When every attempt to save your marriage fails, you may be left with no choice but to file for a divorce. Divorce can be an emotionally and financially taxing process. However, long before things like child custody and support are decided, you will need to prep your finances for what lies ahead.
Since no two divorce cases are the same, tailor-made advice regarding your financial readiness can only come from someone familiar with your situation. That said, here are a couple of steps that you can take to prepare your finances for an impending divorce.
Audit your marital assets and responsibilities
One of the most contentious issues you will deal with during the divorce is marital property division. In fact, as soon as you formally file for divorce, the court will require you to disclose what you own collectively as a couple and individually.
It is important that you make an accurate disclosure of the marital property (and this refers to what you own and owe). This will ensure that you walk out of the marriage with your fair share of the marital property per Colorado equitable distribution laws.
Avoid big-budget expenditures
You are free to spend your hard-earned money as you wish, but it is important to understand that doing so when divorce is on the horizon could raise eyebrows. For instance, your soon-to-be ex might question whether you are attempting to defeat justice by hiding marital assets. Still, your spending habits could impact the outcome of your child and spousal support cases.
Sever financial ties with your soon-to-be ex
It is not uncommon for you and your spouse to operate joint bank and credit card accounts. If this is the case, it is important to open a new account that only you can operate. Likewise, if you had joint credit or debit cards, be sure to close them.
Divorce can leave you with an uncertain future, financially speaking. Knowing your legal options and obligations during the divorce can help you take appropriate steps to safeguard your financial interests.