Divorces have a way of draining not just your emotions but also your finances, especially when it comes to dividing the assets accumulated during the marriage. However, there is a way to make this process a little less stressful – understanding the property division laws in Colorado.
The Distinction: Community Property vs Equitable Distribution States
The first thing you need to know is that Colorado follows an equitable distribution system rather than the community property approach. In community property states, marital property is split equally between divorcing couples, while in equitable distribution states like Colorado, the court aims to distribute marital property "fairly." This means that judges take various factors into account before dividing the assets.
Understanding the Difference: Marital Property vs Separate Property
In equitable distribution states like Colorado, marital property and separate property are treated differently. Marital property encompasses assets and debts acquired by either spouse after the marriage, while separate property includes the assets and debts obtained before the marriage, as well as gifts and inheritances explicitly given to one spouse.
Factors That Influence Property Division
When it comes to property division in a Colorado divorce case, judges consider several factors to determine a reasonable and fair distribution of assets. These factors include:
1. Duration of the marriage
The length of the marriage significantly affects property division. Generally, shorter marriages lead to less complex property division as spouses have had less time to accumulate separate property.
2. Income and earning capacity
The court takes into account the income and earning capacity of each spouse when deciding how to distribute the property. The spouse with a lower earning capacity may receive a larger portion of the marital property.
3. Age and Health
The age and health of both parties can also impact the division of both marital and separate property. If one spouse has a disability or poor health, the court will consider these factors.
4. Contribution to marital property
Contributions to marital property can be monetary or non-financial in nature. The court considers both types of contributions when determining the division of property.
5. Custodial parent
Should children be involved, the custodial parent may be awarded a larger portion of marital property to support the needs of the children.
Approaches Used for Property Division
Once the identification of marital and separate property is complete, Colorado divorce courts employ three approaches to distribute assets:
1. In-kind distribution
In this scenario, physical property is divided equally between both spouses.
2. Offset distribution
The court may award one spouse property of equal value to the other spouse. For example, if one spouse gets to keep the family home, the other spouse might receive a retirement or investment account with an equivalent value.
3. Monetary award
A judge may opt to award one spouse a monetary payment in order to balance out the value of the property division.
In Conclusion
Property distribution in Colorado divorce cases involves careful consideration of various factors to ensure a fair and reasonable division. If you find yourself confused or uncertain about this process, consulting a family legal expert will provide the clarity you need. Remember, understanding the complexities of property division will go a long way in minimizing stress during divorce proceedings.