Going through a divorce involves many complex decisions, and understanding how property division works in Colorado can help you prepare for what lies ahead. The state follows a principle called equitable distribution, which guides how courts divide marital assets and debts.
Equity versus equality
Equitable distribution does not mean equal distribution. Some people assume everything will be split evenly. However, Colorado courts aim for what they consider fair, not strictly equal.
The court examines various factors to determine a fair division based on your situation. This approach recognizes that each marriage is unique. A single formula might not work for every case.
Factors courts consider
When determining equitable distribution, Colorado judges look at several parts of your marriage and finances. These may include:
- How long you were married
- Your financial situation and your spouse’s
- How much each of you helped build marital assets
- The value of property given to each of you
Similarly, if you stayed home to raise children while your spouse built a career, the court may consider these contributions when dividing property. The court may also modify the distribution if you or your spouse depletes or wastes marital assets to the detriment of the other. This may include gambling away savings or making large purchases to reduce available assets.
What counts as marital property
Generally, marital property includes assets and debts acquired during the marriage and before a decree of legal separation is issued. However, property you own before marriage and inheritance belonging to one spouse usually remain separate.
If your separate property grows in value during marriage, it may become marital property. This depends on the situation. If marital funds or effort helped increase the value, that growth may be divided. Even natural growth, such as market gains on a separate stock account, is usually marital property.
The distinction between marital and separate property can become complicated, especially when your assets commingle. This occurs when the two property types mix, which means what is separate may become marital. Keeping clear records of separate property from the start could help you protect these assets.
Protecting your share in a divorce
Learning how Colorado courts approach property division may help you secure a fair share of property after the divorce. By staying informed and making smart decisions, you can prepare for the future and maintain a good standard of living even after separation.