Any separation or divorce will impact a couple’s finances; however, those with high assets may find those financial impacts magnified. High asset Colorado couples who are going through a separation or divorce will want to evaluate how their finances will be affected by their split and plan accordingly. The failure to do so can result in confusion and stress, and it can even be devastating for one or both parties involved.
The first thing any couple must do is review their financials and perform an asset valuation. This means taking stock of all sources of income, assets, property, expenses and debts. A separating couple, of course, needs to account for the needs of any children involved and this includes any future needs, such as braces and college.
One spouse may be counting on alimony as a means of support, and the other spouse may be worried about making the payments. Alimony will be determined by several factors that will determine how much is awarded and how long it will be provided. Each spouse will need to plan their finances accordingly, and the one receiving alimony will need to consider what will happen when he or she no longer receives those payments. Furthermore, alimony has tax implications. The one paying the support may find alimony is tax deductible, and the one receiving the payments should be aware that money is taxable.
Those with considerable assets also probably own several properties. The fate of these properties, including the marital residence, will need to be considered as well. The spouse who receives the family home may find the house is too much to maintain considering the new living arrangements. Lastly, if one spouse did not work during the marriage, he or she may have to enter the workforce after the divorce. Such a decision may require additional education and training for which he or she will need to budget.
Any divorce can be complicated, but adding high-value assets to the mix can obviously increase the complexity. However, being prepared and having a plan in place will help. An attorney experienced in high-asset divorces will be able to help an individual assess their current financial situation and plan for the future while also assisting with the entire divorce process.