When Colorado couples decide to divorce, the family home can be one of the most difficult items to divide. It is often a family’s largest single asset, while many owners also carry substantial mortgages. The home often also carries a significant amount of emotional weight. The question can be more complex when children are involved, as parents may be concerned about displacing their children at the same time they are dealing with the changes that accompany a divorce. Still, there are several primary ways that people can handle the family home when separating.
While many people are attached to their homes, selling the house and dividing the proceeds is often the cleanest way to deal with it in a divorce. This is often the preferred option if the house is too costly for either spouse on their own. If this is not the case, one spouse could potentially buy out the other. In some cases, they may exchange their interest in another family asset, like a retirement fund, for their interest in the equity in the home. In other cases, they may need to take out a mortgage to cover the other spouse’s equity interest.
Finally, some couples may choose to retain joint ownership of the home. This option is most frequently chosen by parents who want to keep the kids in the home. Keeping the home can accompany other decisions about child support, custody and spousal support as well.
The financial aspects of divorce can linger long after the emotional and practical issues have been resolved. A family law attorney may help a client to reach a fair settlement on the family home and other asset division issues.