Colorado couples who are in the midst of a divorce may face hardships regarding the settlement process. Especially in high-asset divorces, couples can overlook some important financial aspects. Understanding these aspects may help avoid complications during divorce proceedings.
When a Colorado couple gets divorced, they split up their property in one of two ways. The first way is for the couple to decide on their own how property is divided. However, this scenario may not be possible if the couple that is getting divorced is not on good terms. When an agreement cannot be reached, community property might be split in a way that is equitable to a judge while property acquired before the marriage remains in the hands of its owner.
Some Colorado couples may mistakenly believe that when they end their marriage, they are also ending their joint financial commitments. Any debt or assets that were in a person's name when they were married are still seen as belonging to both parties after a divorce. This can cause significant problems with a person's credit score and debt-to-income ratio, especially where a house is concerned if a couple does not sell it.
For divorcing couples in Colorado, deciding how to handle proceedings may prove to be difficult. Divorce rates involving couples over the age of 50 is on the rise, according to some reports, and older couples might need to focus on different aspects of divorce when planning for financial stability after the proceedings are over. Many people consider their homes to be an important asset to consider when involved in negotiations, but Social Security benefits and retirement accounts might also be effective assets when considering the future.
Custody battles over children have long been an important, and sometimes unpleasant, feature of divorce cases in Colorado and around the country. Other couples may another very emotional dispute to settle if they own pets. A recent high-profile divorce dispute between two Hollywood stars, for example, came down to the sentimental value of three prized dogs. Divorce judges and attorneys are seeing many such cases arise.
Individuals in Colorado who are contemplating divorce may be interested in the story of a couple seeking an amicable separation. In a recent article, a financial advisor discussed certain elements of property division that the couple should keep in mind during proceedings. Topics included difficult-to-divide assets and tax considerations.
When Denver couples go through divorces, the equitable division of marital property is often a significant issue in the proceedings. Further compounding the difficulties of asset allotment is the fact that, in some cases, parties are unwilling to make their support payments to ex-spouses. For those who believe they may face this problem if they pursue a divorce, it may be wise to proactively protect against such a situation.
Many Denver couples may feel that the only option they have following a divorce is to sell the martial home. It is important to understand that every divorcing couple is unique, as is the method they take during asset division. Therefore, what they choose to do with their home depends on a number of factors.
In Colorado, couples must divide their assets according to the rules of equitable distribution. If the pair is unable to come up with an agreement on their own, the courts will decide on their behalf. In many cases, division of marital property will result in a fairly even split. However, depending on how the distribution takes place, one spouse may be exclusively liable for future taxes that can ultimately lower an asset’s overall value.
Many people divorcing in Denver may feel that dividing assets following a divorce is mostly about the marital home, retirement plans and the money in the bank. However, those who realize that property division encompasses much more than that may walk away from the union financially stronger.