Written for: Attorneys and C.P.A. expert witnesses who are called upon to produce an asset tracing to establish or refute the existence of separate property in a Colorado marital dissolution.

Objective for Readers: To learn how to properly prepare an asset tracing in accordance with Colorado Statutes and case law using generally accepted accounting methodologies and techniques.

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Subjects covered:
 
 
 
  • Why asset tracing? 
  • What is asset tracing? 
  • Asset tracing in Colorado and other states 
  • Asset tracing standards
  • Interface of the accounting and legal professions 
  • How to start the asset tracing process
  • Definition of separate property under the Colorado Statutes 
  • The nature of separate property under the Colorado Statutes 
  • Separate/marital property decision tree 
  • Transaction/event codes 
  • Computer spreadsheet format to trace individual assets 
  • Comprehensive format to trace multiple assets 
  • Asset tracing methodology 
  • Differences in asset tracing approach between petitioners and respondents 

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Subjects covered:
 
 
 
  • When separate property has not changed form 
  • When separate property changes form 
  • Attributes of a successful asset tracing 
  • Asset tracing transactions and events 
  • Transactions/events that create separate property
    • Property acquired prior to date of marriage 
    • Property acquired by gift, bequest, devise or descent 
    • Property acquired in exchange for property acquired prior to the marriage or in exchange for property acquired by gift, bequest, devise or descent 
    • Property acquired by a spouse after a decree of legal separation 
    • Property excluded by valid agreement of the parties 
    • Transmutation of property 
      • Transmution by agreement
      • Transmution by title
      • Transmutation by interspousal gift
      • Transmutation by use
  • Transactions/events that create a marital component to separate property
    • Appreciation in value of separate property during the marriage
    • Income during the marriage
    • Use of marital property to carry, maintain or improve separate property
  • Transactions/events that reduce the separate or marital component of property
    • Distributions/withdrawals
      • Pro-rata method
      • Intent or facts and circumstances method
    • Depreciation in value
    • Commingling
    • Transmution of property
  • Fungibility
  • Entity vs. aggregate issues
  • Different asset tracing standards for the parties
  • Need to trace all transactions in an account
  • Strategic planning
  • Discovery
  • Professional standards of C.P.A. expert witnesses
  • Report writing standards
  • Sample expert's report

Subjects covered:

Each case study includes a section on the fact pattern, the issues to be addressed, a detailed discussion of the issues, a transaction by transaction discussion, the asset tracing computations, and a conclusion section.
 
 
 
  • Case study 1 - Individual retirement account
  • Case study 2 - Closely held business
  • Case study 3 - Marital residence
  • Case study 4 - Rental real estate
  • Case study 4A - Mortgage on rental real estate
  • Case study 5 - Stock brokerage account - Detailed tracing
  • Case study 6 - Stock brokerage account - No detailed tracing
  • Case study 7 - Employer stock options
  • Case study 8 - Comprehensive property tracing (all property during the marriage)

Chapter Four contains an optional (additional processing fee) 8 hour Continuing Professional Education course and examination for C.P.A.s. This course may qualify for CLE for attorneys in some states. Attorneys should consult with their professional regulatory bodies before taking this course and exam.

Documents included:
 
 
  • Appendix 1. Separate/Marital Property Decision Tree
  • Appendix 2. Transaction/Event Codes
  • Appendix 3. Colorado Uniform Dissolution of Marriage Act - Section 14-10-113. Disposition of Property
  • Appendix 4. Colorado Rules of Civil Procedure Rule 26.2. - General Provisions Governing Discovery; Duty of Disclosure (Domestic Relations)
  • Appendix 5. Colorado Rules of Civil Procedure - Rule 16.2. Case Management (Domestic Relations)
  • Appendix 6. Colorado Rules of Civil Procedure Forms - Form 20.2 Pattern Interrogatories (Domestic Relations)
  • Appendix 7. Colorado Rules of Civil Procedure Forms - Form 21.2 Pattern Requests for Production of Documents (Domestic Relations)

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