Consider Your Financial Situation Before You File for Divorce!
Consider Your Financial Situation Before You File for Divorce!
•If you have been living on two incomes, consider that you will be living on your own resources following the divorce.
•If the bulk of your marital assets are in real property or a business, it will take time to obtain your portion of those assets after the divorce is final
•Divorce proceedings can be complex, and you will need to have enough cash to live on until you and your ex-spouse reach an agreement.
Before you file for divorce, make sure that you have enough assets to live on your own. And be careful not to do the following:
1. Falling behind on your bills
Even if you have to borrow money, it’s important to pay the bills. If you don’t, you will have to pay interest anyway. You could also hurt your credit rating, which means you may get turned down the next time you try to borrow money.
2. Making decisions too fast
If you rush or don’t have a plan, you may make costly mistakes with the money you get after your divorce. Before you spend, it’s important to decide what you will need that money for in the future.
3. Doing nothing
Acting too quickly can be a mistake, but so is taking too long to sort out your finances. Here are some of the dangers of doing nothing:
•If you have money to invest and leave it in a bank account, you may miss chances to grow your money. Your may even lose money.
•If you and your ex-spouse still have joint accounts and credit cards, one of you could spend money or go into debt, so be sure to close them down quickly.
•If you delay making changes you need to make, like cutting your costs or getting a new job, you may spend money you need for your future.
•If you plan to claim spousal support, you need to file within two years of separation. If you wait too long, the court may dismiss your claim.
•If you don’t update your will and insurance plans, you may create big problems for your children or other family members.
Remember: Don’t take too long to plan your future after divorce.
Sometimes the worst thing you can do is nothing. You need to make wise, timely choices to help you reach your financial goals. If you’re not sure what to do, or you’re afraid of making a mistake, get advice from an expert.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.
Located in Denver (303) 299-9484 and Fort Collins (970) 472-1838, The Harris Law Firm is Colorado's largest family law firm. Focusing exclusively on Colorado Divorce and Colorado Child Custody and Support, the firm's philosophy is to work with you to resolve your legal matter in the best way possible. When you consult with one of our attorneys, the expert legal advice you receive will help you understand your rights and options according to Colorado law. And when you retain this AV rated firm, the many years of combined experience provided by your legal team will ensure that the resolution of your case is handled in the most organized, timely, cost efficient and effective manner possible. If you want to limit conflict and protect your rights, call us today to schedule a private consultation in our Denver or Fort Collins offices. Call us at 303 299 9484 or send us an email at info@harrisfamilylaw.com.
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