Couples once commonly considered prenuptial agreements as an indicator of mistrust, but far more spouses today understand that a prenuptial agreement is an important means of protecting themselves and their loved ones if the worst should happen, including death as well as a future divorce. A recent Harris Poll reveals as many as 15% of married or engaged spouses have a prenuptial agreement, compared to only 3% in 2010.
While many prenuptial agreements include terms for each spouse’s financial responsibilities during the marriage, the main focus of most prenups is the division of property in the event of a divorce. Call our law firm to speak to one of our experienced prenuptial agreement lawyers in a free consultation today.
Colorado is one of many states with laws compelling divorcing spouses to divide their marital property in a way that’s “fair and equitable” if not precisely 50/50 during the divorce process. Before considering the implications of this law, it’s important to understand what the state considers separate and marital assets.
Separate assets in Colorado are not subject to division but remain the sole property of one spouse. Examples include:
Marital property that’s subject to division during a divorce includes the following:
While this seems straightforward, defining separate and marital property without a prenuptial agreement in place is rarely clear-cut due to marital commingling. Comingling occurs when spouses live together and share their finances. For example, one spouse may have a right to a portion of the other spouse’s separate asset if its value increased during the marriage or if they invested their time, talent, or money into a spouse’s property.
When spouses have a well-executed prenuptial agreement in place, it provides a structure for the division of their property should the marriage end in divorce. A prenup keeps the spouses’ separate properties separate, despite the spouses filing joint taxes. It also defines assets that the spouses consider a part of the marital pool and subject to division should they divorce.
When spouses have a valid, enforceable prenuptial or postnuptial agreement, they must adhere to the decisions they made when they signed the agreement, despite any adverse feelings they may have developed during the breakup.
Since spouses draft these contracts when they are at their loving best, prenuptial agreements are typically generous and protective. They not only simplify the division of assets, but this also commonly leads to an uncontested divorce, saving each spouse time, legal fees, and adversarial feelings during the divorce process.
If you are weighing the possible advantages of a prenuptial agreement before your marriage, it’s helpful to speak to an attorney who is experienced in this area of Colorado family law. Call Ciancio Ciancio Brown, P.C. for a consultation to learn more about how these contracts can benefit you and your loved one by relieving some of the typical financial stressors that cause strife in many marital relationships.
