Colorado’s divorce laws require a fair division of marital assets. Unless a couple has a signed prenuptial agreement, each spouse has a right to receive a portion of a property’s value.
A family court judge may divide property by fairness, but it may not seem reasonable to both individuals. Some couples owning high-value assets may see a drastic reduction in their wealth.
Time asset liquidation appropriately
Assets that require liquidating before each spouse can take his or her fair share may not have an enviable or extraordinary value at the time of a divorce. Taxes or other fees may cut down the net proceeds received.
A couple may consider planning to dissolve the marriage during a period when certain assets are worth more. While it is often difficult to accurately time property values, a discussion with a professional appraiser may provide some guidance when deciding when to buy out assets from a spouse.
Researchers’ predictions regarding gender differences
Researchers discovered that individuals born before 1960 generally experience a 50% reduction in their standard of living after a divorce. The women in the study noted that their standard of living diminished by about 45%. The loss of financial support from a spouse’s income may contribute to the reduction, and not all women may have the skills to begin a new career. The men in the study, however, only reported a 21% reduction in their standard of living. And, those who were ordered to pay alimony or spousal support did not significantly change their personal spending habits.
Don’t face your divorce alone
No matter your age, gender or level of wealth, you should not tackle the details of a divorce on your own. There are too many opportunities for mistakes.