Property division is a complex area of divorce law, and when it comes to this complex area, there are two schools of thought that dominate the discussion: community property and equitable distribution. Community property, which essentially gives each spouse a 50 percent stake in any marital assets, is not of any concern here in Colorado, because we don't abide by that set of laws.
There are many different matters it can be very important for a person to pay very close attention to when it comes to a divorce. One are financial matters. This is because a divorce can have some profound impacts on a person's financial situation.
Many divorce filings are the result of a couple's mutual discussions. However, under Colorado law, a spouse can file for divorce even over the other spouse's objections. The mere act of filing for divorce often satisfies the required showing of a marriage that is irretrievably broken.
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 their own agreement, a judge will make a ruling about property division. Because Colorado is an equitable distribution state, the marital property owned by both spouses won't necessarily be divided equally.
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.
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.
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.