Property and Debt Division
When two people separate, the question naturally arises how to divide their property and debts. In Colorado, the legal standard for this is that the division must be “…in such proportions as the court deems just after considering all relevant factors…” C.R.S. §14-10-113. The kinds of things typically considered by a court are how each spouse contributed to acquiring marital assets (including the contribution of a homemaker), value of separate property and the economic circumstances of each spouse.
In Colorado, the only property which may be divided by a court in a divorce is marital property. That is defined as any property acquired during the marriage, except by gift or inheritance. It also includes any increase during the marriage in the value of non-marital property. Thus, whatever you and your spouse acquire together is likely to be marital property, and can be divided in a divorce. This includes retirement benefits, whether defined contribution (like an IRA or 401k) or defined benefit (a pension that promises to pay you each month once you retire). Also, as long as you and your spouse acquire the asset during the marriage, the manner in which it is titled does not change the classification of the asset as marital.
During the course of the divorce process, you and your spouse will be required to exchange documents showing ownership and value of property, and whatever debts you have, so that each of you (and the court if necessary) has the information needed to make informed decisions about dividing your property and debts. This is a process everyone at JKIW we has dealt with for many years, and we can help you gather and present this information.
We work hard to use the best information available to negotiate a fair and lasting agreement in each case. The result is that very few of our divorce cases actually require a court to decide how to divide property and debts. A negotiated agreement will generally work better for you and your spouse, since many details which are beyond the scope of a judge’s authority or time can be worked through by you, your spouse and your lawyers.