You are right to assume that divorce will bring significant changes to multiple areas of your life. The choice to end your marriage will have a ripple effect into your financial life, and you may find yourself making adjustments that you didn’t expect. It is in your interests to prepare ahead of time for the potential adjustments you may have to make because of your divorce.
Because of the possible financial repercussions of a divorce, you may not be able to afford the same lifestyle you enjoyed before. However, with preparation and a practical financial settlement, you can enjoy stability and security for years to come. Before you agree to terms or make any decisions that could negatively affect your future, it is prudent to consider the potential long-term impact these choices could have on you.
What will you be able to afford after your divorce?
Colorado property division laws require a couple to equitably divide all marital assets during a divorce. Marital property includes anything you and your spouse bought, collected or earned over the course of your marriage. In order to achieve a fair financial settlement, you will have to account for all marital property, as well as determine an appropriate value for all assets subject to division. Couples will also likely have to divide marital debt.
You could possibly leave your divorce with fewer assets and a certain amount of debt that will be your responsibility. At this point, it is helpful to consider these changes and create a post-divorce budget. You have the right to seek certain things to which you believe you have a rightful claim, including spousal support and to retain specific assets. While a court can make a final determination regarding your financial settlement, it is also possible to negotiate a reasonable financial settlement with the other party.
Lifestyle changes in the future
Lifestyle changes may be inevitable for your post-divorce future, but you can still secure terms that allow you to look ahead with confidence. An assessment of your specific financial situation can provide insight into how you can seek a final order that is fair and sustainable. Before you agree to any terms or critical divorce-related decisions, first consider the long-term implications of that decision.