Colorado
Property Division
Assets must be deemed either
“marital property” or “separate property”. If property is
agreed to be “marital”, it will be equitably (not the same
as “equally”) divided according to Colorado’s statutes.
Property obtained prior to the
marriage is “separate,” but any increase in value during the
marriage is marital property. For example, if one spouse
purchased a home in 1995 (before the marriage) for $80,000,
but wants to sell it in 2008 (after the divorce) for
$150,000, then the increase in value($70,000) is considered
“marital” property.
However, some property is always considered “ separate,”
even if it was obtained during the marriage, such as an
inheritance. An inheritance is separate property, however
any increase in value of an inheritance during the marriage
will be considered marital property.
Can I keep my
personal bank account? It’s only in my name, not my
spouse’s?
Not necessarily. According to Colorado law, both spouses
must provide the Court (and one another) with financial
documents in order to best ascertain the value of assets
obtained during the marriage. In other words, you must
disclose all financial documentation, and then it will
be up to the Court to decide what is “separate”
property, and what must be divided between spouses.
Even though your bank account is only in your name it is
still going to be considered marital property if:
-
You deposited funds
during your marriage that co-mingled with funds from
prior to your marriage. In this case the account
would be considered co-mingled and therefore marital
property.
-
The funds you
deposited were earned during the marriage, or
-
Even if you only
have funds in the account from before your marriage,
the principal amount will be separate funds but the
interest earned on funds or any increase in value to
the account during your marriage is considered
marital property.
Who takes on the
marital debt?
Marital debt is “equitably” distributed in the same
manner as assets. Normally, the party who is allowed to
keep a certain asset (say, a car or a home), will likely
be responsible for the corresponding debt.
Do I need to
sell the house?
It depends. The house is a marital asset if it was
purchased during the marriage. How marital assets are
divided depends on the circumstances of your case. If
you are able to keep the house in a division of assets,
then you will also have to look at your ability to pay
the mortgage and expenses. Maintenance/Alimony may come
into play or not depending on your circumstances.
Suffice it to say that the question of keeping the house
can only be answered by your attorney after looking at
all of the circumstances of your case.
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