Some of the most valuable property that people own is real property. If you and/or your spouse own land in Colorado and you are contemplating divorce, how your land is treated can have a lasting impact on your future finances. If you own land in your name, you might assume it is yours alone. However, Colorado’s equitable distribution model allows family courts to divide any marital property between the spouses in any way they deem fair. For guidance tailored to your situation, reach out to our Boulder divorce attorneys to protect your property rights and secure your financial future.
Understanding Marital vs. Separate Property
During a divorce in Colorado, property must be classified as marital or separate property. Marital property is subject to division while separate property is not. Under Colorado Revised Statutes § 14-10-113, marital property includes any property acquired during the marriage, regardless of how the property is titled. Therefore, land purchased during the marriage is likely considered marital property under the law and subject to be divided unless it is considered separate property.
Separate property includes property that was acquired as a gift, inheritance, property owned before marriage, property purchased with separate property, or property purchased pursuant to a valid prenuptial or postnuptial agreement.
Even if the land is separate property, the increase in the land’s value may be considered marital property that is subject to division.
How Equitable Distribution Works in Colorado
Colorado uses an equitable distribution system when it divides a married couple’s property. Under this system, an equal distribution is not necessary. Instead, the court decides (when the parties aren’t able to reach an agreement) how to divide the property in a way that it considers fair. The court considers various factors, such as each spouse’s financial and non-financial contributions during the marriage, each spouse’s earning capacity, and the needs of their children.
For example, the court may consider the viability and desirability of leaving the house or land with the spouse who has primary custody of their children. This may be offset by providing other assets to the other spouse.
Impact of Prenuptial or Postnuptial Agreements
Legally valid agreements can dictate land ownership outcomes. However, these agreements may be challenged for their validity if they are unfair in their form or how they were created, so it’s crucial to have these documents and your situation reviewed by a lawyer experienced in handling these complex matters.
Transferring Ownership After a Boulder Divorce
Often, spouses who are divorcing complete a quitclaim deed that transfers their interest in the property to the other spouse. This transaction changes legal ownership of the property. However, it’s important to note that changing the deed does not relieve a person of their responsibilities for paying an ongoing mortgage. For this reason, the spouse who removes their name from the property might insist that the other spouse refinance the property in their sole name.
When Boulder Real Estate Is a Complex Asset
Jointly owned investment properties, vacation homes, or farmland may pose unique legal considerations. They may require professional appraisals or expert testimony. A complex property division lawyer can help with this process.
Contact Stahly Miner LLC Today for Help with Your Complex Property Division Divorce
The experienced legal team at Stahly Miner LLC can review your situation and explain your legal rights and options. Early legal planning can protect your interests. Contact us at (303) 797-2900 for a confidential case review.