What Is Equitable Distribution in a Colorado Divorce?

Under Section 14-10-113, C.R.S., Colorado courts have the authority to distribute property in dissolution of marriage, legal separation, and certain post-dissolution proceedings, including cases where a prior court lacked jurisdiction over an absent spouse. Additionally, Section 14-10-111, C.R.S., extends property rights provisions to decrees of invalidity of marriage. If jurisdictional requirements are met, Colorado courts can determine and distribute property in these proceedings.

At Hogan Omidi we want to help clients understand what is equitable distribution.

Understanding Equitable Distribution Law in Colorado

In some states, marital assets are divided equally in a divorce, regardless of personal circumstances. Colorado, however, takes a case-by-case approach. Courts focus on fairness—which doesn’t always mean an even split.

Before determining how assets should be divided, the court examines each spouse’s financial standing, contributions—both financial and non-financial—to the marriage, and future financial needs.

What Factors Are Considered in an Equitable Distribution?

Generally the property acquired by either or both spouses after marriage and before a divorce or legal separation decree is presumed to be marital property. This classification applies to assets and liabilities obtained in one spouse’s name during the marriage, regardless of the other spouse’s consent (McGuane & Hogan, 2009–2024).

To determine an equitable split of marital property, Colorado courts consider a number of variables. Among the most crucial ones are:

Contributions to the Marriage

Financial contributions are essential, but so are non-financial efforts. One spouse may have earned more, while the other focused on raising children, managing the household, or even supporting their partner’s career growth. When courts split assets, they weigh each part.

Separate Property Ownership

Premarital assets and inheritances that remain in the sole name of the original owner usually stay with the original owner, but the principle is subject to some unexpected twists. If that premarital property has increased in value during the marriage, the increase is marital. As well it loses its character as separate and becomes marital if it is blended with matrimonial assets.

Financial Standing of Each Spouse

During the divorce, courts evaluate each spouse’s finances. A person with minimal resources or low earning capacity may be allocated a greater share of the marital assets or a lesser share of the marital debt if that represents a way to achieve economic stability.

What Properties Can Be Divided During Equitable Distribution?

Not everything a couple owns is subject to division. Only marital property, or assets and debts acquired during the marriage, will be divided.

Marital Property:

• Property bought after marriage
• Joint savings and bank accounts
• Vehicles bought during marriage
• Pensions, investments, and retirement funds obtained while married
• Mortgages and credit card debt accrued during the marriage

Separate Property:

• Property owned before marriage (not mixed with marital assets)
• Individual inheritances or gifts not commingled with marital investments or accounts
• Some types of legal settlements for one spouse such as compensation for future lost wages for time periods after divorce

If separate property increases in value during the marriage or is mixed with marital assets, it may no longer be considered entirely separate and could be subject to division. However, the fact that a person’s separate property has become marital may be a factor that justifies allocating a greater share to the person who’s separate property has become marital.

How the Court Divide Properties in Colorado

According to C.R.S. § 14-10-113, Colorado abides by rules about equitable property allocation. These steps are commonly included in the process:

Identifying Marital vs. Separate Property

All marital property is valued at fair market value as of the time of the divorce using financial documents, appraisals, and expert opinions.

Valuing the Assets

Examining financial records, assessments, and expert opinions is a common way to determine the current market value of married property. The relevant value is that which exists at the time of the divorce – not prior values or predictions of future values.

Dividing Property Based on Fairness

Instead of a simple 50/50 split, courts assess what is fair by considering each spouse’s financial situation, earning potential, and overall contributions to the marriage.

The court has broad discretion in determining how to divide marital property, ensuring that both spouses can move forward with financial stability.

Why Hiring a Divorce Attorney Matters

Property division in a divorce can become contentious, especially when substantial assets or debts are involved. Without legal guidance, you may risk receiving less than your fair share or taking on more debt than necessary. You may also overlook or be unaware of the tax consequences associated with various possible property division approaches.

A knowledgeable Denver divorce lawyer can assist by:

• Protecting your possessions and dividing them fairly
• Finding hidden or undervalued assets
• Assisting in settlement negotiations without litigation
• Promoting your financial interests in conflicts

Even if you and your spouse agree on most terms, having an attorney review your agreement can help you avoid costly mistakes or unforeseen financial obligations.

Get Help from an Experienced Colorado Divorce Attorney

Dividing assets in a divorce can feel overwhelming, but you don’t have to go through it alone. Understanding what an equitable distribution is and how it applies to your case is essential to protecting your financial future. Whether you’re navigating complex finances or simply seeking clarity on your legal rights, Hogan Omidi is here to provide the guidance you need.

Contact us today at 303-391-9600 to schedule a consultation.