by questful | Dec 3, 2020 | Financial
Contemplating divorce can be one of the biggest life-time decisions you will ever make. Deciding how you get through the process can have a tremendous impact on how life after divorce will affect you emotionally and financially. The financial neutral is a key member of the collaborative team with the primary role of exploring and educating you and your spouse on various financial settlement outcomes by understanding the impact divorce will have to your financial future.
Divorce almost always doubles living expenses as two separate households are created, yet income rarely changes at least in the short run. The financial statistics post decree are alarming especially with the lower income earner or the stay-at-home parent who will have to re-enter the workforce. Working with the financial neutral, each spouse will create forward looking expense budgets that will help in identifying the needed income to meet essential living expenses. This information will then support a more comprehensive discussion on the level of spousal maintenance and employment income requirements to generate positive cash flow. The financial neutral will also be able to project your future retirement savings and net worth based on various financial settlement options which should facilitate constructive discussion around how marital property might be divided.
Working with a skilled and experienced financial neutral in the collaborative divorce team is a highly communicative, goals-based, and dignified resolution approach that tends to facilitate higher quality financial outcomes essential to healthier ex-spouse relationships with less negative impact to children.
by questful | Nov 6, 2020 | Legal
Colorado is one of a few states that continues to recognize common law marriage. It is often misunderstood that a common law marriage can be established after a couple has cohabitated for certain period of time or simply by filing joint tax returns. The Colorado Supreme Court recently reconsidered the issue of common law marriage, stating that “the core inquiry is whether the parties intended to enter a marital relationship—that is, to share a life together as spouses in a committed, intimate relationship of mutual support and obligation.”[1]
If a common law marriage is disputed, the matter may proceed to a court hearing. The party wishing to prove a marriage will need to present evidence to prove “mutual consent or agreement of the couple to enter the legal and social institution of marriage, followed by conduct manifesting that mutual agreement.”[2]
Absent an express agreement to be married, the court will consider the couple’s conduct to determine whether the couple mutually agreed to be married. The two factors most often cited in establishing an intent to be married are cohabitation and a general reputation in the community that the couple was married.[3] Evidence of the parties’ intentions with respect to common law marriage may also be proven with joint tax returns, joint ownership of property, joint bank accounts, designation of the other party as a spouse on health insurance, medical or employment forms, designating the other party as a beneficiary on retirement and investment accounts, sharing of a family name or surname, evidence of a marriage “ceremony” or the exchange of rings.
Since every relationship is different, a court is required to consider the couple’s conduct “in context” and consider the totality of the circumstances.[4] If you have questions about common law marriage contact an experienced attorney.
[1] In re Marriage of Hogsett & Neale, 2021 CO 1, 3.
[2] In re Marriage of Hogsett & Neale, 2021 CO 1, 3.
[3] Whitenhill v. Kaiser Permanente, 940 P.2d 1129, 1132 (Colo. App. 1997); Smith v. People, 64 Colo. 290, 170 P. 959, 960 (1918); Taylor v. Taylor, 10 Colo. App. 303, 50 P. 1049 (1897); People v. Lucero, 747 P.2d 660 (Colo. 1987); Thimgan v. Mathews, 74 Colo. 93, 219 P. 211 (1923).
[4] In re Marriage of Hogsett & Neale, 2021 CO 1.
Nicole Hanson
Hanson Law Firm, LLC
44 Cook St., Ste. 100 | Denver, CO 80206
Ph: 303.459.2393
www.nhansonlaw.com
by questful | Sep 5, 2020 | Financial, Uncategorized
You’ve been awarded the marital home through the negotiation process. What’s next? You’ll want to speak with a mortgage professional who specializes in divorce.
Qualifying to Refinance
You will need to qualify for the new loan using only your income and assets. You’ll need to provide paystubs, W2s, bank statements and your divorce documentation. In Colorado this would include your Separation Agreement (Memorandum of Understand) or notes from the Court. If you have children, you will also need to provide your Parenting Plan.
