Dividing property is a significant aspect of divorce. It is important to grasp the rules governing this process in Colorado. Below is a brief overview of property division and how to prepare for it.
Marital vs separate property
Colorado follows equitable distribution, meaning marital property divides fairly based on factors like parental responsibilities or financial situations, rather than splitting assets equally. Courts consider both monetary and non-monetary contributions to decide asset allocation. Assets classify as follows:
- Marital property: Earnings, savings, and assets accumulated from the marriage start to the date of the decree of dissolution.
- Appreciation of separate property: The increase in value of any separate asset (like a home or retirement account) that occurred during the marriage is also considered marital property subject to division.
- Separate property: Gifts, inheritances, exchanges for property acquired before marriage, or property obtained after a legal separation order, unless mixed with marital assets.
It is important to note that retirement benefits split because the value accumulated during the marriage legally defines as marital property. A formal written order, such as a Qualified Domestic Relations Order (QDRO), is a typical requirement to legally effectuate the division of these benefits.
Preparing for property division
Organization is crucial in this process.
- List everything: Real estate, vehicles, retirement plans, business interests, debts, to other assets that may seem trivial, like collectibles.
- Gather records: Pull statements, appraisals and all relevant documentation. These papers prove the value of each item and whether it is part of a separate share. This is necessary to determine precise value calculations, especially for identifying the value of separate property on the date of marriage versus the date of the decree.
If you need legal advice…
Thorough property division can save time and prevent significant conflicts. Consider consulting a Colorado family law attorney for a tailored asset division plan.