Some married couples in Colorado believe when it comes to property, "What's yours is mine, and what's mine is yours." However, if a couple decides to divorce, determining who gets what can be challenging and contentious. For the division of assets to be fair, it is important to first understand the difference between marital property and separate property.
In general, any assets that either spouse obtains while married are presumed to be marital property. This is true no matter which party's name is on the title to the property. Marital property will be equitably divided between the spouses, even if it doesn't result in an exact 50/50 split.
However, there are certain assets that will not be considered marital, even if the property is obtained while the couple is married. These assets are considered separate property and will not be subject to property division in a divorce.
One type of separate property is inheritances. Assets owned solely by one spouse before the marriage are also considered separate assets. Property obtained after the parties have legally separated will be considered separate property. Finally, if the couple executed a valid prenuptial agreement and earmarked certain assets as separate property, this document will be honored.
Determining which assets are marital and which are separate may seem straightforward. However, it can be quite challenging, especially if separate assets have commingled with marital assets. Because every marriage and divorce is unique, the information in this post cannot serve as legal advice. Couples with questions about property division are encouraged to seek professional guidance to better understand this issue.