In Colorado, a divorce agreement and one’s personal finance situation will affect each other. Any agreements reached will impact a person’s finances and determine whether they can fulfill their obligations. As a result, individuals should always try to make the right financial decisions during and after a divorce.
One of the largest issues in a divorce is who gets to keep the marital home. However, that may rest on a flawed assumption because it does not always make sense to retain the house. Sometimes, it just costs too much money. Even if one spouse is able to retain the house, they may not be left with enough money to cover other vital expenses. Another error is failing to anticipate the tax burden due to a divorce. Sometimes, assets must be sold in order to be divided, and Uncle Sam will need to get a cut. However, spouses may not realize this until they file taxes and see that the bill is due.
Another mistake that a spouse can make is failing to draft a new budget to reflect their changed circumstances. The income and expenses will be different when there are two separate households, and it will necessarily lead to a new financial reality. However, many people fail to realize this and plan accordingly.
A family law attorney may be of help when it comes to reminding their client of things that need to be remembered and addressed during the divorce. Proper personal financial planning begins with the divorce agreement. If these issues are not addressed in the agreement, one or both spouses may be left with an unpleasant surprise when their new financial reality sets in. Thus, planning is every bit as important in a divorce as negotiation.