Even if you already have a full agreement with your spouse (amazing but not likely at this point), this step is mandatory. In this step, you and your spouse should truthfully represent your complete financial picture so that it can be fairly divided. This complete financial picture must include income, expenses, assets and debts.
Welcome to Step 2!
You and your spouse must complete your financial disclosures within 42 days of filing the Petition (Joint) or serving it (Single).
Why do I have to disclose my financials?
How long do I have to complete the financial disclosures?
In Colorado, you generally have 42 days from service of the Petition to complete your financial disclosures.
Is Colorado a community property state?
No. Colorado is an equitable distribution state, which means that most property acquired during the marriage is considered the property of both parties. Property acquired before your marriage, or during the marriage by gift or inheritance, may be considered separate property. Equitable division allows the court (or the spouses) to divide marital property in such a way that is equitable – or fair – but not necessarily 50/50. For instance, one spouse may receive less in spousal support in exchange for a larger share of the marital property.
What property is divided through equitable distribution?
Most property (and debts) acquired during the marriage would be divided through equitable distribution. This might be the family house, vehicles, vacation properties, bank accounts, and personal family possessions like art, musical instruments, or collectables. Separate property is generally all property you acquired before or after marriage, or during the marriage from an outside source (like an inheritance).
What's considered separate property?
Typically in Colorado, separate property includes property that was owned or claimed before your marriage and certain types of property acquired during the marriage such as gifts and inheritance, monetary payments for personal injuries (except recovery for that person’s loss of earning capacity), or property gifted from either spouse to the other.
What happens if I don't disclose some of my assets now?
If you don’t disclose everything on your forms, you run the risk of either missing something that later has to be addressed post-divorce (and you don’t want to have to do this again, right?). Or, you might be accused of “breach of spousal fiduciary duty” (failing to be fully transparent with finances) later in the process.
What happens if my financial situation changes before my divorce is finalized?
You have an ongoing duty of disclosure about activities that materially change your assets, liability, or income. If something changes significantly (for example, your car was in an accident or your investment portfolio drops or skyrockets in value), you must notify your spouse in writing.
What will I need to disclose?
Financial disclosures are forms that require you to share all information related to your property, debt, income, and expenses. Some states require you to attach proof (like tax returns and bank statements). Include everything that you know about and control (plus anything you know about your spouse’s estate, too).
What tax documents will I need to share with my spouse with my financial disclosures?
You’ll need tax documents from the last three years. These would be any W-2, 1099, or K-1 forms you have stating your income.
What information will I need to provide about insurance policies?
You will need to list company names, account numbers, type of insurance, and attach insurance declaration pages and premium invoices (if you have them).
What if I don’t have all the information needed?
You can always save your information and come back once you have the information needed to continue the questionnaire. However, you won’t be able to continue the questionnaire without providing the information needed to move forward. But you will have an opportunity to review your answers at the end before your forms are generated.
This all seems complicated. Do I really need to list all my expenses and assets?
Yes! It is important that you accurately complete your financial disclosures to reflect your current financial position. This includes your income, your expenses, your debts and your assets – even if you and your spouse have already divided everything.
I’m not sure what to put down on my financial statement. Can Hello Divorce tell me how to complete Step 2?
Yes! If you need help completing your financial disclosures, one of our legal coaches can assist you with any questions you may have. You can get a legal coaching session in increments of as little as 30 minutes here. You may also choose to review our tips and tricks for completing your financial disclosures.
I got a notice about something called a 'Status Conference.' What is that all about?
The Initial Status Conference (ISC) is just a way for the court to assess where each party is and what you agree upon. It’s informal, not a hearing, there’s no evidence or testimony required, and you don’t need a lawyer.
Every Colorado court is required to schedule a status conference to occur within 42 days after the petition is filed. If you are the spouse being served (Respondent), it is in your best interest to call the court clerk to determine the date of your first hearing immediately. If you are the Petitioner, the person who initiated the case, you will likely be informed of the date of the ISC upon filing the documents that initiate the case.