If you’re going through a divorce and need to sell your house, it can be a complicated process. In Colorado, there are specific laws and procedures that must be followed in order to sell a property during a divorce. Here’s what you need to know about selling your house while divorcing in Colorado.
Divorce & Property Division in Colorado
During a marriage, many couples in Colorado acquire assets and property that they sometimes share. In the event of divorce, a couple must usually divide their assets between them. One of the most challenging aspects of a divorce is property division.
The first thing you need to know is that Colorado is regarded as an equitable distribution state. Unlike community property states, divorcing parties divide property and debts in a fair and equitable way.
Property division in Colorado usually falls into two categories: separate property and community property. Understanding what assets fit into each category is crucial during the divorce process since each type is handled differently.
Separate Property
In essence, separate property is property that belongs solely to one spouse. Generally, it includes properties acquired before marriage, inherited properties, or gifts made to one spouse. As part of the property division process, any assets acquired using the separate property are also considered separate.
Community Property
In contrast, assets or properties acquired during a marriage are considered community property. In addition, any real estate, assets, or proceeds derived from them jointly belong to the couple.
Dividing Assets & Property
As long as both parties agree, Colorado courts will usually accept any fair property and debt division arrangement. In the event that no agreement can be reached, a judge will step in and divide the marital assets equally between the spouses. Each spouse is usually entitled to their separate property.
The court will take the following factors into consideration:
- How long the marriage lasted
- Each spouse’s age and health
- Each party’s income, property, and liabilities
- Children’s custody
- Education or career advancement contributions by one spouse to the other
- Tax consequences
- Any factors that the court determines are relevant
Who Gets to Stay in The House Until The Divorce is Final?
Typically, the parent who spends the most time with the children stays in the marital home. Unless domestic violence is involved and a restraining order is obtained, neither spouse can evict the other if the house is co-owned.
The Process to Sell the Home
In a perfect world, the real estate asset should be sold and the profits divided. When the couple has reached an agreement and is ready to start the process of selling their house, there are three options.
When it comes to selling a house, couples have three options. They can list it themselves, hire a realtor, or sell the house to a home buying company.
List the House
If the spouses communicate well and are friendly, they may be able to agree to list the house together. It will be necessary for both parties to sign a contract stating the conditions of the sale and ensure that both names appear on the title of the property. When the property is sold, each spouse receives a share of the profits.
This is a good option for those familiar and comfortable with the home-selling process, as they’ll be in charge of marketing the home and handling negotiations. However, if the home needs a tune-up, investing money in repairs may be necessary to make a good impression on buyers.
Hire a Realtor
If spouses cannot communicate with or collaborate, they can hire a divorce real estate agent. All paperwork and negotiations are handled by these professionals who specialize in assisting people selling their homes during a divorce.
The agent sets a reasonable selling price and markets the property. They will then handle all showings and open houses on the couple’s behalf and negotiate directly with buyers.
It is important to remember that hiring a real estate professional involves paying an agent closing fee after the deal is closed and making necessary improvements before showings.
Sell the House to a Home Buying Company
In a third option, the house can be sold to a home buying company that provides a cash offer and buys the house as-is. Because no showings are required, additional fees aren’t charged, and the home does not need any repairs to make it more appealing to potential buyers, the process is usually faster and easier for couples.
Sell Your House Fast with Favor Home Solutions
Our team at Favor Home Solutions understands how difficult and complex the process of selling a property can be during a divorce. With us, selling your home is a simple and stress-free process. You don’t have to worry about additional fees or costs- we’ve got you covered! Our fair cash offer will put money in your pockets in as little as 14 days so that you can start your new life. Get in touch with us today!
