Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

Is Colorado a Community Property State? (2026)

Updated October 8, 2026. Quick answer: No. Colorado is a common law state. At divorce, C.R.S. section 14-10-113 has the court divide the marital property “in such proportions as the court deems just”, and at death the surviving spouse can elect an elective share of the augmented estate. The IRS lists nine community property states.

Colorado community property at a glance

ItemWhat the documents say
RegimeCommon law
At divorceThe court divides marital property in proportions it deems just (C.R.S. 14-10-113)
At a spouse’s deathAn elective share of 50 percent of the marital-property portion of the augmented estate, a portion that grows with the length of the marriage (C.R.S. 15-11-202, 15-11-203)
Federal basis at the first deathA qualified joint interest between spouses: one-half is included in the estate and steps up
SourceColorado Office of Legislative Legal Services / General Assembly; IRS Publications 551 and 555; 26 U.S.C. 1014

What the Colorado statutes say

Colorado’s statute uses the terms marital property and separate property. It tells the court that it “shall divide the marital property, without regard to marital misconduct,” and that the division is made in proportions the court deems just.

At divorce in Colorado

Just is not the same as equal: section 14-10-113 lists the factors the court weighs, and the text read sets no fixed split.

At a spouse’s death in Colorado

Section 15-11-202 gives a surviving spouse of a Colorado-domiciled decedent an elective share “equal to fifty percent of the value of the marital-property portion” of the augmented estate. Section 15-11-203 builds that portion by the length of the marriage: the table starts at “1 year but less than 2 years 10%” and reaches “10 years or more 100%”.

What it does to basis when the first spouse dies

Because Colorado is not on the IRS’s list of community property states, a couple’s basis at the first death depends on title. IRS Publication 551 says to “Include one-half of the value of a qualified joint interest” in the decedent’s gross estate, and the survivor’s basis is the cost of the survivor’s own half plus the basis in the half inherited. Property in the decedent’s name alone is different: 26 U.S.C. 1014(a) gives the heir a basis equal to the property’s fair market value at the date of the decedent’s death.

Computed illustration, not tax advice: suppose a Colorado couple paid $100,000 for shares held as a qualified joint interest, and the shares are worth $400,000 when one spouse dies. The survivor’s basis is the total of two halves: $200,000 for the half that steps up plus $50,000 as the cost of the survivor’s own half, which makes $250,000. A sale at $400,000 would then show a gain of $150,000. In a community property state the same facts would give a basis of the whole $400,000. CMG’s common law step-up page goes through the difference.

What the documents do not say

  • The newest official Colorado Revised Statutes edition archived is the 2024 edition, so the text is not confirmed as of 2026.
  • The statute also sets a supplemental amount; this page does not state it.

Common mistakes

  • Reading the 50 percent as half of everything; it applies to the marital-property portion, which scales with the length of the marriage.
  • Assuming the answer in this state settles it for a couple who move; the rules depend on the state where the spouses are domiciled and, for property in a trust, on the trust.

Related: why only half steps up in a common law state, Colorado retirement taxes, and Colorado probate cost.

Find the right next step for your situation

About how much do you have invested? Pick the range that fits; your next step appears immediately below.

About how much do you have invested?

Sources

Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.

See the adviser match on this page