Protecting yourself during and after divorce

When two lives have been intertwined in a marriage for several years, separating the smaller details of those lives can often prove to be difficult. While it would be understandable to assume that what is outlined in a divorce settlement is reflected in the affected areas of one's life, this is unfortunately not always the case. For those in Colorado pursuing a divorce, there are some key financial details to keep in mind.

Many people have retirement accounts, life insurance or even a pension plan through an employer. These accounts usually name a beneficiary, meaning to whom the assets or funds will be distributed upon death. Generally, even a will does not outweigh the named beneficiary on an account. For example, a person might have specified that his or her spouse should receive the benefits of a pension plan in his or her will, but if an ex-spouse is still named as the beneficiary in the account's documentation, then the funds will instead be passed on to that ex-spouse. 

Additionally, joint lines of credit are far from uncommon for married couples. Everything from a mortgage for a home to a credit card reserved for emergencies can have both spouses listed, making both responsible for any debt owed. Any debt that cannot be paid off before the finalization of a divorce is usually addressed during asset division, divvying up who is responsible for what. However, no matter what a divorce settlement states, a creditor can still hold both parties responsible for non-payment. It is often a good idea to suspend a line of credit to prevent further debt from accumulating while the initial balance is being paid off, and a check of a credit report can provide an idea of the status of shared accounts.

Especially when there is debt that must be split between Colorado spouses, keeping a close eye on financial matters can be a good idea. When possible, a soon-to-be-ex spouse should be removed from certain accounts as a beneficiary, while any jointly held accounts should be closed. Although it may be tempting to simply address these matters in a divorce agreement without making the additional changes, failing to do so can leave a person and his or her assets vulnerable and unprotected.

Source: Forbes, "6 Key Money Matters After You Divorce", Leslie Thompson, Jan. 8, 2015

No Comments

Leave a comment
Comment Information

Our First Meeting

Learn what happens at our first meeting.

Learn More »

Why You Should Hire An Attorney

Learn about the benefits of hiring an attorney.

Learn More »

Our Client Testimonials

See what our clients say about us.

Read All »

Arrange a consultation with our lawyers to discuss your specific situation. Call 720-541-5873 or fill out our contact form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Changing the face of divorce.
Contact Us

Littleton Office
13978 W. Bowles Ave. Suite 200
Littleton, CO 80127

Phone: 720-541-5873
Littleton Directions

Craig Office
11 W. Victory Way Unit 205
Craig, CO 81625

Phone: 970-239-4354
Craig Directions

Steamboat Springs Office
465 Anglers Drive
Suite 2D
Steamboat Springs, CO 80487

Phone: 970-628-3795
Steamboat Springs Directions

Grand Junction Office
1003 Main Street
Suite 200
Grand Junction, Colorado 81501

Phone: 970-372-4008
Map & Directions

Aspen Office
600 East Hopkins Avenue
Suite 201
Aspen, CO 81611

Phone: 970-329-2335
Map & Directions