A number of factors could influence a person’s decision about keeping or selling a family home during a Colorado divorce. Someone might have a sentimental attachment to the home, or a parent might desire the family home to limit disruption in the lives of children. For a single person to retain sole ownership of a marital home, the home’s equity must be determined as well as the person’s ability to secure a mortgage under a single income.
The equity represents the ownership value that a couple has on a property after subtracting a mortgage or other lien from the appraised value of the home. Calculating equity matters because it influences the amount that a person needs to finance to buy out the departing spouse. A professional home appraiser, real estate broker, or real estate agent could estimate a home’s current value for a fee.
The party wishing to keep the home must next arrange for a new mortgage to acquire sole ownership of the property. Like any home loan, the lender will investigate the person’s income and credit to determine if a loan can be approved. During the process of settling a divorce, a person might choose to cash out other assets to pay towards a home and reduce the amount that requires financing.
A financial adviser could aid a person who needs to explore the viability of keeping a home when an marriage ends. Legal advice will likely be necessary as well, and Greenwood Village, Colorado, divorce attorneys could inform a person about parental rights and the equitable distribution of marital assets and debts. An attorney might handle negotiations on this matter as part of an overall settlement.