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Avoid heavy spending in advance of military divorce

Planning to divorce involves a great deal of time and effort. It also requires an investment of money. That said, Colorado spouses must take care to limit their spending in advance of a military divorce. Failure to do so can give the impression that an individual is intentionally trying to deplete marital assets prior to divorce, which is a situation that the courts do not look upon favorably.

In the months leading up to a divorce, it is important to avoid making large purchases, especially without the knowledge of one's spouse. This is also true in regard to making loans to friends or family, which can easily be misconstrued as trying to "withdraw" funds from the marital bank prior to a divorce. Even opening new lines of credit can be portrayed as a negative move.

An exception lies with couples who agree that the divorce is necessary, and where one or both parties needs to find alternative housing as the divorce process moves forward. Even in these cases, however, it may be a good idea to have a written budget drawn up in which both parties agree on how much to spend setting up separate households. The budget should also clearly define which party will be responsible for what portion of those costs.

In many cases, what begins as a collaborative effort turns into a complex and bitter military divorce. Having clear documentation of all spending can make it easier to defend a charge of depleting marital wealth. It is also a great step in the direction of budgeting, which is a skill that every Colorado resident should sharpen when faced with a divorce.

Source: U.S. News & World Report, "10 Ways to Prevent a Divorce From Ruining Your Finances", Maryalene LaPonsie, Sept. 29, 2016

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