For many couples, the family home is one of the biggest, and most emotional, assets to divide during divorce.
It’s not just a financial decision. The home often carries deep sentimental value and practical importance, especially if children are involved or one person wants to stay put for stability. In Colorado, dividing property in a divorce can feel overwhelming, but understanding how the process works can make it easier to move forward with clarity.
Let’s look at what happens to the home in a Colorado divorce and how different approaches, like collaborative divorce, can help reduce conflict.
Is the House Considered Marital Property?
In Colorado, marital property is divided using a method called equitable distribution. That doesn’t always mean a 50/50 split, but rather what’s considered fair based on your specific situation.
If the home was purchased during the marriage, it’s likely marital property, even if only one spouse is on the title. If one spouse owned the home before the marriage, part of its value may still be considered marital property if both contributed to mortgage payments or renovations during the marriage.
The key factors courts look at include:
- When the home was purchased
- Who contributed financially
- How much the home has appreciated
- What other assets are being divided
What Are the Options for the Family Home?
There are a few different ways couples choose to handle the home during divorce:
- One spouse keeps the home by buying out the other’s share. This usually involves refinancing the mortgage to remove the other person’s name and give them their share of equity.
- The house is sold and the profits are split according to the divorce agreement.
- Temporary agreements allow one spouse to stay in the home for a set time, especially if children are involved, before selling or buying out the other.
Which route is best depends on your finances, housing options, and personal goals.
How Does Collaborative Divorce Impact the Decision?
In a traditional divorce, decisions about the home are often made through attorneys or even decided by a judge. But in a collaborative divorce, both parties work together with the help of trained professionals to find solutions that feel fair and sustainable.
This method allows for more flexibility. Maybe one spouse keeps the house for a few years until the kids are older, then agrees to sell. Or perhaps both agree to trade other assets to balance out equity.
Because collaborative divorce focuses on open communication and shared goals, it often leads to creative solutions that work better for everyone involved.
What if Both Spouses Want to Keep the House?
If both people want to keep the home, it can lead to tension. In this case, it's helpful to look beyond emotion and think about practicality.
- Can you afford the mortgage, taxes, and upkeep on one income?
- Are you keeping the home for the right reasons, or because it feels like a “win”?
- Would a fresh start in a new place be more beneficial long term?
It’s not always easy to let go of a home, but sometimes a new chapter is what’s needed to create peace and stability for the future.
Don’t Forget the Financial Picture
The home might be the biggest asset in your divorce but it’s only one piece of the puzzle. When dividing property, it’s important to consider the whole picture.
For example, one person might keep the house while the other takes retirement accounts, vehicles, or other valuable assets. Each situation is unique, and what works for one couple may not work for another.
A collaborative approach can help ensure that the financial outcome feels balanced and thoughtful, rather than one-sided or rushed.
When in Doubt, Talk to a Professional
If you’re unsure about what to do with the house in your divorce, reach out to a divorce financial expert or collaborative divorce team. They can walk you through the pros and cons of each option and help you avoid costly mistakes.
Dividing a home isn’t easy, but with the right support, you can make a decision that feels respectful, fair, and forward-focused.
