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Selling Real Estate & Divorce in Denver, Colorado: What You Need to Know

It’s no secret that divorce is already a complicated affair and when you combine it with real estate; it becomes a colossal pot mix of added convolution. For most, the biggest asset in their lives is their property. And with marriage, these properties are shared resources between the couples.

When a couple decides to separate, usually they find themselves in the midst of a big question, “Who gets what?”

(Source: https://www.mcnamaralawyers.com/services/property-division/options-dealing-residential-real-estate-divorce/)

Often, this is why most divorce proceedings are prolonged and may even turn nasty, as everyone wants their hands on the property.

When it comes to the rightful division of the real estate between two parties, we need to go back and understand the fundamental question of when the property was purchased.

This is the deciding factor, as there are laws concerning the time and purpose of the purchase of a property.

If you had purchased the property or had been presented the property before your marriage, then the property exclusively belongs to you, and it is entirely up to you whether you’d like to share or not.

Wherein, if you had purchased it after marriage as a couple, and the property is registered under both of your names, then it may be subject to the division after your divorce.

Another point that is important to remember is the concept of marital income.

When a couple purchases a particular property, this serves as a source of the marital income to both concerning parties and is subjected to equal distribution between the couple.

While this covers the fundamental aspect of how marital laws and real estate laws work in general terms, in most states, this is how the division is carried out.

Even if there is a prenuptial agreement absent, the same fundamental laws are applied. Some states have specific laws, which are more or less similar.

Let’s talk about the Divorce law in Denver, Colorado.

What does the law state in Colorado?

Ordinarily, Colorado is considered an "equitable distribution" state. This means that regardless of the conflicts that may arise relating to marital property distribution among spouses, a settlement is reached in accordance with a signed Marital Settlement Agreement agreed upon by both the parties within the limits of the Decree of Dissolution of Marriage, which adheres by the state laws.

In agreement with this, the properties are divided equally unless a dispute arises between the divorcing spouses.

If a dispute arises, then the proceedings are carried out in an equitable manner, which takes the meaning of being fair but not compulsorily equal. It is not always 50-50.

When there is an unresolved dispute, and court intervention is necessary, the following steps are pursued the divide the property:

  • A process is initiated wherein the assets are classified as marital and personal.
  • The property is assigned with an appropriate capital value.
  • The assets are then distributed in an “equitable “way, i.e., not in an equal manner but in a fair manner.

For depth, here is a list of factors that are considered by the court for the division of property:

The contribution towards the purchase of the property of each individual is considered first and foremost, even if the spouse is a homemaker.

The spouse's economic stance is considered at the time of divorce, including the custody of kids, if any.

According to the Colorado Revised Statutes, Article 10, Section 14-10-113, any deviation from the value of the property during the entire period of the marriage is taken into consideration.

Both parties should have stayed in Colorado for a minimum period of 90 days. If not, you will be considered not a permanent resident of the state and the p[rotary may be awarded to your spouse

These considerations are applied here in Denver, and all proceedings are carried out according to the state laws, which are mentioned above.

In the next section, we will be taking a look at some of the most common questions that pop up in the mind of couples going through the divorce.

Commonly Asked Questions

Will My Wife Get the House in Divorce?

As the property law governs division, if you and your spouse are unable to reach an agreement, the state will divide the property in an equitable manner. >Your wife might get the house depending upon several factors, such as her income, the custody of children, etc.

Who Gets to Stay in the House During Divorce?

This is a complicated question. >As the governing factor to this question depends upon the law, if you or your spouse has a restraining order or any other legal factor stopping you from staying, you cannot stay. >However, if you have a mutual written agreement to stay in the house until the divorce is finalized, then it is not a big deal. But if you wish to remain separated, then it is advisable to get the curt involved.
Another point is that if your children are involved in the process, then the parent who spends the most time with the children may be awarded the right to live in the property until everything is finalized exclusively.

How is the House Divided in the Divorce?

There are two ways in which the property is generally divided during a divorce:
  •  Community property
  •  Equitable distribution.
In the case of community property, the asset is considered a community property, which means it is equally owned among the couple and divided equally between the two. >This is true in the case of states such as Arizona, California, and Nevada, to name a few. >In case of equitable distribution, followed in Colorado, the property is divided fairly but necessarily equal as in 50-50. >We need to understand that property division may not always mean physical distribution of the property; the court may grant a percentage value deemed fit to each spouse.

