When going into a divorce, many people believe that marital property will simply be divided in half between the two spouses. While a 50-50 division of property may be fair in some situations, that is not always the case. They key word here is "fair."
Colorado is one of 39 equitable distribution states, as opposed to a community property state where a 50-50 division of assets may be mandated by law. Here, marital property is to be divided in a fair and equitable manner. That does not necessarily mean 50-50.
What Factors Influence Division Of Property?
If division of marital property is not set at an even 50-50, how is it divided? The answer can vary depending on the situation. Perhaps it is more fair for one spouse to get 55 percent of the property, or even 60 percent.
One of the main factors that influence division of property is the individual economic circumstances of each spouse. What is each spouse's income and earning capacity? If one spouse has a solid income, while the other is just entering the workforce after staying home to raise the children, that could lead to an uneven, but fair, split.
Separate property is also taken into consideration. Property owned prior to the marriage, for example, is separate property and not subject to division. However, it might influence the division of marital property. If one spouse has substantial separate property and the other does not, a 50-50 division of marital property may not make sense.
When it comes to achieving a fair property division, it is important to carefully analyze all factors before reaching an agreement or before taking the case in front of a judge.