Property Division Attorneys in Denver

Colorado’s Requirement of Equitable Division of Property

In Colorado, couples are entitled to equitable property division; it is not a community property state. It is essential to note that this does not mean split evenly or equally. It means that the division of property must be fair. 

Colorado Revised Statutes §14-10-113 addresses the disposition of property in a divorce in Colorado or even legal separation. If a couple cannot come to an agreement on their own, they will need an experienced property distribution lawyer in Denver and will need to go before an arbitrator or a judge who will determine the outcome. 

If a judge decides how to divide the property, they will consider the following factors in their decision:

• The financial conditions of each spouse
• The parent who has physical custody of the children the majority of the time as they are usually granted the family home or the right to live in the family home for a certain time period after the divorce
• Changes in the value of a spouse’s separate property during the marriage
• Changes in value to the spouse’s separate property for marital purposes
• The value of the property assigned to each spouse

Property Division in Colorado Quick Guide

• Equitable division ≠ Equal division: Colorado courts seek fairness, not a 50/50 split.
• Marital fault is irrelevant: Courts don’t consider wrongdoing like affairs or abuse in property division.
• Factors considered by the court include:
  • Contributions to marital property acquisition, including homemaking.
  • Economic circumstances of each spouse.
  • Changes in separate property values during marriage.
  • Depletion of separate property for marital purposes.

Marital vs. Separate Property:

• Marital property: Acquired during marriage.
• Separate property: Acquired before marriage, through inheritance or gifts, or after legal separation.

Appreciation on Separate Property:

• Appreciation on separate property is considered marital property.
• For example, if a $2M stock account grows to $6.5M during a 30-year marriage, the $4.5M appreciation is considered marital property by the court (subject to certain subtle legal debates and regulations best navigated by an attorney).

Unique Issues Couples May Encounter:

• No-fault vs. fault-based divorce: Colorado follows a no-fault approach.
• Economic fault: Considered when one party’s behavior harms the marital estate financially.
• Business interests: Valuation can be contentious; different parties have opposing incentives.
• Retirement accounts: Special rules apply for division; QDROs may be necessary.
• Wills & Trusts: Bring added complexity; involve intersections of family law, trust law, and accounting.
• Executive compensation: Complicated packages require expert assessment.
• Property division strategy: Key considerations include asset values, income, tax implications, and manageability.

Navigating property division in a Colorado divorce requires a thorough understanding of equitable distribution principles, asset division and valuation, and legal strategy. Consulting with experienced professionals can help ensure a fair and favorable outcome.

Request a free case evaluation or call us at 720-594-7360 to get started.