By: Sarah McCain
In December 2017, an article was posted on the firm blog reviewing some important tips to keep in mind prior to becoming involved in a custody matter. That posting reviewed only a few examples of what can take place in those types of domestic relations cases. Though that posting only related to child custody issues, it could be relevant as relates to a divorce with children. Of course, there are more preparatory issues to think about in a divorce. When you’re looking at a dissolution of your marriage, there are additional items to make sure you have in line before you file or when a divorce is initiated by the other party.
First, if you are thinking of filing for divorce, it is not the time to make extravagant purchases for yourself. It is also not the time to begin transferring funds from any type of financial account. This falls under a term called “dissipation of martial assets.” The court will look at these expenditures or transfers to determine whether that financial exchange was done in an effort to keep the funds from the other person or done in anticipation of filing for divorce. For example, if you transfer $50,000 from a savings account just prior to filing for divorce, with the intention of keeping that money from your spouse, it is likely that the court will order you to reimburse the other party their share of the funds. Depending on the circumstances, it is even possible that the court could order that more than 50% be reimbursed to the other party, thereby giving them a greater share. Essentially, the idea of trying to hide money from your spouse could completely backfire and result in your receiving less than an equal share of the marital estate. Additionally, once you have filed for divorce, or have been served, hiding assets would be a violation of the C.R.S. 14-10-107 (4)(b)(I) divorce injunction. Continue reading