Divorce deconstructs the family unit and in many instances can lead to grave repercussions for one’s finances. In cases where spouses share substantial amounts of assets, financial matters relating to property division and alimony can be hard fought and drawn out.
Recently it was reported that Kendra Wilkinson was considering separation from her famous husband after the latter’s alleged cheating scandal with a transsexual model surfaced. While official separation papers have yet to be filed, the couple is allegedly heading for a high asset divorce with upwards of $12 million on the line, because the couple had not signed any prenuptial agreements. If they divorce, the estranged couple will experience the process of property division of their assets including their palatial California mansion.
In many cases, one spouse does not actually know how much the other spouse is worth. It is imperative for spouses to determine the actual financial situation of the other before a divorce proceeding. It is also important for partners to assess the marital lifestyle as it may be an indicator to the financial situation of the estranged spouse. Professional help may be required to uncover assets hidden with relatives or co-workers, investments in artwork and so on.
California law bases spousal support, as well as property division, on various factors. The standard of living in the marital home is assessed and then spousal incomes and separate property are valued to gauge not only property division but also alimony in some cases. Then the duration of the marriage as well as the individual age of the spouses is considered and in some cases, even pension accounts may be divided in divorces. All this leads to the fact that it is so important to know one’s financial situation before a divorce proceeding begins.
Source: International Business Times, “Kendra Wilkinson considering divorce from Hank Baskett after Ava London cheating scandal: Report,” Rebecka Schumann, July 1, 2014