What are the Marital Property Division Laws in Colorado?

Plog & Stein, P.C. is well-versed in all the laws that constitute division of marital property rights in Colorado – therefore being well-equipped to devise strategies to designed to help you get seek out the most favorable outcome possible. Colorado is an “equitable distribution” state rather than a “community property” state – marital property is divided in an equitable manner, meaning the judge hearing your case has the discretion to divide marital property as he or she deems to be “fair.”

Denver Marital Property Division Lawyers

Q: Why Choose Plog & Stein, P.C.?

The Denver family law attorneys at Plog & Stein, P.C. are committed to giving exceptional representation to Colorado residents looking to divide their marital property fairly in a divorce proceeding. Between the attorneys on our team, we have over 70 years of combined experience in all matters of family law, including the complexities of property and asset division. We understand that each case is different and that differing assets have different methods for both valuation and division. These intricacies can have an impact on settlement discussions or the outcome at trial.

Experienced Denver Marital Property Division Attorneys Ready To Help You

An image reflecting a marital property division case handled by an attorney in Denver. Each state has its own laws about how marital property will be divided and how it is characterized. In Colorado, courts will order a division of marital property that is equitable and fair, but not necessarily equal. Spouses may keep their separate property. Often, our attorneys can help our clients work through with their spouses how to divide their property through either joint settlement discussions or mediation. However, if the spouses are unable to agree, our Denver marital property lawyers can take your case to trial so that a court will determine which division of property would be most equitable.

In divorce proceedings, one of the significant issues litigants may face is the division of the marital property acquired over the course of the marriage. Under Colorado law, both spouses have a right to their fair share of marital property after a divorce, but what exactly that property may be can be highly contested and difficult to agree on. While the division of property can be contentious in a relatively normal divorce, property division can become exponentially more complex when dealing with multiple assets in a high-net-worth marital estate. Regardless of whether your marital assets are simple or complex, we can help you through your divorce with a fair property division.

Retaining a Denver marital property division lawyer with years of insight and experience can be invaluable during this process. At Plog & Stein, P.C., we understand the difficulties of dividing marital property in a divorce, and the toll it may take on what may have initially been an amicable case. The first step is understanding your rights, options, and what you may be entitled to. If you need assistance properly dividing your marital assets, we can help you secure the property allocation you deserve, including enforcing orders after the case is done. Nothing matters more to us than the outcome of your case and your financial future.

Topics

Why choose our law firm?
How can our lawyers help with your case?
Property division for high-net-worth couples
Marital property division laws in Colorado
Property division during divorces in Colorado
Concealed assets
Distribution of martial home and other real estate
Post-divorce enforcement of property orders

Why Choose Plog & Stein, P.C.?

The Denver family attorneys at Plog & Stein, P.C. are committed to giving exceptional representation to Colorado residents looking to divide their marital property fairly in a divorce proceeding. Between the attorneys on our team, we have over 70 years of combined experience in all matters of family law, including the complexities of property and asset division. We understand that each case is different and that differing assets have different methods for both valuation and division. These intricacies can have an impact on settlement discussions or the outcome at trial.

We regularly help our divorce clients with the division of all sorts of simple and complex marital assets, including:

Real estate (both residential and commercial)
Business interests
Retirement accounts (401K’s, IRA’s, and Pensions)
Investment and stock accounts
Alternate compensation packages, such as stock options or NQDC plans
Tangible, personal property

In any asset division case, the first step is determining whether property, in whole or in part, is marital, what the value is, and how to properly divide it. When spouses own an array of assets, coming up with a division plan that makes sense for our clients is always the goal. Though we strive to settle each case in an efficient manner, some cases proceed to a final orders hearing, at which the court will determine how the marital assets are divided. They key to successfully resolving these issues is thorough preparation for negotiations or trial. Our years of experience allow the Denver marital property division attorneys at Plog & Stein, P.C. to provide quality representation to our clients when dealing with allocation of their assets. Let us put that experience to work for you.

