Property Division in a Colorado Divorce Case
A divorce case can stall or turn contentious for many reasons. From my extensive family law experience in Colorado, these disputes can easily escalate when it comes to property division.
Essentially, the property division of your divorce is where all of the assets and debts of the marriage are divided between you and your spouse. Whatever you walk away with will provide the financial foundation of your post-divorce life, so it is important you have a fair and reasonable division in your case. To help ensure this, it is wise to learn a little more about how property division works in Colorado.
"Equitable Division" in Colorado Property Settlements
Many of my clients start with a misconception that all the assets of the marriage will be split evenly in every case, and I understand this misconception completely. After all, splitting things evenly is the typical definition of “fair” in many situations--divorce in Colorado, however, is not one of them. In Colorado, the standard for distribution is "equitable division," which does not mean property will always be divided exactly equally in a divorce.
Under equitable distribution, marital property is supposed to be divided in a way that is fair to both parties. Since only marital property - and not separate property - can be divided in a divorce, the court considers how much each spouse would walk away with when the distribution is done to determine what is fair in the situation.
Marital Versus Separate Property
Marital property is defined as assets and debts acquired during the marriage that belong to both spouses. In contrast, separate property refers to assets and debts that only belong to one spouse. A student loan debt, for example, might be separate property and only belong to the spouse who took the loan out. An inherited item usually only belongs to the spouse who received it from the estate.
Keep in mind that something that starts as separate property can sometimes become marital property. If, for example, one spouse owned a home in his or her name only before the marriage, but after the wedding, the other spouse paid the mortgage from their funds, that house could be considered part of the marital estate. More commonly, the spouse who owns the house will retitle it jointly after the marriage, and this clearly would make the property joint.
The Property Division Process in Colorado
You must have a detailed list of all debts and assets you and your spouse have to start. All assets must have their value determined; you cannot divide items without knowing their value first. You may need to have some items, such as your home or an antique, appraised by a professional to determine the value for property distribution purposes. Your attorney can help you find professionals who are able to value your assets.
Next, you will have the opportunity to work out the property and debt division details with your spouse. You do not have to do this alone; you and your spouse can each retain an attorney to help you with this process. Your attorney will also be able to provide you with options for handling the negotiations, so you have the best chance of reaching an agreement with your spouse.
In the best-case scenario, you and your spouse would be able to come to agreement terms on your own without court input. In my experience, couples usually are more satisfied by the agreements they reach between themselves than what a court would decide for them. If you cannot come to a final arrangement with your spouse, however, the court will make these significant financial decisions for you instead.
Determining a fair division of debt and property in your Colorado divorce case is often not as straightforward or as easy as it sounds. There are many factors at play, especially if you have several assets, complex assets, or retirement accounts, or if your spouse has been hiding debts or assets from you. It is usually wise to work with an attorney to help make sure you get your fair share of the marital estate. Since you want to start on the best financial foot possible, you want a lawyer in your corner to help guide you through the process.