When people in Colorado get divorced, they should be aware of what can happen in the property division process. This split may involve the liquidation of assets or reassignment of them in such a way that an asset is devalued. In order to reduce the chances of this occurring during the divorce, several attorneys have offered useful tips on handling assets.
For the spouse filing for a divorce, the action should be timed so that it’s as financially beneficial as possible. Assets are frozen when the divorce filing occurs, as well as the valuation of your assets. If business assets are involved, you should make certain that this financial halt won’t impede any major plans that may require liquidity. Change your will prior to a divorce as well, because the conditions of your will may be frozen along with your assets during the divorce proceedings.
After filing, financial assets will have to be valued so that a fair split can occur involving all marital property. It’s important to be honest about your financial position and to use a financial expert to perform the asset valuation whenever possible. This will ensure that there are no valuation surprises that may lead to post-divorce payments due to hidden or undervalued assets. Both spouses should remember to transfer their retirement accounts before the divorce is settled, as waiting until after the divorce may lead to owing the ex-spouse money.
Residents of the Fort Collins area have a right to file for divorce at any time. The financial decisions made prior to the filing can make a difference in how each spouse comes away from the divorce proceedings though, providing incentive for those looking to file to prepare adequately beforehand.
Source: Fox Business, “Divorce Attorneys Share their Tips to Avoid Financial Mistakes When Splitting Up,” Kate Rogers, Feb. 19, 2013