How do you Financially Prepare for Divorce?

What is involved in the financial preparation for a divorce? This is a very important question because Colorado has a requirement that parties that are going through a legal separation or a divorce, or even in certain child custody cases when there’s child support involved, exchange essential financial documents as part of the requirements by the court and by the law here in Colorado.

 It’s important in your preparation for a divorce that you know about all financial circumstances of your marriage even though you may not be the one that has regularly invested money or controlled the pension or retirement account or have been responsible for paying off the debts. You should have a good idea going into the divorce or family law case what are your financial circumstances. You should have a list of all the property that the two of your own or have invested in. It would be a good idea to get a credit report that would show what all the debts of both parties are.

 

All loans, credit cards, mortgages. If there are any tax liens on the property. Obtaining a printout from the clerk at the court regarding the property is always a good idea. Determining what values a house may have is easy. You contact a realtor, and ask a realtor to prepare a comparative market analysis or CMA for your house. That can apply to  boats and cars that either party has acquired during the course of the marriage.
There’s one simple rule to keep in mind when you’re determining the financial preparation in a divorce. Colorado really doesn’t care who may have property titled in his or her name. The essential question is this: Was the property acquired during the course of the marriage? If so, regardless of how it is titled, it is going be marital property. If you had separate property. Let’s just say you had an IRA account that had a hundred-thousand dollars in that account on the date that you were married, and you’ve been married for ten years. That a hundred-thousand dollars grew to a hundred-fifty-thousand dollars. The growth, that is the fifty-thousand dollars that that account grew during the course of the marriage, is going to be determined to be marital. That will be subject to division by the court.
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