Splitting up is never easy, but it can be especially complicated when there’s a house involved. If you’re thinking about ending your marriage or partnership and you own a home together, take some time to figure out what’s fair and get everything in writing before making any decisions.
Sometimes splitting ownership of a house can be a complicated and stressful process, especially if you and your former spouse or partner do not agree on how to divide the property. But with a bit of planning, communication, and legal guidance, you can split ownership of your home fairly and amicably.
Laws Regarding Joint Ownership Of Property
In order to understand how to split ownership of a property, you must first understand the laws regarding joint ownership of property. In general, there are two types of joint ownership: Joint tenancy is when two or more people own a piece of property together and have an equal interest in it.
Tenancy in common is when two or more people own a piece of property together but each has their own distinct share. This means that if one owner dies, their share of the property will be passed on to their heirs according to their will or state intestacy laws.
Types Of Property Ownership
Determine what type of ownership each person has. Depending on which type of ownership you have, there may be different rules and procedures that must be followed when dividing up the home. There are many different types of property ownership including:
- tenancy in common
- joint tenancy with the right of survivorship
- tenancy by the entirety
- community property with the right of survivorship
- community property without the right of survivorship
Once you have determined the type of property ownership you have, it’s important to discuss your plans for splitting the home with your partner or spouse. You will likely need to hire a real estate attorney who can help guide you through the process and ensure that everything is handled properly according to state law. The lawyer can also help you decide how much value each person’s share should have in order to determine how much money each person will receive from the sale or refinance of the property.
How To Split Equity In A House
Determining how much equity each person has in the property is needed in dividing property ownership. This is typically done by calculating how much each person contributed financially towards purchasing or maintaining the home over the course of your relationship. For example, if one partner paid for half of all repairs on the home while living there together but was never actually listed as an owner on any official documents, they may not get any portion of the equity in the home since they did not contribute financially at all towards its original purchase price. However, if you both contributed equally towards purchasing or improving the home over time then both parties may be entitled to equal shares in its value upon selling or refinancing it.
After determining who owns what percentage in the house and how much equity each person has in it based on financial contributions made during your relationship together, you will need to draw up an agreement outlining those terms that both parties sign and file with official records such as real estate deeds or titles depending on your type of shared home ownership.
Joint Ownership Property Splitting Up
In the case of joint ownership property, there are a few different ways to split it up.
- Sell the property and divide the proceeds evenly between both parties.
- One party buys out the other’s share of the property by refinancing the mortgage or taking out a new loan.
- If you are unable to come to an agreement on how to split up the property yourselves, you may have to go through mediation or arbitration in order to reach a decision that is agreeable to both sides.
Equitable Distribution Colorado
In the state of Colorado, the property is generally divided equally between divorcing spouses unless there is a good reason to divide it differently. This is known as the principle of equitable distribution and it applies to both marital and non-marital property. Non-marital property is any property that was owned by either spouse prior to the marriage or that was inherited or gifted to one spouse during the marriage. Marital property is any property that was acquired during the marriage by either spouse.
If you are going through a divorce in Colorado, it’s important to speak with an experienced divorce attorney who can help you understand how the state’s equitable distribution laws may affect your case. The lawyer can also help you gather and value all of the assets and debts that need to be divided in the divorce so that you can reach an agreement with your spouse on how to split them up.
Joint Property Ownership Disputes
If you are unable to come to an agreement with your co-owner on how to divide up the property, you may have to go through mediation or arbitration in order to reach a decision that is agreeable to both sides.
But if disputes still cannot be resolved, you may have to go to court and let a judge decide how to split the property. The court will look at a variety of factors in making its decision, including each person’s financial contribution to the property, whether one person is living on the property and the other is not, and the needs of each person.
It’s important to note that if you go to court, the judge may not split the property exactly evenly between the two parties. The judge may give one person a larger share of the property if he or she contributed more financially towards its purchase or upkeep over time. Or, the judge may give one person a larger share of the property if that person needs it more than the other person does.
How Do You Sell A House With Multiple Owners?
If you are looking to sell your house and there are multiple owners, you will need to come to an agreement on how the proceeds from the sale will be divided between everyone involved. Once you have reached an agreement, you can then move forward with listing and selling the property.
If you need help selling your house quickly and for cash, Colorado Cash Buyers can help. We specialize in helping people sell their houses fast, no matter what is the condition of the property. Contact us today for more information or to get started on the sales process.