It’s no secret that divorce is a complex process, especially when it comes to dividing property. In Colorado, property division follows the principle of "equitable distribution," which means that property is divided fairly, but not necessarily equally. This approach takes into account various factors to determine what is fair for both parties involved.
Here, we’ll go over how property is divided in a divorce in Colorado, including the distinctions between marital and separate property and the factors considered by the courts to ensure a fair division.
Understanding Marital and Separate Property
In Colorado, property acquired during the marriage is generally considered marital property and is subject to division. This includes assets like homes, cars, bank accounts, and retirement savings. On the other hand, separate property refers to assets that one spouse owned before the marriage or acquired through inheritance or gifts. Separate property is not typically divided in a divorce unless it has been connected with marital property.
For example, if one spouse had a bank account before marriage and the other spouse made deposits into that account during the marriage, the account may be considered commingled and thus subject to division. Similarly, any income generated from separate property, like rental income from a property owned before marriage, may be treated as marital property.
Factors Considered in Property Division
When dividing property, Colorado courts consider several factors to ensure an equitable distribution. These factors include:
- The length of the marriage: Longer marriages might result in a more equal division of property due to the greater intermingling of finances and assets over time.
- The financial situation of each spouse: This includes current income, earning potential, and economic circumstances. If one spouse has significantly less earning capacity, they might receive more marital property.
- Contributions to the marriage: Both financial contributions and contributions as a homemaker are considered.
- The value of each spouse’s separate property: This helps in assessing the overall economic situation of each spouse.
- The health and age of each spouse: These factors can impact future earning potential and financial needs.
Process of Dividing Property
The process begins with identifying which assets and debts are marital property. Each item is then assigned a monetary value, which might require professional appraisals for significant assets like real estate or businesses. After valuing the property, the division process can start. Spouses can negotiate and agree on how to divide their assets and debts, possibly with the help of mediation. If they cannot agree, the case may go to trial, where a judge will decide based on the factors mentioned above.
Special Considerations
Some assets require special handling during a divorce. For example, retirement accounts need a Qualified Domestic Relations Order (QDRO) to be divided without incurring taxes or penalties. Business interests can also be complicated, as the court will look at the value of the business, each spouse’s contribution, and any appreciation during the marriage.
Need Help Navigating Property Division? Contact FCDP
Dividing property in a divorce can be challenging and emotionally taxing. Understanding the nuances of Colorado’s equitable distribution laws and preparing adequately can make the process smoother. If you need expert guidance, the professionals at Foothills Collaborative Divorce Professionals are here to help. We offer comprehensive support, from legal to financial advice, ensuring your rights and interests are protected. Contact us today to learn more about how we can assist you through your divorce.
