Can’t find a simple answer on whether is colorado a community property state or not? Don’t worry, we got your back. In this blog, we’ll address all the questions you have about community property states.
So let’s begin!
1. Is Colorado a Community Property State?
According to Forbes, US follow the principle of Community Property States. Which means that the divorce law regulations applied in some states are slightly different than rest.
However, Colorado isn’t a part of these community property states. It follows an equitable distribution model for division of property between Spouses.
Meaning, the regulations followed in regard to divorce law are also different and property division between the couples are done on marital property parameters.
But what exactly does this mean? In short, equitable distribution means that each spouse walks away with a fair share of assets and debts. It doesn’t matter who owns what or who acquired what over the course of the marriage (except in some circumstances), because everything is viewed as marital property.
The process for dividing property is also broken down into three steps:
1. Identify all assets and debts
2. Value all assets
3. Divide assets and debts between spouses
Each step has its own sub-categories that are considered during this process, but these three alone simplify how things are done in Colorado divorce court.
It’s important to remember that equitable doesn’t always mean equal; Its all depending on the situation.
2. Factors That Influence An Even Sharing Of Stuff
Property division is a major part of divorce. It heavily impacts how much each person will keep. So in order to make it equal, the government put together a 3 step approach.
2.1.Contribution of Spouse
First and foremost, the court always considers the contributions made by each spouse.
Generally, the property acquired by a couple after marriage is considered to be marital; however, Colorado doesn’t follow this regulation.
2.2. Marital Debts
Apart from asserts, the court of law also equally distributes the marital debt of the couple. This approach ensures that the financial responsibilities are shared fairly between spouses.
2.3. Well being of Child
Last but not least, the government also considers the physical and mental wellbeing of the child. The process of Divorce is not for children to handle.
3. Frequently Asked Questions
3.1. Is Colorado a community property state?
No, Colorado is not a community property state. It is an equitable distribution state instead.
This means that all assets and debts are divided fairly between the spouses.
3.2. What’s the difference between community and equitable distribution states?
Community property states assume that all marital property is joint and owned 50-50 by both spouses, whereas equitable distribution states don’t make this assumption.
In an equitable distribution state, the court will just divide your marital property fairly — meaning it doesn’t have to be equal.
3.3. What’s the US government’s approach to dividing assets in a divorce?
The US government follows a three-step process for dividing assets in a divorce:
1- Identifying all assets and debts
2- Assessing the value of all assets
3- Dividing up all the assets and liabilities between you two
3.4 Does Colorado have equitable tax considerations?
Yes, Colorado follows this model for tax liabilities in a divorce as well! This means that it’s split equally between you two.
3.5 Why would anyone prefer an Equitable Distribution system over a Community one?
An equitable distribution system provides transparency during the property division process.
Opposed to community property states, where everything is considered marital and jointly owned, there isn’t an assumption of joint ownership with every asset.
Couples tend to prefer this approach because ,in simple terms, there are no assumptions made based on the nature of their relationship.
3.6. Getting Professional help
You might’ve gotten your answer but we strongly recommend seeking professional help with these matters.
They’re long and complex processes so don’t hesitate to seek legal advice!
We hope after reading this article, you have got the answer; whether Colorado is a community property state or not.
It’s not, it doesn’t follow the community property regulations that are followed in these kinds of states. Instead, the Colorado government follows an equitable distribution model for the division of property between spouses.
This approach considers many factors to ensure property division between spouses are just and equal.
Also, don’t forget to take legal professional help for more clarity.