We take a logical, rational approach to your property division matters, including a thorough financial evaluation of both parties before devising a sound legal strategy.
We have significant experience handling the division of marital property in divorces and understand both the nuances of asset division and the evidence the court is looking for. We also know what a fair and appropriate property settlement looks like.
We employ a team of experienced family law professionals who are devoted to providing one-on-one contact and attentive communication to our clients for any questions or concerns they may have.
We regularly work with valuation experts regarding obtaining fair values on the various assets we may encounter. This can include dealing with forensic accounts for purposes of tracing hidden assets and income.
We are interested in getting the job done correctly, not just going through the motions. Our attorneys truly care about the quality of their work and building lasting relationships with our clients.

We understand your desires to retain possession of any assets or property that is rightfully yours, and we will fight for you to ensure you receive what’s fair.

A Lawyer Can Be Essential for Marital Property Division Matters in Denver

You may have some disagreements with your spouse about who should receive certain parts of your marital property. This can include points of contention such as:

Your spouse claiming your rightful assets as his or hers
What to do with a business which you jointly claim as co-owners
Any disputes involving real estate, and how to properly distribute that equally
Other financial assets such as stocks, bonds, and retirement accounts

Dividing some marital property can entail complex financial affairs that require significant amounts of evidence, along with the representation of an experienced legal professional to argue your case on your behalf. At Plog & Stein, P.C., our team of family law professionals is well-versed in all aspects of Colorado marital property law, giving you valuable insights on what can be fairly divided and what cannot. Let us put our skills and experience to work for you.

We Are Well-Equipped to Represent High-Net-Worth Clients

Much of the financial niceties surrounding marital property division become more complex in a high-asset divorce. In addition to the normal analysis needed in a standard division of marital property, a divorce involving a large array high-value assets can present other challenges related to present valuation, potential income flow, division method, and future valuations. Though the principles for assessing marital property in a simpler divorce situation would apply, the need for multiple valuation experts and a keen understanding of the future ramifications of receiving or parting with a certain item of property can materialize. When dealing with significant, high dollar assets, more planning is required. When questions arise regarding hidden or depleted assets it can even become necessary to engage a forensic accountant to trace asset or cash flow.

At Plog & Stein, P.C., our team of Denver marital property division lawyers has the experience needed for handling high-net-worth divorces. We utilize our knowledge, experience, and resources to evaluate the marital assets you may have that are subject to property division, followed by formulation of a plan that makes financial sense for you. In each case, we apply certain rules for settling or litigating the marital property aspects of your divorce:

Detail matters when negotiating a marital property settlement. As property settlements are generally not modifiable, making sure there is clarity in each term prevents ambiguities and problems downs the road.
Liquidity in assets matters when people are facing uncertain income or cash flow changes due to the divorce.
Not all retirement accounts are the same in terms of both present value and division method.
Protecting non-marital property and making sure it is clearly identified and separated from any marital property is a critical step before determining the best plan for allocated the marital property in any case.
Retirement dollars and other dollars are not equivalent, as retirement dollars taken out prior to requirement age generally come with a tax and penalty consequence.
Making sure each client thoroughly understands his or her rights and options related to the entire marital estate and each item of marital property in their divorce.

We take a comprehensive, logical approach to your assets in order to effectively determine the best strategies for properly dividing your valued investments. We believe this is ideal in cases of high-asset divorce and have successfully helped high-net-worth clients seek their desired outcomes in the marital property division process.

How is Marital Property Defined in Colorado?

Colorado statute, C.R.S. 14-10-113, dictates that only marital property is eligible to be divided among spouses in a divorce. Before being able to determine a fair division of property and assets, you must first determine the type of all property that is being contested.

Marital property generally refers to things bought or received during a marriage. This can include physical assets, like a home or furniture, investments, or even gifts given to both spouses as a couple. Items in both spouses’ names, such as cars and homes, are also part of marital property. This also includes any debts as well.
Separate property includes property owned individually by spouses before the marriage – along with any property acquired individually during the marriage as a gift from a third person or through an inheritance.

