During a divorce, one of the most emotional decisions that a couple has to make is what to do with the family home.
Does one person keep it?
Does it get sold?
What makes the most sense for all parties involved?
A divorce is often fraught with all sorts of emotions and difficult choices. Deciding what should be done with the family home often doesn’t have an easy answer. If children are involved, this becomes even more complicated.
And while it’s common for at least one parent to want to stay in the house they’ve already made a home, it’s not always the wisest or most lucrative decision. Despite a person’s desires and best intentions, it’s important to think through the pros and cons of keeping joint property and maintaining the family home on one’s own.
Let’s take a deeper look at what happens to personal property during a Colorado divorce and whether it’s a good idea for you to continue to live in the home that was originally owned by both of you.
Colorado follows the principle of equitable distribution when it comes to dividing marital property during a divorce.
Equitable distribution means that the division of property should be fair, but not necessarily equal.
This concept means that the family court will consider several factors when determining how to divide property equitably in Colorado.
These factors include:
Marital property includes assets and debts that have been acquired during the marriage, while separate property includes assets and debts acquired before the marriage or through inheritance or gifts during the marriage.
The family home is typically considered marital property, regardless of whose name is on the title, since most marital homes have been acquired during the time of the marriage, with funds earned during the marriage.
The decision to keep the house in a divorce settlement should not be taken lightly. These are often times of great stress and it’s important to take your time, do your research, and involve the right people to help you make this decision.
There are several factors to consider when determining whether it makes sense to ask for or fight for the house:
For many individuals, the family home holds significant emotional value.
It may be the place where you raised your children, celebrated holidays, and created lasting memories. While the emotional attachment each person has toward the house is highly important, it should not be the sole factor in your decision.
It’s essential to consider other implications as well.
Keeping the house can have significant financial implications, particularly post-divorce. While some people find that their financial lifestyle hasn’t changed, most individuals post-divorce say that their budget is tighter than it was before.
Here are some key financial factors to consider:
Statistics show that hanging on to the family home is mot often due to the children who are involved.
If you have children, their well-being is certainly going to be a crucial consideration. Keeping the family home can provide stability and continuity for your children during this difficult time and give them the anchor your marriage no longer can.
If staying in the same home allows your children to remain in their current school district and maintain their routines, it may be worth fighting for the house. However, it’s important to weigh this against your financial ability to maintain the home.
When you are trying to decide whether or not to hang on to the family home, it’s a good idea to remind yourself that you have options.
Spending some time and exploring other avenues for your living arrangements can make the decision to stay or leave easier when you realize you have more choices than you think.
Here are some common considerations to make before you decide to stay:
While it may feel like an emotional lift, selling the family house and dividing the proceeds can be a practical and often smart financial solution.
This approach allows both parties to receive a fair share of the home’s value and move on with their lives. Selling the house can also provide the financial resources needed to secure new living arrangements.
And – while you may feel emotional about the sale today – later you may find that this new start is exactly what you needed to start the next chapter of your life.
If you want to keep the house but cannot afford to do so on your own, a viable option is to consider what it would take for you to buy out your spouse’s share of the equity.
Keeping the home yourself means that you can provide yourself (and possibly children) with the stability to stay put during a time of great upheaval, uncertainty and change.
This option will involve refinancing the mortgage to remove your ex-spouse’s name and provide them with any share of the equity that is owed to them. It’s also important to keep in mind that this option requires a strong credit history and sufficient income to qualify for a new mortgage.
In some cases, ex-spouses may choose to continue co-owning the house for a period of time.
While this arrangement may not be ideal for many, it can provide the physical and emotional stability for children who may need it during this transitional time without requiring either spouse to have to requalify for a loan.
In situations like this, one person may live in the home and the other continues to share costs. In another scenario, both parents take turns staying in the home while the children get to spend time with both of them in a place that is already familiar to them.
Regardless of the terms around co-ownership, this type of arrangement requires a high level of cooperation and communication, and it may not be suitable for all couples.
Navigating the complexities of deciding what to do with the family home during a divorce can be overwhelming.
Fortunately, there are several resources and professionals you should consier consulting with if you’re struggling to decide what to do about your home:
A Knowledgeable Divorce Attorney: A good divorce attorney is an invaluable resource when it comes to making lots of your divorce decisions…particularly about assets like your family home.
They can provide legal guidance, help you understand your rights, and advocate on your behalf during negotiations. Your attorney can also assist with the legal paperwork and ensure that any agreements are enforceable.
A Skilled Financial Advisor: Consulting with a financial advisor can help you understand the financial implications of keeping or selling your family home.
They can provide insights into mortgage payments, property taxes, insurance, and maintenance costs. They can also run long-term calculations and help you assess your overall financial situation, laying out on paper what is affordable and sustainable for you post-divorce.
An Experienced Real Estate Agent: A real estate agent who has experience in your community can provide an accurate assessment of your home’s market value and offer advice on selling the property.
If you decide to sell, this person is a valuable tool in helping you list the home, market it to potential buyers, and negotiate the best possible price. If you are considering buying out your spouse’s share, they can also provide information on comparable home values in your area.
A Local Mortgage Lender: If you plan to refinance the mortgage to remove your ex-spouse’s name or to buy out their share of the equity, consulting with a mortgage lender is essential.
Look for a local lender who can help you understand your options, the risks, and determine your eligibility for refinancing, while carefully guiding you through the application process.
Navigating the complexities of a divorce, especially when it comes to the family home, can be a challenge.
While you weight the crucial emotional, financial, and practical implications of keeping the house, you also have to explore all other available options while trying to navigate a host of other divorce tasks.
At Geigle | Morales, we will make sure you receive the guidance and support needed to make informed decisions that will protect your interests and secure your future well-being.
Our team is dedicated to helping you navigate the divorce process and ensuring that – wherever you end up – it will feel like home.
Divorce is never easy, but with the right legal counsel and a thoughtful approach, you can emerge from the process with a sense of stability and security. Make the right decisions during your divorce, and let us help you turn your family home into a blessing, not a curse.