When couples decide to divorce, they must divide their property. Colorado law uses an equitable distribution approach, which does not necessarily mean equal.
Courts strive to divide property fairly based on each spouse’s circumstances.
In a divorce, property includes assets and debts accumulated during the marriage. This includes homes, vehicles, investments and all debts. It is necessary to determine what is marital property and what belongs to individuals as separate property. Separate property typically includes assets owned before marriage, inheritances and gifts received by one spouse alone.
Colorado courts consider several factors when dividing property. These include each spouse’s economic circumstances, the value each spouse contributed to the marital property and any increases or decreases in value of the separate property during the time of the marriage. Courts also look at the value of the property set aside for each spouse and any depletion of marital assets through misuse.
There are some unique scenarios in property division. For instance, determining how to divide business growth can be complex if one spouse owned a business before the marriage, but it grew significantly during the marriage. Additionally, the division of retirement benefits often requires careful legal and financial consideration to ensure compliance with laws and to protect both parties’ interests.
Given the complexities involved, individuals often need legal and financial advice to navigate the process of property division in a divorce. This helps ensure that the division is fair and complies with Colorado law, which aims to reach a resolution that respects the rights and needs of both individuals moving forward.
Understanding the nuances of property division can help individuals better prepare for the discussions and decisions that lie ahead in a divorce proceeding.