Property Division Lawyers in Colorado 

Helping clients protect their rights to assets and property during divorce in Colorado

Dividing shared property is one of the more challenging aspects of divorce. Many assets inevitably become commingled during marriage, and understanding how to legally separate them can be challenging. Disputes often arise during this process that may prolong the finalization of a divorce. 

At Palmer Family Law, we help clients understand and navigate property division in divorce cases. Knowing your rights to shared and separate property can help you protect such assets and avoid a settlement agreement that is not fair or equitable. 

How Colorado Defines Marital vs. Separate Property

Colorado law defines two distinct types of property relevant to property division in divorce: marital and separate property.

Marital property generally includes all assets and debts either party acquired during the marriage. This may include:

• Income
• Real estate
• Vehicles
• Retirement accounts
• Bank accounts
• Personal property
• Household goods

Meanwhile, separate property includes any assets either party acquired before the marriage or received during the marriage as an inheritance or gift.

Separate assets often become commingled during the marriage, making it challenging to define them as “separate” in a divorce. For example, both spouses may combine their savings into a joint bank account after the marriage.

They would have a difficult time proving what percentage of the savings belongs to each party in the event of divorce. In many cases, the court automatically views property mixed with marital assets as marital property.

The spouse claiming property as separate has the burden of proof. This is why it can be incredibly helpful for couples to create prenuptial agreements prior to the marriage. This legal contract would clearly enumerate which assets belong to each party and include provisions for property division in a divorce.

Colorado’s Property Division Laws in Divorce 

In Colorado, marital property is subject to division during a divorce. This means that the majority of the assets and property each spouse acquired during the marriage should be divided between them in a divorce.

Colorado follows an “equitable distribution” policy for property division. The courts aim for a fair division of property that is not necessarily an exact 50/50 split of valuation. 

For example, if one spouse is at a financial disadvantage due to the divorce, the court may award them a greater percentage of marital assets to account for this disadvantage. The equitable distribution policy seeks to help both spouses maintain a similar standard of living after divorce. 

The Division of Debts in Divorce 

Divorce also involves dividing marital debts between both spouses. In Colorado, marital debt includes debts incurred by either party during the marriage. Even if the debt is only in one spouse’s name, the court would generally divide it fairly between both spouses. Meanwhile, separate debt includes debts incurred before the marriage or after legal separation. 

A judge would consider several factors when determining how to divide marital debt, such as:

• The earning potential of each spouse
• The circumstances surrounding the debt
• Any prenuptial agreements
• The couple’s overall financial situation
• Whether one spouse incurred the debt for a non-marital purpose, such as an affair

Having an experienced divorce attorney on your side is essential when advocating for your rights in the division of debts. You may know that your spouse was fully responsible for incurring the majority of the debt in your relationship. An attorney can help you advocate for a division that reflects these circumstances. 

Dividing Property in Special Circumstances

You may wonder how property division works in a legal separation or when terminating a common law marriage in Colorado. Our attorneys can provide personalized guidance that reflects the unique circumstances of your case. 

Legal Separation

Legal separation allows married couples to go through all of the processes of divorce while still remaining legally married. As such, legal separation involves property division. This process generally follows the same guidelines as property division in a divorce. 

The court becomes involved in legal separation cases to address issues like division of assets and debts, child custody, child support, and spousal maintenance. If you and your spouse cannot agree on these issues, the court can make decisions for you. It would follow the equitable distribution rule to divide shared assets and debts. 

Termination of Common Law Marriage 

Colorado recognizes common law marriages as being just as valid as ceremonial marriages for all purposes. A couple can enter a common law marriage if they:

• Mutually agree to be married
• Cohabitate
• Portray themselves as married to the public

The only way to end a common law marriage is through death or divorce. If you and your spouse meet the above requirements, you would need to go through the property division process to end the common law marriage. 

Speak with our attorneys about how to avoid being subject to the responsibilities of a common law marriage if you do not wish to unknowingly enter this type of agreement under Colorado law. 

Preparing for Marital Property Division 

Any of the marital property you and your spouse share could be subject to property division in a divorce. Your attorney can help you take a few steps to prepare for this process and potentially protect separate property:

• Gather and organize all documentation related to bank accounts, property ownership, taxes, and loans. These can help you distinguish assets that either of you acquired before the marriage. 
• Create a list of all assets and debts. Include all real estate, vehicles, personal belongings, retirement accounts, other shared bank accounts, and outstanding debts from loans or credit borrowed during the marriage. Estimate the value of assets. You will likely need to seek a professional asset valuation for property with unclear value during the divorce. 
• Understand what could be considered marital property. Review assets closely and consider what the court would deem marital property. Any assets commingled with joint accounts could be labeled as marital property. If separate assets increased in value during the marriage, that increase could also be part of your marital property. 

Using Mediation To Resolve Disputes Around Property Division Out of Court 

You and your spouse retain control over how you will divide your shared assets if you can reach an agreement on your own. If you cannot agree, the court will intervene and use the equitable distribution policy to divide assets. The judge’s decision may not reflect your personal wishes for the property or what you believe would be best for your family.

Mediation could help you and your spouse reach an agreement on your own and potentially avoid going to court to have a judge determine property division. Our attorneys can walk you through the mediation process.

This typically involves you and your spouse meeting together with a third-party mediator and your own legal counsel. Each of you would have space to share your perspective and meet with the mediator separately. The mediator would brainstorm solutions and guide you toward an agreement. 

Seek Legal Support From Palmer Family Law

At Palmer Family Law, we understand that many questions may arise when you consider the property division process. Who will keep the family home? How will you get by on only one income? What if your spouse is mainly responsible for the marital debt? 

Our attorneys are here to help you gain clarity through this process. Contact us today at 720-399-7434 to request a free, 30-minute consultation and learn how we can assist you through property division in Parker, CO.