If you’re getting divorced, you’re probably wondering how it will affect your assets and your debts. Our Colorado Springs divorce attorneys explain how your assets and debts are divided during a divorce. If you have any questions or you need guidance during your divorce, our legal team is here to help you achieve your desired outcome.
What Are the Colorado Divorce Laws for Asset Division?
Colorado law requires a division of assets and debt that is fair, but that doesn’t necessarily mean that it will be divided equally. In some cases, couples can come up with an asset division agreement by negotiating through mediation. However, if couples can’t come up with an agreement, they will end up going to court to have the judge divide the assets and debts fairly.
A judge will consider the following when determining how to divide assets and debt in a divorce:
- The income and economic status of each spouse
- If there was a change in the value of a spouse’s separate property during the marriage.
- If there was any depletion of a spouse’s separate property for marital purposes
- How the division of property will affect the parents with physical custody of a child
Assessing Asset Value
Once the court determines which property is marital property and which is separate property, the court will assign value to each item. There will be some items that will be difficult to determine the value for. While the value of assets is assessed, it’s best to have an experienced attorney on your side who will guide you through the process and explain any misunderstandings you might have. It is also best to have an attorney and a professional appraiser verify the value of your assets to make sure that they are being divided fairly.
How Are Debts Divided in a Divorce?
In the state of Colorado, the debt acquired during a marriage is also considered marital property. For that reason, debt is also fairly divided between spouses during a divorce, just like the assets. Examples of marital debt include car loans, credit card debt, and mortgage. Regardless of whose name the deed or card is under, the debt is shared. Dividing debt during a divorce is complex because it’s difficult to figure out a way to divide the debt evenly.
If there are unfair debts in the marriage, you have to present your case to the court. Some examples of unfair debts include:
- Your spouse was spending recklessly
- The debt was incurred before marriage
- Your spouse acquired student loan debt before the marriage
Division of Retirement Accounts
Retirement benefits acquired during a marriage are also considered marital assets. For that reason, they will also need to be divided with the rest fo the marital estate. However, the division of retirement assets is a little more complicated to divide compared to traditional assets because of tax considerations.
Call Our Colorado Springs Property Division Attorneys!
If your assets must be disclosed or you believe that the other party is hiding assets, you need a legal team on your side. Drexler Law has over 115 years of combined experience helping families with their legal issues. We know that divorce and property division is a frustrating process. That’s why we are always ready to answer our clients’ questions and help them obtain the desired outcome in their case. Our legal team has extensive knowledge and experience in property division during divorce, so we are equipped to defend your rights and help you from beginning to end.
Need legal assistance during your divorce, contact our Colorado Springs property division attorneys today at (719) 259-0050 for a consultation!