Colorado is an “equitable division” state. This means that marital property and debt are divided equitably. In dividing marital property and debt in an equitable fashion, the court is not bound to divide property and debt equally or 50-50 between the parties. The term “equitable” is a rather vague term and therefore judges have great discretion to divide property. It is, therefore, important that you retain competent counsel to properly advise the court of the various factors it will consider in fashioning an equitable division. The attorneys at Antolinez Miller, LLC have vast knowledge and experience in accounting, complex asset valuation, tax issues, and other financial matters to guide you through this often complicated process.

Prior to dividing property and debt, the court is first charged with the duty to characterize whether the various assets and debt are “marital property” or “separate property.” Distinguishing marital property from separate property can be a complicated process.

Marital property, with a few exceptions, is defined as any property which either spouse acquires during the marriage or in contemplation of the marriage, except for property acquired by gift or inheritance, or property excluded by a valid agreement of the parties. Marital property also includes the increase in value of any item of separate property that occurs during a marriage. The manner in which the property is titled does not determine whether property is marital or separate property.

For the most part, separate property is defined as property that is acquired prior to the marriage, property that was acquired during a marriage by gift or inheritance, property excluded from the definition of marital property by a valid agreement between the parties, and property acquired during a marriage in exchange for other separate property. The character of separate property can be lost if it is commingled with other marital property.

Once a court characterizes property and debt as being either marital or separate, the court is then required to equitably divide the martial property between the parties. In fashioning an equitable division of marital property, the court considers numerous factors including, but not limited to:

• The contribution of each spouse to the acquisition of the marital property, including the contribution of a spouse as homemaker;

• The value of the property set apart to each spouse;

• The economic circumstances of each spouse at the time the division of property is to become effective, including the desirability of awarding the family home or the right to live therein for reasonable periods to the spouse with whom any children reside the majority of the time; and

• Any increases or decreases in the value of the separate property of the spouse during the marriage or the depletion of the separate property for marital purposes.

In complex property division cases, the valuation of property can perhaps be one of the most complicated and litigated issues. Both marital and separate property usually need to be valued in a dissolution case so the court can be properly informed of the economic circumstances of the parties. If the parties are unable to agree upon valuations, the court would often require the parties to hire experts to value property. The assets that are required to be valued include, but are not limited to: real property, the marital home, business property, time shares, farm land, businesses, professional practices, livestock, retirement pensions and 401k plans, stock options, trust interests, inherited assets, art and antiques, vehicles, wine, sports memorabilia or other collectibles, and debt. Choosing the right expert to value a particular asset is often critical to the ultimate outcome of your case. The attorneys at Antolinez Miller, LLC have the experience and know how to select the best valuation experts for your particular case. Please call today for a free consultation.