What Assets Are Up for Grabs?
When a couple files for divorce in Colorado, one of the steps they should be prepared for is asset division. This important part of the process means that assets are divided in an equitable manner between the two spouses. What they may not know, however, is that not all assets are up for grabs in a divorce. Read on to learn the differences between marital and separate property in a divorce.
The Difference Between Marital and Separate Property
In Colorado, marital property and separate property are two very important concepts to understand. The main difference between the two is that marital property is owned by both spouses, while separate property is only owned by one spouse. Marital property includes all assets and liabilities acquired during the marriage, while separate property consists of anything that was acquired before or outside of the marriage. Separate property also includes assets gifted to or inherited by one spouse.
The division of marital property is typically handled in a divorce settlement, while the division of separate property is not.
While separate property is usually excluded from asset division, there are instances when separate property can be considered marital property and can be divided in a divorce. For example, if separate funds are commingled with marital funds in a joint bank account, those funds could be considered marital property and may be divided. In addition, if separate property is used to support the marital lifestyle or to maintain the marital home, that property may be considered marital property. Additionally, if there has been an increase in value of the separate property during the marriage, that increase in value is subject to division. Finally, if separate property is transferred to the other spouse in order to avoid asset division in a divorce, that transfer can be considered a fraudulent conveyance and can be overturned by the court.
Protect Your Rights
In order to protect your best interests in a divorce, you should work with an attorney who can help you navigate the intricacies of property division in a divorce. At Law Office of Greg Quimby, P.C., our team is equipped to defend your rights to property and to provide you with representation that works to meet your needs.
Learn more about asset division in Colorado or schedule a consultation with a member of our team by calling us at (719) 212-4227 or by visiting us online.