With an estimated 50 percent of all marriages ending in divorce, it may come as no surprise that many couples simply want to get through the process as quickly as possible. However, if the division of marital assets is not undertaken with careful consideration, then the spouses may suffer the financial consequences later. Colorado residents who are preparing to file for a dissolution may benefit from thoroughly reviewing their assets first.
There are several key points that seem to evoke the most conflict during property division negotiations. These include the family home, businesses, tax liabilities, life and health insurance policies, and the division of retirement accounts. In many circumstances, a spouse may be willing to compromise in an effort to bring the process to a close. Unfortunately, this could lead to one party bearing a higher financial burden when there are unaccounted for costs or expenses — especially if one elected to keep the home and the cost of the upkeep exceeded one’s expectations.
Many settlements include provisions for one spouse to maintain insurance policies. In spite of these agreements, there is usually no option for a spouse to ensure that the premiums are being paid. The parties may be better served by including provisions for periodic reviews of these policies to make sure they are current and still meet one’s needs. If a business is part of the division, then reviewing both the costs and anticipated income may allow each party to make an informed decision on how to address these types of assets.
Regardless of the situation, almost every divorce will come with tax consequences. The better a couple is informed of their possible options, the more equitable the division of marital assets may be for each spouse. Colorado residents who are contemplating filing for divorce may find that an experienced attorney can be an invaluable resource throughout the process.