Divorce can be a difficult process, especially when there are financial inequalities between the two spouses. In such cases, it is essential to ensure an open and honest exchange of information so that both parties have a clear understanding of the finances. In most families, one spouse may have more knowledge and skill regarding the family finances. It is essential to correct the power imbalance by obtaining information and documents, and then having a qualified financial specialist analyze them and explain in a clear and concise manner the family finances to the spouse who has less information.
Temporary Orders or Arrangements
When one spouse makes most of the money in a family, there is a financial shift that is necessary when going through a divorce. In these situations, it is essential to establish temporary financial arrangements, which can be done either through an immediate filing in court, mediation or collaboration. Typically, if you are earning the money, you will continue to pay the bills or provide child and spousal support to help with the finances of your spouse who doesn’t have earnings.
California has a uniform guideline formula for child support that is statewide. It is based on each party’s income, how much parenting time each parent spends with the child or children, if there’s more than one child, and other tax deduction information that gets entered into a software program that determines the amount of child support that should be paid.
Spousal support is a little more complicated for the short term and is determined by guidelines that differ from county to county. Long-term spousal support is determined by factors contained in Family Code §4320, such as cash flow available for support (the ability of the paying party to pay), the marital standard of living, health issues, earning capacity, and more.
Advantages of the Collaborative Divorce Process
One of the advantages of the collaborative process is that it creates room for creativity in dealing with financial inequalities. Collaborative divorce involves working with a team of professionals, including attorneys, financial advisors, and therapists, who work together to find creative solutions that work for both parties. This approach allows for a more amicable divorce process, avoiding costly litigation and allowing both parties to have control over the outcome.
In conclusion, dealing with financial inequalities during the divorce process can be challenging, but with the right approach, it is possible to find solutions that work for both parties. It is essential to ensure an open and honest exchange of information, establish temporary arrangements, and consider the collaborative divorce process to find the right solutions for everyone involved.
Contact an Experienced Financial Divorce Specialist
I work with divorcing couples to assist them in securing their financial futures. Call my office today at (310) 378-6606 to schedule a confidential consultation.