How Is Property Divided in a Colorado Divorce?

Divorce can bring many questions, and one of the biggest is how property will be divided. Colorado follows an equitable distribution approach, which means property is divided fairly—but not always equally—between spouses. Understanding the difference between marital and separate property is key to knowing what to expect during the process.

What Is Marital Property in Colorado?

Marital property includes most assets and debts that either spouse acquires during the course of the marriage, regardless of whose name is on the title or account. In Colorado, the law generally treats anything gained or accumulated after the wedding and before the date of separation as marital property. This broad definition means that even if one spouse earns more or purchases something individually, those assets are typically shared between both parties in a divorce.

Common examples of marital property include:

• The family home
• Cars
• Bank accounts
• Retirement accounts
• Investments
• Furniture and household items
• Debts taken on during the marriage

It’s important to note that ownership or title alone doesn’t determine whether something is marital property. For instance, if a car or a bank account is only in one spouse’s name but was acquired during the marriage, it’s usually still considered marital property and subject to division. This approach helps ensure that both spouses have a fair share of the property and debts accumulated while they were together.

What Counts as Separate Property?

Separate property refers to assets or belongings considered the sole ownership of one spouse and are generally not subject to division during a Colorado divorce. These assets are usually kept apart from the marital estate because they were acquired under circumstances that clearly identify them as belonging to just one person. The idea behind separate property is to protect what each spouse brought into the marriage or received individually, rather than what was built or accumulated together.

Common examples include:

• Assets owned before the marriage
• Gifts or inheritances received by one spouse (even during the marriage)
• Certain personal injury settlements

However, if separate property increases in value during the marriage, that increase could be considered marital property. Let’s say one spouse owned a house before marriage, and its value grew while married; the increase might be subject to division.

How Does Equitable Distribution Work?

Colorado uses an equitable distribution system to divide property during a divorce, which means the court’s main goal is to ensure a fair—not necessarily equal—split of marital assets and debts. This approach recognizes that every marriage and financial situation is unique, so rather than automatically dividing everything 50/50, the court carefully examines each family’s circumstances to decide what is most just.

The process of equitable distribution typically involves three main steps: identifying all assets and debts, determining which are marital versus separate property, and then assigning a value to each item. Once everything is accounted for and valued, the court considers various factors to decide how to divide the property.

Judges consider the following:

• Each spouse’s contribution to acquiring marital property (including as a homemaker)
• The value of each spouse’s separate property
• Economic circumstances of each spouse at the time of division
• Any increases or decreases in the value of separate property during the marriage
• The desire to keep certain assets, like the family home, with the parent caring for children

When dividing property, the court does not consider marital misconduct (like infidelity). The focus is on what is fair given each family’s unique circumstances.

Why Trust Moreno Family Law, LLC for Your Colorado Divorce?

Navigating property division in a Colorado divorce can be complex, but having the right legal guidance makes a difference. Moreno Family Law, LLC has experience helping clients understand their rights and options, ensuring each step is transparent and manageable. Our family law attorneys are dedicated to providing support and clarity throughout your divorce journey.