Disclaimer: This article does not constitute legal advice. If you have any questions about your individual situation it is best to seek the advice of an experienced legal professional.
January is often called divorce month because it’s the time of year when many people decide to move forward with divorce. There are a couple of reasons for this. You might want to spend your last holiday together with your family before you divorce. You might want to separate your incomes for tax purposes in the New Year. A divorce that resolves in the New Year is often the result of careful planning and negotiations that may have started before the holidays or in early January.
Divorce mediation can make it more likely that your divorce resolves earlier in the New Year, which can have a significant positive impact on your financial planning for the year. In California, the Waiting Period for the legal end of a marriage is 6 months, so the sooner you can file for divorce, the quicker your divorce can resolve.
Why Do People Get a Divorce in the New Year?
People often decide to get a divorce in the New Year and this can be for a number of reasons:
Staying in the home together with the kids through the holidays.
People often choose to get a divorce in the new year so they can remain in the family home together through the holidays. This can be emotionally important if you have kids together and you want to keep up your holiday traditions as a family before you’re ready to embark on your new life. Selling your family home will mean significant upheaval and if you have other properties, you might want to wait until Spring-time when the market will be busier. Even if you have already filed for divorce, you might want to spend this time as a family together.
Changing filing status before the next tax cycle
Getting a divorce in the New Year means a chance to go your separate ways from a tax point of view. If you can conclude your divorce by the end of the New Year, you will be unmarried from a tax point of view the following year. This means you get to be more strategic about your mutual and separate assets so you can both file from an advantaged position when you do file separately after your divorce is finalized. A California divorce takes 6 months to be processed but divorce mediation is an efficient process which allows you to come to a decision about your mutual assets, allowing you to carve out separate financial plans for your future. This means that even if your divorce has not yet concluded, when tax season comes around you may be ready to file married but separately, which could help to clarify your obligations.
Bonuses, Restricted Stock Units and Stock Options
Many people who are CEOs or on executive salaries get a bonus or receive restricted stock units or stock options at the end of the year. If you are getting a divorce in the New Year, these windfalls usually count as marital property which you will need to divide with your spouse. Many work-related bonuses are marital property because they are tied to income earned during the year. If you divorce in the New Year, your income will no longer be tied to your spouse in the following year. Getting a divorce resolved as early as possible makes these calculations much simpler next year.
Making a clean break and creating a financial plan for the year.
Getting a divorce in the New Year is a gift to your future. It makes space for you to create a financial plan for the year ahead as independent individuals. With the previous year in the rear view mirror, you can get a clearer picture of your community property and your potential to thrive financially apart. In a California divorce, your date of separation may be before the New Year if you made the divorce decision before then. The benefit of choosing West Coast Divorce Mediation is that you can come to a peaceful agreement on these matters, rather than wasting your energy by fighting.
How To Have An Efficient Divorce In the New Year
Getting a peaceful divorce that resolves in the New Year may be the best thing you and your spouse can do for your future. Conflict wastes time, but good planning and collaboration can make time. If you can hit the ground running by getting your divorce negotiations concluded in the New Year, this will clarify your position financially, which means you can be free from your marriage and ready to move forward with your life.
At Divorce Options San Diego, we assist people who have complex investments, overseas assets, business interests and inherited property to get a peaceful divorce that resolves quickly and efficiently. We have financial and legal expertise that we combine with our psychology and mathematical skill-set to help you optimize your shared resources to move forward in a peaceful and positive manner. Divorce mediation usually resolves quicker than any other type of divorce. This is due to reduced conflict and thorough divorce planning comprising an analysis of your marital and separate property, the tax impacts, your debts and obligations and the current market for property, investments and international currency markets. With the support of our expert divorce mediators, you are empowered to treat your divorce as a positive business decision that will leave you and your divorcing spouse in a better place. We can mediate remotely or in person at our offices in San Diego, Silicon Valley and Berkeley, CA. If you are looking to make a fresh start in the New Year, please contact our expert West Coast Divorce Mediators to learn more about our divorce mediation services.
