Division of Property

With respect to the division of property, Colorado is an equitable division state. While the Courts often divides property equally, Colorado law requires the Court to divide property equitably or fairly.

Any property acquired by either party or by the parties together during the marriage is considered to be marital property subject to division. It does not matter how title to the property is held; the only concern is whether it was acquired subsequent to the marriage and prior to the entry of a decree.

Certain "separate property" is excluded from the definition of marital property and is not subject to division. This property includes but is not limited to: gifts made to one spouse, inheritances, property excluded by a valid agreement of the parties and property owned by one party prior to the marriage. It is important to note, however, that the increase in value during the marriage of any separate property is considered to be marital property, and is subject to division.

The Court must divide marital property without regard to marital misconduct. Colorado is a no-fault state, which means that the Court is not interested in the reason the marriage failed. Colorado law requires only that the marriage is "irretrievably broken." In dividing marital property, the Court considers many factors including:

• The contribution of each spouse to the acquisition of the marital property, including the contribution of the spouse as homemaker
• The value of the property set apart to each spouse
• The economic circumstances of each spouse at the time the division of property is to become effective, including the desirability of awarding the family home with a right to live there and for a reasonable period to the spouse with whom any children reside the majority of the time
• Any increase or decrease in the value of the separate property of the spouse during the marriage or the depletion of the separate property for marital purposes

Marital property that is routinely divided includes equity in a home, ownership or interest in a business, investment accounts, retirement accounts, equity in vehicles, checking and savings accounts, life insurance and personal property.

If either party or both parties have retirement accounts, these assets can be offset against other assets, or in many instances they can be divided by Court order without any tax ramifications or penalties as long as certain procedures are followed.

It is important to consult with an accountant to discuss the tax and financial issues that are associated with your divorce so that you can negotiate a settlement that is tailored to your short- and long-term financial needs.

Gary B. Pulitzer, P.C.
4465 Kipling St. Suite 200
Wheat Ridge, CO 80033
303-421-5600

 The information you obtain at this site is not, nor is it intended to be, legal advice.  You should consult an attorney for advice regarding your individual situation.  Contacting us does not create an attorney-client relationship.  Our firm practices and is admitted to practice only in Colorado. The information contained on this website is unique to Colorado.