Even when both parties are amicable, a Colorado divorce can be an emotionally complicated and difficult process. There are strong emotions, such as anger, sadness and loneliness, and these feelings can drive you to act and think in certain ways during this stressful time. In reality, your emotions are temporary, and they rarely reflect what will be best long-term. You would be wise not to allow your feelings to dictate your decision-making process.
Divorce is going to bring significant financial changes to your life. Unless you and your spouse are very wealthy, it is likely that you will undergo changes in your lifestyle for a time. It is in your interests not to lose focus on what is really important, which is your long-term financial stability and security.
The financial realities of divorce
You may not fully understand the real ways your divorce will impact your financial future. If you lose sight of the reality of how your circumstances will change, it could negatively impact your long-term interests in various ways. Consider the following facts about your divorce, your money and your lifestyle:
- It is likely that you will have to cut back on spending, adjust your expectations and understand that things will not be the same for you, at least for a time.
- Property division is rarely simple, even if the divorce is amicable. It is prudent to have reasonable expectations regarding conversations around money and property.
- Mediation or out-of-court negotiations could save you both time and money.
- Not all marital assets are equal. An asset that you want to retain may not hold its value, or it may leave you with unwanted tax obligations.
- There will be tax consequences for many property division and money-related decisions you make during your divorce.
- For one who has been a stay-at-home parent for the duration of the marriage, a divorce may necessitate a return to the workplace.
Divorce can require you to make overwhelming decisions regarding your future. While the financial impacts of this process will affect you for years to come, it is possible to secure terms that will allow you to look ahead with confidence. At this critical juncture in your life, it is in your interests to set aside your temporary emotions and consider how you can make choices that will result in a final settlement that provides you with security and stability.