In Colorado, all the property acquired during the marriage is considered “marital property.” This means that if you own a house with your spouse, the court may order the sale of the house as part of the divorce settlement and as a part of the property division.
If either spouse wants to keep the house, they must buy out the other spouse’s interest in the property. First, you should be aware that the court will likely give you and your spouse a certain amount of time to sell the property.
Second, you should also be aware that you may be responsible for paying taxes on any profit you make from the sale of the house. In Colorado, any profit from the sale of marital property is considered taxable income.
Table of Contents
• Court Ordered Sale Of House
• How To Divide Property In a Divorce
➥Some of The Factors The Court May Consider
• Proving Dissipation of Marital Assets Colorado
• Is Colorado a 50/50 Divorce State
• Property Rights in Divorce
• Ex Ignoring Court Order To Sell House
• Divorce Asset Checklist
• Tax on Property Settlement in Divorce
• Selling Property During Divorce Colorado
Court Ordered Sale Of House
If you are facing a divorce and have been ordered to sell your house as part of the settlement, it is important to understand your rights and options under Colorado law.
Court-ordered sale is when the court orders the property to be sold and the proceeds to be divided between the divorcing spouses. This is usually done when the couple cannot come to an agreement on who will keep the house.
The court will set a date for the sale of the property. Once the house is sold, the court will divide the proceeds from the sale between the divorcing spouses.
How To Divide Property In a Divorce
C.R.S. 14-10-113(1)(e) says that the court may order the sale of property, as necessary, to equalize the division of assets between divorcing spouses. This is a statute that covers court-ordered sales in divorce situations.
In a divorce, the court will divide the marital assets between the spouses. Marital assets are any property or debts that were acquired during the marriage.
The court will consider many factors when making a decision about whether or not to order the sale of the family home.
Some of The Factors The Court May Consider Include:
- The length of the marriage.
- The contributions of each spouse to the marriage.
- The needs of each spouse.
- The income and earning potential of each spouse.
- The age and health of each spouse.
- The custody arrangement for any minor children.
- The standard of living the family enjoyed during the marriage.
- The value of the property is to be divided.
The court may also consider the dissipation of assets when making a decision about how to divide the couple’s property.
Proving Dissipation of Marital Assets Colorado
Dissipation of marital assets is when one spouse uses the couple’s joint money or property for his or her own benefit and not for the benefit of the marriage. This can be a factor that courts consider when dividing property in a divorce.
Ways to prove dissipation of marital assets can include showing that one spouse spent large amounts of money on personal items, such as vacations, cars, or clothing, during the divorce process.
Is Colorado a 50/50 Divorce State?
Colorado is an equitable distribution state, which means that the court will divide property in a way it deems “fair”. The court will consider many factors when making a decision in dividing the property.
Bear in mind that debts are also subject to division in a divorce. The court will consider many factors when making a decision about how to divide the couple’s debts.
Property Rights in Divorce
Each spouse has a right to keep any property that is classified as his or her “separate property.” Separate property includes anything that was owned by one spouse before the marriage, gifts received by one spouse during the marriage, and inheritances.
If the property is classified as marital property, it will be subject to division in a divorce. Marital property includes all the property acquired during the marriage, regardless of whose name is on the title.
Even if only one spouse owns the house, it is still considered marital property and may be subject to division in a divorce.
Ex Ignoring Court Order To Sell House
If you have been ordered to sell your house as part of a divorce settlement, you should take the court’s order seriously. If you do not sell the property within the timeframe set by the court, the court may order it sold through a public auction.
Additionally, if you do not sell the property and your spouse buys out your interest, you may be responsible for paying taxes on any profit from the sale.
But, if you obstruct the sale of the property or try to interfere with your spouse’s interest in the property, you may be held in contempt of court.
Contempt of court is when someone willfully disobeys a court order. Penalties for contempt can include jail time and fines.
Divorce Asset Checklist
You and your spouse should make a list of all the property and assets you acquired during the marriage.
This can include:
- real estate
- savings accounts
- retirement accounts
- stocks and investments
- cars
- furniture
- other valuable items
Your attorney can help you determine which assets are classified as marital property and which are classified as separate property.
Tax on Property Settlement in Divorce
Colorado is a community property state, which means that all property and debts acquired during the marriage are considered to be owned jointly by both spouses. This includes taxes related to the marital home.
If the spouse decided to sell the property, they would need to take into consideration any capital gains taxes that may be owed on the sale.
But if the spouse decided to buy out the other spouse’s interest in the property, they would not be responsible for any capital gains taxes.
Selling Property During Divorce Colorado
If you have been ordered to sell your property as part of a divorce settlement. It is important to consult an experienced lawyer who is familiar with Colorado law and the court process. You should also be prepared to pay any costs associated with the sale.
We understand that going through a divorce is tough, our goal is to make the process of home selling as smooth as possible for you.
Colorado Cash Buyers will buy your house as-is. This means you don’t have to make any repairs or renovations. We will also pay all closing costs. Contact us today to learn more about how we can help you through this difficult time.