Even when divorce is the most appropriate course of action to take, some couples choose to put off filing out of fear that their finances will forever be impacted. Colorado couples with a high-net worth are not immune to this worry, especially if one or both parties have worked hard to build and maintain their financial worth. Of course these concerns are understandable, but careful planning and asset valuation can reduce tension and confusion during complex property division in a divorce.
Asset valuation is a crucial step to understanding the overall financial situation of a couple before divorce. With a clear understanding of various accounts, investments and other assets, individuals can more accurately plan for their financial future post-divorce. For instance, some investments produce income at regular intervals, while other assets — such as a home — typically require a larger financial commitment.
This type of preparation can help divorcing couples more accurately prepare for financial life after divorce as different situations arise. If both parties are already fully aware of their financial situation, should alimony or child support be ordered, it can make the process of determining exactly how much relatively straight forward. These payments can then easily be incorporated into a budget.
Of course, most high-asset couples do not reach financial success without having a solid handle on budgeting and comprehensive asset handling, but these skills do not necessarily translate directly into divorce proceedings. Remaining vigilant and aware of how asset valuation and other factors can affect complex property division is usually quite helpful when dealing with these issues. However, should negotiations be unsuccessful at handling these issues, a Colorado judge can consider the evidence and make a final judgment for the divorce settlement.
Source: entrepreneur.com, “5 Essential Tips for Financial Planning After Divorce“, Andrea Murad, July 10, 2015