How to enforce or dispute an oral agreement dividing wrongful death proceeds in Colorado

Quick answer: Colorado law treats wrongful death proceeds as a statutory recovery for named beneficiaries under the Wrongful Death Act (C.R.S. § 13-21-201 et seq.). An oral agreement among beneficiaries to divide those proceeds can sometimes be enforceable, but enforcing or disputing such an agreement depends on whether the agreement meets contract-law requirements, whether the estate’s representative approved or relied on it, whether the parties put the agreement into writing or obtained court approval, and whether any applicable deadlines or settlement releases apply. Because these disputes involve both probate and civil procedure issues, take steps to preserve evidence and get legal help quickly.

Detailed answer — what the law says and the practical process

1. What the wrongful death statutes say about beneficiaries and distribution

Colorado’s Wrongful Death Act creates a cause of action for the personal representatives and prescribes who may recover and how proceeds are allocated. See C.R.S. § 13-21-201 et seq.; you can read the statutory text at the Colorado statutes site: C.R.S. § 13-21-201 and C.R.S. § 13-21-203. In practice, the statutory scheme governs default distribution when there is no valid agreement among the people who have the right to recover.

2. Can beneficiaries make a private agreement to change distribution?

Yes — beneficiaries who share a statutory interest can generally enter into a contract among themselves to divide proceeds differently from the default statutory split. But two important limits apply:

If the estate’s personal representative (executor/administrator) is responsible for settling the wrongful death claim, that representative has fiduciary duties to the estate and beneficiaries. The personal representative should either follow a valid, informed agreement by the beneficiaries or seek court approval before disbursing funds in a way that departs from the statute.
Agreements that attempt to alter testamentary dispositions or are barred by statute (for example, certain promises that must be in writing under other laws) can be invalid. Whether an oral agreement is enforceable depends on ordinary contract law (agreement, consideration, capacity, absence of fraud) and sometimes on specific probate or statute-of-frauds rules.

3. Common scenarios and how courts treat them

Practical outcomes depend on facts:

If all beneficiaries orally agree to split a settlement and later one beneficiary refuses to honor the split, a court may enforce the bargain if there is clear evidence (witness testimony, contemporaneous messages, settlement minutes) that the parties reached a binding agreement.
If a beneficiary signed a written release or settlement that disbursed funds and later complains the split was different from what they understood, courts will closely examine the written documents and surrounding communications. A signed release usually forecloses later claims unless the signer can show fraud, mistake, duress, or incapacity.
If the personal representative distributed funds without following the beneficiaries’ agreement, an aggrieved party can seek an accounting, removal of the personal representative, restitution, or a money judgment for breach of fiduciary duty or breach of contract.

4. Step-by-step: enforcing an oral agreement

Preserve evidence. Save texts, emails, voicemails, notes, witnesses’ names and dates. Written corroboration makes enforcement far easier.
Ask the personal representative to honor the agreement and provide a written confirmation or release signed by all beneficiaries.
If the representative refuses, consider demand letters and mediation. Many estate disputes settle if parties use neutral mediation or a probate court settlement conference.
If informal steps fail, file a civil action — common claims include breach of contract, unjust enrichment, or a declaratory judgment that the agreement is binding. If the dispute concerns the representative’s handling of estate funds, file a probate petition for accounting or surcharge in the county probate court or district court with probate jurisdiction.
When a settlement or disbursement already occurred, claims may include seeking reformation, rescission, constructive trust, or money damages depending on the facts.

5. Step-by-step: disputing an oral agreement (defenses and responses)

Challenge the agreement’s existence or terms: show there was no meeting of the minds, no consideration, or insufficient evidence to prove the asserted deal.
Assert fraud, undue influence, mistake, or incapacity if applicable. These defenses can void a contract even if it appears that parties agreed.
If a beneficiary signed a release, argue the release’s scope, validity, or enforceability (e.g., forged signature, lack of capacity, misrepresentation about essential facts).
Use probate remedies: petition the probate court for an accounting or to challenge distributions that the representative made without proper authority.

6. Timing and deadlines to watch

Statutes of limitation and probate deadlines can bar claims. For example, statutes set deadlines for bringing wrongful death or contract claims and for bringing certain probate petitions. Identify and preserve your rights promptly — delays can permanently foreclose relief.

Helpful hints

Document everything immediately. Contemporaneous written evidence (texts, emails, signed settlement drafts) is the strongest support for an oral agreement.
Get written confirmation. Even if the initial agreement was oral, convert it to a signed written agreement and, if possible, file it with the personal representative or the probate court.
Talk to the personal representative. They control disbursement. If they know of and accept the agreement, ask them to file a petition with the probate court to approve the distribution.
Use mediation. Courts often require or encourage mediation to resolve beneficiary disputes efficiently and at lower cost than litigation.
Preserve statutory deadlines. Consult an attorney right away to determine limitations periods that apply to your claims.
Be cautious before signing releases. Read settlement and release documents carefully and get legal advice before you sign anything that fully discharges claims.
Consider probate remedies. If a personal representative acted improperly, you may seek an accounting, surcharge, or removal in probate court rather than (or in addition to) a separate contract suit.

Where to look in the Colorado statutes

Key statutory starting points include the Colorado Wrongful Death Act at C.R.S. § 13-21-201 et seq. (see the Colorado statutes site: C.R.S. § 13-21-201 and C.R.S. § 13-21-203). For probate procedure and the duties of personal representatives, consult the Colorado Probate Code and local court rules for the county where the estate is opened.

When to get a lawyer

If the disputed amount is significant, a personal representative refuses to follow the agreement, a release has been signed, or there are allegations of fraud or incapacity, consult an attorney experienced in Colorado probate and wrongful death matters. An attorney can evaluate evidence, preserve deadlines, prepare petitions in probate court, and represent you in mediation or litigation.

Disclaimer: This article explains general Colorado law and common court practices. It is informational only and does not constitute legal advice. Consult a licensed Colorado attorney about your particular situation before taking action.