acquired before the marriage or by inheritance) is not divided. The division process can be complicated, especially when there are mixed assets (e.g., marital funds used to invest in a separate property asset) or significant differences in the value of assets.
- Valuation disputes can arise, especially with real estate, businesses, and retirement accounts. Getting accurate appraisals or valuations can be time-consuming and costly.
2. Spousal Support (Alimony) Surprises
- Many people are surprised by spousal support (alimony) in a California divorce. While it’s not automatically granted, the court may award spousal support based on factors such as the length of the marriage, the financial needs of one spouse, and the other spouse’s ability to pay.
- Support payments can be permanent (in long-term marriages) or temporary (in shorter marriages), and spousal support obligations can continue even after the divorce is finalized unless modified by the court.
3. Child Custody Isn’t Always Equal
- While both parents are presumed to have equal rights to their children, child custody can be more complicated than people expect. Custody decisions are based on the best interests of the child, which may not always result in an equal physical custody arrangement. The court may award one parent primary custody and the other parent visitation rights.
- Parental alienation, issues of domestic violence, or substance abuse can heavily influence custody decisions. Courts also consider the child’s age, health, and emotional ties to each parent.
- Custody agreements can also be adjusted over time if circumstances change (e.g., relocation, changes in work schedules, or the child’s needs).
4. Debt Division Can Be Complicated
- Debt division is often a surprise, as many people focus on asset division. However, any debt accumulated during the marriage is generally considered community debt and must be divided equally.
- If your spouse ran up significant debts in joint accounts or credit cards, you might be responsible for half of that debt. Debt allocation can lead to disputes, especially if one spouse insists they shouldn’t be responsible for certain debts.
- The division of debt can affect your credit, so it’s essential to close joint accounts and monitor your credit report during the divorce.
5. Hidden Assets or Income
- Some spouses attempt to hide assets or underreport their income to minimize what they owe in alimony or property division. This can include hiding cash, undervaluing assets, or claiming they make less than they do.
- Forensic accountants or other investigative tools can help uncover hidden assets, but this process can be costly and time-consuming.
- Failing to fully disclose assets or income during divorce can lead to penalties or a revised settlement, so honesty is crucial.
6. Emotional Impact on Children
- Even if a divorce is amicable, children often experience emotional challenges that may surprise parents. Children can have difficulty adjusting to changes in living arrangements, especially if custody is divided or if one parent relocates.
- It’s common for children to act out, struggle with feelings of loyalty, or face challenges in adjusting to new family dynamics. Family therapy or counseling may be recommended for both the parents and children to help navigate these emotional adjustments.
7. The Length of Time It Takes
- Although California has a six-month waiting period from the time the divorce petition is filed until it is finalized, the entire process can take longer, especially if there are complicated issues (such as property division, custody, or support). If the divorce is contested or if mediation is required, the process can stretch out over several months or even years.
- Many individuals expect a quicker resolution, only to find that the paperwork, hearings, and negotiations take more time than anticipated.
8. Effect on Taxes
- A divorce can have significant tax implications. For example, after a divorce, your filing status will change, and you may no longer be able to claim your ex-spouse or children as dependents unless you have a written agreement to do so.
- Alimony payments (for divorces finalized before 2019) may be deductible for the payer and taxable for the recipient. However, this changed in 2019, and alimony is no longer tax-deductible for the payer or taxable for the recipient in divorces finalized after 2018.
- If you are dividing retirement accounts, it’s crucial to understand how Qualified Domestic Relations Orders (QDROs) work, as taxes can be affected when these accounts are split.
9. Changes in Financial Circumstances
- You may find that your financial obligations or circumstances change after the divorce, such as the cost of living, child support payments, or spousal support. If you experience a change in income (e.g., job loss, salary reduction), you may need to request a modification of support or custody orders.
- Similarly, your spouse may request modifications if their financial situation changes after the divorce.
10. Legal Costs Can Add Up
- Divorce can become expensive, especially if it’s contested. Legal fees can be substantial, particularly if you are involved in lengthy negotiations, hearings, or litigation.
- Attorney fees may also increase if you need expert witnesses, forensic accountants, or other professionals to resolve disputes over assets or child custody. Some people are surprised by how quickly costs accumulate, so it’s important to budget and discuss costs with your attorney upfront.
11. Change in Health Insurance Coverage
- After a divorce, if you were covered under your spouse’s health insurance, you will typically lose that coverage unless you qualify for a COBRA continuation plan, which can be expensive. If you were the policyholder, you may need to update the policy to remove your ex-spouse.
- You may be entitled to health insurance through your employer or need to seek individual coverage through the marketplace (under the Affordable Care Act).
12. Impact on Social Security and Retirement Benefits
- If you were married for at least 10 years, you may be eligible for Social Security benefits based on your ex-spouse’s work record, even if you remarry. However, this only applies if you are divorced for at least 2 years and meet certain age and income criteria.
- Retirement accounts like 401(k)s, pensions, and IRAs are typically divided in a divorce, and these can be tricky to navigate if they are large or complex. There may be taxes or penalties for early withdrawal if the accounts are divided improperly.
13. Emotional Attachment to Assets
- People can be emotionally attached to certain assets, such as the family home, vehicles, or heirlooms. While these assets may hold sentimental value, they may not always be the best financial choice to keep after a divorce.
- Sometimes, individuals are surprised when they are asked to consider what they can afford to keep post-divorce, especially in relation to the house or high-maintenance assets.
Conclusion
Divorce is often full of surprises, both financial and emotional. By being prepared for these common issues, you can approach the process with more clarity and less stress. Working closely with an experienced divorce attorney can help minimize surprises and ensure you understand the legal, financial, and emotional aspects of the divorce process in California.