Being married over 20 years has made you appreciate your spouse in many ways. They've generally been there for you and provided for you when you needed support. You did the same.
Divorce prompts you to answer many questions while addressing a variety of concerns. While property division is likely to take precedence over debt, you can't lose sight of your liabilities.
Divorcing couples in Colorado and around the country are often unprepared for the financial consequences of ending a marriage according to a study published on Jan. 14 by Fidelity Investments. After surveying 1,107 divorced Americans between the ages of 25 and 75, the Boston-based financial services company discovered that it takes about five years on average to recover financially from a split. However, getting back on track can take much longer when spouses are not involved in day-to-day financial decision making. Four out of 10 of the spouses surveyed who told researchers they did not involve themselves in financial matters said that they had yet to recover from their divorces.
When you are married, it's likely that you'll make purchases alongside your spouse. And when you use a credit card to do so, it's possible that you'll begin to tally a balance.
Preparing for divorce means preparing for property and debt division. As a result of your negotiations and compromise, as well as the other person's approach, you're not likely to get everything you want. However, when you understand your legal rights and the mistakes you need to avoid, it's much easier to come out the other side with a clear understanding of your situation and what the future will bring.
Colorado residents who are considering divorce should begin financially planning as soon as they consider the split. Planning financially ensures preparation for a healthy financial life post-divorce and might help residents ensure they get a fair settlement.
Your wedding day is closing in and you've yet to discuss the potential of creating a prenuptial agreement. It's your hope to talk this out with your partner, but you have concerns about bringing your thoughts and feelings to light.
Divorce can lead to many financial challenges, and this is true for women in particular. Women already make less than men on average, and after a divorce, their incomes are more likely to drop than men's incomes, which often increase. At 27%, the poverty rate for divorced women is three times higher than it is for men. Women are also still awarded custody the majority of the time, and this can cause additional financial worries.
The divorce process requires you to review the finer details of your financial situation. From the money in your bank account to your family home to your retirement savings, any and all assets will come to light.
You become so familiar with your family house that you never even want to entertain the idea of living anywhere else. But if you decide to divorce, you may soon come face to face with the realization that you need to find a new place to call home.