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Property division considerations in Colorado divorce proceedings

Many Denver, Colorado, residents have serious questions and concerns about their personal finances and future financial security as they begin the divorce process. Some people assume that they will be forced to split their assets 50-50 in property division, while others underestimate the kinds and amounts of marital property they may be entitled to. That is why it is so important for anyone facing the prospect of divorce to be acquainted with Colorado property division guidelines before entering into negotiations.

According to the American Bar Association Colorado is an equitable distribution state. That means that property division proceedings conducted by the court are handled in a way that is intended to be fair and equitable to both parties involved. Therefore, the valuation and distribution of marital assets may not necessarily result in an even division of property. The court can take several factors into consideration when determining the most appropriate way to distribute marital assets, such as the length of the marriage and the personal finances of each spouse.

About Relationships also explains that the equitable distribution of assets typically revolves around dividing marital property. Personal assets and investments accumulated prior to marriage are generally considered non-marital property, and are therefore exempt from property division proceedings. However, there are instances where non-marital property can become marital property. Personal inheritance money that is deposited into a joint savings account can be considered marital property, for example. Also, funds contributed to one spouse’s 401(k) plan during the course of the marriage are also typically subject to property division.

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