Is it Better to Sell the Home Before or After the Divorce?

There are pros and cons to both scenarios. >In a nutshell, when you sell the house before your divorce, you and your spouse will equally divide the profit. >If you are selling the house after the divorce, the then person to whom the court awards the property gets the full amount. >Whichever suits best to you, you can proceed accordingly.

What happens to Real Estate in Divorce?

>As mentioned, if you and your spouse are not on agreeable terms on who gets what, the court will decide who gets to keep the property. >This is done according to the law and is carried out in a fair manner to both parties.

How is the value of a house determined during a divorce?

During the divorce negotiation process, if both the parties are coming to a fair decision, the property is divided on a number of factors. This includes the value of the property.

Hence, valuation is done by a person of the court or a professional appraiser who evaluates the market value of your property by specific agendas, such as comparing it with similar properties in the market and unique features your house might have.

The final valuation may be a deciding factor on which percentage value goes to whom.

Are you in a community property or equitable distribution state?

Here in the United States, there are nine community distribution states which are: California, Nevada, Idaho, Louisiana, New Mexico, Washington, Arizona, Wisconsin, and Puerto Rico. Alaska state gives the option of opting in to the community property. >The other 41 states rule according to the equitable distribution or common law states.

Should you keep or sell the house?

While keeping or selling your house is entirely up to you, you should consider certain factors before making a decision. There are pros and cons to both aspects, and it is advisable to analyze both the situations and do what is best for you. >Some factors, such as children or an emotional connection to the house, may prevent you from selling it. On the other hand, you may want to sell the house immediately, as space might remind you our e and you can't afford to pay for mortgage and utilities.

Should you buy out your spouse's share of the house?

While it is not advisable to do so, as divorce is an already complicated situation and this might just add fuel to the fire, many times you think that this might work financially better for you and might also be easier when considering the entire division of property process. >It also an easy way to ensure that you get to keep the house after the divorce.

Which professionals do you need to hire through Real Estate & Divorce Process?

Firstly, you will need a divorce attorney. They will help in creating a real estate scheme that works for both of you. In some cases, a divorce attorney might not be specialized in real estate management. >You will need to hire a special real estate agent who handles the property distribution of divorced couples. >Since the court is involved, it is advisable to hire a divorce attorney specializing in real estate distribution.

Conclusion

As we have already conveyed in the above sections, divorce and selling the home is a pretty complicated process and you may get a lot confused at times.

I hope we were able to answer your questions, and if you have any doubts, feel free to reach out to us.

This article should have answered the following questions

  • Will my wife get the house in divorce
  • Who gets to stay in the house during divorce
  • How is the house divided in divorce
  • Is it better to sell the home before or after divorce
  • What happens to real estate in divorce
  • How is the value of a house determined in divorce
  • Are you in a community property or equitable distribution state
  • Should you keep or sell the house
  • Should you buy out your spouse’s share of the home
  • Which professionals do you need to hire to get through this process
  • Real Estate and Divorce

Will my wife get the house in divorce

  • Will my wife get the house in divorce
  • Who gets to stay in the house during divorce
  • How is the house divided in divorce
  • Is it better to sell the home before or after divorce
  • What happens to real estate in divorce
  • How is the value of a house determined in divorce
  • Are you in a community property or equitable distribution state
  • Should you keep or sell the house
  • Should you buy out your spouse’s share of the home
  • Which professionals do you need to hire to get through this process
  • Real Estate and Divorce
  • Will my wife get the house in divorce
  • Who gets to stay in the house during divorce
  • How is the house divided in divorce
  • Is it better to sell the home before or after divorce
  • What happens to real estate in divorce
  • How is the value of a house determined in divorce
  • Are you in a community property or equitable distribution state
  • Should you keep or sell the house
  • Should you buy out your spouse’s share of the home
  • Which professionals do you need to hire to get through this process
  • Real Estate and Divorce
Please contact us at Kenna Real Estate, We are the Divorce Home Selling Specialists 303-955-4220

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