While many disputes in divorce revolve around fairly dividing assets, the division of debts can be just as impactful, if not more so, than that of property. Being stuck to debt you accumulated during your marriage can be disheartening, and you may be unable to manage debt payments on your own. Understanding how debt is divided in a divorce in Colorado can be important for you to negotiate a fair divorce settlement. Our experienced divorce lawyers can walk you through your options.
Marital Debt Vs. Separate Debt
During divorce, one of the first steps in the property division process is to identify which property is marital and which is separate. The same principles apply to debt. Generally, separate debt refers to the following type of debt:
- Debt that was incurred before the marriage or after a couple officially separated
- Student loan debt
- Debt acquired for inappropriate purposes, such as gambling debts or debts incurred to advance an extramarital affair
Equitable Distribution in Colorado
Colorado is an equitable distribution state, so when a married couple gets divorced, the courts try to divide their property and debt in a fair and equitable manner. This does not necessarily mean 50/50. Courts consider various factors to determine what is fair, including:
- Proposals regarding the division of marital property
- The amount of spousal and child support either spouse has been ordered to pay
- The duration of the marriage
- Each spouse’s financial standing
Couples are free to work out divorce agreements that set out the terms regarding how their assets and debts will be divided. Debt division can have long-term implications for your financial situation, so it’s best to talk to a local and trusted family lawyer who can advise you of your legal rights and options and negotiate for a fair outcome for your case.
Legal Effects of Agreements Regarding Marital Debt
Colorado divorce courts encourage couples to work out agreements that provide the specific terms that work best for their particular situation. For these agreements to be legally enforceable, they must be incorporated into an official court order. If your spouse fails to abide by the terms of the agreement, such as failing to pay a credit card account the court ordered them to pay, they can be held in contempt of court if you file an enforcement action against them.
It’s important to note that Colorado family courts do not generally have jurisdiction over creditors. Instead, the terms of the agreement with the debtor dictates the rights and responsibilities of the parties. This means that even if your spouse is ordered to pay off a debt account, the debtor could still pursue you for collection.
Contact Us Today to Speak to an Experienced Colorado Divorce Lawyers for Help
If you are concerned about how your debt will be divided during divorce, an experienced family law attorney from Stahly Miner LLC can help. Our knowledgeable attorneys understand marital property division and debt laws and can use our knowledge to advocate for a fair outcome for your case.
Contact us today to learn more about your legal rights and options. You can arrange a confidential, no-obligation consultation by calling (303) 797-2900.