Couples who choose to end their marriages have major challenges ahead to address. In some cases, they may need to work out a parenting plan that allows them to share their parental rights and responsibilities.
Even couples without children generally have financial issues that they need to address as part of the divorce process. Asset division during divorce can be the result of an amicable settlement where spouses set their own terms. If they don’t agree on property division details, then they may take the matter to the family court.
A judge hearing a contested property division case can settle disagreements about how spouses should share their property and financial obligations. What rules govern property division in Colorado?
Marital property is subject to division
Some people struggle to identify their marital resources. They mistakenly believe that the names on financial accounts or vehicle title documents determine who owns them, for example.
Generally speaking, even assets held in the name of one spouse can theoretically be marital property during divorce proceedings. The income earned during marriage and any assets acquired with marital income are usually subject to division during divorce. Some assets may have protection as separate property.
Spouses generally do not need to divide resources designated as separate in marital agreements. They may also be able to protect assets that they owned before marriage, property that they received as gifts and inherited resources.
Property division should be fair
Some people assume that property division proceedings lead to an even or 50/50 split of marital property. However, Colorado uses an equitable distribution standard for property division. The focus is on what is fair given unique marital circumstances.
Judges dividing the marital estate may look at the length of the marriage, the income of each spouse, the unpaid contributions of each spouse, and even custody arrangements when deciding what is fair and appropriate. Litigated property division proceedings also generally require that spouses provide formal disclosure of their resources and financial obligations to one another in the courts.
People preparing for property division negotiations or anticipating litigation likely need to learn about the process to obtain the best possible outcome. Reviewing one’s marital estate with a skilled legal team can help people establish goals for the divorce process and lay the foundation for a stable life after divorce.