Divorce is such a personal decision, and oftentimes, it is based off emotions and feelings. However, what many people don't consider is the fact that divorce has long-ranging financial consequences for both parties involved.
Law Offices of Kelli J. Malcolm LLC offers divorce representation for those going through a divorce in the Denver area. Our team can handle every legal aspect of divorce, so you can concentrate on moving on. Below, we'll take a look at some of the financial consequences of divorce. Contact us for a free consultation today!
INCOME IMPLICATIONS
Most married couples are used to sharing the income they make in order to pay the bills, raise the kids, and have fun, such as going on vacation and enjoying their hobbies. When a divorce happens, your income will drop substantially. This often means a drastic change in lifestyle when you go from two incomes down to one.
ASSET IMPLICATIONS
Odds are, you've accumulated assets during your marriage. Now that you are getting a divorce, you will have to split those assets up. Colorado is an equitable distribution state, meaning that all property must be divided in a fair manner. This does not necessarily have to be equal if both parties agree. Colorado is also a dual-property state, meaning property can be defined as either marital or nonmarital. Speak to a top-rated Denver-area divorce attorney to learn more today.
CHILD SUPPORT IMPLICATIONS
Divorce can get really complicated (and downright ugly) when it comes to the kids. Most people now invest in joint custody. However, if the children primarily live with one parent, the other parent must pay child support in this situation. Child support can be considerable and can impact your new life substantially when it comes to finances. Let our divorce lawyers help today.
RETIREMENT IMPLICATIONS
Since Colorado is not an equitable divorce state, the retirement benefits may not be divided fairly, either. In general, the courts look at the amount that the retirement income and benefits have grown since being married. Furthermore, if you've been married for more than 10 years, you are entitled to receive your spouse's social security benefits even after a divorce. Both spouses must have reached the age of 62 and the other spouse must remain unmarried to receive the benefits. Let our divorce attorneys handle the nitty-gritty details for you. Call today.
DEBT IMPLICATIONS
Joint debt in a divorce is a sticky situation as well. If you both accumulated debt while married, both parties are still considered liable for it in a Colorado divorce. Any debt incurred by either party up until the divorce decree has been signed can be considered joint debt, too. That being said, the courts will still abide by equitable distribution of debt and consider whose debt is whose. Just be sure to remove your name for joint debt as soon as possible if you are no longer the responsible party after the divorce.
TAX IMPLICATIONS
You'll notice different tax implications when you begin filing separately than when you were filing jointly. The biggest tax implication moving forward from a divorce is child support and spousal support. Colorado recently changed the law to make alimony no longer tax deductible or considered income. Plus, only one spouse can claim the children on their taxes. This may not necessarily be the primary parent with custody.
As you can see, the financials from a divorce can be tricky, and while your divorce and family law attorney can help, a tax accountant is the final authority on the matter whom you should speak with.
PARTNER WITH LAW OFFICES OF KELLI J. MALCOLM LLC TODAY
Law Offices of Kelli J. Malcolm LLC is a Denver divorce and family law firm that has years of experience helping people navigate the complicated process and consequences of a divorce. From spousal and child support to division of assets, protective orders, and grandparents' rights, our team handles it all. We offer free 30-minute consultations, which gives you a chance to get to know us and ask us questions. We can explain the divorce process to you and get the process going. If you decide to choose us as your Denver divorce attorney, we promise to fight diligently for a favorable outcome for you and take the burden of the legal proceedings from your shoulders. Trust us to be in your corner. Contact us for a free consultation today!