When couples in Colorado get divorced, one spouse may try to conceal assets from the other person. One way to do this is to hide portions of one's income, such as bonuses, commissions and dividends. For example, a person may receive a year-end bonus but ask an employer to hold on to it until the divorce is final, so it is not included in marital assets. This might be detected if the individual's spouse knows when the bonus is paid and notices that it is not included in the list of assets for the year.
Some people may assume that if they keep their marital finances separate, a court will not require them to split any of that property in case of divorce. In an equitable division state like Colorado, the assets that individuals earn may be considered their own separate property, but people should not count on this being the case. An attorney for a spouse may successfully argue that these assets should be shared. If this is the case, the assets will be divided equitably.
When Colorado couples decide to divorce, one of the biggest questions is what will happen to the family home. This is often the largest asset that is acquired during the marriage. Furthermore, many people become emotionally attached to the family home.
Colorado couples often look at three basic options when determining what to do with the marital home after a divorce. These include retaining the original joint mortgage, refinancing the joint mortgage or assuming the original mortgage. Each option has its pros and cons.
When people in Colorado suspect infidelity, they may not first think of the financial side of the issue. However, carrying on an affair is often an expensive project. People buy gifts, rent hotel rooms or go out to fancy dates. In some cases, individuals may establish entire lives with apartments and basic daily items. The costs of infidelity can add up, and many people first learn of their spouses' affairs due to the changes in spending and saving habits that accompany the extramarital relationships.
Colorado residents going through a divorce have likely seen firsthand how difficult it can be to separate two lives that have been together for a period of time. The biggest challenge that they may face is dividing their assets. This is especially challenging if they have a co-owned house.
According to a 2016 American Academy of Matrimonial Lawyers survey, retirement accounts were among the assets fought over the most in a divorce. For those in Colorado and elsewhere who are splitting a 401(k) in a divorce, it is important to do so correctly. Otherwise, a taxable event may occur, which could reduce the value of the account. Transferring funds from a 401(k) in a divorce is done through a qualified domestic relations order (QDRO).
Divorce happens to couples of all ages. While many couples divorce in their 20s, 30s and 40s, the rate of people divorcing after age 50 is higher than ever. The Pew Research Center states that the divorce rate has doubled for American adults ages 50 and over.