The emotional and personal factors that are part of a Colorado divorce are frequently the most talked about issues, but property division is something that can be a bigger problem over the long term. As part of property division, the separation of assets can be complex and worrisome. Retirement accounts are a notable concern, as the chance of not having enough to retire on increases after a divorce. Understanding how finances are affected and, in certain categories, not affected is key when ending a marriage.
People who are in a household that has not had a divorce will have a net of financial wealth that is 30 percent greater than similar households that have had a divorce. This information comes from the Center for Retirement Research (CRR). There is a 5 percent greater chance of not having enough assets for retirement after a divorce. One group, however, seems immune to this: single women. This information can be important for those who are divorcing as it can be a signal on how to proceed to ensure their assets and portfolios are shored up after a divorce.
Divorced women are in a similar place as those who never got married in the first place. This is believed to be due to real estate holdings. Because women who divorce often get the house in which they lived during the marriage, they benefit from a rise in home equity. This contradicts many financial advisers who say that women who get the house in a divorce should sell it. Of course, each individual situation will dictate how best to proceed and in some cases, it is better to sell the property.
This information can be beneficial because it gives people who are divorcing an idea of how they should prepare for the future regardless of the category they fall into -- single women, men, older people, younger people and other factors -- and how best to save assets. The marital home is shown to be one of the biggest financial boons, so this information might spark a greater interest in retaining that marital property for all parties. With these circumstances and any other equitable distribution and property division issues, it is important for divorcing spouses to have the information they need to ensure a fair result is reached.