Denver Divorce Attorneys
Tracing Assets: Proving Separate Property in a Denver Divorce
The financial ramifications of a divorce cannot be understated. This multiplies exponentially with high asset divorce cases. Aside from potential child support or alimony agreements, most divorce cases in Colorado require spouses to divide the marital assets and debts before the divorce can be finalized. In some instances, this may require proving or tracing separate property–a difficult task that comes with a potential for dispute at several points.
At Litvak, Litvak, Mehrtens and Carlton, our family law attorneys understand that clients have major concerns when it comes to property division. From the initial consultation, we take special care to explore options early in the process, for negotiations, mediation or even litigation. We work to make sure our clients understand their rights, that they have the resources, insight and experienced representation necessary to protect their interests. This especially holds true in matters concerning money, property characterization and asset tracing.
Property Division During Divorce in Colorado
Colorado isn’t a “community property” state. It is an “equitable division” state. And, in Colorado, under C.R.S. 14-10-13(1), the court’s division of your marital property doesn’t need to be exactly equal–just fair.
In most cases, this will result in an equal division of the marital estate. Spouses will have their work cut out when it comes to dividing property during a divorce, especially if their case involves high net worth or complex assets. The more complex the assets are, the more steps will be involved to fairly separate property and complex assets during a divorce.
Denver Divorce Lawyer for Marital Property Division
A critical step in the marital property division process is protecting non-marital property to ensure it’s clearly identified and separated from any marital property.
You and your spouse may disagree about who should receive certain parts of your marital property. This can include the following points of contention:
- Your spouse claiming your rightful assets are his or hers
- A business which you jointly claim as co-owners
- Real estate disputes
- Stocks, bonds and retirement accounts
Like we’ve mentioned, dividing marital property can entail complex financial affairs that require significant amounts of evidence, along with the representation of an experienced divorce attorney to argue your case.
Tracing Assets During a Divorce
Just like the name implies, this involves tracing back assets through various transactions, development of assets and liabilities, and other issues to determine when an asset was acquired and how the asset may have become mutated or commingled with the other assets in the marriage. Lawyers can use tracing to some degree in a range of property division aspects, but it can become even more important in certain cases, including:
- Establishing evidence to prove claims and the separate character of a particular asset acquired before or during marriage
- Supporting a claim for reimbursement
- Defeating a claim for reimbursement
- Addressing complicated issues of commingling
- Relocating assets that are being hidden
- Untangling complex financial holdings, investments and other transactions in high net worth or complicated divorce cases
Tracing can be an extremely complex task–one that requires extensive and varied experience with not only different assets and types of accounts, but also resources, technology and in some cases, professional experts who can testify about a particular asset, transaction or documentation.
Tracing Hidden Assets
In reality, not everyone will follow court orders. This certainly applies to marital property in Colorado. If this happens, we can pursue various remedies, including:
- Asset seizure,
- Contempt of court,
- Garnishments, and/or
- Judgements.
Sometimes, questions arise regarding hidden or depleted assets. This can make it necessary to engage a forensic accountant to trace assets or cash flow.
For cases where one spouse does not disclose all assets, the state of Colorado allows a court continued jurisdiction over the division of non-disclosed marital property for up to 5 years. If you believe your spouse hid assets during the divorce, we can also help with that, after the fact.
Divorce Attorney Equipped to Represent High Net Worth Cases
The financial niceties surrounding marital property and assets division become more complex in high-asset divorce cases. In addition to the typical analysis required in a standard property separation, a divorce involving a large array of high-value assets can present other challenges related to present valuation, potential income, division method, and future valuations. Although the principles for assessing your marital property in a simpler divorce do apply, with high-value assets on the line, you’ll want someone with a keen understanding of future ramifications of receiving or parting with certain assets.
When negotiating a marital property settlement, you’ll need an experienced attorney to ensure there’s clarity in each term, as these settlements are generally not modifiable. You’ll also want an attorney who understands that the liquidity of assets does matter, especially when clients are facing uncertain income changes due to his or her divorce.
For Help Dividing and Tracing Assets During Your Divorce, Call Litvak Litvak Mehrtens and Carlton
At Litvak, Litvak, Mehrtens, and Carlton, our team of marital property division attorneys has the experience needed for handing high net-worth divorces. Using our knowledge, resources, and experience, we formulate a plan to put you in the best financial position possible. We have successfully helped high-net-worth clients seek desired outcomes during the marital property division process in Colorado.
Regardless if your divorce is a smooth procedure or becomes highly contested, we’re dedicated to pursuing your rightful portion of marital property. We can help you determine what is marital property, help you calculate how much you deserve, and will represent you through your negotiation and/or court. We offer representation for other aspects of divorce, such as child custody and child support, as well. At Litvak Litvak Mehrtens and Carlton, we want to protect your future and help you move on to the next chapter of your journey!