How Do We Split the Home's Equity?

In Colorado, which is an equitable distribution state, the equity in the home would be divided in a way that the court deems fair, but not necessarily equally. Contributions toward the home, the needs of each party, and other factors are considered.

 

Should We Sell the House or Does One Person Keep It?
This decision is often based on the couple's financial situation and the court's judgment. One party could buy out the other, or the house could be sold, and proceeds divided as per Colorado's equitable distribution laws.

 

How Do We Determine the Home's Value?
An official appraisal is usually the best route to determine fair market value. Both parties should agree on an appraiser to avoid later disputes.

 

What Happens to the Mortgage?
Options include refinancing so that the mortgage is in one name or selling the house to pay off the mortgage. Colorado courts often consider the person who will have primary custody of children, if applicable, when deciding who should stay in the home.

 

Can One Party Buy Out the Other?
Yes, one spouse can buy out the other's share of the property. In Colorado, the buyout amount is typically based on the home's market value, minus the remaining mortgage balance.

 

How Do Taxes Affect Our Decisions?
Taxes can play a significant role. Colorado doesn't have special divorce-related tax laws, but federal taxes, like capital gains tax, will apply when selling the home. Consult a tax advisor for state-specific information.

 

What About Jointly Owned Investment Properties?
These are typically divided based on equity and each spouse's contribution, similar to a primary residence, in line with Colorado's equitable distribution laws.

 

How Do We Handle Home Repairs or Upgrades Before Sale?
Both parties are generally responsible for home repairs or upgrades before a sale unless otherwise agreed upon. You can establish this in writing to avoid future disputes.

 

Who Stays in the Home During the Divorce Process?
There is no set rule in Colorado, and this can be emotionally challenging. Temporary orders during separation can address this issue, or parties may come to an agreement outside of court.

 

What Happens If One of Us Can't Afford the House Alone?
If neither can afford the home, selling it and dividing the proceeds is common. Otherwise, the party with more financial resources might keep the home, especially if they have custody of children. Alimony and child support can also factor into this decision per Colorado law.