The end of a marriage entails both emotional and financial difficulties. While emotions take time to resolve, it is helpful to prepare for the financial fallout that often accompanies a high asset divorce. Colorado residents may choose to seek financial advice to work through any financial landmines successfully.
Most spouses are able to anticipate the changes they will need to make in order to manage the costs of both a divorce and life afterwards. However, along with the expected increases in housing costs and potential tax changes, there are other financial setbacks that might be unpleasant surprises. These can include taxes and penalties for dividing retirement accounts and stock portfolios. In addition, it may be easy to exceed the capital gains threshold which may consume the profits that were expected from the sale of a property in an upscale neighborhood. Finding replacement housing for both parties may cost more than expected, especially when expenses such as repairs and maintenance are taken into account.
Child support is usually calculated according to the state’s scale, but does not include the additional costs of extracurricular activities, college education and medical needs such as braces. These may be issues that can be negotiated in order to avoid constant bickering in the future. Along with these financial pitfalls, a spouse may discover that their partner developed a gambling problem or was avoiding payments on joint credit accounts. It could also come to light that a spouse was hiding assets or depleting accounts without the partner’s knowledge.
There are any number of problems that can come to light during a high asset divorce. Financial professionals can provide assistance in ensuring that all financial matters are disclosed during the divorce proceedings. In order to ensure that a settlement agreement provides one with financial security, Colorado residents may be best served by consulting with an attorney who is skilled in these types of proceedings.