Whether you and your spouse have a beach house to escape to in the winter or a mountain cabin at a ski resort, your vacation home may be one of your more valuable assets. In a divorce, will you end up with the relaxing retreat or will your spouse? What will you have to give up to keep your getaway?
Colorado is an equitable division state
Colorado law does not necessarily divide property equally in a divorce. Instead, the court will attempt to find a fair solution for dividing your assets. Your income, your separate property, your contributions to the marriage and a variety of other details will factor into the court’s decision.
During your divorce, separate property—property owned solely by you or your spouse—will be kept by its owner. Marital property—the property that was acquired during your marriage or purchased using your joint money—will be divided, and that can include your vacation home.
If you purchased or built your vacation home during your marriage, the court may consider it marital property. As a result, it will be divided along with the rest of your assets unless you have a prenuptial or postnuptial agreement that defines it as separate property. If you or your spouse owned the property before your marriage, it could be considered separate property.
Who gets the vacation home?
The fate of your vacation home will depend on the particulars of your assets and your divorce. The court could grant you or your spouse the vacation home, although you may need to sacrifice another high-value asset to keep it. Alternatively, you could sell this second house and split the proceeds.
An attorney can help you create a legal strategy that protects the things that you value most. If that includes your vacation home, they can help you negotiate to keep the getaway and preserve your finances along the way.