What Goes Into a Colorado Separation Agreement

A separation agreement typically covers a lot more than simply figuring out who keeps what.

It puts the terms that the spouses have agreed on into writing, including how property and debts will be allocated and whether one spouse will pay the other maintenance.

When children are involved, parenting time, decision-making, child support, and other parenting terms are addressed separately through a Parenting Plan rather than the Separation Agreement. 

So, what actually goes into a Colorado separation agreement? Here are some of the most common pieces that get worked through.

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First, a Separation Agreement Isn't the Same as a Legal Separation

The terminology can be a little confusing.

A separation agreement is a written agreement between spouses about the terms of their separation or divorce. A legal separation, on the other hand, can be sought through a court case that addresses many of the same issues as a divorce without legally ending the marriage.

That means a separation agreement can be part of either a divorce or a legal separation.

The exact terms will look different for every couple, but the overall goal is to clearly document what has been decided and how those decisions will be carried out.

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Dividing Property and Assets

One of the biggest parts of the process is usually deciding how property will be divided.

Here’s what those items usually are:

• A home or other real estate
• Cars, boats, RVs, or other vehicles
• Bank and savings accounts
• Investments
• Retirement accounts
• Business interests
• Furniture and household appliances
• Artwork and other valuables
• Sentimental items

Simply stating who receives an asset is generally insufficient for the Court to approve an agreement.

For example, if one spouse is keeping the home, there may also be details to be addressed regarding the mortgage, refinancing, ownership, insurance, and when associated legal documents need to be signed.

If the property will be sold instead, the terms of the separation agreement may need to address who is responsible for expenses in the meantime and how the proceeds will eventually be divided.

Those smaller details can be just as important as the larger decision itself.

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What Happens With Debts?

Assets are only one side of the financial picture. The spouses also need to account for outstanding debts.

Outstanding debts include credit cards, loans, tax debt, vehicle loans, a mortgage, and other financial obligations.

The terms of the separation agreement should generally spell out who will be responsible for each debt and whether any joint accounts or loans need to be paid off, transferred, or refinanced.

This is an area where the wording matters. A decision between spouses about who will pay a debt does not necessarily change the original contract with a lender, so there may be additional steps involved when a loan or account is still held jointly.

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Bank Accounts, Investments, and Retirement

Financial accounts often require a more detailed approach. For checking and savings accounts, the parties will need to assess whether funds have already been divided or when a transfer will take place.

Investments and retirement accounts require another layer of detail because there may be specific procedures required to divide or transfer certain funds.

The terms of the separation agreement should address not only who receives what, but also how and when the transfer will actually happen.

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Spousal Maintenance

Another question is whether spousal maintenance (or spousal support) will be part of the arrangement.

Depending on the circumstances, the spouses may agree that no maintenance will be paid. In other cases, the terms address an amount, payment schedule, start and end dates, and other details.

Because this can have a significant long-term financial impact on the parties, it is often one of the areas where attorneys and financial professionals become more involved in the discussion.

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Taxes and Other Financial Details

Taxes can easily get overlooked while attention is focused on larger assets, but they may still need to be addressed.

For example, parties often need to account for how certain tax years will be filed, what happens with a refund, or how a tax balance will be handled.

There may also be other financial details that don't fit neatly into one category, which is why it helps to think beyond the major assets and look at how the overall arrangement will work in practice.

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What About Parenting and Child Support?

When children are involved, those decisions are handled separately through a Parenting Plan, rather than the Separation Agreement.

The Parenting Plan generally addresses things like parenting time, decision-making responsibilities, holidays and travel, as well as child support and other terms related to the children.

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What Happens After the Terms Are Finalized

Reaching a final agreement is not the final step in the divorce process. 

If a vehicle needs to be transferred, someone still has to sign over the title. If one spouse is taking ownership of a home, there may be refinancing or other paperwork to complete. An account may need to be closed, funds transferred, or insurance information updated.

For that reason, the Separation Agreement may also need to clearly spell out who is responsible for those next steps and when they need to be completed. 

Instead of simply saying, “Spouse A keeps the house,” the terms should generally also account for what happens next, who is responsible for it, and when it needs to happen.

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What if You Agree on Some Things but Not Everything?

It’s very common for spouses to agree on certain parts of the separation while still having a few areas that are harder to resolve.

Spouses may already know how they want to divide most property but still be stuck on the house. Or perhaps the financial side is largely settled, while one or two other terms are holding things up.

That doesn’t mean everything already settled needs to be revisited.

Instead, the remaining conversations can focus on the specific points that are still unresolved.

Mediation can provide a structured setting for those discussions, giving both sides an opportunity to work through the remaining terms with the help of a neutral third party.

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Clarity Matters Just as Much as Reaching an Agreement

While getting to “yes” is important, the terms also need to be clear enough that everyone understands what happens in the future such that these agreements can actually be fulfilled in the long term.

Thinking through questions like who is responsible, how much, by what date, and what happens next makes a big difference when an agreement is actually put into practice.

There are often several moving pieces, so taking the time to work through the details can help create a more complete picture before signing. 

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Before Everything Is Finalized 

A Colorado separation agreement can touch nearly every financial part of ending a marriage, and some of the smallest details can become important later on. 

Every family will have a different set of issues to work through, and sometimes only a few remaining details stand between the parties and a full resolution.

If there are still terms that need to be worked through, Judge Rayna Gokli (Ret.) provides domestic relations mediation through Gokli Dispute Resolution.

Have questions about an upcoming matter? Contact Gokli Dispute Resolution or view the calendar to schedule a mediation session.