When going through a divorce in Denver, understanding how property is divided is essential. Colorado follows the principle of equitable distribution in divorce cases, meaning that marital property is divided fairly, though not equally. The distinction between marital property and separate property plays a significant role in determining what assets each spouse is entitled to after the divorce.
At Baker Law Group, PLLC, our Denver divorce lawyers help clients protect their rights and ensure a fair division of assets during a divorce. In this article, we’ll explain what constitutes marital property in Denver divorce cases and how it is typically divided under Colorado law.
1. Definition of Marital Property in Colorado
In Colorado, marital property refers to assets and debts acquired by either spouse during the course of the marriage. This includes both tangible and intangible assets, such as real estate, vehicles, retirement accounts, and investments. Marital property is subject to equitable distribution in the event of a divorce.
Separate property, on the other hand, is generally not divided in a divorce. Separate property includes assets that were owned by one spouse before the marriage or were acquired through inheritance or gifts specifically to one spouse during the marriage.
Colorado Statute on Marital Property:
According to C.R.S. § 14-10-113, marital property includes all property acquired by either spouse during the marriage, except:
- Property acquired by gift or inheritance
- Property acquired in exchange for property owned before the marriage
- Property excluded by a valid prenuptial or postnuptial agreement
2. Examples of Marital Property
Understanding what assets qualify as marital property can help you better prepare for the division of assets in a Denver divorce. Here are some common examples of marital property:
- Real Estate: Any home or real estate property purchased during the marriage is considered marital property, even if the title is in only one spouse’s name.
- Retirement Accounts: 401(k) plans, pensions, and other retirement savings accrued during the marriage are typically considered marital property.
- Vehicles: Cars, trucks, boats, and other vehicles purchased during the marriage are usually included in marital property.
- Bank Accounts and Investments: Money saved in joint or individual accounts during the marriage, as well as stocks, bonds, and other investments, is typically treated as marital property.
- Business Interests: If a business was started or significantly grew during the marriage, the increase in its value may be subject to division.
- Debts: Just as assets are divided, debts incurred during the marriage, such as credit card debt, mortgages, or loans, are also considered marital liabilities.
3. How Separate Property is Treated in Colorado
Separate property is not subject to division during a divorce unless it was commingled with marital assets. Commingling occurs when separate property is combined with marital property in such a way that it becomes difficult to distinguish the two. For example, if one spouse owned a home before the marriage but used marital funds to pay the mortgage or make improvements, the home may become partially marital property.
Common Types of Separate Property:
- Property Owned Before the Marriage: Assets that one spouse owned before the marriage generally remain separate property unless they were commingled.
- Inheritance or Gifts: Any assets one spouse received as an inheritance or gift during the marriage are typically considered separate property unless they were combined with marital assets.
- Prenuptial or Postnuptial Agreements: A valid prenuptial or postnuptial agreement can designate certain assets as separate property, even if they were acquired during the marriage.
To protect your separate property during a divorce, it is essential to keep clear records and avoid commingling assets.
4. Equitable Distribution in Colorado Divorce Cases
In Colorado, the court divides marital property based on the principle of equitable distribution. This means the division is fair, but not necessarily equal. The court will consider several factors when deciding how to divide marital property, including:
- The Duration of the Marriage: The length of the marriage can impact how the court divides property. For example, in longer marriages, the court may lean toward a more equal distribution of assets.
- Each Spouse’s Economic Situation: The court may consider each spouse’s income, earning potential, and financial needs when dividing property.
- Contributions to the Marriage: The court recognizes both financial and non-financial contributions to the marriage, such as one spouse staying home to raise children while the other worked.
- The Value of Separate Property: If one spouse has significant separate property, the court may award more marital property to the other spouse to achieve a fair outcome.
- Dissipation of Assets: If one spouse wasted or dissipated marital assets during the marriage (for example, through gambling or extravagant spending), the court may account for this in the division of property.
It’s important to note that marital misconduct, such as infidelity, does not generally impact how property is divided in Colorado.
5. Protecting Your Assets During a Divorce
If you’re going through a divorce, it’s essential to take steps to protect your financial interests. Here are some tips for safeguarding your assets during a divorce in Denver:
- Keep Detailed Records: Maintain accurate records of all assets, including bank statements, property deeds, and receipts for significant purchases. This will help ensure that all assets are accounted for during the divorce.
- Avoid Commingling Assets: Keep separate property distinct from marital property to avoid commingling. For example, do not deposit inheritance funds into a joint account.
- Consult a Financial Advisor: A financial advisor can help you understand the long-term implications of asset division and assist you in making informed decisions.
- Work with an Experienced Divorce Attorney: A knowledgeable divorce attorney can guide you through the process of dividing marital property and ensure your rights are protected.
At Baker Law Group, PLLC, we have extensive experience helping clients protect their assets during divorce proceedings. Whether you’re concerned about dividing a business, retirement accounts, or real estate, we are here to help.
6. The Role of Prenuptial and Postnuptial Agreements
A prenuptial agreement or postnuptial agreement can play a significant role in determining how marital property is divided in a divorce. These agreements allow couples to specify which assets will remain separate property and how marital assets will be divided in the event of a divorce.
A prenuptial agreement is created before the marriage, while a postnuptial agreement is created after the marriage. Both agreements can help protect individual assets and prevent disputes over property division during a divorce.
If you have a prenuptial or postnuptial agreement, it’s essential to ensure that it is legally enforceable under Colorado law. Working with an experienced attorney at Baker Law Group, PLLC can help ensure that your agreement is properly drafted and upheld during a divorce.
Contact a Denver Divorce Lawyer at Baker Law Group, PLLC Today
If you are considering divorce and need help protecting your assets, contact Baker Law Group, PLLC. Our experienced divorce attorneys in Denver can help guide you through the process, protect your financial interests, and ensure a fair division of marital property.
