When spouses divorce in Colorado, they have the option of settling with one another. They can present the courts with an agreement regarding their assets and debts as part of an uncontested divorce. If they cannot settle their financial matters independently, then they go to court. Family law judges have the authority to order the division of assets. They can also assign responsibility for financial obligations.
Sometimes, spouses may assert that some of their property is exempt from division in a divorce. They may be able to retain certain resources without worrying about the need to equitably divide them as part of the divorce process. What assets can people typically preserve as separate property in a Colorado divorce?
Assets protected by contracts
It has become much more common in recent years for spouses to sign prenuptial agreements before getting married. Others may sign postnuptial agreements during a marriage to address changes in their relationships or financial circumstances. Typically, any property designated as separate in a marital agreement has protection from division during divorce proceedings.
Resources earned prior to marriage
State law recognizes that the money earned before marriage and assets acquired with that money are the separate property of one spouse. So long as people keep the resources they earned before marriage separate from marital property, they can often retain those assets if they divorce. The law also protects assets acquired after a legal separation of the spouses.
Gifts and inheritances
Some resources that people receive during the marriage are their separate property. People who receive gifts from friends and family members typically have the right to preserve those gifts as separate property. Assets inherited directly by one spouse are also usually separate property that they do not need to divide when they divorce.
Some assets that could be separate property might be vulnerable during divorce proceedings if commingling occurs. In scenarios where spouses deposit separate funds into a joint account or otherwise combine marital property with separate property, there may be reason for the other spouse to allege that commingling has made those assets marital property.
Identifying which assets spouses can retain separately can be an important part of preparing for divorce proceedings. People who understand the rules that govern the divorce process can help ensure that they receive the best possible property division outcome given their circumstances.