Colorado law compels divorcing spouses to divide their marital assets in a way that’s fair and equitable rather than exactly 50/50.
This departs from the community property laws of some states which require a 50/50 division, and allows more room for negotiations. For instance, one spouse may gain a greater percentage of marital assets if they have lower earning potential.
One spouse may wish to retain the marital home and may “trade” a portion of their share of the marital property or their separate property for the home if the other spouse agrees, even if the result isn’t a 50/50 division.
To understand marital property division during a divorce in Colorado, it’s important to understand what the courts consider separate property vs. marital property and the implications of commingled property during divorce.
Divorcing spouses in Colorado may keep their separate property during the asset division process. Separate property that isn’t subject to division includes:
When one spouse asserts that an asset is their separate property during the divorce, they have the burden of proving that it is their separate property and not subject to division.
Marital property in a Colorado divorce includes all assets accumulated by either spouse or both spouses together during the marriage, regardless of which spouse makes the addition to the marital pool. Marital property in Colorado divorces includes the following:
Although clothing and personal items are also considered marital property, in most cases, spouses retain their own clothing with the exception of designer goods of significant value.
Distinguishing separate assets from marital assets can become complex, particularly when spouses have disputes over their property division. One of the most challenging aspects of property division laws applies to commingled assets.
When spouses live together for years, they commonly commingle assets that would otherwise be separate. This occurs when one spouse grants the other spouse access to a bank or investment account, or when one spouse uses their time, money, or talent to improve a property or asset belonging to the other spouse.
When spouses commingle one spouse’s separate asset, the other spouse is entitled to a portion of that asset, typically half of the asset’s improved value.
Before spouses begin the asset-division process, each spouse must submit a full financial disclosure and provide financial documents. Assets and properties must undergo the valuation process so each spouse and their attorneys have an accurate picture of the value of every asset before they begin the fair and equitable division of those marital assets. Each spouse’s Denver family law attorney may ask for additional documentation from the other spouse at any time and the other spouse or their attorney must produce it.
In the best-case scenario of divorce, spouses spend time negotiating the division of their marital assets with their attorneys present as they try to achieve a settlement agreement of the division of their assets in a way that’s fair and equitable.
In most cases, they also undergo one or more mediation sessions with a professional who guides them through the process and offers creative solutions for resolving disputes. The mediator also helps with other divorce-related disputes like child custody and spousal support.
If the spouses are unable to reach a fair and equitable settlement agreement even with the help of their attorneys and mediation, the divorce becomes a contested divorce, requiring a divorce trial. At the trial, both sides present their arguments and a Colorado judge makes the decisions on their asset division.
When divorcing spouses cannot resolve disputes over the division of their marital assets, a judge reviews the financial disclosures and hears testimony and evidence on both sides. Before making a binding decision, a Colorado family judge considers the following:
A judge may divide marital assets close to 50/50 but isn’t compelled to do so. One spouse may gain a greater percentage of the marital assets than the other if they earn less or have fewer separate assets, leaving them at a disadvantage or less self-sufficient. Depending on the results of the asset division, if one spouse remains at a significant financial disadvantage to the other, the judge may also grant the disadvantaged spouse spousal maintenance payments from the other spouse for a limited time until the disadvantaged spouse gains self-sufficiency.
Under Colorado Revised Statute § 14-10-113., the law states the following:
“ …In a proceeding for disposition of property following the previous dissolution of marriage by a court … shall set apart to each spouse his or her property and shall divide the marital property, without regard to marital misconduct, in such proportions as the court deems just after considering all relevant factors…”
Colorado is a no-fault divorce state where spouses may only divorce on the grounds that the marriage is “irretrievably broken.” One or both spouses’ conduct during the marriage isn’t relevant to the division of their marital property.
No one should undergo the marital property division process in Colorado without experienced legal representation. A Denver divorce lawyer protects their client’s rights and argues for their best interests throughout the process of asset division as well as guiding their client through the other aspects of a Colorado divorce, including child custody, child support, and spousal maintenance.
Call Ciancio Ciancio Brown, P.C. to safeguard your rights and make a compelling argument for your desired outcome throughout negotiations with a spouse or in court before a judge.
