FORT COLLINS
PROPERTY DIVISION
LAWYERS

How fort collins homes are divided

There are a few ways to go through property division for your Fort Collins home. In some cases, the property is put up for sale, and each spouse gets an appropriate part of the profit when it sells. In other cases, one spouse would like to keep the home as part of their asset settlement. This is allowable as long as the other spouse and their attorney agree to the arrangement. In this case, the house may be appraised. Again, one spouse will keep the home, while the other one will be entitled to assets equaling the home’s value.

It is important to note that the latter option is not always available. For example, if the home represents the bulk of the couple’s assets, there may not be a way to give other equal assets to the other spouse. In these cases, the couple’s Fort Collins attorneys will negotiate.

Asset Equity vs. equality

When a home is sold during a Fort Collins divorce, many people assume that the profits will be split equally, and each spouse will take half. Though this certainly does happen, many judges will consider contributions to the property, allowing one spouse or the other to keep slightly more. For example, if one spouse spent a significant percentage of their income renovating the home, a judge may take that into account and give that spouse slightly more profit.

This applies to other assets as well. For example, if one spouse contributed a more than equal share to shared purchases, a judge may take this into account and allot more assets to that spouse.

The unpaid family role

If you were not the primary breadwinner in your marriage, the above information likely seems bleak. However, there is no need to worry. Courts take into account lots of unpaid roles in family life and ensure that the spouses who perform those roles are compensated.

For example, if you were a stay-at-home parent while your spouse worked, the courts will assign value to your position in the home. Child rearing, cooking, cleaning, etc., are all significant undertakings. Just because you did not bring in money from outside the home does not mean that your spouse will get everything. You may be entitled to spousal support as well as your fair share of assets.

Marital property and separate property

Something that often comes up during property division is the concept of marital property vs. separate property. Marital property is relatively easy to understand. It is simply assets that you and your spouse acquired during your marriage, such as real estate, bonds, stocks, etc.

Separate property is a bit more nuanced. There are a few ways to define separate property, and they are:

• Property acquired before the marriage
• Inheritances
• Gifts

Be aware that separate property can become marital property. For example, if one spouse purchased a home before getting married and then put their spouse’s name on the deed after marriage, that home would be marital property.

Any interest or increased value accrued on separate property during the span of the marriage is also considered marital property. For example, if one spouse buys a stock for $5 per share before marriage, but the stock increases from $5 to $50 per share during the marriage, that $45 increase is considered marital property.

It is also worth noting that separate property can still be divided during a divorce, especially if one spouse has significantly more separate property than the other. The only way to fully protect your separate assets in a divorce is to sign a prenuptial agreement before marriage. If you fail to do so, your separate property may be divided during divorce negotiations.