Although this seems like a straightforward way to determine which property is eligible for distribution, there are exceptions which sometimes lead to dispute or litigation.

A separate item of property may appreciate in value through the course of a marriage. Pursuant to statute, that increase in value will generally be considered marital property.
Spouses can readily convert separate property into marital property via a written agreement, titling, or conduct. Spouses can also convert martial property to separate property, after marriage, via an intra-marital (post nuptial) agreement, which would operate similar to a prenuptial agreement.
Separate property can often become intertwined with marital property (also known as “commingling”), causing complications in the property division process. For example, when one spouse takes funds which would otherwise be separate and puts them into a joint bank account, those separate funds arguably become marital property in nature.

At Plog & Stein, P.C., we understand that finances and assets can are incredibly important and are here to give you peace of mind through the divorce process. Our Denver divorce legal team is dedicated to working with you to make sure all of your assets are appropriately categorized and divided. Our goal to protect your assets during the stressful time that comes with divorce, and after.

How Property is Divided in Colorado Divorces

Property Division As a general rule of thumb, most Denver area judges or courts will divide marital property equally. However, in some instances, a court will divide property not necessarily equally, such as a 70/30 split. This may occur in instances in which one party has a much higher income or ability to replace property, or as may relate to alimony. Unequal asset division might also occur in instances in which one party is allocated more of the marital debt. Your attorney can explain this further and can also discuss how, in some cases, the amount of property retained by a party can also affect alimony.

Valuation of property in a divorce case is also highly important and something our lawyers are well versed in handling. Some property items are easily valued, such as a 401K with a specific balance amount.

Other marital assets require more complex valuations, such as the following examples:

Homes may need to be valued via the services of an expert appraiser
Businesses may require a business valuation expert

Pensions are often divided via what is called the “Time Rule Formula”. Knowing the value of each property item is important because property is not automatically split in half. Rather, whether done by the court or agreement of the parties, the key is to generally mix-and-match assets such that each party ends up with a roughly equal share of the proverbial marital pie.

From time to time, marital property issues can arise after the divorce is done, such as in instances in which one party conceals property when making his or her financial disclosures. It is important to keep in mind that the court generally only retains jurisdiction for five years from when the divorce decree enters to deal with undisclosed assets.

Characterizing Assets

Property owners with significant assets such as pensions, small businesses, retirement funds, investment properties, or “goodwill” may have more complex marital estates. A key aspect of dealing with complex marital estates is determining exactly what portion is marital property, identifying any separate property that should stay with the original owner, and determining ways to protect those assets.

We can also assess an individual’s interest in trust assets, as well as intellectual properties such as copyrights, patents, and trademarks. In order to make sure that our work is as accurate as possible, we may work closely with trustworthy professionals such as forensic accountants, appraisers, estate planners, and tax advisers. Property division may dramatically impact each party’s future wealth during a divorce. Therefore, it is crucial for Denver residents to retain complex marital estate lawyer and experts with experience in this area.

Suspect Your Spouse Has Concealed Assets?

At the outset of every divorce case, Colorado law (C.R.S. 14-10-107) puts into place an injunction prohibiting spouses from hiding, concealing, encumbering or depleting marital assets while the case is pending. You can, of course, purchase necessities or conduct business in an ordinary manner. However, you cannot take all the money out of your 401(k) or place an extra mortgage on your house. Both parties must disclose their financial position to the other side during the divorce, as well as report any transfers of marital assets which occur.

If you believe your spouse has concealed assets or depleted an account without your consent, our knowledgeable attorneys can investigate and make the court aware of these prohibited actions. The court may award you your share of any funds that have been dissipated by your spouse. Colorado Rules of Civil Procedure, Rule 16.2, also authorizes the court to deal with undisclosed assets in some situations for up to 5 years after the divorce is concluded.

