Colorado Property Division | CO Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

In a divorce, the courts have to sort out all the property from the marriage. Legally speaking, the courts must turn 1 household into the 2 separate households of each former spouse. Among the many considerations that must be addressed, a universal one is property division, specifically Colorado property division.

No divorcing couple should disregard the guidance of a licensed Family Law attorney. Property division laws can be complicated, vary from state to state and lawyers have the proper training and experience to tell the judge what a divorcing spouse wants or needs from the property division.

Property Division Divorce Laws in Colorado

The purpose of Colorado property division laws is to make sure that marital property is allocated to each spouse equitably, but not necessarily equally. Colorado marital property is divided under Colorado Revised Statute §14-10-113 but the trial court judge receives great discretion when converting Colorado marital property into separate Colorado divorce property.

Colorado is an equitable distribution state. This means that with regard to Colorado divorce assets, anything the spouses had before marriage will usually not be included in Colorado divorce assets or Colorado divorce property. The only property that comes into the court's distribution is that legally classified as property of the marriage subject to Colorado Revised Statute §14-10-113.

However, the increased value of separate & non-marital property will be included in property division under Colorado Revised Statute §14-10-113(4).

What is considered Marital and Non-Marital Property?

Marital property consists of all property acquired by either spouse during the marriage and prior to a decree of legal separation is presumed to be marital property regardless of how title is held.

In addition, Colorado Revised Statute §14-10-113(4) provides that any asset a spouse acquired before the marriage or [under the first 2 exemptions under §14-10-113(2)(a) or (b)] is defined as marital property to where its present value exceeds its value at the time of the marriage or at the time of acquisition if acquired after the marriage.

Non-marital property is property that is exempt from the court's property division. The exemptions are:

Property acquired by gift, bequest, devise, or descent
Property acquired in exchange for property acquired before the marriage or in exchange for property acquired by gift, bequest, devise, or descent
Property a spouse obtained after a decree of legal separation
Property excluded by valid agreement of the parties

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The final step is the allocation of marital property.

Under Colorado Revised Statute §14-10-113(1), the court considers a number of factors in dividing assets and debt. Some of these are:

Each spouse's contribution to the acquisition of marital property
Value of the property set apart to each spouse
The spouses' economic circumstances
Increases or decreases in the value of each spouse's separate property during the marriage

Using these and case law, judges decide how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award a portion to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount may be split 50-50 or may be divided differently if the $1,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the duration of the marriage at the time the benefits accrued, looking at the present value of the plan and/or survivor benefits.
- Example 1: A spouse got benefits in a public employee retirement plan after working for 25 years and was married for 20 of those years. The court lacks proper jurisdiction to divide these proceeds under Colorado Statute §14-10-113(e) unless the ex-spouses have an agreement that permits division of this asset.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values at the date of trial. May be sold or given to a spouse outright.
- Example 1: A car owned by one spouse is not operational. The car may be sold with the proceeds to be given to a poorer spouse or divided among the spouses equitably.
- Example 2: A truck has a shared title. The truck may be sold with the proceeds going to each spouse equally or given to a poorer spouse.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under employer health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time period and/or award a cash payment to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy that doesn't have a cash surrender value. The policy is not “property” since there's no value in it that can be divided.

Settling Disputes in a Divorce Case with Property and Asset Division

Generally speaking, a property division is final and can not be changed unless the dissatisfied party can prove the trial court abused its vast discretion in the distribution of property.

You may also go back to court to enforce a property division award if the other spouse is being uncooperative.

Help From a Colorado Property Divorce Lawyer

Clearly, a Colorado property divorce lawyer is key to getting the fairest result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge.

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