Couples who are married often work hard to purchase things they want. This can include anything from vehicles and homes to investments and art collections. Those assets are often a source of pride, and they may come with debt. People may not realize that these assets and debts can become a major source of contention if they decide to get a divorce.
Colorado follows the equitable method of property division in a divorce. This means that everything is split up based on what’s fair instead of the focus being on what’s equal. Factors, such as marital contributions, are considered during the property division process.
What’s considered marital property?
In Colorado, marital property typically includes all assets and debts that were acquired during the marriage. It typically doesn’t matter who earned the income or whose name is on the property. Separate property usually includes anything that was owned by one party before the marriage, as long as it wasn’t comingled with marital assets, inheritances and certain gifts.
The presence of a prenuptial agreement can also affect how property is classified. As long as the prenup is valid, the terms contained within it will be followed during the divorce.
How is property divided?
The exact method of division depends on the circumstances surrounding the case. Some people can use alternative dispute methods, which give both parties some control over how things are divided. If that’s not possible, the court can step in to issue an order for the division.
The property division process will include debts and assets. In some cases, assets are liquidated to pay off debts, so both parties start their new single life on the best financial footing possible. It may be best to work with someone who’s familiar with these matters so they can assist with determining what options are available for the property division process.