Let's continue our discussion of complex asset division and related issues at the end of a marriage with a look at some other considerations for wealthy Boulder County residents. For example, how could a divorce affect each partner's taxes? We present the information as general in nature only, not as legal advice.
Last week, our blog took a look at the case of a multimillionaire couple involved in contentious, ongoing litigation over the end of their marriage. However, we want to remind our Boulder County readers that these issues can affect anyone, not just celebrities and business tycoons. Any high asset divorce or a normal divorce can quickly become a legal quagmire.
The end of any Colorado marriage is a difficult time. As much as both partners may want to move on and start their new lives, sometimes, challenges in the divorce take time to work through. This is particularly true when the issues are contentious and require complex litigation. And, the scenario is compounded for couples in a high-asset divorce.
Important financial considerations can sometimes overlooked during a stressful divorce. Divorce can be a difficult process, so it isn't surprising that both parties may just want it to be over with as soon as possible. While many people going through this emotional process focus on the present, it can be easy to lose sight of the future, and this is especially true with retirement plans. Retirement, after all, may be a long way away for some, and when it comes to the division of marital property and asset valuation, it is often the family home that gets the attention.
Most people work their entire lives to build up their wealth, save for the future and then enjoy their retirement years without having to worry about where their money will come from. When they plan for the future some Colorado residents are able to build significant nest eggs that can not only allow them to maintain their standards of living but also enjoy the freedom that comes with retirement without employment. A well-planned retirement strategy can withstand many financial storms but one legal issue can hit a person's accumulated wealth like a Category 5 hurricane: divorce.
There is no formula that a person can use to determine if their marriage will withstand the test of time. Couples from all social and economic backgrounds file for divorce in Colorado each and every year and each couple brings with it to court the unique challenges that pushed their marriages to their ends.
Though divorces are rarely considered easy, some divorces proceed with fewer complications than others. A divorce between individuals who have not had children and who have not comingled their assets may be completed with fewer negotiations and disagreements than one where custody, support, and property division battles are likely to occur between the divorcing parties. The presence of money and significant assets does not necessarily mean that a divorce will be hard, but often, Colorado residents who enjoy lucrative lifestyles may find that there are challenges in identifying and dividing their property.
Often, individuals may consider if and how they should pass along gifts of money or property to those loved ones who will outlive them. When a Colorado resident receives money or property during the probate process, it is considered an inheritance. Although particular facts and circumstances may shift an inheritance from the sole property of an individual to the marital property of a couple, inheritances generally are considered separate property when it comes to dividing property during a divorce.
Keeping a marriage together can take a lot of work and while only the partners to each ending marriage know exactly why their union must dissolve, it is important to remember that a divorce can strike relationships between individuals of all socioeconomic levels. In fact, while money can be a factor that causes stress and concern, some Colorado marriages may be a factor that brings down other committed marital unions.
As previously discussed on this divorce and family law blog, Colorado recognizes the common law and equitably divides property between divorcing parties. While a party generally will keep the separate property that they acquire before and during their marriage, they will see their marital property divided in a manner that the courts deem fair and equitable.