On behalf of Cooper, Tanis & Armas, P.C. posted in divorce on Tuesday, January 19, 2016.
The month of January can be a popular month for people in Colorado to file their divorce paperwork. After the holidays, many people who were considering ending their marriage decide to get a fresh start in the New Year. Although it can be tempting to get the process over with quickly, it is important for divorcing spouses to think carefully about their finances.
When people rush through a divorce, they could end up making financial mistakes that have a negative impact on their future lives. For example, many people fail to consider the tax implications of a particular divorce settlement. A divorcing person should consider taxes before fighting to keep the family home or other valuable marital assets.
Another financial mistake that many divorcing people make is failing to update joint bank accounts and credit card accounts. If two divorced spouses are on the same credit card account, both spouses’ credit scores will go down if one spouse fails to keep up with payments. When divorcing spouses have a joint bank account, the money in the account could be drained by one spouse without the other spouse’s knowledge. To avoid unintended estate planning mistakes, it is important for a divorcing spouse to update the beneficiary designations on all of their financial accounts.
Often, one spouse in a marriage has a greater knowledge of the financial assets than the other spouse. If a divorcing spouse is unsure of the value of the marital assets, a family law attorney can often suggest appraisers who can handle this type of matter. The attorney can also provide insight into the tax implications of various divorce settlements.