As the cost of living in Colorado continues to climb, families facing divorce are feeling the squeeze. Rising prices for essentials like housing, food, and childcare make it more important than ever to carefully navigate issues like alimony, child support, and asset division.
Whether you’re in the middle of a divorce or considering one, understanding how inflation affects your financial rights is critical to protecting your future.
Spousal (MaintenanceAlimony) in Uncertain Times
In Colorado, alimony—officially called spousal maintenance—is awarded based on factors like income disparity, the standard of living during the marriage, and how long the marriage lasted.
See the full statute here →
With inflation increasing the cost of basic living expenses, support orders that seemed reasonable a year ago may no longer meet a person’s actual needs.
Good news: Colorado law allows for modifications. If either party experiences a significant financial change, like job loss or major increases in living costs, you can request a revised maintenance order.
Child Support and the Rising Cost of Raising Kids
Colorado’s child support guidelines consider both parents’ gross incomes and how parenting time is shared.
Learn more about child support laws →
But those guidelines don’t automatically adjust for inflation.
With the cost of raising a child increasing rapidly—according to the USDA, it now averages over $18,000/year per child—existing child support orders may no longer reflect your child’s actual needs.
Colorado allows for modification when there’s a substantial and continuing change in circumstances, such as a 10% shift in income or childcare costs.
Dividing Assets During Economic Volatility
Colorado is an equitable distribution state—meaning marital property is divided fairly, not necessarily 50/50.
See the legal details here →
But in a high-inflation economy:
- Real estate values may change dramatically mid-divorce
- Retirement accounts and investments may fluctuate
- Cash savings may lose real value over time
These factors make it crucial to get accurate, up-to-date valuations and involve experts if needed.
Practical Steps: How to Protect Yourself Financially
Here are key steps you can take right now:
1. Get a Current, Clear Financial Picture
Collect up-to-date documentation of your:
- Income and employment
- Debts (credit cards, mortgages, personal loans)
- Property values (especially if you own real estate or vehicles)
- Retirement and investment accounts
Work with a financial advisor or forensic accountant if you suspect that assets have been hidden, devalued, or overvalued.
2. Include Inflation in Settlement Planning
When drafting a separation agreement, consider:
- Cost-of-living adjustments (COLAs) for alimony or child support
- Future healthcare and education costs for children
- Whether assets like real estate will likely increase or decrease in value
Even if the court doesn’t require inflation indexing, you can negotiate it into a private agreement.
3. Avoid Liquidating Long-Term Assets Prematurely
In times of inflation, preserving retirement accounts (like IRAs or 401(k)s) may offer long-term stability. Selling off these assets now could lock in losses or trigger early withdrawal penalties.
Consider a QDRO (Qualified Domestic Relations Order) to divide retirement accounts without tax penalties.
4. Review and Update All Legal Agreements Over Time
Economic conditions change—so should your legal agreements. If inflation or job loss significantly alters your financial circumstances, you can petition the court to modify existing orders for alimony or child support.
Be sure to document all changes in income and expenses and consult with a Colorado family law attorney before filing.
5. Prioritize Mediation When Possible
Litigation is costly and can drag out during economic instability. Mediation offers a faster, more affordable route to divorce—especially useful if both parties are motivated to save on court fees and protect their financial futures.
The Bottom Line for Colorado Families
Divorce is already one of life’s most stressful events. Add in an unstable economy, and the challenges can multiply. At Boal Law, we help Colorado families navigate divorce with clarity, compassion, and smart financial strategy. If you need help understanding your options, contact us today for a confidential consultation.