Preparing your Assets for Divorce

Preparing your Assets for Divorce
December 25 12:48 2018 Print This Article

If you have realized that the end of your marriage is near, it is in your best interest to do everything you can to prepare for the separation. Though you might feel vulnerable during this period, never leave your hard-earned assets vulnerable even you and your partner signed the necessary financial agreements before the marriage.

During Denver divorce, both partners always want to complete the process smoothly. The law allows each of them to hire an attorney. If your spouse’s lawyer is experienced, he or she might find weaknesses in your prenuptial agreement. That leaves your assets exposed, and you may end up paying more than you should after separation. Thus, the best defense is preparation. Here are strategies and tips to help you protect your assets during your divorce settlement.

1. Understand divorce policies in Colorado

Basically, Colorado is considered an equitable distribution state. That means that the court will consider your contribution, financial situation, and assets (sperate and marital). All the marital assets are appraised, and the court will split them fairly. Remember, the assets won’t be divided base on a fault. That means it won’t matter whether or not you are the major cause of the divorce.

2. Check the sworn financial statement

During a divorce, the court will conduct a thorough look at your financial situation. These details are always communicated via the sworn financial statement. This statement requires you to fill in your monthly expenses and budget. It will help the court to determine the amount of child support or alimony that should be paid and to whom. While filling in this statement, take a keen look at your finances, and determine what the future might look like.

3. Consider separating the joint accounts

In case you have been contributing a joint account with your spouse, it’s time to get it closed. All the assets you obtained during your marriage are perceived a joint property. However, having a separate personal account can give the court a clear picture of your financial contribution.

4. Get proof of inheritance and personal gifts

During a divorce, the court will appraise and distribute all joint assets.  It is in your best interest for the court to make an inventory and evaluate your personal property. Note that the following assets (or properties) should not be considered in any divorce settlement.

  • Assets acquired by device, gift, or descent
  • Assets excluded by an acceptable agreement by the spouses
  • Assets that were acquired in exchange for assets obtained before the marriage
  • Property obtained by a spouse after a decree of legal divorce

In case the value of separate assets increases during your marriage, the court will consider this increase in value a marital property. Thus, it’s advisable to obtain proof of separate assets to ensure that you can keep it after the legal separation. Besides, it is essential to appraise your current value of assets to adequately prepare for the amount of property that might be distributed during your divorce.

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