Property Division In Denver Divorces
A critical part of your divorce will involve the division of marital property. When you or your spouse decides to file for divorce, you may find yourself concerned about your family’s financial security. In Colorado, both spouses are entitled to an equitable (fair) division of marital property. Likewise, you may both be responsible for marital debt.
Even though the goal of the court is a fair outcome, this can be a daunting process for many people. At GEM Family Law, we are committed to helping you achieve an outcome that enables you to begin the next chapter of your life with confidence and security. We are a trusted family law firm serving clients throughout Denver and surrounding areas.
Dividing Marital Debt
The division of marital debt can be one of the most difficult aspects of a divorce for parties. Your credit may be entangled with your spouse’s, or you may believe that your spouse incurred debt purchasing things that did not benefit your family and only benefited them.
At GEM Family Law, we are experienced in dealing with the complexities surrounding the division of marital debt. We understand how to skillfully navigate divorces involving significant assets. Our creative and seasoned attorneys will work with you to find positions and solutions that will protect you, your credit and your assets after divorce.
Separate Property Claims
In Colorado, if you brought an asset into the marriage, no matter how large or small, you may have a claim for a separate property. If you have a successful claim of separate property, this asset cannot be divided by the court, unless you waive that claim. We understand the importance of keeping your separate assets whole and will work diligently with you to protect your separate property.
Complex Property Division
In many cases, particularly long-term marriages, there is a comingling of the issues of separate property, marital property, the division of marital debt and liabilities, and maintenance. Even in cases where one spouse has been the breadwinner, the contributions to the family of both parties to the marriage must be considered.
This can lead to complex concerns with respect to the division of property. Whether you came into the divorce with the majority of the assets and are concerned that you will be treated unfairly, or you have worked hard so that your spouse could secure and maintain a high-paying job, our legal team is here to help.
Property and assets that may be subject to division after divorce include:
- Bank accounts
- Stocks
- Traditional retirement accounts
- Defined benefit plans
- Life insurance policies
- Investment accounts
- Businesses or business interests
- Real property (real estate)
- Personal property (furniture, jewelry, antiques, valuable collections)
- Vehicles
- Airline miles
Do not make any decisions about the division of your marital property before you get answers to your questions. The choices you make at this time may be impossible to change and could have lasting consequences that severely jeopardize your financial future.
What To Do With The Marital Home In Divorce?
We understand that your home is not just a physical structure but also a significant asset, infused with deep financial and emotional value. In areas like Denver and Boulder, where home prices are exceptionally high, you may have accumulated substantial equity in your home. This equity may be a pivotal aspect of property division in your divorce.
Divorce requires addressing numerous considerations regarding the marital home. Some things to contemplate include:
- Who will reside in the home during the divorce proceedings?
- Who will keep paying the mortgage and taxes?
- How will the equity be divided?
Depending on your goals, it may make sense to have one spouse buy out the other or sell the home and split the proceeds. Each choice requires careful consideration that takes into account both immediate and long-term considerations, including the impact on your children.
An accurate home appraisal is critical. You will need a professional evaluation of your home to determine its current market value based on factors like size, property characteristics, location, condition and market trends.
You only have one chance to get it right when it comes to dividing your home in divorce. Our team can advise you on all aspects of this weighty decision. We can help you secure a precise appraisal that reflects the true value of your shared home and provide guidance on the options that align with your vision for the future.
Common Property Division Questions
Understanding how courts distribute assets and liabilities under Colorado’s “equitable distribution” rules is vital to your financial, physical and emotional well-being. Here are some common questions our attorneys receive over dividing marital property.
If my spouse and I own a home together, what will happen to the property?
Owning the home together is subject to an equitable property division like everything else accumulated during the marriage. The equity is also subject to division, meaning parties may need to get creative to find solutions, especially if one party is aiming to stay in the home. With the high value of residential property in the Denver metro area, accurately assessing and fairly distributing your home’s value is critical.
What about debts, like credit card debt or car payments, etc.?
Debts accumulated during the marriage may also be subject to division, depending on the circumstances. An attorney can help explore the various options available and propose solutions that help the parties protect what is most important to them during the process.
My spouse stays at home while I work. Will I lose my retirement in the divorce?
Absent any prenuptial agreements, one spouse’s retirement earnings will likely be subject to division at the time of the divorce. This can include stock options, pensions, 401(k)s and IRAs.
Retirement savings earned during the marriage are generally considered marital property. The court will consider various factors, such as the length of the marriage, each spouse’s financial situation, marriage contributions (including non-financial ones like homemaking) and future needs.
I inherited a second home from my parents. Can I lose this in the divorce?
In most cases, inherited or gifted property remains outside of the property division proceedings, but this can get complicated. Understanding how to protect these assets in a divorce is something you need to discuss with your attorney.
I settled my divorce without understanding all the assets we had accumulated during the marriage. Can I revisit the divorce and modify that settlement?
In most cases, no. Unless your spouse conceals assets, you will most likely have to live with the agreement you made, which is why it is so important to get things right when going through your divorce.
What happens to businesses in a divorce?
In a Colorado divorce, courts typically consider businesses and professional practices established during the marriage as marital property. If the business existed before the wedding, spouses may share the value added during the marriage. The court will evaluate the business’s worth and may divide its value equitably between the spouses.
This could involve selling the business and dividing the proceeds, one spouse buying out the other’s share or other arrangements that ensure a fair distribution. Consulting with a financial expert and an experienced divorce attorney is crucial for valuing and dividing such assets equitably.
What marital assets can be overlooked during a divorce?
Some assets are often overlooked but can still be subject to division. These include frequent flyer miles and reward points. Other not-so-well-known assets include collectibles and antiques, such as art, coins and other valuable items.
Additionally, spouses should disclose club memberships, health savings accounts (HSAs), deferred compensation like earned but unpaid bonuses and life insurance policies with cash value.
Being mindful of hidden or undisclosed assets, such as offshore accounts or secret investments, is crucial to ensure a fair division. Conducting a thorough inventory of all assets and consulting with a legal professional is essential for an equitable distribution.
Talk To An Experienced Denver Property Division Lawyer Today
To speak to one of our experienced attorneys, please call our Denver office at 720-443-4892 or send us an email to find a time that works for you. We offer free consultations to prospective clients.
