Every day, hundreds of couples spend time, money and energy planning the perfect wedding. There may be far fewer couples who have a back up financial plan in the event a divorce becomes a reality. However, in light of the fact that many marriages do not survive, Colorado residents may benefit from having an idea of what they would need financially should they become single in the future.
Many couples take into consideration what they need for retirement, but it may be just as important to do careful planning during a divorce. The decisions that are made during a dissolution can have serious repercussions for the rest of one’s financial life if finances are not given careful consideration. When going through the process, it is important to assemble a team to help one plan for success. With the assistance of financial planners and other professionals, it may be easier to assemble all of the assets and debts that a couple will have to take into consideration when determining how to divide these as equitably as possible.
Furthermore, it will be helpful if one can gather all of the financial information relating to the marriage for the past five years. This will enable one to form a clear picture of the amount of money one will need to maintain the current lifestyle. Other considerations to keep in mind are details such as child support — if applicable — spousal support — both temporary or permanent — and any other liabilities or income that may apply in a given situation.
Social Security is one other asset that may come into play if the marriage lasted a minimum of ten years and the other requirements apply. Also, if one holds life insurance or other benefit accounts, these will need to be updated to reflect the divorce. While a divorce can be a confusing and emotionally taxing time, it does not have to be the end of financial goals if one prepares carefully. Colorado residents who are uncertain as to where or how to begin the process may seek information from an experienced family law professional.
Source: kare11.com, “Navigating divorce while keeping finances straight”, Kim Insley, Sept. 13, 2017