Husbands and wives in Colorado who are contemplating or going through a dissolution of marriage | divorce case, and who have significant business, real estate, retirement and other assets and liabilities, absolutely need an experienced divorce attorney with a business focus, an attorney with significant backgrounds in business, accounting, tax, finance - investments, tracing, valuations, appraisals, investments and related issues, in addition to the law.
Over the years, the Law Offices of Paul M. Gaide has handled numerous dissolution cases with $1,000,000.00+ in dispute; each having had its own financial related nuances.
Under Colorado law, the Court is mandated to first determine each party’s “separate property,” and then divide the parties’ marital property in an “equitable” manner, which does not always mean “equal.” Once the property / debt division is made, the Court will then make a determination as to spousal maintenance or alimony. The Court has the power to adjust the equitable allocation of assets and liabilities to reduce a spousal maintenance award, either as to amount, and/or duration.
Ignorance of business issues can result in unreasonable expectations, roadblocks to negotiations, or one party receiving a less than appropriate allocation of property. A simple example:
Husband and Wife have the following assets / liabilities:
|Marital Residence||$ 950,000.00|
|Mortgage Debt||- $ 250,000.00|
|Net Marital Residence||$ 700,000.00|
|Cash / Checking / Savings||$ 100,000.00|
|Marketable Securities||$ 490,000.00|
|Husband’s SEP||$ 800,000.00|
|Wife’s 401(k)||$ 200,000.00|
|Husband’s Business||$ 600,000.00|
|Credit Card Debt||- $ 30,000.00|
|Net Marital Property||$2,860,000.00|