Colorado is an equitable property state which means that property is equitably divided if the couple decides to divorce. This means that property will be divided by the family law court with the goal of dividing property as fairly and possible.
Only marital property is subject to the property division process during the divorce process. Marital property includes income and assets the couple acquired during their marriage. Marital property is contrasted with separate property which is not subject to the property division process during divorce. Separate property includes property one of the spouses enters the marriage with, inheritances, gifts and personal injury settlements. Commingled property is another category of property divorcing couples should be aware of.
Unlike in community property states, property is not divided equally, or in half, in an equitable property division state such as Colorado. The family law court will work to reach a fair property settlement that helps both spouses be on a solid financial footing moving forward towards their future following the divorce. Divorcing couples are also encouraged to reach a property division settlement agreement by working together if they are able to do so which makes it useful to them to understand the property division rules and laws in their state.
Property division can be one of the many concerns that cause stress during the divorce process so being familiar with how property division will be resolved can be useful information for divorcing spouses to have. Divorcing couples can help their divorce process along by being aware of how assets are divided in Colorado.