Colorado is not a community property state for divorce. This means the court divides property and debts in an equitable fashion among both spouses. Property and debt distribution regulations also apply to debts acquired prior to the marriage. The court may require spouses to pay pre-marital debts depending on how the couple handled these debts over the life of the marriage.
Debts Tied to Assets
In Colorado, assets acquired before the marriage count as marital property in a divorce if those assets appreciate in value over the course of the marriage. These assets are subject to equitable division among the spouses. Division of any debts tied to these pre-marital assets is also necessary under Colorado law even if the debts stem from before the marriage. This property division is most commonly seen when appreciating real property like a home, investment property or place of business.
Unsecured Pre-Marital Debts
Unsecured pre-marital debts like credit cards usually remain the responsibility of the individual spouse. The court does not divide these debts in divorce as with pre-marital debts tied to assets. The court usually considers unsecured debts acquired before the marriage as separate property. This means a spouse doesn't have to fear a court ruling requiring her to pay a portion of debts which existed prior to her marriage. This rule does not apply to credit cards opened over the course of the marriage.
Division of Debt by Income
The equitable distribution of debt in a marriage does not mean the court divides debt equally among spouses. The court seeks to divide debt in accordance with how much each spouse can comfortably repay over time. The court also assigns a larger portion of debt to spouses who retain real property from the marriage like a home or automobile. Spouses not receiving property generally receive monetary compensation to offset the loss of assets. Spouses retaining property are responsible for paying spouses a monetary settlement as determined by the court.
Contesting Debt Distribution
It is the right of each spouse to contest the court's decision regarding equitable distribution of debt in divorce. A spouse who receives a ruling requiring him to pay a portion of his ex-spouse's pre-marital debts may appeal on the grounds that he received no benefit from these debts over the course of the marriage. He may even be able to pursue a judgment for compensation for any amount he paid towards these debts during the marriage. Alternatively, the court may rule that because the spouse paid on these debts during the marriage, the expectation of payment continues after divorce.
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