A family home is typically one of the most valuable assets a couple owns. In addition to its financial value, a house can also carry a lot of sentimental value for the family who lives there. If a couple chooses to get divorced, it can be difficult for the divorcing spouses to decide what to do with such a significant asset.
A house is considered a marital asset in most marriages, as both spouses likely contributed financially or otherwise to the purchase and maintenance of the home.
Colorado is an equitable division state, meaning that family law courts will divide up marital assets fairly and equitably between the divorcing spouses. However, equitable distribution of a marital asset does not always mean splitting it 50/50. Courts will consider several factors when deciding what happens to the home, including:
- Contributions made by each spouse toward the home
- Whether the parties have a prenuptial or postnuptial agreement specifying what happens with the house in the event of a divorce
- Whether the couple has children (if so, the custodial parent will often be awarded the house)
- Each spouse’s income, earning capacities and debts
There are several options for managing a marital home in a divorce, including the following:
- Sell the home and divide the proceeds between the spouses.
- Allow one spouse to retain the house by buying out the other spouse.
- Both spouses continue to share ownership of the home.
Many people find that the best way to move forward after a divorce is to sell the house and split the proceeds. However, if you choose to negotiate with your spouse and come up with a way to keep the house, you will need to refinance your mortgage and update the deed. Keep in mind that you will need to be able to afford all the expenses related to owning the house on your own, including maintenance costs, mortgage payments and taxes.