Preparation - The Definition of Marital Property Under Colorado Law

THE DEFINITION OF MARITAL PROPERTY UNDER COLORADO LAW

There are many steps spouses must go through while getting a divorce. This can often be confusing and frustrating, particularly when it involves separating assets and debts. In Colorado, all property must first be classified before the court can divide it. “Marital” and “separate” are the two types of property. “Marital” property is owned by both parties and is subject to division. “Separate” property is typically owned only by one spouse and is not subject to division.

Colorado Revised Statute 14-10-113 regulates the division of marital property in a divorce. Marital property is defined as any property which either spouse acquires during their marriage, except for property acquired by gift, inheritance or property excluded by a prenuptial agreement. Contrary to popular belief, the manner in which the property is titled is not conclusive.

Thus, for any property obtained during the marriage, where one spouse has sole title, the property may still be deemed marital and divided between the parties. This often includes bank accounts, retirement accounts, pensions, club memberships, frequent flyer miles, stock options for past services, and any tangible property such as automobiles.

Additionally, any property that may have been acquired prior to the marriage, but has increased in value during the marriage, is considered to be marital and is subject to division. A typical example is if one spouse bought a house and then married. Since the value of the house will most likely increase while the parties are married, the increase in value of the house (only) becomes marital property.

Furthermore, debts incurred by either spouse while married, may also be subject to division. Examples include student loans that were incurred during the marriage or any types of credit cards either spouse may have applied for. Moreover, debts are often associated with an asset, and the court will often assign these debts to the spouse who retains the asset.

If the property is deemed marital in Colorado, the property is then divided between the parties equitably. This is called “equitable division”. Colorado is an “equitable division” state. This essentially means that the courts have considerable leeway in deciding how to divide marital property. The courts look at four factors when dividing marital property:

1. The contributions of each spouse;
2. The value of property set apart to each spouse;
3. The economic circumstances of each spouse; and
4. Any increase, decrease or depletion in the value of any separate property during the marriage.

Subsequent to considering these four factors, the courts divide marital property equitably between the parties. Marital property does not need to be divided equally, but only needs to be divided equitably. The purpose of dividing marital property is to allocate to each spouse what equitably belongs to him or her.

Each individual case can be different due to the complexity of the property obtained during the marriage and the economic circumstances of each spouse. You may wish to obtain legal advice, given the complexity of your individual situation.

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