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Dividing assets in a divorce can be complicated, and it’s natural to feel overwhelmed. How to split assets in a divorce is one of the biggest concerns for those going through the process. In Colorado, property division follows legal guidelines, but every situation is different. The process involves assessing financial records, determining property values, and negotiating a fair distribution. At Hogan Omidi, we work closely with clients, helping them understand their options and secure their financial future.
How is Property Divided in Colorado?
Colorado follows equitable distribution, meaning assets are divided fairly, not necessarily equally. Under Section 14-10-113, C.R.S., judges have discretion in deciding how property is split. While a 50/50 division is common, the law does not require it (McGuane & Hogan, 2009–2024). Instead, courts evaluate factors like each spouse’s financial standing, contributions to the marriage, and long-term needs. However, it is important to understand at the outset that what feels “fair” to one party is often very different from what the other party believes would be fair. Most divorcing parties benefit from the guidance of an experienced lawyer to help them identify what might be fair from a legal standpoint, as opposed to an emotional standpoint.
Colorado law establishes the framework for dividing property. Courts assess all existing assets and debts acquired during the marriage, regardless of whose name is on them. However, separate property—such as assets owned before the marriage or received as a gift or inheritance—typically stays with the original owner.
Judges also consider whether one spouse put their career on hold for the family or if there is a significant income gap. Financial misconduct, such as reckless spending in anticipation of a divorce or hiding assets, may also impact decisions. In complex cases, financial experts may be needed to determine asset values and ensure a fair division. Additionally, some divorcing couples choose mediation instead of litigation to reach an agreement without court intervention.
How Are Assets Classified?
Assets in a divorce are generally classified as either marital or separate property. Understanding this distinction helps determine what each spouse is entitled to.
Marital property includes most assets acquired during the marriage, such as wages, homes, and retirement accounts. The fact that an asset is only in one spouse’s name does not drive the determination of whether it is marital or separate (McGuane & Hogan, 2009–2024).
Separate property includes gifts, inheritances, or other assets acquired before the marriage. Some assets are also considered separate if they were obtained in exchange for pre-marital assets or were excluded in a prenuptial or postnuptial agreement. However, if separate property is combined with marital assets—such as using inherited money to pay part of the cost for a shared home that has also been funded with marital income —it may become subject to division. Separate property that has increased in value during the marriage may also factor into division, as the increased value during the marriage will be marital.
Examples of Assets That Can Lead to Disputes
Some assets are straightforward to divide, while others often lead to disputes. Real estate, particularly the family home, is a common source of disagreement. In some cases, one spouse may want to keep the home while the other prefers to sell and split the proceeds.
Retirement accounts and pensions require careful handling, as splitting them involves specific legal steps. Businesses and professional practices can be especially complex, as courts must determine their value and each spouse’s share. Investments, stock options, and intellectual property, like royalties or patents, can also complicate negotiations. Additionally, debts and liabilities, including mortgages and loans, must be fairly distributed. Even personal belongings, sentimental items, and family heirlooms can lead to emotional disputes that require careful resolution.
Family pets can also become a major point of contention. While pets are considered property under the law, many couples see them as family members. Deciding who gets custody of a pet can be a highly emotional issue requiring careful negotiation.
Factors Considered to Split Assets in a Divorce
Courts consider several factors when determining a fair property division. Each spouse’s financial situation, including earning potential and long-term stability, plays a major role. Judges also look at non-financial contributions made during the marriage, such as one spouse staying home to care for children.
The length of the marriage influences division as well—longer marriages often involve more intertwined assets. Tax consequences, prenuptial agreements, and custody arrangements can also affect how assets are divided.
Additionally, emotional and psychological factors can impact asset division, particularly when children are involved. Some spouses may attempt to use financial negotiations as leverage in custody disputes. Understanding these factors helps individuals prepare for negotiations, whether in mediation or court proceedings.
Do You Need Help from a Property Division Lawyer in Colorado?
Dividing assets in a divorce can be challenging, and having the right legal guidance is essential. At Hogan Omidi, we help clients navigate property division, ensuring they receive a fair outcome. Whether your case involves high-value assets, business ownership, or financial disputes, our attorneys are here to provide the guidance you need. Contact us today to schedule a consultation.
HOGAN OMIDI, PC
COLORADO FAMILY LAW ATTORNEYS
At Hogan Omidi, PC, we take a deliberate approach that emphasizes civility and practical solutions over conflict and gamesmanship. We help clients think “big picture” and long term to identify what is truly important. Once you view the situation with proper perspective and clear priorities, the process becomes less stressful and more conducive to creative and sensible resolutions.”
