The marital home is often the most valuable asset in the marital estate. The overall value may have appreciated significantly during the marriage since it was purchased. The parties may have invested quite a bit of money and sweat equity to fix the property up, which may have increased its value even more.
It is normal for people to worry about what will happen with their homes in a Colorado divorce. Some people worry about needing to sell the home and move, possibly forcing their children to change school districts.
For others, the most pressing concern might be the potential of losing what they have invested in the home. What happens with your primary residence during a Colorado divorce?
Equitable distribution rules apply to your real estate
The assets that you have purchased during marriage and/or maintained during the marriage with marital assets are subject to division in your divorce. You have the option of settling with your spouse and pursuing an uncontested divorce or you can ask a Colorado District Court judge to determine the division of marital assets.
What are some of the solutions for your home when you divorce?
One of you can refinance and keep the home
Especially in cases where the parties share custody of minor children, a judge might determine that one of the parties should stay in the family home. The person keeping the home will usually need to refinance any mortgage on the property to remove the other party from the note.
The other spouse will typically need to sign a deed to relinquish their right to the property’s title. The spouse not keeping the home should receive either a share of its equity or possibly other valuable marital property worth a comparable amount.
You can sell the home
Maybe neither of you can qualify for a mortgage on your own, or perhaps both of you simply want a fresh start. When selling the marital home, the parties will generally split the proceeds of the sale in a fair and equitable manner and they will both then have funds for establishing their own household later.
In rare cases, couples may even negotiate contracts that allow them to retain joint ownership of the home after the divorce. Recognizing that there are numerous possible solutions for dividing a marital home can help those preparing for Colorado divorce proceedings.