Dividing assets in a divorce can be complex, but understanding how Colorado courts handle the process can help clarify things. Colorado follows an “equitable distribution” model, meaning the court divides assets fairly, though not necessarily equally. The goal is to ensure a just outcome for both parties involved.
What does equitable distribution mean?
In Colorado, the law does not require a 50/50 split of assets. Instead, the court looks at what is fair, considering factors such as the length of the marriage, each party’s financial contributions, and any future financial needs. The court aims to reach a solution that fits the circumstances.
What assets are considered marital property?
Marital property includes assets acquired during the marriage, no matter who earned or purchased them. This category can include real estate, retirement funds, vehicles, and personal property. In contrast, separate property (such as assets owned before marriage or inherited items) typically remains with the original owner.
How do courts value assets?
The court considers the current market value of assets when dividing them. Experts may appraise real estate, business interests, or valuable personal property. For retirement accounts and pensions, the court may involve professionals to determine their value and how to split them.
What about debts in a divorce?
Debts also divide equitably. The court assesses who is responsible for each debt based on factors like who incurred the debt and the financial circumstances of each spouse.
Dividing assets is not just about splitting everything down the middle. It is about ensuring both parties receive a fair outcome under the law. Understanding this process can help you better prepare for what to expect if you face divorce.