Understanding the Distribution of the Marital Home and Other Real Estate

Colorado courts divide marital property, including real estate, equitably, or according to what is fair, rather than precisely equally. When dealing with real estate in a divorce, there are generally two outcomes. Either one spouse is going to keep the home or the home is going to be sold. In either scenario, the marital equity in the home will need to be divided. As such, the first step is to determine whether the real estate is martial, whether all or part of it. For instance, one party may own the home prior to the divorce. Presuming the home is not subsequently titled jointly, the equity to be divided will be any increase that accrued during the course of the marriage and how the home is titled will not matter. This holds true for any real estate owned prior to the marriage.

In most cases, however, a couple acquires the marital home, or other real estate properties, together, during the marriage. If the parties elect to sell the home as part of the divorce process, the value will generally be dictated by the market and the price for which the home sells. In those instances, the parties will either agree on how to divide the proceeds or the court will ultimately decide.

Distribution of Marital Home and Other Real Estate In instances in which one party is going to keep the home, the two issues to be resolved are the division of the equity and removing the second party from the financing, presuming the mortgage is in both parties’ names. For purposes of determining equity, your attorney will suggest either getting a formal appraisal done, or hiring a real estate agent to conduct a comparable market analysis. Both methods can be used to determine the fair value and either valuator may end up testifying in court as an expert witness. Once value is determined, outstanding debt on the property and any non-marital intricacies will need to be dealt with to arrive at the martial equity. Unless there are other offsetting assets, the person keeping the home will likely have to refinance to pull equity out for the other spouse. When the mortgage is in both parties’ names, there will likely also be orders or agreements entered regarding removing the other spouse from the financing within a certain amount of time.

There are many details and potential pitfalls that can come with dividing real estate in a divorce. An experienced Denver marital property division attorney will not only be ready to advise you regarding your options but will also be there to represent you when the time comes to resolve your real estate issues in your divorce.

Enforcing a Property Division Order

The final stage of a contested Colorado divorce is the permanent orders hearing. At the conclusion of this hearing, a judge will determine parental responsibilities, spousal support, and the final division of marital property. While divorce is often conceptualized as a process and soon-to-be-ex-spouses may be inextricably connected in some ways, final orders allow each person to move forward with their life. However, finality and closure depend on compliance and enforcement of final orders. Property division orders are meaningless if a party refuses to comply.

Navigating these situations, especially after a long-awaited divorce, can create financial and emotional challenges. The experienced Denver divorce lawyers at Plog & Stein, P.C. have a comprehensive understanding of the complex laws and procedures that govern enforcement orders. We are immediately available to discuss your situation and provide you with an overview of your options. That way, you can make the best decision for yourself and your family.

Enforcement Remedies for Violation of Colorado Property Division Orders

Typically, those wishing to enforce a marital property division order have several options to address the other party’s noncompliance and misconduct. Most enforcement motions ask the court to grant remedial relief by mandating compliance. However, some cases may allow for the judge to hold you in punitive contempt as well.

The primary strategies to enforce a family court order include the following:

Filing a motion for contempt,
Filing for a judgment, and
Filing a motion to enforce.

The court may order remedies, including the following:

The forced sale of assets,
The forced transfer of title,
Judgment, or
Garnishment of wages.

However, the process involved with enforcing orders depends on the specific facts and circumstances of the case. If you have questions about enforcing a property division order, an attorney can help you address minor, major, or anticipated violations, defenses, and alternative dispute resolution options to resolve these situations.

We Address All Issues with Division of Marital Assets

The division of marital property in a divorce starts with the initial divorce proceedings leading up to the entry of a divorce decree. Marital property issues, such as who gets the house or how the other spouse will get their equity will either be agreed upon through settlement or decided by the judge if agreements can’t be reach. In some cases, obtaining orders regarding the division of the marital assets is only the first part of the process.

Once the decree of dissolution of marriage enters, there may be other steps to be taken or issues that arise. At Plog & Stein,P.C., our dedicated marital property division attorneys will be there with you throughout the process, to make sure orders are followed and that you ultimately receive the property you deserve. It can take weeks or months for a retirement plan to be divided or transferred. Your orders may call for continued oversight regarding refinancing a home or the payment of marital debt. Regardless of the circumstances we can help.

