In Colorado, property division in a divorce follows the principle of equitable distribution, which means the court divides marital property fairly but not necessarily equally. Key factors considered include:
Marital vs. Separate Property
- Marital property includes assets and debts acquired during the marriage, regardless of whose name they are under.
- Separate property includes assets owned before the marriage, inheritances, and gifts received individually, unless they were commingled with marital property.
Factors for Division
- The contribution of each spouse to the acquisition of marital property (including homemaking contributions).
- The value of the property set aside for each spouse.
- The economic circumstances of each spouse at the time of property division.
- Any increase or decrease in the value of separate property during the marriage.
Debts
- Marital debts are divided similarly, based on fairness rather than equality.
The court aims for a just distribution based on these factors, which can involve selling assets, offsetting values, or awarding property to one spouse with financial compensation to the other. Spouses can also reach a property settlement agreement outside of court.
A key consideration that must happen before the court can equitably divide assets, is for the value of the assets to be determined. In cases such as bank accounts and credit card debt, it can be quickly ascertained. However, for certain assets such as real property, business interests, and pensions (etc.) it can require the retention of an expert to opine as to value. If you find yourself in a situation where there are complicated valuation issues, it is highly recommended to retain experienced counsel.
What factors affect spousal maintenance (alimony) in Colorado?
In Colorado, spousal maintenance (alimony) is determined based on several factors to ensure fairness and financial support for a lower-earning spouse after divorce. The court considers the following key factors:
Financial Resources of Both Parties
- Each spouse’s income, assets, and property received in the divorce.
- The ability of the requesting spouse to meet their reasonable needs independently.
Earning Capacity and Employment
- The ability of the paying spouse to provide support.
- The receiving spouse’s current employability and future earning potential.
Standard of Living During the Marriage
- The lifestyle established during the marriage and whether it can be maintained post-divorce.
Duration of the Marriage
- Longer marriages often result in higher or longer-term maintenance awards.
Age and Health of Both Spouses
- Physical and emotional health may impact the ability to work and the need for support.
Child Support and Custody Arrangements
- The impact of caring for minor children on a spouse’s ability to work.
Contributions to the Marriage
- Contributions as a homemaker or support for the other spouse’s career or education.
Temporary vs. Permanent Support
- Temporary maintenance may be awarded during the divorce process, while permanent maintenance is determined afterward.
Colorado also uses a guideline formula for marriages lasting at least three years, but the court can deviate from it based on these factors. Each case is unique, and the judge has discretion to determine a fair outcome. So, if you feel that there may be a maintenance obligation in your case (whether on the paying or receiving end), reach out to qualified counsel to review the above factors as they relate to your specific circumstances.
