You and your partner have decided to go your separate ways, but there’s still the matter of splitting up your assets. Rarely as easy as dividing down the middle, things you may think are isolated could keep you tied to your partner for years to come.
Divorce can be an expensive prospect, especially with Colorado sitting in the top 10 most expensive states for ending a marriage. But costs can be a small concern when compared to the assets that could be on the table, and you might be surprised by what you and your partner share.
Divorce proceedings can be complicated, but especially so when large assets are at stake. Make sure you know what guidelines apply in Colorado when going over your finances:
- Business shares: Your business will likely come up in the divorce. The courts will look at when you started it, how much you and your spouse have invested and it’s increased value over time. Your spouse could retain shares, profits or even a say in operations.
- Debt liability: You share just about everything in marriage, and debt is no exception. If your spouse declares bankruptcy at some point after the divorce, debtors could come calling at your door. Those outstanding balances could become your problem even if the courts assign the debt to your spouse in the divorce proceedings.
- Retirement accounts: It won’t just be your bank accounts on the line, but your investments as well. The courts could view a 401(k) you earned through work, an IRA you’ve been paying into or a government pension marital property. How you funded the account and where it fits on the timeline could mean your partner is entitled to a share.
Knowing what could be in store for you in your divorce proceedings can go a long way to avoiding shock once the court tallies your assets. An understanding of division in divorce may help you build a plan for keeping things separate.