When it comes to divorce, there are a lot of elements involved, and dealing with them all can be complicated. One of the most contentious issues is property division. Each state is different when it comes to the laws involving who gets what, but Colorado is an equitable distribution state. What this means is that marital property is divided fairly between the spouses. While “fairly” could mean 50/50, it could also be 60/40, 70/30, or some other division, based on each spouse’s contributions to the marriage as well as their economic situation at the time of the divorce. 

Property division is not as easy as splitting everything down the middle. Some assets, such as retirement accounts, are harder to divide than others. That’s why you need an advocate on your side to help you set realistic expectations and form a clear strategy when it comes to dividing marital property. Plus, you want to ensure that your spouse provides full financial disclosure. The skilled divorce lawyers at Tanis McGonegal can help you with this sometimes arduous process.

Property Division During Divorce: What is Marital Property?

When you think of marital property, you may think of money, real estate, and vehicles, but there is much more than that. Some other types of property you may not even know you have include:

• Real estate equity
• Investments (stocks, mutual funds, etc.)
• Stock option
• Retirement accounts (IRA, 401(k), FERS, PERA, pensions, etc.)
• Personal property (such as jewelry and electronics)
• Household goods (such as furniture)
• Business interests
• Pets
• Personal injury awards 

Marital property is generally anything that was acquired during the marriage. It also includes appreciation in the value of non-marital property if that increase is due to the work of either of the spouses. For example, fs a wife came into the marriage with a plot of land titled in her name alone but then spent marital funds to build a house on that property, the resulting increase in the value of that property would be marital. 

What is Separate Property?

Generally, non-marital property includes all of the assets and debts that a person acquires prior to marriage. It is whatever a spouse comes into the marriage with, so long as that asset does not commingle with marital assets. 

Some common examples of separate property include the following: 

• Real estate purchased prior to the marriage 
• Cars 
• Pets 
• Household furnishings
• Money in bank accounts 
• Professional licenses

Some assets are non-marital property, even when they are acquired during the marriage. These can include gifts or inheritances to one spouse alone. 

Marital Property vs. Separate Property

First, it is important to differentiate between marital property and separate property, as only marital property is split in a divorce. For the most part, any property you owned prior to the marriage is not subject to split. However, there is one exception — commingling. 

Commingling refers to mixing separate assets with marital ones. This is where the lines can blur and cause your separate property to become marital property. For example, if you merge all your money into a joint account once you get married, it becomes marital property. So does any inheritances, which are typically classified as separate property. If you keep them in separate accounts and do not use them to pay for marital expenses, then they remain separate. 

So, if you have avoided commingling, then your separate property will remain separate in a divorce, which means you will not have to split it in a divorce. If you and your spouse acquired assets during a marriage, though, that is considered marital property and is subject to split. 

Don’t Forget Debts

Property division involves more than just splitting marital property. It also involves the allocation of marital debts. Do not forget to consider the debts that you and your spouse have accrued during the marriage. Those will have to be split equitably between you, as well. 

Contact Us Today

In a Colorado divorce, marital assets are split equitably, and this process is rarely simple. Make sure you get your fair share. Make sure you have a skilled family law attorney on your side so that you do not leave anything on the table.

The team at Tanis McGonegal can protect your interests during a divorce and help you find ways to settle property matters quickly and fairly. Schedule a consultation with our Colorado divorce lawyers today. Call (303) 465-4605 or fill out the online form.