Although every state has different laws regarding dissolution, the challenges that come with ending a marriage are somehow similar everywhere, especially when it comes to finances. For example, parents who divorce are typically concerned about child custody. Besides that, they are also worried about their financial situation while raising the child. The same applies to divorcing couples who do not have any children. These spouses feel uneasy and unsure about how the divorce would affect their lifestyle, living situation and financial security.
Colorado spouses need not be frightened about their financial future in the event of divorce, however. There are a few steps that must be taken once a divorce is final. First, divorcing spouses should prepare themselves for the inevitable emotional and financial conflicts of divorce.
Divorce always has drama, ranging from personal issues to child custody disputes. With regards to finances, reduction in net income and division of assets will be experienced. Spouses may also have to move out of the family home and learn different skills to be financially self-sufficient. On that note, it is important for spouses to address financial matters head on because they may complicate financial recovery after divorce.
Spouses should re-title their non-retirement assets, together with bank accounts, property and brokerage accounts. After receiving their share of assets, transfer them to a new account. A divorcing party should remove his or her name from any accounts jointly owned and also cancel joint expenses and settle debt obligations.
At first, the difficult times accompanied by divorce can be stressful. However, if Colorado spouses learn to focus on the things that matters, such as their financial stability, debts, marital assets and substantial financial documents, they may find will to protect their rights and interests after divorce and achieve peace of mind regardless of the separation.
Source: Forbes "Finances For The Newly Divorced Made Easy," Neal Frankle, Sep. 15, 2014