In a Colorado divorce, marital property will be equitably divided between the two spouses. An equitable division is not necessarily equal. Rather, equitable division means that the division of property will be fair.
Property Division starts with the Colorado Uniform Dissolution of Marriage Act
When spouses divorce in Colorado, an agreement must be made about how property should be divided between the two parties. If spouses are unable to come to an agreement, a judge will make a ruling about property division.
A primary concern in all types of divorce is the classification of property and its division. This process can be more complex in high-asset divorces as well as marriages that began later in life, but asset division is a common factor in most divorce agreements. Jefferson County courts are required to craft an equitable division of assets, excluding non-marital property, when divorcing parties cannot reach an acceptable agreement.
When a couple in Colorado divorces, they should understand how the state handles the distribution of property. Two parties may arrive at an agreement on their own and then make it official through a Marital Settlement Agreement that is approved by the courts. The other option is to have the courts order and decree the division through a Decree of Dissolution of Marriage.
Colorado spouses who receive inheritances or large monetary gifts before or during their marriage should know that they can take steps to protect those assets if they ever get divorced. In general, gifts or inheritances that are given to one spouse individually are protected from division during divorce. However, there are exceptions.
Colorado couples who are in the midst of a divorce may face hardships regarding the settlement process. Especially in high-asset divorces, couples can overlook some important financial aspects. Understanding these aspects may help avoid complications during divorce proceedings.
Some Colorado couples may mistakenly believe that when they end their marriage, they are also ending their joint financial commitments. Any debt or assets that were in a person's name when they were married are still seen as belonging to both parties after a divorce. This can cause significant problems with a person's credit score and debt-to-income ratio, especially where a house is concerned if a couple does not sell it.
For divorcing couples in Colorado, deciding how to handle proceedings may prove to be difficult. Divorce rates involving couples over the age of 50 is on the rise, according to some reports, and older couples might need to focus on different aspects of divorce when planning for financial stability after the proceedings are over. Many people consider their homes to be an important asset to consider when involved in negotiations, but Social Security benefits and retirement accounts might also be effective assets when considering the future.
Individuals in Colorado who are contemplating divorce may be interested in the story of a couple seeking an amicable separation. In a recent article, a financial advisor discussed certain elements of property division that the couple should keep in mind during proceedings. Topics included difficult-to-divide assets and tax considerations.
When Denver couples go through divorces, the equitable division of marital property is often a significant issue in the proceedings. Further compounding the difficulties of asset allotment is the fact that, in some cases, parties are unwilling to make their support payments to ex-spouses. For those who believe they may face this problem if they pursue a divorce, it may be wise to proactively protect against such a situation.