What Happens to Real Estate in a Divorce in Colorado?

Divorce is a challenging and emotional process that can significantly impact your life, including your real estate holdings. If you find yourself facing a divorce in Colorado, it's essential to understand how the division of property works and what options are available to you.

In this article, we will explore the specific implications of divorce on real estate in Colorado, covering topics such as the division of the marital home, financial and tax considerations, the role of real estate professionals, and how to sell your house fast.

The Marital Home: Division and Rights in Colorado

To comprehend what happens to real estate in a divorce in Colorado, it is crucial to understand the distinction between marital and separate property.

  • Marital property refers to assets acquired during the marriage
  • Separate property includes assets obtained before the marriage or through inheritance or gifts.

In Colorado, marital property is subject to equitable distribution, which means it's divided fairly but not necessarily equally.

When it comes to the marital home, the court considers several factors in determining who gets to keep it including.

  • Financial contributions of each spouse
  • The best interests of any children involved
  • The practicality of awarding the home to one spouse over the other.

It's essential to consult with a divorce attorney specializing in family law to understand how these factors may apply to your situation. Both spouses typically have legal rights to the marital home during divorce. However, it's crucial to understand that these rights may change depending on the circumstances.

For example, if one spouse owned the home before the marriage or can prove that the home is their separate property, they may have a stronger claim to it. Seeking legal advice can help you navigate these rights' complexities and protect your interests.

Options for Dealing with the Marital Home

Once the division of the marital home is determined, there are several options for dealing with this significant asset.

Sell the Home

One common option is to sell the home and split the profits between the spouses. This approach provides a clean break and allows both parties to move forward independently. However, it's crucial to consider this option's financial and emotional implications, as selling a house during a divorce can be a complex and stressful process.


Another option is for one spouse to buy out the other's share of the home. If there are sufficient financial resources, this can be an attractive option for maintaining stability, especially if children are involved. In this scenario, the buying spouse typically refinances the mortgage in their name and compensates the selling spouse for their share of the equity. It's essential to consult with real estate and legal professionals to ensure this process is executed correctly and fairly.


Co-owning the home post-divorce is another possibility, although it requires high cooperation and ongoing communication between the ex-spouses. This option may be suitable if neither party is ready or willing to sell the home immediately, but it's essential to establish clear guidelines and legal agreements to avoid potential conflicts down the road.

Asset Trade

Finally, trading other assets for the home can be an option if both spouses agree to it. For example, one spouse may trade their share of retirement savings for the other's share of the home. This approach can be advantageous if one spouse has a greater emotional attachment to the home or if it aligns with their long-term financial goals.

Financial and Tax Considerations in Colorado

Divorce can have significant financial implications, including the impact on your mortgage and credit. If you and your spouse jointly own the marital home, you must determine how to handle the mortgage payments during the divorce process. It's essential to consult with your mortgage lender and a divorce attorney to explore options such as refinancing the mortgage in one spouse's name or selling the home to pay off the mortgage.

Capital Gains

Capital gains tax can also be a consideration when dealing with real estate in a divorce. In Colorado, if you sell your primary residence, you may be eligible for a capital gains exclusion of up to $250,000 for an individual or $500,000 for a married couple filing jointly.

However, if the home was not your primary residence or you don't meet the ownership and occupancy requirements, you may be subject to capital gains taxes on the profit from the sale. It's crucial to consult with a tax professional to understand the potential tax implications of selling your home during a divorce.

Property Taxes

Property taxes and other expenses associated with the marital home should also be considered during the division of assets. It's important to determine how these expenses will be allocated between the spouses, ensuring a fair distribution of the financial responsibilities.

Consulting with a financial advisor or divorce attorney can help you navigate these considerations and ensure a comprehensive approach to property division.

Role of Real Estate Professionals and Appraisers

Real estate professionals, such as agents and appraisers, play a crucial role in dealing with real estate in a divorce.


Appraisers are also essential in determining the value of the marital home. An appraiser will assess the property's worth based on various factors such as location, condition, and market trends.

This valuation is crucial for ensuring a fair division of assets and can also help you make informed decisions about whether to sell or keep the home. Working with a reputable appraiser recommended by your attorney or real estate agent is crucial to ensure an accurate and unbiased assessment.

Divorce Attorney

Seeking legal advice throughout the process is essential, as divorce can be complex and emotional. A divorce attorney specializing in family law can provide guidance on your rights and obligations, help you understand the implications of various decisions, and ensure that your interests are protected during the property division process.

Tips for Smooth Property Division in Divorce

Dealing with real estate in a divorce can be challenging, but you can take steps to facilitate a smoother process.

  • Communicate clearly: Clear communication and compromise are vital in reaching fair and equitable agreements for both parties. It's essential to listen to each other's perspectives and be open to creative solutions prioritizing financial and emotional well-being.
  • Get advice: Consulting professionals throughout the process can also help ensure a smoother property division. Appraisers, financial advisors, and divorce attorneys can provide valuable insights and guidance based on their expertise.
  • Think clearly: It's also crucial to keep emotions separate from decision-making. Divorce is a highly emotional process, but allowing emotions to drive your choices can lead to irrational decisions that may not be in your best long-term interest.

What is the Best Way to Sell a House During Divorce?

How you sell your house can help make your divorce process easier. When selling a house during a divorce, you have several options.

  • One option is to list the property on the traditional real estate market, work with a real estate agent to market the house and negotiate with potential buyers. This method allows for a wide reach and potentially yields the highest sale price. However, it can also be time-consuming and may not be suitable for couples looking for a quick resolution.
  • Alternatively, selling the house to a real estate investor or a cash home buyer can be a faster option. These buyers often purchase properties in their current condition, eliminating the need for repairs or renovations. While this method may result in a lower sale price, it can provide a quick and hassle-free solution for couples looking to finalize their divorce swiftly.

Sell Your House Fast in Denver, Colorado

If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact Credible Homes of Colorado. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 720-938-3634 to get a fast cash offer from our local home buyers in Colorado.

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