When Colorado couples decide to divorce, one of the biggest questions is what will happen to the family home. This is often the largest asset that is acquired during the marriage. Furthermore, many people become emotionally attached to the family home.
In many cases, a divorcing spouse will have to determine if it is in their best interests or even financially feasible to keep the family home, especially if there are children involved. One question that needs to be answered is how much equity the former couple has in the home. Equity is the value of the property minus any liens or encumbrances, such as the remaining balance of a mortgage. To determine equity, an appraisal or a broker price opinion will be needed.
Another key factor of importance is determining how much a person will owe their former spouse if they choose to keep the property. A mortgage may be needed to complete the buyout from the other spouse. If there is already a mortgage, a person may need to determine if they can refinance the home in a sole name only. This can be done before the divorce is final. However, spousal support and child support often do not qualify a person to do this.
Dealing with the family home is only one aspect of a divorce. In many cases, divorcing couples will have to figure out how to divide up all of their marital property, which can include retirement funds, business assets and vehicles. A divorce attorney could represent a client to ensure that they receive all of the property they’re entitled to.