In the state of Colorado, a Divorce Decree is not necessary if it has not been issued yet.
Your credit will need to be in good shape as well. Best to keep debt to a minimum during the refinance process.
If you need to utilize support payments (alimony, child support) there will be a waiting period of 3 to 6 months. This is to ensure that the ex-spouse who is mandated to pay the support payments is actually doing so.
Removing a Name from the Mortgage
If your ex-spouse is on Title for the home, the Title Company involved with the refinance will create a Quit Claim Deed for your ex-spouse to sign with a notary. This will remove your ex-spouse from ownership of the home.
Taking Equity Out to Give to the Ex-Spouse
If the Courts award the ex-spouse equity from the home as part of the settlement the equity can be pulled from the home through the divorce as long as you qualify with the increased mortgage.
Summary
When it comes to refinancing your home, you would be wise to consider retaining the services of a lending professional who understands the nuances of the divorce process and ensure this professional is involved upfront and before the Divorce Agreement is finalized.
Jan Parsons Smith
Production Manager, NMLS #442729
jparsons@primelending.com
720-308-1320
by questful | Jul 28, 2020 | Collaborative Law, Uncategorized
Contemplating divorce can be one of the biggest life-time decisions you will ever make. Deciding how you get through the process can have a tremendous impact on how life after divorce will affect you emotionally and financially.
The common approach in our culture tends to lean on legal representation for not just legal guidance but financial, family, and emotional support that can be very taxing for a family law attorney to single handedly manage and resolve. An alternative approach is to build your resolution process team that is comprised of professionals that specialize in each of the key areas of divorce with a focus on meeting the current and future needs that you and your spouse have.
This approach is called collaborative divorce. The goal is to work collectively in a team-based environment comprised of two family law attorneys (each representing one spouse), a financial expert, and a facilitator with a mental health/mediation background. The goal is to reach a mutually acceptable resolution plan designed to meet as many needs and goals each spouse brings to the team to solve. This highly communicative, goals based, and dignified divorce process tends to facilitate higher quality outcomes that can lead to healthier ex-spouse relationships with less negative impact to children.
Patrick Janssen
Wealth Advisor, Certified Divorce Financial Analyst
office: 720.805.0051
mobile: 720.314.9774
5251 DTC Parkway, Suite 1045
Greenwood Village, CO 80111
www.aspirewmg.com
patrick@aspirewmg.com
by questful | Jul 28, 2020 | Financial, Uncategorized
Determining the value of your home for a fair assessment can sometimes be difficult. Often the disposition of the marital home can become cantankerous as well.
There are ways to obtain a fair and partial appraised value when going through divorce.
An appraiser can be hired by both parties (on average an appraisal in Denver Metro will cost between $550 and $650). Often two appraisals will be needed in order to satisfy both parties. Typically, home values are based on the last 6 months of sales in your neighborhood and the condition of your home.
A qualified Real Estate Professional can create an “Opinion of Value” in lieu of an appraisal. This may save you a few hundred dollars and may/may not be as accurate as an appraisal that has been completed by a qualified appraiser.
You may be sharing in gained equity of the marital home. If so, the value of the home is very important.
If you both cannot agree upon a value for the home, a Judge may be called upon to determine the value. This may/may not be wise so it might be best to reach an agreement prior to sitting in front of a judge.
If one of you will be awarded the marital home, often a refinance will be required to take the other spouse off the mortgage. If a value has been agreed upon and written into the agreement don’t always assume the value that the mortgage company’s appraiser will match exactly to the appraisal you had completed through the divorce. Because appraisals can be subjective, the values can vary between the “divorce appraisal” and the “refinance appraisal”.
Whether you choose to sell or refinance your home, an appraisal is a very important factor in determining the home’s value.
Jan Parsons Smith
Production Manager, NMLS #442729
jparsons@primelending.com
720-308-1320
