Though many high-asset couples have a prenuptial agreement, that does not necessarily prevent tension from arising over certain issues during a divorce. Asset division can be of particular trouble for some who are misinformed as to how the process actually works. In Colorado, assets are split equitably, which does not equate to a 50/50 split as many still believe.
As an equitable distribution state, marital assets are to be split according to what is most fair and equitable. This might mean that, instead of selling a house and splitting the profit, one person might retain ownership of the home and the other can retain full ownership of a retirement account. While neither of those assets were halved and then distributed, this kind of asset separation is common in equitable distribution states.
However, this does not mean that an equitable distribution won’t closely resemble a 50/50 split, and that might leave some nervous about the state of their estate. Unfortunately, some people continue to try and hide assets during a divorce, even though it has become fairly easy to locate certain funds or investments tucked away. Many high-asset divorces include full disclosure of all financial records, and large withdrawals or transfers are easy to spot.
Being as informed as possible during the divorce process means more than just knowing what steps to take; it also means understanding what courses of action should be avoided. So, while it is a good idea to take careful review of marital assets for a rough idea of what might be an equitable split, this does not mean that certain assets should be stashed away in an attempt to retain ownership without fighting an ex. For those in Colorado who suspect that an ex may be hiding important finances or assets, it is important to address this concern in as timely a manner as possible to try and secure the most favorable asset division possible.
Source: The Huffington Post, “5 Divorce Myths to Legally Separate From (Even If You’re Single)”, Jessica Mason, April 9, 2015