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How freezing assets can help you get your fair share of the fortune

October 19, 2022 | Asset Division, Firm News

At the moment you or your spouse files for divorce, trust between you could be in short supply. Especially when it comes to money and valuable assets like a family-owned business, investments and real estate.

Martial assets that you acquired during the marriage are supposed to be divided equitably, or fairly, between the two of you. But if your ex spends all the money in your bank accounts or sells off the stock at a discount, by the time your divorce is final, there might not be much marital property left to divvy up.

The ATI steps in

Giving away or selling valuable assets at a discount (often with the intention of getting them back after the divorce) is known as dissipating assets. Fortunately, in Colorado, a divorce filing triggers a court order called an Automatic Temporary Injunction (ATI). Among other things, the ATI prohibits either party to the divorce from dissipating assets. Specifically, it prevents the disposal, transfer or concealing of property without the other spouse’s consent. There is an exception for paying for the usual course of business and the necessities of life, like food and mortgage payments.

By putting a freeze on major transactions, the ATI helps preserve the wealth contained in the marital property. A divorce generally takes several months to complete. It would be unjust for you to be awarded your fair share of the family fortune only to find out that it’s been squandered or hidden away. Thanks to the ATI, this should not be an issue.

Any asset division concerns can be discussed with your divorce attorney. They can explain the process and your rights (and obligations) under the law.

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