Divorces have many pitfalls that can lead to later problems if when Colorado spouses make mistakes in the property and asset division. There are several common areas in which errors are often made by those who are going through a divorce. Being aware of them may help people avoid them.
One of the most common errors a person might make is insisting on staying in the home. House payments may be difficult to afford for the newly-divorced spouse alone. If the spouse later chooses to sell it on their own, they may also be facing a considerable capital gains tax.
People also make the mistake of not thinking about the long-term financial impact of their choices. They may do things such as giving up a sizable interest in their spouse's individual retirement account or pension in exchange for getting the home, leaving themselves little for their future retirement needs. People also sometimes fail to consider the costs that will be involved with selling or disposing of an asset they will receive in the property settlement. Finally, people may make poor decisions in their property settlement simply to have revenge on their former spouse. The more they litigate, the higher their attorney fees will be, increasing the costs of their divorce.
Divorces can be highly emotional and full of conflict, but people may be better off by keeping calm and making certain they do not make financial mistakes in their division of marital assets. People may want to have a frank discussion with their family law attorneys about their finances and future goals. In some cases, an attorney may help their clients to negotiate and secure a property settlement agreement that is both fair and smart. Planning wisely through the divorce may save people a substantial amount of money later on.
Tags: Divorce
Related Posts: What are acceptable grounds for a divorce in Colorado?, Infidelity and how it relates to divorce, Review of legal separation in Colorado, Why should I consider a prenuptial agreement?