Understanding Property Division During a Divorce

There are numerous factors affecting asset division during a divorce, most of which depend on the type of property involved, such as real estate, retirement and pension plans, brokerage accounts, and businesses to name a few.

Firstly, it is crucial that both spouses have a thorough understanding of separate and marital property. Separate property includes: property owned by either spouse before the marriage; a gift received by either spouse or a third party (for example, a diamond necklace from your mother); and any inheritance received by the husband or wife (whether before or after the marriage).

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Keep in mind that commingling these assets with marital property will most likely nullify their separate-property classification. For example, if one deposits an inheritance money into a joint bank account with the spouse, it might be considered marital property by a judge. All other property acquired during marriage is considered marital property, regardless of which spouse owns the property or how the property is titled. Marital property also includes any increase in value of separate property, such as real estate.

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State laws vary greatly. It is important to consult with your divorce attorney. Keep in mind that the penalty for hiding assets is three times the value of the asset. Thus full disclosure is required.

For over 25 years, Marrison Family Law has been offering legal services to people going through the difficult process of divorce. The award-winning firm is based in Colorado Springs. Information on the firm’s legal team here.