Many people purchase vacation homes so they can enjoy an occasional getaway or to supplement their income with rental revenue. These vacation homes may represent many beautiful memories while also representing a valuable asset. This could make the vacation home an asset both spouses want. But who gets the vacation home in a divorce?
The divorce lawyers from Stahly Miner LLC have extensive experience in complex property division cases. We can explain how Colorado law applies to your particular situation and strive to negotiate a fair divorce settlement that focuses on your best interests in the long run.
Is the Vacation Home Marital or Separate Property?
When Colorado family courts hear a divorce case, they have the power to divide the couple’s property. According to Colorado Revised Statutes § 14-10-113, the court identifies which property is marital and which is separate and then divides only the marital property based on equitable principles. Whether the vacation home is marital or separate property is the primary determinant of what will happen to the rental home.
Marital Property
Colorado Marital property is generally any property that was acquired during the marriage or funded by marital income, regardless of whose name is on the title. So, if you purchased the vacation home during your marriage, it is likely marital property that is subject to division.
Separate Property
Separate property is generally any of the following:
- Property you acquired before the marriage
- Property you acquired with separate property
- Property you received as a gift or inheritance
- Property acquired pursuant to a valid prenuptial or postnuptial agreement
Separate property generally remains separate unless marital funds were used to maintain, improve, or pay down a mortgage, which could create a marital interest that the spouse who owns the property would have to pay the other spouse for in the divorce.
How Colorado Courts Divide a Vacation Home
Equitable Distribution Principles
Colorado law favors fair division, which is not necessarily 50/50.
The vacation home is one of many assets considered in the overall property division.
Some of the factors the court considers when dividing marital property are:
- The contributions of each spouse to the marriage, including contributions as a homemaker
- The value of each spouse’s separate property
- The economic circumstances of each spouse at the time of divorce
- Any increases or decreases in the value of the spouses’ separate property
Negotiated Settlement in Colorado
Couples can agree that one spouse keeps the home (with a buyout) or that it will be sold and the proceeds split.
Agreements can provide creative solutions based on family needs. For example, the spouses may decide to keep the home together and rotate use if children are involved.
If no agreement is reached, the court will decide based on a range of factors.
Common Outcomes for Vacation Homes in Colorado Divorces Negotiations
Some of the most common outcomes for the disposition of vacation homes in Colorado divorce cases include:
- One Spouse Keeps the Home
In this case, the other spouse receives assets of equal value or a cash payout for their share of the house.
- Property Is Sold
The net proceeds are divided according to what’s fair or as negotiated.
- Joint Ownership Continues
In rare cases, parties may agree to retain co-ownership with a shared schedule. This option is more common if children use the home.
Contact Stahly Miner LLC For Your Complex Property Division Needs Today
At Stahly Miner LLC, we focus on guiding people through complex property division matters. We can discuss your unique situation during a confidential consultation. Contact us today to get started at (855) 976-4020.