The Family Home in a Colorado Divorce: Equity and Buyouts
In Colorado, a home bought during the marriage is presumed marital, and the growth in a premarital home is marital too. The court divides property in proportions it deems just and considers the desirability of awarding the family home or a right to live in it to the spouse with whom the children live most of the time.
Is the home marital or separate?
A home bought during the marriage is presumed marital property, whoever holds title. A home owned before the marriage is separate, but to the extent its present value exceeds its value at the marriage, the excess is treated as marital property (C.R.S. 14-10-113(3) to (5)). The statute values property as of the decree or the earlier disposition hearing.
The family home as a factor
When dividing property, the court considers each spouse’s economic circumstances when the division takes effect, including the desirability of awarding the family home or the right to live there for reasonable periods to the spouse with whom any children live most of the time (Section (1)(c)). That can affect who keeps the house and for how long.
Equity and the marital increase
The number that gets divided is equity, adjusted for what is separate. For a premarital home, only the growth since the marriage is marital.
| Item | Amount |
|---|---|
| Home value | $500,000 |
| Mortgage balance | −$300,000 |
| Equity | $200,000 |
| Equity at the marriage (premarital home value $350,000 less $250,000 mortgage then) | $100,000 |
| Marital increase | $100,000 |
| One-half of the marital increase (if the court divides equally) | $50,000 |
The percentage is the court’s decision; Colorado’s statute sets none. The Colorado property division calculator lets you test shares and the equalizing payment each one implies.
Keeping the house
One spouse can keep the house if the other receives other property or an equalizing payment. Whether that is workable depends on the mortgage: ask the lender whether the spouse keeping the home can assume it or must refinance, and compare the equalizing payment with other marital assets available to offset it.
Support and the home
Awarding a larger share of property can reduce the need for maintenance, and the court may adjust property or debt to alleviate the need for maintenance (C.R.S. 14-10-114(3)(f)). See the Colorado maintenance calculator.
Practical points
Compare the buyout with other assets, keep a record of mortgage payments and improvements, and confirm in writing who pays the mortgage, taxes and insurance until the transfer. Ask an attorney how a lien or a deadline to refinance can secure the equalizing payment.
Questions to settle before a buyout
Get a current valuation and the mortgage payoff, document the value at the marriage if the home was premarital, and decide how the buyout will be paid and secured. Ask an attorney how to write the buyout into the decree.
Frequently asked questions
Who gets the house in a Colorado divorce?
The court divides marital property in proportions it deems just and considers the desirability of awarding the family home or the right to live there to the spouse with whom the children live most of the time. A home owned before the marriage is separate except for its increase in value.
How is a house buyout calculated in Colorado?
Equity is the home's value minus the mortgage, adjusted for any separate share. The spouse who keeps the home pays the other spouse that spouse's share of the marital equity, as agreed or ordered.
Is a premarital home divided in Colorado?
The home stays separate, but the increase in its value since the marriage is treated as marital property.
Can the Colorado court let one spouse stay in the family home?
Yes. The court may consider awarding the family home or a right to live there for reasonable periods to the spouse with whom the children live most of the time.
When is the Colorado home valued?
As of the date of the decree or of the hearing on disposition of property, if that hearing comes first.
Official sources
- C.R.S. 14-10-113: disposition of property
- C.R.S. 14-10-114: spousal maintenance; advisory guidelines
A local family law attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Colorado statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Colorado attorney.