It is easy to rack up debt in a marriage. Between getting new cars, buying a house, finishing off student loans and credit card habits you might end up with a lot of debt when you file for divorce. The last thing you want is to walk away from a divorce paying for a spouse's bad choices. It is important to understand Colorado laws and how you can avoid getting crushed by unfair debts.
In Colorado, Courts will divide and transfer marital property between spouses equitably in a divorce proceeding, see /blog/2016/10/marital-property-division-in-colorado.shtml. Prior to the mid-1980's, Colorado along with many states applied the title rule, which was that whomever had title to property would receive that property upon a separation. As a result, trust assets were generally not included in the division of marital property. In the interest of avoiding unfair property distributions, Colorado has expanded the pool of assets Courts must divide to include all assets, regardless of title.
In Colorado, marital property is divided without regard to misconduct or fault. The Court does not necessarily divide property evenly, or 50/50. Colorado Courts consider "all relevant factors" in making the decision of how to divide marital property. The Courts attempt to make divisions based on what is fair for both parties.
Dividing up marital assets is one of the many aspects of a divorce. In an equitable property state, such as Colorado, marital assets get divided according to what the court deems as fair, depending on the couple's personal and financial circumstances. In an effort to keep as many assets as possible, some people resort to hiding assets from their spouse.
Prenuptial agreements are common in Colorado and elsewhere because they can take a lot of the guesswork out of divorce. They can address numerous issues, including who should get which property and how much spousal maintenance should be paid, if any.
Divorce is one of the most stressful life events most people will ever go through. Unfortunately, some folks make the mistake of letting these heighted emotions cloud their judgment.
Tax season is now around a month behind us. Many people are likely happy to be out of this sometimes stressful season. However, it is important to remember that tax season is not the only time it can be very important to think about tax matters.
Many things can change for a person here in Colorado as a result of getting a divorce. One is what their investment portfolio looks like. This is because investments are among the assets that are sometimes marital assets and thus are sometimes subject to being split up between the divorcing spouses in the divorce asset division.