There are two forms of property in the United States: marital property and community property. Each state decides its designation, and Colorado is a marital property state. This means that in the event the marriage is separated or annulled, all of the assets and debts will be equally divided. Hiring a Divorce Real Estate Specialist is the best way to get through this difficult part of your life.
What is Marital Property?
Any property acquired during the marriage is considered to be marital property. This might include:
- Real estate equity
- Bank accounts
- Mutual funds
- Military retirement
- Any personal property
- Business interests
- Stock options
- Frequent flyer miles
After terminating a marriage, all of this property will need to be divided based on the value of it, at the time of dissolution, not separation. When both parties do not agree to the value of the marital asset, it must then be appraised. This is done often in real estate during divorce proceedings.
Separate property is a complicated concept. Anything owned before the marriage is considered separate property, but only as long as there is proof. This means it must be separately titled.
The separate property might include:
- Property brought into the marriage
- Property one spouse receives as a gift or inheritance while married
Example of Separate Property in Real Estate:
Consider if someone owns a house worth $300,000, with a mortgage of $150,000. This person enters into marriage, and the separate property interest will be considered to be the net equity ($150,000).
If, when the divorce occurs, the house has appreciated to $500,000, with a decrease to the mortgage to $100,000. The net equity is now $400,000. The marital share would be the increase in net equity. This would be $400,000 minus $150,000, equalling $250,000.
This means that the spouse will be entitled to half of the $250,000 marital interest, or $125,000. The spouse who originally owned the house will receive the remaining $275,000 in equity.
Are Debts a Marital Asset?
In Littleton, marital debts are any debts that a spouse incurs during the marriage. Regardless of who’s the name the asset is in, this will be divided. This might include a mortgage payment on a house or even student loans. Debts are also allocated equitably in Littleton. This can result in a situation where a higher income earner is required to pay more than the other party.
Do I Need a Realtor?
It is important to work with a divorce real estate specialist if you own property in Littleton and are going through a divorce. Although the best option is to work with your soon-to-be-ex-spouse nicely, this is not always possible.
Your real estate agents can work together to come to a conclusion that makes everyone happy. It will also allow you to stand back, and stress less. Contact us today to learn about how we can help you at this difficult time.