We tailor all of our decisions to your specific needs. Ultimately, we want to be sure that you come out of these proceedings with a resolution that is more than fair for you and your specific circumstances. Whatever your needs related to marital property, the first step in the process of hiring the right family law firm to fight for you.

Contact Our Denver Marital Property Division Lawyers.

It is possible for divorcing couples to represent themselves in court. However, this can put you in at a disadvantage and cost you dearly, particularly if your spouse has a marital property division lawyer from Denver. The complexities of divorce cases can be hard to navigate if you don’t have any prior legal experience.

The legal team at Plog & Stein, P.C. is here so you don’t have to face that circumstance alone. Contact us online or call us for a confidential consultation with the Denver marital property division attorneys of Plog & Stein, P.C.

Whether your divorce is proceeding smoothly or becomes highly contested, we dedicate ourselves to your case so that you receive your rightful portion of marital assets. We can assist you with determining what counts as marital property, calculating how much you deserve to receive, and representing you through both negotiation and court. If you need help with other aspects of your divorce, such as child custody and child support, our lawyers can meet those needs as well. Our only goal is to protect your future as you move on to the next chapter of your life.

Frequently Asked Questions: Real Estate and Marital Property Division

Can the court give my house I owned before the marriage to my husband?

The answer to this question depends on titling. If the wife owning the home prior to marriage has not made the mistake of jointly titling the home in her husband’s name, the home should be considered separate property pursuant to C.R.S. 14-10-113, the statutory section dealing with allocation of property in a divorce.

As such, the court should not forcibly give the house to the husband in this scenario. However, this is not to say that the husband may not be entitled to some compensation related to the home. If the house in question has increased in value during the marriage, the general rule of thumb is that the increase is marital in nature. As such, the court can order the increase in equity during the marriage be split between the parties, which will generally be done equally.

Your Denver marital property division lawyer can assist you in assessing how your house will be dealt with by the court, regardless of titling. With the improved housing market over the last two to three years, real estate has returned to the status of something worth fighting for.

My husband owned his house prior to the marriage, what are my rights?

The first question the Denver marital property division attorneys at Plog & Stein, P.C. would ask is how long the parties have been married and whether the husband had titled the property in both names? Assuming the house remained titled solely in the husband’s name, the marital equity in the home would be any equity that accrued between the date of marriage and now. That portion of the equity in the home would be subject to division.Because the house was husband’s pre-marital property, the court could not award it to the wife or order it to be sold.

However, the court could certainly order that wife get her share of the marital equity, generally half, through other means. This could include orders indicating that husband must pay her a certain amount of money or orders giving her a greater share of other marital property to offset her share of the equity.

If the husband elected at some point during the marriage to put wife onto the title, there would be a strong argument that the house was a gift to the marriage and became wholly marital property. In that instance, wife would arguably be entitled to her share of all of the equity, not just that which accrued during the marriage.

How will the court deal with dividing my husband’s business?

As with other items of property in a divorce, businesses are also considered assets subject to division. Contrary to common belief, there is more to determining the value of a business than just calculating the assets and liabilities. Rather, in a divorce case, generally, businesses will be valued through the assistance of an expert, usually an accountant with training in business valuations.

Beyond looking at just the assets and debts of the business, the valuator will also analyze the income stream for purposes of arriving at additional value, generally related to “goodwill.” It is not uncommon for each side in a divorce case to have his or her own business valuator, though sometimes the parties initially use one joint expert. Of course, other rules applicable to the division of property in a divorce apply, such as whether part or all of the business was pre-marital.

Assuming there is marital value to the business, the court can either offset the other party’s share with other marital property, arrive at a figure owed by the party keeping the business in terms of what he or she needs to pay the other, or order the business sold. Parties to a divorce should keep in mind that the valuation is not just a simple balance sheet. Parties should also keep in mind that in this economy, our attorneys see once thriving business now heavily laden with debt and diminishing income streams. The Denver martial property division lawyers at can help you further analyze the ins-and-outs of your business assets and whether a valuation is needed or worthwhile in your divorce case.