Division of assets is a common concern when couples in Colorado decide to end their marriage. One of the biggest and most valuable properties a couple has is the marital home. People can engage in endless disputes over the property not just due to the financial ramifications, but also due to emotional considerations as the parties might have raised children and lived at the residence for an extended period.
There are alternatives for the couple to consider when it comes to the family home. For many couples, one option is to sell the property and split the proceeds. This is contingent on several factors including the amount of equity in the home and if the parties are on solid enough terms to sell it without rancor or making the dispute worse. Taxes should be factored in as many people do not want to pay capital gains. Also, it is wise to think about the cost of a new home or if renting is preferable.
One spouse can buy the other spouse out of the property. This is a good step if one spouse plans to remain in the property and live there. The value of the home should be determined. Other expenses such as maintenance and insurance should be considered. The spouse who is being bought out will have his or her name removed from the deed but could still be on any mortgage document and therefore be responsible for payments even if he or she is not planning to pay. Credit issues and assets are key in such a circumstance.
The couple can leave the situation the same and jointly own the marital home. For people who have children who are going to keep living in the home, this can be beneficial as it avoids having to uproot them. Expenses with regards to the home should be calculated and it must be decided how they will be paid. An agreement in writing is a good idea in such a situation.
With any divorce, there will be disagreements and concerns over a variety of issues. The marital home is difficult to handle as there are so many variables surrounding it. However, it can be settled in several ways. Having assistance from a law firm that has experience in asset distribution and division of assets in a divorce can help.